You don’t hear much about Howard Hughes anymore, but he — or, more precisely, a real estate development company named after him — is helping to delay completion of the Honolulu rail line, the $12 billion project we love to ridicule. Hughes is the midst of developing a master-planned community called Ward Village that’s smack in the pathway of the rail line, and the Honolulu Authority for Rapid Transit (HART) says it wants two acres for the line.
Hughes is willing to sell the land to the Honolulu Authority for Rapid Transit (HART), but there is a teensy disagreement over the value of the land. HART offered Hughes $13.5 million; Hughes thought it was worth “about” $100 million more. HART is attempting to take the land by eminent domain, leading Hughes to counter sue, asking for $200 million in damages. HART has already approved $23 million to pay its legal fees in the eminent domain suit.
I wonder if HART is trying to pull the same fast one that Denver’s RTD tried, which was to claim that the rail line would increase the value of the remaining property so landowners should be willing (or forced) to sell the land needed for the train for less than market value. Hughes, however, will probably argue that the success of its development makes the remaining land in the development even more valuable. Continue reading
