Kaapu v. Aloha Tower Development Corp.

846 P.2d 882, 74 Haw. 365, 1993 Haw. LEXIS 16
CourtHawaii Supreme Court
DecidedFebruary 25, 1993
DocketNO. 15775
StatusPublished
Cited by29 cases

This text of 846 P.2d 882 (Kaapu v. Aloha Tower Development Corp.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kaapu v. Aloha Tower Development Corp., 846 P.2d 882, 74 Haw. 365, 1993 Haw. LEXIS 16 (haw 1993).

Opinion

*368 OPINION OF THE COURT BY

LEVINSON, J.

The plaintiff-appellant Kekoa D. Kaapu (Kaapu) appeals the circuit court’s decision and order granting summary judgment in favor of the defendants-appellees Aloha Tower Development Corporation (ATDC) and Aloha Tower Associates (ATA). We affirm.

I. BACKGROUND

In 1981, the Hawaii legislature found that the Hawaii downtown waterfront area “bounded by piers 8,9,10, and *369 11 and Nimitz Highway, including the Hale Awa Ku Moku Building and Irwin Memorial Park,” which it labeled the “Aloha Tower complex” (the complex), was “one of the most valuable properties in downtown Honolulu and that certain portions of this area should be redeveloped, renovated, or improved to better serve the economic, maritime, and recreational needs of the people of Hawaii.” HRS § 206J-1 (1985). 1

Accordingly, the legislature promulgated HRS ch. 206J, Act 236, §§ 1-3,1981 Haw. Sess. Laws 448-59, for the purpose of establishing “a new public body corporate and politic, public instrumentality, and agency of the State for the purpose of undertaking the redevelopment of the ... complex” in order “to strengthen the international economic base of the community in trade activities, to enhance the beautification of the waterfront,... to better serve modern maritime uses, and to provide for public access and use of the waterfront property.” HRS § 206J-l (Supp. 1992). “Properly developed,” the legislature declared, “the... complex will further serve as a stimulant to the commercial activities of the downtown business community and help transform the waterfront into a ‘people place.’ ” Id.

Thus was created the ATDC, which, “for administrative purposes,” was placed within the State of Hawaii Department of Planning and Economic Development. HRS § 206J-4(a) (1985). 2 The ATDC was empowered, *370 inter alia, to adopt rules pursuant to the Hawaii Administrative Procedure Act (HAPA), HRS ch. 91, in order to effectuate the goals of HRS ch. 206J, to prepare a development plan for the complex, and singly or “in partnership with qualified persons” to develop a project relating to the complex. HRS §§ 206J-5(a)(5), 206J-5(a)(7), and 206J-5(a)(9) (1985 and Supp. 1992). The ATDC was further empowered to lease all or a portion of any developed project 3 “to any qualified person” pursuant to terms conforming with an adopted development plan for the complex and consistent with such “requirements and conditions” as the ATDC established “relating to the terms of [the] lease and the qualifications of any person to draw or bid for the lease.” HRS § 206J-11 (1985). 4

*371 In accordance with HAPA and HRS § 206J-5(a), the ATDC proposed rules establishing itself as the sole authority for selecting the developer of the complex, fashioning a “request for proposal” (RFP) procedure as the mode of selection, and insuring the confidentiality of the contents of all proposals pending execution of a long-term lease between the ATDC and the selected developer. On December 1,1988, the ATDC conducted a public hearing to receive testimony regarding the proposed rules. No testimony in opposition to the proposed rules was submitted. Kaapu did not attend the hearing.

On December 22,1988, the board of directors 5 of the ATDC formally promulgated, as Chapter 15-26, Hawaii Administrative Rules (Department of Business and Economic Development), “Rules of Practice and Procedure” to govern the functioning of the ATDC. Sections 15-26-1 through 15-26-50, Hawaii Administrative rules (Department of Business and Economic Development) 6 (ATDC Rules). The ATDC Rules became effective on February 9, 1989.

ATDC Rule 15-26-1 provides that “[t]his chapter governs procedures before the [ATDC] under [HRS ch. 206J] *372 and shall be construed to effectuate the purpose of the chapter and to secure the just and efficient determination of every proceeding.”

ATDC Rule 15-26-41, relating to the ATDC’s “[ajuthority to select developers,” provides in relevant part that “the [ATDC] has sole authority to select any qualified person to be a developer-lessee.”

ATDC Rule 15-26-42, relating to the “[selection process,” provides in relevant part that the ATDC “may select qualified persons to develop a development area pursuant to a process of direct negotiation, [an RFP], a competitive bidding process, or a combination of any or all of the above. The [ATDC] shall determine the method for pursuing its objectives . . . .”

ATDC Rule 15-26-44, relating to RFPs, provides in relevant part:

Should the [ATDC]... determine to select a developer for a project through [an RFP], the process shall encompass a publicly advertised [RFP], an evaluation of submitted proposals, selection of a qualified person based upon its submitted proposals, and finally, direct negotiation for a development agreement. The selection process shall be as follows:
(5) The RFP shall require that any party interested in being a developer-lessee of the proposed development area shall submit a detailed proposal inclusive of, but not limited to, a description of the developer, its experience and its basic development team, architecturally prepared schematic drawings, proposed *373 footprints of the buildings, preliminary traffic studies and solutions prepared by certified engineers and designers, feasibility studies, anticipated benefit to the State of Hawaii, and timetable for construction .... Each candidate must submit market studies or other satisfactory evidence to support the financial feasibility of its proposal.
(6) . . . [0]nly those parties submitting responses that meet the minimum submission requirements and qualifications as set forth in § 15-26-47 below shall be considered as the potential developer-lessee of the project as described in the RFP. The contents of any proposals received shall be kept confidential and shall not be distributed in any case to other parties who are participating in the RFP process until after a long term lease and development agreement are executed.

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Bluebook (online)
846 P.2d 882, 74 Haw. 365, 1993 Haw. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaapu-v-aloha-tower-development-corp-haw-1993.