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State senators on Tuesday kept alive the option of giving the state Office of Hawaiian Affairs flexibility to develop high-rise apartments on land near the waterfront in Kakaako.
OHA would have the discretion to consider residential development on two parcels that are part of a $200 million settlement with the state for OHA’s share of former crown land revenue since 1978. Lifting the restriction on residential development near the waterfront could increase the value of the land.
OHA leaders have told lawmakers that they appreciate the intent but have not actively supported the idea because they do not want to jeopardize the settlement, which is awaiting Gov. Neil Abercrombie’s signature.
The House has indicated that it will not hear a Senate version of the bill. But the Senate’s Ways and Means and Judiciary and Labor committees added similar language to a related bill that has passed the House — House Bill 2819 — so if the House bill clears the full Senate, the legislation could still be heard in conference committee before the session ends in May.
"It’s an important bill in terms of economic development, in terms of some of the members who felt — and continue to feel — that the settlement doesn’t meet the amount that should have been settled on," said state Sen. Clayton Hee (D, Kahuku-Kaneohe), chairman of the Judiciary and Labor Committee.
Community groups have fought against residential development along the waterfront in Kakaako.
Brian Shimokawa, who surfs and dives in the area and is active in Friends of Kewalos, does not want Kakaako makai to become another Waikiki.
"Yes, we owed OHA and I’m glad it got settled," he said. "If they didn’t think it was right, they would have never accepted it."