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The Honolulu Advertiser
Posted on: Saturday, March 23, 2002

Japanese Cultural Center struggles to pay mortgage

By Rod Ohira
Advertiser Staff Writer

The Japanese Cultural Center is struggling to meet mortgage payments and is hoping to cover $8 million in debt obligations by promoting its catering business, renting out its banquet hall more often and partnering with community organizations to raise more money, according to the president of the nonprofit center.

The Japanese Cultural Center in Mo'ili'ili is operating on a month-to-month basis on its expenses.

Eugene Tanner • The Honolulu Advertiser

"When you have a home with a big mortgage, the question every month is, 'Can we make the mortgage payment?' " said Susan Kodani, the center's president. "We have a mortgage payment we can't afford. There's enough to allow us to operate month to month but not enough to cover the debt service. We can run for only so long in that condition."

The center, on South Beretania Street in Mo'ili''ili, consists of two towers, one of which is office space. The other houses the historical gallery, resource center, banquet hall and 250 parking stalls.

Although $10 million was raised, largely through private donations, to purchase the land and build the first tower, the center still needs money.

"We need $8 million, but short of someone writing us a check for that amount, we're looking at more global long-term remedies rather than patching the short term," Kodani said. "The people who hold the mortgage are very supportive of our mission and keeping the cultural center continuing."

Kodani said University of Hawai'i officials have looked over their property but no discussions have been held with university officials about a possible sale.

"The place is not for sale and we have no proposals on the table," she said.

In an earlier interview, Kodani said the center was exploring a "strategic partnership" with UH and ways for the university to make more use of its space.

The center, which was opened eight years ago to preserve and promote Japanese culture in Hawai'i and build respect among other cultures, had planned to generate money with rental fees from a 600-seat banquet hall, called the Manoa Grand Ballroom, and a catering business.

But revenue has fallen short of expectations.

"The trick is to make the mission and support for the mission fit together," Kodani said. "Organizers typically start out with a passion and 'wouldn't it be great' or 'we need to do this' attitude. People who have the passion don't always have a sense of financial reality. The root is the business plan."

Since taking over management of the center, Kodani said she has filled the remaining vacancies in the office building, which include tenants Hawaii Multimedia Corp., the Honolulu Japanese Chamber of Commerce, the Honolulu Japanese Junior Chamber of Commerce and the Pacific Telecommunications Council.

The center has a contract with Marians Island Wide Catering and the Manoa Grand Ballroom is being used more often, Kodani said.

"It's really only in its fourth year and it takes time to build," she said. "We're seeing many more events now."

The governing board and management are exploring partnerships in programs so the cultural center doesn't have to "do everything alone," Kodani said. The New Year's Day festival attracted 5,000 people and the Girls' Day festivals drew 2,000 people, both of which were partnerships with community groups, Kodani said.

"Whenever you're in a house that is too big, it's distracting because you have to worry about paying bills and can't put all your energies into programs," she said. "We're trying to make every dollar and every minute productive."