Aloha Stadium is among the nation’s busiest sports venues, but swap meets bring in twice the revenue than from spectator events in the stadium. However, the state’s legislative auditor alleges that "commercial purposes" other than stadium concessions violate federal restrictions, just one of many serious questions being raised about the current swap meet operation. Further investigation is needed to determine the legality of the activities on the stadium’s parking lot, and into accusations that stadium management has been terribly lax.

Revenues from the Aloha Stadium Swap Meet & Marketplace fell from a high of $5.4 million in sales in fiscal 2007-2008 to $4.8 million in 2009-2010, some of which might be attributable to the national and local recession. However, state Auditor Marion Higa has issued a scathing report, calling Centerplate, the Connecticut-based swap meet manager, "derelict in its performance." The Stadium Authority also is accused of mismanagement and allowing 26 vendors to operate without tax licenses and one-third of the top 450 vendors neglecting to pay sales taxes in full.

In a written response, Nelson Oyadomari, the authority’s chairman since October and member since 2006, maintained that the authority, stadium manager Scott Chan and Centerplate "do not condone any illegal activity." He said Centerplate "has updated their procedures to ensure greater compliance" with tax laws.

All parties involved need to step up to the plate. It is unconscionable that this lax pattern of operations — as well as passivity over a revenue generator that has potential to do more — be allowed to exist, let alone continue.

Gov. Neil Abercrombie called in last year’s State of the State address for the nine-member Stadium Authority, a state board, to step down so he could replace it and separately "convene a group of experts and university officials" to determine the stadium’s future. The board members remain at their positions.

In light of this audit, serious questions must be asked about the authority’s responsibilities, and how well its members are performing on behalf of state taxpayers.

Centerplate, active in 250 North American sports, entertainment and convention venues, was awarded the contract five years ago. It has been active in Hawaii since 1973, managing food and beverage operations at the stadium, Blaisdell Center, Waikiki Shell and seven other locations but has managed a swap meet nowhere else in the country, according to Higa.

That is no explanation for inadequate oversight of Centerplate by the authority and Chan.

Although the possibility of federal action may be "remote," Higa’s audit asserts that the operation of the swap meet next to the stadium violates present terms of the city’s purchase of the federal land in 1967. The city transferred the property to the state in 1970s, and the federal Interior Department approved it "for public recreational use." The audit cites a 2009 agreement between the state and the National Park Service asserting that "commercial purposes are not allowed" except for those "serving a public park and recreation purpose."

Oyadomari responded that the swap meet’s "injection of revenue ensures that the stadium remains open and available to the public at affordable prices" so meets that criteria. That might be a stretch.

Higa’s report should result in the Abercrombie administration asking for federal assurances that the swap meet conforms with the land transaction’s terms. Let’s hope so, for the sake of the small businesses striving to make ends meet amid a declining customer base. If not, this lackadaisical oversight over the swap meet’s management could become a major factor in the continuing possibility of replacing Aloha Stadium with what the governor has called "any future stadium we might build."