The Kakaʻako Ceded Land Settlement Benefits All People of Hawaiʻi
By Peter Apo
The state has granted 25 acres of prime shoreline land parcels in Kakaʻako Makai to settle its $200 million dollar debt to OHA for back rent on uncollected ceded land revenues from 1978 through 2012. OHA conducted an extensive series of public meetings, but it seems we need to bring much more clarity to the settlement offer.
This column is my attempt to bring some clarity to what the settlement proposal is and, probably more important, what it is not. Simply put, the state owed OHA $200 million dollars in back rent. OHA would have liked the cash. But the state is broke. Instead, the state offered land in fee title equal to the $200 million cash debt.
But, it’s more important to know what is not affected by the settlement. It has no impact on other land claims Hawaiians may bring against the state. It does not extinguish any existing rights, claims, or entitlements Hawaiians have which include the Hawaiian Homestead lands as well as the ceded land trust. People will tend to make more of this than is the reality so I think it bears repeating: the state owed us money. They had no money. They made an offer of land instead of writing a check. The result is that OHA has become a landowner and subject to all the laws governing land ownership, joining the Kamehameha Schools, Queen Liliʻuokalani Trust, Queen Emma Land Company, Lunalilo Trust, the Department of Hawaiian Homelands, and other Hawaiian institutions that own land.
There is legitimate concern in assessing the value of the land and its potential to create cash for OHA and its beneficiaries; after all, the settlement, if not in cash, needs to provide some way of yielding cash. Some argue it’s not enough and some go so far as to say it’s a rip-off. OHA conducted due diligence and determined it was a fair value.
Some Kanaka Maoli have always challenged OHA’s legitimacy because it is a creature of the state. I respect their position of not recognizing the jurisdiction of the state or the federal government over Hawaiians and Hawaiʻi as a result of the illegal overthrow of the Hawaiian Nation. OHA has no bone to pick with those who choose to continue to issue such challenges for they too are beneficiaries, however unwilling, and OHA supports their right to seek justice and take a different path to self-determination. But, we have to stay focused on the kuleana extended to OHA – even though a creature of the state – and that is to attend to the betterment of conditions of native Hawaiians and Hawaiians.
OHA’s kuleana stretches beyond the politics of sovereignty and nationhood. We are equally concerned about those things that define the quality of life for the vast majority of Hawaiians: home ownership, education, health care, and employment. The Kakaʻako settlement will take us a big step further toward these ends. Ua mau ke ea o ka ʻāina i ka pono—the life of the land is perpetuated in righteousness.
How the Kakaʻako Settlement Benefits All of Hawaiʻi
Unlike the Department of Hawaiian Home Lands (DHHL), Kamehameha Schools, and other Hawaiian institutions which are land trusts, OHA is a money trust. Our charge is to manage the revenue stream that flows to us by virtue of OHA’s 20% share of revenues derived from certain state lands known as Ceded lands. The cash is deposited into OHA’s investment portfolio that earns a return on the investment. This money then goes directly into the Hawaiian economy as programs and services that empower Hawaiians and increase their capacity to build better families and better communities. Accepting a land settlement instead of cash presents some challenges in order to convert the land to a revenue stream. OHA now becomes a land owner who has to don the hat of a developer in order to convert the land to liquid assets.
This settlement should be embraced as a significant investment opportunity in the Hawaiian economy. Consider that OHA money flows to every corner of the state. Our $12.5 million in program grants last year alone was channeled to communities on every island. Much of it translated directly into enhancing family incomes by creating jobs and supporting a statewide network of health, education, recreational, and financial services. $90 million in bond financing over 30 years assists the DHHL to build residential communities on every island, which then translates into hundreds of jobs – not just for Hawaiians but for every person and every business that is connected to building homes. OHA’s annual $42 million operating budget also translates into hundreds of jobs, not limited to OHA employees but spread to our network of sub-contractors, suppliers, consultants, and so forth. Over the years OHA has allocated $9.5 million in support of the 17 Hawaiian Charter schools which has literally allowed them to keep their doors open. Our First Hawaiian Bank Mālama Loan program has put money in people’s pockets that then flow into the marketplace. The list of programs, services, and the portals through which OHA’s resources flows out to every corner of the state is exhaustive.
OHA is relevant to the growth of the Hawaiian economy in profound ways. In meeting our obligations to our beneficiaries many of the benefits flow through them to making Hawaiʻi a better place for everyone. We hope legislators and the general public will view the Kakaʻako Ceded Land Settlement as more than simply paying off a debt, and recognize that it’s a profound opportunity for OHA to grow its capacity to impact the Hawaiian economy in ways that help everyone. Hawaiʻi Loa Kū Like Kākou – All Hawaiʻi Stand Together