The Hawaiian Homes Commission on Dec. 15 accepted for the record the beneficiary consultation report on a proposed donation of two Ewa Beach parcels that would be conveyed to the Department of Hawaiian Home Lands subject to a 65‑year commercial development ground lease.

Planning staff described the transaction as a three‑step sequence: a private developer purchased the properties; it would lease them to a special‑purpose developer entity (Hale Kuai LLC) under a 65‑year commercial ground lease; and the purchaser would donate the fee interest in the parcels to DHHL subject to that lease. Russell Ako, staff with the office of the chair, summarized the proposed lease terms: a base ground rent equal to 8% of the developer’s purchase price (8% of a stated $6,025,000), which staff estimated at about $482,000 in the first lease year; scheduled 10% step‑ups to the base rent every five years; and a participation provision that would pay DHHL 50% of distributable cash flow after the developer achieves a 25% internal rate of return (IRR). Ako also described a community benefits package that would direct one‑third of base rent payments to homestead associations within a roughly 4–5 mile radius around the site.

The staff presentation reiterated that the developer would pay all development costs, including environmental review, permitting and design; DHHL’s planning office said the commission would remain the reviewing body for any required environmental assessment or environmental impact statement.

The item drew several hours of public testimony. Supporters told the Commission the donation would return land to the trust and unlock revenue and development capacity that could help reduce the wait list. “Economic development is not optional; it’s necessary,” said one supporter who noted the donation would add acreage to DHHL’s inventory and produce long‑term revenue. Several homestead association presidents testified in favor, describing potential job opportunities and support services planned for beneficiaries.

Opponents focused on environmental, traffic and process concerns. Multiple public speakers referenced historical industrial uses on the parcels and urged a full environmental due diligence and a Phase II investigation before DHHL assumed title or responsibility. Dan Ford, an environmental consultant retained by the development team, said a Phase I assessment found only typical agricultural and scattered historical uses and that the developer planned targeted Phase II testing and cleanup steps if contaminants are identified. Local residents also warned that Fort Weaver Road and nearby intersections already face heavy congestion and asked for more detailed traffic and flood mitigation studies.

Several speakers raised governance and transparency questions. Representative Garner Shimizu had earlier urged deferral pending additional UIPA records, and other testifiers alleged insufficient outreach or said community association endorsements were not universally authorized. Some public commenters urged recusal for Commissioners they said had ties to the project; the chair had earlier recused from some parts of the discussion. Staff said piggyback due‑diligence rights allow DHHL to review the developer’s studies and require additional testing before final acceptance of the donation.

After the beneficiary testimony period and discussion, the Commission voted to accept the beneficiary consultation report for the proposed donation. A roll‑call vote recorded seven ayes and the motion carried; the record shows the chair recused during the voting on this item. Acceptance of the consultation report does not itself approve the draft memorandum of agreement or the form of ground lease; staff said completed environmental and permitting steps, and any final memorandum of agreement or lease form, will be returned to the Commission for further action.

What’s next: staff will continue environmental review and see the developer through the EA/EIS and permitting process; the office of the chair intends to present a memorandum of agreement and form of development ground lease at a future meeting only after DHHL staff and the Attorney General’s office determine the environmental and legal profile is acceptable.