Waikiki Four Waikiki landowners lost a round in their fight against the city's plan to condemn their properties to make way for a $300 million Outrigger Enterprises renovation project.
condemnation
plan advances
Outrigger wants the city
to take private land so it can
proceed with a $300 million projectBy Gordon Y.K. Pang
gpang@starbulletin.com"Not only is condemnation pointed at our heads, but the gun is cocked," said Robert Klein, who represents the owners of four properties being considered for city condemnation.
Klein was reacting to a 5-3 vote yesterday by the City Council's Policy Committee to approve a measure authorizing the city to initiate condemnation proceedings against the landowners, who own the fee interest under the properties in the Lewers Street area makai of Kalakaua Avenue.
Two more Council votes, which are required for the condemnation, have been scheduled for Jan. 30 and Feb. 20.
The committee is made up of the entire Council. Members Romy Cachola, John Henry Felix, Rene Mansho, Gary Okino and Jon Yoshimura voted to approve the resolution. Duke Bainum, John DeSoto and Steve Holmes dissented.
Klein said a deal between the landowners and Outrigger may still occur, but "our negotiation stance has changed because now they're one step closer to knowing that the properties eventually, at some point in time, will be condemned."
The city, under the current scenario, would use its powers of eminent domain to force the landowners to sell the parcels at prices based on values determined by independent appraisers. It would then sell the properties to Outrigger.
Proponents of the condemnation say there is a public interest tied to the project because it is an integral part of redeveloping Hawaii's most popular visitor destination.
Mel Kaneshige, Outrigger senior vice president, told committee members the condemnation is critical for obtaining viable financing.
"It's really not a matter of convenience, but one of necessity," he said.
But critics said they are worried about using the city's powers to benefit a private landowner and believe that condemnation should only be used to make way for roads, parks or other improvements that benefit the citizenry.
"Do we do this for any project that comes before us?" DeSoto asked.
An attorney for the Andrade Estate, which owns one of the five properties initially considered for condemnation, told Council members that it has reached a tentative agreement to sell its land to Outrigger.
In November, Policy Committee members held off voting on the resolution and asked the parties to work out their differences. The Council removed the Andrade property from the resolution.
The four remaining landowners are the Melinda Allison Trust, sisters Jacqueline Johnson and Bronson Welch, Jabron Mango Co. (of which Johnson and Welch have controlling interest) and the Clarice M. Garrison Trust.
Outrigger has given Klein's clients three options besides selling: a land swap, an amended lease giving the hotelier the right to build what it wants, or a minority share partnership with limited liability and control.
None are viable, Klein said, because they give the property owners no voice in how the project proceeds.
City & County of Honolulu
