Gov. Josh Green announced he had started the search for a developer to build a new Aloha Stadium and create a surrounding mixed-use housing and business district during a press conference at the State Capitol Thursday.

Alongside the chair of the Stadium Authority Brennon Morioka and University of Hawaii President David Lassner, Green announced that the request for proposal process was officially underway after consolidating plans to replace the old stadium and redevelop 98 acres of state land into housing and mixed-use properties.

“This is going to benefit our community going into the future,” Green said. “The stadium is critical. But so is housing. Housing is our biggest problem — we face shortages in all areas.”

Although the state previously appropriated $400 million for the project, Green was quick to point out that the state can support both Maui’s recovery and the redevelopment of the stadium site. “The wildfires have affected us — they’ve affected all of us in our budget — but that does not affect our capacity to move forward with this critical project.”

The RFP process will entail a qualification phase that will end in April 2024, followed by a review of proposals that will last the summer. The state plans to choose a contractor by next fall, according to Morioka.

The redeveloped site will include 4,500 new housing units. Green said 70% will be workforce housing for locals working in the new entertainment district, and that 20% of the overall housing stock will be designated affordable. The district will also include retail and office space, and 800 new hotel rooms.

The development is expected to generate $2 billion and an estimated 12,000 construction jobs, he said.

The bulk of construction costs will fall upon the developer, but the state sweetened the deal by allowing the contractor exclusive leasing rights for the future entertainment district. Theoretically, that revenue will cover construction costs.

While the new stadium is expected to open in time for the 2028 fall football season, the surrounding entertainment district will be developed over the next 20 to 30 years. According to the released RFP, the stadium needs to last at least 50 years, and the new district 100 years.

One key objective is that the future district will be a “seven-day-a-week destination that is valued by residents and visitors alike.”

Under the new plan, a sole contractor will design and construct a new multi-purpose stadium, using a mix of state appropriations and private funds. In exchange, the contractor will have the right to develop the surrounding entertainment district and offset costs through leasing and operational incomes.

The original plan envisioned separate contracts to build a new stadium and surrounding neighborhood, but in May Green consolidated all development under one contract after a cost-analysis showed taxpayers could pay an additional $400 million.

A final candidate will need to provide a developed concept that aligns with the state’s goals for the future neighborhood, specifically in creating affordable housing.

A selection committee will oversee the RFP process, and the statute allows the awarding of up to a 99-year contract.

That means whichever developer is chosen, under the state’s design-build-operate-maintain plan, they will be expected to oversee the site for potentially decades after building finishes.

Sen. Glenn Wakai, whose district includes the stadium area said in an interview that he has worked to build local consensus for the project.

“I’ve been massaging this community for 15 years,” he said. “There’s not 100% consensus, but most of them are behind it.”

Wakai described the announcement as the coin-toss start of a new football stadium’s journey — the kick-off will be when a sole developer is chosen, and said he was confident of the entertainment district’s long-term viability because of its proximity to Pearl Harbor National Memorial.

The original Aloha Stadium, built in 1975, had capacity for 50,000 people and hosted University of Hawaii football games and a variety of other events. But the venue has sat largely vacant since 2020 when the stadium was deemed unsafe due to deteriorating infrastructure.

Although the final design is forthcoming, the new stadium will have a minimum of 25,000 seats.

Earlier this year a report noted that potential developers were concerned about the project’s long-term financial feasibility. It also said there was a lack of vendors capable of operating the stadium.

The report stated that “the stadium is not expected to be a significant source of net revenue to the master developer if any source of ongoing net revenue at all.”

“A stadium is a money loser,” said Wakai. “We need the mixed use to be the bait for developers.”

Morioka said at the press conference that another cost analysis since had demonstrated the project’s viability based on new general excise and property taxes. “The financial analysis that we performed does indicate in the long term a very bright, vibrant and viable project that we believe will provide financial windfalls for not just those who participate in the development, but also for the state and the city municipality as well.”