Zoning committee backs CD1 for 1,032‑unit Kakaʻako housing project, approves fee‑exemption framework

The Zoning Committee on Thursday amended and reported out Resolution 25‑69 (CD1), authorizing exemptions and deferrals of certain city application and infrastructure fees for a proposed 1,032‑unit mixed affordable and market‑rate housing project in Kakaako underway under the Hawaii 201H process.

The committee’s CD1 (as amended) clarifies the project’s tax‑map reference and adds conditions requiring remediation and management of hazardous materials identified in a 2024 environmental site assessment; it also requires compliance with Federal Aviation Administration and State Department of Transportation rules because the site lies about 1.61 miles from Daniel K. Inouye International Airport and roughly 17,639 feet from the end of Runway 26L.

Why it matters: The project would deliver 1,032 units on about 4.18 acres in Kakaako and is structured to provide a large share of for‑sale affordable housing targeted to workforce‑gap households (teachers, firefighters, nurses, and similar occupations). CD1 authorizes fee relief that proponents say is necessary to make the project financially feasible while attaching site‑specific mitigation and reporting conditions.

Project overview presented to the committee: - Two towers rising to about 42 stories (400 feet) atop a nine‑floor parking podium; a residential liner will wrap the podium. - Total units: 1,032. The committee record describes the affordability split as 620 (60%) affordable units and 412 market units. Of the affordable units, 200 units are targeted at households earning up to 120% of area median income (AMI) and 420 units at up to 140% AMI; the remaining 412 units are market rate. - The podium and towers together include retail/commercial space and more than 40,000 square feet of open space and a central plaza; the project team described more than 68,000 square feet of neighborhood‑facing retail at the podium.

The developer team representatives included Harry Lake, CEO of Koa Partners (co‑applicant), and partners from Castle & Cooke and Kamehameha Schools; they told the committee they had no objection to the posted CD1. "We are in complete agreement. We reviewed and studied the posted CD1 and have no objections to the CD1," Harry Lake said.

City staff and agency comments: - DPP supported the posted CD1 and provided transportation and traffic mitigation recommendations that the CD1 incorporates as conditions. - The Board of Water Supply submitted written testimony and proposed amendments to the committee draft. - The Hawaii Housing Finance and Development Corporation (HHFDC) submitted written testimony and its executive director (Dean Manakami) told the committee HHFDC’s board approved supporting the exemptions on February 13. HHFDC noted the project’s affordability depth could be greater given the exemptions requested and suggested deeper income targeting would strengthen the application. Manakami said HHFDC’s most recent funding round received 35 applications (about 4,000 units requested) and the agency can fund roughly 1,000 units in a typical year; higher costs for construction, insurance and interest are tightening the agency’s financing capacity.

Environmental and safety conditions added to CD1: - The project site previously hosted three 1,000‑gallon underground gasoline storage tanks; the State Department of Health issued a no‑further‑action letter for the site in August 1994, but an April 2024 environmental site assessment identified recognized environmental conditions including petroleum, heavy metals and polychlorinated biphenyls (PCBs). CD1 includes a condition requiring the applicant to manage, remove and properly dispose of hazardous and regulated materials in soil, groundwater and structures. - CD1 requires demonstration of compliance with FAA and State DOT requirements because of proximity to Daniel K. Inouye International Airport.

Council action and next steps: The committee corrected the project tax‑map reference via a verbal amendment to the posted CD1 and, after discussion and agency presentations, amended the resolution to CD1 and reported it out for adoption with no objections. The measure will proceed to the full Council for final action.