16th September 2011
Posted in Updates

Honolulu City Council today granted the Laie Hotel redevelopment project a Special Management Area (SMA) permit, with conditions.  In an 8 to 1 vote, the Council approved the SMA permit, but required area drainage and watershed studies before any vertical construction permits can be issued.

The Laie Inn, which the new hotel will replace, was built in 1964 and torn down in late 2009. The rebuilding of the hotel will be facilitated by Hawaii Reserves Inc. (HRI), which oversees Hawaii properties for The Church of Jesus Christ of Latter-Day Saints.

Many Laie residents joined in today’s testimony to say they are happy to have a new facility that will serve their current needs and provide further employment throughout the community. About 2/3 of the participants spoke in favor, and applauded the final passage.

“I see the need. I see the benefit to families and students. As a small business owner, I see the opportunities,” said a longtime Laie resident and businessman.

Honolulu City Council Chair Ernest Martin, who represents District 2, and several other council members said the standards for the SMA were fairly high in this application and complemented everyone, the city, HRI, and particularly the community for working long and hard on this project.

“The replacement hotel will provide reasonable accommodations for those enjoying the Polynesian Cultural Center and visiting friends and family in the region,” said Eric Beaver, HRI president and chairman. “It’s a reasonable solution that balances moderate job growth for residents with maintaining Laie’s unique, local environment.”

The replacement Laie Hotel in the Koolauloa region of Oahu, has island-wide support. Seventy percent of Oahu residents favor the building of the new hotel, with positive reaction in the Koolauloa region even higher at 72 percent, according to recent market research.*

The construction phase will bring in 150 jobs, with more than $2.5 million in wages. After completion, the 220-room hotel is estimated to provide about 125 jobs on site, both regular and part-time, with guest expenditures anticipated at $28 million annually.

The plan is for the hotel to provide training opportunities for students enrolled in Brigham Young University-Hawaii’s hospitality and tourism program. Its contemporary Hawaiian design will complement nearby Polynesian Cultural Center and the local community.

Already zoned for resort development, the new, moderately sized hotel will incorporate substantial setbacks. Its height will meet the under roof 40 foot height limitation. The hotel will be located across the street from the beach, leaving views toward the ocean undisturbed from the main highway.

Environmental, cultural and economic impact studies were completed in 2007 as part of the Environmental Assessment (EA) for the property. The City’s Department of Planning & Permitting, which issued a “Finding of No Significant Impact (FONSI)” in July 2008, accepted the EA.

The new hotel’s underground storm water containment system will decrease site run-off by about 10 percent. The watershed and drainage studies, mandated as special conditions by the City Council, will help address the community’s most problematic drainage challenges during heavy rain events.

The purpose of the SMA review is to ensure the project is consistent with SMA coastal zone objectives, including access to and preservation of coastal resources and the environment. With today’s vote, the city Department of Planning and Permitting and City Council affirm that the impact on the coastal environment will not be significant.

* Market Research conducted by Heart + Mind Strategies with field research by Ward Research.