City acquires 34 acres of prime Kapolei real estate for parkway construction

HONOLULU—The City and County of Honolulu accepted a deed this week from Kapolei Property Development, LLC for 34 acres of prime Kapolei real estate in exchange for completing the construction of Kapolei Parkway.

Kapolei Property Development had been required to complete Kapolei Parkway as a condition of an earlier subdivision approval. The company informed the City that, given the poor economy, the work would take longer than anticipated. This was a concern, the City said, since Kapolei Parkway is a major thoroughfare and is integral to Kapolei’s growth and success. Negotiations produced an agreement signed March 24, providing a net benefit to the City of approximately $24.6 million.

The 34 acres gained by the City include eight lots fronting Kapolei Parkway. The package includes 21 acres that had been designated as “restricted lands,” with the requirement that they be used for government purposes. The restriction has been removed by their conveyance to the City, adding value to the properties. The City will gain 13 additional acres without use restrictions. The City expects the Kapolei Parkway work to be completed by early 2014.

The City Council unanimously approved a resolution on March 17 that authorized the agreement.