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The Honolulu Advertiser
Posted on: Monday, December 10, 2001

'Ewa firms slow to move

By Scott Ishikawa
Advertiser Central OÎahu Writer

'EWA VILLAGES — About one-third of 15 business tenants operating at the 'Ewa Sugar Mill area have missed deadlines to leave city property and clear the way for a soil cleanup and expanded 'Ewa Mahiko District Park.

The businesses, many on month-to-month city leases, were given 60- and 90-day notices on Aug. 31. City officials said they wanted the businesses moved to prevent further soil contamination from continued storage of industrial materials and vehicles.

"The light-industrial uses are inappropriate and incompatible with the residential community," said city managing director Ben Lee. "The deadline to relocate has passed for some of the tenants, but we're not putting any pressure on them if they're making a concerted effort to move. For some, moving industrial equipment is going to take time."

Several of the businesses moving out were unknowingly involved in the 'Ewa Villages embezzlement scandal. Former city housing official Michael Kahapea used phony or misleading invoices and moving expenses in the early 1990s to show that businesses had been moved, as requested by the city, when in fact he and others had pocketed $5.8 million from the phony billings while the tenants remained.

Kahapea is serving a 50-year sentence for 33 criminal counts that include forgery, theft and money-laundering.

Although city prosecutors had hoped to get Kahapea to repay the city $1.7 million, a Circuit Court judge denied that request, saying Kahapea could not earn income while in prison.

The city has agreed to pay $317,000 to four of the businesses that qualified for government assistance with moving expenses, and are moving their own belongings, Lee said. They are Precision Gunite, McKee Corp., Mac's Home Improvements and Aloha Truck Parts and Equipment Inc.

Precision Gunite and McKee Corp. have moved, while Mac's and Aloha Truck Parts have until Dec. 10 to vacate.

The city also will pay for moving costs, yet to be determined, for American Welding Inc. The company reached an agreement with the city to vacate by Jan. 15.

Tenants qualifying for moving assistance had to be tenants of the site before the city acquired it in 1992, and not convicted in the Kahapea scandal, Lee said.

He said several city agencies will monitor the moving and reimbursement to prevent further problems.

Several city agencies will inspect the site after each party has moved, he said, and a check will be sent by certified mail reimbursing qualified tenants who moved themselves.

"No way we are going to let another Kahapea incident happen," Lee noted.

Four other businesses — D&G Equipment and Hauling, Hawai'i Truck and Forklift Sales, Leeward Equipment Rental Inc. and Matt's Transmission Repair Inc. — have not moved and probably will be sent additional eviction notices, Lee said.

'Ewa Villages Non-Profit Development Corp. will move to one of the historical 'Ewa buildings that will not be demolished.

Companies that did not qualify for government assistance but have vacated or will vacate are Independent Sandblasting Services, Heavy Truck Maintenance and 'Ewa Villages Homeowners Association, Lee said.

Two other businesses ordered to move, 'Ewa Barber Shop and 'Ewa Town Beauty Shop, have decided to cease operations.

Once the last tenant moves out in January, the city will use a $1.3 million settlement of its federal lawsuit against Campbell Estate and other parties over environmental contamination discovered at 'Ewa Villages to clean up traces of PCB and arsenic found at the site.

Lee said the city will clear out the mill site with the exception of five historically designated buildings. It will clean up contaminated areas and add 3 more feet of topsoil before grass and landscaping.

The city also has begun a $535,000 project to build a comfort station and 22-stall parking lot at the existing portion of 'Ewa Mahiko Park, Lee said. The plan is to meet with area residents to discuss options for the mill building, including possibly a farmers' market.

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Reach Scott Ishikawa at sishikawa@honoluluadvertiser.com or 535-2429.