The U.S. Navy today selected Hawaii Military Communities (HMC) to manage, maintain, and renovate 1,948 of its housing units. HMC is a consortium of private firms, including 19 local companies as well as Cleveland-based Forest City Enterprises, Inc. and Texas-based C.F. Jordan. Rep. Neil Abercrombie hailed the announcement as “a very positive step forward” in public-private partnerships. The terms of the 50-year contract, valued at more than $250 million, have yet to be negotiated.
The contract includes replacing housing units located in Halsey Terrace, Radford Terrace, and McGrew Point, and renovating units in Hokulani and Moanalua Terrace. Execution of the contract is expected in March 2004, with construction expected to be completed in 2008.
The work is only the first phase of the Navy’s overall plan to privatize all housing on O`ahu.
“The long term public-private partnership allows us to leverage Defense dollars and undertake these projects on a much larger scale than if they were funded year by year,” Abercrombie said. “The bottom line will be better housing for military families and a boost for Hawaii’s economy.”
He said additional contracts with a potential value of up to $1 billion could follow the agreement announced today.
Forest City Enterprises is one of the nation’s largest developers, and C.F. Jordan most recently built the Navy’s 340,000-square-foot “Mall at Pearl Harbor,” the largest Navy Exchange facility in the world.