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The Honolulu Advertiser
Posted on: Sunday, January 29, 2006

Bills may set back Kaka'ako initiative

By Andrew Gomes
Advertiser Staff Writer

A large group of mostly Democratic legislators has responded to the recent outcry against a state agency's plan to include residential condominiums in Kaka'ako by proposing bills that could stop or alter the development initiative.

About 30 legislators are proposing at least a dozen bills that would affect the power of the Hawai'i Community Development Authority and its control over development of state land in Kaka'ako.

The agency is considering a plan by Alexander & Baldwin Inc. to build an extension to Kaka'ako Waterfront Park, a public hula amphitheater, farmers' market, shops, restaurants and two condominium towers on about 30 acres of former industrial property surrounding Kewalo Harbor.

A&B's plan states that condo sales are necessary to pay for public improvements. The agency, which tentatively selected A&B's plan as the best of six private proposals responding to an agency request a year ago, also considers homes integral to creating more vibrant activity in the area.

Six acres of slightly inland property would be sold to A&B for about 630 condos, with the rest of the roughly 30 acres leased under an agreement that would earn the state revenue.

But the plan has drawn considerable public criticism over placing 20-story condos makai of Ala Moana in return for upgrading the rest of the area that includes a harborfront largely inaccessible to the public.

Legislators — nearly all of them Democrats — responded to the outcry with proposed legislation, drawing the debate over how to best develop the property into the halls of the Capitol.

FLURRY OF BILLS

Two bills would authorize the agency to finance the proposed project without condos, using revenue bonds. The agency would incur the bond debt, which would be paid off using revenue from the project such as rent from commercial tenants, though the bill lacks financial details.

A few bills would require the agency to obtain legislative approval to sell state land under agency control. One bill would add two additional agency directors recommended by the Senate president and House speaker. Another bill would abolish the agency.

None of the bills would appropriate state general-fund money to finance a redevelopment project with no condos and more park space.

It is too early to predict whether any bill will stop or alter A&B's proposal, given that bill language is often amended and could face a veto by Gov. Linda Lingle even if approved by enough lawmakers.

A spokesman for the governor said it would be premature to discuss vetoing bills, but Lingle previously has said she supports the agency's land development initiative partnering with a private developer, as well as the agency's vision for mixing public, commercial and residential uses on land makai of Ala Moana.

Rep. Kirk Caldwell, D-24th (Manoa), said he expects his colleagues will pass legislation related to Kaka'ako development because selling public land for private development has sparked significant public reaction that has included testimony at public hearings, rallies and a community-generated alternate development plan.

"It's become a flash point and focal point for the people not just of O'ahu but for the whole state," he said, comparing the Kaka'ako peninsula plan to the 1960s plan to devote a large part of Magic Island to hotel and commercial use that was nixed by Gov. John Burns.

"I watched (the Kaka'ako peninsula development process) unfold," he said. "The HCDA could have done a better job. I don't think they sought out the public input, and I think they were blindsided by the public reaction."

Caldwell said two bills he is sponsoring, which would finance development without condos, using state revenue bonds, are not perfect, but he hopes they would encourage A&B and the agency to explore the idea.

"I don't have all the answers," he said. "It's a way for the Legislature to step in and try to mediate this dispute, and give the public their day in court."

Daniel Dinell, agency executive director, on Friday testified against the first agency-related bill to be heard before two House committees. The bill would give the Legislature the power to reject land sales by the HCDA, the High Technology Development Corp. and the Board of Land & Natural Resources.

Dinell said the agency will not rush to execute a binding development agreement and land sale with A&B before the Legislature can act but will try over the next several months to sign a nonbinding letter of intent followed by a binding development agreement with A&B, subject to board approval.

"HCDA respects the Legislature's prerogatives over the public-policy issues that this development proposal has fostered," he said. "We haven't come to a final decision, and we'll continue to talk with the Legislature, the community and A&B."

The agency's board, which next meets on Wednesday, will not make any decisions on A&B's proposal at that meeting, according to a meeting agenda notice.

Michael Kliks, a member of grassroots organization Save Kaka'ako Makai, said he has reservations as to whether any of the bills will derail A&B's proposal, which earlier this month was endorsed by a subcommittee of agency directors.

"I'm not sure it's possible," he said. But Kliks added that he hopes that community and legislative support for the bills will sway agency board members from supporting a plan that includes selling land for condo development. "I wish they'd just see the light and move on."

About 10 opponents of the A&B proposal expressed support for the bill that was heard on Friday and would allow the Legislature to disapprove agency land sales.

"The sale of public land should only be relegated to our elected government bodies," said Sol Nalua'i, a retiree whose family has boat operations at Kewalo Harbor.

Nalua'i told members of the House committees on Legislative Management and Water, Land & Ocean Resources that the government-appointed directors of the Hawai'i Community Development Authority are not accountable to the public.

"This legislation brings a much-needed component of public participation to the debate on public lands," attorney Bill Lawson added in written testimony. "It is wrong in principle to sell state land for private uses without extensive public consideration and debate on the cost-benefit ratio."

The committees voted to pass the bill along to House Judiciary and Finance committees.

LAWMAKER SUPPORT

Broader support for other Kaka'ako-development-related bills is expected to come from other influential lawmakers, including Senate President Robert Bunda, who in a speech during the opening day of the session, said "we certainly don't need to sell off public lands without very careful review, whether they are in Kaka'ako or anywhere else."

Bunda, D-22nd (North Shore, Wahiawa), has introduced a bill that would reimburse A&B for expenses related to the agency's request for proposals until Sept. 14, when its plan was tentatively selected.

Sen. Russell Kokubun, D-2nd (S. Hilo, Puna, Ka'u) and chairman of the Senate Water, Land and Agriculture Committee, helped introduce three bills addressing the agency.

One would transfer approval of agency development plans from the governor to the Legislature. Another would add two additional agency directors suggested by the Senate president and House speaker. The third would require legislative approval for land sales by the agency.

"I think it's so important to have the community's perspective involved at the planning level," Kokubun said.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.