The University of Hawai'i athletic department is set to save more than $300,000 annually under a proposal that would waive the school's Aloha Stadium rental fees for home football games starting this fall.

The amount of rent UH pays — more than $300,000 most seasons — has been a concern for the UH athletic department, which has operated at a deficit for four consecutive years.

An Aloha Stadium Authority committee yesterday recommended free rent for UH, which is the only state agency charged rent at the 50,000-seat Halawa facility. Other state agencies, such as high school athletics, as well as charity organizations, are charged only operational costs.

"It's inconsistent that UH pays rent," said committee chairman Howard Ikeda, who added that financial projections show Aloha Stadium can afford to waive UH's fee. "We've always had a cash surplus every year."

To offset the loss of UH's rent, Aloha Stadium in banking on increased swap meet revenue, parking and concession profits, and other money-making events and enhancements tied to the pending $130 million renovation of the stadium, Ikeda said.

The authority will vote on the recommendation at its next meeting, April 27.

"We're not going to comment on it until it happens," said UH athletic director Herman Frazier, who has called the rent issue "the most important item on our plate."

Also yesterday, the authority moved closer to locking the stadium's moveable grandstands in permanent football configuration, and expanded its search for a new manager.

Last December, the authority passed a new rule that allows the nine-person board the discretion to adjust or eliminate UH's rent. The stadium currently charges UH 7.5 percent of gross ticket sales or $10,000 per date, whichever is greater.

"I encourage the Stadium Authority Board to accept this decision when they meet next month," Gov. Linda Lingle said in a statement. "It will positively impact future attendance at University football games at Aloha Stadium since this will free up additional funds for marketing their games."

UH will still be responsible to pay for operational expenses — such as clean-up, electricity, ushers and security — for football games. Operational expenses have totaled more than $400,000 per year.

Also, the authority voted 9-0 to accept a proposal by state comptroller Russ Saito and lock the grandstands in a football configuration.

Stadium officials said the system that controls the moveable grandstands has become unreliable, unsafe and costly to maintain.

Saito said locking the grandstands "opens up revenue enhancement options," such as adding fixed luxury boxes and party decks, and would save more than $11 million in grandstand system renovations and other costs.

Before work begins, the stadium authority must amend a rule that requires the grandstands be moved once a year. A public hearing will be held on the proposal, and a final decision should come before July when stadium renovations are scheduled to begin with planning and design, Saito said.

In a football configuration, the stadium would not be able to host baseball games and professional soccer matches. Both sports require a larger field. The stadium would still be able to host concerts.

In addition, the stadium authority passed on the final two candidates for the vacant stadium manager position. Instead, Ken Lum will remain as acting stadium manager, and assistant events manager Scott Chan was promoted to interim deputy stadium manager.

A committee recommended an additional and expanded search be made. The two finalists, whose names were not made public, would be able to reapply. Stadium manager Eddie Hayashi retired last October after 12 years on the job.

Reach Brandon Masuoka at bmasuoka@honoluluadvertiser.com.