When Kahala residents learned the news earlier this month that Genshiro Kawamoto was confined in a Tokyo jail on tax evasion charges, you could hear a collective sigh of relief. Could this be the end of an unhappy era where beautiful Kahala Avenue became an ugly eyesore?
No doubt the Japanese prosecutors are searching for answers to questions that Hawaii citizens are asking. Were the millions of dollars used to buy his Hawaii property and the statues littering his property a way to siphon taxable yen from Kawamoto’s bars and casinos on the Ginza? But another question is more important: What happens to Kawamoto’s property now?
It would be tragic if the acres of once-beautiful oceanfront property remain in its present blighted state, strewn with weeds, rusted rebar and jack-hammered shards of cement. We must breathe life and beauty back into the precious Kahala beach front.
What we do know is that Kawamoto will be too preoccupied with his legal woes or prison life to think much about what to do with his property. In fact, if convicted, Kawamoto will be a felon and unable to return to Hawaii. Without anyone attending to his property, the situation will only get worse.
Ultimately, the responsibility lies in the hands of our elected city officials. They must take quick action to rehabilitate Kahala. Fortunately they have the tools available to do that. Honolulu’s Housing Code, Section 27-9.1(k) allows for $2,000 daily fines for each continuing infraction, which includes "hazardous or unsanitary premises," "general dilapidation," "improper maintenance," "fire hazard" and "public or private nuisance."
With 26 properties in such condition, Kawamoto could be fined more than $50,000 each day! If, as likely, fines go unpaid, then the city can file liens. An even better option is for the city to hire work crews to rehabilitate the properties and send Kawamoto the bill for the expenses. The city can then force a sale of the property and recoup unpaid bills and liens.
But it is imperative that the city move quickly. The Japanese government might also seek to file tax liens, although that will be a complex endeavor. First, Japan will have to win a judgment against Kawamoto in a Japanese court and then use the "Hague Convention," an international treaty, to enforce the judgment through the Hawaii courts.
With competing liens, Honolulu and Japan should use mediation to divide the proceeds from property sales.
There should be no shortage of potential buyers for the beautiful Kahala beach front. But, it is important to find buyers with the "Aloha Spirit" and not have a repeat of the Kawamoto debacle.
To ensure Kahala’s rehabilitation, the Honolulu City Council should consider creating a "special design district," which would deter any future owner from allowing the land to remain blighted. New owners would be required to build an attractive residence along aesthetic design parameters established by a panel of local architects. This is not a novel solution. Already such "special design districts" have worked well in Diamond Head, Haleiwa and Waikiki.
We are now at a transition point and there is a new opportunity to halt the downward spiral and rehabilitate Kahala. Kahala Avenue is important for the entire city. It welcomes such major tourist attractions as the Sony Open and the Honolulu Marathon. Kahala is an important component of Honolulu’s tax base. The real property tax revenues for Kawamoto’s property have dropped by 20 percent because of the blight he has caused.
It is important for our city officials to seize the moment. With creative action, Kahala can once again become a gem of the Pacific.
