Kahala leaseholders sue city
By Ken Kobayashi
Advertiser Courts Writer
A group of Kahala condominium leaseholders sued the city yesterday, alleging that tomorrow's expected repeal of the 1991 condo conversion law will violate their contractual rights to purchase full ownership of their units.
The Circuit Court suit by the leaseholders at 4999 Kahala Ave. says they have already entered into contracts with the city under the law to convert their leasehold condos to fee simple units.
The suit asks that the city be ordered to comply with the contracts. It also asks for an unspecified amount of damages.
The City Council gave strong indications earlier this month that it will repeal the law. All nine members sit on the executive matters committee that voted 6-3 on Jan. 13 in favor of repeal.
The committee also rejected a proposal by Councilman Charles Djou to amend the measure to allow people who have already applied for conversion to complete their purchases.
Djou yesterday said he will seek another amendment tomorrow to allow condo leaseholders who have gone far along in the process to still proceed with the conversion.
He said cutting off leaseholders who have substantially gone through the process would expose the city to lawsuits. "I expect a whole bunch more (of lawsuits) if we don't do something to take care of this liability," he said.
Condo leaseholders own their units, but lease the land under the buildings. The 1991 law allows them to force the landowners to sell them the land.
The city law is opposed by landowners such as Kamehameha Schools and the Queen Lili'uokalani Trust, which don't want to be forced to sell their land. But it has been supported by the leaseholders who want full ownership of their condo units.
Bill Brennan, Mayor Mufi Hannemann's press secretary, said he had not seen the suit and declined comment. Council chairman Donovan Dela Cruz also declined comment, saying he would need to first check with the Corporation Counsel's Office.
Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com or 525-8030.
