Feb 13, 2014, 5:38am HST
Duane Shimogawa Reporter- Pacific Business News

The Hawaii Community Development Authority is considering extending for one more year its negotiations with a Minnesota developer over a planned mixed-use affordable-housing project in Kakaako.

The state agency, which is charged with overseeing the redevelopment of the Honolulu neighborhood, plans to take up the issue at a special meeting Feb. 19.

Last June, the HCDA extended the negotiations period with Artspace for six months while it went through a low-income tax credit application process for a planned $40 million, 80-unit affordable rental housing complex at 1025 Waimanu St., between a Lexus auto service center and the Kakaako Business Center.

At that time, HCDA Executive Director Anthony Ching told PBN that he expected the developer of the 30,000-square-foot project to be able to move forward with it by the end of 2013.

Ching said the land, which is currently a parking lot titled to the HCDA, was bought from KC Rainbow Development, the developers of the Pacifica condominium high-rise on Kapiolani Boulevard. The Hawaii Housing Finance & Development Corp. is working with Artspace on the low-income tax credit application.

The rental project would target people making between 50 percent and 60 percent of area median income, meaning that a family of four making $50,000 a year or less would qualify, Ching said.

Another important criteria is that a tenant would have to be involved in some type of creative or performing arts, and an in-house committee would be in charge of making selections.

Artspace runs approximately 30 affordable arts facilities in 13 states, representing a $500 million investment in the nation’s arts infrastructure, its website says.

Ching said Artspace is working with the Pai Foundation, a local nonprofit, on the project.