Posted on: Wednesday, September 15, 2004

Developer's donations studied

By Kevin Dayton
Advertiser Big Island Bureau

HILO, Hawai'i — The state Campaign Spending Commission is investigating a complaint filed against Arizona developer Lyle Anderson by critics of his controversial Hokuli'a development in Kona.

The Protect Keopuka 'Ohana is alleging that Anderson donated more money to a Hawai'i political action committee than is allowed under the state campaign spending law.

Anderson is chairman of Red Hill 1250 Inc., general partner of 1250 Oceanside Partners, which is developing Hokuli'a. Anderson also heads a political action committee called Red Hill Committee, according to Robert Watada, executive director of the Campaign Spending Commission.

The group claims the developer made improper donations of his personal funds to the Red Hill Committee, starting with a $10,000 contribution in 1996.

State law limits individual contributions to political action committees to no more than $1,000 per election and $2,000 per two-year election cycle, Watada said.

The Protect Keopuka 'Ohana contends Anderson contributed a total of $40,000 to the Red Hill political action committee, and said the committee distributed some of that money to Hawai'i County Council members who voted for the Hokuli'a project.

Anderson was unavailable for comment yesterday.

The Protect Keopuka 'Ohana successfully fought the Hokuli'a project in court, and a year ago Kona Circuit Court Ronald Ibarra halted construction on the project.

Hokuli'a includes 750 one-acre house lots and a golf course, and Ibarra ruled the development is essentially an urban project being built on agricultural land. The judge ordered the developer to seek state Land Use Commission approval before resuming construction.

The ruling also halted work on a bypass road many residents hoped would relieve traffic congestion in the area.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com or (808) 935-3916.