DHHL to seek commission approval next month for developer donation of ʻEwa commercial parcels

The Department of Hawaiian Home Lands presented a draft memorandum of agreement on Aug. 18 for Colonial/Kolania Oli Development to transfer title of two commercial parcels in ʻEwa to the department, subject to existing long-term commercial leases. The Hawaiian Homes Commission accepted the draft MOA for additional review and agreed the commission will be asked next month to approve the MOA after the attorney general reviews it.

DHHL staff said the donation proposal would give DHHL ownership of the parcels while keeping existing commercial leases in place. Suni (DHHL staff) told commissioners the department would “piggyback” on the developer’s due diligence and has added a planned contract clause requiring the developer to pay for required studies such as appraisals and environmental review. “We will be there, cooperating, participating, and then we have the ability to request the developer to ask for items that we want to see,” Suni said.

The developer team, led by Patty Tonkayo of Kolania Oli Development and partner Christian O’Connor, described the transaction as a way to create long-term revenue for the Hawaiian Homes trust by enabling commercial development that DHHL can hold and manage. “This is why this is my why,” Patty Tonkayo said, identifying herself as both a developer and a beneficiary. Christian O’Connor framed the plan as a mechanism to “unlock the value of the land” more quickly than conventional development routes and cited other Hawaiian trusts’ use of commercial assets to grow long-term income.

Multiple beneficiary leaders from the Kapolei/Waianae area testified in favor of continuing negotiations, saying the project had included homestead association outreach and signed community benefits agreements. Others in public testimony said they remained unconvinced or wanted more time to review the MOA and forthcoming lease drafts. Commissioner Antti (beneficiary representative) restated prior concerns about process and urged more engagement with beneficiaries before final approvals.

After public comment, DHHL staff proposed that the commission accept the draft MOA as presented today for the record and return next month with a final MOA that has been reviewed by the attorney general and that would include, as an exhibit, the proposed form of lease to which DHHL would take title subject. The commission voted to accept the draft MOA for the record and to ask that the Hawaiian Homes Commission be prepared to approve the MOA at its next meeting following attorney-general review. The motion as recorded states the commission "will be asked at next month's meeting to approve the acceptance of the MOA with the attorney general's review and approval." Commissioners cast the vote in the affirmative; the chair declared the motion carried.

What happens next: DHHL staff will revise the MOA to explicitly include the department’s standard lease provision assigning responsibility for required studies and environmental work to the developer, submit the revised MOA to the attorney general for review, and return to the commission next month seeking formal acceptance and any related approvals.

Why it matters: The transfer would add commercially leased property to the Hawaiian Homes trust that DHHL could use to generate recurring revenue without immediate outlay of trust capital. Proponents said that revenue can be used for housing and other beneficiary services; opponents expressed process concerns and asked for extra time for beneficiary review.

No final sale or lease was executed at the Aug. 18 meeting; the commission agreed only to return next month with a final MOA after AG review.