Monday, October 14, 2024
Hawai'i Free Press

Current Articles | Archives

Saturday, April 26, 2014
The Kobayashi Group is not a “Small Business” as Defined by the HCDA Law
By News Release @ 3:16 PM :: 6526 Views :: Development, Small Business

The Kobayashi Group is not a “Small Business” as Defined by the HCDA Law

News Release from Senator Laura Thielen, April 23, 2014

Thursday April 24th the Senate is voting on whether to confirm Brian Tamamoto as the Small Business representative on the Board of Hawaii Community Development Authority (HCDA).

I oppose Mr. Tamamoto’s nomination. Nothing against the gentleman personally. But his nomination violates the letter, or at least the intent, of the law requiring small business representation on the HCDA Board.

The law requires two members of the nine-member HCDA Board “shall represent small businesses on the Board, and be owners or active managers of small businesses” located in Kakaako.

Small business” is defined as “a business which is independently owned and which is not dominant in its field of operations.”

Mr. Tamamoto works for a subsidiary of the Kobayashi Group, which is self-described development company that “successfully responded to real estate market changes by transforming itself from a quality housing and commercial developer to a high-end resort, luxury residential and retail developer in recent years” which “has had significant influence on the development and business landscape in Hawaii.”

According to their Web page, the Kobayashi Group has developed over $3 Billion worth of property in Hawaii. Major projects include Kukio Golf and Beach Club, Wailea Beach Resort Condominium-Hotel.

In addition, Kobayashi Group is in partnership with the Howard Hughes Corporation to build ONE Ala Moana, the ultra-luxury condominium being built above Nordstrom’s parking in Ala Moana.

In addition, they and a partner purchased six acres in Kakaako to build two luxury residential condominiums, which purchase was confirmed by Mr. Tamamoto during his confirmation hearing, although he stated the plans for the property were not finalized.

In addition, Kobayashi Group is also in a partnership to replace the King’s Village retail complex in Waikiki with a luxury condominium-hotel. According to PBN, the project presentation to the Neighborhood Board stated they would seek height, density and setback exemptions for the development.

So you decide – is this a small business that is not dominant in the field of development in Hawaii?

The decision is important, because the small business representatives on the HCDA Board are granted a partial exemption from the laws governing conflicts of interest. In 2008 the Legislature passed SB 2654 which states:

Notwithstanding section 84-14(a), the small business representatives shall not be prohibited from voting on any matter concerning any district under the board’s jurisdiction; provided that the matter is not limited to solely benefitting the specific interest of that member and the matter concerns broader interests in the district.

Translation: a small business representative can vote on density limits, setbacks, affordable housing policies, permissible uses and other similar rules that are applied in Kakaako. But they couldn’t vote on approving a permit for their own business.

The Legislature clearly stated the reason for this partial exemption was to make sure the small business representatives could further the legislature’s intent, “which was to address insufficient commercial and industrial facilities for rent in the Kakaako area.”

The partial exemption from conflicts of interest makes sense when you have a small business representative who owns a light industrial business like an auto body shop, or a commercial restaurant.

How is it not a direct conflict of interest for the Kobayashi Group representative to vote on the affordable housing policy for Kakaako, when they own property in Kakaako and are in the business of developing luxury residential condominiums?

How is this company, given it’s focus, meeting the intent of the law – to increase the industrial and commercial rentals in Kakaako – to make sure the area really is a working, diversified community?

I am really displeased at being sent this nominee as the so-called small business representative for the Board of HCDA.

---30---

Background: HCDA ‘Small Business’ Reps: Kobayashi & Mitsunaga

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii