Donors with Kakaako ties spending big on elections

Donors linked to contractors, developers and landowners involved with the increasingly controversial rebuilding of Kakaako have contributed more than $680,000 since 2009 to Gov. Neil Abercrombie’s two gubernatorial campaigns, according to a Honolulu Star-Advertiser analysis of state data.

When donations from construction unions are included, the total swells to nearly $850,000 — or 11 percent of Abercrombie’s overall contributions.

For just his current re-election effort, the governor has collected nearly $370,000 through December from individuals with ties to Kakaako contractors, landowners, developers and the state agency that oversees the rebuilding, according to the newspaper’s analysis of campaign fundraising data.

Including contributions from the trade unions whose members benefit from such construction, the total tops $425,000. Abercrombie’s campaign has raised roughly $3.4 million through December for his re-election.

The donations comply with Hawaii’s campaign regulations, but critics say the money is fueling what they call an overzealous pace at which the Hawaii Community Development Authority is approving projects.

Four of Abercrombie’s Cabinet officials are on the nine-member HCDA board and the other five board members are Abercrombie appointees, giving him significant influence at the agency.

Over about the past two years, HCDA has approved eight mostly high-rise condominium projects. The more recent approvals have generated intense criticism from residents concerned about densely packed neighborhoods, overcrowded schools, inadequate infrastructure, a lack of parks, insufficient planning and worsening traffic.

It also has sparked legislative efforts — so far unsuccessful — to bring reforms to the agency.

As recently as 2005, Abercrombie, as a congressman, called for abolishing HCDA, saying the agency never had been accountable to area residents and was failing in its mission to make Kakaako a more vibrant place for people to operate small businesses, live and play.

But since winning the governor’s seat in 2010, he has been a major promoter of the urbanization of Kakaako, arguing that smart growth in the heart of Honolulu will benefit all of Oahu and will create that vibrant urban community.

His critics say the campaign contributions are unduly influencing him, prodding his administration to elevate development over community interests.

"We can see this in every HCDA decision," said Michelle Matson, an advocate for preserving public lands. "They are definitely marching to the beat of the development drummer."

A top Abercrombie campaign official defended the administration.

"Gov. Abercrombie’s goal is reducing urban sprawl, creating pedestrian-friendly open space and keeping the country country," attorney Bill Kaneko, his campaign manager, wrote in a statement to the Star-Advertiser. "Building responsibly in urban core areas like Kakaako is the way to do that. Under the Abercrombie administration, we have seen workforce and affordable housing increase substantially. These priorities are driven by the governor’s vision and values for smart and sustainable growth.

"Those who support his vision support him. That has been true through 34 elections over 44 years — a record of campaign integrity by any measure."

Gubernatorial campaigns in Hawaii historically have drawn considerable financial support from the real estate industry.

But the mounting controversy over Kakaako’s accelerated growth has raised questions about the level of campaign donations from those with a financial stake in transforming the district, which covers roughly 600 acres and is bounded by Piikoi, King and Punchbowl streets and Ala Moana Boulevard.

It also includes a stretch of waterfront from Kewalo Basin to Forrest Avenue and a parcel in downtown Hono­lulu.

In the current election cycle, the vast majority of the Kakaako-linked gubernatorial donations are going to Abercrombie’s re-election effort, according to the Star-Advertiser analysis. His Democratic primary opponent, Sen. David Ige, has received hardly any.

And the newspaper’s analysis likely understates the actual level of support Abercrombie has received.

In reviewing thousands of entries in a state database, the Star-Advertiser counted only donations from individuals with connections to companies known to be involved in rebuilding efforts in the district, just outside of it at Ala Moana Center, or having links to HCDA. Some companies, especially at the subcontractor level, are not readily identified with Kakaako projects.

Bob Watada, who retired in 2006 as head of the state Campaign Spending Commission, wasn’t surprised that a politician who once called for abolishing HCDA is now getting considerable financial support from donors whose companies benefit from projects approved by the agency.

"Time after time, I’ve seen politicians against something, but when it comes time to get contributions for that something, they’re for it," said Watada, who oversaw the commission when a "pay to play" scandal snared dozens of donors, mostly architects and engineers.

Between 2003 and 2005, more than 30 people pleaded no contest to misdemeanor charges of violating the state’s campaign law, while another 90 paid more than $1.8 million in fines to the commission for making illegal donations.

Since then, the state has enacted a law aimed at curbing pay-to-play practices.

Contractors doing business with the state or county are prohibited from donating to local candidates. But employees of those companies are free to contribute as long as they are not reimbursed by their employers.

According to the Star-Advertiser analysis, employees and others with ties to Mitsu­naga & Associates, an engineering and architectural firm headed by longtime Abercrombie supporter Dennis Mitsu­naga, gave more than $132,000 to Abercrombie’s two gubernatorial campaigns — the most by far among the companies in the analysis.

HCDA awarded Mitsunaga & Associates a $290,000 contract in 2011 for design work related to the pending renovation of the historic American Brewery building in Kakaako.

Aaron Fujii, executive vice president and chief operating officer for Mitsunaga & Associates, said in a written statement to the Star-Advertiser that his firm has absolutely no involvement in Kakaako’s redevelopment and has never been asked to be a participant.

One of its employees, however, is on the HCDA board, the panel that approves residential, commercial and other projects that are changing the face of a district once known for its grubby, worn industrial look.

Lois Mitsunaga, the daughter of Mitsunaga and an engineer with the firm, was appointed by Abercrombie in 2011. He has lauded her as being "bright, committed and a tremendous organizer."

Regarding campaign donations, Fujii said Mitsunaga & Associates does not advise or direct its employees to make contributions. He also said he doesn’t expect or receive any favorable treatment in exchange for his contributions.

Fujii donated $6,000 — the maximum allowed to a gubernatorial candidate in an election period — to Abercrombie’s campaign in June 2010, according to state data.

Similarly, Lois Mitsunaga said she expects nothing in return for her contributions. She gave the Abercrombie campaign a $6,000 donation in August 2011 and a $5,000 one a year earlier, counted toward his first run for governor, state records show.

Lois Mitsunaga said she is passionate about politics and enjoys playing an active role in her community.

"The reason I do make donations to certain individuals is because I believe that individual has the potential to pave the way for future generations in Hawaii," she wrote in response to Star-Advertiser questions. "Specifically with regard to Gov. Neil Abercrombie, I admire his character, his tenacity, and believe he has the public’s best interest in heart and mind."

Many of the Kakaako-linked donors who gave to Abercrombie’s gubernatorial campaigns did not give to him leading up to his final term in Congress. Abercrombie resigned from his House seat in early 2010 to focus on his bid for governor.

For example, of the roughly 80 employees and others linked to the 10 Kakaako-related companies whose donors gave the most to Abercrombie’s gubernatorial campaigns, fewer than a dozen contributed to his last re-election bid for Congress in 2008, according to the Star-Advertiser review.

"Individual contributions are personal decisions made solely by the individual, and therefore beyond that we have no comment," a spokeswoman for Alexander & Baldwin, a major Kakaako developer and one of the top 10 companies, said in a written statement.

Several other companies did not respond to Star-Advertiser requests for comment.

Besides Mitsunaga & Associates, at least one other company covered by the analysis has been hired by HCDA.

AECOM Technical Services in November was awarded a $167,000 contract to continue monitoring storm drainage and runoff in Kakaako.

The next month, eight AECOM employees, including executives and engineers, donated $1,000 each to Abercrombie’s campaign, the records show.

AECOM did not respond to a Star-Advertiser request Friday seeking comment.