Nu'uanu estate to be put up for sale
By Ken Kobayashi
Advertiser Courts Writer
The historic Marks estate on Old Pali Road in Nu'uanu will be up for sale again.
U.S. District Judge David Ezra yesterday granted permission to the federally appointed receiver for the owner, Unity House, to sell the five-acre estate that features a 10,000-square-foot, two-story mansion.
Unity House bought the property from the state in 2002 for $2.5 million. Anthony Pounders, who works for the receiver EG&G Technical Services, said the labor organization failed to maintain the property, and it needs tens of thousands of dollars in repairs.
In a sworn statement, Pounders said the Marks estate is "currently under- or non-performing" and the immediate sale "best promotes the goal of maintaining Unity House assets."
The ruling is an offshoot of the federal criminal tax fraud and conspiracy case against Anthony "Tony" Rutledge and his son Aaron who were scheduled for trial May 4. That trial was postponed yesterday until Oct. 4.
Tony Rutledge was president of the organization when the federal court appointed the receiver last year to take over Unity House assets and operations.
Pounders said the Marks estate will be sold on condition that the receiver gets a purchase price of at least 90 percent of its appraised value.
The Marks estate's 24-room mansion was built in 1929. The Territory of Hawai'i bought the property in 1956. The state tried to sell the estate in 1996 when the asking price was $8.4 million, but no offer was made. In 2002, the state sold the property through a public auction to Unity House for $2.5 million.
The property is on state and national registers of historic places.
Ezra also allowed Unity House to sell an Ilikai condo purchased for $325,000 and an 'Ewa Beach residence. The condo had been used by Unity "insiders" and the Punako Street residence by Unity House employees who have been removed, Pounders said.
The tax fraud trial was delayed as a result of a request by federal prosecutors to disqualify Los Angeles lawyer Jeff Rawitz from representing Tony Rutledge. Ezra also said he will allow another judge to hear the motion if Rawitz requests it. Rawitz earlier had asked that Ezra step down, but U.S. District Judge Helen Gillmor denied that motion.
Reach Ken Kobayashi at 525-8030 or kkobayashi@honoluluadvertiser.com.
