In neighborhood news, plans to build a technology park in Kakaako, which have been in talks for years, are progressing, as local developer Stanford Carr has proposed a project park. The park presents an opportunity for the state to boost jobs in the tech sector. The Hawaii Community Development Authority, the state agency that regulates development in Kakaako, is looking to have an initial building phase completed by 2018.
Read the full article from the Honolulu Star-Advertiser, below:
A state agency will consider a private developer’s $80 million proposal to build two pieces of an envisioned technology park in Kakaako after the opportunity to do the job attracted just one bid.
The Hawaii Community Development Authority, a state agency regulating development in Kakaako, in December issued a request for proposals to build two facilities on state land next to the University of Hawaii Cancer Center.
Only one developer, Stanford Carr, responded.
Carr proposed developing the two facilities for $79.9 million and paying the state $581,510 in land lease rent annually for the first five years. Rent would adjust after the initial term and every five years throughout a 65-year lease, under the proposal as related in an HCDA staff report.
Many details of Carr’s proposal have not been made public because they are considered by HCDA to still be part of a competitive procurement process.
The agency has scheduled a meeting for Wednesday at which its board might decide whether to proceed with Carr’s proposal and have HCDA interim Executive Director Aedward Los Banos negotiate a detailed development agreement with Carr.
Carr, a local developer who previously partnered with HCDA to build the low-income rental apartment tower Halekauwila Place on state land, could not be reached for comment Thursday, but he had made a presentation to HCDA’s board the previous day.
The tech park is seen by some as a major opportunity to boost Hawaii’s technology industry and help another state agency meet a lofty goal of creating 80,000 tech industry jobs that pay at least $80,000 annually in Hawaii by 2030.
A hub for startups
The tech park would be on 5.5 acres owned by HCDA and is envisioned to provide roughly 350,000 square feet of space for companies, researchers, students and the High Technology Development Corp., a state agency charged with facilitating growth of commercial high-tech enterprises.
The size of the complex is roughly equivalent to a 35-story tower but is proposed as midrise buildings to be developed in three phases.
Carr bid on the first phase, which includes a 13,500-square-foot Collaboration Center and a 153,279-square-foot building for commercial tech businesses.
The smaller facility, also referred to as the “Entrepreneur’s Sandbox,” would be an extension of HTDC’s aging and outdated business incubator near UH Manoa.
“The Collaboration Center is an open mixed-use facility that gathers the essential ingredients for business formation and complements it with tools that allow an early stage startup to grow,” HCDA said in its solicitation for development proposals.
HCDA and HTDC assembled $7.3 million from state, federal and private sources to finance the Collaboration Center. That includes a $3 million grant from the U.S. Economic Development Administration, $3 million from the state Legislature and $1.3 million committed by local office supply firm Fisher Hawaii.
Carr initially proposed building the Collaboration Center for $10.2 million. In a best and final offer, however, he lowered his bid to $7.3 million, but that excludes nonconstruction “soft costs” including engineering, archaeological work, governmental fees, builder’s risk insurance, furniture and fixtures, for which HCDA would be responsible.
As part of Carr’s proposal, Fisher would occupy about 30,000 square feet of the building. Another local company, named ‘ike (formerly DataHouse), also would occupy part of the building.
For the larger building dubbed the “Innovation Hale,” Carr bid $72.6 million. Financing this piece of the project is up to Carr.
HCDA would like to have the initial phase built by 2018.
The agency aims to have subsequent phases that include 140,000 square feet of space for higher education, 47,000 square feet of startup business incubation space, a 900-stall parking structure and a public plaza done by 2020