MAYOR HANNEMANN ACCEPTS DEED TO

34 ACRES OF PRIME KAPOLEI LAND

(Wednesday, July 7, 2010) -- Mayor Mufi Hannemann today accepted a deed from Kapolei Property Development, LLC for 34 acres of prime Kapolei real estate in exchange for completing the construction of Kapolei Parkway.

“This is the result of a public-private partnership that will benefit everyone for years to come,” Hannemann said. “The City has acquired valuable land in Kapolei that will support the development of our rail transit system, enable the expansion of public services to a growing community, and ensure that a key road artery is completed.  I’m also reaffirming my invitation to the state and federal governments to join the City and County of Honolulu in bringing more public services to this part of Oahu.”

Brad Myers, president for development of Kapolei Property Development, said, “We appreciate the partnership we have with the City in bringing Kapolei Parkway to reality as well as providing government and other services to the community.”

Kapolei Property Development had been required to complete Kapolei Parkway as a condition of an earlier subdivision approval.  The company informed Hannemann that, given the poor economy, the work would take longer than anticipated.  This was a concern for the City, since Kapolei Parkway is a major thoroughfare and is integral to Kapolei’s growth and success.  Careful negotiations produced an agreement signed March 24, providing a net benefit to the City of approximately $24.6 million.

The 34 acres gained by the City include eight lots fronting Kapolei Parkway.  The package includes 21 acres that had been designated as “restricted lands,” with the requirement that they be used for government purposes.  The restriction has been removed by their conveyance to the City, adding value to the properties.  The City will gain 13 additional acres without use restrictions.  The City expects the Kapolei Parkway work to be completed by early 2014.

“Completion of another stretch of Kapolei Parkway will not only enhance the value of the adjoining properties, but benefit the people of Kapolei,” Hannemann said.  “This agreement will also allow us to move faster toward transforming Kapolei not just into Oahu’s second city, but a great city.”

The City Council unanimously approved a resolution on March 17 that authorized the agreement.

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Media contact:

Bill Brennan, Mayor’s Office, 768-6928