Hawaiʻi Community Development Authority OKs MOA to Oversee $5M East–West Center Renovations

The Hawaiʻi Community Development Authority voted Sept. 3 to authorize its executive director to enter into a memorandum of agreement with the Department of Business, Economic Development and Tourism’s Business Development and Support Division and the East West Center to oversee $5,000,000 in capital improvement work at East West Center facilities in Honolulu.

The agreement, as described to the authority, limits HCDA’s role to reviewing scopes of work for consistency with project details before contract execution, monitoring project schedules and progress, confirming completed work, reviewing invoices and recommending them for payment, and providing progress updates to DBEDT’s BDSD. The board approved the motion by roll call following discussion and questions from members.

The memorandum covers renovations identified in the East West Center Capital Improvement Action Plan and specific buildings including Imin International Conference Center (1777 East West Road), Lincoln Hall (1821 East West Road), Hale Kuahini (1811 East West Road), Burns Hall (1601 East West Road), Hale Halawai (1633 East West Road) and Hale Mānoa (1711 East West Road). Garrett Sasaki, HCDA chief financial officer, summarized the staff recommendation and said the state appropriation is intended to support the scope of work, which will include air-conditioner replacements, roof repairs and some accessibility work.

Dennis Ling, administrator of DBEDT’s Business Development and Support Division, told the board that the $5 million came from a state CIP appropriation after federal funding for the East West Center was sharply reduced. “I will recommend to the East West Center and the board that a $100,000 be provided to … HCDA for this,” Ling said, adding that he expected an additional $50,000 to cover administrative expenses or potential HCDA cost overruns, for a negotiated total of $150,000 to be paid to HCDA pending East West Center board approval and final negotiations.

Several members pressed staff to clarify HCDA’s fiscal exposure and the limits of its authority. Member Sakoda said language in the draft MOA that reads “review invoices approved for payment by HCDA” raised a red flag: “That sounds like HCDA has the final stamp on the payment,” he said. Garrett Sasaki replied that the funds will remain with DBEDT and that HCDA will not have fiscal control of the appropriation; HCDA’s role will be to confirm work was generally completed and to review invoices for accuracy and provide a recommendation for payment, not to manage contractors day-to-day or to control the appropriation.

Board members also discussed HCDA’s workload and how the agency will prioritize requests for support under the law members referred to as Act 252. Members asked staff to return with criteria for prioritizing projects brought to HCDA under that law, including whether priority should go to attached state agencies, county requests, project type and alignment with HCDA’s mission.

With no members of the public signed up to testify, Member Evans moved the authorization motion and Member Sikota seconded it. The board approved the motion by roll call; the motion’s proponents and the full roll call are recorded below.

The authority then moved to the monthly executive director’s report and closed public testimony on that item. The meeting adjourned at 10:22 a.m.