Commission approves Kalaeloa motorsports project; developer‑department project developer agreement cleared after executive session

The Hawaiian Homes Commission approved a negotiated project developer agreement (PDA) with Legacy Ventures LLC on Sept. 15 to develop a motorsports‑oriented industrial and mixed‑use complex on a 139.3‑acre DHHL parcel in Kalaeloa (TMK cited in the submittal). The project includes a road course, drag strip, skid pad for driver training, commercial and industrial space and a multi‑use entertainment venue, and will be governed by a PDA and an eventual DHHL general lease.

Russell Ka‘upu, DHHL property development agent, said the PDA was negotiated under section 220.5 of the Hawaiian Homes Commission Act and followed a public RFQ/RFP process. He described a long due‑diligence window (three years, extendable for good cause) and a 48‑month substantial‑completion construction target. The developer will perform environmental, traffic and geotechnical studies during due diligence, obtain permits, secure financing and, if due diligence is successful, enter a general lease with base rent set at fair market value plus a structured revenue share that increases over time.

Developer representatives presented conceptual designs and a community benefits framework that included a 3% allocation of DHHL rents to nearby beneficiary associations, preferential leasing for Native Hawaiian‑owned businesses, and a $100,000 annual scholarship fund for STEM education and motorsports‑related training. Legacy Ventures said it has technical partners with established experience operating motorsports facilities, and that it was engaging homestead and community leaders to refine the benefits package.

Public testimony at the meeting was mixed. Several beneficiaries and homestead leaders from Oahu and other islands said they were concerned the project did not follow a fully transparent beneficiary consultation process and that the developer had not engaged directly with some homestead leadership. Other speakers supported the project, saying it would create jobs and revenue for the trust. Community members also raised noise, traffic and displacement concerns, and some speakers urged the commission to confirm whether historic environmental issues were resolved.

The commission moved into executive session to review proprietary terms and negotiate final legal language for the PDA. DHHL staff explained that certain price and revenue‑sharing terms are commercially sensitive and that confidentiality was necessary to protect the department’s negotiating position and the developer’s proprietary information. After the closed session the commission returned to open session and voted to approve the PDA and to authorize the chair to finalize and execute the agreement subject to final technical and attorney general comments. The motion carried on voice vote; no roll‑call tally was recorded in the transcript.

Ending — next steps DHHL staff said the developer would proceed with permitting and due diligence under the rights in the PDA; if due diligence is successful, a general lease will follow and the project will proceed toward construction. The commission emphasized the need for continued consultation with beneficiary organizations and for clear community benefits and mitigation measures, particularly on traffic and environmental review compliance under Chapter 343.