In a pivotal meeting held by the Hawaiʻi Community Development Authority (HCDA), discussions centered on the acquisition of Block P3, a key property in Kakaako that includes the Jack In The Box and the former Gallagher Building. The board reviewed an appraisal that valued the property significantly higher than the initial estimate of $8 million, ultimately agreeing on a purchase price of $12.125 million. This amount will be paid not in cash, but through the transfer of 63,000 square feet of floor area from the HCDA's floor area bank, a strategy designed to facilitate the development of affordable housing.

The acquisition aligns with the HCDA's strategic plan approved in June, which emphasizes innovative methods to increase affordable housing in the area. The Block P3 site is particularly advantageous due to its proximity to government offices and a future rail station, making it an ideal candidate for a pilot program aimed at developing leasehold housing.

Executive Director Nakamoto highlighted the importance of this transaction, noting that the use of floor area as a form of currency allows the HCDA to pursue its housing goals with minimal cash outlay. The board also discussed the implications of this arrangement for Howard Hughes, the developer involved, ensuring that any future projects utilizing the acquired floor area would still adhere to existing affordable housing requirements.

As the meeting progressed, board members raised questions about the origins of the floor area in the bank and its potential expiration. Officials clarified that the floor area remains valid as long as it is not utilized, and its value may be adjusted in the future based on market conditions.

With the board poised to finalize the acquisition and development agreement, the HCDA is taking significant steps toward addressing the pressing need for affordable housing in Kakaako, setting a precedent for future projects in the region. The meeting concluded with an invitation for public testimony, signaling the authority's commitment to transparency and community engagement as they move forward with these ambitious plans.