Waikiki Landing Project Lease to be TerminatedPosted on Nov 10, 2015 in Announcements
DEPARTMENT OF LAND AND NATURAL RESOURCES
|DAVID Y. IGE
SUZANNE D. CASE
For Immediate News Release November 10, 2015
WAIKIKI LANDING PROJECT LEASE TO BE TERMINATED
HONOLULU – The DLNR Division of Boating and Ocean Recreation (DOBOR) is following through to finalize a lease termination with Honey Bee USA, Inc. effective November 15, 2015, for the use of just over three acres of dry and submerged lands at Ala Wai Small Boat Harbor. It was the intended location of a proposed redevelopment project known as “Waikiki Landing.” The project was to have included wedding chapels, restaurants, retail and office space, a boat repair facility and fuel dock.
Due to Honey Bee’s continued difficulties with securing project financing to provide $35 million in development costs, the Board of Land and Natural Resources, at its meeting on Sept. 25, 2015, voted to terminate its lease in November. If the developer had been able to secure the entire funding amount in time to get on the BLNR agenda for its meeting this Friday, the termination might have been reconsidered by the board. There also remains just over $562,932 in back rent owned.
“DOBOR believes it has been extremely patient and accommodating to Honey Bee, but the prudent course of action is to terminate the lease. We can then begin the process of seeking a new development proposal for this prime Waikiki property,” said Ed Underwood, DOBOR administrator.
Related actions taken by the Land Board via the submittal recommendations were to: deny Honey Bee’s request for consent to assignment of boating lease, deny request for consent to mortgage in favor of ICON Commercial Lending Inc.; cancel a property easement; authorize retention of sums paid or pledged under the lease to be applied to any past due amounts; terminate the lease and all rights of lessee and all obligations of lessor; require Honey Bee to deliver copies of all documents, permits and approvals for the project to DOBOR within 30 days of the meeting; and authorize DLNR, the Dept. of the Attorney General and their agents to collect all monies due the State of Hawaii under the lease.
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