The city plans to tear down a two-story building on River Street — home to two restaurants, offices and a lei shop — to build an affordable housing complex with 80 to 100 units as part of a Chinatown revitalization, the mayor said yesterday.

Residents, merchants and homeless service providers applauded the proposal, which was announced at a city-convened summit on Chinatown.

"It's a step in the right direction," said Shervelle Gardner, operations director at the River of Life Mission on Pauahi Street, which serves meals and offers hot showers to Chinatown's poor and homeless. "I don't know how much it will impact us, but it's a great thing."

Merchants leasing space at the city-owned building at 1331 River St. declined comment. The structure destined for razing is behind Borthwick Mortuary.

In November, the city spent about $160,000 to remove asbestos from the structure's ceiling and repave its parking lot. Mayor Mufi Hannemann said the city would partner with a private developer to build the affordable housing complex.

The project is aimed at relieving Chinatown's growing homeless problem, he said.

"It's all about looking into the future," Hannemann told the more than 300 people who attended the Chinatown summit at Hawai'i Theatre, which featured guest speakers and spotlighted moves the city will make to address community concerns.

Margot Schrire, spokeswoman and volunteer manager for the Institute for Human Services, said the affordable housing complex needs to target those earning 30 percent of the median annual income or below. Otherwise, she said, it won't help the homeless.

"As a community, we need to be developing truly affordable housing," she said.

COMMUNITY ARTS CENTER

Jeff Coelho, executive adviser to the mayor, said it's too early to tell who the complex will serve or when it will open. It's also unclear how much the project will cost the city.

On top of building affordable housing, Hannemann said, the city plans to start a community arts center to attract more local artists to Chinatown, build a memorial for Chinese political leader Sun Yat Sen and provide free wireless Internet access in the community during a one-year pilot program.

The arts center will be similar to The Arts at Marks Garage, and will likely be housed in a city-owned building, Hannemann said.

'REMEMBERING THE PAST'

Summit attendees had positive reviews for the city's proposals, saying they were optimistic about the future of Chinatown and confident the administration would include residents, merchants and nonprofits in any large-scale decisions.

"I think it's a good start for people to get involved in helping this place improve," said Kenneth Siu, a Chinatown resident. "I'd like to see a viable community."

Connie Geisler, a River Street resident for five years, left the Hawai'i Theatre yesterday with a wide grin on her face. "It gave me some ideas about the future," she said. "It's a good example for the rest of the community to work together."

Several merchants and residents feared the city's revitalization plan would endanger the character of Chinatown, bringing in upscale retailers at the cost of mom-and-pop stores.

But those worries appeared allayed yesterday, and Hannemann pledged Chinatown would improve as it "remains the same."

"It's all about remembering the past. Changes need to be consistent with community concerns," Hannemann said.

ENJOYING CHINATOWN

Despite its flaws, residents and tourists who visit Chinatown are mostly happy with the experience, a survey conducted for the summit shows.

About 94 percent of residents included in the survey said they liked their Chinatown visit, while 85 percent of tourists enjoyed the trip. Some 497 residents and 119 tourists were surveyed in Chinatown for the poll, which was conducted for the city.

The survey also showed that O'ahu residents spend about $30 per trip to Chinatown and visitors spent about $64.

Concerns about Chinatown were largely the same among residents and visitors. Many thought it was "dirty" and "smelly," and were concerned about illegal activities and finding parking.

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.