PCF— Economic Development Day, part 2

The next part of our day consisted of a panel comprised of Mike Wright from Alexander Baldwin, Mitch D'Olier from Kaneohe Ranch, Jan Yokota from General Growth Properties, and Cathy Camp from Kamehameha Schools. All four examined the state of development and construction in Hawaii.

Cathy Camp started off talking about KS's $8.3 billion endowment and explained how that might sound like a lot of money, but it's not when one considers that it must exist in perpetuity, as outlined in the Princess' will. Right now KS has 45,000 learners among its three main campuses and DOE partners. On their property management side, they have 15,000 acres in active management including several shopping centers at the Royal Hawaiian, Kahala Mall, and Pearl Ridge; much of the industrial area around Kalihi, and most of the North Shore of O'ahu. Some of the challenges they face are:
— keeping tenants happy
— impact fees
— gap housing (high exactions)
— adjoining propoerties
— easements
— full urban standard
— lack of housing
— lack of population growth
— the economic downturn
— unwillingness of lenders to take risks
— the permitting process/bureaucracy
— high cost of construction
— " " " land
— infrastructure capacity.
And the gorilla in the room that will affect all of this is the proposed rail system.


Mitch D'Olier explained the controversy surrounding Kaneohe Ranch's proposed redevelopment of Kailua's commercial area. They plan to engage the community first— 18 month process with 6 public meetings to come up with a pedestrian plan that maintains Kailua's eclectic identity and "Hawaiianess". That will be a challenge given the amount of resistance they are getting from the residents.

Mike Wright touched on A & B's (holidng company comprised of Matson navigation, A & B Properties, HC & S Sugar) philosophy to redevelop the urban core; encourage live/work/play environments; take cars off the road; and avoid suburban sprawl. (Sounds like another argument for rail.) He argues that development is multiplier in that it provides immediate and deep economic stimulus and job creation that keeps money at home to benefit many in the community.

Jan Yokota spoke for Commonwealth REIT (Real Estate Investment Trust) that holds $18 billion in real estate investments (mostly office and industrial space) in 34 states. In Hawai'i they control most of Mapunapuna and Sand Island along with Campbell Industrial Park. Their Hawaii properties comprise 11% of their entire portfolio.