City might cash in
on hot realty market

The home and land at 1459 Aalapapa Drive was bequeathed to the city for senior citizen programs by Viola Butz in 1996, according to City Council records.

It was valued at $401,000, with liabilities estimated at $28,000 at that time.

They were going to sell it for $900,000, said an incredulous Ann Kobayashi, Council Budget Committee chairwoman.

"(Councilwoman) Barbara Marshall said, 'We surely can get more than that,'" Kobayashi said.

According to Mary Robb, fine homes specialist with Prudential Locations LLC, the assessed value is $1.05 million for the land and $200,500 for the 1,800-square-foot house.

An upset price of $1.18 million has been established for the 11,250-square-foot property.

That compares with the $1.15 million asking price for the 15,255-square-foot lot at 371B Lama Place -- and with the vacant 112,907 square feet behind a private gate at the end of Lanikai listed for $2.95 million.

The properties have different qualities and don't necessarily fit within an apples-to-apples comparison, Robb said.

The Aalapapa Drive property is likely to draw a large number of bids, much higher than the upset price, Robb said.

"When people bid on it, they're going to have to be aggressive," she said. "There are enough small developers and big developers trying to find property in Lanikai, but also people who don't have any land and want to build on something. They'll pay more than a developer will."

A sign on the property years ago indicated it would be used for senior living, according to a 1999 Kokua Line item.

"The plan is to rent it out to an 'income-eligible family' because original plans to operate a group home for low-income senior citizens there have been thwarted by the inability to find a nonprofit operator," the Star-Bulletin reported.

The county Department of Community Services "started renting it. They decided to set up a fund, sell the house and put the money in a fund and use the interest in the fund for senior programs," said Kobayashi.

However, that department doesn't have such authority, but the Department of Budget and Fiscal Services does, she said.

"I'm glad they are finally selling it," Kobayashi said.

It is still in keeping with the spirit of Butz's will.

"According to (city attorneys) ... the City could do whatever they wanted, as long as the money was used for senior programs," Kobayashi said.

Rental proceeds of about $1,000 a month also funded senior programs.