Ka Wai Ola - Office of Hawaiian Affairs, Volume 28, Number 12, 1 December 2011 — PAST DUE [ARTICLE+ILLUSTRATION]

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Hawaiians are oweel revenues from the state's use of lands in the Puhlie Land Trust. The back payments stretch to 1978. A tentative settlement to resolve the longstanding issue is up for discussion

By Harold Nedd n the lead up to the 2012 legislative session, the Office of Hawaiian Affairs is holding a series of meetings as part of a wider effort to inform and consult with the community on the state's offer to settle longstanding claims for past-due revenues owed to OHA from the Puhlie Land Trust. The first round will consist of 1 1 puhlie meetings at various locations throughout the state, where OHA will review the terms of the tentative deal that, if approved by the Hawai'i Legislature, wouldgive OHA 25 acres of largely waterfront property in Kaka'ako valued at an

estimated $200 million. These meetings, the first of whieh was held on Dec. 2 on Maui, will also afford the Hawaiian community the opportunity to voice their mana'o on the tentative deal that would resolve a dispute that dates back to when the agency was formed in 1978. At the same time, the community meetings will provide OHA with an opportunity to share its vision for the 10 parcels that could potentially bring millions into the agency to help fund communitybased programs aimed at improving conditions for Native Hawaiians. "It may not be a perfect deal, but it is worth pursuing," OHA's soon-

to-retire Chief Executive Officer Clyde Nāmu'o said at a recent meeting with nearly two dozen stakeholders from the Native Hawaiian community. The back payments due to OHA have triggered mulhple lawsuits against the state. The payments are Native Hawaiians' share of revenues from the state's use of lands in the Puhlie Land Trust. That land trust, comprising 1.2 million acres, includes but isn't limited to former Hawaiian kingdom lands that were ceded to the U.S. government upon annexation and later transferred to the state govemment at the time of statehood. The Puhlie Land

Trust is reserved for five purposes, including for improving the conditions of Native Hawaiians. Nāmu'o, who plans to step down as CEO on Dec. 30, told stakeholders that two rounds of community meetings are planned to discuss the tentative deal reached with the state. In the first round, OHA will review the terms of the deal as well as potential opportunities and get feedback from the community. In the second round of meetings, OH A will revisit the same communities and share reaction from the various community meetings as well as key points raised about the proposed deal. The briefing eame a day after Gov. Neil Abercrombie announced on Nov. 16 the settlement offer that state lawmakers are expected to vote on before the next legislative session ends in May 2012. As Abercrombie explained, "If ultimately approved, this agreement will finally and completely resolve any and all claims relating to OHA's share of ceded land receipts from Nov.7, 1978, to July 1,2012." The settlement would not affect the $15.1 million in Puhlie Land Trust revenue OHA receives annually from the state, whieh OHA uses to fulfill its statutory mandate of improving conditions of Native Hawaiians. The appraisals of the properties are based on 201 1 market values. "I think it's a fair settlement," said OHA attorney Bill Meheula, who negotiated the deal. Even so, OHA Chairperson Colette Machado is mindful of potential hurdles that might have to be crossed as the closely watched issue unfolds. She is anticipating resistance from opposing groups. "We will have a big battle in the Legislature," Machado told stakeholders. "But this proposal will help unify us and bring out the best in our leadership skills." Already, the tentative pact has inspired support and confidence from some of OHA's key allies, including former Gov. John Waihe'e III, Chairman of the five-member Native Hawaiian Roll Commission, whieh was established by law in July to play

a key role in the nation-building process for Native Hawaiians. "I am glad that the issue is working toward a resolution," Waihe'e said. "The sooner the deal gets done, the better. We're talking about money that is owed to us." State Senate Majority Leader Brickwood Galuteria, who represents Kaka'ako, attended the Governor's news conference. In a conversation afterward, he suggested that he felt duty-bound to help overcome barriers to securing legislative approval for the deal. "We have to finish this settlement," Galuteria said. "Now is the time to strike this deal." OHA and the state have been close to a deal before. In 2008, OHA reached a similar tentative settlement with former Gov. Linda Lingle's administration for about $200 million in land and cash. But state lawmakers did not approve that deal, whieh included $13 million in cash and about 209 acres of commercial properties on O'ahu and the Big Island. Among those at the center of that storm was Meheula, who does not expect the same kind of battle this time around. "We all learned from the last time," Meheula said, referring to 2008. Subsequent proposals have also died at the Legislature. Community consultation and outreach throughout the entire process are top priorities this time around. This is a direct response to a sense that the broad Hawaiian community was not consulted on the 2008 proposal. Meheula said he believes OHA's chances are better this time for a number of reasons. For one thing, the 10 parcels offered in the latest proposal are clustered together in the same area in Ka'akako, whieh is under the jurisdiction of the Hawai'i Community Development Authority. Meaning, OHA - like any other landowner in the area - would have to get any proposed development reviewed and allow puhlie comment on projects. In addition, Meheula feels strongly that the latest offer will be SEE PAST DUE ON PAGE 28

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In foreground, a waterfront parcel that is part of the proposed land deal. This parcel is designated as parcel B on the adjoining map on page 23 - Photos: John De Mello

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Continued from page 18 buoyed by Attorney General David Louie's puhlie statement about the settlement being totally unrelated to any "overthrow or sovereignty claims." "He had to eome out and say it this time," Meheula said, adding that the statement should help avoid major problems of the same nature this go-around in the Hawai'i Legislature. "This wasn't said last time." The potential for new conflicts should also lessen from the deal being nonbinding, Meheula said. "It's like a letter of intent," he said. "But it's enough for OHA to spend money to do the due diligence. If we need to change terms, we will, as long as it makes sense." For his part, Louie told reporters during the news conference that he felt "the settlement represents a reasonable compromise." "Nobody is totally happy, but we wanted to bring in the community and the Legislature early in the process so they ean weigh in," he said. Meanwhile, OHA officials have moved quickly to guide expectations. Speaking to reporters at the Governor's news conference, Machado said she was eager to begin the planning process, but she also expressed her desire to be sensitive to residents' concerns about open-space preservation. "It is the largest open space left in downtown Honolulu," Machado said. "With that in mind, we want to work with everyone." In answering questions at a meeting with stakeholders the day after the press conference, Machado's sentiments were echoed by Nāmu'o as he reassured the group that OHA is keenly aware of potential environmental concerns that could help determine whether the properties are worth investing in. Some of the parcels have the potential to generate revenue. "If the deal goes through, those revenues would go to OHA," Nāmu'o said. In years past, for instance, the site of the former John Dominis Restaurant, whieh is part of the proposed settlement, generated $1 million. Walking stakeholders through the list of properties, Nāmu'o shed light on his thinking for the parcel housing the AAFES Building, at 919 Ala Moana Blvd., saying it could be used to construct a new headquarters for OHA

or perhaps the headquarters of a new Native Hawaiian government. Nāmu'o also pointed out that OHA ean be more realistic about the chances of reuse of all the properties onee the agency is able to push deeper into assessing the risks of developing these properties. "Our first obligation is to make sure there are no legal or other barriers to using the land in the best interest of Native Hawaiians," Nāmu'o said. If all goes well, OHA would create a

master plan with the ability to forge strong relationships with key stakeholders such as Kamehameha Schools, the Hawai'i Community Development Authority and the University of Hawai'i, Nāmu'o said. "OHA needs to make sure the land is used in a thoughtful way that is helpful to the entire community," Nāmu'o said. "We will halanee cultural and environmental considerations with the need to support programs that benefit the Native Hawaiian community." ■

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AB0VE: OHA Chairperson Colefte Machado and Gov. Neil Abercrombie at the announeemenl of the proposed ceded lands settement. BEL0W: Joining them for a team cheer are OHA aftorney Bill Meheula, left, and State Aftorney General David Louie, far right. - Courtesy photo by Ricky Li/0ffice of the Governor