Fee Sale at Kahala Beach Apartments Prohibited

December 12, 2005

Contributed by Thomas Yoshida

Chief Justice Ronald Moon and associate justices Simeon Acoba, Steven Levinson and James Duffy were joined in the decision by Circuit Judge Richard Perkins, sitting in for associate justice Paula Nakayama, who recused herself. The court found that several of the plaintiffs did not meet the criteria to apply for condemnation. Two lessee-applicants rented out their units while claiming they were owner-occupants as required by law; another admitted to living in his unit for only three days while the law required continuous occupancy for one year.

"We're very pleased with this decision," said Colleen Wong, vice president for legal services at Kamehameha Schools. "The land at the Kahala Beach is part of a six-acre stretch of oceanfront property and provides significant support to our educational mission now and in the future."

"The decision supports the City Council's and the Mayor's decision to repeal Chapter 38," noted Louanne Kam, senior counsel for Kamehameha Schools.

Kamehameha Schools currently collects $3.2 million a year in lease rent from the Kahala Beach Apartment, which is used to fund campus and educational outreach programs and community collaborations. Kamehameha Schools is a private charitable trust founded and endowed by the legacy of Princess Bernice Pauahi Bishop and is the sole beneficiary of the Bernice Pauahi Bishop Estate. Kamehameha Schools operates a statewide educational system and currently 5,400 students of Hawaiian ancestry are enrolled in K-12 campuses on three islands and at 32 preschool sites statewide. Thousands of Hawaiian learners are also being served through a range of other Kamehameha Schools outreach programs, community collaborations and financial aid opportunities in Hawaii and across the continental United States.

Link: Read Hawaii State Supreme Court opinion (Adobe PDF)