OHA trustees authorize negotiation to end Waialua lease as EPA cesspool rules loom

At a Dec. 17 meeting of the Office of Hawaiian Affairs (OHA) Committee on Investment and Land Management, trustees voted to authorize administration to negotiate termination of OHA’s general ground lease with the Department of Land and Natural Resources (DLNR) for a Waialua property leased to Hoʻomana, citing an EPA-mandated cesspool conversion deadline and potential fines.

Laurie Walker, OHA’s Interim Land Director, told trustees the property was previously treated as exempt from large‑capacity cesspool rules but that a 2023 DLNR compliance audit prompted the U.S. Environmental Protection Agency to reclassify the site. “The large capacity cesspool at this property…in fact is a large capacity cesspool,” Walker said, and she said DLNR notified OHA that the required conversion must be completed by January 2027. Walker told the committee that DLNR indicated EPA fines could be transferred to OHA and cited a figure of about $25,000 per infraction per day.

Why it matters: Hoʻomana operates outreach and meal programs on the site and several witnesses said termination or closure would disrupt services to vulnerable Native Hawaiian residents. Trustees and staff said the combination of regulatory, archaeological and coastal‑zone constraints has driven design quotes far above initial estimates and created a tight timeline for any compliance work.

Public testimony and technical assistance offers

Several public witnesses urged OHA not to close the site. Rowena, identifying herself as executive director of Poʻomana Thrift Shop, described weekly meal service and other supports and asked trustees to “continue our lease so that we will continue to be able to reach out to our Native Hawaiian people as well as the people in the community.” Michael Pangan, introduced as Rowena’s husband, expressed support. Junior Cabrera, a pastor and plumbing contractor, offered technical assistance and provided cost estimates: he said a standard septic system could cost about $15,000, an aerobic system about $30,000, and engineering drawings roughly $5,000–$10,000, but warned that the site’s Special Management Area designation could trigger archaeological review and add time and expense.

Staff history and financial picture

Walker summarized the property history: OHA holds a 65‑year gratis ground lease executed in 2014 with DLNR and the organization’s sublease with Hoʻomana has been no cost. Staff solicited design quotes after DLNR’s notification; Walker said earlier guidance suggested designs could be roughly $15,000 but recent vendor responses put design‑only costs “in excess of $200,000,” not including installation, because of SMA restrictions, sea‑level concerns and potential ground‑disturbance reviews.

Trustees pressed staff on options. Trustee questions focused on whether DLNR or Kauai County might assume conversion costs, whether OHA could negotiate fee transfer in return for investing in the property, and whether permits could be denied in an SMA. Walker said DLNR had signaled intent to transfer the parcel to Kauai County if OHA terminates the lease but staff had not yet negotiated cost‑sharing or a fee transfer; she said those possibilities could be part of negotiations.

Vote and next steps

Chair Keoni Susong moved to approve action item ILM 20 five-seventeen—authorization for administration to negotiate termination of OHA’s ground lease with the Department of Land and Natural Resources for the Waialua, Puna, Kauai property. After no further discussion, the committee held a roll‑call vote and the motion passed. The transcript indicates multiple trustees voted in favor and that Trustee Galliteri was excused; a full roll‑call tally is not recorded in the meeting record.

Trustees directed staff to pursue relocation options for Hoʻomana and to include negotiations with DLNR and county partners as part of the administration’s work. Walker said administration will continue to support Hoʻomana by identifying relocation alternatives and potential funding sources.

What remains unresolved

The committee did not commit OHA to spending on conversion, nor did it direct a particular funding source; trustees and staff left open negotiations with DLNR about transfer terms and whether OHA might seek fee title in exchange for investing in conversion. The precise total cost to bring the parcel into compliance and whether Kauai County or DLNR would assume some costs were not resolved. The conversion deadline given in the meeting is January 2027.

The committee adjourned after the vote.