Editor’s note:ÌýFor Hawaii’s Aug. 9 primary, Civil Beat asked candidates to answer some questions.
The following came from Lorraine Pualani Shin-Penn, one of 16 candidates for three at-large seats on the Office of Hawaiian Affairs Board of Trustees. The six who win the most primary votes advance to the general election.
Go to Civil Beat’sÌýElections GuideÌýfor general information, and check out other candidates on theÌýPrimary Election Ballot.
Name: Lorraine Pualani Shin-Penn
Office: Office of Hawaiian Affairs At-Large
Profession: Real estate developer and property manager
Education: Bachelor’s, Business Administration, majoring in real estate
Community organizations: President of Penn Hawaii Youth Foundation; Hawaii County commissioner, Board of Ethics; past president, East Hawaii Coalition of the Homeless; Rotary Club of Hilo; Hawaii Portuguese Chamber.
1. Why are you running for the Office of Hawaiian Affairs?
OHA is going through an evolution of growth and expansion. OHA needs a Trustee with business experience and proven credentials to manage itsÌýinvestment portfolio and landholding in itsÌýmission of providing opportunities for a better life and future of all Hawaiians. The Audit of the Office of Affairs and Reports and the Implementation of State auditiors 2009 OHA Recommendations dated September 2013 reports, “OHA’s land management infrastructure is inadequate, unable to support the office’s growing portfolio nor any future land developments. For instance, we found that OHA’s real estate portfolio is unbalanced, with revenues generated from commercial properties unable to offset expenses from legacy and programmatic land holdings. In 2008, OHA Trustees disregarded a consultant’s proposal to expand its Land and Property Management division as well as proposal for a real estate business plan and investment policy. Instead in 2010, the trustees adopted a one-pageÌýreal estate investment policy.” As a Trustee, I would bring years of business experience and proven credentials to OHA. I would meet and strategizeÌýwith other trustees to expand its Land & Property Management Division as well as real estate business plan and investment policy.
2. What is your view regarding OHA’s efforts to build a Hawaiian nation?
There are pros and cons by Hawaiians and citizens of Hawaii regarding OHA’s efforts to build a nation. I’m a Native Hawaiian who is proud to be a U.S. citizen. I understand that one of the OHA’s strategic priorities is to achieve self-governance, after which the assets of OHA will be transferred to the new governing entity. OHA needs a Trustee who has business experience and proven credentials to manage their investment portfolio and land holdings in the mission of providing opportunities for a better life and future of all Hawaiians.
3. What is your view on the U.S. Department of Interior’s proposed rule making on a government-to-government relationship?
I do not agree with the Interior’s proposed rule making on a government-to-government Ìýrelationship. I’m Native Hawaiian who is proud to be a U.S. citizen. It appears DOI’s visit to the island was premature and not given much thought before they arrived. Until there is a consensus among the Hawaiian people, their ideas of government-to-government relationship are not acceptable.
4. OHA has focused on developing land holdings in order raise revenue to help beneficiaries. Is this an appropriate avenue for OHA to pursue?
Yes, I support responsible developments of OHA’s land holdings to raise revenue to help beneficiaries. OHA’s constitution adds, “The board of Trustees of the Office of Hawaiian Affairs shall exercise power as provided by law: to manage and administrate the proceeds from the sale of other disposition of the lands, natural resources, minerals, and income derived from whatever source for native Hawaiians and Hawaiians, including all income and proceeds from the pro rata portion of the trust referred to in section 4 of this article for native Hawaiians; to formulate policy relating to affairs of native Hawaiian and Hawaiians; and to exercise control over real and personal property set aside by State, federal or private sources transferred to theÌýboard of native Hawaiians and Hawaiians.”
5. OHA’s stated purpose is to provide “opportunity for a better life and future” for all Native Hawaiians. Is it doing that? and if not, what would you do about that?
Based on the Audit of the Office of Hawaiian Affairs and Report on the Implementation of State Auditor’s 2009 OHA Recommendations dated September 2013 states, “Without the polices, procedures, and staff to help guide and support the increased real estate activity, OHA’s Board of Trustees cannot ensure that its acquisitions are based on a strong financial foundation. Better land planning and grand monitoring would help OHA fulfill its duties.” It also reports that grant oversight and accountability is lacking. OHA needs a Trustee with business experience and proven credentials to manage itsÌýinvestment portfolio and landholdings. As former state director of USDA Rural Development with offices of Hawaii, American Samoa, Marshall Islands, Micronesia, Guam, Northern Marianas, and Palau, my team brought in over $1 billion to fund programs for housing, community facilities, business guarantee loans, first responder facilities and equipment, and grants. In 2008 the Big Island experienced a major earthquake that damaged the Kohala Ditch, stopping precious water farmers. U.S. Sen. Inouye’s office contacted me at USDA, and we were able to secure a $2 million grant to repair the Kohala Ditch. As the president of Waiakea Center in Hilo with anchor tenant Wal-Mart, we provided hundreds of job. As president of M.S Petroleum, we operated eight service stations and a petroleum plant on the Big Island. As a trustee IÌýwould work closely with the other Trustees to strategize a real estate business plan and investment policy.
6. IS OHA doing enough to protect the environment improve the health of Native Hawaiians and perpetuate the culture? What ideas would you bring to OHA?
I believe the OHA Board of Trustees is making an effort to improve the health of Native Hawaiians and perpetuate the culture. I attended a few seminars for OHA with speakers addressing the need to improve the quality and longevity of life for Hawaiians. Speakers focused on a healthier lifestyle that would reduce the onset of chronic diseases because many Hawaiians continue to eat a lot of fat and salt in their diet. OHA has been responsible in their quest to perpetuate the culture through language, religion, spiritual, and subsistence. I sat in a seminar learning and understanding the Hawaiian history and culture through chants. As for responsibilities, they are to be the caretakers of our Hawaiian lands to benefit future beneficiaries. As a Trustee, I would strategize with other Board Trustees to revisit the policies in place to discuss the changes or improvements needed to address the environment, healthy lifestyle, and perpetuate the culture.
7. Are you satisfied with the way OHA has negotiated with the state over ceded-land revenues?
I reviewed the settlement documents regarding the ceded lands. I’m not an attorney, but I believe it was not in the best interest for OHA’s beneficiaries. In exchange for the land, OHA may have given up revenues far exceeding $200 million for the land exchange. As a real estate investor, I always base my negotiations on the return on my investment. I am not aware if a feasibility study was done for the property by OHA. I do know that a due-diligence was done by OHA. The property is restricted and under the jurisdiction of Hawaii Community Development Authority (HCDA). Based on these concerns, what is the real value of this property?
8. What other important issue would you like to discuss here?
Geothermal may be one of the best investments for OHA, harvesting nature’s resources as renewable energy. The cost of fossil fuel keeps increasing which ultimately affects businesses, industries, and families, OHA has invested about $600,000 in support of the Innovations Development Group (IDG) founded by Robbie Cabral. Cabral states, “A key element of IDG’s continued commitment to renewable resources will be to replicate the success experienced in New Zealand. IDG will continue to promote sensitive, carefully planned development that delivers Ìýresults to Native stakeholders, provides long-term value to end users in the from of sustainable, renewable energy; assures appropriate rates of return to investors, and ensures preservation of culturally important resources.”
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