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In 2012, the Office of Hawaiian Affairs negotiated a settlement agreement with the Abercrombie administration to satisfy the state’s obligation to pay public land trust proceeds that were owed to OHA for the period from Nov. 30, 1978, through June 30, 2012. The agreement called for the transfer of nine mixed waterfront parcels at Kakaako Makai to OHA. OHA had identified the parcels that were valued at $200 million based upon appraisals made on the commercial zoning of the lands.
The settlement agreement sounded like a good idea, but now, 10 years later, the current OHA board believes it was a bad deal. Kakaako Makai sits atop a toxic landfill that must be remediated and the wharf requires major repairs — the cost of this work alone may exceed $100 million. High-rise buildings may obstruct the airport flight path. Sea-level rise is impending.
The lands were conveyed subject to future zoning approvals by the Hawaii Community Development Authority. OHA testified in support of this deal, without reservation. All of this took place in 2012, which was six years after the Legislature prohibited residential development on all Kakaako Makai lands, in response to several years of public opposition to high-rise residential proposals.
Whatever plans OHA trustees at the time had for commercial development on those parcels apparently is not enough for the current trustees. Instead, OHA seeks to repeal the state law ban on residential development. But their proposal goes beyond just undoing the prohibition to residential development.
>> RELATED: On Politics: Let good public planning for Kakaako waterfront prevail
>> RELATED: Column: OHA helped drive 2012 deal for Kakaako; build on that foundation
OHA wants specific parcels to go up to 400 feet, which would be a series of 40-story buildings. Setting aside whether that’s a good idea from a land-use perspective, this would mean the Legislature would be doing spot zoning, and would open the doors for any landowner from anywhere in Hawaii, to come to the Legislature for the same treatment, whether it makes sense or whether there is neighborhood opposition. It would be a very bad precedent.
OHA wants to build “affordable” housing to house its Hawaiian beneficiaries. But there is no guarantee that the housing in this development will be affordable. And federal housing laws do not allow OHA to limit the housing units to only Hawaiian persons.
All of these Kakaako Makai challenges apply to any developer, not just OHA. We support OHA and our collective mission to advance the Hawaiian community. This is why, just nine months ago, we approved more public land trust payments to OHA ($64 million for back pay and an annual payment of $21.5 million), funded the Kalima class-action lawsuit ($328 million) and approved a mutual stewardship governance model for Mauna Kea.
But the Legislature’s work is not over. We want to work with OHA to resolve this matter in a reasonable and practical way. One option is to reopen the settlement agreement and negotiate in good faith a new package comprised of funds and an exchange of conducive developable land that will put OHA on a faster track to reach its fiduciary, housing and other goals for their beneficiaries.
We anticipate that the broader Hawaiian community wants us to work together. We agree. Let’s get to work.
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OHA leader, trustee write about justice at Hakuone
For perspectives from the Office of Hawaiian Affairs on the Kakaako Makai issue, see “Island Voices” columns published in the Star-Advertiser on Dec. 11 and Jan. 8. A couple of excerpts from those pieces:
>> “Allow OHA to develop Kaka‘ako Makai,” by OHA CEO Sylvia Hussey (Dec. 11, online at 808ne.ws/HusseyKakaako): “Before the elections, we heard promises about doing right by beneficiaries of homestead trust lands. Promises to address the injustice of Native Hawaiians being unable to afford a home in the land of their ancestors. We don’t claim to be able to solve the housing crisis with what we build in Hakuone. But Hawaiians should be making decisions about our lands for our people.”
>> “Kakaako Makai intent in 2012 needs to become reality in 2023,” by OHA trustee Mililani Trask (Jan. 8, online at 808ne.ws/TraskKakaako): “I have a fiduciary obligation to ensure that OHA realizes optimum value from our Kakaako parcels, known collectively now as Hakuone. Hawaiians must be free to do what is right and smart to realize the full value of their lands. Developers on the mauka side of Ala Moana Boulevard do not have their hands tied. So, why have lawmakers placed obstacles in the way of OHA delivering for its beneficiaries? That needs to change.”
House Speaker Scott K. Saiki represents House District 25 (Ala Moana, Kakaako, Downtown); state Sen. Sharon Y. Moriwaki represents Senate District 12 (Waikiki, Ala Moana, Kakaako, McCully).
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