LIHUE — Plans are still in motion to start construction later this year on the Puhi shopping center anchored by Safeway.
Approved by the Kaua‘i Planning Commission back in 2008, the Hokulei Village complex ran into a stumbling block during the recession.
“Safeway feels confident that the issues will be resolved, and that we will open in 2014,” said Jan TenBruggencate, who provides public relations for Safeway’s affiliate, Property Development Centers LLC.
Despite waiting for the economy to come back to the point where businesses can get financing, TenBruggencate said the project is pushing forward.
“Safeway hopes to refine its timelines in early 2013 and will be letting the public know as more certainty emerges,” he said.
Safeway originally announced plans in 2008 to develop the site at the corner of Kaumuali‘i Highway and Nuhou Street, across from the YMCA. The project was to be finished in 2010, but the recession slowly created a number of setbacks, including the widening of Kaumuali‘i Highway.
In June 2010, Property Development Centers LLC received approval from the Kaua‘i Planning Commission to break the development of the 22-acre Hokulei Village into two phases.
According to an article at the time in The Garden Island, an attorney for Safeway noted that while the supermarket was having difficulty filling phase II, they hoped that with the construction of phase I they would generate interest to secure tenants in phase II.
Phase I is scheduled to include a 57,514-square-foot Safeway supermarket, another anchor store measuring 14,820 square feet, four restaurants, two office complexes, a bank and a gas station.
Phase II of the project will features 89,000 square feet of retail space and is scheduled to have two major retail shops, measuring 41,104 square feet and 29,948 square feet, respectively, plus a smaller store and three additional restaurants.
While the project was scheduled to get under way at that point, businesses found it difficult to secure funding for new construction, and the project timeline was delayed.
In April 2012, the developer announced plans to start construction by the end of the year and that tenant leases were being finalized.
Safeway also informed Grove Farm that it was planning to exercise an option to develop only the first phase of Hokulei Village.
The decision has led to some problems, as a lawsuit was filed in federal court in October 2012. The lawsuit, according to an article in the Honolulu Star-Advertiser, alleges Grove Farm asked for Safeway to revise its Phase I plan to be independent of Phase II, rather than the original plan of integrating the property. In addition, Safeway is claiming that Grove Farm is inhibiting the retailer from making required road improvements and won’t allow utility connections through the Phase II area as well as curtailing parking rights.
According to the article, Safeway is asking the court to force Grove Farm’s cooperation of the full development or void the purchase of the parcel of land and award the supermarket the purchase price plus damages.
In the end, Lihu‘e is left still waiting for a second supermarket to open along with increased retail and restaurant opportunities.
