HCDA’s ties to condo developers highlighted

Who sits on the board of the Hawaii Community Development Authority historically has not been a contentious issue. But with the recent flurry of Kakaako condominium towers winning agency approval, the selection process is attracting more attention.

This week, a Senate committee voted 5-1 to confirm the appointment of Brian Tamamoto, an executive of a subsidiary of local development firm Kobayashi Group, to the nine-member HCDA board, which governs development in Kakaako.

Sen. Laura Thielen (D, Hawaii Kai-Waimanalo-Kailua) cast the sole no vote, raising a question about whether Tamamoto has a conflict because Kobayashi Group has interests in condominium tower development in Kakaako.

If confirmed by the full Senate, Tamamoto will take one of the two HCDA board positions reserved for representatives of small business. Tamamoto was appointed to the board by Gov. Neil Abercrombie in December and has been serving as an interim board member since then. Abercrombie nominated Tamamoto from a list of four people recommended by the City Council.

A Sunday Star-Advertiser story disclosed that some of Abercrombie’s biggest campaign contributors have been individuals with ties to development-related firms with interests in Kakaako.

The biggest collection of contributions was tied to engineering firm Mitsunaga &Associates, which employs HCDA board member Lois Mitsunaga.

Kobayashi Group had the second-biggest collection of contributions.

The HCDA board has been criticized in the past for its close ties to real estate development.

The agency’s board has historically been very well represented with architects, developers, engineers, contractors, real estate brokers and construction industry leaders.

Past directors included Walter Kupau of the Carpenters’ Union; Patrick K. Kobayashi of a Kobayashi Group forerunner; and contractor Jay Kadowaki, who was on the recent City Council list of potential appointees with Tamamoto.

The other two names on the recent list given to Abercrombie were Kakaako resident Mat D’Ascoli and Henry Jin Yoon with the Kakaako small business Cafe Duck Butt.

In the past, there also have been directors who represented Kakaako small businesses unconnected with development, including Dexter Okada of seafood distributor U. Okada &Co. and Paul Kimura of City Fender and Body Services.

Kobayashi Group, which is based in Kakaako in the Hokua luxury condo tower the company helped develop in 2002, qualified as representing a small business from the area.

Public testimony submitted for Tamamoto’s confirmation hearing Monday before the Senate Committee on Economic Development, Government Operations and Housing was unanimously positive and dominated by construction industry groups. HCDA executive director Anthony Ching also expressed support for Tamamoto, as did Mary Alice Evans, an HCDA board member and deputy director of the state Department of Business, Economic Development and Tourism.

Ernie Martin, City Council chairman, backed up the Council’s recommendation for Tamamoto as a candidate.

"His expertise in property development and asset management makes him an excellent candidate for the position," he said in written testimony.

Sen. Sam Slom (R, Diamond Head-Kahala-Hawaii Kai) was among the five senators who voted for Tamamoto, suggesting that Tamamoto has broad support in the Senate.

In part, a knowledge and understanding of development has been viewed as helping with the agency’s mission centered on upgrading infrastructure throughout Kakaako to attract mixed-use redevelopment, including residential towers.

HCDA was created in 1976, and development in early decades was slow. Now more towers are being proposed next to existing towers, and increasingly residents in high-rise condos approved years ago by HCDA are now railing against the agency for decisions they perceive as degrading the urban neighborhood generally by reducing open space, views and traffic flow.

HCDA contends that the criticism is unjust, and that a dense urban neighborhood in Kakaako represents smart growth where residents can walk to work, shop and dine in contrast with suburban sprawl jamming Oahu freeways.

The public outcry, however, prompted the Legislature to introduce at least 17 bills in January aimed at imposing changes on HCDA. Nearly all the bills have died. One, however, House Bill 1866, would change aspects of the agency including how directors are appointed.

Currently, the governor appoints all nine HCDA board members overseeing Kakaako, including four cabinet members automatically appointed, a cultural specialist, an at-large member and three from lists supplied by the City Council. Of the three nominees passing through the City Council, two must represent small businesses and one must live in Kakaako.

Initially, HB 1866 proposed having the governor appoint nine members, seven of whom would come from lists offered by legislative leaders, the president of the University of Hawaii, the chief justice of the Hawaii Supreme Court and the board of trustees for the Office of Hawaiian Affairs. The bill has been amended several times and the issue over board composition has not been settled.

The bill is expected to be debated in a conference committee if it passes the Senate Ways and Means Committee on Thursday.