City hopes land Representatives for the city are proposing a land swap with the landowner and developer of 30 acres across from Sandy Beach to avoid a trial over the damages owed in a land downzoning case.
swap can avert
$200 million payout
A court ruled that the city owes
damages for downzoning
30 acres near Sandy BeachBy Gordon Y.K. Pang
gpang@starbulletin.comRomy Cachola, chairman of the City Council's policy committee, refused to say which government-owned property is under consideration for an exchange that would give the city title to the property known as Golf Course 5 and 6.
The property being offered to landowner Kamehameha Schools and developer Maunalua Associates, Cachola said, has "plenty value" and is "something they will possibly use."
A settlement would end a land-use entanglement that has plagued city officials since 1989.
"We're way closer than before, but no cigar yet," Cachola said.
Experts have estimated that city taxpayers could be forced to foot the bill for as much as $200 million for the property, which the city downzoned from residential to conservation use 13 years ago.
Circuit Judge Sabrina S. McKenna has already ruled that downzoning the land resulted in an "inverse condemnation" and that the city must pay for the potential revenues lost as a result of the action.
Cachola said he doubts the bill will be as high as $200 million, but nonetheless believes a damage awarded by the court could be high enough that the city may need to raise property taxes to pay for it.
Cachola has placed the issue on the agendas of the policy committee and the full City Council for their meetings on Monday, the day before jury selection for the trial was initially scheduled. The trial has since been postponed until Feb. 5. The trial is expected to last two weeks.
Settlement talks may continue as the trial proceeds, Cachola said.
Lex Smith, one of the attorneys representing the city, would not rule out the possibility of a settlement but said he is not holding his breath either.
While the parties have exchanged views on a settlement, they have not agreed on anything, he said.
"As things sit now, the case has not settled," and it looks like the case is going to trial, Smith said.
Attorneys for both Kamehameha Schools and Maunalua could not be reached for comment.
Star-Bulletin reporter Debra Barayuga also contributed to this report.
City & County of Honolulu
