DHHL flags 11.88‑acre Operation Street parcel as potential industrial revenue site

Riley described 135 Operation Street as a highlighted, 11.88‑acre industrial parcel owned by DLNR that is underutilized and adjacent to the department's land inventory. "The green property is 11.88 acres," he said, adding that water and utilities are available and that the site offers good access via Kanoe Lehua Avenue.

Staff noted the parcel's potential for a roughly 20‑acre industrial development opportunity that could generate revenue for the department if due diligence confirms the site is developable. Riley also flagged contamination screening as a primary due‑diligence question for the industrial parcel: "One of the big questions is ensuring that there is not contamination on the land or something that is so cost prohibitive that it would prevent development." A commissioner cautioned that infrastructure costs are often the most expensive part of development and pressed staff to consider those costs as part of any acquisition decision.

The presenter provided local context (police station 2.6 miles away; fire 4.1 miles) and cited a low industrial vacancy rate in Hilo (0.7%), which staff said makes industrial space scarce and potentially valuable. Any purchase would remain conditional on resolving encumbrances and satisfactory technical and environmental reviews prior to closing.