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HCDA approves purchase of Ward Block P3 using floor-area bank and signs amended Ward master plan agreement
Summary
The authority approved a purchase and sale agreement with Victoria Ward Limited to acquire two parcels comprising Block P3 in Ward Village, accepting 63,000 square feet of HCDA floor-area bank in lieu of cash and authorizing execution of an amended and restated Ward Neighborhood Master Plan development agreement.
The Hawaiʻi Community Development Authority on Dec. 4 authorized its executive director to execute a purchase and sale agreement with Victoria Ward Limited (VWL) to acquire two parcels identified as Block P3 (610 Ward Avenue and 873 Kapiolani Boulevard, TMKs 12-1-049-063 and 12-1-049-080) and to execute an amended and restated master plan development agreement for the Ward Neighborhood Master Plan.
Craig Nakamoto, executive director, told the board the item revisits a June 5 action to correct the minutes and to present updated valuation and terms. An appraisal produced a higher fair market value (presented as about $14,000,000) and staff said Howard Hughes and HCDA agreed on a purchase price of $12,125,000. That price will be paid in kind: 63,000 square feet of floor area from HCDA’s floor-area bank rather than cash.
Senior staff clarified that use of floor-area bank rights remains subject to HCDA rules and that inclusionary-housing requirements apply to any projects that later use the transferred floor area. A senior planner clarified that inclusionary zoning unit-count requirements are separate from floor-area calculations.
Member Kevin Sakoda moved to authorize the purchase and the amended and restated development agreement; Member Chiena seconded. The roll-call vote recorded the motion as passed. Staff said the transaction is intended to support affordable-housing goals, including a possible 99-year leasehold pilot program led by state legislators’ staff. If the 99-year pilot does not proceed, staff said Block P3 would still be earmarked for affordable housing.
Board discussion touched on the source of the floor-area bank (HCDA’s remnant parcels) and on whether the $75-per-square-foot valuation used in earlier transactions should be adjusted for inflation; staff said the $75 figure was the previously agreed internal value and that they may revisit CPI escalation if the transaction is delayed.
No public testimony was offered on the item. The board authorized the executive director to complete the purchase and execute the amended and restated development agreement and related closing documents.
