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IN HAWAII
ERS gets OK to join lawsuit
A Circuit Court judge yesterday granted the state Employees' Retirement System's motion to join a police union's $350 million lawsuit against the state over its withholding of contributions to ERS' pension fund.However, Judge Gary Chang said in allowing ERS' intervention that he wanted formal notice to be given to Kauai, Maui and Hawaii counties that they have the opportunity to participate in the suit with the current defendants. Last month, the court allowed the City and County of Honolulu to join the state in defending the suit.
The schedule for the case is now being reset with the Nov. 26 motion to certify a class action likely to be rescheduled.
"I'm obviously very happy the motion was granted and I look forward to having the ERS fully participate in the litigation (with the State of Hawaii Organization of Police Officers)," said Special Deputy Attorney General Jim Duffy, ERS' lead attorney.
Attorney Clyde Matsui, who is representing the state, said he believes ERS eventually will side with the state's contention that it was constitutional for the state to divert $346.9 million from the fund for budget purposes as long as the pensioners are ultimately paid what they are due.
"Although the ERS has intervened as a plaintiff, it remains to be seen whether ultimately they will align with the position of the plaintiffs or the position of the state," said Matsui, who had opposed the ERS' intervention. "From the standpoint of practicality, it's good to have ERS in the judicial proceeding because the state expects to prevail and it would make sense for ERS to be bound by whatever the court should determine."
Pier development deadline extended
The deadline for proposals to develop Piers 5 and 6 in Honolulu Harbor has been extended by 11 days to 5 p.m. Monday, Dec. 2.The Aloha Tower Development Corp., the state agency responsible for development of the downtown waterfront, issued a request for proposals in early September, leaving it up to bidders from around the world to say what they want to do with the property of just more than six acres, now being used mostly for parking.
The developers would have to meet three major conditions -- provide at least 750 parking stalls for use by the nearby Aloha Tower Marketplace, produce 30,000 square feet of space for state Harbors Division offices and create space for a ferry terminal for Oahu commuters.
The state Department of Business, Economic Development & Tourism said it is not unusual to extend deadlines, especially when the deal is as complex as this one is. No proposals have yet been submitted, the department said.
ON THE MAINLAND
Delta to launch low-cost airline
ATLANTA >> Delta Air Lines Inc. is launching a low-fare mini-airline at the same time it cuts costs by $2.5 billion more over the next three years.Delta needs to further reduce spending to deal with the lingering effects of the Sept. 11 attacks, Chief Financial Officer Michele Burns said yesterday at an industry conference in Key Biscayne, Fla.
Details of the coach-class airline-within-an-airline will be made public by the end of the month, spokeswoman Peggy Estes said.
Also yesterday, Delta said it reached a tentative agreement with the Air Line Pilots Association for a proposed marketing agreement with Continental Airlines Inc. and Northwest Airlines Corp. The code-share proposal, which is being reviewed by federal regulators, would allow the airlines to sell seats on each other's flights as if they were their own, and to cooperate on frequent flier programs.
