FAQs

Q: What is the state of Hawai‘i’s expected return on investment for NASED?

A: Approximately $400 million was appropriated to the NASED project in 2019; the majority of which will be used for design and construction of the new Aloha Stadium and supporting stadium infrastructure. The master developer (scheduled to be contracted in June 2025) will be responsible for funding the remainder of the project, including site development (e.g., residential towers, retail, etc.) and supporting district infrastructure.

The state does not forecast a direct return on this investment for the first 30 years of development. Instead, the plan is for revenues derived from development to pay for maintenance of the new Stadium and potentially inject additional funding towards an “improved” new Aloha Stadium. Once this initial 30-year period is over, the master developer will then start paying rent to the state, projected to be several million dollars per year.

This is a much-improved position than with the previous stadium, as long-term maintenance risk is transferred from the state to the master developer.

In addition, the state is projecting significant indirect returns on its investment in NASED, including economic and social benefits. Over the next 30 years, these include:

• Over 4,500 new residential units built on site, with the anticipation that workforce homes will provide the largest proportion of the housing mix
• Over $2 billion in construction spending and 12,000 construction jobs
• Over $3 billion in new city and state tax revenues generated from the NASED site (or $600 million net present value)

These social and economic benefits, along with the rent payable by the master developer, add up to significant and sustained long-term benefits for the state of Hawai‘i, especially when compared to the relatively modest initial investment – which provides a new stadium maintained to a high standard for 30 years.

Q: Why is the state of Hawai‘i investing in NASED when the Maui recovery efforts require funding?

A: The NASED team fully appreciates the state of Hawai‘i's responsibility to support and fund recovery efforts for Maui, and especially Lahaina. We also recognize that the general long-term economic viability for the whole state needs to be sustained, and this includes continuing to support key economic revitalization projects like NASED. Fortunately, these needs are not mutually exclusive.  

NASED is moving quickly through its procurement and is primed to start injecting state and private developer funds into the local economy starting in the fall of 2025. Through completion of the stadium and initial real estate development in 2028, this NASED project will contribute to the long-term economic and social benefits to the state and city. The remainder of the district's development is projected to be completed over the following 15 to 20 years and will be funded by the developer. This will provide for increasing economic benefits even beyond completion of the district.

Much of Lahaina's long-term recovery is still in the planning and design phases, and redevelopment will likely occur over an extended timeframe. Therefore, a more measured, continuous flow of funding over the next decade would need to be provided for the intense work ahead.

This isn’t a case of one project taking from another, it is a case of one project (NASED), establishing a foundation of economic success that supports all future endeavors for the state of Hawai‘i.