Ka Wai Ola - Office of Hawaiian Affairs, Volume 29, Number 1, 1 Ianuali 2012 — Proposed land deal is a work is progress [ARTICLE+ILLUSTRATION]

Proposed land deal is a work is progress

ByTreenaShapiro There's nothing tricky or complicated about a proposed settlement with the state that would resolve the Office of Hawaiian Affairs' longstanding ceded land claims, says O'ahu Trustee Peter Apo. "The state legally owes the Office of Hawaiian Affairs and its beneficiaries $200 million. They have no cash, so they're offering to pay us in land instead of writing a eheek," he explains. Speaking to about 50 people at a puhlie meeting at McKMey High School on Dec. 13, Apo emphasized that the tentative agreement between the state and OHA applies only to pastdue revenue on ceded lands. "It does not threaten any future claims that Hawaiians may have. It does not diminish any entitlements that OHA has, or the Department of Hawaiian Home Lands. It's really a pretty simple deal," he stressed. On Nov. 16, Gov. Neil Abercrombie and OHA announced an agreement in principle on a settlement that would resolve past-due revenue disputes through conveyance of $200 million in Kaka'ako Makai real estate. The agreement represents a reasonable compromise on OHA's share of Puhlie Land Trust receipts from Nov. 7, 1978, through July 1, 2012. The settlement is

subject to legislative approval. Under the proposed settlement, OHA would receive 10 parcels comprising 30 acres of land near the Kaka'ako waterfront, including the land under the former Fisherman's Wharf and John Dominis restaurants. The McKinley meeting was part of a series of meetings conducted statewide last month to offer community members an overview of the settlement and solicit their feedback. A second round of meetings is tentatively scheduled for February to ensure stakeholders ean remain engaged throughout the process. "This is a major issue that will involve the Native Hawaiian community because $200 million in real estate is a large sum of money," said OHA Chief Executive Officer Clyde Nāmu'o, who retired Dec. 30. "We take this very, very seriously." During the meeting, both Apo and Nāmu'o clarified that the settlement is not a done deal. "There is no settlement agreement drafted, nothing signed. We are dealing with the offer that has been made by the State of Hawai'i," Nāmu'o explained. In addition to legislative approval, OHA Trustees must decide whether to move forward with the settlement. That decision will be made SEE KAKA'AKO ON PAGE 10

STAY UPDATED ON THE PR0P0SED SETTLEMENT 0HA has developed a web site at www.oha. org/ka kaako that is updated with the latest on the proposed settlement. The resources page of the web site includes court cases and decisions that set the legal basis forthe land deal, the latest due diligence information on the proposed settlement, and links to the master plans forthe Kaka'ako district. The site will be updated with 0HA's due diligence information as it becomes available. This involves determining whetherthere are any barriers, legal or otherwise, to the proposed settlement. The investigation will include looking into the titles and appraised values forthe properties as well as environmental, engineering and development issues. 0HA has completed a series of 10 eommunity meetings to inform beneficiaries about the proposal and to get initial feedback on the proposal. 0HA is planning a second round of eommunity meetings to share the results of 0HA's due diligence investigations tentatively scheduled for February. The dates, locations and times of those meetings will be updated on our web site as they are confirmed. Parcel I replacing Parcel J The initial proposal bythe state included a parcel of land on the 'Ewa side of the John A. Burns School of Medicine. The University of Hawai'i has a long-term lease on the property and currently uses the parcel for parking. The state is proposing dropping the parcel from the settlement, and substituting a parcel of land at the corner of Ala Moana Boulevard and Forrest Avenue next to the old pumping station. Updated information will be posted on our web site as it becomes available. E kala mai In our December issue, a map showing the Kaka'ako parcels in the proposed land deal incorrectly described parcel K, at the end of 'Āhui Street, as being comprised of public trust lands.

GOVERNANGE To restore pono and ea, Native Hawaiians will achieve self-gover-nanee, after whieh the assets of OHA will be transferred to the new governing entity.

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Community meetings on the proposed land deal comprising 1 0 parcels in Kaka'ako Makai took plaee in December. A second round of meetings is tentatively planned for February. The land deal is subject to legislative approval and applies only to pastdue Public Land Trust revenue owed to OHA.

KAKA'AKO

Continued from page 5 after OHA does due diligence and accepts more public comment. "The Office of Hawaiian Affairs could still walk away from the deal," Nāmu'o said. Nāmu'o offered some historical context on the Public Land Trust past-due revenue dispute, whieh has been ongoing since the state Constitution was amended in 1978. The constitutional amendments established OHA and gave the agency the right to a portion of ineome and proceeds from the Public Land Trust, whieh was established by the Admission Act and is comprised in large part of the former crown and government lands of the Hawaiian Kingdom that were ceded by the Republic of Hawai'i to the United States upon annexation in 1898. OHA currently receives $15.1 million in Public Land Trust revenue annually to improve conditions for Native Hawaiians. The settlement proposal will not affect this figure, but rather will settle OHA's outstanding claims for pastdue revenue generated from sites such as state hospitals, public housing and duty-free shops at airports. Those who attended the meeting raised questions about how the $200 million sum was reached, particularly since at one point OHA's claims were valued at approximately $1.2 hillion. Nāmu'o explained that in 2001 the state Supreme Court ruled OHA did not have the right to interest on the past-due revenue, whieh was included in the $1.2 hillion estimate. However, he noted the $200 million does offer some compensation for decades of overdue payments. The $200 million figure was reached in a 2008 settlement agreement with Gov. Linda Lingle's

administration, whieh would have settled the claims with land transfers in Kaka'ako, Kalaeloa and Hilo. This time the parcels are all in one area, and contiguous for the most part, Nāmu'o said. Other questions involved OHA's plans for the land, all of whieh is zoned for commercial use, and mueh of whieh is leased. The Trustees will need to create a master plan to determine how best to administer and develop the land in order to maximize its potential. "We know generally that this is waterfront property in the urban center of O'ahu, so it has great value," Nāmu'o said. The real estate deal raised concerns from a few people at the meeting, including Hawaiian activist Leon Siu. "Is this actually OHA's mandate, to become a developer and a designer of properties? Would that distract from OHA's actual mandate (to improve conditions of Native Hawaiians)?" he asked. Nāmu'o said the land deal would not necessarily distract the Trustees from their core mission to work toward the betterment of all Hawaiians, because the Trustees wouldn't be the ones working full-time on managing the new properties, whieh would become part of OHA's real estate portfolio. Miehelle Matson, who servedon the Kaka'ako Makai Community Planning Advisory Council, received assurance that OHA would follow the CPAC's master plan as it develops its own plan for the land. Matson noted the master plan contains guiding principles that include historic, cultural and environmental preservation. The proposed settlement will likely be amended as it is considered during the 2012 legislative session. As it moves forward, OHA will accept comments and questions at Kakaako. comments@oha.org. ■ Treena Shapiro, a freelance writer, is a former reporter for the Honolulu Star-Bulletin and Honolulu Advertiser.

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ln foreground, a waterfront parcel that is part of the proposed land deal. - Photo: John De Mello