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OHA land staff brief committee on Lot L (Kaka'ako Makai); consultants advise long‑term leases as prudent
Summary
OHA land division presented analysis of Lot L (Kaka'ako Makai, Lot L L200 Keawe Street) and advised that redevelopment is unlikely in the near term given zoning, access, and sea‑level rise constraints; consultants recommended long‑term leases to generate revenue rather than short‑term holds or immediate redevelopment.
Laurie Walker, OHA land director, and a presenter identified as Paul briefed the Committee on Investments and Land Management about leasing efforts for Kaka'ako Makai Lot L (Lot L, L200 Keawe Street, Honolulu). Walker said Lot L is isolated from OHA’s larger holdings near Kewalo Basin and faces development constraints including limited access, easements, proximity to harbor operations and the foreign trade zone, and zoning restrictions.
The presenters said Lot L is zoned MUZ (mixed‑use zone) with a restricted set of allowable uses; revenue‑generating options under current zoning are primarily retail or office, with some educational or cultural uses allowed but industrial uses disallowed. The consultants’ analysis tested alternative scenarios and concluded that, given the site’s limited density (a 0.6 floor area ratio, which was estimated to correspond to roughly 137,000 buildable square feet under the current zoning if redeveloped) and sea‑level rise considerations (which would require elevating the pad and complying with setback rules), near‑term redevelopment is unlikely to deliver substantial value compared with supporting current uses.
The pro forma analyses presented compared the value of leasing the improved site versus hypothetical retail redevelopment. The analysis showed that, under current market inputs, the value associated with leasing the improved site substantially exceeded a near‑term redevelopment yield at this location. The consultants therefore recommended that the land division pursue long‑term leases rather than short‑term holdover arrangements if the objective is to maximize income while deferring redevelopment to a later time when conditions (zoning, access, sea‑level risk, and market demand) are more favorable.
Trustees discussed who prospective tenants or other interested parties should contact. Trustee Wahe'e asked whether OHA has a single point of contact so prospective lessees would not bypass agency channels; Walker replied that inquiries can be directed to her. Walker also said that redevelopment efforts should prioritize lands closer to Kewalo Basin and that Lot L should not be a near‑term redevelopment focus given current constraints.
The committee received the briefing as informational and took no formal action on leasing at the meeting.
