The proposed Aloha Stadium entertainment district is in serious trouble. Rising costs, funding uncertainties and shifting priorities threaten to derail the project. While this may seem like a setback, it could be a blessing in disguise.
Four years ago, the state Legislature allocated $350 million to build a new Aloha Stadium, hoping it would serve as the home for University of Hawaii (UH) football and attract major events like the Pro Bowl. The stadium is an element of a broader entertainment district that would also include retail and commercial spaces.
However, the estimated cost of a new stadium has now ballooned to $650 million, according to Stanford Carr, a spokesperson for Aloha Halawa District Partners (AHDP), the entertainment district project’s developer. Carr presented this figure to the Senate Ways and Means Committee, highlighting a significant funding shortfall.
Under the current plan, the developer is responsible for financing the entire entertainment district, including the stadium, using the initial $350 million, along with future project revenues. But with cost of the stadium far exceeding the available funds, AHDP proposed two controversial funding ideas in bills introduced in the Legislature:
>> Legalizing a casino within the project to generate additional revenue.
>> Redirecting future property tax increases from the development toward stadium funding, a financing methodology known as tax increment financing.
Neither idea gained legislative support, leaving the stadium without a viable funding plan. Adding to the uncertainty, the $350 million appropriation expires on June 30, 2025, unless a contract is signed. Securing a new appropriation could take years, especially with cuts to the state budget that are expected, due to slashes in federal funding by the current administration.
Meanwhile, an alternative plan is gaining traction. House Bill 1494 proposes to upgrade UH’s Clarence T.C. Ching Athletic Complex, the temporary stadium on the Manoa campus, and making it permanent.
This solution would eliminate the main reason for a new Aloha Stadium at Halawa while allowing UH football to continue at a more realistic, financially sustainable level.
The stadium debate must be viewed in the context of major shifts in college football economics.
Power conferences (e.g., SEC, Big Ten) dominate the sport, securing multibillion-dollar television contracts. Schools in these conferences receive tens of millions in annual revenue, ensuring financial stability.
Programs like UH, in smaller conferences with limited TV exposure, struggle to generate revenue to remain competitive.
In light of these financial realities, Hawaii must adjust its expectations. An upgraded campus stadium is a more practical solution.
Instead of pouring money into an uncertain Aloha Stadium project, the state should repurpose the Halawa site for affordable housing. Tens of thousands of local families are struggling to pay for housing costs, so this shift would provide lasting community benefits.
Lots of affordable housing could be built with minimal upfront costs since the state already owns the land. This new project could include:
>> Housing at higher income levels mixed with the affordable housing.
>> Grocery stores, restaurants and retail.
>> Parks, health clinics and schools.
>> A walkable, environmentally sustainable design.
Hawaii faces a historic opportunity to address both its housing crisis and fiscal challenges. Instead of clinging to an outdated vision, the state should invest in a project that benefits many more people — the creation of a thriving, inclusive community.
The debate over Aloha Stadium isn’t just about sports. It’s about priorities. And right now, Hawaii’s highest priority should be its people.
John Kawamoto is a former legislative analyst and an advocate for affordable housing.
