Posted on: Thursday, September 30, 2004

Council members balk at property sale

By Johnny Brannon
Advertiser Staff Writer

The city's plan to sell two downtown properties for $34 million stalled yesterday after City Council members questioned whether they had received enough information about the deal.

The money is factored into the annual budget that the council approved in June, so rejecting the sale would leave the city with a major shortage in revenue.

The city wants to sell its leased fee interest in the Queen's Court and Harbor Court buildings to apartment associations that already have ownership interests in the properties on Nimitz Highway near Aloha Tower.

The City Council's Budget Committee voted 4-1 to delay the deal. Councilman Romy Cachola said he wanted to know more about the lease revenue that the city would lose each year by selling the property.

Councilwoman Barbara Marshall said the council had received such data months ago and there was no reason for the delay.

"I think we're foolish to hold this up at this point," she said before voting against the delay.

Committee chairwoman Ann Kobayashi said she was also uncomfortable about the deal and wanted more information.

The council had authorized the city administration months ago to market the properties and set the minimum price of $34 million. Some council members said at the time that they believed the price was too optimistic.

City budget director Ivan Lui-Kwan said he did not understand the move to delay the deal at this point.