Mufi Hannemann celebrated with his supporters last night. "Enjoy the moment,"he told them. "It looks good." Hannemann's win was a stunning upset in a race that showed the pair virtually tied in an early count. Richard Ambo• The Honolulu Advertiser

Advertiser Duke Bainum conceded last night and didn't withdraw his concession when officials announced thousands of votes remained uncounted. Bruce Asato • The Honolulu Advertiser

The margin of victory was 1,355 votes, or less than half of one percentage point of the 294,531 votes cast.

Hannemann today said he would reach out to Bainum's supporters.

"It has always been my philosophy from the very beginning that I need everybody to be part of the solution," Hannemann said.

Voters need to remember that the city's problems are the same for each candidate, Hannemann said.

"I do intend to woo the Bainum supporters," he said. "There are a significant number of them. They should know early on that many of the things Duke wanted to do are things I wanted to do."

Hannemann, who had only 20 minutes of sleep, spent much of the morning thanking voters on TV and radio shows.

"I'm operating on fumes," he said. "I got home and by the time I closed my eyes, it was time to get up."

Hannemann's victory was a stunning upset in a race that became a cliffhanger after an early count last night showed the two virtually tied.

"I knew it was going to be a tight race," he said today. "I knew it was going to go down to the wire."

His grassroots supporters made the difference, Hannemann said.

"They didn't give up," he said. "They didn't quit."

Hannemann took the lead shortly after 11 p.m., and the news electrified hundreds of supporters who erupted in cheers at a gathering near his campaign headquarters at Dole Cannery.

Bainum conceded the race shortly after, but then it took an even more surprising twist when elections officials announced that thousands of late absentee votes remained to be counted.

Even so, Bainum said he did not expect to pull ahead.

Bainum supporters who packed a ballroom at the Renaissance Ilikai Waikiki Hotel were shocked and grew quiet when the main count was released, many shaking their heads in disbelief.

Bainum thanked the crowd and congratulated Hannemann, but said he was disappointed in tactics some Hannemann supporters used.

"Clearly there was a lot of negativity and there's a lot of momentum unfortunately that evaporates in the face of such untruths," Bainum said. "That's unfortunate, but it was a hard-fought campaign. We're proud of the way we took the high road. We maintained the high road and we look forward to contributing to Honolulu in various other ways."

Hannemann was wrapping up his victory speech when he was informed that over 4,000 ballots had yet to be counted.

Hannemann said later that he remained confident he would be officially declared the winner.

"I want to have the opportunity to say we're going to be the next mayor of Honolulu," he told supporters. "But we've got to wait for the state Capitol to make it official. We've just got to be a little bit patient."

Hannemann led the group in singing Hawai'i Aloha, then joined in a prayer.

Hannemann supporter Rick Bernstein said he was flabbergasted when it was announced that thousands of votes remained to be counted.

"My adrenaline is shot," he said.

City Councilwoman Ann Kobayashi, a Hannemann supporter, said she was very disappointed about that turn of events.

"It's just not fair," she said of the lingering count.

Bainum supporters were also disturbed by the unusual delay, but many said they were even more upset at allegations concerning Bainum's wife, Jennifer, that were made on an Internet site and widely spread via e-mail lists. The Internet report attacked her role in an inheritance dispute.

"I think that smear campaigns, as unfair as they are, and as not truthful as they are, still have an effect," said Gerald Yuh, business manager for Local 186 of the International Brotherhood of Electrical Workers.

Virgil Vergara, another Bainum supporter, said he believed the allegations had an impact.

"People feed on negativity," he said.

Councilman Gary Okino, who backed Bainum, said he was disgusted at the way the information was disseminated.

"It's totally unfair that something like that would determine the outcome of such an important race," he said.

Hannemann supporter Tenari Maafala attributed Hannemann's apparent victory to the increase in voter turnout.

Supporters may have taken Hannemann for granted in the primary, but treated the general election much more seriously, said Maafala, president of the State of Hawai'i Organization of Police Officers.

An early count that showed the candidates neck and neck came as the evening's first surprise.

The count included more than half of O'ahu precincts, and showed Bainum leading by a very slim margin after 9 p.m. Bainum had led Hannemann in the primary election by nearly 6,000 votes, and polls published later showed him retaining a lead.

The tense ending capped a lengthy race that became the most expensive in Honolulu history but had been far from the most exciting.

The candidates spent a total of $5.2 million on campaigns that dwelled largely on promises to improve basic city services, such as fixing potholes.

Hannemann stressed his government experience and local roots, while Bainum vowed to be an independent mayor who would end corruption and favoritism. But they professed similar positions on most key city concerns, and attacked each other over side issues.

Hannemann was more well-known going into the race, but Bainum launched an early and aggressive advertising campaign that significantly raised his profile.

Bainum also spent nearly twice as much as Hannemann, including more than $2.2 million from Bainum's own pocket.

"We went up against an incredible money machine," Hannemann said. "The only way we could overcome it was with hard work and sweat."

Bainum, 52, is a physician who's originally from Arkansas. Hannemann, 50, is a Harvard graduate who was born and raised in Honolulu. Hannemann has served as Honolulu City Council chairman, while Bainum has chaired its budget committee.

In the push to appeal to the widest possible base of support, both candidates played it safe on potentially divisive issues.

Both are Democrats, but neither would reveal whom he supported in the presidential race. The mayor's race is nonpartisan.

Staff writers Robbie Dingeman and Jim Dooley contributed to this report. Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070. Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com or 535-2429. Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447.