Proposal to condemn Waikiki properties raises concerns

By Robbie Dingeman
Advertiser City Hall Writer

A proposal to use city government's power to condemn private property to pave the way for Outrigger Enterprises' $300 million Waikiki redevelopment project is drawing some questions about whether that is the kind of public purpose that warrants taking private property.

The Honolulu City Council is being asked by Mayor Jeremy Harris' administration to condemn five parcels in the Lewers Street area, all part of the 7.9-acre area targeted by Outrigger for a massive renovation of an aging part of O'ahu's famous resort destination.

City Councilman John DeSoto, a longtime opponent of forcing private landowners to sell the lease interest, objects to the plan. "You don't go in and condemn other people's property for other people's profits."

DeSoto said he doesn't see the compelling public purpose in condemning the land to complete Outrigger's project, even though he thinks the Outrigger project is "great" and should generally be supported.

"You're just taking from one and giving to the other," DeSoto said. "I thought we condemn property for health and safety concerns."

Condemnation involves government using the power of eminent domain to take private property for public use after compensating the owners fairly for the property. It's more commonly used when government builds highways, civic centers, airports or other facilities that have a broad public use.

Administration officials declined to comment on the proposal, which was introduced by Council Chairman Jon Yoshimura at Harris' request. DeSoto wonders if he will be the only vote against the proposal.

City Councilman Duke Bainum, who represents Waikiki, said he supports the redevelopment project but wants to hear from the landowners before making a decision. "Eminent domain is something that government must use very judiciously," Bainum said.

The landowners could not be reached to comment on the project. But Bainum is inclined to back the project. "We've been working to achieve economic redevelopment in Waikiki. This fits."

Councilman John Henry Felix said he believes the proposal has merit. "I think we can clearly show a public purpose. I think it would work."

Mel Kaneshige, chief executive officer of Outrigger Enterprises, said the company already has buildings on the properties. He compares the process to the government action in lease-to-fee conversion. So, the city will condemn the fee and "sell it to us in the same way that the state in the land-reform area comes in, condemns the fee and then sells it to you as the homeowner."

Kaneshige said the public purpose is clear and the owners will receive fair compensation as determined by a neutral party. "Our property really is a form of urban renewal in Waikiki," Kaneshige said.

He said the state condemned property in Chinatown in the 1950s and 1960s for similar redevelopment and urban renewal.

"When they build freeways, for example, it goes through neighborhoods and people's homes are destroyed, but there's a public purpose in doing that because they want to have better transportation through areas," Kaneshige said.

In this case, "you want to be sure that Waikiki continues to be vibrant and you don't want places to deteriorate," he said.

Bainum said he understands that most of the owners have not occupied the property for decades. Kaneshige said the company still hopes to work things out privately with the landowner but that not acquiring the parcels could delay the long-planned, massive redevelopment.

Kaneshige said the company is still moving forward with the ambitious plan even after the tourism slump that followed the Sept. 11 terrorism attacks because of the opportunity to work with the large parcel.

Without the ownership of the five parcels, "we may not do anything there," Kaneshige said. "We may look at selling properties piecemeal there."

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com or 525-8070.