Posted on: Thursday, November 11, 2004

Leasehold law may be repealed

By Johnny Brannon
Advertiser Staff Writer

A lengthy and heated dispute over the city's condominium leasehold conversion law is headed toward a showdown following a key City Council vote yesterday.

The 6-to-3 decision was the strongest indication yet that the law will be repealed, and a final vote could be taken as soon as Dec. 1.

Throwing out the 1991 law would require five votes, and overturning a mayoral veto of the repeal would require six. Mayor Jeremy Harris has declined to say where he stands on the issue, but Mayor-elect Mufi Hannemann has said he favors repeal.

The law, known as Chapter 38, lets the city force landowners to sell to qualified condominium owners the fee interest in the land under their units.

The law is popular with many people who want full ownership of the condos they live in, but is staunchly opposed by some landowners.

Dozens of people on both sides of the issue packed City Hall yesterday to argue their positions, and a compromise appears unlikely. The issue is especially sensitive for many Native Hawaiians.

"This land is not for sale," said Vicky Holt Takamine. "Forcing us to sell it is legalizing theft."

But others characterized the law as a land-reform vehicle.

"One of the things that gives a community strength is unrestricted ownership of a home," said repeal opponent Robert Kessler.

Voting in favor of repeal were council members Romy Cachola, Donovan Dela Cruz, Mike Gabbard, Ann Kobayashi, Nestor Garcia and Rod Tam. Voting in opposition were Charles Djou, Barbara Marshall and Gary Okino.

Djou warned that repealing the law could trigger lawsuits over conversions that are pending. He had urged that repeal not take effect for one year, but his proposal was rejected by the same 6-to-3 margin.

The council also voted 8 to 1 to overturn Harris' veto of a bill to roll back monthly parking fees at eight city-owned facilities downtown. Okino voted in opposition.

But it's unclear whether the fees will ever be reduced. Harris has indicated that he will refuse to implement the bill because it would leave the city's operating budget illegally unbalanced.

"They cannot pass a law that overrides their own budget ordinance," city managing director Ben Lee said.

The council in June approved increases in hourly, daily and monthly parking fees to help pay for operation and maintenance of the city's on- and off-street parking.

The increases went into effect Sept. 1.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.