City to rebuild WITH THE EWA VILLAGES relocation scandal still a fresh memory, the city yesterday announced plans to clear and clean the Villages' industrial core, requiring the eviction of 13 tenants.
Ewa Villages site
Commercial tenants must
relocate as the city plans to
renovate the area's
industrial centerBy Lisa Asato
lasato@starbulletin.comSix of those tenants at the Ewa mill site may be eligible for relocation assistance, but none who was involved in the scheme that bilked the city of $5.8 million will receive any funds, City Managing Director Ben Lee said at a press conference yesterday. Plans for the Ewa mill site call for the demolition of all the buildings except five historic structures, including the sugar mill.
Lee said the tenants, all of whom are on month-to-month leases, were not happy to hear on Friday that they have 60 days to vacate. But the city felt "60 days is more than adequate," Lee said.
Not so, said Gary Lee, owner of the Ewa Mill Barber Shop, one of the businesses being evicted.
"To get the notice with not enough warning -- that's what's frustrating and making everybody angry," said Gary Lee, who is not related to the city managing director. "(The city) won't budge, negotiate, listen to reason. Ben Lee just kept telling everybody, 'That's how it's going to be.' That's almost like saying, 'tough.'"
Gary Lee said he got a call at noon from property manager National Mortgage saying there was a mandatory meeting at 3 p.m. "That's the first I heard we're getting evicted," he said.
He said the eviction notice came as a surprise because he was told by a former National Mortgage manager that the tenants had at least five more years at the site. He said some people spent $17,000 to improve their lots.
"Then they get the notice on short time -- they were very, very upset," Gary Lee said. "That's a lot of money."
But nearby residents and the area's city councilman were relieved to hear the project -- stalled by a soil-contamination lawsuit -- finally is proceeding.
THE EWA VILLAGES project was marred by scandal in 1997 when city worker Michael Kahapea, who was in charge of city relocation projects, was accused of rigging bids, billing and overcharging the city for moves that never happened, and a host of other violations. He was convicted in what prosecutors called the most expensive theft and fraud scheme ever committed against the City and County of Honolulu.
Ben Lee said the city is taking precautionary measures to ensure no city funds are misused in the upcoming relocation.
No contracts will be awarded without the review of city attorneys in the Corporation Counsel's office, he said, and no one will receive any money until moves actually occur. Two city departments -- Facilities Maintenance and Budget and Fiscal Services -- as well as the city's property manager, National Mortgage, will oversee the process, he said.
"We will have all checks and balances to ... make sure there is no misuse of city funds," Ben Lee said. "The community is looking to make sure we won't allow that to occur again, and we won't."
City Councilman John DeSoto said if the city feels the checks and balances are sufficient, he is ready to move forward.
"My concern is making sure the projects that were promised, like Ewa Mills and Ewa Villages and the North-South Road, are completed," said DeSoto, who represents the Leeward district, including Ewa.
The plans mean that 15 tenants will have to relocate; however, Ben Lee said two nonprofit tenants -- the Ewa Village Nonprofit Development Corp. and Friendship Bible Church -- will be relocated to the historic sugar mill.
Ewa Village Nonprofit and another tenant have 90-day termination provisions in their lease, which will be honored, Ben Lee said.
SIX OTHER TENANTS may qualify for relocation assistance because they were there before the city acquired the land in 1992. He declined to name the tenant or tenants who may be disqualified because of involvement in the relocation scheme. It is a judgment the Corporation Counsel will have to make, he said.The site houses commercial tenants such as American Welding Inc., Matt's Transmission Repair Inc. and a beauty shop. The 15-acre site is covered with dirt and crammed with industrial vehicles.
Calling the industrial mill site "an eyesore," DeSoto said, "I'm just glad it's getting done. It was promised to the community of Ewa Villages 12-plus years ago."
The state and city also plans to complete the North-South Road, a reliever road that will lead to the freeway.
City plans call for expanding the existing Ewa Mahiko District Park by adding basketball courts, soccer fields, and parking. On the other side of Renton Road is a 10-acre parcel where the sugar mill sits, and which may be used for a farmer's market.
A total of $6.2 million has been approved in the city's 2001-2002 budget for the Ewa mill work.
Ewa Villages resident William Gonsalves was thrilled with the plan. He moved there in 1996 with the promise that the mill site would be cleaned and a park would be created.
"We have one industrial park instead of a district park," said Gonsalves, who is treasurer for the Ewa Villages Homeowners Association. "You don't see an industrial park in the middle of Mililani Mauka."
"I realize the tenants are upset but they have to give the people their park," he said, adding that the park will beautify the area and increase property value.
"All this is good," he said. "The board is unanimous in support."
A soil contamination lawsuit that had been holding up the cleanup of the site was settled in June when the city agreed to accept $1.3 million from former landowner Campbell Estate, lessee Oahu Sugar Co., the Northbrook Corp. and Dole Food Co.
LEE SAID the $1.3 million should cover the cost of the soil remediation, which entails adding two feet of top soil to the existing soil and any other measures the state Department of Health may require. Contaminants include arsenic and PCBs, a suspected carcinogen.
But before the cleanup can begin the tenants have to vacate.
For Gary Lee, Friday was a "double whammy" as he received two notices of termination the same day. "I had a termination of lease from Campbell Estate (for his shop at Ewa Beach Shopping Center) and (four hours) later ... the city hit me.
"Fortunately I have a shop in Kaneohe I can rely on," he said. But he doesn't plan to take much of his belongings with him. He's not one of the tenants who may qualify for city assistance, and plans to dump most of his belongings. "I don't have room in my Kaneohe shop to fit any more equipment," he said.
The planned timeline for the Ewa mill cleanup is: TIMELINE
>> Vacate 15 tenants by November.
>> Demolish nonhistoric structures soon after.
>> Complete soil remediation in March.
>> Landscape the site by April or May.
>> Renovate Ewa mill.