Lease conversion task force meets

By Gordon Y.K. Pang
Advertiser Capitol Bureau

Members of the city's newly formed Leasehold Conversion Task Group hope to reach agreement on some of the vexing issues relating to the city's lease-to-fee condominium conversion program despite being worlds apart on one of its most basic points.

The six-member task force, with six alternates, met for the first time yesterday and took a look at their work ahead in dealing with the complexities of Chapter 38.

Meanwhile, a City Council committee agreed yesterday to advance two resolutions that add names to the lists of those who own leasehold units in two condominiums and are seeking to use the city's condemnation powers to compel a landowner to sell them the fee title to their property.

Chapter 38 was adopted by the council in 1991 to allow owners of leasehold condominiums to seek the city's help in forcing landowners to sell the fee interests to their property at fair market value.

Benjamin Kudo, an attorney chosen as chief spokesman for the three landowner representatives of the task force, said those on his side of the issue don't believe the law has "served a public purpose," which is necessary for a government to start condemnation.

"From our position, we hope that the evidence will show that there is no public purpose to Chapter 38," Kudo said. "Or at the very minimum that some significant amendments need to be done to (Chapter) 38 to bring fairness and equity to those who are affected by it."

Michael Pang, a real estate broker who is chief spokesman for the lessee representatives on the task force, said the group's objective should be to "make the law fair and less contentious — I don't know if the less contentious is possible."

Pang disagreed with Kudo's interpretation of the law. "The legal and legislative history (shows) public purpose has been upheld and supported over and over," he said. "Let's get all the facts on the table, and I think the truth will pop out."

The council has designated $20,000 for the task force but has yet to select a facilitator for the group. Executive Matters Committee Chairman Romy Cachola presided over yesterday's meeting. Council Chairman Gary Okino said he expects to hire someone by Sept. 1. The task force's next meeting is slated for Sept. 11 although members believed they could meet sooner if the mediator agrees.

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or at 525-8070.