Council OKs land seizure in Waikiki
• Map of Waikiki properties subject to condemnation
By Robbie Dingeman
Advertiser City Hall Writer
The City Council yesterday approved a measure to help hotelier Outrigger Enterprises acquire its neighbors' land in Waikiki, a move that has focused debate on the use of government powers to help a private business.
Council members voted 6-3 to begin condemnation proceedings that will enable Outrigger to purchase four Waikiki properties for its $300 million redevelopment project.
While condemnation has been used here and across the nation to condemn private property for public uses such as building roads and schools, critics called the Outrigger request an unfair use of government's powers. And Gov. Ben Cayetano has introduced state legislation to block the condemnation.
Supporters argued it is a unique chance to improve Waikiki and help the visitor industry. "This is one big fix," Councilman Gary Okino said. "There will never be an opportunity like this again."
Voting for the condemnation were Okino and Ann Kobayashi, Rene Mansho, John Henry Felix, Romy Cachola and Jon Yoshimura. Voting against it were the council's new chairman, John DeSoto, and Duke Bainum and Steve Holmes.
Condemnation can still be avoided if Outrigger and the four landowners reach voluntary agreements to sell the land. Outrigger is still negotiating with the landowners. Mel Kaneshige, chief operating officer of Outrigger, said the talks are making prog-ress.
Former Hawai'i Supreme Court Justice Robert Klein, who represents the private landowners, said the condemnation puts unfair pressure on his clients. "It puts government at the bargaining table with private properties," he said.
Bronwyn Welch, one of the landowners, shook her head over the decision to move forward with the condemnation. "We're getting closer and closer," she said. "I don't know why they didn't just wait another month."
City Corporation Counsel David Arakawa said city attorneys would begin preparing the legal complaint needed to start the process. If it goes through, a judge will determine the fair market value of the property to be paid to the landowners.
Arakawa said the early steps normally take at least a month, but the city won't rush to court if negotiations appear to be moving forward. "If the parties are close to resolving matters, then we can wait a reasonable time," he said.
However, the condemnation may be derailed by state legislation. Cayetano, who calls the condemnation a way to take "land away from the little guy and give it to the big guy," introduced a bill that would limit the counties' authority to acquire private property.
If the bill passes, said Klein, the landowners' lawyer, it could potentially invalidate the condemnation of the four parcels.
The bill appears, however, to have stalled in the House. It is still alive in the Senate. Senate Tourism and Intergovernmental Affairs Committee Chairwoman Donna Kim, D-15th (Kalihi Valley, 'Aiea), said she supports the measure.
Bainum, who represents Waikiki, praised the redevelopment project but objected to the government taking of property. "Government should be a servant of the people, not a threat," he said.
Rick Egged of the Waikiki Improvement Association said businesses and landowners in the resort area support the move as "an important face-lift for the heart of Waikiki."
Earlier at the council hearing, newly elected Councilwoman Kobayashi tried to postpone the vote until next month. The move was turned down by a 5-4 vote.
Advertiser staff writer Lynda Arakawa contributed to this report.
