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Build It and They Will Come, but who is THEY? Controversy in Kaka'ako

By
Real Estate Agent with HI Pro Realty LLC RB-21531 RS-76763

Build It and They Will Come...but who is THEY? Controversy in Kaka'ako

- Ward Village -

and the Transformation of Kaka'ako, Honolulu

The Howard Hughes Corporation in conjunction with Victoria Ward Ltd. is one of many developers with their hand in reshaping a huge swath of Honolulu into what some have concluded to be a luxurious playground for international investors and the very wealthy.  I am a big fan of contemporary architecture and there are some amazing projects in the works here in Honolulu but I am strongly opposed to ANY large developments anywhere in Hawaii EXCEPT in Metro Honolulu. However, the shear size of this project with a heavy thumb on the luxury side of the scale means big profits for some and big housing problems for others. We can't blame the tiger for having stripes, nor the developers for wanting to develop in a way that maximizes their return on investment. But what is really going on here?

The oversight of the Master Plan for Kaka'ako falls to the responsibility of the City and State Governments and the Hawaii Community Development Authority. There is much controversy as to the effectiveness of  the HCDA and the Government to ethically manage this responsibility. As there has been a lot of wining and dining, private plane excursions, luxury lifestyle carrots, and campaign contributions being distributed in a way that would make the Borgia Popes blush. Raising concerns that politicians desperate for re-election "sold out" the locals. No surprise here that government officials seem to be dallying in doing something about it. With elections around the corner, it is a concern for many voters.

Kaka'ako Map

The long term plans include dozens of Residential and Commercial Developments with a centralized public park connecting the core of Kaka'ako with Kewalo Basin. Flanked with restaurants, retail shops, and commercial spaces the "Kaka'ako Plaza" will be akin to Central Park and will no doubt be a stunning environment. It's design is basically an outdoor mall focusing on commercial instead of outdoor activities. The purpose of this design is to allow for more luxury condominiums with ocean views to be developed, while posed as a public works project. Although several affordable rental and fee housing proposals have been promised, Only one affordable rental project has been completed amid the dozen or so luxury projects currently under construction in Kaka'ako. 

The one time warehouse and light industrial neighborhood renowned for it's graffiti art, is the home of car dealerships, repair shops, mom and pops, design collectives, and artists. However, there is already a cry from the community that the working class nature of the area will evaporate as commercial and residential rents are anticipated to rise dramatically in order to accommodate all the new development. Although, plans for affordable housing have been proposed, backlash from existing Luxury Condominium owners who don't want their multi-million dollar views affected by affordable housing have put the kabosh on several proposals, despite the fact the airspace's above the projects were never purchased by the HOA's in question. Instead the vociferous complaints cite HDCA rules benefiting luxury condo owners and their concerns. Forcing local developers to redesign their projects, slowing the process, much to the chagrin of the locals desperate for more reasonable home pricing, with little relief in sight over the next few years.

Hawaii has some of the lowest wages in the nation when adjusted for the cost of living and many people pay over 30% of their net income on housing and the rapidly expanding poor pay upwards of 50%,

according to Victor Geminiani - Pacific Business News Oct. 3rd Issue. With such a heavy tilt on luxury, median home prices will no doubt skyrocket, pushing many locals out of the market, allowing foreign investors to dictate housing prices. This leads many to the concern that the Kaka'ako Boom town could go bust taking the local population with it and send developers packing up their profits and heading to the next place of opportunity.

Development Plans for Kaka'akoThe dotted line represents the Kaka'ako neighborhood. The grey buildings are existing buildings, the blue are development projects underway and proposals, with the yellow indicating height variances.

Below is the Howard Hughes vision for Ward Village, the center piece of development in the heart of Kaka'ako, with Kewalo Harbor to the left.

Ward Village

"Village" seems more of an oxymoron than a description and is not the word I would use to describe the proposed future of this area, which looks more like Hong Kong than Honolulu. I think a more appropriate title would be Ward Central.

Posted by

Crypto Certified Agent - By Propy 

HI Pro Realty LLC

REALTORS®, PROPERTY MANAGERS® 

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Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Kimo - you certainly have a way with words.

This is an important issue facing cities and communities everywhere but especially in places where land is at a premium and prices are often unattainable.  There are no easy answers but the discussion should continue. I'm open to hearing what others have to say.  

Oct 20, 2014 09:09 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Oxymoron indeed.

Then again, who would be surprised?  Anytime one sees that politicians are involved in, well, anything, the subtle or not so subtle matter of influence peddling will inevitably raise it's ugly hungry head.

Oct 20, 2014 09:15 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Kimo, unfortunately the way we elect our local representatives and the money trail to keep them in office is a huge problem.  One that almost insures an advantage for developers.

Oct 20, 2014 09:19 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Kimo. I found this post more than interesting. It is called sprawl and I am sorry it is creeping its way into to your world.

Oct 20, 2014 09:58 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, kimo.... development is important to the economy but it needs to be controlled....without controls, you'll be transformed into something that might not be too pleasing to those who live there....

Oct 20, 2014 10:20 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

OMG - If I didn't know better, I'd swear this was a post about Flower Mound and most other major cities in the USA that are complaining about the same thing.

Kimo, you got the point across and you're a great spokesman for all!!!

Oct 21, 2014 02:20 AM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Michael,

it breaks my heart to see native Hawaiians being pushed out of their homeland because of the unmitigated drive for profit, driven by foreign investment.

 

Aloha Lenn,

there was hope that when the planning of this massive endeavor started that there would be a contentious effort to keep the poor, and middle class in mind, especially with our rapidly expanding homeless issue.

Enter the politicians and their pay to play campaign strategies, and exit all hope of balance.

 

Aloha Gabe,

I think Citizens United gave, We the People, a swift kick in our "hopes" for the future.

 

Aloha Sheila,

when I look at Google maps of beautiful verdant O'ahu, i see the ever increasing gray mat of urban expansion radiating outward covering that which makes Hawaii Paradise. "Pave paradise and put up a parking lot, oooo sha-la-la-la" -Joni Mitchell - she wrote the song about Waikiki.

 

Aloha Barbara,

I agree, we can't ignore development, we have to be smarter about it and have some forethought and ethical approaches to providing for all segments of society.

 

Aloha Patricia,

I fear we have retrograded to a darker time in our past, when the Rich were equivocated with righteousness. If only the majority of them actually behaved ethically but when the deck is stacked, it's time to change the nature of the game.

Oct 21, 2014 06:33 AM
Roy Kelley
Retired - Gaithersburg, MD

Wow! We do not see proposals of this magnitude in the Washington DC Metro area.

Oct 21, 2014 08:26 AM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Roy,

This project is several decades in the making and all the fears of the locals seem to be coming to fruition, despite the many attempts to reel in the LUX side of things. Money is King and Profit is Queen, our Hawaiian Monarchs are huli huli in their graves.

Oct 21, 2014 08:44 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Kimo what a detailed and passionate posting.  Living on the water here in the Boston Area the Developers are always trying to find a way to offer enough to the city to take their big slice.  Boston mayors and developers have always worked together through the history. I wish your community the same.

Oct 22, 2014 12:03 AM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Larry,

Boston is an amazing place to live and I ejoyed the time I spent there. Mayor Marino was a excellent Mayor and although every city, has its "Big Dig", when people work together to overcome the inevitable corruption you really can get big projects on the right track and function they way they were intended.

peace,

Oct 22, 2014 04:06 AM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Insane,

I stand 100% behind what I have written above if you want to identify yourself and stand behind your comments please do, otherwise, I will delete your comments as trolling misanthropy. You lack not only ethics but an inability to understand the content of what I have written. Your anonymity speak volumes.

a hui hou, 

 

Oct 25, 2014 06:00 AM