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Trustees sue city
over lease-to-fee case


Star-Bulletin staff

Landowner Kamehameha Schools says the city's condemnation of the Kahala Beach apartments and two other condominium projects to enable lessees to purchase the land under their buildings is "illegal and invalid."

City & County of Honolulu

The trustees of Kamehameha Schools, which owns the leased fee interest in the land under the Kahala Beach apartments, filed suit in Circuit Court yesterday against the city and the Department of Community Services alleging that the City Council failed to consider whether there was a public purpose for the condemnation.

City Corporation Counsel David Arakawa said yesterday through a spokesman that the city has not yet seen or been served with the complaint and could not comment.

The Council narrowly approved mandatory lease-to-fee conversion for the Kahala Beach apartments, the Admiral Thomas on Victoria Street and the Camelot in Makiki earlier this month.

Kamehameha Schools; First United Methodist Church, which owns the land beneath the Admiral Thomas; the Kekuku family estate and Sisters of Sacred Hearts, co-owners of the land beneath the Camelot; and other Hawaiian groups had vigorously opposed the conversion.

The suit alleges that the Council approved the condemnation to avoid lawsuits from lessees. The Department of Housing had recommended that the Council approve the condemnation.

Mayor Jeremy Harris said Tuesday that he will allow the lease-to-fee conversion of land beneath the three condominium projects to proceed without his signature.

Hamilton McCubbin, Kamehameha's chief executive officer, said the trust believes it is the Council's duty to consider the public purpose of each condemnation.

"Their refusal to do so forces us to go to court to compel the city to abide by the law, and will end up costing taxpayers more money," he said.

McCubbin said that its educational programs, which serve more than 8,000 students annually, provide a greater public good to the people of Hawaii than selling the fee to leasehold condominium owners.



City & County of Honolulu


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