OHA trustees launch new effort to develop Kakaako Makai property

The Office of Hawaiian Affairs on Thursday took the first step toward kick-starting the stalled development of its waterfront holdings in Kakaako, valued at $200 million.

The OHA board of trustees on Thursday formed a special subcommittee that aims to examine policies and development strategies related to its commercial land on Oahu.

When Maui trustee Carmen Hulu Lindsey took over as chairwoman in December, she said getting the highest and best use of OHA’s Kakaako Makai properties would be a priority.

Those properties were given to OHA by the state nearly 10 years ago to end a long-simmering dispute over money owed in public-lands revenue, including a portion of funds generated by airports, state hospitals and public housing over nearly 35 years.

Since taking control of the 30 acres in 2012, OHA has been looking to transform the property into huge profits to support its mission of improving conditions for Native Hawaiians.

But the land has remained undeveloped despite several planning campaigns, development proposals and meetings held statewide to gather input from beneficiaries. In 2014 the state Legislature rejected a proposal to build two residential towers there.

On Thursday the board established a Permitted Interaction Group, a subset of trustees who will examine further ways to develop not only the Kakaako Makai properties, but Na Lama Kukui, the Iwilei shopping center OHA acquired in 2012 as an investment aimed at generating income to support its programs. OHA ended up moving its headquarters to the center on Nimitz Highway.

Lindsey will chair the group with a membership that also includes Leina‘ala Ahu Isa, John Waihee IV and Kalei Akaka. OHA CEO Sylvia Hussey will serve as project manager.

Lindsey said the group will work independently and free of the meeting constraints of the full board, allowing its members to devote greater time and energy to the project.

“Our intention is to climb the mountain faster than we have in the last eight years,” she told trustees during Thursday’s livestreamed meeting.

OHA Board Counsel Robert Klein said the board will be well served by a report from the panel that lays the groundwork for development.

“I would anticipate the next step is, now let’s really talk about the nitty-gritty of development of these properties,” Klein said. “As we know, these properties have been laying fallow for much too long.”

Formation of the committee was approved by a 7-2 vote, with Brendon Kalei- ‘aina Lee and Dan Ahuna opposed.

Lee and Ahuna objected to the broad scope of the panel’s duties and of a timeline that stretches for the rest of the year. Lee also objected to Hussey being assigned as project manager.

“This is the most expensive project manager I’ve ever heard of. I would hope our CEO has more important things to do than project-manage a Permitted Interaction Group,” Lee said.

Lindsey said she didn’t expect the group’s work to extend beyond three months. She added that it’s possible another panel will be convened to work on the project until it can be turned over to OHA’s administration for implementation.