WHAT'S UP WITH ALOHA STADIUM?

WORK CONTINUES TO CLEAR OUT CURRENT SITE, PATH FORWARD REMAINS UNCLEAR.

AS GOVERNOR JOSH GREEN ANNOUNCED PLANS TO SEEK AN ALTERNATIVE PATH TOWARDS REDEVELOPING THE LANDMARK.

WHAT DOES THAT MEAN?

WHAT WILL THE NEW STADIUM LOOK LIKE IS THIS ULTIMATELY HOW MUCH WILL TAXPAYORS HAVE TO PAY TO CREATE A NEW EPICENTER FOR HAWAII SPORTS AND ENTERTAINMENT?

TONIGHT'S LIVE BROADCAST LIVESTREAM OF PBS HAWAII START NOW.

¶¶ ¶¶ ALOHA AND WELCOME TO INSIGHTS ON PBS HAWAII.

I'M DARYL HUFF.

THE WAIT CONTINUES TO FIND OUT WHAT WILL HAPPEN TO ALOHA STADIUM NEARLY TWO‑AND‑HALF YEARS SINCE IT WAS DECLARED UNSAFE FOR SPECTATORS.

IT WAS HOPED CONSTRUCTION ON A NEW STADIUM WOULD BE UNDERWAY BY NOW, BUT THE RUSTING STRUCTURE STILL STANDS AS A MONUMENT TO GOVERNMENT INDECISION.

WHILE GOVERNOR GREEN IS PURSUING A NEW PATH FOR THE PROJECT, MANY PEOPLE ARE WONDERING WHAT’S UP WITH ALOHA STADIUM?

WE LOOK FORWARD TO YOUR PARTICIPATION IN TONIGHT'S SHOW.

YOU CAN EMAIL OR CALL IN YOUR QUESTIONS AND YOU’LL FIND A LIVE STREAM OF THIS PROGRAM AT PBSHAWAII.ORG AND THE PBS HAWAII FACEBOOK PAGE.

NOW, TO OUR GUESTS.

SENATOR GLENN WAKAI IS THE MAJORITY FLOOR LEADER AT THE HAWAII STATE SENATE.

THE DISTRICT HE REPRESENTS STRETCHES FROM KALIHI TO WAIPAHU AND INCLUDES ALOHA STADIUM.

HE ALSO SERVES AS VICE CHAIR OF THE COMMITTEE ON ENERGY, ECONOMIC DEVELOPMENT, AND TOURISM.

LUIS SALAVERIA IS THE HEAD OF THE STATE DEPARTMENT OF BUDGET AND FINANCE.

PRIOR TO HIS APPOINTMENT, HE SERVED IN VARIOUS EXECUTIVE ROLES IN STATE GOVERNMENT, INCLUDING DEPUTY DIRECTOR OF FINANCE AND AS THE DIRECTOR OF THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

STEPHEN WOOD IS THE CHAIR OF THE AIEA NEIGHBORHOOD BOARD.

HE HAS LIVED IN AIEA SINCE 2016 AND HAS BEEN ACTIVE IN SEVERAL COMMUNITY PROJECTS INCLUDING THE HALAWA STREAM DREDGING EFFORT, MAKALAPA PARK RESTORATION, AND RESTRICTIVE PARKING ZONE EFFORTS FOR HALAWA.

BEN CAYETANO IS A FORMER HAWAII GOVERNOR.

PRIOR TO BECOMING GOVERNOR, HE SERVED IN THE STATE HOUSE AND SENATE AND AS LIEUTENANT GOVERNOR.

HE’S BEEN OUTSPOKEN ON THE FUTURE OF THE STADIUM.

WE DID INVITE REPRESENTATIVES FROM THE ALOHA STADIUM AUTHORITY AND THE STATE DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES, BUT BOTH DECLINED CITING PROCUREMENT LAW RESTRICTIONS ON PUBLIC STATEMENTS.

START WITH YOUMEMBER OF THE ADMINISTRATION.

WHERE DOES IT STAND NOW?

WHERE ARE WE AND IF YOU DO USE THE TERM BID OR SOMETHING ELSE OTHER THAN RFP, ALL THESE OTHER ACRONYMS, WHAT DOES IT STAND FOR?

HOW SOON ARE WE GOING TO GET GOING WITH THIS?

>> WE ARE ARE RIGHT NOW, BASICALLY, AFTER WE RE‑EVALUATED THE PREVIOUS I GUESS CONTRACT VEHICLE, CALL IT PROCUREMENT, WE ARE IN THE PROCESS OF COMING UP WITH A GOOD KIND OF CONCESSION AN PARTNERSHIP PLAN TO GO FORWARD IN ORDER TO JUST REDUCE THE RISK ON THE STATE.

WHEN IT COMES TO MAINTAINING AND MANAGING FACILITY.

FOR 30 YEARS.

SO WHERE IT STANDS RIGHT NOW, GET THROUGH THE LEGISLATIVE SESSION, COUPLE OF REQUESTS THAT ARE IN THERE.

THAT WOULD NEED TO BE EXECUTED ON.

BUT AFTER WE GET OUT OF THE LEGISLATIVE SESSION, EXPECTATION REALLY IS TO JUST DIVE BACK INTO THIS THING AND REALLY GET NEW VEHICLE OUT THERE IN ORDER FOR US TO PROCURE THAT PARTNERSHIP WITH THE PRIVATE PARTNER.

>>Daryl: THAT BRINGS TO SENATOR.

WHERE DOES IT TANDEN FROM THE LEGISLATIVE POINT OF VIEW.

>> LEGISLATIVE PROVIDED PROCESS, PROVIDED MONEY YEAR AGO, REALLY EAGER TO SEE THE PROJECT MOVE FORWARD.

>> I APPRECIATE DIRECTOR'S DUE DILIGENCE BUT THAT DUE DILIGENCE WAS DONE WITH THE CURRENT RFP.

AT A CERTAIN POINT, DUE DILIGENCE MEANS JUST DELAY.

DELAY.

LOOK AT IT OVER AN OVER AGAIN.

NEVER GOING TO PUT OUT A PUTT OUT PERFECT RFP WITH NO MARGIN OF RISK FOR ANYONE, STATE, PRIVATE DEVELOPER.

PULL TRIGGER GET GOING WITH IT.

DESIGN/BUILD, OPERATE FINANCE ALL OF THE OTHER ACRONYMS PUT IN THERE.

WE HAVE TO GO AND MOVE FORWARD WITH THE STADIUM.

>>Daryl: FROM THE AIEA NEIGHBORHOOD BOARD.

WHO WHAT IS THE HOPE FROM THE COMMUNITY IF TERMS WHAT HAVE HAPPENS THERE?

BIG PIECE OF LAND, VERY IMPORTANT TO A LOT OF PEOPLE.

NOT JUST YOUR COMMUNITY.

>> SO OVER THE YEARS, WE'VE BEEN, STADIUM AUTHORITY HAS BEEN BRIEFING OUR BOARD ON MONTHLY BASIS.

ABOUT WHAT THEY WANT TO DO.

COMMUNITY HAS RESPONDED BACK NUMEROUS TIMES VIA TOWN HALLS OR WORKSHOPS, OR ANY OTHER ACTIVITY THAT THEY STADIUM AUTHORITY OPENED TO THE PUBLIC.

AND BASED ON THOSE, THEY DEVELOP WHAT WAS PRIOR TO GOVERNOR IGE PUTTING A STOP TO THE PROCESS, WAS DEVELOPED BY THE COMMUNITY.

IT WAS WHAT THE COMMUNITY WANTED.

WE WANTED STADIUM THAT COULD BE USED IN A MIXED USE ENVIRONMENT.

AT THAT COULD BE USED NOT JUST FOR U.H.

FOOTBALL, COULD BE USED FOR CONCERTS, USED FOR TRUCK RALLIES WHATEVER IT MIGHT BE.

ALONG WITH HOUSING TO BE INCORPORATED ON THE REST OF THE PROPERTY.

AND ENTERTAINMENT DISTRICT.

TO SUPPORT THAT.

I'VE HEARD STORIES U.H.

OPENING UP SPORTS MEDICINE COMPLEX IT BE ASSOCIATED WITH IT.

I'VE HEARD OTHER THINGS.

BUT THAT WAS WHAT WAS ENVISIONED BY THE COMMUNITY AT THE TIME.

>>Daryl: GOVERNOR, YOUR OWN VISION AND YOUR PERSPECTIVE ON THIS PROCESS?

MINE, SENATOR WAKAI SAYING LET'S GET GOING.

DO YOU SEE RISKS IN MOVING QUICKLY OR DO YOU THINK THAT THIS IS SOMETHING THAT IS OKAY TO WAIT IT OUT A LITTLE BIT AND MAKE SOME DECISIONS?

>> I THINK YOU NEED ALL THE FACTS AND START TO USE A COMMON SENSE.

GOLDMAN SACHS STUDY CAME OUT, INDICATE IF THE STATE WENT ALONG WITH THE P3, IT WOULD COST ADDITIONAL $400 MILLION.

THOSE ARE THE KIND OF STUFF YOU DON'T IGNORE.

BUT MYSELF, GOVERNOR WAIHEE AND GOVERNOR ABERCROMBIE.

SAW AN OPPORTUNITY WE NEVER HAD.

THAT IS THAT WHEN YOU TEAR STADIUM DOWN, IT WILL FREE UP 98 ACRES OF LAND.

STATE OWNED LAND.

AND THOSE 98 ACRES, COULD BUILD TWO ALA MOANA SHOPPING CENTERS.

THAT'S HOW BIG IT IS.

HOUSING IS THE MOST ONE ISSUE DURING THE CAMPAIGN, ALL OF THE POLITICS TALKED ABOUT AFFORDABLE HOUSING.

THE STADIUM THERE WILL TAKE A THINK 25 ACRES OF THE 98 ACRES.

INVOLVES UNDER GROUND PARKING OR SOMETHING LIKE THAT.

THOSE 28, 25 OR 28 ACRES ARE REALLY VALUABLE.

YOU COULD PROBABLY BUILD ENTIRE COMMUNITY THERE WITH LOW, MID‑LEVEL AND HIGHRISE HOUSING.

COULD HOUSE THOUSANDS OF PEOPLE.

>>Daryl: LET ME MOVE ON TO HOW WE GOT HERE.

LOUIE, LEWIS, WHAT RISK DID YOU SEE?

WE'VE HEARD MR. WOOD AND SENATOR WAKAI TALK ABOUT THIS VISION OF THE NASED, NEW ALOHA STADIUM ECONOMIC DISTRICT.

WHICH ENVISIONED ESSENTIALLY TWO DEALS.

ONE WAS A DEAL FOR THE STADIUM OF THE OTHER WAS A DEAL FOR THE REAL ESTATE.

WHAT CONCERNS DID YOU FIND WHEN YOU FOLKS LOOKED AT IT ABOUT RISKS HAVING PRIVATE DEVELOPERS HANDLE ALL OF THAT IS THIS?

ACTUALLY THE OPPOSITE.

RISK EXISTED AND YOU THINK THERE WERE SEVERAL DIFFERENT FACTORS OVER THE COURSE OF THE ALOHA STADIUM DEVELOPMENT, DISCUSSION, THAT END UP CHANGING.

FIRST WAS WHEN THE MONEY WAS FIRST APPROPRIATED, TO THE STADIUM AUTHORITY, IT WAS ONLY 170 I THINK WHEN IT FIRST STARTED.

BUT THEN THE LEGISLATURE, AT THE CAME UP WITH PROCUREMENT PLAN.

BASED UPON HAVING $170 MILLION OF STATE FUNDING.

BUT THEN THE LEGISLATURE SAW THAT THERE WAS NEED TO ADD MORE MONEY.

WHEN THEY ADDED MORE MONEY AND BROUGHT THAT NUMBER UP TO 350, IT REALLY CHANGED THE FINANCING.

FINANCIAL PICTURE OF THE PROJECT.

SO THE RISK REALLY WAS AT 170, THE STATE WAS BEARING A SIGNIFICANT AMOUNT OF RISK.

BASED UPON THE PARTNERSHIP THAT WAS BEING PROPOSED.

WHEN STATE WAS ESSENTIALLY KICKING IN MORE EQUITY, INTO THE PARTNERSHIP, THERE WAS OPPORTUNITY TO SHIFT MORE OF THAT RISK TO THE PRIVATE PARTNER.

AND PRIVATE PARTNER WILL TAKE ON THE REVENUE RISK AND BE ABLE TO BUILD US STADIUM THAT WOULD MEET OUR NEEDS.

>>Daryl: SENATOR WAKAI, LONG TIME ADVOCATE FOR THIS SORT OF PUBLIC/PRIVATE PARTNERSHIP.

3P OR P3 WE ALWAYS TALK ABOUT.

HOW DO YOU SEE IT WORKING IN TERMS OF EXPLAINING TO LAY PEOPLE WHAT IS THE VALUE OF HAVING A REAL ESTATE DEVELOPMENT HAPPENING ALONGSIDE STADIUM AND HOW WILL ARE THEY FINANCIALLY TIED TOGETHER?

ON THE MARKET TO BUY A HOUSE, RIGHT NOW, THERE'S SOME WHO BELIEVE WE SHOULD DO DESIGN/BUILD WITH $350 MILLION WHICH HOW MUCH WE HAVE IN CASH, BUILD ME A STADIUM.

OTHERS OF US WHO BELIEVE THAT WE REALLY NEED A STADIUM PERHAPS IN THE 5 TO $600 MILLION RANGE.

HAS LUXURY BOX, CLUB LEVEL SEATING ROLL OUT STAGE AND LIGHTING RIGS, ALL OF THOSE THINGS THAT CAN REALLY BRING THAT PLACE TO LIFE.

SO IT'S EITHER DO WE WANT TO BUY WHAT WE HAVE WITH CASH, OR DO WE WANT TO BUY STADIUM FOR MORTGAGE WITH 30 YEAR LIFE SPAN.

WHERE I THINK DIFFERENCE OF OPINION ON THOSE WHO WANT TO SEE THE FINANCING OF THE STADIUM.

GOING TO BUY STADIUM CASH OR KIND OF CREATE A MORTGAGE THROUGH A PUBLIC PRIVATE PARTNERSHIP WHERE WE HAVE ENTITY WOULD BUILDS STADIUM FOR 30 YEARS, TAKE CARE AND MAINTAIN THAT STADIUM, BUT THEY'RE GOING TO GET REVENUE SHARING FROM US OVER THE COURSE OF THAT DURATION OF THAT CONTRACT.

>>Daryl: GOVERNOR, GO AHEAD.

CAN I HEAR YOU WANTING TO SAY SOMETHING.

>> WHEN THEY TALK ABOUT REVENUE SHARING, YOU READ THE STUDY, THERE'S NO QUANTIFICATION OF WHERE THE REVENUE IS GOING TO COME FROM.

HOW CAN YOU QUANTIFY A REVENUE STREAM FROM ENTITIES THAT YOU DON'T KNOW IF THEY EVER GOING TO BE BUILT.

HOTEL, RESTAURANT, OR ANYTHING ELSE.

THAT'S A FLAW IN THE PLAN IN MY OPINION.

SECOND, I THINK THAT LEGISLATURE SENATE, SHOULD LOOK INTO WHY THE CITY BACKED OUT OF THEIR PRIVATE PARTNERSHIP PLAN AND I THINK IT'S BECAUSE THE PRIVATE SIDE.

>>Daryl: YOU'RE TALKING ABOUT THE RAIL.

>> RAIL, RIGHT.

PRIVATE SIDE ALWAYS WANTS A LOT OF GOODIES.

DEVELOPMENT, CONCESSIONS TAX BREAKS, ALL OF THAT.

IN THE END, MAYOR CALDWELL FELT IT WAS NOT A GOOD DEAL FOR THE CITY.

THAT'S WHY THE STATE SHOULD REALLY LOOK AT THIS CAREFULLY AND WITH SOME SUSPENSION.

>> HOW HAS IT BEEN COMMUNITY MEMBER INVOLVED IN THAT PROCESS TO SEE WHAT'S HAPPENED OVER LAST 8 TO TEN MONTHS?

>> I'M WITH SENATOR WAKAI ON THIS.

LONGER WE DELAY, MORE IT'S GOING TO COST.

LOOK AT THE RAIL.

LONGER WE DELAYED RAIL, THE MORE IT COSTS.

I MEAN, LOUIS WAS JUST TALKING ABOUT STARTED OUT 170 MILLION.

AT 350 MILLION.

I THINK NEW NUMBER IS 400 MILLION.

AND WE JUST GOT MOVE ON IT AT THIS POINT.

AND WORK WITH WHAT WE CURRENTLY KNOW THAT WE CAN DO.

FOR EXAMPLE, LIKE SENATOR WAKAI AND I WERE TALKING THE OTHER DAY ABOUT THIS.

WE CAN WRITE RFP.

WRITE A CONTRACT GIVES US OFFRAMPS.

IF WE DON'T SECURE PRIVATE FUNDING FOR CERTAIN THINGS, WE DON'T PUT A ROOF ON THE STADIUM.

IF WE DON'T SECURE FUNDING FROM PRIVATE ENTITIES, WE DON'T PUT LUXURY BOXES INTO THAT STADIUM.

WE BUILD TO WHAT WE CAN AFFORD.

AND THEN IF WE SECURE THOSE PARTNERSHIP, THEN WE BUILD MORE TO ACCOMMODATE.

>> QUICKLY THROW OUT A COUPLE OF QUESTIONS RESPECT OUR VIEWERS.

BOTH OF THESE QUESTIONS ARE RIGHT ALONG THE LINES WHAT YOU JUST SAID.

WILL THE PROPOSED STADIUM HAVE INDIVIDUAL SEATS OR JUST BLEACHERS?

WILL THERE BE A ROOF?

THAT'S HOWARD FROM KAILUA.

JENNA FROM MAKIKI, VIEWER UNDERSTANDS NOT WANT TO BURDEN TAXPAYORS DON'T WANT STADIUM TO BECOME A MEDIOCRE BARE BONES TYPE OF STADIUM.

BUILD RIGHT.

MAXIMIZE REVENUE MAKING POTENTIAL.

WHEN WE TALK ABOUT $350 MILLION ALREADY APPROVED.

ANOTHER 50X THAT NEEDS LEGISLATIVE ENDORSEMENT THIS YEAR.

TO GET YOU TO THE 400 MILLION THAT WE'RE TALKING ABOUT.

WHAT DO YOU GET FOR THAT?

WHAT DO YOU ENVISION IT LOOKING LIKE IF YOU JUST BUILT THE STADIUM WITH THE MONEY YOU HAVE.

WHAT WOULD IT LOOK LIKE.

>> ALL THE ANALYSIS PROPOSED SO FAR, 400 MILLION IS NOT GOING TO GET US THE LEVEL OF STADIUM THAT WE WOULD NEED IN ORDER TO, ONE, MAINTAIN OUR STATUS FOR THE UNIVERSITY OF HAWAII FOOTBALL TEAM.

AND IS NOT GOING TO REALLY GET US WHAT WE THINK IS NECESSARY IN ORDER TO CREATED, ONE, THE ENTERTAINMENT DISTRICT AS WELL AS THE CRITICAL MASS THAT IS NECESSARY IN ORDER TO REALLY MAKE THIS PROJECT WORK.

I THINK IT'S SHOULD BE KNOWN.

THIS ADMINISTRATION IS DEFINITELY COMMITTED TO EXECUTING ON THIS PARTICULAR PROJECT.

WE WANT TO MAKE SURE AND WE WANT TO BUILD THAT CONTRACT WITH THE RIGHT OFFRAMPS AND WE WANT TO MAKE SURE WE DEFINE THE CONTRACT UNLIKE HOW MAYBE P3'S IN THE PAST.

LOOKING OUT FOR BEST INTEREST IN THE STATE GETTING BACK TO THE SAME QUESTION.

WHY DOESN'T THE LEGISLATURE JUST CHUCK IN SOME MORE MONEY AND THEN BUILD GOOD STADIUM?

IT JUST SEEMS TO PUBLIC THAT SEEMS LIKE THE SIMPLE SOLUTION.

WHY NOT JUST DO IT THAT WAY?

>> WELL.

>> I'VE BEEN AT THIS FOR 13 YEARS.

AND FIRST GOT THE FIRST CHUNK OF MONEY.

BEFORE IT BECAME 170, BECAME OF 170 BECAUSE OF COVID.

YEAR PREVIOUS TO THAT, 2019, IS WHAT WE ALLOCATED $350 MILLION.

AT THAT TIME,.

>> 350 MILLION, FIGURE FROM PRECOVID?

YEAH, SO CONSTRUCTION COSTS GONE UP A LOT SINCE THEN.

>> RIGHT.

I HAD TALKED TO MY COLLEAGUES BACK IN 2019.

THAT 350 MILLION AT THAT TIME IS ALL THAT I AND THE COMMUNITY WOULD ASK FOR.

I WANT TO STAY TRUE TO COMMITMENT TO COLLEAGUES.

350 BANDIED AROUND 4 YEARS LATER AND WE COULD THROW $700 MILLION OUT THERE.

WHATEVER THE FIGURE IS.

I'M NOT GOING TO ASK MY COLLEAGUES FOR ANYTHING MORE THAN WHAT THEY PUT IN.

THAT'S WHY WE'RE TRYING TO BE CREATIVE.

BY LOOKING AT PRIVATE SECTOR SHORE UP THE DIFFERENCE WHAT WE NEED.

BARE BONES.

TALKING ABOUT STADIUM 25,000 SEATS.

STARTED THIS DISCUSSION, LOOK AT 35,000.

EVERY MONTH THAT WE DELAY.

ADD $22 MILLION TO THE COST.

AS WE DELAY, GETTING SMALLER AND SMALLER STADIUM.

>>Daryl: DIRECTLY TO HOWARD.

NO ROOF?

SOME BLEACHERS?

WHAT DOES IT LOOK LIKE.

>> BENCH SEATING NOT GOING TO GET INDIVIDUAL SEAT.

>>Daryl: AT ALL?

>> WELL, MAYBE IN THE LUXURY BOXES GENERAL PUBLIC.

>>Daryl: FOLDING CHAIR?

>> JUST BENCH.

NOT HAVE A VERY GOOD FAN EXPERIENCE.

>> HEARING THIS CONCEPT PRIVATE SECTOR PARTICIPATING IN REAL ESTATE AND GENERATING ENOUGH MONEY TO MAKE UP DIFFERENCE HERE, HOW REALISTIC DO YOU THINK THAT EXPECTATION IS.

>> I DON'T HAVE MUCH CONFIDENCE IN THE STUDY.

AGAIN, I WANT IT POINT OUT TO SENATOR WAKAI REASONS, STUDYING ABOUT GOLDMAN SACHS I THINK IT WAS, ASSIST THAT THE P3 WOULD COST ADDITIONAL 400 MILLION.

CANNOT IGNORE INFORMATION LIKE THAT.

>> LET ME ASK GOVERNOR.

400 MILLION FROM STATE?

STATE.

>> FROM THE STATE.

SO BUT YOU KNOW, TAKE A LOOK AT HOW THEY APPROACH THIS THING.

UNIVERSITY OF HAWAII WAS NOT EVEN CONSULTED.

DIDN'T HAVE A SEAT IN THE NEGOTIATIONS.

THE PART OF THE STADIUM AUTHORITY, BUT FROM WHAT I UNDERSTAND, WHENEVER THEY DISCUSS THE PROPOSED STADIUM IN PARTICULAR, THE U.H.

WAS NOT THERE.

YOU CAN'T ALWAYS THE U.H.

FOOTBALL TEAM AS A LOSS LEADER.

EVERY TIME THE U.H.

FOOTBALL TEAM PLAYS, IT COST THEM ABOUT 150 MILLION.

UNDER THE OLD STADIUM.

TAKE INTO ACCOUNT IF YOU WANT A FOOTBALL TEAM, WHAT HAPPENS TO THE U.H.?

NOW, I DON'T KNOW.

I WOULD LIKE AN EXPLANATION FROM SENATOR WAKAI OR I DON'T KNOW, LOUI CAN GIVE EXPLANATION WHY UNIVERSITY FOOTBALL TEAM WAS TOTALLY IGNORED.

YOU HIRE CONSULTANT TO DO A STUDY.

>> PAY MILLIONS OF DOLLARS.

STUDY AND THEY DON'T EVEN COME UP WITH A PROPOSAL THAT WHERE THE BIGGEST CLIENT FOR THE STADIUM WOULD BE PLAYING WHILE THE STADIUM IS BEING DEMOLISHED AND REBUILT.

IS IT TRUE THAT THAT WAS A GAP IN THE THINKING?

>> KEEP IN MIND UNIVERSITY OF HAWAII WILL PLAY 7 DAYS OUT OF THE YEAR IN THAT STADIUM.

THEY'RE AN IMPORTANT CLIENT MUCH BUT NOT THE BIGGEST CLIENT.

WE'RE HAVING DISCUSSIONS WITH YOU UNITED SOCCER LEAGUE MAJOR LEAGUE RUGBY.

BOTH OF WHO SIGNED LETTERS OF INTENT WITH THE STADIUM AUTHORITY.

WHEN AND IF WE BUILD A STADIUM, THEY WILL PLAY THERE AND COLLECTIVELY 40 PLAY DATES.

>> IDEA IS WE WOULD THEM BE ANCHOR TENANTS.

7 ANCHOR FOOTBALL GAMES HAVE THAT FOR FREE.

IN THE PAST, PAID HUNDRED TO $150,000 PER GAME.

TO THE STADIUM AUTHORITY.

TO COVER EXPENSES.

CAN YOU QUESTION THAT AWAY TO THEM FOR FREE.

THEY'RE AROUND IMPORTANT TENANT BUT NOT GOING TO BE THE MAIN ECONOMIC DRIVERS FOR THE STADIUM.

>>Daryl: HOW IMPORTANT ARE THEY DO THE STADIUM?

>> VERY IMPORTANT.

>>Shawn: AS A DIVISION 1 SCHOOL.

>> VERY IMPORTANT TO THE ENTIRE COMMUNITY.

NO ONE ELSE TO CHEER FOR IN THE STATE.

KIND OF SITUATION PUT TOGETHER A MAKESHIFT STADIUM ON CAMPUS.

KIND OF SORRY STATE OF AFFAIRS FOR THAT.

WE SHOULD HAVE REALLY DONE BETTER FOR THEM.

>> GOES BACK TO THE GOVERNOR WAS SAYING.

EARLIER.

BEFORE THIS, WE'RE ASKING THE REBUILD THAT STADIUM DOWN AT U.H.

TO ACCOMMODATE THIS.

YOU'RE ASKING ONE OF THE LARGEST GROWING POPULATIONS IN OVER WEST OAHU, TO DRIVE ALL THE WAY DOWN THROUGH TRAFFIC, TO ATTEND THOSE GAMES DOWN AT U.H.

WHEREAS I THINK THAT IF WE WANTED TO ACTUALLY DO IT RIGHT, WE MAINTAIN THE CENTRALIZED LOCATION OF WHERE THE STADIUM IS AT CURRENTLY.

IT'S SERVICES WHOLE ENTIRE ISLAND.

NOT JUST ONE PART OF THE ISLAND.

>> GOVERNOR WANTS TO JUMP IN.

>> WELL, CHING FIELD WAS KIND OF BUILT BY THE UNIVERSITY AS EMERGENCY MEASURE.

THERE WAS NO PROVISIONS FOR A FIELD THAT U.H.

COULD PLAY ON.

SO THAT IS WHY, GIVE DAVE MATLIN AND UNIVERSITY OF HAWAII CREDIT FOR COMING UP WITH THE MONEY FROM THEIR OWN BUDGET TO BUILD THE 9,000 SEATS ON CHING FIELD.

THEY'RE GOING TO INCREASE IT TO 16,000.

>> THIS IS, I'VE GOTTEN COUPLE QUESTIONS NOW ON THE LOCATION.

LET'S SPEND SOME TIME TALKING ABOUT WHERE TO PUT THIS STADIUM.

NOW, IS IT THE CONCLUSION OF THE ADMINISTRATION THAT THAT IS WHERE IT'S GOING GO OR IS THERE ANY DISCUSSION ABOUT ABSOLUTELY CHUCKING THE HALAWA PLAIN AND HAVE IT GO UP SOMEWHERE ELSE.

>> COMMITTED TO BUILDING CURRENT SITE?

BECAUSE.

>> THAT'S THE PROCESS THAT HAS BEEN STARTED.

DISCUSSION THAT WE'VE BEEN HAVING NOW FOR YEARS.

AND YOU KNOW, I THINK IN ORDER TO TAKE A LOOK AT TRYING TO DO THIS A STADIUM SOMEWHERE ELSE, WHETHER EVEN IF IT'S AT THE UNIVERSITY OR SOME OTHER PLACES WOULD ESSENTIALLY RESTART THE PROCESS ALL OVER AGAIN.

LOOKING AT ANOTHER FIVE TO TEN YEAR DELAY.

>> STEVEN, WHY WOULD THE COMMUNITY WANT A STADIUM THERE.

>> IT SEEMS LIKE SUCH A PAIN TO HAVE A STADIUM THERE.

>> LOOK WHAT'S THERE NOW.

THERE'S A HUGE GIANT PARKING LOT.

THAT GETS USED WHAT, CONCERTS SWAP MEETS.

AND OCCASIONAL CONCERTS AND A FAIR.

OTHER THAN THAT, IT'S AN OPEN PARKING LOT THAT JUST SITS THERE.

AND SO I THINK THE COMMUNITY IN WHAT, NOT THINK, WHAT THE COMMUNITY TOLD ME WAS THAT THEY WOULD PREFER TO HAVE THAT REVITALIZED.

THE STADIUM AUTHORITY AT THE TIME, TOOK IT, THIS INITIAL PLAN THAT THEY HAVE RIGHT NOW FOR THE STADIUM, WASN'T THEIR FIRST PLAN.

INITIAL PLAN WAS TO BASICALLY CREATED SAME SIZE STADIUM AND PUT IT IN THE SAME LOCATION.

BASE ON COMMUNITY INPUT ABOUT NOISE, TRAFFIC, THESE KIND OF THINGS THAT THE COMMUNITY'S WORRIED ABOUT, OFFSET TO CLOSER TO THE H2O 1.

TILTED IT IN A DIRECTION THAT WOULD REDUCE THE AMOUNT OF NOISE THAT WOULD IMPACT THE NEIGHBORHOOD.

NEIGHBORHOOD SEE IT NET BENEFIT WITHOUT ANY NEGATIVES.

>> THE WAY EVEN IF YOU LOOK AT THE CURRENT SITE, STADIUM WOULDN'T BE BUILT WHERE THE STADIUM IS NOW?

>> NO.

GOING TO BE RECESSED BACK TOWARDS H201.

>> DON'T WE ALREADY HAVE A HOLE IN THE GROUND APPROPRIATE FOR STADIUM IN.

>> LOOK AT THE STADIUM PLAN, YOU'LL SEE THAT THE HOLE IN THE GROUND IS ACTUALLY GOING TO BE UTILIZED, REPURPOSED AS OPEN AIR AMPITHEATER.

SORT OF LIKE WHAT YOU WOULD SEE DOWN AT THE SHELL OR SOMETHING LIKE THAT.

FACING AWAY FROM THE NEIGHBORHOOD.

SO THAT WAY, NOISE REDUCED IN CONJUNCTION.

BUT GOING BACK TO POINT ABOUT BUILDING SOMEWHERE ELSE, INFRASTRUCTURE IS OR THERE.

RAIL HAS A STATION THERE.

THE FREEWAY IS ALL CONVERGE THERE.

AND SO THERE IS INFRASTRUCTURE IN PLACE.

HOUSING PIECE, WHICH IS BEING DISCUSSED, ANYWHERE FROM FIVE TO 10,000 UNITS, THE CITY TOLD US THAT'S GOING TO TAKE ABOUT 20 YEARS TO PUT IN THE SEWER AND NECESSARY INFRASTRUCTURE TO SUPPORT THAT KIND OF CAPABILITY.

I CAN'T IMAGINE IF WE TOTALLY TEAR OUT ENTIRE STADIUM AND PUT COMPLETELY HOUSING IN THERE.

HOW LONG THAT ABOUT TAKE.

BECAUSE RIGHT NOW, JUST LOOKING AT HALF OF THAT, TAKE ABOUT 20 YEARS TO DO.

>> PHRASE THE QUESTION TO KEEP US ON THIS PARTICULAR POINT.

YOUR FOLKS ORIGINAL ARTICLE THAT YOU PUBLISHED AS I RECALL, SUGGESTED THAT U.H.

HAVE THE STADIUM IN MANOA.

BUT IN OUR CONVERSATIONS WERE YOU TALKING ABOUT WEST OAHU.

COLLEGE OUT THERE.

WHERE DO YOU THINK ALL THE THINGS YOU TALKED ABOUT CIRCUMSTANCES WHERE DO YOU THINK IT SHOULD GO IF NOT HALAWA?

>> LET ME GET TO THE CRAWFORD SITE STUDY.

CRAWFORD SITE STUDY BASED ITS CONCLUSION ON BASICALLY, THE SAME POPULATION PATTERNS THAT WE USE BACK IN 1967, WHEN THEY WERE THE STADIUM WAS BUILT.

IF YOU DO THAT, YOU END UP AT THE SAME PLACE.

DID NOT TALK INTO ACCOUNT THE POPULATION TRENDS IN WEST OAHU.

SEE, WEST OAHU CAMPUS END OF RAIL STATION.

AND THERE'S A LOT OF LAND COULD CONTINUE TO SWAP MEET.

WHICH WAS MAJOR INCOME FOR THE OLD STADIUM.

AS IT HAPPENED, U.H.

TOOK BALL AND THEY DEVELOPED CHING STADIUM.

OKAY, YOU CAN PUT 20,000 SEATS THERE, FINE.

THAT'S OKAY.

>> ANYBODY HE IS WANT TO PITCH IN ON THAT SUBJECT?

GO AHEAD.

>> I THINK THE IDEA OF SOMEHOW ABANDONING HALAWA AND LOOKING AT OTHER PLACES IS SUCH AN UNFRUITFUL DISCUSSION BECAUSE IT ONLY SETS US BACK.

>> DIRECTOR'S COMMENTARY ABOUT ALL THE MONEY AND TIME THAT'S BEEN PUT INTO FIGURE OUT HOW HALAWA SHOULD BE THE ENTERTAINMENT DISTRICT, WE HAVE BUY‑IN FROM AIEA.

BUY‑IN SALT LAKE TO SAY SOMEHOW MOVE IT TO MANOA HAVE THE COMMUNITY EMBRACE IS IT THERE, OR WEST OAHU, ALL OF THAT DUE DILIGENCE MASSAGING OF THE COMMUNITY IS BEHIND US.

>> GOING BACK‑TO‑BACK TO THE DRAWING BOARD.

TALKED ABOUT EARLIER, ALL OF THE COSTS SUNK AND IF WE GO GO DOWN START FROM ZERO AGAIN, SUCH A WASTE OF TIME.

REALLY SHOULD BE DISCUSSING HOW DO WE MAKE THE CURRENT SITE BETTER.

THAT'S FRUITFUL DISCUSSION.

NOT HOW DO WE LOOK AT SOME OTHER PLACES AS A VENUE FOR THIS STADIUM.

>> UNDERSTAND THAT IS JUST NOT U.H.

USING THIS.

SO DID WE BUILD IT AT WEST OAHU, YOU'RE ASKING FOLKS FROM HAWAII KAI TO GO TEND TO BRUNO MARS CONCERT ALL THE WAY IN EWA.

OR IN KAPOLEI.

SO I DON'T THINK EQUITABLE TO THE ENTIRE ISLAND THAT'S CENTRALLY LOCATE THE SO ALL PART FROM ALL PARTS ISLANDS CAN ACCESS IT.

>> LAST WORD ON LOCATION.

>> I WAS GOING TO SAY, I WON'T REPEAT WHAT I SAID.

I WANT TO RESPOND TO SENATOR WAKAI'S COMMENTS ABOUT SOCCER.

SOCCER TEAMS COMING HERE.

THEY MAY HAVE SIGNED SOME KIND OF LETTER OF INTENT.

BUT YOU GUYS, SHOULD LOOK AT THE HISTORY PRO TEAMS HERE.

THEY DON'T COME HERE.

>> YOU KNOW WHY?

BECAUSE OF COST OF LIVING.

BECAUSE OF COST OF TRAVEL AND TERRIBLE PLACE FOR TV.

WANT TO WATCH A U.H.

GAME?

YOU STAY UP 2:00 IN THE MORNING IN NEW YORK.

SO THEY'RE NOT GOING TO COME HERE.

WHEN I WAS IN THE LEGISLATURE, WE TRIED TO CREATE WITH THE HELPER WALLY YONAMINE, A TRAINING STATION.

GIANTS HERE.

IT WAS BUILT AND I DON'T KNOW WHEN WHAT HAPPENED TO IT.

>> RESPECTFULLY DISAGREE WITH YOU BECAUSE AS A KID, YOU REMEMBER WATCHING PRO BOWL WITH MY FATHER AND WATCHING THOSE GAMES EVERY YEAR AND WATCHING THE STARS PLAY HERE.

AND THE REASON WHY THE PRO BOWL IS NOT HERE ANY MORE IS BECAUSE WE DON'T HAVE A FACILITY.

>> PRO‑BOWL IS GONE.

>> YEAH.

THAT'S WHAT I'M SAYING.

WHY THEY'RE NOT HERE ANY MORE.

>> DON'T EXAGGERATE.

PRO BOWL IS NOT HERE BECAUSE ROGER GOODELL DECIDED TO END IT AND GO INTERNATIONAL.

THEY'RE PLAYING IN SPAIN.

GERMANY.

>> WE'RE GOING WAY OFF TRACK NOW.

>> THAT'S WHY THE PRO‑BOWL IS NOT HERE.

>> I UNDERSTAND.

I'VE GOT A BATCH OF, LOOK AT THIS DESK.

A LOT OF QUESTIONS NOW ARE ABOUT COMING IN.

TIMELINES PROCUREMENT, LIKE WHY IS THIS TAKING SO LONG?

WHY BUILD KAKAAKO.

BAFFLING AND INEXCUSABLE.

>> TALKS BEGAN.

YEAR TWO NOT EVEN GOTTEN RFP'S OUT.

ANOTHER ONE SAYS, QUESTION IS NOT WHAT IS UP WITH ALOHA STADIUM.

>> THE WHY DO WE HAVE SUCH THIRD WORLD PROCUREMENT PRACTICES?

PROBABLY FIRST WORLD.

THAT'S PROBLEM.

HAWAII STATE WITH TREMENDOUS SWATH FEDERAL PROCUREMENT ORGANIZATIONS.

REALISTICALLY, WHY IS THIS SO COMPLICATED?

WHY CAN'T WE MAKE A DECISION AND MOVE FORWARD?

I KNOW THAT THE END OF LAST YEAR, WHEN GOVERNOR GREEN WAS ELECTED, WOULD SAY, THIS IS ONE OF MY FIRST PRIORITIES.

>> GET TO THIS RIGHT AWAY.

SO WHAT HAPPENED?

>> AGAIN, ISSUE OR THIS IS PRIOR TO THIS ADMINISTRATION COMING ON BOARD, OBVIOUSLY.

THERE WAS A DISAGREEMENT BETWEEN THE LEGISLATURE AND THE PREVIOUS ADMINISTRATION WITH REGARDS TO THE DIRECTION OF GOING FORWARD.

AND THEN BECAUSE THINGS CHANGED SO MUCH, AND THE STUDY THAT GOVERNOR KEEPS ON ALLUDING TO, THE EXTRA $400 MILLION PRICE TAG WAS OVER THE LIFE OF THE 30 YEAR AGREEMENT.

AND CONTRACT.

FOR THIS.

SO IF YOU LOOK AT THE EVERYTHING THAT THE STATE WOULD PAY OFF, THAT'S ONE THING THAT THE STATE DOESN'T DO VERY WELL.

WE BUILDING IS AND WE DON'T REALLY LOOK AT THE COST OVER ENTIRE LIFETIME.

OF THIS PARTICULAR ASSET.

THAT'S WHAT WE DID.

FOUND THAT WE FELT THAT, IT WAS NECESSARY FOR US TO TAKE LOOK AT IT.

VERY DIFFERENT PROCUREMENT MECHANISM.

IT WAS WHAT THEY CALLED DESIGN/BUILD FINANCE MAINTAIN.

WHERE ESSENTIALLY, STATE WAS ASSUMING ALL OF THE RISK TO OPERATE.

AND TO GENERATE REVENUE.

VERSUS WHERE THE PROPOSAL IS, GO FORWARD IS A DESIGN/BUILD OPERATE AND MAINTAIN.

REALLY PUTTING THE ONUS ON PRIVATE PARTNER TO GENERATE REVENUE FOR FACILITY.

>> I NEED TO HELP FOCUS ON THESE QUESTIONS COMING IN NOW.

COUPLE QUESTIONS FROM THOMAS.

FACEBOOK.

EMAIL.

FOLLOWED UP.

CAN YOU SAY HOW MUCH MORE MONEY IS GOING TO BE COMING FROM THE PRIVATE SIDE TO GIVE US A VISION OF WHAT THAT STADIUM WILL REALLY LOOK LIKE.

>> IS THERE A DOLLAR FIGURE REALISTIC.

>> ORDER OF MAGNITUDE.

STATE IS WILLING TO PUT IN, 350 PLUS 50.

$400 MILLION OF FUNDING AS WELL AS THE LAND.

ASSET.

VALUE TO THAT.

BUT THEN OVER THE COURSE ‑‑ >> WHAT DOES THAT MEAN.

>> VALUE TO PARTNERSHIP.

IF YOU'RE COMING INTO A PARTNERSHIP.

WHAT ARE YOU BRINGING CASH LOCATION?

THAT'S THE STATE'S CONTRIBUTION TO PARTNERSHIP.

WE'RE ASKING A PRIVATE PARTNER TO DO GENERATE REVENUE, MAINTAIN AND OPERATE.

THE STATE IS NO LONGER ON THE HOOK TO EITHER MAINTAIN THIS FACILITY, OPERATE THIS FACILITY, REALLY WILL BE ARRANGEMENT WHERE THE OPERATION AND RISK.

ONE OF THE THINGS IS EVEN ATTRACTING SAY FOR EXAMPLE, EVENT, WHEN GOVERNMENT TRIES TO ATTRACT EVENT OR THE WAY IT WAS BEFORE, ESSENTIALLY WE WERE A PASSIVE PARTICIPANT IN THE PROCESS.

WE WOULD FIND SOMEBODY SOME PROMOTOR WOULD COME AND SAY, BY THE WAY I'M GOING TO BRING THIS PERSON AND WOULD LIKE TO RENT OUT THE ALOHA STADIUM FOR THIS.

IF YOU HAD A PRIVATE PARTNER, THAT PRIVATE PARTNER COULD GO OUT THERE AND DO THE THINGS THAT ARE NECESSARY IN ORDER TO DRIVE THE KIND OF EVENTS AND KIND OF REVENUE GENERATION KIND OF YEARS AND REVENUE‑GENERATION CAPACITY.

>> WHAT IS YOUR EXPECTATION THAT THE PRIVATE DEVELOPER PIECE WILL BRING IN IT THE STADIUM IN TALKING ABOUT BLEACHERS, NO ROOF.

>>BARRY: BONES.

WHAT IS THE REAL BARE BONES.

WHAT IS THE REALISTIC EXPECTATION MORE STADIUM WE GET INVOLVES PRIVATE PARTNER HAS REAL ESTATE RIGHTS.

>> GET SOMETHING WE CAN ALL BE PROUD OF.

$350 MILLION BUYS US BASIC STADIUM.

THINK PRIVATE SECTOR INVOLVEMENT IS IMPORTANT, IS IN ADDITION FOR THE INVESTMENT THEY'RE GOING TO PUT IN THERE, IS THE QUALITY OF THEIR CONSTRUCTION ON THE HOOK FOR 30 YEARS.

NOT GOING TO BUILD THIS THING WITH CARDBOARD, USE GOOD MATERIALS.

>> STEEL.

>> MAYBE NOT STEEL.

CONCRETE.

LOOK AT THE ROMAN COLISEUM THOUSAND OF YEARS OLD.

STILL STANDING TODAY.

MAYBE WE SHOULD TAKE A LESSON FROM THE ROMANS THERE.

THIRDLY, PRIVATE SECTOR EXPECTATIONS AND TIMELINES.

GOVERNMENT WHERE WE BUILD STUFF AS WE SEE WITH RAIL, NOTORIOUS FOR TAKING FOREVER.

PRIVATE SECTOR, DRIVING THIS THING, WE ARE PRETTY MUCH ASSURED ON THIS DAY, STADIUM WILL BE DELIVERED.

TO LEWIS' POINT OR DIRECTOR'S POINT, THE STADIUM ITSELF, COULD BE SEEN AS KIND OF A LOSS LEADER MONEY MAKER REAL ESTATE GO AROUND THE STADIUM.

THAT IS WHERE I THINK IT'S GETTING LOST THAT SOMEHOW, WE THINK THE STANDALONE STADIUM AND $400 MILLION COSTS GOING INTO STADIUM SOMEHOW ARE GOING TO BE BORNE TAXPAYORS.

HOUSING SHOPPING CENTER THEATERS REVENUE GENERATION HAD HELP PAY FOR THE CONSTRUCTION OF STADIUM.

>> COUPLE PEOPLE CAME IN.

EMAIL SAYING, WHAT DO YOU MEAN 20 YEARS TO GET THE SEWER?

I IT'S MORE LIKE 7 OR 8.

WHAT I RECALL.

BUT STILL, IT'S TIME LINE FOR DEVELOPMENT REAL ESTATE AND MONEY COMING IN FROM REAL ESTATE FAR LONGER THAN BUILDING A STADIUM.

HOW DO YOU GET THE MONEY OUT OF FRONT END OF THAT PROPOSAL THAT BUILDS ADDS DOLLARS INTO THE STADIUM?

LEWIS OR SENATE.

HOW DO YOU GET MONEY OUT OF FRONT END OUT OF THESE DEVELOPERS WORKING ON 30 YEAR TIMELINE TO GET REVENUE OUT OF THE PROPERTY?

>> DARYL, IT'S 3 TO 1.

SOME TIME.

HOLDING YOUR OWN.

>> OKAY.

WELL, LET ME GET TO TRY TO GET AN ANSWER TO THAT QUESTION.

TIME LANE FOR THE REAL ESTATE DEVELOPMENT IS LIKE 30 YEARS.

RIGHT?

>> RIGHT.

>> TIMELINE FOR THE STADIUM IS LIKE 3 YEARS.

SO HOW DOES THE MONEY MATCH?

>> REALLY, I MEAN, YOU HAVE TO LOOK OVER THE ENTIRE REVENUE GENERATING CAPABILITY OF THAT ASSET.

YES, WE CAN LOOK AT IT, WELL, IT COSTS THIS MUCH NOW AND THERE'S REVENUE.

I MEAN, DOLLAR NOW IS DOLLAR.

A DOLLAR TEN YEARS FROM NOW IS ONLY WORTHFIFTY CENTS NOW.

PRIVATE PARTNER WHEN THEY DO THE VALUATION ON WHAT THE ENTIRE AMOUNT OF REVENUE GENERATING CAPACITY, SHOULD TAKE INTO ACCOUNT THE ENTIRE AMOUNT OF REVENUE GENERATING CAPACITY THAT THAT ASSET CAN GENERATE.

AND THAT IS WHAT WE WANT TO DO.

WE WANT TO UNLOCK THE FUTURE POTENTIAL OF REVENUE AND ORDER TO BUILD US THE STADIUM THAT WE CAN BUILD THIS YEAR.

>> DOES THAT MEAN THAT'S DEVELOPER WILL HAVE TO TAKE OUT A LOAN TO PAY BUILD THE STADIUM AND THEN PAY THAT OUT OF THEIR REVENUE?

>> NOT A LOAN.

IT'S AN INVESTMENT.

FOR A DEVELOPER, IT'S A DEVELOPER IS INVESTING ON THE RISK THAT THEY ARE GOING TO BE ABLE TO GENERATE REVENUE OFF OF THIS ASSET.

>>Daryl: GOVERNOR, I DO TO INVITE YOU TO JUMP IN AT THIS POINT FOR A WHILE.

YOU'VE SEEN PUBLIC/PRIVATE PARTNERSHIP PROPOSALS COME AND GO.

>> I ONLY KNOW OF ONE.

RAIL.

IT FAILED.

>> ANOTHER ONE OF THINK I IS ALOHA TOWER.

>> RIGHT?

WHERE ALOHA TOWER, THEY BUILT A BIG SHOPPING CENTER.

RETAIL THING AROUND IT.

AND NOW, A COLLEGE CAMPUS.

>> YEAH.

I'M 83 YEARS OLD.

>> I DON'T REMEMBER THAT.

>> YOU WERE THERE.

>> BUT WHAT DOES THE PRIVATE SECTOR WANT TO MAKE IT PROFITABLE?

THESE GUYS ARE IN IT TO MAKE MONEY.

WITH YOU BUILD A HOTEL, WHEN YOU BUILD A HOTEL.

IS A HOTEL IS GOING TO MAKE MONEY?

WE NEED ANOTHER HOTEL WHEN WE HAVE TEN, 11 MILLION TOURISTS COMING IN AGAIN.

HOW DO YOU QUANTIFY THE REVENUE STREAM?

>> IT IS, A LOT OF SCIENCE.

I LOVE THE SCIENCE.

>> RIGHT?

IN MANY WAYS, IT IS INVESTMENT.

RISK.

SO WHEN YOU LOOK AT THE GENERATING CAPABILITIES OF A PARTICULAR ASSET, AND YOU DISCOUNT THAT FOR HOW LONG YOU'RE GOING TO HAVE IT.

SOMETHING THAT IS DONE.

IT WOULD BE THE SAME.

I'M GOING TO PAY $5 MILLION TO BUY THIS BUSINESS RIGHT NOW.

THAT ONLY MAKES $500,000 A YEAR.

WHY ARE YOU GOING TO DO IT?

PAY $5 MILLION FOR IT BECAUSE I'M GOING TO OWN IT FOR 20 YEARS AND IT'S GOING TO MAKE ME THAT MUCH MONEY OVER THE YEARS.

YOU DISCOUNT THAT.

>> IS THE ANSWER TO MY EARLIER QUESTION, DEVELOPER IS GOING TO BE EXPECTED TO CUT YOU A CHECK, FRONT END FOR A COUPLE HUNDRED MILLION DOLLARS, FOR TO BUILD YOU THIS STADIUM THAT YOU'RE LOOKING FOR?

IS THAT WHAT WE'RE EXPECTING.

>> THAT'S WHAT THEY'RE DOING.

CHECK THAT THEY ARE GOING TO CUT IS THE STADIUM THEY'RE GOING TO BUILD FOR US.

>> WHERE IS THE REVENUE COMING FROM.

>> HAVE REGULAR REVENUE FROM THE STADIUM.

WE KNOW THAT.

BEYOND WHAT WE CURRENTLY DO.

PUTTING OFF THE MANAGEMENT AND OPERATING TO AN ORGANIZATION THAT CAN DEFINITELY MAXIMIZE REVENUE.

AND DEVELOPMENT RIGHTS AROUND THERE.

WHETHER IT'S RETAIL, COMMERCIAL, OFFICE, ALL OF THESE DIFFERENT REVENUE GENERATING CAPACITIES, AND STATE WILL ESSENTIALLY BE THE LAND LONER.

WE SHOULD BE LANDOWNER.

WE SHOULD BE ABLE TO EXPECT SOME FORM OF REVENUE.

NOT A LOT PUSH THAT OFF TO THE PRIVATE DEVELOPER.

BUT THE STADIUM AUTHORITY CAN STILL MAKE SOME MONEY OFF OF IT TOO AS THE LANDOWNER.

>> WOULDN'T JUST BE THE STATE.

GENERAL EXCISE TAXES ASSOCIATED WITH PEOPLE ON THE CONDOS THERE.

>> YOU HAVE.

ECONOMIC ACTIVITY.

SALES TAX.

>> PROPERTY TAXES.

REAL PROPERTY TAX GOES TO THE COUNTIES.

>> YEAH.

IF THESE GUYS WANT IT GO TO THE STATE, THEY NEED TO AMEND THE CONSTITUTION.

IT'S IN THE CONSTITUTION.

>> CAN I ASK YOU, I MEAN, LET'S SAY THAT IT IS UNREALISTIC TO MOVE THE LOCATION.

HOW DO YOU THINK THEY SHOULD BUILD IT?

DO YOU THINK, AGREE WITH THE SORT OF HOUSE POSITION WHICH IS JUST PAY THE MONEY OUT OF THE TAXPAYORS OR DO YOU THINK A PUBLIC/PRIVATE PARTNERSHIP MIGHT WORK AT THAT PLACE EVEN UNDER THE BEST CIRCUMSTANCES?

>> I HAVE MY DOUBTS.

I THINK STUDY IS FLAWED.

I MEAN, FACT THAT THEY LEFT THE U.H.

OUT IS SIGN.

I DON'T KNOW HOW THEY'RE GOING TO MAKE MONEY ON THIS THING.

UNLESS HOUSING THAT THEY BUILD IS HOUSING THAT WILL BRING IN PROFITS.

NOW, HOUSING THAT OUR PEOPLE NEED, IS AFFORDABLE HOUSING.

>>Daryl: THAT IS A GOOD SEGUE TO A COUPLE MORE QUESTIONS.

WE'VE GOTTEN ABOUT HOUSING SPECIFICALLY.

ONE IS BARBARA IN KAILUA, HOW CAN YOU TALK ABOUT SPENDING $400 MILLION ON ENTERTAINMENT DISTRICT WHEN WE HAVE A HOUSING PROBLEM?

SHE SAYS, PLAY SPORT AND TAKE CARE OF PEOPLE WHO NEED ROOF OVER THEIR HEAD.

ANOTHER QUESTION CAME IN, WHAT IS THE REALISTIC EXPECTATION OF HOW MUCH HOUSING CAN BE BUILT?

WHERE ARE WE NOW PLANNING, HOW MUCH OF IT WOULD BE HOUSING FOR PEOPLE TO MEET THIS NEED?

>> WE AGREE WITH GOVERNOR.

HOUSING IS A PRESSING SOCIETAL NEED.

WHEN YOU LOOK AT THIS 98 ACRES, IS HOUSING THE BEST YIELD AND RETURN ON INVESTMENT FOR THE PUBLIC?

PROBABLY IN HAWAII IS WE'RE LAND RICH AND CASH POOR.

THIS IS A GOLDEN OPPORTUNITY FOR US TO MONETIZE THESE 98 ACRES.

THOUGHT OF 20,000 JUST FORGET THE STADIUM, 20,000 UNITS OF AFFORDABLE HOUSING THERE.

$6 BILLION MONEY PIT THAT IS GONE.

NOT GOING TO CREATE REVENUE.

>> WAIT A MINUTE.

>> LET ME FINISH PLEASE.

THIS HAS OPPORTUNITIES FOR REVENUE GENERATION.

KEEP IN MIND, NUMBER 2 VISITOR TRACTION IN STATE OF HAWAII IS RIGHT ACROSS THE STREET.

1.8 MILLION PEOPLE GO TO THE ARIZONA MEMORIAL.

IT'S NOT WE'RE GOING TO BUILD IT AND HOPE THE CUSTOMER IS GOING TO COME.

THE CUSTOMER IS RIGHT ACROSS THE STREET.

WE SHOULD BE THINKING ABOUT HOW TO LURE THEM PLUS ALL OF THE US AS LOCALS AND OTHERS, WOULD WANT TO GO AND SPEND MONEY IN THIS ENTERTAINMENT LIVE WORK/PLAY DESTINATION.

HAVING HOUSING THERE WILL NOT LURE ONE PERSON FROM ARIZONA MEMORIAL TO LOOK AT THIS GREAT GOVERNMENT HOUSING PROJECT.

JUST NOT A GOOD UTILIZATION OF THOSE LANDS.

>> I WANT TO GET TO STEVEN.

>> YOU KNOW, PEOPLE WANT TO GO WAIKIKI.

AND FROM WAIKIKI, THEY CAN VISIT PEARL HARBOR, I DOUBT IF HOTEL HERE WOULD ATTRACT PEOPLE WHO ARE THERE JUST TO VISIT PEARL HARBOR.

>>Daryl: I KNOW THAT YOU FOLKS WHO ARE IN THE COMMUNITY AND INVOLVED WITH THIS PLANNING PROCESS, HAVE SEEN A LOT MORE CONCEPTS THERE, LIKE WHAT DO YOU SEE BEING THE ATTRACTIVE PART OF THIS PLAN?

DO YOU THINK THE NEIGHBORHOOD WOULD ACCEPT IF THERE WAS MORE HOUSING BUILT INTO THE PLAN THAN THERE IS NOW?

>> SO THE NEIGHBORHOOD DOES NOT ACCEPT THE FACT THAT THEY WOULD WANT TO PUT 100,000 HOUSING UNITS IN THAT LOCATION.

RIGHT NOW, FOUR OR FIVE THOUSAND.

>> THERE HAS BEEN THAT PROPOSAL HAS BEEN PUT FORTH OUT THERE.

WHAT WE'RE LOOKING AT AND WHAT BEEN BRIEFED TO US IS AROUND 5 TO TEN.

SUSTAINABLE TYPE OF SUPPORT FROM THE COMMUNITY.

COMMUNITY BIGGEST ACTUALLY, ONE OF THE LARGEST ISSUES THAT THEY'VE THIS IS HOTELS THEMSELVES.

HOTELS BECAUSE OF THE TRANSIENT COMMUNITY THAT COMES IN, WHEN YOU HAVE A HOTEL, COMMUNITY WAS REALLY CONCERNED ABOUT LOSE LOSING SOME OF ITS IDENTITY BASE ON THAT.

LIKE SAID, OVER THE YEARS, WE HAVE BEEN WORKING WITH THE STADIUM AUTHORITY.

ADDRESSED SOME THOSE ISSUES.

IF YOU LOOK AT THE CURRENT PLAN NOW, FOR STADIUM, CONVERT THAT PARKING LOT, JUST ASPHALT PARKING LOT, AND GOING TO MAKE IT A WALKABLE LIVABLE GREEN AREA THAT HAS SHOPS, FIRST, SECOND FLOORS, WITH HOUSING ABOVE IT.

SO PEOPLE WILL BE ABLE TO GO LITERALLY FROM THIRD OR FOURTH FLOOR, WHEREVER LIVING IN CONDOS, DOWN AND GO SUPERMARKET AND STORE RIGHT BACK.

WITHOUT HAVING TO GET IN THE CAR.

>>Daryl: GET ME ANOTHER IDEA ANOTHER PLACE IN HAWAII LOOKS LIKE THAT TO YOU.

PROBABLY SAY KAKAAKO MAYBE CLOSEST THING.

>> LOUIS, SORRY.

WHAT YOUR TAKE ON HOW LONG THIS IS GOING TO TAKE IF WE GET RFP OUT.

>> FOR THE STADIUM OR ENTIRE DISTRICT?

>> GIVE US TIMELINE GOING OUT.

>> IF WE WERE TO EXECUTE ON THE PLAN, AND MOVING FORWARD, PUT ALL HANDS ON DECK, ON THIS PARTICULAR EFFORT.

INTENTION WOULD BE FOR STADIUM TO BE READY BY THE TIME FOR THE 2028 FOOTBALL SEASON.

>> I THOUGHT IT WAS 2027.

>> RIGHT WHERE IT STANDS RIGHT NOW, I THINK IT'S MORE REALISTIC TO THINK ABOUT THE 2028.

>> TIMELINE IS ONCE RFP GOES OUT HOWEVER IT LOOKS, FOUR YEARS THAT HAVE, IS WHEN WE CAN EXPECT THE STADIUM.

YEAH, 2027 WAS IDEA IF GOVERNOR GREEN COME JANUARY THIS OF YEAR, SAID, OKAY LET'S PUSH THIS RFP OUT.

THEN THE FOUR‑YEAR TIME PERIOD WOULD START.

NOW WE'RE KIND OF GOING BACK AND FORTH HEMMING AND HAWING, NOT GOING TO GET RFP OUT TILL LATER PERHAPS THIS LATER THIS YEAR, THEN THE FOUR‑YEAR TIME CLOCK STARTS.

>> WHAT IS THE IMPACT ON THE U.H.

FOOTBALL PROGRAM UNDER THAT TIMELINE?

>> I THINK BETTER HOPE THAT'S NCAA GIVES THEM ANOTHER PASS.

BUT THINK AT CERTAIN POINT, NCAA GOING TO GET FATIGUED AND SAY, MAYBE NOT GOING HAPPEN.

U.H.

YOU'RE DONE WITH DIVISION 1 FOOTBALL.

OTHER TRAGEDY IF WE CONTINUE TO DELAY, IS WE'RE SUBJECTING U.H.

TO MORE AND MORE PAIN IN TRYING TO FIGURE OUT HOW THEY KEEP THEIR DIVISION 1 FOOTBALL PROGRAM ALIVE.

IF THEY'RE GONE, ENTIRE U.H.

ATHLETICS PROGRAM IS GONE.

>> RIDICULOUS, BECAUSE THE LONGER IT TAKES TO BUILD A STADIUM, THE MORE RISK THAT THE NCAA WILL SANCTIONED U.H.

>> I'M MISUNDERSTANDING YOU.

I THOUGHT THAT'S HE JUST SAID.

GET MOVING ON IT TO SAVE THE U.H.

FOOTBALL PROGRAM.

IT'S GOING TO TAKE A LONG TIME BUILD THE STADIUM IN THE WAY THEY WANT TO DO IT.

>> YOU'RE SUGGESTING IF THEY JUST WENT AND FOCUSED BACK ON MANOA, GET A STADIUM THAT WILL BEAT THE NCAA.

>> I THINK THAT'S WHAT GOING TO HAPPEN.

IF I WAS ADVISING THE ON THE BOARD OF REGENTS, I WOULD TELL THOSE GUYS, TO TELL FOOTBALL TEAM, NOT GOING TO PLAY IN ALOHA STADIUM UNLESS THEY GIVE YOU GOOD DEAL.

U.H.

HAS BEEN SUFFERING ALL THESE YEARS.

THEY DON'T GET A CUT OF PARKING.

CONCESSIONS AND PAY RENT.

>> CIRCLES AROUND BACK TO THE RFP.

MOVE ON THE RFP, DON'T HAVE TO WORRY ABOUT THAT.

I HAVE TO MAKE SURE WE STAY.

>> ON THE ISSUE OF THE UNIVERSITY, AND THE UNIVERSITY TEAM, SO IT'S A TEMPORARY FIX.

CHING FIELD RIGHT NOW IS TEMPORARY FIX.

DO NOT HAVE A D1 TEAM WITH 9,000 SEAT STADIUM.

BUT WHAT THE AT LEAST AND U.H.

PROBABLY THE BEST PEOPLE TO ANSWER THIS QUESTION, BUT WHAT WE HAVE BEEN TOLD IS THAT AS LONG AS THERE'S A COMMITMENT BY THE STATE TO BUILD A FACILITY, THAT WILL BE AT A MINIMAL OF 25,000.

THAT THEY WOULD STILL ABLE TO MAINTAIN THEIR D1 STATUS.

>> U.H.

GOING TO INCREASE CHING FIELD BY 6,000.

THEY WILL MEET THE DIVISION 1 REQUIREMENT OF 15,000.

BUT I WANT TO RESPOND TO SENATOR WAKAI'S DEPICTION BUILDING HOUSING NOT GENERATING REVENUE.

BUILD A HOUSE, YOU NEED CARPENTER, PLUMBER ELECTRICIANS A LOT OF PEOPLE AND YOU CREATE JOBS.

THAT'S WHAT BUILDING HOUSING DOES.

AND NO ONE SAYING YOU'RE GOING TO BUILD A SLUM THERE.

I MEAN, GET IMPRESSION YOU GUYS FEEL IT'S GOING TO BE PUBLIC HOUSING THAT TYPE YOU SEE IN KALIHI FOR EXAMPLE.

WHERE I GREW UP.

NOBODY IS THINKING ABOUT THAT.

THING ABOUT THE 98 ACRES AND WHAT MADE IT SO APPEALING TO WAIHEE, ABERCROMBIE AND I, THE OWNED BY THE STATE.

WHEN THE STATE OWNS LAND, IT CAN REALLY DEPRECIATE DISCOUNT THE COST OF BUILDING ANYTHING ON THE LAND BECAUSE THE STATE DOESN'T HAVE TO MAKE A PROFIT.

NOW, WAIT.

WHEN YOU.

>> HE'S THE GOVERNOR.

3‑1.

WHEN LISTENING TO SENATOR WAKAI THIS DESIGN/BUILD.

THE STATE DOESN'T BUILD ANYTHING.

THE STATE IS ALWAYS USED PRIVATE SECTOR TO BUILD WHETHER IT'S STADIUM, SCHOOL, YOU KNOW, OR ANYTHING ELSE.

THE PRIVATE SECTOR, I AGREE WITH YOU, THEY CAN DO QUALITY WORK.

THE STATE DOESN'T BUILD ANYTHING.

THAT'S THE IMPRESSION I GOT FROM YOU.

>> IN YOUR SCENARIO WAY THINGS DONE IN THE PAST.

ALWAYS THE TAXPAYORS ARE 100% RESPONSIBLE FOR THE COST.

WHY NOT EMBRACE NEW PARADIGM WHERE WE BRING IN PRIVATE SECTOR EXPERTISE AND PRIVATE SECTOR MONEY.

IN COLLABORATION WITH TAXPAYORS FUNDS.

>> I HAVE SOME TREPIDATION BECAUSE AS I STATED, I THINK THE STUDIES ARE FLAWED.

I DON'T KNOW HOW YOU'RE GOING TO, I DON'T KNOW AGREE WITH YOU HERE.

YOU CAN QUANTIFY REVENUE COMES IN BESIDE POINTED OUT, THE STATE DOESN'T GET THE REAL PROPERTY TAX.

>> I WANT TO ASK LEWIS.

I KIND OF WANTED, ONLY GOT ABOUT FIVE MINUTES LEFT.

BEEN REALLY FAST HOUR.

WHAT THE GOVERNOR'S VISION NOW BECAUSE BEFORE, IT WAS TWO DEVELOPERS.

ONE DEVELOPING A STADIUM.

ONE DEVELOPING A REAL ESTATE.

THEN THERE WAS A RELATIONSHIP FINANCIALLY BETWEEN THE TWO ENTITIES.

HE WANTS TO HAVE ONLY ONE RFP, ONE VENDOR.

IS THAT STILL WHAT HE'S LOOKING AT, IT WOULD BE, WOULD THE ENTIRE PROPERTY BE DEVELOPABLE BY THAT VENDOR, OR WHAT IS THE IMAGE NOW OF HOW IT WOULD WORK.

>> I THINK THAT'S A LITTLE BIT OF, NOT A COMPLETE PICTURE OF WHAT ARRANGEMENT WOULD BE LIKE.

>> PARTNERSHIP.

YES, YOU COULD HAVE ONE LIKE ONE RFP.

YOU CAN HAVE MULTIPLE PEOPLE AND MULTIPLE PARTNERS IN RFP.

IN MANY WAYS, YOU KNOW, AT LEAST WHAT I'VE SEEN, AND SAY FOR EXAMPLE, OTHER MAJOR DEVELOPMENTS THAT HAVE HAPPENED USUALLY A CONSORTIUM.

EVERYBODY BRING THEIR EXPERTIS.

GROUP MORE EXPERTISE IN HOUSE.

>> EXPERTISE IN COMMERCIAL.

STADIUMS.

HAVE THAT.

SO I THINK REAL THING THE REAL LIKE GEM OF THIS WHOLE THING IS THAT, VAST MAJORITY OF THE PEOPLE THAT LIVE ON THE WEST SIDE OF OAHU COMMUTE TO THE URBAN CORE.

GO TO WORK.

IF YOU HAVE THE ABILITY TO CREATE 100 ACRES OF ECONOMIC ACTIVITY, OF TRANSACTIONAL ECONOMY, GOING ON, YOU CREATE JOBS IN THAT PARTICULAR AREA.

THE ONLY JOBS THAT ARE REALLY AT THAT POINT IN TIME RIGHT NOW, IS BIG ONE, IS PEARL HARBOR.

THEN YOU HAVE THE STADIUM.

WHICH REALLY DOESN'T HAVE A LOT OF ACTIVITY OUTSIDE EVENTS.

BRING BACK CASTLE PARK.

>> TAKE A RIDE OUT TO KAPOLEI.

HOW THE CITY IS EXPANDING.

>> CREATING JOBS, DOING IT OVER THERE.

>> I AGREE.

I THINK YOU COULD CREATE JOBS ALONG URBAN CORE.

I MEAN, THAT TRANSIT‑ORIENTED DEVELOPMENT IF WE WANT TO CONTINUE TO LUMP PEOPLE IN THE WEST SIDE OF OAHU, WHICH HAS BEEN A PROBLEM.

THAT HAS CREATED A SIGNIFICANT AMOUNT OF CONGESTION, OVER DECADES OF DEVELOPMENT, ON THE WEST SIDE OF OAHU, IT'S BECAUSE YOU'RE LUMPING A WHOLE BUNCH OF PEOPLE IN A PARTICULAR AREA.

I NEED TO STOP AND GO TO A NEW QUESTION.

WE'VE ONLY GOT A COUPLE MINUTES TO ANSWER.

SENATOR WAKAI, WHAT IS THE POLITICAL CLIMATE NOW BETWEEN LEGISLATURE AND THE STATE SENATE AND STATE HOUSE, IN TERMS OF COMING TOGETHER ON THIS?

I KNOW THE GOVERNOR SAYS, HE WANTS CONSENSUS.

IS HE GOING TO GET A CONSENSUS OUT OF THE LEGISLATURE IN THE NEXT TWO WEEKS OF LEGISLATURE.

>> I'M HOPEFUL.

WHAT YOU'RE SEEING IS ADMINISTRATION AND SENATE BOTH EMBRACED IDEA OF PUBLIC/PRIVATE PARTNERSHIP.

HOUSE STILL LIKES THE DESIGN/BUILD VIEWS.

I'M TOLD THAT REPRESENTATIVE YAMASHITA IS SLOWLY WARMING UP TO THE IDEA OF PPP.

WANT TO TOUCH ON ‑‑ I'M ACTUALLY OUT OF TIME, I BELIEVE.

NO.

HOW MUCH TIME DO I HAVE?

ONE WHOLE MINUTE.

DOUBLE CHECKING.

GIVE YOUR THOUGHT AND THEN I'M GOING TO GIVE WITH GOVERNOR ONE MORE CHANCE.

>> GOVERNOR TALKED ABOUT HOUSING, CREATING JOBS.

CONSTRUCTION JOBS FOR SHORT PERIOD OF TIME.

AFTER THAT, THE JOB IS WHAT, A SECURITY GUARD, LANDSCAPER.

>> LAW IS MADE THAT POINT LAST WORD GOVERNOR.

>> 30 SECONDS.

>> >> SOMEBODY MADE THE POINT ABOUT HOUSING TO CREATE HOUSING GOING TO TAKE 20, 30 YEARS.

WHEN THE JOBS ARE GOING TO GO.

AS YOU BUILD, MORE HOUSES CREATE JOBS.

>> ONGOING PROCESS.

WHAT ARE YOU TALKING ABOUT?

LONGTERM JOB IN MANAGING A AFFORDABLE HOUSING UNIT?

SECURITY GUARD AND LANDSCAPER.

THAT'S NOT >>>FOR PEOPLE TO LIVE RIGHT ABOVE WHERE THEY'RE GOING TO WORK.

ONLY HAVE TO DRIVE A CAR.

>> CAN GO DOWNSTAIRS AND WORK AT THAT FACILITY.

>> I WANT TO ACTUALLY KIND OF JUST GET THE LAST LITTLE WORD FROM LEWIS.

WE JUST HEARD 2028.

HOW SOON IS THIS VISION GOING TO BE READY?

>> QUICKLY ANSWER.

>> INTENTION IS TO REALLY GET RFP OUT ON THE STREET BY END OF THIS YEAR.

>> END OF THIS YEAR.

OKAY.

SLIPPING ALONG.

OKAY.

MAHALO TO YOU FOR JOINING US TONIGHT AND WE THANK OUR GUESTS – SENATOR GLENN WAKAI AND STEPHEN WOOD LUIS SALAVERIA AND FORMER GOVERNOR BEN CAYETANO.

NEXT WEEK, INSIGHTS WILL BE TAKING A BREAK.

INSTEAD, PLEASE JOIN US FOR KAKOU: HAWAII’S TOWN HALL.

IN THE WAKE OF A CRASH THAT CLAIMED THE LIFE OF A MCKINLEY HIGH SCHOOL STUDENT, WE’RE ASKING: HOW DO WE KEEP HABITUAL OFFENDERS OFF OUR ROADS?

PLEASE JOIN US THEN.

I’M DARYL HUFF FOR INSIGHTS ON PBS HAWAI`I.

ALOHA!