The state by the end of next year could purchase a little over nine acres of land on Kalanianaole Street to expand the entrance to Hilo Harbor.
The state Department of Transportation’s final environmental assessment for its Hilo Harbor land acquisition and expansion plan was published Wednesday, detailing the improvements to be made to the area — and the businesses likely to be impacted by them.
According to the EA, the acquisition of about 9.3 acres of land contiguous to the harbor would help improve traffic flow along Kalanianaole Street, where cargo and cruise ship traffic often conflicts with peak residential and school traffic each day.
The additional space would let DOT build turn lanes for cargo trucks to enter and exit the harbor without interfering with normal traffic.
The additional property also would be used to create staging areas for buses and other vehicles to pick up cruise ship passengers off of Kalanianaole Street, while also providing additional shipping yard space for cargo operations.
The parcels being targeted by the project are a trio of one-acre lots on the downtown Hilo side of the harbor entrance, and another two parcels on the Keaukaha side measuring 0.74 acres and 5.55 acres.
Two of the Hilo-side parcels are owned by 595K LLC, and both Keaukaha-side parcels are owned by Sparks and Boschetti LLC. The third Hilo-side parcel is owned by Airgas Gaspro Inc., which operates a business onsite.
The EA estimates the process to acquire the properties could be completed “within about two years or by the end of 2025,” although the EA is already a year behind its own estimated completion date.
The assessment also estimates the project’s total cost would be about $62 million, about $15-17 million of which would be spent on the acquisitions themselves. Those values were determined based on 2023 assessed market values, and would be paid using special state funds allocated to the DOT’s Harbors Division.
In any case, after that acquisition, DOT would negotiate with existing businesses to either remain on the properties until their leases expire or negotiate the termination of their leases with the state.
“As a result, construction of the project, or portions of it, may need to wait until the leases of existing businesses expire, which could add more years to the schedule,” the assessment states.
That means actual construction of the harbor entrance improvements is unlikely to begin until at least 2029. Construction is estimated to take about two years to finish.
The EA lists about 15 businesses currently operating on the five parcels, including the Zion’s House of Praise Holiness Church, the Ocean Front Kitchen Chinese Restaurant, Maikai Auto Body and Paint LLC, Hilo Auto Sales and Rentals, Conen’s Freight Transportation, the Hoppa-On Hoppa-Off Bus, and more.
Jay Trombley, co-owner of the Hoppa-On Hoppa-Off, said the DOT has not reached out to any tenants about its plans, nor has the property manager told them about any dealings with the state.
“It’s something we’ve heard rumors about, and we’ve been dreading it,” Trombley said.
Trombley said he had doubts about the short-term future of the property several years ago when his lease was set to expire. Although he ultimately decided to renew, he said the property owner agreed to a short three-year extension, which expires next year.
“After that, I don’t know what we’re doing,” Trombley said.
James Gorospe, owner of Maikai Auto Body and Paint, said he was “frustrated” when he had heard about the state’s plans earlier this year, but said he still doesn’t know what he will do with his business if those plans go forward.
Trombley said neighboring business Conen’s Freight is looking to purchase its own property in the area in order to continue operating, but added that Hoppa-On “doesn’t have that kind of money.” While he said he is considering relocating his business to a site near the Wailoa River State Recreation Area, that likely would necessitate big changes to its services.
“Our buses are too big to just move somewhere else and store them,” Trombley said. “We’d probably need to downsize or do something different. … We’d have to offer less.”
With the EA completed — with a finding of no significant environmental impact — DOT is free to pursue various permits from Hawaii County and other state agencies, and to begin the process of acquiring the properties.
“I just think it would sure be a shame for all us businesses here if this goes through,” Trombley said.
Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.
