It took about two years to settle the lawsuit out of court, and what proved costly to FilCom during that period was that all fund-raising efforts had to be halted, said FilCom president Geminiano "Toy" Arre Jr.

FilCom Center was hailed as a dream come true by many of Hawai'i's 170,000 Filipinos when it opened. Its potential for becoming a prime-use facility for programs benefiting the public was enhanced by its 6,000-square-foot ballroom, equally large technology center and a commercial kitchen.

Having to borrow money was something unforeseen.

Organizers had implemented a debt-servicing strategy that produced nearly $10 million from government grants, donations and community fund-raising to get FilCom built. The strategy, devised by Eddie Flores Jr., president of L&L Drive-Inn, and financier Roland Casamina of House of Finance, called for a fund-raiser after the opening to clear debts, and the building came with enough rental space to help cover operational costs.

"I have sleepless nights about paying down the loan," Flores said. "We went ahead, took the risks (to get the center built). If we had not done it then, it would never have happened."

FilCom draws income from office spaces leased to 10 businesses — six on the first floor, one on the second and three on the third — and rental of the ballroom, whose prime weekend dates are reserved into 2007.

The technology center, however, remains unknown and unused.

"I didn't know this was here," said Jocelyn Collado of Mililani, spokeswoman for American Heart Association, after seeing the tech center for the first time while overseeing last week's "Keiki Heartsavers Training" session at FilCom.

No money for hiring

The tech center has three rooms. There are 32 IBM desktop computers in one and unused video-conferencing equipment in two other rooms.

Jocelyn Collado of the Red Cross and FilCom president Geminiano "Toy" Arre Jr. discuss uses of the center's commercial kitchen. Arre is looking for a ballroom caterer who'll train people to use the kitchen. Richard Ambo • The Honolulu Advertiser

Oceanic Time Warner, which is installing wiring in the building for tenants, has offered to hook up the video conferencing room for free, said Arre.

The computer room could easily be rented out to schools but Arre does not see it as part of FilCom's program mission goals.

"We want to use it to train people who do not have the money to go to school, like immigrants," he said. "The computers are programmed for basic training. We'd like to be able to do advance classes but it cost money for the additional hardware to upgrade the system and buy license for the software. This is the kind of program we're asking grant money for."

Arre, hired in August, came to a center that had been stuck in neutral, giving the public little reason to come except for ballroom parties and visits to tenant businesses.

"There was a big flash in the beginning," Collado said. "I thought there would be more things for young people to learn about Filipino culture, like what the Okinawan Center does. If there are programs, there doesn't seem to be a lot of them. I think the challenge is to get more programs for people to come."

Nestor Simon, 48, rented the ballroom last August for his daughter's graduation party but has had no other reason to come to FilCom.

"It's the best place for us to have a party because most of our relatives live on the Leeward side," Simon said. "I think if they come up with some programs that interest me I would come more often because it's so convenient to go there."

Arre has brought in Filipino folk dancing, ballroom dancing and martial arts classes, making Tuesday and Thursday nights active at the center.

"We need gatherings, more programs like these," Edith Pascua said. "People are drawn to them."

Other programs

U.S. citizenship classes, caregiver seminars and a U.S. Department of Housing and Urban Development's home-buyer program are among the other programs.

Arre is looking for an exclusive caterer for the ballroom and plans to put it out for bid in the next 30 to 60 days. One requirement, he said, would be that the caterer has to agree to train people to use the commercial kitchen facility.

In Arre, Flores believes FilCom finally "has the right guy. I think he can bring the community back. I'm very optimistic."

Arre, 70, is the fourth person hired to run the FilCom operations in 34 months. The former city finance director and University of Hawai'i director of student housing is determined to bring openness, stability and accountability.

He started off 2005 by taking a 40 percent pay cut and has reduced the office staff to four people, including himself.

"I'm the fourth head in less than four years, we're on our third accountant and fourth clerk," Arre said. "Turnovers compound the problem. We're looking for stability. When I came on, no one was answering phones, there were no set working hours and the ballroom was not being rented on holidays. And there was absolutely nothing Filipino (about the way business was being conducted)."

Staff is now working Monday through Friday from 8 a.m. to 5 p.m. and Saturdays from 8 a.m. to noon. "We have people who can speak Tagalog, Visayan and English," Arre said. "I'd like to see this place open seven days a week. We need to be a community center open when people are available to visit."

In his 2005 budget, Arre estimates that operating expenses will be $730,000. Income from tenant and ballroom rentals will be about $650,000. The fund-raising goal is $280,000.

Donation of condo

Arre noted that Flores' donation of a Salt Lake condominium appraised at $135,000 and a $75,000 donation from Casamina helped FilCom in 2004.

"Whatever we may get from our grant applications is going right into programs," Arre said.

As to FilCom's debt, Arre said the original $4 million loan needed to complete construction had been "whittled down" to $2.6 million at the time of his hiring, but interest payments of $17,000 a month were taking a big chunk out of the center's budget. It was decided last fall to refinance at $3.5 million for 10 years with a fixed interest at 6 percent for the first five years, Arre said.

"Our goal is to pay off the loan as fast as we can so we don't have to go back to the state or city for funds to run programs," Arre said. "We got to find a way to pay off the loan, otherwise every penny we make will have to go to the loan and programs will always suffer."

Of his openness, Arre said: "I went on the offensive last month. I'm on KNDI (AM radio 1270) at 7:30 every Monday morning for 30 minutes. Callers can ask me anything about FilCom and I'll try my best to answer it."

Because of management turnovers, FilCom appeared to be operating in secrecy, giving some the impression there was wrongdoing, Arre said.

"I couldn't go anywhere without being asked about FilCom," Arre said of his first months on the job. "All these years, they operated in secrecy because no one wanted to alarm anyone about the financial situation. But secrecy was creating ill will. People in the community thought the center was completely paid for so they don't understand why they can't get a room to meet for free.

"Last Christmas, I was asked if it was true that FilCom owes over a million dollars," Arre recalled. "So I told them the truth — that it's three and a half million."