A big piece of a more than 20-year-old community dream to reuse part of the former Aiea Sugar Mill site on Oahu has begun to take physical shape.

Local government officials, a nonprofit development partner and other supporters participated Tuesday in a blessing and ceremonial start of construction on a 140-unit rental housing project for seniors with low incomes at the 3.4-acre property owned by the city.

The $62 million, three-story project called Aloha Ia Halewiliko is being developed by EAH Housing with mostly government financing to serve seniors 62 years or older who earn no more than 60% of the median annual income in Honolulu, or in some cases no more than 30% or 50%.

Marian Gushiken, EAH’s vice president for real estate development in Hawaii, led off the ceremony at the site, where grading has already begun, calling it a “huge” milestone.

“We’re looking forward to building something beautiful for the community,” she said.

Members of the Aiea Community Association praised the long effort to realize the project, which was conceptually part of a master plan produced by the organization and city officials in 2002 based in part on community advocacy that began around 1997 when a private landowner’s plan fizzled.

“This is what happens when the stars align, when everyone’s heart touches each other, when government listens to the people and the abundance is shared with everyone,” said Kehaulani Lum, an Aiea Community Association board member.

Association President Claire Tamamoto was delighted by the start of construction given that the idea to create a community gathering space honoring Aiea’s sugar plantation history, along with kupuna housing, on part of the mill site was just a community dream with no money behind it nearly 30 years ago.

“I’m very proud and I’m very excited, and I have a whole hell of a lot of gratitude,” she said after Tuesday’s ceremony. “Aiea is not here because of Pearlridge shopping center.”

Aiea Sugar Mill, later known as C&H Sugar Mill, dates to 1898 and was once part of a 4,000-acre plantation begun as Honolulu Plantation Co.

Redevelopment plans for the mill site covering 19 acres date back to 1994 when the then-owner of local retailer Crazy Shirts, Rick Ralston, bought the property for $19 million with the intention of preserving the historic site and using it as his company’s headquarters and factory.

Ralston abandoned his initial plan, which had community support, in 1997 amid costs and economic recession pressures. He then tried to interest others in developing the property as an industrial subdivision, shopping center or something else after he demolished the mill in 1998.

Ultimately, Ralston lost the property to Bank of Hawaii in lieu of foreclosure, and the bank sold the land in pieces.

In 2002 the city bought 6.8 acres for $8.9 million to support Aiea community leaders who initially tried to prevent demolition of the mill and then fought to preserve the vacant site for community uses.

Under a 2002 master plan produced by the city and community leaders, uses envisioned for half the parcel included a community center documenting the area’s sugar plantation history, an outdoor performance area, an art center, meeting rooms, retail shops, a sports field, a dog park and gardens as part of a “town center.” The other half was largely slated for senior housing tied to a requirement for federal funds the city used for part of the purchase.

A new public library also was part of the plan, and that facility opened in 2014 on 2 acres the state bought in 2003.

In 2018 the city sought proposals from developers to build senior housing on the 3.4-acre site. EAH was selected in 2019 and obtained a 65-year land lease. In 2020 the City Council approved zoning and fee waivers for the project. EAH applied for most of its financing from the state in 2021, and building permit applications were submitted in 2022.

The Hawaii Housing Finance and Development Corp., a state agency that helps finance affordable housing, provided a roughly $24 million loan, state and federal tax credits worth about $38 million and $27 million in bonds. Some of this financing is used on an interim basis and is replaced by other parts.

The city also contributed $6 million to the project.

Mayor Rick Blangiardi said strong wills and stubbornness from a lot of people contributed to the project getting to the construction phase.

“I know it was years in the making,” he said during the ceremony.

Brooke Wilson, chief of staff to Gov. Josh Green, said the private-public partnership is resulting in a special project that had been discussed for decades.

“The redevelopment of this land beneath us at the Aiea Sugar Mill is symbolic because of its historic ties to Hawaii’s rich plantation roots,” she said at the ceremony.

Aloha Ia Halewiliko roughly translates in Hawaiian to “aloha to a house for cranking sugar cane” or “aloha to a sugar cane mill.” One of the entryways to the project is off Halewiliko Place.

Of the 140 apartments, 51 will be reserved for seniors earning up to 60% of the median, 75 will be for those earning up to 50% and 13 will be for those earning up to 30%.

Maximum incomes this year range from $27,510 for a single person or $31,440 for a couple at the 30% level, up to twice as much at the 60% level.

Monthly rent, depending on income level, is projected to range from $614 to $1,117 for 83 studios and from $647 to $1,261 for 56 one-bedroom units. There is also one manager’s unit.

Rent will be adjusted for changes in Honolulu’s median income when the project opens, which is expected to be late 2025.