Governor Jash Green is planning to streamline the Aloha Stadium redevelopment project.
The main content is to make it easier to distinguish the roles of private companies and government.
In other words, instead of the existing method in which private companies oversee design, construction, maintenance, and management, and the government operates, the route is set in the direction of entrusting the operation to private companies.
Project costs are also planned to be fully or mostly paid by the state government.
State Budget and Finance Director Luis Salaveria explained that there has been a change in perception that private companies can be more efficient in construction and maintenance as well as operations than state governments.
According to an analysis released on February 16 by PFM Financial Advisors, a New York-based financial advisory firm, maintenance, management, and operating costs after the renovation of Aloha Stadium are expected to cost about $1.49 billion over 30 years.
However, if the work is done jointly with a private company, the cost is about 1.03 billion dollars, and a cost savings of 460 million dollars can be expected.
The size of the new Aloha Stadium has been adjusted from 50,000 seats to about 35,000 seats.
Salaveria explained that approximately 73 acres of state land surrounding the stadium will be allocated to private companies to develop restaurants, retail, housing, hotels, parking lots and other facilities of national interest.
Revenues from the new stadium and surrounding facilities are said to be deposited into the state’s general fund.
Director Salaveria added that public-private cooperation (P3) will be continued to expedite the redevelopment of the Aloha Stadium, which has been delayed, and that it is a realistic plan to accompany private companies.
Meanwhile, it is known that Governor Green’s business simplification plan has not yet been formally introduced to the stadium management board. Therefore, open tender proposals targeting private companies have not yet been prepared.
Director Salaveria replied that no specific schedule has been set at this time.
It is important to remember that delays in bidding and development increase costs, said Chris Kinimaka, director of the State Accountability Office (DAGS).
He invested about $25 million in preliminary work alone, including land use approval, environmental assessment and planning, feasibility studies, and selection of subcontractors.
However, the refurbishment plan has been delayed several times due to complex circumstances, such as going through difficulties in preparing the bill.
In September of last year, former governor David Ige completely stopped the redevelopment plan that was in progress at the time.
If Governor Greene’s new proposal goes ahead, the private company contract is targeted for early 2024 and the opening of the new stadium in 2027.