HONOLULU (AP) — The state is pulling its contract with the developer of the planned Waikiki Landing for nonpayment of more than $500,000 and a $1 million performance bond.
The Department of Land and Natural Resources’ Division of Boating and Ocean Recreation (DOBOR) confirmed Tuesday that its lease with Honey Bee USA Inc. will be terminated Nov. 15. The division will begin the process of securing a new development proposal for the Waikiki property at the Ala Wai Small Boat Harbor, reported The Honolulu Star-Advertiser (http://bit.ly/1HwVge5).
“DOBOR believes it has been extremely patient and accommodating to Honey Bee, but the prudent course of action is to terminate the lease. We can then begin the process of seeking a new development proposal for this prime Waikiki property,” said Ed Underwood, DOBOR administrator.
The Board of Land and Natural Resources voted Sept. 25 to terminate the lease in November if the developer failed to come up with the necessary funds. That meeting marked the third time that the division’s staff had come before the board to recommend severing ties with the developer.
The state issued Honey Bee a 65-year lease in 2014. The project, which included wedding chapels, restaurants, a boat-repair facility and fuel dock, was expected to be complete this December.
Honey Bee couldn’t be reached for comment. Consultant Dale Rak told the Star-Advertiser in October that the company’s latest funder Utah-based ICON Commercial Lending Inc. had struggled getting the funds because the Waikiki Landing project was to be funded along with several other projects at the time.
DNLR spokesman Dan Dennison said the state will begin looking at other potential developers for the site.
“They will try to find someone else to come in and develop the property. The whole process starts from scratch,” Dennison said. “They will have to develop a new request for proposals, which will take some time.”