OHA land settlement is great deal — for the state

Hawaii’s state legislators should be feeling terribly guilty.

Back in 2006, they caved in to a small group of noisy protesters, who claimed to represent "the people," and banned residential development on state lands at Kakaako Makai.

It was a colossal blunder.

The state had carefully selected a local firm, Alexander & Baldwin, which planned to spend up to $700 million to not only clean up the toxic waste dump, but create "an exciting and vibrant waterfront community … a Hawaiian sense of place, based on local values, history and our combined heritage." Importantly, A&B would also provide affordable housing and plenty of shoreline access.

The company included high-rises because it knew that, for this miracle to happen, there had to be a substantial number of residents in the area. Hawaiian leader Peter Apo emphasized: "Without these residences, the project doesn’t make financial sense."

The protesters, however, led by surfers and fishermen (notorious for guarding their territory) succeeded in persuading our legislators to ban residences — the key component of the project. The intimidating trash site, with its limited parking, suited them just fine. They were joined by groups such as The Outdoor Circle, which painted a bleak picture of a "concrete canyon" blocking the view plane; never mind the ocean was impossible to see from that stretch of Ala Moana Boulevard, and numerous high-rises would be built just across the street. They were more offended by the sight of a sparkling new condo tower than a deteriorating wasteland. Go figure.

A&B tried to reach an accommodation with the protesters, scaling back its condos to 20 stories. No matter. When the ban passed, it wisely stepped away.

Since 2006, the cost of the clean up — estimated to be $10 million — has most likely skyrocketed. An active homeless population has been blamed for significant vandalism. And there are soil stabilization and flood zone concerns. With the down economy, the state has no funding to make any improvements.

No wonder, then, that Gov. Neil Abercrombie and lawmakers were thrilled to pass this turkey off to the state Office of Hawaiian Affairs to settle some $200 million in past- due land claims. It was a deal too good to be true (for the state!).

At a strange "celebration," OHA Chairwoman Colette Machado spoke vaguely about "restaurants," omitting the fact that neither nearby Aloha Tower Market Place nor Restaurant Row has proven successful, not to mention there will be tons of competing eateries in Kakaako Mauka.

What’s next for Kakaako Makai? As I predicted back in 2006, sadly, nothing. Machado foresees a 10- to 15-year time span for some kind of development. But this is unacceptable because, first, the property is supposed to produce income. Second, the cost of the cleanup will continue to escalate. And, third, those pesky protesters are not going away, even though the land is supposed to benefit our Hawaiian population. They don’t want the area to "become another Waikiki," as if the two sites are identical — a ridiculous comparison.

Interestingly, the same Peter Apo, now with OHA, has been placed in charge of finding a solution.

I’m sure Apo realizes that now, as then, only high-rises can justify the huge amount of money that OHA had to relinquish to acquire the desolate property.

But, fortunately, there is a glimmer of hope and a chance for legislators to assuage their guilt.

House Bill 2819, which would allow high-rises, could clear the full Senate. OHA’s considerable investment could then be justified. Without passage, Machado would do well to take the $200 million, and leave this horrible mess behind.