Posted on: Friday, October 1, 2004

Panel OKs lease-to-fee in Makiki

Advertiser Staff

In the midst of a heated dispute over the city's condominium leasehold conversion law, a key City Council panel yesterday approved the condemnation and conversion of a Wilder Avenue building called Makiki Manor.

The council's Executive Matters Committee had delayed voting on the issue for five months, prompting lessees who hope to buy their leased fee interests in the property to prepare a lawsuit accusing the council of illegally stalling.

While the vote was pending, the council began considering a bill that would repeal the city's leasehold law. If approved before a final vote on the Makiki Manor condemnation, the bill could halt conversion of the building and others that lessees have petitioned to acquire.

The law, known as Chapter 38, allows the city to force landowners to sell qualified condominium owners the fee interest in the land under their units. The law is popular with many who want full ownership of their condos, but is opposed by some landowners, including Kamehameha Schools and other large charitable trusts that benefit Hawaiian children.

Michael Pang, a real estate agent handling the Makiki Manor transaction, said the small private trust that owns that property initially opposed condemnation but no longer objects.

The council's Budget Committee on Wednesday referred the bill to repeal the conversion law for a new round of hearings. A final vote by the full council is not expected for several months.