Gov. David Ige is being lobbied to veto a controversial bill that would wrest control of seven Kakaako streets from two brothers and give ownership to the state based on a 113-year-old resolution by Hawaii’s Territorial Legislature.
The two brothers, Calvert and Cedric Chun, didn’t testify at the Legislature while House Bill 2604 was being debated. But after lawmakers passed the bill May 5, the brothers, who do business as Kakaako Land Co., are urging Ige to exercise his veto power.
There also could be a request for a veto from within Ige’s administration, as the state Department of Land and Natural Resources said it is considering asking for a veto of the bill.
The Chuns say HB 2604 raises constitutional issues because it targets a single landowner and attempts to undo 113 years of private ownership by making a change to state law that would apply retroactively.
Kakaako Land suggested in a statement that lawmakers passed the bill to settle a legal dispute between the company and several business owners who contend in a state court lawsuit that
Kakaako Land doesn’t own the streets it claims to own.
“The matter is being rightfully decided in court, where disputes regarding title to real estate are adjudicated,” Kakaako Land said. “Let the legal process run its course.”
Kakaako Land has sent Ige a petition signed by about 160 people who included their addresses and phone numbers. The petition urges the governor to veto the bill and another measure, House Bill 2049, which would establish a roads commission and expand state and county power to condemn private roads.
“Both bills are fraught with serious legal complications and are opposed by many government agencies,” the petition said.
Kakaako Land claims that other private street owners in Kakaako control parking, including Howard Hughes Corp., Kamehameha Schools, Hawaii Gas, Waterhouse Properties, Pacifica Condominium and Symphony Development.
HB 2604, if enacted into law, would amend a statute governing the state Board of Land and Natural Resources so that a resolution by the Territorial House and Senate in 1903 is sufficient to convey portions of seven streets to what is now the state.
According to the 1903 resolution, Charles S. Desky, a developer who subdivided and sold parcels in Kakaako, was willing to give the territory his interest in Hustace Avenue; Kawaiahao, Cooke, Ward, Cummins and Laniwai streets; and a Queen Street extension of South Street. The resolution directed the superintendent of public works to accept a deed for the streets, but there is no evidence a deed was ever conveyed.
The Chuns said they bought the roadways in 1985 from Desky’s sole remaining heir for $5,000 plus returns equal to 25 percent of rental income from the property, according to documents in the lawsuit. To record the sale, the Chuns filed a quitclaim deed, which offers no warranties against other ownership interests in the property.
Over the past six years, the Chuns have posted reserved-parking signs and painted parking stalls on the streets where they charge $100 or more a month per stall. They also have towed cars parked without approval.
Those actions prompted several area business owners to sue Kakaako Land
in 2014. A trial is slated for October.
Bob Emami, owner of The Car Store at 836 Ilaniwai St., helped organize a demonstration last year where area business owners and residents expressed frustration about the parking situation and concerns over whether the Chuns would maintain the roads. He applauded lawmakers for addressing a problem, and he urges Ige to sign HB 2604.
Kakaako Land said its rules end the practice of some businesses monopolizing parking in front of their shops, and provide “more reliable” parking for people who live and work in Kakaako.
The company has collected statements of support from customers including employees of Altres, Servco, L&L Transmission, Obun Hawaii Inc. and Manthos Engineering LLC.
“I want to thank you and Kakaako Land Co. for providing convenient and reasonable priced parking to me and my colleagues here at Hawaiian Electric Co.,” Jimmy Carpenter, a HECO materials analyst, said in an email to Cedric Chun. “Your willingness to offer parking to us in the Ward/Cooke Street area is a tremendous help.”
Kakaako Land also points out that several state and county agencies testified in opposition to the two bills.
DLNR said it is considering asking for a veto of HB 2604 because it directs the agency to take the roads; DLNR says state law places public road ownership with the Department of Transportation or counties. DLNR also said the bill isn’t consistent with an area of state law that excludes public roads from DLNR lands.
The state Department of Transportation opposed both bills.
On HB 2049 the city Department of Facility Maintenance said in written testimony that the Legislature can’t determine ownership of privately owned property without a court judgment in an eminent domain action or without the consent of everyone with an ownership interest in the property.
The city Department of Corporation Counsel told lawmakers that they can’t convert ownership of private property to the government through a legislative act.
“The government cannot declare itself owner of private property by virtue of a resolution or other legislative act accepting the property when the owner has not gifted it as evidenced by conveyance of a deed,” Corporation Counsel Donna Leong said in written testimony on HB 2604. “The willingness of the state to accept a gift does not make the gift so.”
State Attorney General Doug Chin also raised problems with HB 2604, saying in written testimony that beyond the question of whether a deed was accepted by the territory, it is not clear exactly what property the resolution covered.
“The roads are defined by name only and there are no metes and bounds descriptions in the joint resolution,” Chin’s testimony said. “Further, the length, width, and location of the roads may have changed since 1903.”