Status of settlement fees uncertain


It is not yet clear whether Hawaii County would owe a fee on land it may eventually take from 1250 Oceanside Properties.

A 2006 settlement agreement between a number of litigants, including Protect Keopuka Ohana and several individuals, called for 1.75 percent of the gross sales price by Oceanside of Front Nine LLC of a Hokulia home or lot to an independent buyer to be donated to the Hokulia Foundation. Additionally, any resales of Hokulia lots would be subject to a quarter of a percent fee, also to be directed to the Hokulia Foundation.

Corporation Counsel Lincoln Ashida said the county may have to pay that fee, but it wasn’t discussed when the county reached a more recent settlement regarding who would extend the Mamalahoa bypass that cuts through the property. The bypass was a required feature as part of the development agreement when the Hokulia project was approved.

“I don’t think that (the fee) would have been a deal breaker” in the more recent settlement negotiations, Ashida said.

Chuck Flaherty, one of the parties in the 2006 settlement, said he conducted a title search on a recently sold Hokulia lot and learned the settlement agreement had not been recorded with the state’s Bureau of Conveyances.

An attempt to reach Robert Kim, Flaherty’s attorney in the lawsuit that resulted in the 2006 settlement, was unsuccessful Monday.