Unite Here! Local 5 v. Pacrep LLC.

CourtHawaii Supreme Court
DecidedFebruary 21, 2025
DocketSCAP-22-0000601
StatusPublished

This text of Unite Here! Local 5 v. Pacrep LLC. (Unite Here! Local 5 v. Pacrep LLC.) 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
Unite Here! Local 5 v. Pacrep LLC., (haw 2025).

Opinion

** FOR PUBLICATION IN WEST’S HAWAIʻI REPORTS AND PACIFIC REPORTER **

Electronically Filed Supreme Court SCAP-XX-XXXXXXX 21-FEB-2025 07:50 AM Dkt. 13 OP

SCAP-XX-XXXXXXX

IN THE SUPREME COURT OF THE STATE OF HAWAIʻI

---o0o--- ________________________________________________________________

UNITE HERE! LOCAL 5, Plaintiff-Appellant,

vs.

PACREP LLC; CITY AND COUNTY OF HONOLULU, a municipal corporation, Defendants-Appellees. (CAAP-XX-XXXXXXX; CIV. NO. 1CC131000047) ________________________________________________________________

PACREP 2 LLC; CITY AND COUNTY OF HONOLULU, a municipal corporation, Defendants-Appellees. (CAAP-XX-XXXXXXX; CIV. NO. 1CC141000753) ________________________________________________________________

APPEALS FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CAAP-XX-XXXXXXX and CAAP-XX-XXXXXXX (consolidated); CIV. NOS. 1CC131000047 and 1CC141000753 (consolidated))

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FEBRUARY 21, 2025

RECKTENWALD, C.J., McKENNA, EDDINS, GINOZA, AND DEVENS, JJ.

OPINION OF THE COURT BY McKENNA, J.

I. Introduction

UNITE HERE! Local 5 (“Local 5”) is an organized labor union

representing approximately 10,000 hotel and restaurant employees

in the State of Hawaiʻi. PACREP LLC and PACREP 2, LLC (together,

“PACREP”)1 are developers of the condominium hotel projects at

2121 Kūhiō Avenue (“2121” or “2121 Kūhiō”) and 2139 Kūhiō Avenue

(“2139” or “2139 Kūhiō”) (together, “Projects”) in Waikīkī, now

completed and almost all units sold, known as the Ritz-Carlton

Residences, Waikīkī Beach. The City and County of Honolulu

(“City”) is a municipal corporation. Its Department of Planning

and Permitting (“DPP”) is the accepting agent for the Final

Environmental Assessments (“FEAs”) for 2121 and 2139 and is the

agency which issues findings of no significant impact (“FONSI”).

This case arises out of PACREP’s development of the

Projects. The record reflects that PACREP first identified 2121

as a possible project in March 2011. Several days before

1 PACREP 2 was not formed until December 5, 2013, after PACREP 1 and is a subsidiary of PACREP. PACREP 2 shares the same address as PACREP; both PACREP and PACREP 2 are incorporated in Delaware and list Jason Grosfeld (the manager of PACREP) as an officer. It appears Jason Grosfeld was with Martell Capitol Group LLC of Los Angeles. It also appears Irongate, a Los Angeles real estate development firm, which had developed the Trump International and the Watermark in Honolulu, was also involved. This opinion treats all of these and other relevant entities as “PACREP.”

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submitting an offer to purchase that lot in August 2011, PACREP

learned that the adjoining 2139 Kūhiō, owned by Food Pantry,

Ltd. (“Food Pantry”), was the subject of a previous joint

development project with 2121 Kūhiō, and also began pursuing

acquisition of that parcel.

By November 2011, PACREP submitted a confidential offer to

purchase the 2139 Kūhiō lot, but hid this from its environmental

review consultant for 2121 Kūhiō.

PACREP then began the environmental review process for 2121

in April 2012. PACREP and DPP went back and forth on the

sufficiency of its draft environmental assessment (“DEA”).

PACREP’s October 5, 2012 building plan later submitted with its

Waikīkī Special District (“WSD”) building permits showed the

podium jutting nearly eight feet into the 2139 lot. DPP finally

accepted the FEA for 2121 and issued a FONSI on November 26,

2012. The 2121 environmental review process included many

references to 2139. The FEA approved for 2121 depicted the

podium jutting out of the 2121 building up to the 2139 site.

On January 7, 2013, Local 5 filed suit in the Circuit Court

of the First Circuit for the State of Hawaiʻi (“circuit court”),

challenging the FEA for 2121 under HRS chapter 343 (2010)

(Hawaiʻi Environmental Policy Act) and Hawaiʻi Administrative

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Rules (“HAR”) chapter 11-200 (eff. 1996) (repealed 2019 and

replaced by chapter 11-200.1) (collectively, “HEPA”).2

Despite various HEPA and permit documents for 2121

mentioning 2139 and treating the two parcels as one project,

PACREP did not officially acquire the 2139 Kūhiō property from

Food Pantry until March 2013. The 2139 FEA described the

Projects as being two separate but adjacent condo-hotel

buildings that share a podium for “shared resident services,

recreational amenities, vehicular access, and off-street

parking.” DPP accepted the 2139 FEA and issued a FONSI on

February 10, 2014.

On March 24, 2014, Local 5 filed a second lawsuit in the

circuit court, which challenged the 2139 FEA for the same

reasons as the 2121 FEA. This complaint, however, also alleged

2 Case number 1CC131000047. HRS Chapter 602A, which created our environmental courts, did not come into effect until July 1, 2015. Also, the FEAs at issue are governed by previous HEPA rules under HAR chapter 11-200. HAR § 11-200.1-32(b) (eff. 2019) provides in relevant part:

[c]hapter 11-200 shall continue to apply to environmental review of agency and applicant actions which began before the adoption of chapter 11-200.1[.] For EISs, if the EIS [preparation notice] was published by the office prior to the adoption of this chapter and the final EIS has not been accepted within five years from the implementation of this chapter, then the proposing agency or applicant must comply with the requirements of this chapter.

The 2121 FEA was accepted in 2012 and the 2139 Project FEA was accepted in 2014, before the adoption of HAR 11-200.1 in 2019. Hence, Chapter 11-200 applies.

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improper segmentation of the environmental review process.3 On

January 27, 2015, the cases were consolidated in the circuit

court. The parties filed various motions for summary judgment.

PACREP also obtained WSD building permits and height

variances for both 2121 and 2139.

While the lawsuits and motions were pending, the Projects

were completed and almost entirely sold off. A temporary

certificate of occupancy for 2121 was issued on January 19,

2016, and, for 2139, on July 13, 2018. The final certificates

of occupancy for both Projects were issued on April 14, 2021.

On April 13, 2022, the circuit court held a hearing on all

the pending motions.4 The circuit court ruled in favor of PACREP

on all the motions.

On October 14, 2022, Local 5 filed notices of appeal. On

October 10, 2023, the consolidated appeals were transferred to

this court.

On appeal, Local 5 challenges the circuit court’s rulings.

Local 5 contends the Projects’ FEAs are insufficient because

they failed to discuss potential use of condo-hotel units as

permanent residences.5 It also argues the FEAs are insufficient

3 Case number 1CC141000753.

4 The Honorable James H. Ashford presided.

5 In the meantime, in a separate case, Unite Here! Local 5 v. Department of Planning and Permitting, this court held that Local 5’s due process rights were violated when the DPP Director, without affirmative notice to Local 5,

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due to improper segmentation and that the cases are not moot.

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