The fate of a historic chapel built by a Civil War Union officer and connected to Moiliili’s immigrant roots is up in the air as it celebrates its centennial.

Pastor Gregory Johnson of St. Mary’s of Moiliili Episcopal church fears a “worst-case scenario”: the demolition of what had been the congregation’s original wooden sanctuary to make way for a development project, which the Episcopal Diocese of Honolulu is now considering to ensure future income.

The centennial of what is nicknamed “Soldier Chapel” will be celebrated at 5 p.m. today. In attendance will be Harrison Spiegelberg, great-grandson of Brig. Gen. Edward Davis, who paid $27,000 to construct the building at 2062 S. King St.

Seating 80 people, the chapel is still utilized and was the church’s main sanctuary until a new one was built in 1988.

St. Mary’s was founded in 1911 with a mission house, primarily serving the poor, and opened a school and later an orphanage. Moiliili is where Chinese and Japanese immigrants predominantly settled, including the late U.S. Sen. Daniel Inouye, who attended kindergarten at the school from 1929-30. Inouye was a member of the legendary World War II 442nd Regimental Combat Team, a Medal of Honor recipient and the second-­longest-serving U.S. senator. Across the street is a 442nd veterans clubhouse and memorial exhibit, which will be converted into a museum in the next few years, so the proximity of the chapel is a plus, said Johnson, a former Air Force chaplain.

“My goal is not just to preserve Soldier Chapel, my goal is to preserve (it) on this site where it stood since 1917 because it’s an important part of the history of Moiliili. … For it to be still standing and not falling apart like most wood-framed buildings have” because of termite damage, “to me it’s God’s way of saying, ‘Hey, this place is worth preserving,’” Johnson said.

Spiegelberg said his great-grandfather Davis was a second lieutenant with the 5th Kentucky Cavalry during the Civil War. Davis was handed his diploma from the U.S. Military Academy at West Point by Ulysses S. Grant, commander of the Union Army and later the 18th president of the United States. An ardent Episcopalian, he established a mission in the Philippines and served under friend Gen. John “Black Jack” Pershing. Davis was a commanding officer of the U.S. Army’s Camp McKinley in Kapiolani Park from 1901 to 1903, and spent his retirement in Hawaii.

In remarks prepared for today’s service, Spiegelberg said, “I am humbled to know that my great-grandfather was so instrumental in bringing these blessings (serving the poor) to Moiliili and greater Honolulu.” He said he prayed that “this unique historic chapel remains as a place of worship here in this community.”

A photo of Davis is hung at the entrance of Soldier Chapel next to a portrait of Inouye, under a circular stained-glass window and triptych of the Madonna and Christ child that Davis shipped from Italy, Johnson said.

St. Mary’s small congregation of 85 consists mainly of seniors on limited incomes and those at or near the poverty line, and Johnson said he is not going to “ask them to cough up some money” for the renovations. The Army National Guard recently agreed to help fix the leaking roof, but more than $250,000 in other repairs are needed.

As a source of income to ensure the long-term viability of St. Mary’s, Johnson has been working on a proposal to sell the almost 1-acre site, with the stipulation that 50 percent of the land be used to construct a residential building, of which 30 percent of the units would be designated for affordable housing. The church also wanted to expand the size of its preschool and outreach ministries, but Johnson received notice that the Episcopal Diocese of Hawaii opposed the proposal made in August.

A June 10 letter from the chancellor’s office nixed the idea of a sale, saying, “Only 70 percent or more of the property may be leased because that would ensure the best return.” The affordable-housing requirement was discarded because it would reduce the amount of lease rent that could be collected to accomplish the church’s mission, said Mel Kaneshige, a liaison between the diocese and St. Mary’s. A retired development executive for local hotel firm Outrigger Enterprises, Kaneshige said the diocese had to give careful consideration to whether to sell the land or lease it and what percentage could be developed, “because there are other churches interested in development, and this project will set a template for the rest of them,” he added.

Under the diocese’s terms, “It is possible to keep Soldier Chapel within the 30 percent of the property that (might be) retained by St. Mary’s (not leased),” he said. “It is also possible that Soldier Chapel could be relocated to another area within the present property that is leased by the developer, but that the developer lets St. Mary’s use. There are a lot of different scenarios that we just have to wait and see what is proposed.”