The developer behind two large-scale housing projects on Oahu wants to build a 125-unit apartment complex in place of a six-story hotel proposed in the heart of Wailuku town.

Lokahi Global Corporation’s proposal envisions a four-story housing building and a four-story parking structure on a piece of property near the corner of Main and Market streets. The complex would offer units with one and two bedrooms as well as a two-bedroom-and-loft option. Sixty percent would be affordable, while the other 40 percent would be sold at market rate, President and CEO Timothy Yi said Monday evening.

Yi said he first heard about the property when a Maui landowner asked if he could do an affordable housing project on farmland in Waikapu. Yi, who developed the 513-unit The Central Ala Moana complex and the 485-unit Kapiolani Residence on Oahu, said he asked to meet with Mayor Michael Victorino to discuss a possible public-private partnership. Victorino told him about a property in Wailuku town where a proposed hotel project was on hold after running into community opposition.

In 2019, property owners and Maui residents Jonathan Starr and Helen Nielsen unveiled plans for a six-story, 156-room “kamaaina business hotel,” a midpriced venue under the branding of the Hilton Garden Inn that would be geared toward local families and guests attending events in Central Maui.

The project, however, ran into concerns over its size. Zoning for the area allows a limit of four stories, and the Maui Redevelopment Agency was in the process of mulling an increase to six stories when two community groups, spurred by opposition to the hotel, filed a lawsuit in 2020 challenging the agency’s legal authority.

The agency put its decisions on hold while the legal issues were sorted out. In the meantime, Starr and Nielsen paused the hotel plans, too.

Then, last year, Yi approached them about potentially building a housing project on their land. Starr said he was impressed by Yi’s projects and how quickly they’d sold out. Over the years, Starr said he’d tried to put workforce housing on the property but that he’d been unable to find a developer to make it work.

“So many people need to be in Wailuku to work, it would be great if they could have the option of living in their town and not have to work three jobs to be able to make ends meet,” Starr said.

And while “we haven’t stopped with the prospective plans for the hotel or other projects” just yet, he said he’d welcome the idea of a housing project.

“You know, whatever works, but frankly, I’m a cheerleader for this project. I’d love to see it happen,” he said.

“If it’s going to go toward housing, it won’t be a hotel,” he added. “If housing doesn’t happen, then maybe it will be a hotel, or maybe it will be something else.”

Victorino also voiced support for the project.

“I wholeheartedly support this plan because it’s exactly the type of housing that young professionals and working couples are asking for,” he said in a news release Monday evening. “It supports a car-free lifestyle for Central Maui workers since a walkable Wailuku and its proximity to the Kaahumanu Avenue Community Corridor can eliminate the need for a car, including both financial and environmental costs.”

Maui County Council Chairperson Alice Lee, who holds the Wailuku-Waihee-Waikapu residency seat, said she hadn’t heard many details about the proposal yet but felt it had “potential.”

“I think this plan is more palatable because it will certainly fill a need in the community for workforce housing,” Lee said. “This would be great if people worked in town and lived in town, and that certainly would reduce traffic in commuting. Again, that’s why I say, even though the information is preliminary, it sounds promising and that it has potential.”

However, in a place where parking is limited, “traffic and congestion is a concern, so until we see all the plans, it’s hard to make an informed comment,” she added.

Yi said he wants to try and get the project approved under the fast-tracked process and will likely have to go before the council. He said he’s aiming to keep the plans within the current zoning requirements, which is why it’s capped at four stories. The parking structure, also four stories, would include 152 stalls.

He said the project is a mix of affordable and market-rate units because he’ll need private funding up front. However, if Lokahi Global partnered with the county and could get government funding for 25 to 30 percent of the development cost, he said, “I’m willing to do 100 percent workforce housing.” He estimated the preliminary cost at roughly $70 million to $80 million.

“I’m not looking to profit at this point on this project,” said Yi, a graduate of Kaimuki High School and the University of Hawaii at Manoa. “This is sort of my mission-driven project for Maui County.”

* Colleen Uechi can be reached at cuechi@mauinews.com.