KAILUA-KONA — The physical aesthetic of Kona’s economy is changing as construction begins on a new shopping center, big names in retail switch locations, and some mainstay storefronts appear destined for vacancy while others may soon bustle again with new commerce.
Safeway will move a few blocks makai down Henry Street to anchor the new Niumalu Marketplace at some point during the first half of 2020, leaving questions as to what business will assume its place at the Kona Crossroads Shopping Center where Safeway has done business for more than two decades.
Crossroads includes several restaurants and retail shops built around the central draw of the grocery store.
Cliff Ogata, of Evolution West Management Services, which manages the current Safeway storefront, said the logistics of the company’s agreement with Safeway make answering that question impossible — and even asking it premature.
“The reality is we don’t have control over the space as of yet, so there’s nothing we can do,” Ogata said. “Safeway still has a valid lease for many years.”
Ogata declined to provide direct information on the length of Safeway’s property lease with Evolution West.
He added that while talks between the two sides have commenced, any decisions on the lease and a replacement tenant likely remain years away.
There are several possibilities for transitioning the storefront but neither side has approached possible renters or vice versa, Ogata said.
Evolution West will continue to do business with Safeway on other properties. Because of that, Ogata said he expects the two sides will work together successfully to find a mutually beneficial solution.
“We anticipate an amicable, win-win situation,” he said.
While Crossroads contemplates what happens when Safeway departs, the rumblings of retail may soon return to the old Sports Authority, a long-vacant storefront located in Kona Commons.
Management at Kona Commons declined to provide specifics but said the center is involved in promising talks with several retailers interested in the storefront, which has been utilized solely for community events and activities since it closed its doors almost two years ago.
“Kona Commons is in discussions with multiple local and national users to take over the former Sports Authority space, but we can not reveal more at this time,” management said.
The Kmart in Kona, located Kamakaeha Avenue, announced officially in May its plans to shutter the store in early August. There are no reports of prospective tenants interested in taking over the space at this time.
The K-Mart site would be a very good site for residential condominium complex. Great views; replace the existing building with a community park that will be needed up there in the next decade anyway. the condo units would overlook the expected commercial development laying between the K-Mart site and Queen K. highway below and still have coastline views, without the close-up noise of Queen K. highway traffic. the K-Mart operation failed because the location was out-of-sight, out-of-mind and relatively inconvenient. Costco can draw in poor locations, like its current one in Kaloko, and Home Depot perhaps, but regular retailers can’t.
The layout of the new Niumalu retail/restaurant complex next to Lanihau Center points in a better direction for retail layout – putting all the operations in a ring around a common parking lot. What they’re missing is drive-thru pick-ups for the new Safeway; perhaps someday they add a refrigerated and staffed pick-up kiosk with a customer loading zone in front, so families can spread out to shop and eat on the same trip.
One step better retail on the lower level and condos on the top. Mix it up make things more walk-able.
TOTALLY agree! BUT the site has to have the locational “demand” for the ground level commercial to succeed. Siting is everything for successful mixed use beyond mom and pop scale operations (as I see it, anyway).
Yeah, just what Kona needs…more retail and shopping. That will bring hundreds of minimum wage low IQ jobs to the area. I wonder what politician and planning department grifter is getting paid off for this development. Meanwhile taxes go up and up and up and they will approve the .5% GET increase in June…wait and see. Remember it’s for our own good to let the developers and shiftless grifters in the county bureaucracy and planning department continue to line their pockets with graft from the owners of short term rentals and mega mansions in the resort areas!
There is nothing wrong with Safeway right where it is . If it’s not broke , don’t fix it .