The state Department of Transportation Harbors Division is seeking to acquire almost 10 acres of privately owned land on Kalanianaole Street near the entrance to the Port of Hilo.
That’s according to a Sept. 23 letter from Bill Kucharski, a project manager for Honolulu consultant Bowers + Kubota.
According to the letter, which said it’s part of a “pre-consultation for an environmental assessment,” the land is divided in five parcels zoned for industrial use, with three parcels on the Hamakua side of the harbor entrance and two on the Keauhaka side of the entrance.
“The purpose of this acquisition is to improve (Harbors Division’s) internal operational efficiency and address access and traffic control issues on roadways adjacent to Hilo Harbor,” the letter states.
The project will create “new harbor entry points and internal stacking and merge lanes within the harbor boundaries for cargo trucks that enter/exit the project site,” the letter said, which will result in “an unobstructed traffic lane going both directions along Kalanianaole Street between Kuhio and Kahana streets” and more off-street waiting space for Young Brothers, Matson and Pasha trucks and reduce traffic congestion around the harbor.
Kucharski told the Tribune-Herald last week the stacking lanes would assure the trucks of the three cargo shippers would be “off the street during the morning and afternoon rush hours for the schools.”
“That’s a big issue for Harbors,” Kucharski said. “They understand that their operations make it very difficult. There are at least three schools in Keaukaha — and trying to get the kids to school and back when all the trucks are trying to go in or come out is very difficult.”
Area schools include Keaukaha Elementary School, Ka Umeke Kaeo Public Charter School and Kamehameha Schools Keaukaha Preschool.
Sparks and Boschetti LLC owns the two parcels on the Keaukaha side of the harbor entrance, including the largest parcel, 5.55 acres, and a smaller parcel of 0.74 acres.
The only listed member of Sparks and Boschetti on the state Department of Commerce and Consumer Affairs website is Giampaolo “Paul” Boschetti, a San Francisco-based real estate investor with numerous holdings in Hawaii, including the Tribune-Herald building. Sparks and Boschetti’s agent is listed as Big Island Homes and Land Co. Ltd.
The combined market value of the two land parcels, as assessed by the county’s Property Tax Division, is a total $2,259,300. Assessed combined value of the two parcels including buildings is slightly more than $9.4 million.
The larger parcel abuts both Kalanianaole Street and the harbor entrance across from Silva Street.
The other three parcels, which are almost identical in size, also border Kalanianaole Street, but are a few hundred feet on the downtown Hilo side of the harbor entrance.
Two of the parcels are owned by 595K LLC and are each 1.03 acres. Greg Gadd, the president of Big Island Homes and Land, is listed as the only member, manager and agent of the company on the DCCA website.
The combined market value of the two parcels is a total $1,194,840. Assessed combined value of the two parcels including buildings is $3,583,300.
The third parcel, 1.02 acres, is owned by Airgas Gaspro Inc. According to the DCCA, Airgas Gaspro Inc. has been merged into a entity called Airgas USA, based in suburban Philadelphia. Airgas USA is incorporated in Delaware, and Marcelo Fioranelli is the CEO, according to Bloomberg.
The market value of the land alone is $593,900. Assessed value of the land and buildings combined is $1,655,900.
“It should be noted that while the owners of the subject properties have been given notice of the state’s interest to acquire their properties, no formal negotiations or discussions related to purchase terms or conditions have been initiated at this time,” DOT spokesman Jai Cunningham said in an email Monday, in response to a Tribune-Herald query about the project. “Consequently, it would be premature to speculate on potential valuations of the parcels at this time.”
Cunningham also said that traffic studies are being conducted “to help the state and the surrounding community understand what, if any impacts these operations may have on the surrounding community. As is required by statute and in keeping with best practices, public meetings will be held to share the plans being developed by HDOT Harbors and to solicit public comment.”
Email John Burnett at jburnett@hawaiitribune-herald.com.