Ka Wai Ola - Office of Hawaiian Affairs, Volume 19, Number 8, 1 August 2002 — OHA considers new site for administrative offices [ARTICLE+ILLUSTRATION]

OHA considers new site for administrative offices

It is good to report thatOHA has furthered it efforts to fmd and acquire a site for a new office. Further action on this matter was approved J uly 1 1 at the Budget and Finance Committee meeting and, later that day by the Board of Trustees. The Hawaici Community Development Authority (HCDA) made a presentation of a Kaka'ako site for an OHA office home com~ plex. The Board approved sending a letter of intent of OHA,s interest in the Kaka'ako property to HCDA. And the OHA Board also approved the retaining of a consultant for a feasibility study for the project. Another action approved was a restructuring of the terms of the Quality Hom.es of the Pacific agree~ ment. There was an update of the progress of the affordable homes now completed and others still under construction. Public recep~ tion of the homes has been gratify~ ing and after the restructuring3 plans are to move into an expanded pro~ duction mode to fi.ll orders on hand. It is clear that OHA is becoming involved in land acquisitions for

projects that benefit Hawaiians. This observation is based on the number in inquiries that are being received offering available proper~ ties. OHA may become a real play~ er in the real estate sector whieh is fortunate because there has beeu no ineome from ceded lands as provid~ ed for in the state constitution. And this laek has derailed programs that have been supporting various wor~ thy activities funded by OHA. It maybe of interest to you the public why I have targeted the ceded land issue and continue to focus on the subject. It has eome to my attention that a study was made in 1 994 of the ceded lands. There has been a past effort to try and set~ tle the issue with the State, whieh settlement has failed. What ean be drawn from the ceded land study is basically that some 44 percent of all of Hawai'i's lands were ceded lands in all four counties of the main Hawaiian islands. The study reflects that there are at least 1 ,661 parcels totaling 518,338 acres. These acres are usable and in most cases occupied

by teuants. The computed tax value of these 518,338 acres is $6,830,547,825, believe itornot. A normal return would be, on the low side, of an estate with an assessed value of $6 billion plus at 6 percent would eome to $409,832,869 in tax revenues. If OHA were to enjoy 20 percent of this potential yearly ineome it would total $81,966,573.80 per year. This ineome could help OHA cariy out its mandate to all Hawaiians.

These computations are for esti~ mating the value of ceded lands and shows that the management of them for revenue is poor. The low ineome from the ceded lands is shown to be related to the fact that many of these acres do notcollectany rentor even taxes. The management has been less than desirable. It should be of further note that the tax valuations are old being made in 1994 and surely are mueh higher now in 2002. Also tax valuations are consistently mueh less or lower than usual appraised value. This disparity means the ceded lands have paid for a great number of public projects and finances many others, serving as a cash eow. At the same time Hawaiians experience deficiencies in greater numbeis than their total numbers in the communities population. This negative is borne out in the 747page 1983 Native Hawaiian Study Commission report. The options are: (1) correct the denial or (2) cease efforts and abandon this heritage? ■

What ean be drawn from the eeāeā lanā study is basically that some 44 percent of all of Ha wai 'i s lands were ceded lands in all four counties of the main Hawaiian islands.

MāPSSS

Charles Ota Trustee, Maui