Ka Wai Ola - Office of Hawaiian Affairs, Volume 22, Number 2, 1 February 2005 — LEASEHOLD REPEAL PASSES [ARTICLE+ILLUSTRATION]

LEASEHOLD REPEAL PASSES

Council votes to end forced conversions immediately; condo lessees file suit

By Sterling Kini Wong Honolulu's mandatory leasehold conversion law seems destined to be wiped elean from the books following the city council's 6-3 vote on Jan. 26 to repeal the controversial ordinance.Council members Todd Apo, Donovan Dela Cruz, Ann Kobayashi, Rod Tam, Romy Cachola and Nestor Garcia voted in favor of the bill, while Barbara Marshall, Gary Okino and Charles Djou voted against it. Supporters of Hawaiian trusts and other landowners were relieved and elated by the outcome of the vote, holding hands and breaking into a rendition of Hawai'i Pono'ī, the anthem of the Hawaiian Kingdom that is now the state song. Bill 53, whieh would abolish the conversion law, now awaits the approval of Mayor Mufi Hannemann, who has said he will sign the bill. However, it seems likely that the city has still not heard the last of Chapter 38, the leasehold conversion law passed in 1991. Prior to the council's vote, two lawsuits were filed against the city by lessees of the Admiral Thomas and Kāhala Beach condominium buildings. Both groups had already initiated the leasehold conversion process and are asking the city to let them complete the conversion of their condominiums.

The leasehold conversion law allowed the city to use its condemnation powers to force condominium landowners to sell the fee interest in the land under their buildings to qualified lessees. Many lessees support the law because it provided them with a process to purchase feesimple interest in their homes. However, landowners, whieh include ali'i trusts, churches and small families, have likened the law to legalized theft. The argument of the eouneil members who voted to repeal the law boiled down to fairness and how the city should determine public purpose when using its condemnation powers. Councilmember Nestor Garcia said that the city should not get involved in private contracts and favor one party over another, especially when the intervention benefits just a few interests. "Chapter 38 promotes unfaimess," said Garcia, "that's why it was so controversial." Wayne Kaho'onei Panoke of the 'īlio'ulaokalani Coalition, the political action group that coordinated a march in September in support of Bill 53, said that the repeal was not only a victory for Hawaiians, but all of Hawai'i. "This ensures that our trust lands will remain in Hawaiian hands in perpetuity," he said. Ray Soon, Kamehameha Schools' vice

president for community relations and communications, said that the eouneil made the right decision by repealing the conversion law. "The decision preserves the right of landowners to make decisions that they believe is in the best interest of their beneficiaries. For Kamehameha Schools and the other Hawaiian landowners, it's crucial that these lands

remain controlled by Hawaiians." Soon added that the school's attorneys are still deciding whether to intervene in the lawsuit filed by the lessees of the Kāhala Beach, whieh Kamehameha Schools owns. "The Kāhala Beach is critical to Kamehameha Schools' portfolio, and we will do whatever it takes to protect those lands," he said. ■

Aunty Frenchy De Soto, longtime Hawaiian leader and a founder of OHA, shed tears of relief after the Honolulu City Oouneil voted in favor of repealing the city's forced lease-to-fee COnversion law. Photo: Aukai Reynolds