Mayor Derek S.K. Kawakami joined dignitaries from Riverbend Management and Unlimited Construction Services on Wednesday to huli ka lepo for the Rice Street Apartments that will be located at the intersection of Rice and Umi streets, the former location of the Lihue Central Pacific Bank.
The Rice Street Apartments is a mixed use affordable housing community designed to help meet the islands critical housing needs while contributing to the revitalization of Lihue’s historic town core. The four-story development will include three levels of residential units built over a ground floor commercial and retail space.
“Today’s groundbreaking shows the power of public private partnerships in tackling our affordable housing needs,” said Kawakami. “Mahalo to Riverbend Management, Rice Street Hale, our Housing Agency, and all our partners for making this project possible. Together, we’re building more than housing — we’re building hope for our community.”
The project, which is scheduled to be finished in about 18 months, is designed to provide high-quality, affordable housing in the heart of Lihue. The Rice Street Apartments will feature 66 two-bedroom units reserved for families earning 60 percent, or less of the area median income, including one manager’s unit. Rents will be approximately $1,000 per month, net of utility allowances.
The 16,000 square feet of retail space, fully funded by Riverbend Management, is part of a broader vision to rejuvenate Rice Street’s role as a vibrant hub. This space could accommodate up to 10 local businesses.
“We are excited about the new project and hope it may help spark a broader rejuvenation of Rice Street, our community’s historic municipal center and business hub,” said Adam Roversi, the director of the Kauai County Housing Agency.
Riverbend Management, Foulger Pratt and Foursight are the project development partners, and Unlimited Construction is the general contractor. Pacific Concrete Cutting and Coring, Inc. was the demolition contractor, and the site contractor is Koga Engineering &Construction.
“Kauai’s housing shortage is a real challenge, and we’re honored to join with the county, and community partners to help make a difference,” said Riverbend Management owner Frank Vandersloot. “This project represents what is possible when we work together to create solutions that strengthen families and revitalize communities.”
Riverbend Management first identified the property in 2018 as a prime redevelopment site to address Kauai’s housing shortage while enhancing the economic vitality of Rice Street.
Despite pandemic delays and rising construction costs, Riverbend stayed the course by collaborating closely with the community, the Rice Street Business Association, and Kauai County departments to earn unanimous support from regulatory agencies.
Key financing was secured in 2022, including a $10.8 million loan from Hawaii’s Rental Housing Revolving Fund, Low-Income Housing Tax Credits, and conventional financing.
The county support has been instrumental, including a $500,000 grant from the County Housing Development Fund, federal project-based rental assistance vouchers for 15 units, permit fee waivers totaling $888,000, affordable housing exemptions and expedited permitting.
To ensure the project’s viability in its final stages, Vandersloot personally contributed approximately $1.9 million to bridge a funding gap. His commitment not only safeguarded the project’s future, but also underscored the importance of partnerships in community development.
Riverbend Management points out that Kauai County has been a steadfast partner, providing grants, vouchers, fee waiver and fast-track processes, ensuring this mixed-use development benefits local working families.
“We believe in projects that have lasting impact,” Vandersloot said while acknowledging Central Pacific Bank which accommodated a relocation of its Lihue branch to support the affordable housing project. “This investment reflects our confidence in Kauai’s future, and in the community leaders who are making housing a priority.”
Source: The Garden Island
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