City says Kapolei land transfer unaffected by Hannemann resignation

KAPOLEI—On July 7, Kapolei Property Development LLC (KPD) handed over 13.2 acres of Oahu’s “Second City” to Mayor Mufi Hannemann on behalf of the City and County of Honolulu. The deal also removed use-restrictions on adjacent parcels of land already pledged to the City. Two weeks following the land transfer, Hannemann announced his resignation from office to run for Hawaii governor. 

In exchange for the land, the City agreed to complete KPD’s construction of Kapolei Parkway, the planned thoroughfare that will connect Fort Barrette Road to Kamokila Boulevard by Costco.

The mayor’s office was quick to announce that the plan for the land would not be turned into an endless project, with Hannemann’s departure.

“We want to reassure everyone that nothing has changed with the change in leadership,” said Bill Brennan, spokesperson for the mayor’s office. “It was strictly a city agreement and was nothing personal that Mufi [Hannemann] had with Kapolei Property Development.”

The exchange will permit the City to push toward completion of Kapolei Parkway and also attain land that will likely be used to support future development needs and planned extensions of the rail transit system.

Initially, KPD was required to complete the Kapolei Parkway roads as a condition of an earlier approval. KPD informed Hannemann that, because of the poor economy and insufficient funding, the work would take longer than anticipated.

The delay was a concern for the City because Kapolei Parkway is a major access road and important to Kapolei’s growth.

Careful negotiations produced an agreement signed March 24 that provided a net benefit to the City of approximately $24.6 million.

The 34 acres given to the City includes eight lots bordering Kapolei Parkway. The package includes 21 acres that were once designated as “restricted lands,” which requires that they be used only for government purposes. The restriction was then lifted by KPD’s exchange with the City.

The City will also gain 13 additional acres without no restrictions. 

“We’re very appreciative of our partnership with Kapolei Property Development,” said acting Mayor Kirk Caldwell in a statement. “The City’s acquisition of prime real estate that will support the development of our rail transit system and expedite completion of the Kapolei Parkway will benefit us all.”

Kapolei-based Delta Construction was signed on to the project to build the portion of Kapolei Parkway from Manawai Street to Kamaaha Avenue. Construction is expected to start near the end of August, with completion expected in January of next year.

During this construction period, Kapolei Property Development will complete a portion of Kapolei Parkway from Kunehi Street to Manawai Street.

The City is now looking for funding to complete Kapolei Parkway, connecting it from Kamaaha Avenue to Kamokila Boulevard by Costco.