SF developer bought 15 acres on Wailea side of Piikea Ave for new mixed residential commercial development project

$90M South Maui town center is moving ahead

Community group, mayor supporting plans; developers now seek permits
By BRIAN PERRY, City Editor

reprinted courtesy Maui News 7/29/09

 

KIHEI - The San Francisco-based developers of Downtown Kihei, a 320,000-square-foot, mixed-use project, want to build a new town center for South Maui, with wide, pedestrian-friendly sidewalks, an open area for community events and outdoor seating for restaurants.

And the $90 million project already has the backing of the Kihei Community Association and Mayor Charmaine Tavares. The next step for developer Krausz Cos. is seeking government permits to make it happen.

"They've done a good job trying to mold their project around community desires," said Jon Miller, president of the Kihei Community Association.

Krausz bought the Piilani Village Shopping Center in 2003, and shortly afterward began planning another commercial complex nearby on 14 to 15 acres mauka of the Kihei Longs Drugs shopping area and on the Maalaea side of Piikea Avenue.

But Jay Krigsman, executive vice president of the Krausz Cos., said the undeveloped area was too narrow and not big enough to make anything feasible except another strip mall.

"It's not what the community wanted. It's not what we wanted," he said in a phone interview Monday.

Krausz then turned to the Wailea side of Piikea Avenue, entering into lengthy negotiations with the Azeka family to buy 14 to 15 acres on the mauka side of the Azeka Mauka shopping complex.

About 18 months ago, Krausz was able to buy that property from the Azekas, Krigsman said.

That meant the two properties could be combined for a single project bisected by Piikea Avenue. Because each property has wetlands on its makai sides that cannot be touched, the developers have about 20 acres with which to work, he said.

Miller said the developers came to the community association, seeking input.

The community's feedback was in favor of a mixed-use, commercial and residential project, with a grid layout, rather than one with cul-de-sacs, he said. The association suggested wide, shaded sidewalks, bike paths and plaza space. And instead of having a central shopping area surrounded by a large parking lot, the community wanted a few parking spaces near storefronts while most parking would be at the rear of stores, Miller said.

The common practice of surrounding a shopping complex with parking "really destroys a streetscape for everything but cars," he said. But by having storefronts near the street, as they are in Lahaina, Makawao and Paia, "it makes it much nicer."

"We're thankful they came to us . . . and designed a project appropriate for Kihei," Miller said.

The developers presented plans for Downtown Kihei to Kihei Community Association members in April, and "the public had a really positive reaction to the project," he said.

Mahina Martin, spokeswoman for Maui County and Tavares, said the project developers met with the mayor "some time ago," and "she is supportive of the project."

"The mayor is pleased with their process," Martin said, praising the developers for working with the community on the project's design.

Krigsman said Krausz representatives were on Maui last week, meeting with county Department of Public Works officials to discuss roadway improvements needed for building a roundabout at the intersection of Piikea Avenue and Liloa Drive. Work also was done on coordinating development of a bike path on Liloa Drive with Krausz's plans for the area, he said.

Krigsman said that while the planned square footage for the Downtown Kihei project remains at 320,000 square feet, that figure was "very fluid."

The developer also is staying away from two manmade wetlands mauka of the Azeka and Longs shopping complexes, he said.

"We will not be touching or enhancing or developing or doing anything to those wetlands," Krigsman said.

Plans for the shopping areas aim to create a place "where people can live, work and shop," he said, adding that it would be where people could go and spend time with their families.

Plans call for building approximately 80 residential units above shops, he said, with the rental units priced as affordable under Maui County affordable housing guidelines.

Part of the design is to have at least one village square, which could be a location for art shows, a farmers market or a Christmas tree display, Krigsman said.

The complex would be the antithesis of the big-box centers or strip malls often seen developed in Hawaii and elsewhere, he said.

Streets will allow motorists to get through, but not at high speeds, he said. And shops, mostly small ones like boutiques, will be easily accessible to residents and tourists alike.

The number of available parking stalls will be at least five spaces for every 1,000 square feet of space in the development, Krigsman said.

He said the developer's first step was to seek the community's support for the project.

"We worked closely with the Kihei Community Association," he said, adding that when the project was presented in April it received "resounding support."

The next step is seeking government approvals, including a change of zoning from residential to commercial for the Maalaea side of the project and a special management area permit.

Krigsman acknowledged that the process is going forward in the midst of a recession, but he said the project has been in the planning process for nearly four years, long before the economic downturn hit.

"We strongly believe in Maui," he said. "We think Maui is going to come out of this just fine. It's still a world-class tourist destination . . . There's a phenomenal amount of people who want to maintain the beauty of Maui."

In a "perfect world," Krigsman said, the developer would be able to proceed with construction while contractors are hungry for work and offering competitive pricing. Then, if things work out ideally, the recession would ease toward the end of construction, and retailers would be in an "expansion mindset."

"I'm very excited about this project," he said. "This is the one I have the most pride in."

Krigsman said Krausz is a family-run company.

"We build things to keep them for the long term," he said.

Krigsman estimated it could take 18 to 24 months to get all the necessary permits for the project to proceed with construction. With that in mind, the project could open in late 2012 or mid to late 2013, he said.

* Brian Perry can be reached at citydesk@mauinews.com.

reprinted courtesy Maui News 7/29/09, original link http:// mauinews.com/page/content.detail/id/521597.html?nav=10

 

 

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