Senator’s care home
gains tax settlement

A City Council committee approved a $500 settlement this morning of more than $2,000 in property taxes that a nonprofit adult day care center headed by state Sen. Cal Kawamoto failed to pay over three years.

The $2,100 in back taxes were owed by the Waipahu Community Adult Day Health Center and Youth Day Care, whose executive director is Kawamoto (D, Waipahu).

The tax compromise was being sought because the center is a nonprofit agency and should have received an exemption from paying taxes.

"This organization failed to apply for an exemption until 2004, resulting in its current delinquent tax position," according to a letter to the City Council from Budget Director Ivan Lui-Kwan.

A 1988 City Council resolution allows tax compromises for nonprofit agencies for delinquent back taxes under such circumstances.

The center has not paid property taxes for three tax years, according to the letter. The center was billed $1,163 for 2002, $903 for 2003 and $100 for 2004, according to a copy of the tax bill that is attached to the letter.

The mailing address on the tax bill is Kawamoto's home, and his Senate fax machine phone number is listed on the bottom of the bill.

On his Senate Web site, Kawamoto lists himself as the center's executive director.

Kawamoto's home address is listed as the center's mailing address in other records.

Kawamoto told the Council's budget committee this morning that opening the adult care center is behind schedule mainly because funding didn't come through.

"This project has been a great asset to the community -- the Head Start program that we have there is at maximum capacity at this time," Kawamoto said.

But in terms of the adult day care center, "the unfortunate part was that the governor did not release the money that we had appropriated to run the pilot project."

The $3 million building, dedicated in August 2003, includes a multipurpose room, kitchen, shower and administrative offices.

The building was supposed to house a preschool and adult day care center, but only the Head Start program has opened, said retired school vice principal Clarence Nishihara, Kawamoto's opponent in the upcoming Democratic primary election.

"It's a building without a program," Nishihara said.

Lui-Kwan said yesterday that he did not deal directly with representatives of the center for tax compromise.

Instead, he worked through city Community Services Director Mike Amii, whose department deals with nonprofit agencies. Amii could not be reached for comment.