HCDA | Rowena Akana

HCDA will not compromise with OHA on their plans for Kewalo Basin, even though OHA is a major stakeholder (HCDA PART 2)

On March 1, 2009, the Hawaii Community Development Authority (HCDA) assumed the management of the Kewalo Basin Harbor from the Department of Transportation and hired ALMAR Management, Inc. (a California-based marina operator), to oversee day to day harbor operations.

On June 7, 2012, the Honolulu Star-Advertiser reported that HCDA agreed to lease the 143-slip harbor in Kakaako for 50 years to Almar Management Inc. and a partner doing business as KB Marina LP. The Almar partnership would finance $22 million in repair work to replace all piers and docks and would increase boats slips from 143 to 243.

Almar anticipates the upgrades taking five years to complete and would pay HCDA about $45 million in rent over 50 years. Is this what the State considers a fair price? These are ceded lands and OHA beneficiaries & state stakeholders will end up losing out. Who is benefiting from this deal?

As I mentioned in my last column, OHA received a letter from HCDA on August 6, 2013, stating HCDA will not compromise with OHA on their plans for Kewalo Basin, even though OHA is a major stakeholder.

The HCDA and their many controversial plans for Kakaako have made frequent headlines in the media lately, but most of us are in the dark about what exactly the HCDA is and who is really in charge.

WHAT IS THE HCDA?

The 1976 State Legislature created HCDA to revitalize urban areas that were underused and deteriorating. The Kaka‘ako Community Development District covers 600 acres within Piikoi, King, and Punchbowl Streets and Ala Moana Boulevard, as well as the waterfront from Kewalo Basin to Forrest Avenue. (Source: http://dbedt.hawaii.gov/hcda/about-hcda/)

HCDA is attached to the Department of Business, Economic Development & Tourism (DBEDT) for administrative purposes and their mission is to create “vibrant” communities within Kakaako and encourage new investment by building essential public infrastructure such as roadways, utilities, and parks that are necessary for redevelopment.

WHO ARE ITS MEMBERS?

HCDA’s Kakaako Authority is composed of members from the public and private sectors. They include:

Four “ex officio” voting members from State departments:

Dean Seki, Comptroller, Accounting and General Services;
Kalbert Young, Director, Budget and Finance;
Richard Lim, DBEDT Director ; and
Glenn Okimoto, Director, Transportation.

The Governor also appoints members from a list of names submitted by the Honolulu City Council, the Senate President and the House Speaker.

At-large member:

Brian Lee, Director of Research and Communications, International Brotherhood of Electrical Workers.

Community members:

Miles Kamimura, President, Pacific Property Group;
Lois Mitsunaga, CFO, Structural Engineer at Mitsunaga & Associates. INC.; and
VACANT.

Cultural specialist:

VACANT.

An Executive Director serves as the CEO and is appointed by HCDA members.

IMPORTANT TO NOTE

What is sorely missing here is disclosure.

Do the members of the Authority, especially those from the private sector, have any conflicts of interest?

Do they represent any clients that would benefit from any development projects being considered for Kakaako or are they themselves in a position to benefit from any developments?

Are they contributing to any political campaigns in 2014?

Should HCDA have sole power over planning, zoning, and directly promoting economic development in Kakaako?

These are the questions the community should be asking this Authority.

HCDA PART 1 — HCDA is not a good neighbor

`Ano`ai kakou… In 2012, when OHA received it’s Kakaako lands in our settlement with the State over past-due ceded land revenues, OHA was not appraised that the Hawaii Community Development Authority (HCDA), which has jurisdiction over development in the area, planned to lease the harbor in Kakaako for 50 years to a California-based marina operator and increase the boats slips to 243.

For the past year, OHA has been negotiating with the HCDA to get them to compromise on their plans to put “finger piers” in front of our Fisherman’s Wharf property. On August 6, 2013, OHA received a letter from HCDA stating they will not make any compromises to their plans and expects OHA to be a “good neighbor” and accept their plan for our property.

Here are some of the specific concerns I have with the HCDA’s August 6, 2013 letter:

HCDA considers OHA a “sister agency” but they are forcing OHA to accept a plan in which we have no opportunity for providing input. If HCDA wants OHA to be a “good neighbor” they should first recognize OHA as an equal partner in developing the harbor area in front of Fisherman’s Wharf.
OHA would be willing to go along with the HCDA’s Finger Pier plan if we could have at least two slips in front of our Fisherman’s Wharf property. However, the HCDA responded that the lands of Kewalo Basin are submerged lands and the State is unable to convey fee simple interests in any of the slips. The HCDA needs to realize that all submerged lands are “ceded” and that Native Hawaiians are a part-beneficiary under the State Constitution. The Kakaako lands conveyed to OHA are on submerged lands – it’s all land-fill. It appears the HCDA doesn’t have a true understanding of Native Hawaiian rights and who OHA represents.
The HCDA said they are concerned about the views of our community. If this were true, they would agree with OHA’s plans to minimize the impact of large boats docking in front of our property and allow OHA to design its own culturally appropriate sense of place that would be acceptable for everyone. When OHA conducted community meetings regarding the Kakaako land acquisition, the community was supportive in strong part due to OHA’s commitment to develop the area using Hawaiian concepts and sense of place.

NEXT STEPS

OHA must continue to object to the current finger piers design and not fall victim to HCDA’s threats. If HCDA goes forward with signing any lease, OHA should consider suing the HCDA.

OHA should also appeal to the State legislature to revisit the powers it has given to HCDA and, if necessary, start a community-based campaign to reform the HCDA and prevent any further irresponsible development.

HCDA doesn’t appear to understand true Hawaiian values and the desires of the broader community regarding Kakaako. All they seem interested in is making the most money they can out of Kewalo Basin – with or without OHA.

If HCDA is really concerned about getting the maximum dollars for Kakaako, they would not be leasing the whole harbor to a mainland developer for 50-years for only $45 million. This measly figure is criminal! The State will lose out as well as OHA beneficiaries. So who is really benefiting from this deal? Time to ask questions of the HCDA and the State!

HCDA’s plan could end up privatizing the Kewalo Basin

HCDA needs to consider all of the Stakeholders involved before signing a 50-year lease with a mainland company!

`Ano`ai kakou… On April 11, 2012, Governor Neil Abercrombie signed the historic $200 million settlement between the State and OHA. After many years of negotiations, OHA finally resolved all claims that were raised with the State relating to its portion of income from the public land trust from November 7, 1978 to June 30, 2012. The State fulfilled its constitutional obligations to Native Hawaiians by providing OHA with fee simple title to lands in Kakaako makai.

However, to our surprise, on June 7, 2012, the Honolulu Star-Advertiser reported that the Hawaii Community Development Authority, which has jurisdiction over Kewalo Basin, had agreed to lease the 143-slip harbor in Kakaako for 50 years to California-based marina operator Almar Management Inc. and a partner doing business as KB Marina LP.

The Almar partnership would finance $22 million in repair work to replace all piers and docks and would increase boats slips from 143 to 243. Almar anticipates the upgrades taking five years to complete and would pay HCDA about $45 million in rent over 50 years.

OHA owns the property along the Ewa side of the harbor including the former Fisherman’s Wharf Restaurant area. Late last year, OHA asked HCDA’s board to delay a final decision on the renovation and expansion plans so that we could better understand how the harbor changes would affect our property.

Now OHA is feeling heavy pressure from both the HCDA and the Governor’s office to accept the harbor improvements, which include two “finger” piers that will extend from OHA’s Fisherman’s Wharf site. It is important to note that OHA was not aware of the HCDA’s commitment to the two finger piers prior to our signing the settlement agreement with the State. We did not know that there were “strings attached” to the properties.

OHA is counting on the Kakaako lands to someday generate the revenue needed to support our many Native Hawaiian programs. The properties are crucial to OHA and our future nation becoming completely self-sufficient.

The “Save Kakaako Ohana” is counting on OHA to develop our properties in a responsible and culturally sensitive way while preserving community access to the ocean.

If HCDA gets their way, OHA’s land will surely be devalued. We need our ocean front not only for its beauty and view, but also to be able to master plan our area as a whole. The last thing we need is a large cruise ship docked in front of our property. It is also ridiculous that the State believes $45 million is a lot of money over 50 years. In 50-years, the property will be worth a hundred times that amount!

Help us stop this insane plan by showing your support for OHA to retain its rights to its waterfront. Make your opinions known to the HCDA, your state legislators, and the governor’s office.

Legislative Update

There are several bills introduced in the 2013 legislature that are threatening to cause deep divisions within the Native Hawaiian community. For example, HB 252 seeks to prevent Native Hawaiians who are not residents and/or Hawaii registered voters from participating in the Native Hawaiian Roll Commission’s enrollment process. The legislature should refrain from joining the contentious debate about who is a Native Hawaiian. That decision should be made by Native Hawaiians themselves. Aloha Ke Akua.