Bill would force sale
of commercial landIts introducers cite the impact
By Gordon Y.K. Pang, Star-Bulletin
of high rents upon local businessesNick Wallner says it may be too late to save his building materials business in Mapunapuna, but he believes a bill before the City Council could help other struggling businesses that lease land.
The Council yesterday advanced a bill that would allow the city to force landowners to sell the fee on their leasehold commercial properties at appraised values.
Bill introducers John Henry Felix and Andy Mirikitani said mandatory lease-to-fee conversion is a logical step since it is already available to the city for single-family and condominium properties.
Supporters hailed the bill as a move that would help stimulate the sagging economy.
Whether the bill gets a hearing before Policy Chairman Jon Yoshimura's committee is questionable, however. Yoshimura said late yesterday he's inclined not to hear it.
"I don't think there's anything that's going to make me change my mind," he said. "I think business people get into lease situations fully knowing what they're getting into."
Wallner said one of the determining factors when he decided to close shop in 1992 was when he learned that the lease rent for his commercial properties was leaping more than six times.
Today, he pays $206,000 annually on property he paid $31,000 for when he bought Aloha State Sales in 1981. He now subleases the property to several industrial and office interests, he said.
"We're just like hundreds of others who have either gone into bankruptcy or had to liquidate their businesses," Wallner said.
Felix said Wallner's story is typical of other fledgling businesses.
"The economy is in the doldrums, and people who are leasing in commercial spaces are hurting," he said.
"Many businesses have been forced to pay exorbitant and unaffordable lease rents," Mirikitani said.
Mike Sklarz, research director for Prudential Locations Inc., also hailed the bill.
"Ground rents were raised to exorbitant prices based on the bubble prices of the 1989-90 period," when Asian investors flooded the commercial real estate market with cash, Sklarz said.
Businesses in the Mapunapuna, airport and Kakaako areas were hardest hit, he said.
Bishop Estate spokesman Kekoa Paulsen said the estate will fight the bill as strongly as it fought the lease-to-fee conversion of its Kuapa Isle townhouse condominiums.
"It's one of those tired, old ideas that keep coming up," he said.
"We hope that our policymakers will take another look at this thing and maybe clarify what it is they're trying to achieve, particularly given these economic times."
Many testify against
Con Con at hearingAn ACLU official says it poses
By Craig Gima, Star-Bulletin
a danger to fundamental rightsA hearing on whether to put the question of holding a constitutional convention on November's general election ballot drew a large crowd to the state Capitol this morning.
More than 35 people signed up to testify before the Senate Judiciary Committee. Most of the testimony -- from labor unions, the Office of Hawaiian Affairs, same-sex marriage supporters, and others -- was against the bill to give voters another chance at voting on a Con Con.
"A Con Con at this time poses a danger to fundamental rights," testified ACLU Executive Director Vanessa Chong.
"Hard-won rights relating to the status of native Hawaiians, women, labor and the right to privacy and equal protection are just a few of the areas that have already been targeted for elimination or severe reduction by various groups in the community."
Mark Bennett, the attorney who filed the lawsuit seeking to overturn the Hawaii Supreme Court's ruling on the Con Con, testified in favor of the bill.
"I believe that is fair, just, and appropriate for voters to have an opportunity in 1998 to vote on the convention question, because I do not think they had a fair opportunity to do so in 1996," he said.
"Yes" votes on the Con Con outnumbered "no" votes in the 1996 election.
But the state Supreme Court ruled blank and torn ballots must be counted in determining the total number of votes cast on the question. Essentially, blank ballots were counted as "no" votes, defeating the measure.
A federal appeals court last month upheld the state Supreme Court decision.
In its testimony against putting the Con Con question back on the ballot for voters, OHA suggested a Con Con could wipe out native Hawaiian entitlements.
"The climate of the Legislature, and actions by state administration and state officials toward native Hawaiian rights, privileges, benefits, and customary and traditional practices reflect a hostile and impatient tone which compels OHA to oppose a constitutional convention," testified OHA trustee Haunani Apoliona.
The International Longshore and Warehouse Union testified there is no need for a Con Con and spending the money to hold a convention would not be a prudent use of taxpayer dollars.
"Emotional issues are likely to dominate the constitutional convention, only to divide our community," the ILWU said in its testimony.
Rob Burns of Portlock testified, "I feel the voters should be allowed to decide on an issue such as this, in a democracy such as ours.
"The state finds money for far more frivolous things -- it can find money for this. Let the people decide."
Brook Lee thanks lawmakers
Arakaki conspicuously absent
By Craig Gima, Star-BulletinWhile Brook Lee was thanking members of the House of Representatives for helping to pass a $3.3 million appropriation to bring the Miss Universe pageant to Hawaii next month, one lawmaker was conspicuous by his absence. Rep. Dennis Arakaki (D, Kalihi Valley), a critic of the appropriation, said he did not plan to boycott the House chamber appearance of Lee, a Pearl City resident who is the current Miss Universe.
"It just so happens that I was talking to the people who run the homeless shelters, and they were talking about shutting down their programs," he said.
"After talking to them, I really didn't feel like going back in."
Earlier in the day, Arakaki was at a proclamation signing for the Hawaii Food Bank. He said the food bank is experiencing an increase in demand and will need a lot more money this year.
"Those two things in combination got to me, and I wasn't in a real festive mood," he said.
"I think things happen for a reason. Something just put those things on my heart, and I reacted to that emotionally."
Arakaki emphasized he is not against the pageant or Lee, but he is upset at the state's priorities. He noted the money for the pageant is touted as an economic investment while programs to help the poor are being cut.
"People don't talk about human investment and what kind of impacts it's going to have by not funding some of these important programs," Arakaki said. "We're talking basically about investing in children and providing for the neediest in our society."
Lee was in Honolulu yesterday for the signing of the Miss Universe appropriations bill.
At the ceremony, Gov. Ben Cayetano said $1.9 million of the $3.3 million appropriation will be a direct benefit to the state because it will be spent locally.
"This will prove a real shot in the arm for our local businesses," Cayetano said. "The Miss Universe pageant is a great opportunity to showcase Hawaii as a must-see destination of the world. It's advertising we can't buy."
The pageant will be held May 12 at the Stan Sheriff Center on the University of Hawaii campus.
"We will take over the planet for one day, and that one day will make a difference for years to come," Lee told the House.
Arakaki said, "I really want to see the pageant become a success, and I think we are fortunate to have someone like Brook Lee."
LEGISLATURE UPDATE
A calendar of tomorrow's hearings -- to be held at the state Capitol, 415 S. Beretania St., unless noted:
HOUSE
None scheduled.
SENATE
