OHA staff brief trustees on Nalama Kukui, Harbor Shops and Evile Business Center; trustees press for visioning and solar study

Laurie Walker, interim director of land assets, gave an informational briefing on the Office of Hawaiian Affairs’ (OHA) property holdings in the Iwilei area, including Nalama Kukui (506 North Nimitz Highway), the Honolulu Harbor Shops, and the Evile Business Center (units 1, 2 and 3A at 501 Sumner Street).

Walker said Nalama Kukui’s occupancy is above 95% and listed completed and in‑progress maintenance and capital projects: front awning completed; signage permitting and tenant design pending; second‑ and third‑floor air‑conditioning replacements in progress; roof resealing and fire‑alarm tie‑in scheduled in the fiscal year; and spalling repairs completed as needed. For FY26 she said staff will work with property managers to prioritize capital projects.

For the Honolulu Harbor Shops, Walker reported stable net income and completed an upgrade to the security camera system with live monitoring; parking‑lot repairs and a contracted biweekly sidewalk cleaning are in place. Walker said staff plan a site‑assessment report in FY26.

Walker said the Evile Business Center’s short‑term leasing (three‑to‑six‑month leases) has reduced income stability and that staff are ramping up marketing and property improvements. Recent work includes a security‑camera upgrade, repairs scheduled to Apartment 1 entrance and loading‑dock gate, installation of a demising fence between Apartment 1 and Apartment 2, and replacement of fencing fabric to improve appearance. A site assessment is planned for FY26.

Trustees pressed staff to shift some attention from maintenance to longer‑term visioning for the properties, given planned infrastructure and transit‑oriented development (TOD) in Iwilei. Multiple trustees asked that OHA be at the table in pre‑planning and development conversations with other local landowners and stakeholders (Castle & Cooke, City and County of Honolulu, rail planners and neighborhood landowner networks such as Move Oahu Forward). Walker and staff said OHA’s real‑estate consultants are already participating in initial discussions and that the Evile Business Center and Harbor Shops were acquired together in 2021 as part of the same purchase from a seller (Cerritage referenced in discussion).

Trustees asked specific operational questions: whether Longstrugs (a tenant referenced in the report) is current on rent (Walker confirmed yes), whether Mercedes had executed a lease (Walker said no lease was executed), how often site assessments are performed (the most recent was completed in 2022; Walker said site assessments are typically done on a five‑to‑10‑year cycle but that staff can reassess timing), and whether staff are exploring solar or shading over parking to reduce energy costs. Walker said she was not aware of an active parking‑canopy solar installation but that feasibility work had been discussed previously and staff will investigate further.

Trustees proposed forming an ad hoc group or permitted interaction group to engage more directly with stakeholders and to champion a coordinated visioning effort; Chair Souza indicated that procedural mechanisms exist for trustees to organize to pursue that work. Trustees asked staff to return with a proposed timeline, options for short‑ and long‑term actions (including solar feasibility, site assessments, and marketing strategy), and an update on ongoing conversations with neighboring landowners and city planners.

The board then moved to adjourn and passed a roll‑call motion to close the meeting.