Why is a closing Navy commissary being given away to a private company?

The Honolulu Advertiser reports that the Barbers Point Commissary is closing and that the property will be turned over to the private Ford Island Ventures.  How does a private business get excess public assets?   And who is Ford Island Ventures?

Ford Island Ventures is a joint venture of Hunt Building Co. and Fluor Federal Services LLC. Special legislation in 1999 created a special arrangement in Hawai’i whereby excess Navy properties could be leased or transferred in fee to private entities in exchange for in-kind construction and infrastructure repairs on Ford Island.  This circumvented the usual process for transferring excess military lands.    The Navy gave the developers a 65 year lease of Iroquois Point/Puʻuloa (384 acres), a 34 acre parcel on Ford Island, and the 6.6 acre Hālawa Landing—all underutilized Navy properties. The developers also were allowed to purchase 695 acres of housing at Kalaeloa after three years and given outright ownership of the 515 acre former Waikele Naval Magazine.

The Hawaii Reporter posted a story that contained more information:

NAS Barbers Point closed in July 1999 as a result of the 1993 Base Realignment and Closure (BRAC) legislation. The Navy retained portions of the former base after its closure, including the area containing the commissary. The FY07 National Defense Authorization Act (NDAA) required the Navy to enter into a binding agreement to convey, by sale, lease or combination thereof, any public or private person or entity outside DoD a large part of those portions including the area containing the commissary by Sep. 30, 2008. In Feb. 2009, the Navy entered into a lease with FIV to fulfill the FY 07 NDAA requirement.

It seems that the transfer of land to the private entity was a special provision inserted into the Defense Authorization Act, a giveaway of public assets to private corporations.   Ford Island Ventures it seems has friends in high places.  Environmental watchdog Carroll Cox posted information on his website about Ford Island Ventures conducting illegal business activities in the former nuclear storage bunkers in Waikele gulch.   According to Cox’s investigation, Mayor Hanneman’s administration is allowing the illegal operations to continue despite formal complaints.

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http://www.honoluluadvertiser.com/article/20100417/BREAKING01/304170013/Navy+to+close+Barbers+Point+Commissary+on+April+30

Updated at 7:59 a.m., Saturday, April 17, 2010

Navy to close Barbers Point Commissary on April 30

Advertiser Staff

The Navy said Friday that it plans to close the Barbers Point Commissary on April 30.

The building and property will be turned over to Ford Island Ventures on June 1.

A news release said that while the store continues to serve a number of customers, “the Navy has not had an operational presence in the area since (Naval Air Station Barbers Point) closed in 1999, and there is no longer Navy family housing in the area.”

The 20,000-square-foot store employed 41 people, all of whom have been extended job opportunities with the Defense Commissary Agency, the Navy said.

DeCA operates four other commissaries on Oahu — one at Schofield Barracks, two at Joint Base Pearl Harbor-Hickam and one at Marine Corps Base Hawaii.

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http://www.hawaiireporter.com/storyPrint.aspx?cb338aa9-dab6-4167-8059-4c9d1f8eb9dc

Barbers Point Commissary to Close for Business on April 30

By Agnes Tauyan, 4/16/2010 12:12:41 PM

PEARL HARBOR – The Defense Commissary Agency (DeCA) is planning to close the Barbers Point Commissary store on April 30 and turn over possession of the building and property to Ford Island Ventures (FIV) on June 1.

The 20,000 square foot store has 41 employees and is located on part of the 499 acres of land parcels at Kalaeloa that was conveyed by the Navy in February, 2009, to FIV. All 41 employees were extended opportunities for continued employment with DECA.

“The Barbers Point Commissary has served the Navy well for many years,” said Rear Adm. Dixon R. Smith, Commander, Navy Region Hawaii. “Although it continues to serve a number of authorized customers, the Navy has not had an operational presence in the area since the base closed in 1999, and there is no longer Navy family housing in the area.”

DeCA operates four other commissaries on Oahu: one at Schofield Barracks, two at Joint Base Pearl Harbor-Hickam and one at Marine Corps Base Hawaii.

The Navy Exchange will continue to operate the Touch ‘N Go Mini-Mart Gas Station through next year. The Subway Sandwich Shop and the child care center, now operating as Kama’aina Kids and serving military and civilian families in West Oahu, are operating under an agreement with FIV. The athletic fields are also open to the public, and the bowling center re-opened to the public earlier this year.

The Barbers Point Golf Course, the picnic area and cottages at White Plains and Nimitz Beaches continue to be operated by the Navy’s Morale, Welfare and Recreation (MWR) department. These facilities were not affected by BRAC and are not part of the 499 acres of land parcels conveyed to FIV.

NAS Barbers Point closed in July 1999 as a result of the 1993 Base Realignment and Closure (BRAC) legislation. The Navy retained portions of the former base after its closure, including the area containing the commissary. The FY07 National Defense Authorization Act (NDAA) required the Navy to enter into a binding agreement to convey, by sale, lease or combination thereof, any public or private person or entity outside DoD a large part of those portions including the area containing the commissary by Sep. 30, 2008. In Feb. 2009, the Navy entered into a lease with FIV to fulfill the FY 07 NDAA requirement.

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http://www.carrollcox.com/WaikeleStorage.htm

Mayor Mufi Hannemann Denies Public’s Right to Recreational Areas

For the past three or four years the Hannemann Administration has known about illegal businesses being conducted by a group called Ford Island Ventures, located in a P-2 preservation zone known as the ”Caves at Waikele.” At the same time, the Department of Planning and Permitting (DPP) has been struggling with Hannemann’s desire to keep the illegal activities going.

The site, known as “the caves” is a former military munitions storage area. For zoning purposes, it was originally classified as military F-1, but, after it was abandoned by the military and no longer used for munitions storage, it was automatically rezoned or reclassified as a P-2 general preservation district.

Although the DPP has no zoning authority over F-1 military, the DPP does administer the zoning code in P-2 districts.   Land Use Ordinance Section 21-3.40  states that the purpose of the preservation districts is to preserve major open spaces and recreational lands.  The purpose of F-1 military zoning is to identify military areas and permit all military activities.   Section 21-3.40 clearly states “should land be removed from either the state designated conservation district or from federal jurisdiction, all uses, structures and development standards shall be as specified for the P-2 general preservation district”.    Therefore, the land is zoned P-2 and that was confirmed by the DPP in their January 7, 2008, letter to the agent representing the business, Ford Island Ventures.

Furthermore, the DPP produced a zoning report dated October 1, 2008, which states that “self storage rental use is not permitted in the P-2 district and is a violation of the zoning code”.  Furthermore, DPP Planner Raymond Young placed an advisory on the property on September 11, 2008, saying that “industrial activity is unauthorized”.

The DPP’s January 7, 2008, letter also states that the Central Oahu Sustainable Community Plan designates Waikele Gulch as part of the Central Oahu Open Space Network and is to be preserved for its scenic resources and recreational values. The plan is for a ravine recreational network, featuring trails and passive open spaces. The DPP stated “the operation of a commercial storage facility within the subject parcel is inconsistent with the Sustainable Community Plan”.

For more than a year I have complained to the Hannemann Administration that legal actions should be taken to shut down the facility and open up the area for public enjoyment, as required. Instead, Hannemann’s administration has ignored my complaints and my queries into this illegal activity, and has ignored its own Department of Planning and Permitting which has already determined that my complaint is valid and the property is in violation of zoning laws. Instead of doing what is legally required, Hannemann is now employing other delaying tactics, such as claiming that I gave them the wrong tax map key numbers or the advisory by the planner was not relevant.

Since receiving my complaint they have asked the Corporation Counsel to determine if DPP has any jurisdiction over the Waikele Caves Storage and its industrial uses, in the Central Oahu Open Space Network and the Sustainable Community Plan,  or zoning authority over P-2 preservation zoned property.  As if these excuses weren’t lame enough, Mr. Alex Sugai, Building Inspector Supervisor, offered more lame excuses in response to my compliant.  He told me that the numerous letters written by the former DPP Director, Henry Eng, and his staff, did not matter.  He said it is now being handled by David Tanoue, the current Director of DPP, and only what he says matters.   Mr. Sugai was instructed to tell me to contact Mr. Tanoue if I didn’t like his answer or response.  Hopefully, Hannemann will do the right thing, and open the area to the public so they can enjoy and appreciate this beautiful canyon.

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