Ka Wai Ola - Office of Hawaiian Affairs, Volume 29, Number 3, 1 March 2012 — Kakaʻako ceded land settlement benefits all people of Hawaiʻi [ARTICLE+ILLUSTRATION]

Kakaʻako ceded land settlement benefits all people of Hawaiʻi

'm back again with a more informed perspective about the Kaka'ako ceded land settlement proposed by Governor Abercrombie. As of this

writing OHA is continuing its due diligence and meetings for community input, and the proposal is being vetted by the state Legislature, whieh has to approve the settlement agreement. The effort to settle the back rent debt owed to OHA is now in its 34th year, fourth govemor and 17th legislative session. Agreement has been elusive to say the least. The good news is

that we have a govemor who is sincere and passionate about wanting to bring closure to this longstanding issue, put it behind us and move forward in building a better Hawai'i. Both sides are working cooperatively in seeking a fair settlement. The state is not in a position to pay cash, whieh would be our preference. Instead the governor offers 10 parcels of land in the Kaka'ako Makai area (next to Kewalo Basin), whieh both parties agree hovers in value at $200 million. But unlike the Department of Hawaiian Home Lands (DHHL), Kamehameha Schools and other Hawaiian institutions, whieh are land trusts, OHA is a money trust. Our charge is to manage the revenue stream that llows to us by virtue of OHA's 20 percent share of revenues derived from certain state lands known as ceded lands. The cash is deposited into OHA's investment portfolio that earns a retum on the investment. This money then goes directly into the Hawaiian economy as programs and services that empower Hawaiians and increase their capacity to build better families and better communities. Accepting a land settlement instead of cash presents some challenges in order to convert the land to a revenue stream. OHA now becomes a landowner who has to don the hat of a developer in order to convert the land to liquid assets. This settlement should be embraced as a significant investment opportunity in the

Hawaiian economy. Consider that OHA money llows to every comer of the state. Our $12.5 million in program grants last year alone was channeled to

communities on every island. Mueh of it translated directly into enhancing family incomes by creating jobs and supporting a statewide network of health, education, recreational and hnaneial services. Our $90 million in bond financing over 30 years assists DHHL to build residential communities on every island, whieh then translates into hundreds of jobs - not just for Hawaiians

but for every person and every business that is connected to building homes. OHA's annual $42 million operating budget also translates into hundreds of jobs, not limited to OHA employees but spread to our network of subcontractors, suppliers, consultants and so forth. Over the years OHA has allocated $9.5 million in support of the 17 Hawaiian-focused charter schools, whieh has literally allowed them to keep their doors open. Our First Hawaiian Bank Mālama Loan program has put money in people's pockets that then How into the marketplace. The list of programs, services and the portals through whieh OHA's resources flows out to every comer of the state is exhaustive. OHA is relevant to the growth of the Hawaiian economy in profound ways. In meeting our obligations to our beneficiaries many of the benefits flow through them to making Hawai'i a better plaee for everyone. We hope legislators and the general public will view the Kaka'ako ceded land settlement as more than simply paying off a debt, and recognize that it's a profound opportunity for OHA to grow its capacity to impact the Hawaiian economy in ways that help everyone. Hawai'i Loa Kū Like Kākou - All Hawai 'i Stand Together. I To comment on this or any other issue of eoneem, feel free to contact me on twitter @PeterApo, Facebook/Peter Apo or PeterAOHA @gmail eom.

PetEr Apo Vice Chair, Trustee, O'ahu