Scrutiny of a proposed ceded lands settlement began at the Capitol today, while the Office of Hawaiian Affairs continues its look at $200 million worth of Kakaako land parcels it could receive.
Gov. Neil Abercrombie came before lawmakers Monday to testify in support of a deal announced last fall that aims to settle ceded lands revenue claims from 1978 through June 30, 2012.
“This is a good resolution to what has been an ongoing challenge over many legislatures and many years,” Abercrombie said. "If this isn't passed -- and it has the sanction of OHE at this time -- it will end up the Hawaiians will have 100% of nothing again.”
The Hawaii Supreme Court has said on three occasions a settlement is for the legislature to decide. The last attempt for a legislative solution was in 2008.
The proposal would give the Office of Hawaiian Affairs $200 million worth of prime Kakaako makai land, 10 parcels covering 30 acres.
It would not restrict future sovereignty claims; future land-revenue claims would not be restricted as they would have been in the attempted 2008 settlement that would have given OHA three parcels of land worth an estimated $187 million, $13 million in cash and a minimum of $15 million dollars annually; in exchange; OHA would have waived further claims to ceded land income.
The land in the latest proposed settlement comes with development restrictions such as height limits.
"Take a look. If you own land in Kakaako on the makai side and wanted to put up workforce housing, you no longer can do that, so your land is really worth much, much less,” said Rep. Cynthia Thielen, a member of the House Water, Land & Ocean Resources Committee.
"I’m really glad you asked the question, and our eyes are wide open,” said OHA Chairperson Collette Machado, “because our own beneficiaries have been criticizing us that these lands may not be worthwhile. So we have been asking hard questions, with our consultants and with HCDA."
The Hawaii Community Development Authority, which would retain zoning and planning oversight, says due to density allowances significant square footage of development can still take place. Leases already generate about $1.1 million in annual revenue.
“The restrictions on the land have been taken into account in determining the value,” said Attorney General David Louie. “So that still represents a good value, and it represents contiguous parcels of property that can all be master planned by OHA under the overall jurisdiction of HCDA, which OHA has also agreed to.”
“It has the value now of $200 million-plus and will likely increase within the terms and conditions that exist for HCDA right now,” the governor said. “The administration had an assessment made. OHA had an assessment made independent of one another, and they came to the same conclusion.”
“These lands are valuable lands and this is how we see it, that they will help fund the future nation of Hawaii,” Machado said, adding the lands along with Kahoolawe and Wao Kele O Puna will lay the foundation of assets for the sovereignty movement. “As soon as our nation is built, those three parcels will be given to the nation as part of their inventory. This will not be OHA's lands. We want this to be clearly understood by everyone.”
OHA has until March 1st to complete due diligence on the land and buildings; consultants are working on a price estimate for lead remediation affecting at least one parcel.
Legislative committees will take up the measure again later this week.
