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Maui Council
OKs probe into
Lingle project

Lingle says, 'It's a project
that followed the law every
step of the way'

By Gary T. Kubota
Star-Bulletin

WAILUKU -- Maui County Council members authorized the hiring of a special attorney to investigate former Mayor Linda Lingle's Makawao Highlands housing project.

Another resolution passed by the Council yesterday also asked county, state and federal prosecutors to conduct a legal review.

The resolutions were approved by seven Democratic Council members and Republican Councilman Wayne Nishiki.

Republican Councilwoman Charmaine Tavares voted against the resolutions.

Lingle is a Republican and now chairwoman of the state party.

The resolutions follow an accounting firm's report alleging several instances in which county money was spent without approval of the Council, the corporation counsel or the finance director.

The report by Russell Yamane & Associates also said the housing project resulted in the county losing an estimated $1.4 million.

The Lingle administration became involved in buying the 3.9 acres of land for $1.95 million after developer Joel Cavasso said he had been advised to sue the county for giving him false information about the zoning. Cavasso said he had been told by a county employee the land was classified residential when it was agricultural.

The report said under county procedures, any county settlement without court approval in excess of $3,000 requires Council authorization.

Some County Council members who approved the land purchase as an affordable housing project in 1996 say they were not informed initially about the use of the project as a vehicle for a settlement.

Lingle said she informed Council members individually about the project.

She said she considered the report biased because Yamane was a former treasurer of the Democratic Party of Maui.

Yamane said he followed standard guidelines in developing the report.

Lingle said the project was designed to enable first-time home buyers to purchase a house and to allow developmentally disabled workers to receive job training.

"There was no loss and there was tremendous gain," she said.

"It's a project that followed the law every step of the way."

She said the U.S. Department of Housing and Urban Development recently nominated Makawao Highlands for an award. "We took a potentially very large liability and turned it into a nationally award-winning project," she said.

Tavares said she feels the complaints in Makawao Highlands have been satisfied and procedures have been put in place to protect the county's housing fund.

Council member Dennis Y. Nakamura said the Council has agreed to pay up to $30,000 in special attorney fees and hopes to have the investigation completed by the end of this year.