| This story has been corrected. |
An effort to permit residential towers on land owned by the state Office of Hawaiian affairs in a makai portion of Kakaako could be on shaky ground at the Legislature.
A bill allowing such development on three parcels between Kewalo Basin and Honolulu Harbor makai of Ala Moana Boulevard cleared a floor vote in the House on Tuesday, positioning the bill for consideration by a conference committee of House and Senate leaders.
However, one influential lawmaker, House Majority Leader Scott Saiki (D, Downtown-Kakaako-McCully), predicted that there would be irreconcilable differences in conference committee and that Senate Bill 3122 won’t become law.
During a break from the floor session, Saiki met with members of the Save Our Kaka‘ako Coalition assembled at the state Capitol to rally against the bill, and told them that House leaders have heard their concerns over allowing residential development in the Kakaako makai area.
"You shouldn’t feel too worried about (the bill)," he told the group before posing for a photo with coalition members.
Sen. David Ige (D, Pearl Harbor-Pearl City-Aiea) and Rep. Marcus Oshiro (D, Wahiawa-Whitmore-Poamoho) also joined Saiki for the photo, which took place before the floor discussion and vote on the bill.
During the floor discussion, Oshiro indicated that he was voting against SB 3122 to uphold a line that he and 15 other House members drew in 2006 by passing legislation prohibiting residential use in Kakaako makai.
The 2006 law blocked local firm Alexander & Baldwin Inc. from developing two 200-foot condominium towers on one parcel under a plan approved by the Hawaii Community Development Authority and supported by then-Gov. Linda Lingle.
"We made a policy decision back then," Oshiro said.
SB 3122 would allow residential use of the former A&B tower site within an existing 200-foot height limit along with two parcels fronting Ala Moana Boulevard proposed for a 100 percent increase in the height limit to 400 feet.
Oshiro was one of 10 House members who voted against advancing SB 3122. Several other members expressed reservations, though the bill passed with a majority in the 51-member chamber.
OHA is seeking permission to develop housing in Kakaako makai because the commercial development allowed under current zoning would generate less income for its programs and services benefiting Native Hawaiians.
OHA accepted 31 acres of state land in Kakaako makai worth $200 million two years ago in a negotiated settlement with the administration of Gov. Neil Abercrombie that satisfied disputed ceded-land revenue claims that festered for three decades.
Oshiro said he met with OHA representatives two years ago and was assured that they were fine with the proposed settlement that included the restriction on residential use.
Saiki voted to pass the bill, though during the floor break he suggested that the administration should be the one adjusting the value of the settlement if warranted.
"The governor negotiated the settlement," he said. "The Legislature didn’t negotiate the settlement."
The only House member to speak up for OHA’s position during the floor discussion was Rep. Jo Jordan (D, Waianae-Makaha-Makua).
Jordan said she voted to approve the 2012 OHA settlement even though she didn’t think it was a great deal. She acknowledged that lawmakers saw fit to prohibit A&B and others from developing condo towers on state land in 2006, but said the situation today is different. "Times change," she said.
Ron Iwami, president of Friends of Kewalos, said his community group fought hard to prevent Kakaako makai from turning into a residential community bordering Kakaako Waterfront Park, and remains concerned that allowing OHA to develop homes in the area could open the door to adjacent landowners such as Kamehameha Schools asking for equal treatment.
"If Kamehameha Schools says, ‘We want to build because OHA gets to build,’ it’s hard to stop it," he said.
CORRECTION: David Ige is a state senator, not a representative, as reported in an earlier version of this story and in the April 9 print edition.
