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:

  1. Dean Seki, Comptroller, Accounting and General Services;
  2. Kalbert Young, Director, Budget and Finance;
  3. Richard Lim, DBEDT Director ; and
  4. 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:

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

Community members:

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

Cultural specialist: 

  1. 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.

Wrapping-up 2005

By: OHA Trustee Rowena Akana

Source: Ka Wai Ola o OHA, December 2005

‘Ano’ai kakou… Another challenging year for OHA has comes to an end. As we look forward to the coming year, I’d like to take this time to reflect on issues and events from the past year.

STATE LEGISLATURE

Although OHA was able to help Na Pua Noeau, the Native Hawaiian Legal Corporation, and Alu Like, Inc. boost their budgets, several of our most important bills ended up dying. For example, ever since 2001, we’ve tried unsuccessfully to pass legislation that would reestablish the continued funding of OHA from ceded land revenues. The Legislature needs to define, once and for all, the revenue stream from public trust lands that is to be given to OHA for the benefit of Hawaiians.

We must also do something to save our Kuleana Lands. For the past two years, I have submitted bills that would exempt Kuleana lands from real property taxes if the land has been continuously occupied by the descendants of the original titleholder. I am determined to give struggling Hawaiian families living on kuleana lands the tax relief they desperately need to hold on to their homes and legacy.

FISCAL

I brought up two concerns when Goldman Sachs and Frank Russell were hired to serve as OHA’s two financial managers on January 16, 2003. First, I felt that their fees were too high. Secondly, I argued that we should hire an independent consultant to make sure they were doing their jobs. Unfortunately, OHA’s leadership at the time didn’t agree with me and the contracts were approved. I finally got some vindication when State Auditor Marion Higa came out with her April 2005 audit of OHA and found that our money managers’ fees were too high and that we should have hired an independent consultant to help us evaluate them (which still has not occurred).

OHA POLICY

For years now, I have been calling for OHA to create a Land Division to be headed by a “Land Konohiki,” an expert specializing in land acquisition, management, and investment and ceded land claims. The Land Konohiki would be able to quickly consider private lands for acquisition. The Administration is now beginning to look at addressing this concern.

Also, back in April, I strongly opposed a proposal to establish two censors to control what trustees could print in their Ka Wai Ola columns. Thankfully, this threat to free-speech was quickly dropped after I brought up my concerns in an editorial to the Honolulu Advertiser and in my Ka Wai Ola Column. While the Chairman has publicly stated that there was no attempt to implement the censors, I have a copy of the written recommendation that was given to the trustees.

LAWSUITS

We made some progress in the Arakaki Lawsuit. The 9th U.S. Circuit Court of Appeals’ denied the Arakaki plaintiffs any standing regarding the Department of Hawaiian Home Lands and ceded land revenues. That just leaves OHA’s matching funds from the state, which I feel is pretty ridiculous since we are a state agency.

I was most disappointed by the October lawsuit filed by Virgil Day, Mel Hoomanawanui, Josiah Hoohuli, Patrick Kahawaiolaa, and Samuel Kealoha, Jr. against OHA. They want OHA to stop serving Hawaiians with less than 50% blood through programs such as Na Pua No’eau and the Native Hawaiian Legal Corporation. They also want us to stop supporting the Akaka bill. When will we learn that a people divided cannot stand? The only people that will gain from our bickering are those who do not want to see Hawaiians prosper in their own homeland.

FEDERAL RECOGNITION

We learned in late July that the previously unheard of Grassroot Institute of Hawai’i, led by Richard Rowland, had joined Thurston Twigg-Smith and H. William Burgess in opposing the Akaka bill. These people fed Congress false and misleading information in an effort to confuse the issue. They say that they are fighting for equality, but I believe they are really motivated by racism.

Urgent matters, such as Hurricane Katrina, ended up postponing the Akaka Bill. As of this writing, OHA is planning to lobby the Senate in the week before Thanksgiving. I believe it will be our last chance to get the bill passed this year.

ELDER CARE

On a positive note, I was very pleased that on June 23, 2005, the Board of Trustees approved a grant of $300,000 to help fund the Kupuna Continuing Care Assurance Program which will be administered by Lunalilo Home over the next two years. The program is designed to help make residential care, respite care, adult day care, and outreach nutritional services more affordable for Native Hawaiian kupuna.

Your prayers and guidance, for those of us in hardship in 2006, will help to make our journey successful. May the Lord bless and keep you all safe this holiday season. Aloha pumehana.