An experienced builder who can convert Iwilei Center’s aging warehouse space into a new mixed-use, transit-oriented development on the edge of downtown Honolulu is now being sought, city officials say.
The city Department of Land Management, in partnership with the Mayor’s Office of Housing, announced Tuesday that it’s issued a request for qualifications, or RFQ, for the redevelopment project that aims to site about 500 to 700 housing units near the over-$10 billion Skyline rail project currently under construction along Dillingham Boulevard.
A future developer will help create a TOD project that integrates affordable housing with commercial, retail, institutional, educational, recreational and
governmental services, the city said.
“This transformative
project is a pivotal step in re-imagining Iwilei as a thoughtfully designed, transit-oriented neighborhood that puts affordability, sustainability, and quality of life at the forefront,” Mayor Rick Blangiardi said in a
statement.
To revamp the site, the city seeks a qualified development partner to redevelop the area through a public-private partnership.
The selected developer will oversee master planning, environmental clearance, architectural design, entitlement, financing, construction, lease-up and operations, the city said.
In return the developer will receive a development contract and a 75-year ground lease, the city
asserts.
“Ideally, the city is seeking a developer with a proven track record in delivering high-density, mixed-use, transit-oriented developments, as well as the financial capability, expertise and capacity to execute a complex project of this scale,” Kevin Auger, executive
director of the Office of Housing, told the Honolulu Star-Advertiser.
He added that the city “has set an ambitious goal to break ground by 2028.”
“The first step in the
process is the developer selection process, contract negotiations and City Council approval,” he said. “Once the developer partner is
on board, the next steps
include community
engagement and planning, followed by environmental clearances, securing necessary entitlements, design development, construction documentation and permitting and finalizing project
financing and construction contracts.”
“Given the scale of this mixed-use development, full build-out is expected to take several years beyond groundbreaking,” he said.
The total cost of the Iwilei Center redevelopment is not yet determined, he added.
“However, the public-private partnership model allows the city to leverage both public and private financing sources to maximize investment in the project,” Auger said.
He noted the city has been awarded $700,000 through the state’s Office of Planning and Sustainable Development.
“Additionally, the city was awarded a $2 million Federal Transit Administration
TOD pilot planning grant to support enhanced transit accessibility, climate resiliency improvements, and sustainable urban development in the area,” he said.
The city also could contribute capital improvement program funds, and the
selected developer will likely seek a combination
of financing opportunities, according to Auger. Those include low-income housing tax credits, private activity bonds, the city’s affordable housing fund, state affordable housing funds, rental housing revolving funds and private investment.
The final deadline for
developers to submit an RFQ with the city is April 30, the city said.
In January 2024 the city closed a $51.5 million deal to purchase the Iwilei Center.
This transaction was meant to convert the existing center — long home to warehouses, loading docks, offices for lease as well as more than two dozen commercial tenants — to a new, city-owned affordable housing development, the city said.
Acquired by the city’s
Department of Land Management from Iwilei Center LLC, an affiliate of Blacksand Capital, the purchase of
the 3.8-acre property included addresses at 850 and 866 Iwilei Road and 505 Kaaahi St., respectively.
It notes that the property will be near Skyline’s future Kuwili Station, part of the third segment of the city’s rail line, which is expected to be open to the public by 2031.
But while the TOD community is in planning and design, Iwilei Center will be used for transitional housing and treatment for homeless people, the city said.
On Feb. 27 the city and state — led by Blangiardi and Gov. Josh Green — formally unveiled a joint project called Kumu Ola Hou Iwilei Transitional Shelter.
The facility, which consists of 13 housing units with a capacity of 24 residents, also features a
common room, multiple bathrooms and a laundry room, along with lanai and shared communal spaces between each housing unit, the city said.
By this summer, the city says, three more shelter units within the Iwilei Center complex will appear, increasing the number of beds available to service homeless people — including at Kumu Ola Hou — to approximately 100.
