Trying to fulfill a solemn trust: Land Management at the Office of Hawaiian Affairs

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Trying to fulfill a solemn trust Land
Management at the Office of Hawaiian Affairs

• Presentation to Leading Change 2008
• Blending Indigenous and Western Planning Tools
• October 1, 2008
• Anchorage, Alaska
• Jonathan Likeke Scheuer, Ph.D., Land Management
  Director
• Stanton K. Enomoto, Special Assistant to the
  Administrator
• Office of Hawaiian Affairs

Wao Kele O Puna, Hawaiÿi Island
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Presentation Overview

• Presentation focus How OHAs Land work fulfills
  its mission and may relate to other Native
  Hawaiian initiatives in the State
• Introduce myself and the OHA land team
• Contextualize OHA its Real Estate Mandate
• OHAs Acquisitions Land Strategy
• Key Strategy Elements
• Next Steps Opportunities

Wao Kele O Puna, Hawaiÿi Island
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I. Introductions

• Stanton, myself
• Jim Springer, Land Officer, 30 years experience
  in commercial real estate and finance
• Carol Hoÿomanawanui, financial analyst
• Kaiwinui Yoon, architect
• Key Consultants
• Reporting Chain
• Clyde W. Nämuÿo, Administrator
• Board of Trustees

Kapahu Living Farm, Kïpahulu, Maui
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II. OHAs Real Estate Context

• Will not address overthrow issues, though central
• Will look at our mandates who OHA is
• Federal
• Constitutional
• Statutory
• Mission
• Historic and recent growth in Real Estate

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• A solemn trust (HRS 10-1)
• The people of the State of Hawaii and the United
  States of America as set forth and approved in
  the Admission Act, established a public trust
  which includes among other responsibilities,
  betterment of conditions for native Hawaiians.
  The people of the State of Hawaii reaffirmed
  their solemn trust obligation and responsibility
  to native Hawaiians and furthermore declared in
  the state constitution that there be an office of
  Hawaiian affairs to address the needs of the
  aboriginal class of people of Hawaii.

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• Constitutional Mandates HSC XII, 5
• There is hereby established an Office of Hawaiian
  Affairs. The Office of Hawaiian Affairs shall
  hold title to all the real and personal property
  now or hereafter set aside or conveyed to it
  which shall be held in trust for native Hawaiians
  and Hawaiians...

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• Constitutional Mandates Article XII, Section 6
• The board of trustees shall manage and
  administer the proceeds from the sale or other
  disposition of the lands, natural resources,
  minerals and income derived from whatever sources
  for native Hawaiians and Hawaiians, including all
  income and proceeds from that pro rata portion of
  the trust referred to in section 4 of this
  article for native Hawaiians to formulate policy
  relating to affairs of native Hawaiians and
  Hawaiians and to exercise control over real and
  personal property set aside by state, federal or
  private sources and transferred to the board for
  native Hawaiians and Hawaiians

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• What is the pro rata share referred to?
• Federal Mandate, Hawaiÿi Admissions Act (1959)
  5(f)
• The lands granted to the State of Hawaii shall
  be held by said State as a public trust for the
  support of the public schools and other public
  educational institutions, for the betterment of
  the conditions of native Hawaiians, as defined in
  the Hawaiian Homes Commission Act, 1920, as
  amended, for the development of farm and home
  ownership on as widespread a basis as possible
  for the making of public improvements, and for
  the provision of lands for public use.
• OHA created to help fulfill Admissions terms

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• OHA also has an advocacy role HRS 10-1(b)
• It shall be the duty and responsibility of all
  state departments and instrumentalities of state
  government providing services and programs which
  affect native Hawaiians and Hawaiians to actively
  work toward the goals of this chapter and to
  cooperate with and assist wherever possible the
  office of Hawaiian affairs.

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• OHAs Mission
• To mälama Hawaiis people and environmental
  resources, and OHAs assets, toward ensuring the
  perpetuation of the culture, the enhancement of
  lifestyle and the protection of entitlements of
  Native Hawaiians, while enabling the building of
  a strong and healthy Hawaiian people and nation,
  recognized nationally and internationally.
• OHAs Mission integrates Real Estate,
  Environmental, Cultural, and Political Goals

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• But OHA did not really own land till 2006, why?
• Earlier years were a constant struggle
• Unfulfilled state obligations
• Mission / resource mismatch led to conflict
• OHA has mostly focused on advocacy - not a small
  job
• E.g. Mauna Kea, Waiähole, Papahänaumokuäkea
• But not on ownership
• Until June 29, 2006, OHA owned
• Leases for office space
• Two State set asides
• 1.1 acre Pahua Heiau (Hawaiÿi Kai)
• Total acres owned in fee 1.1

Waimea Valley, Oÿahu
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II. OHAs Real Estate Context

• Thirty years of growth has led to increasing
  maturity
• 1993 Payment of 130M past due
• Has grown to be a 400M portfolio
• Stable Leadership in Board and Administration
• 2006 going forward determination of 15.1M/year
• Stability has created many opportunities to reach
  our goals
• Regaining land (particularly ceded lands) and
  water rights has always been a consistent goal of
  OHA and Native Hawaiians

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III. OHAs Acquisitions Land Strategy

• Beginning in 2005, and closing in two weeks of
  2006, OHA acquired nearly 28,000 acres of
  important land.
• June 30 1,875 acre Waimea Valley, Oÿahu
• July 14 25,856 acre Wao Kele O Puna
• Total acres owned in fee ca. 27,732
• Our best calculations, based on the most recent
  data OHA is now the 13th largest landowner in
  the state by acres
• A little about these holdings

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III. OHAs Acquisitions Land Strategy

• Wao Kele O Puna
• Former ceded land (later owned by Campbell
  Estate) on the flank of Kïlauea
• Acquisition partners included Federal State
  Government, Trust for Public Land, local
  non-profits
• First ceded land returned ownership of a
  representative of the Hawaiian people since the
  overthrow in 1893
• Guarantees ability to exercise traditional and
  customary rights
• Asset value
• Appraised value is 12.25 million
• Total acquisition cost 3.66 million
• Cost to OHA 300,000, or around 11.60/acre

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III. OHAs Acquisitions Land Strategy

• Waimea Valley
• Area of immense cultural significance community
  struggle
• Opportunity to acquire emerged in 2005
• Parties to the transaction
• US Army ACUB program 3.5 million
• City and County 5.0 million
• DLNR 1.6 million
• OHA 3.9 million
• Recently formed Hiÿpaka LLC
• A single member, manager managed non-profit
• Holds manages asset

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III. OHAs Acquisitions Land Strategy

• Both Waimea and Wao Kele were opportunistic
• BOT had mandate but lacked policy to guide
  acquisition
• Need for strategy was clarified
• As the offers poured in

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III. OHAs Acquisitions Land Strategy
OHA Real Estate Business Plan
OHA Real Estate Vision Mission Strategy
OHA Real Estate SWOT Analysis
OHA Real Estate Investment Policy
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IV. Land Strategy Elements

• On June 25, 2007, BOT adopts the VMS
• Overarching policy statement regarding
• Future property involvements
• BOT roles and responsibilities and
• Commitment to develop staff capabilities towards
  the evaluation and management of such properties.

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IV. Land Strategy Elements

• The OHA real estate vision is to be the real
  estate partner of choice
• By every person and entity with any involvement
  in Hawaiÿi lands individuals, institutions,
  corporations, public purpose entities and
  government agencies.
• For any and every type of Hawai'i property and
  Property Involvement.
• This is an audacious vision
• But audacious R us and we are proud of our
  recent history

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IV. Land Strategy Elements

• Sharing a recent unintended compliment
• Moreover, we think the vision is necessary given
• Our mandates
• The needs of our beneficiaries
• The overall goal of building a Nation
• The way land is a tool to achieve these things
• And, we think over time, we can achieve the vision

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IV. Land Strategy Elements

• We intend to achieve our vision by
• Systems Development
• Growing to a meaningful scale
• Acquisitions
• Pursuing both ceded and non-ceded lands
• Advocacy
• Formally articulating A Hawaiian Sense of Place
  
• Developing aligned organizations
• Develop separate entities to hold key assets
• Continuing and growing partnerships
• With Hawaiian organization and others

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V. Next Steps Opportunities

• Creation of separate entities
• Partnering with DHHL, other trusts
• Ongoing negotiations over past-due revenue on
  ceded lands
• Planning for the use of the lands

Waimea Rededication