Kalihi residents are sounding the alarm over a planned Costco gas station at Dillingham Plaza, warning the fuel-only setup could turn Dillingham Boulevard traffic from bad to worse. At a recent meeting of the Kalihi-Palama Neighborhood Board at Kapalama Hale, neighbors said long fuel lines stacked on top of rail construction and daily gridlock could bring the area to a standstill.
Neighbors Worry Rail-Area Backups Will Only Get Longer
During the neighborhood board meeting, residents pressed project leaders on timing and safety, arguing that nearby families, including children, would feel the impact first. One attendee summed up the mood bluntly: "Traffic was bad enough before the rail came down." Several speakers pushed for delaying the project until rail work eases and conditions stabilize, according to Hawaii News Now.
Kamehameha Schools Says Redevelopment Will Smooth the Flow
Kamehameha Schools, which is transforming the former Dillingham Plaza site into ʻŌlauniu at Kapālama Kai, pitches the project as more than just a busy fuel stop. Plans call for retail, dining and community spaces, with a stated goal to "integrate efficient traffic design and improved circulation." The project website notes that Costco Gas is set to coordinate its entry and exit layout with the City and County of Honolulu, and that demolition and site preparation started in October 2025, according to Kamehameha Schools.
Costco’s Standalone Gas Gambit and the Kalihi Layout
Industry reporting shows Costco is testing standalone, fuel-only stations in select markets as part of a broader strategy, and the Honolulu project is joining a pilot effort that includes Mission Viejo, California, according to C-Store Dive. Project leaders told the Kalihi-Palama Neighborhood Board the planned fuel-only site would feature about 40 pumps and room for roughly 80 cars, with 28 feet of spacing between dispensers and 32 feet between islands, plus a red and green availability light at each pump to keep cars moving, per Hawaii News Now.
What’s Next: Permits, Phased Construction and More Talk
Kamehameha Schools says construction at ʻŌlauniu at Kapālama Kai will roll out in phases, with the full development projected to open in 2027. The project team says it plans to stay in conversation with residents as permits move forward and designs are refined, according to Kamehameha Schools. Neighbors, for their part, say they intend to keep pushing for design changes that cut down on queuing and improve safety as the permitting process unfolds.
