|
HOUSE OF REPRESENTATIVES |
H.C.R. NO. |
245 |
|
TWENTY-FOURTH LEGISLATURE, 2008 |
S.D. 1 |
|
|
STATE OF HAWAII |
Proposed |
|
|
|
|
|
|
|
||
|
|
||
HOUSE CONCURRENT
RESOLUTION
REQUESTING THE AUDITOR TO CONDUCT AN AUDIT OF THE ALOHA TOWER DEVELOPMENT CORPORATION, particularly with regard to ITS LAWSUITS RELATING TO ITS DEVELOPMENT CONTRACTS, PROJECTS, AND PROCUREMENT PRACTICES, THE JUSTIFICATION FOR ITS EXISTENCE, AND ITS MISSION.
WHEREAS, the Aloha Tower Development Corporation was created pursuant to Act 236, Session Laws of Hawaii 1981, codified as chapter 206J, Hawaii Revised Statutes; and
WHEREAS, section 206J-1, Hawaii Revised Statutes, states the legislative findings and purpose in creating the Aloha Tower Development Corporation, in pertinent part as follows:
The legislature finds that the area in downtown Honolulu on the waterfront, including the Hale Awa Ku Moku Building and Irwin Memorial Park, hereinafter called the Aloha Tower complex, is one of the most valuable properties in downtown Honolulu and that certain portions of this area should be redeveloped, renovated, or improved to better serve the economic, maritime, and recreational needs of the people of Hawaii.; and
WHEREAS, the Aloha Tower Development Corporation is authorized under section 206J-5(9), Hawaii Revised Statutes, by itself, or in conjunction with qualified persons, to develop, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the development, construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, including projects or any portion thereof under the control or jurisdiction of qualified persons; to own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any project, including projects or any portion thereof under the control or jurisdiction of qualified persons; and
WHEREAS, the Aloha Tower Development Corporation has been embroiled in at least three lawsuits concerning its development agreements since its inception; and
WHEREAS, in 1988, developer Honolulu Waterfront LP sued Aloha Tower Development Corporation for breach of a development agreement executed in 1986, which was apparently settled; and
WHEREAS, in 2002, developer Aloha Tower LP sued Aloha Tower Development Corporation for breach of a development agreement concerning Aloha Tower Marketplace parking, which is still pending; and
WHEREAS, in 2007, developer Hughes Development LP sued Aloha Tower Development Corporation for breach of a development agreement executed in 2004, which case is set for hearing in May of 2008; and
WHEREAS, in its twenty-seven year history, the Aloha Tower Development Corporation has entered into the aforementioned three development agreements, all of which have culminated in lawsuits that have stalled, vitiated, or otherwise eviscerated development plans for the area; and
WHEREAS, it is believed that Aloha Tower Development Corporation does not have any current new projects, and exists presently to defend itself against the aforementioned pending litigation; and
WHEREAS, the Aloha Tower Development Corporation was last the subject of a state audit in 1987 by the Auditor, whose Report No. 87-13, found in pertinent part: "The Aloha Tower redevelopment project is a concept that is flawed, and it should be shelved," citing a litany of systemic problems and erroneous assumptions; and
WHEREAS, a management, performance, and financial audit of the Aloha Tower Development Corporation is appropriate at this time; now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the Senate concurring, that the Auditor is requested to conduct an audit of the Aloha Tower Development Corporation; and
BE IT FURTHER RESOLVED that the audit include, but not be limited to:
(1) A study of the aforementioned three litigated cases against the Aloha Tower Development Corporation;
(2) A determination of whether chapter 206J, Hawaii Revised Statutes, relating to the Aloha Tower Development Corporation, should be repealed or amended; and
(3) The appropriateness of any added responsibilities to the original mission of the Aloha Tower Development Corporation; and
BE IT FURTHER RESOLVED that the Auditor report to the Legislature on findings and recommendations no later than twenty days prior to the convening of the Regular Session of 2009; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, Chief Executive Officer of the Aloha Tower Development Corporation, the Director of Business, Economic Development, and Tourism, and the Governor.
Aloha Tower Development Corporation; Audit