Developer Seeks Fair Taxation, Disclosure of DPP Documents

posted in: July 2023 | 0

UIPA Request: In addition to seeking declaratory and injunctive relief, as well as damages, fees, and compensation (see cover story), the complaint filed in May by Marconi Point-related companies owned by Jeremiah Henderson III have also asked the U.S. District Court to compel disclosure of information and documents regarding the Honolulu Department of Planning and Permitting’s investigations of corruption within its agency. 

The complaint alleges that corruption was at the root of the DPP’s change of heart with regard to whether the work proposed at Marconi Point constituted development under Special Management Area rules.

On August 19, 2021, the law firm Damon Key Leong Kupchak and Hastert, which represents Henderson’s companies, filed a request with the DPP to access government records.

The firm sought materials provided to the FBI, the U.S. attorney for Hawaiʻi, and/or any other state or federal investigative or law enforcement agency “related to investigation of William Wong, Wayne Inouye, Kanani Padeken, Jocelyn Godoy, Jason Dadez, and/or Jennie Javonillo.” All of them have pleaded guilty to federal corruption-related charges.

The firm also wanted records and communications between DPP employees and the FBI, information related to misconduct of the DPP employees who pleaded guilty, as well as copies of all records produced to other requestors of information about the public corruption within the DPP.

The DPP denied the firm’s Uniform Information Practices Act request on September 14, 2021. 

“The request is the subject of a pending appeal to the Hawaiʻi Office of Information Practices (OIP). However, OIP advised plaintiffs that due to short staffing and a significant backlog, plaintiffs’ appeal would not be adjudicated in a timely manner and thus plaintiffs should consider initiating a court proceeding,” the complaint states.

Fair Taxation: In addition to the DPP, the complaint names the city’s Real Property Assessment Division (RPAD) as a defendant.

“[T]he defendants have violated plaintiffs’ constitutional rights by on one hand preventing plaintiffs from using their property for lawful agricultural purposes, while on the other hand simultaneously taking the position that the city is entitled to greater real property tax revenue because plaintiffs’ properties are not in active agricultural use,” it states.

It argues that the division improperly cancelled an agricultural dedication that would have resulted in lower property taxes within the Marconi Point condominium property regime. Litigation between the division and Makai Ranch led to a settlement covering taxes through 2018. The division effectively denied the ranch’s agricultural dedication petition in subsequent years.

“The RPAD defendants issued their assessment notices for the current 2023/2024 real property tax year on or about December 15, 2022. Despite the fact that plaintiffs’ units are unimproved (because of the DPP defendants’ refusal to issue the necessary permits and approvals), the RPAD defendants assessed plaintiffs’ units at rates much higher than fair market value and much higher than the rates used to assess plaintiffs’ neighbors, even plaintiffs’ neighbors within the same Project,” the complaint states.

Henderson’s companies seek a declaration from the court that the RPAD is violating county ordinances by improperly assessing their properties.

— Teresa Dawson

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