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Thursday, March 24, 2011
Kapolei Shopping Center lease to generate $140M for DHHL
By News Release @ 11:42 AM :: 6906 Views :: Maui County, Education K-12, Energy, Environment

News Release from DHHL

KAPOLEI, HAWAII – The Hawaiian Homes Commission gave final approval to a general lease agreement allowing Hawaii DeBartolo LLC to develop 67 acres for the Ka Makana Ali‘i Center in East Kapolei. Under the agreed upon terms, Hawaii DeBartolo will pay more than $140 million in rent, over the course of 65 years, to DHHL for use of the land.

Ka Makana Ali‘i Center will be a 1.5 million-square-foot, mixed-use regional center located between Kapolei Parkway and Roosevelt Avenue, and will be surrounded by the new University of Hawaii – West Oahu campus; Kapolei Middle and High schools; and housing developments planned by the DHHL. The area will also be served by the city’s rail transit system.

“Moving this general lease forward will mean another source of funding to finance homesteading opportunities for our native Hawaiian beneficiaries well into the future, “ Hawaiian Homes Commission Chairman Albert “Alapaki” Nahale-a said. “We also see this project as an important and much-needed economic boost for the region and the state during a time when many continue to suffer economic hardships.

“With DHHL’s support for Ka Makana Ali‘i, we’re excited to see our vision for the people of West O‘ahu come to life,” said Edward Kobel, DeBartolo Development President and Chief Operating Officer. “Our goal for this project is to benefit not only the community and economy of West Oahu, but to also contribute to the efforts of the Department of Hawaiian Home Lands.”

Ka Makana Ali‘i Center will encompass a major department store; family entertainment complex; retail stores; restaurants; two hotels catering to kama‘aina; low-rise office buildings; a pedestrian plaza surrounded by outdoor cafes; underground parking; and a neighborhood commercial area with specialty market, drug stores, convenient shops and services designed to meet daily shopping needs of the community.

“As a long time resident of West O‘ahu, it’s exciting when a project comes to our community that  improves our quality of life. Ka Makana Ali‘i is such a project offering a complete shopping experience, job opportunities and a place for community to gather,” said Maeda Timson, Kapolei Neighborhood Board Chair.

“This is a golden opportunity for our beneficiaries,” said Paul Kaipo Pomaika‘i, Sr., Kânehili resident and President of the Kânehili Community Association Board. “We can find sustainable job options close to home, allowing room for economic growth in the area. The center will also provide a lease rent revenue base for Native Hawaiian Programs, and also fund vital infrastructure, so desperately needed, to perpetuate housing opportunities for Indigenous Hawaiians.”

Construction will be executed in phases over the next four years and will cost a projected total of more than $400 million. An estimated 21,000 construction jobs will be created, as well as over 7,000 new quality direct and indirect jobs in the businesses that move into the center.

Hawaii DeBartolo has selected Nordic PCL as the general contractor for the project.

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