Canadian developer claims to now control Galbraith land
By Ian Lind | May 8, 2008
Canadian real estate developer Dennis Blain and his Nokaoi Development LLC stepped forward at the end of April claiming to currently control the 2,000 acres of Galbraith Estate land in central Oahu.
Blain reportedly has a contract with Bank of Hawaii, the Galbraith Estate trustee, to purchase the property. The deal was apparently struck in secret while other prospective bidders and the public were being assured the bank was preparing a new listing agreement and that all interested parties would have a chance to submit bids at that time.
All of this was going on behind the scenes at the Hawaii State Legislature considered several different bills to authorize purchase or condemnation of the Galbraith land in order to keep them in agricultural use.
While both House and Senate were giving final approval to HB 2293 CD2, which contains provisions authorizing the state to protect the 2,000 acres of agricultural land in Wahiawa owned by the George Galbraith Estate, the Bank of Hawaii, was apparently trying to preempt the process with its own secret deal.
The legislature’s move to protect this prime ag land was supported this year by a diverse set of organiziations, including the Agribusiness Development Corporation, Hawaii Farm Bureau Federation, Trust for Public Lands, Kamehameha Schools, Wahiawa Community and Business Association, ILWU, Local 142, HPC Foods, Ltd., and others.
There’s substantial community concern about the possible loss of this significant agricultural property triggered by Bank of Hawaii efforts to sell the property as part of the termination and dissolution of the Galbraith Estate. One deal fell through at the end of 2007 and since that time, in legislative testimony, in reports to estate beneficiaries, and in response to questions from other potential bidders, the bank’s trust officer has repeatedly said that the land would be going back on the market and all interested parties would have another chance to bid.
In January 2008, Bank of Hawaii representative Josie Bidgood presented testimony to the House Committee on Water, Land, Ocean Resources, and Hawaiian Affairs:
The Trust has continued to market the property. First, discussions are being held with parties which submitted unsolicited expressions of interest after learning that the first round of offers had concluded. In addition, the trustee has issued requests for proposals to several real estate brokerage firms, and anticipates selecting a listing broker around mid February.
What Bidgood failed to mention here was that at least one unsuccessful bidder in the first round, the Trust for Public Lands, had notified the bank that they were prepared to submit another offer.
Lea Hong, Hawaii director of the Trust for Public Lands, said she had spoken with Bidgood about her organization’s readiness to submit another bid. Hong said Bidgood repeatedly assured her that once the property was listed for sale, all bidders would have an opportunity to step in.
But in the final weeks of the session, Bidgood privately informed legislators that a contract had been signed to sell the Galbraith land without considering other offers. It isn’t known whether other bidders might also have stepped forward if given the opportunity.
And the deal doesn’t appear to improve prospects for preservation of the area in agricultural use.
In an e-mail to Wahiawa area legislators, Sen. Robert Bunda and Rep. Marcus Oshiro, Canadian real estate developer Dennis Blain, owner of Nokaoi Development LLC appears to present himself as the new owner of the Galbraith land.
In the e-mail, Blain says that he “conducted a market study into the salability of the lands and the price that could be generated through the marketing and sale of 30 acre farms.”
“The response that I received was tremendous with virtually every parcel being spoken for,” Blain wrote.
An appraiser put the value of the land at $252,000 per acre for 5-acre parcels, which are allowed under the current Ag-1 zoning, according to Blain.
The e-mail refers to “third party contracts that I currently have for the sale of these lands….”
Clearly, at these prices, Blain is aiming for pseudo-agricultural country estates rather than real farming.
Although circumspect, the e-mail appears to make clear that Blain is not talking about agriculture.
Farming is seemingly becoming feasibly more difficult in the State of Hawaii. Restricting these alnds will substantially reduce their value with the limited possibilities, and will cause me and my company substantial financial loss. I believe it woudl be extremely unfair if these restrictions were targeting 100 percent of one property owner’s lands.
In the end, Blain offers to sell the land to the state at “a reduce price of $68,000,000 or $32,300 per acre” in an unspecified partnership that would end up giving the state ownership of Lake Wilson. The e-mail doesn’t make clear whether this proposed deal would in turn allow his company to proceed with development plans for the rest of the Galbraith lands.
Nokaoi Development LLC’s web site says it is currently developing seven properties on Maui.
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Two bills authorizing public purchase of Galbraith lands face final deadline
By Ian Lind | April 25, 2008
Two bills that would authorize the State of Hawaii to negotiate for purchase of the Galbraith lands in Wahiawa are still alive as House and Senate negotiators try to beat a midnight deadline.
HB 2293 and SB 242 are both scheduled for last minute hearings today.
If the bills are not submitted by the midnight deadline, they are dead for this year. Hawaii’s annual legislative session is scheduled to adjourn next Thursday, May 1.
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State of Hawaii could authorize purchase of Galbraith land
By Ian Lind | February 27, 2008
Several bills that would authorize the State of Hawaii to purchase about 2,000 acres of land near the town of Wahiawa now owned by the Trust Estate of George Galbraith have received committee approvals and are poised for initial approval by their respective legislative bodies.
House Bill 2293 would authorize the issuance of revenue bonds in an amount sufficient to complete the purchase, and House Bill 2292 would appropriate state funds, while Senate Bill 2421 recommends exploring various financing mechanisms that might be available.
Both bills are expected to be approved by the full House and Senate, respectively, next week. The House bill then goes on to the Senate for further debate and amendment, while the Senate bill makes the return trip.
Passage of similar bills raises the chances that a final agreement can be reached before the Hawaii State Legislature’s annual session ends in the first week of May.
A commitee report by the Senate Committee on Water and Land found:
Your Committee finds that as development pressures and urban sprawl increase on Oahu, our local community has become increasingly concerned about land use, food self-sufficiency and security, natural resource depletion, and economic dependency on imported food and products. The purchase of the George Galbraith Estate lands, comprising approximately two thousand one hundred acres of agricultural lands north of Wahiawa, is intended to be an investment in a sustainable future in agriculture.
Both bills recognize that the land was appraised for tax purposes in October 2006 for approximately $100 million.
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Bills authorizing state purchase pass first committee votes
By Ian Lind | January 30, 2008
Testimony presented at a January 30, 2007 public hearing by two legislative committees on bills to authorize the state to purchase the Galbraith Estate lands in Wahiawa is now available in several large pdf files on the Hawaii State Legislature’s web site.
Both bills, HB 2292 and HB 2293, were approved by the members of the House Committee on Agriculture and the Committee on Water, Land, and Hawaiian Affairs following the early morning public hearing.
If approved by the House Finance Committee, chaired by Rep. Marcus Oshiro, the bills’ sponsor and the representative for the Wahiawa area, the would then face a vote by the full House of Representatives. If successful, the bills would then be sent to the Senate for further consideration.
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Assessed value of Galbraith land
By Ian Lind | January 29, 2008
The following information appears in HB 2293:
For tax purposes, the city and county of Honolulu has determined that as of October 1, 2006, the total property assessed value of the parcels situated in central Oahu was approximately $100,000,000:
Parcel Assessed Value
TMK 6-5-002:010 $10,569,100
TMK 6-5-002:025 $6,154,700
TMK 6-5-002:026 $3,589,000
TMK 7-1-001:001 $1,898,900
TMK 7-1-001:002 $17,492,900
TMK 7-1-001:003 $7,879,900
TMK 7-1-001:005 $12,969,000
TMK 7-1-001:006 $3,421,500
TMK 7-1-001:007 $813,500
TMK 7-1-001:008 $17,613,100
TMK 7-1-001:012 $1,736,400
TMK 7-1-001:013 $900
TMK 7-1-001:017 $100
TMK 7-1-001:020 $11,300
TMK 7-1-001:021 $7,200
TMK 7-1-001:022 $156,800
TMK 7-1-001:023 $1,041,200
TMK 7-1-001:024 $200
TMK 7-1-001:025 $998,600
TMK 7-1-001:026 $11,356,900
TMK 7-1-001:027 $464,100
TMK 7-1-001:028 $507,400
TMK 7-1-001:029 $335,500
TMK 7-1-001:032 $878,900
TOTAL $99,897,100
A reader notes that this is “slightly higher than the $30 milion that Hawaiian Trust Company may have been willing to dump it for.”
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Hawaii Legislature considering bill to purchase Galbraith land
By Ian Lind | January 29, 2008
The Hawaii State Legislature is considering several Galbraith-related bills, including House Bill 2292, which is scheduled for its first public hearing on Wednesday morning, January 30, 2007.
The link above shows the current status of the bill, with a link to the text at the top of that page.
According to the summary:
Enables the agribusiness development corporation to contract with banks to provide lease management services. Allows corporation to lease agricultural lands for up to 55 years. Authorizes the corporation to purchase agricultural lands owned by the Galbraith Estate. Makes an appropriation to acquire Galbraith Estate Lands.
The bill was introduced by Rep. Marcus Oshiro, who represents the Wahiawa area and is also chairman of the House Finance Committee, which has primary responsibility for the state budget.
Information about how to submit testimony on the bill, including via email, appears at the bottom of the hearing notice. Although they encourage testimony 24 hours in advance, it will be accepted up to and even after the hearing, so please don’t be deterred.
A companion bill, HB 2293, would authorize issuance of revenue bonds to complete a purchase.
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