Mary, Star of the Sea Church and School and Kahala Nui are neighbors in Waialae-Kahala. (Photos by Celia K. Downes / Hawaii Catholic Herald)
By Celia K. Downes
Hawaii Catholic Herald
For the past 19 years, the Diocese of Honolulu leased a 6.5-acre land parcel in Waialae-Kahala to Kahala Nui, a retirement community, next to Mary, Star of the Sea Church and School.
This land lease agreement provided a home for Kahala Nui’s apartments and wide range of life care services for seniors, and also benefited Mary, Star of the Sea, which received new buildings for a gym, early learning center, business offices and a clergy residence as part of the deal.
The relationship between the diocese and Kahala Nui is now entering a new phase with the announcement Oct. 3 of a land sale agreement expected to close in the last quarter of this year.
“This agreement enables Kahala Nui to gain ownership of the land under its facilities, allowing for greater stability and flexibility in its long-term planning and development, while at the same time, providing the Diocese of Honolulu with the critical funds needed to ensure the Catholic Church can continue ministering to our faithful and community for many generations to come,” Bishop Larry Silva said in a press release.
The purchase price for the parcel was not disclosed.
“We are deeply grateful to the Diocese of Honolulu for their partnership over the past two decades and look forward to continuing our shared commitment to the greater good of our community,” said Craig R. Courts, president and CEO of Kahala Nui, in the press release.
Kahala Nui and Mary, Star of the Sea are neighbors on a large plot of land bounded by Malia Street and Waialae Avenue. Between them sits an underground parking lot constructed for Kahala Nui, but which is also used by Mary, Star of the Sea. Access to the parking stalls for the church and school will continue, as will use of a soccer field on the site and other easements that were in place before the land sale.
A question-and-answer sheet and a letter from Bishop Silva were distributed to Mary, Star of the Sea parishioners the weekend of Oct. 4-5. Both documents emphasized the benefits of the land sale agreement for Mary, Star of the Sea and for the diocese.
A number of perpetual endowment funds will be created to manage the proceeds from the sale. The Hawaii Catholic Community Foundation will oversee endowment funds for Mary, Star of the Sea Parish and the diocese to ensure both will continue to receive the same amount of revenue that was generated under the previous land lease deal.
In addition, perpetual endowments will be established for deacon formation, seminarian and clergy education, and clergy medical and retirement expenses. The land sale will also help shore up the diocese’s priest and lay pension funds.
Other beneficiaries include the Augustine Educational Foundation, a nonprofit that operates under the diocese to provide financial assistance to students attending Hawaii Catholic schools, and the Cathedral Basilica of Our Lady of Peace in downtown Honolulu, which needs repairs and renovation.
“Through this land sale agreement, the Diocese of Honolulu can pay off its deferred debt and at the same time, establish a permanent means of income for both the parish and the diocese to make sure we remain financially sound, and the diocese can continue to provide crucial support for our priests, our faithful and those in need throughout Hawaii,” the Q&A sheet said.
The Kahala Nui land sale agreement is not the first under Bishop Silva. It was conducted as part of an overall land asset management plan that he and his advisers approved more than a decade ago, several years after he was appointed bishop of Honolulu.
According to a statement issued to the Hawaii Catholic Herald by Marlene De Costa, director of real estate for the diocese, on behalf of Bishop Silva, the plan looked at parcels held by the diocese as well as those under parish stewardship, and “outlined those which met the benchmark for a yield and those which did not.”
Land assets that didn’t meet the yield benchmark and which were also deemed, with the assistance of land planners and consultants, not needed for mission or growth over the next few decades have therefore been sold over the years. In the statement, De Costa said that dozens of parcels/units have been “disposed of” over a seven-year period between 2013-2020, with net proceeds used to offset debt incurred.
The diocese’s remaining properties “generate an acceptable yield and have a value for future use,” De Costa said. She added that there are no plans right now to sell any other land, though some parcels have already been listed and are in escrow.
“Our acquisitions and dispositions are based on plans that were drafted and approved over a period of time,” she said. “We are looking forward to continually bringing that plan to life for the good of the people of our diocese.”
