Posted on: Saturday, May 17, 2003

UH regents question astronomy proposal

By Beverly Creamer
Advertiser Education Writer

Two of Gov. Linda Lingle's new appointments to the University of Hawai'i Board of Regents raised sharp questions yesterday about a proposed business deal between the University of Hawai'i and a company formed by Maui regent Everett Dowling to expand astronomy facilities on Maui, even though Dowling sought and got clearance from the Hawai'i State Ethics Commission.

"We don't want the perception of impropriety," said regent Kitty Lagareta. "I think we need this facility. My concern is we need to maintain the reputation of the university."

Regent Ted Hong said, "Whether we pass this or not, the suspicions of the Maui community are still going to be there about how this situation came up."

In the end Hong seconded the motion for the university to begin negotiating with Kulamalu Science. But the regents also asked Sam Callejo, director of capital projects for the university, to seek feedback from several other developers about how much it would cost to pick up the project at this point.

"If it comes close to the price of Dowling's, we should go with the other one to avoid the perception of conflict," said board chairman Bert A. Kobayashi.

The strong words came as regents debated a proposal that involves a potential arrangement between the university and Kulamalu Science LLC, a limited liability company formed by Dowling to build the infrastructure needed to land two leading projects in modern astronomy — and provide a potential $100 million boost to the state economy.

The university hopes to have the project well under way sometime next year.

Yesterday's confrontation echoed the bitter Senate fight in the closing days of the recent legislative session, as Lingle sought to put four close political friends on the board. The Senate rejected two of them.

Dowling has been a generous benefactor to UH, donating millions of dollars in money and land. Before plans for the laboratory and office complex went forward last year, he asked for a conflict-of-interest ruling from the Hawai'i State Ethics Commission, and was told there would be no ethical concerns as long as he recused himself from all discussions and votes on the project. He has done that.

Also, UH legal counsel Walter Kirimitsu filed a letter detailing the situation with the Ethics Commission.

Reached for comment yesterday, Dowling again recused himself from speaking about the issue, because of constraints placed by the Ethics Commission.

However, Lagareta said, "If my company is ever invited to do work for the university, I will step off this Board of Regents."

The $80 million to $100 million Advanced Technology Solar Telescope — which UH is competing for — is considering seven sites, according to Institute for Astronomy director Rolf-Peter Kudritzki. Hawai'i's chances are 50-50, but without the infrastructure in place — and room for expansion — UH would not be considered, he said.

"It's a project with enormous potential for our future operations on the Neighbor Island of Maui," Kudritzki said. "We have an excellent operation on Haleakala and we've been very successful in attracting large amounts of federal money in the past. But an 80-year-old farmhouse is our base facility and that was the reason we got the resources from the Legislature (to build the new laboratory complex) because they saw we need this."

Persuading the National Solar Observatory to move to Maui would bring 60 to 100 jobs for scientists and engineers and an annual operating budget of $8.4 million to $10.4 million to the island.

Under terms of the original proposal, the appropriation would pay for two lots in Kulamalu Town Center owned by a Dowling company, Kulamalu Science LLC., a limited liability company organized last May for the single purpose of developing the project for the institute. Under the project guidelines Kulamalu Science would sell the lots to the university at a discounted price and put the project out to bid. When the project is complete, it would be turned over to the university.

The land under consideration, between Haleakala and the Maui Super Computing Center in the Maui Research and Technology Park, comes with water rights, a highly prized commodity in the area. It also has an adjoining lot which the university could option for expansion.

Since the 2001-02 Legislature appropriated $7.5 million to buy land and construct the laboratory facility in Kulamalu Town Center, a commercial subdivision in Pukalani, the university has moved quickly. The money has already been released.

Hong, however, said the administration should be chastised for the speed at which the project went forward.

"The university administration needs to be taught a lesson they can't do these kinds of shortcuts," Hong said.