OHA trustees approve broad real estate strategy, defer decision on Hakuone and use of LLCs

The Office of Hawaiian Affairs Board of Trustees on Oct. 31, 2024 approved a proposed real estate strategy addressing how OHA will acquire and manage investment and non‑investment properties, but the board deferred a final decision on the future of Hakuone and the use of LLCs to hold individual assets.

Consultant presentations and written materials before the board described the strategy as a comprehensive framework that includes best practices, asset allocation, prudent investment standards, land management, and efforts to balance economic and cultural values. Paul (presenter) told trustees the action item also responds to findings in the March 2023 state performance audit that said OHA lacked a coherent real estate strategy. "What is presented today is board approvals of a comprehensive real estate strategy that will include, among other elements, sections dealing with best practices, asset allocation, prudent investment standards, land management, balancing economic and cultural values," Paul said.

Why it matters: the strategy guides how OHA will manage property that funds programs for Native Hawaiians and steward culturally significant lands. Trustees and staff said final answers on Hakuone and LLC governance are central to the operating model and business plan, so the board voted to approve most strategy elements while postponing those specific decisions.

What trustees approved and deferred: trustees voted to approve the proposed strategy items for investment and legacy lands except for several clauses tied to using LLCs and one full strategy tied to "Hakuone" (described in the materials as unlocking development value). During deliberations Paul clarified the board would approve strategy items such as increasing financial returns, improving performance and reporting, generating non‑financial outcomes, and reducing certain operational risks, but that the board would defer: Strategy 1 tactic 6 (investment lands), Strategy 3 tactics 2 and 3 (investment lands), Strategy 4 in its entirety for investment lands, and legacy‑land Strategy 4 tactic 1 until further deliberation and legal review.

Trustee concerns and public comment: Trustee Trask objected to the process and raised legal and procurement concerns, saying she has forwarded alleged violations of the state open‑meetings law and procurement irregularities to state and federal reviewers. "I'm letting you know now that I have forwarded my concerns both to state and federal agents," Trustee Trask said, asserting repeated waivers of the 72‑hour posting requirement and raising questions about the presence and contracts of consultants named in earlier agenda materials.

A beneficiary who spoke during public comment, Germaine Myers, disagreed with Trask's characterization and urged civil discussion. "This is not a violation of Sunshine Law," Myers said, and added she was concerned by what she described as threats of litigation and by trustees using personal interests in their public roles.

Follow‑up and next steps: trustees asked staff and counsel to clean up the action language so the record matches precisely what was approved and what was deferred. Trustees asked for a legal review and further analysis of LLC structures, including an analysis of the Waimea Valley LLC operating model to show how a future LLC might differ from past arrangements. The board directed staff to return with more specific legal and operational information in a later workshop or meeting. The motion passed with a roll call showing eight trustees in favor and one opposed; the notation in the record shows Trustee Trask voting no.

Ending: Board members and staff repeatedly emphasized that deferring decisions on Hakuone and LLC governance was intended to give the board time to examine alternatives — a single‑purpose LLC with separate governance, a joint venture, a master ground lease, or an outright sale — before committing to a structure that would shape OHA's future real estate business model.