The Honolulu Star-Advertiser ran a featured story on Thursday, October 31, concering the controversial proposal by the administration of Honolulu Mayor Kirk Caldwell to enter into a private-public partnership to finance and operate a deluxe children’s playground in a section of Ala Moana Park.
The newspaper ran a teaser on the front page of its print edition: “Nonprofit partner says Ala Moana is ideal site for playground project.”
The story itself ran on Page B1, the front of the Local/Business section, with a different headline: “Nonprofit partner says playground relocation not viable.”
Both spins were based on comments by Tiffany Vara, described in the story as “director of the nonprofit Pa’ani Kakou, which has agreed to partner with the city to build Oahu’s first inclusive children’s playground.”
The story doesn’t say much more about this nonprofit group, the interests it represents, nor the nature and extent of its influence with Mayor Caldwell and his administration. It’s a significant part of the underlying story, but the Star-Advertiser sidestepped it.
However, critics of the project have essentially accused the group of being a front for the developers of the ultra-luxury Park Lane condominium project across the street at Ala Moana Center, where some units are priced in the tens of millions. Mayor Caldwell has also drawn criticism for his determination to take a significant amount of open space in Ala Moana Park and, in their view, treat it as an amenity to be put under the control of the owners of units in Park Lane.
I decided to “follow the money.” It usually leads to interesting findings.
The nonprofit “Pa’ani Kakou” was only recently recognized by the IRS. It lists four directors in its registration filed with the state’s Department of Commerce and Consumer Affairs–Tiffana Vara, Alana Kobayashi Pakkala, Ian MacNaughton, and Crystal Rose–all directly tied to Park Lane and its developers.
As veteran reporter Denby Fawcett wrote in a recent Civil Beat column: “The mayor’s earlier description of them as “a group of mothers” doesn’t seem to fit.”
It’s fair to say that if money buys political clout, then the board of Pa’ani Kakou and the developers of Park Lane undoubtedly have a lot of it. Perhaps that’s why the mayor is so firmly behind the group in this controversy.
The developer, AMX Partners, LLC., was formed by the MacNaughton Group, Kobayashi Group, Blacksand Capital, and the owners of Ala Moana Center, General Growth Properties, now known as GGP Inc. GGP was taken over by Brookfield Property Partners LP, a former minority owner of the company, in a 2018 deal valued at nearly $15 billion.
Tiffany Vara has been spokesperson for Pa’ani Kakou. Vara identified herself in written testimony submitted to the Honolulu City Council in April 2017 “as mother of five children, the youngest of whom acquired profound special needs after a brain injury at the age of two.” Her husband, Ray Vara, is CEO of Hawaii Pacific Health, and they live in a unit at Park Lane now assessed for tax purposes at $3.7 million. Ray Vara is vice-president of the Association of Apartment Owners of Park Lane.
Ray Vara contributed $25,500 to state and local candidates between the beginning of 2012 and June 30, 2019, according to data published by the Campaign Spending Commission. That total included $5,500 contributed to Kirk Caldwell’s mayoral campaign.
Alana Kobayashi Pakkala, is now chief operating officer of the Kobayashi Group, one of the primary corporate members of AMX Partners. The Kobayashi Group was founded by her father, and is now controlled by Pakkala and her two brothers.
For several years, Pakkala has been named by Mayor Caldwell and the city council to serve as chair of the selection committee which doles out the city’s community development block grants, city records show.
Pakkala’s husband, Donald Matthew Pakkala, is listed in campaign spending records as director of sales for Park Lane, and is a licensed real estate salesperson with Heyer & Associates, which is listed as sales agent for Park Lane.
The couple contributed a total of $47,000 of their own money to state and local candidates between 2012 and mid-2019, according to Campaign Spending Commission data.
Their total included $6,000 to Mayor Caldwell, along with $5,250 to Honolulu City Council member Kymberly Pine (now a candidate for mayor), $4,500 to former council member Trevor Ozawa, and $2,000 each to council members Ernie Martin and Ron Menor.
Other officers and employees of Heyer & Associates, the real estate firm, contributed $20,200 to candidates during the same 2012-2019 period, including $9,000 going to Caldwell’s campaign and another $4,000 to Councilmember Kymberly Pine.
And other officers and employees of Pakkala’s company, Kobayashi Group, pumped even more cash into the political system. They contributed a total of $410,575 to candidates in the 2012-2019 period, including a whopping $53,000 to Mayor Caldwell.
They were equally generous with their contributions to members of the city council, including Trevor Ozawa ($27,500), Ikaika Anderson ($20,900), Kymberly Pine ($19,250), Ernie Martin (13,500), and Ron Menor ($9,000), with several other members receiving smaller amounts.
Ian MacNaughton is a director of MacNaughton Group, and a managing partner in Blacksand Capital, LLC., with Pakkala’s brother, BJ Kobayashi.
The two companies, MacNaughton Group and Blacksand Capital, along with their officers and employees, contributed a total of $231,800 to candidates during the 2012-2019 period, according to Campaign Spending Commission records.
Mayor Caldwell’s campaign received $35,800, more than any other candidate. A majority of Honolulu City Council members also received multiple contributions, including Kymberly Pine ($26,750), Trevor Ozawa ($26,600), Ikaika Anderson ($14,100), Ernie Martin ($13,000), Tommy Waters ($9,500), Ann Kobayashi ($5,000) and Ron Menor ($5,000).
And Crystal Rose is an attorney and partner in the firm of Bays Lung Rose & Holma, which is disclosed in the legally-required Developers Public Report to have served as the attorney for the Park Lane developers.
Rose contributed $4,000 to Caldwell’s 2016 reelection campaign, while other employees at Bays Lung Rose & Holma added another $10,600. In total, the law firm contributed $49,950 to state and local candidates during the 2012-2019 period, Campaign Spending Commission records show.
By my count, the campaign contributions to Mayor Caldwell linked to the directors of the nonprofit Pa’ani Kakou came to a total of $123,900 during the 2012-2019 period, and their broader political influence (the implied “what we could do for you in the future if we really tried”) was much greater. Far from simply “a group of mothers.” Certainly the mayor was well aware of that fact.
I suppose, based on following the money, we can understand Mayor Caldwell’s commitment to this project in this particular location, despite objections from the larger community of park users.
While creating a playground that is accessible to special needs children may be a desirable goal, it doesn’t follow that a group with clear special interests should be able to specify its location and design, especially when its proposed location appears to result in direct benefits to their luxury condominium development across the street and would be a loss of needed open space accessible to the public. It might be described as a classic conflict of interest, in which case the proposed playground deserves all the scrutiny it is getting.
See:
“Denby Fawcett: Ala Moana Not The Best Place For A ‘World-Class’ Playground,” Civil Beat, June 25, 2019
“Ala Moana Playground Opponents: ‘We’re Being Steamrolled’“, Civil Beat, July 23, 2019.
“Denby Fawcett: Ala Moana Playground Backers Are Not Just ‘A Group Of Mothers’,” Civil Beat, October 15, 2019.
“Support for an inclusive playground is there. But where should it be built?” Rick Daysog, Hawaii News Now, October 26, 2019.
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Great piece, Ian. It reminds me of the sort of thing you and Jim Dooley used to do at the old Star-Bulletin and Advertiser back in the day, along with occasional pieces by Matt Levi and others on TV news. Without this kind of work in the city’s “major media” these days, people like the Mayor think they can get away with almost anything…and when their term in one office is up, just run for another position, knowing that corporate and private fat cats will grease their palms in return for favors. And, of course, they’re right–they do get away with it.
Excellent reporting. This makes perfect sense and I hope that Ala Moana is not used for this purpose.
A great piece of work Ian. And another embarrassing example of how the local Star Advertiser comes up way short on reporting so many stories of vital concern to the community.
Wow. Thank you for laying this out, Ian. I knew they had donated a lot but didn’t realize how much. There appears to be another problem here. Individuals related to charitable nonprofit organizations are not allowed to personally benefit from the organization. Of course, since Paani Kakou only filed a 1023-EZ instead of the 1023 when they applied for exempt status, the IRS couldn’t fairly evaluate their plans and activities.
Paani Kakou has provided false information to the Ala Moana Neighborhood Board (November 2018), the state AG’s office (May 31, 2019) and the IRS (July 2019). The city should disassociate itself from this entity.
BTW, if you check the AG’s office for PK’s registration statement, you’ll note it is dated in September. I have a copy of the original registration that was filed in May. Interestingly, several days after I updated my complaint with the AG’s office, the (mostly) correct information was filed online. (They listed their legal name incorrectly in the updated statement.)
Here’s something we’ve been hearing plenty of lately: Quid Pro Quo. Yeah it’s a regular in politics but with this current HNL mayor it sure seems to be the overriding factor in most of what he does.
I’m gonna bet Oahu had many “inclusive playgrounds” (and by that I mean our beautiful parks) way before this self serving property value enhancer was decided. Except it was up to parents and family members to help their special needs kids out of the car and onto the field to participate in activities that gave them some feeling of normalcy. I don’t see how “zip lines”, concessions stands and whatever else, enhances much more over the beauty of nature and family bonding?
EVERYTHING associated with Caldwell is filthy and over-the-top with ulterior motives.
He owes, he owes, so it’s off to payback he goes.
The fact is that accessible children’s playgrounds are non-existant in the Waikiki/Ala Moana area.
So class envy aside, whats the big deal?
“Following the money”, is a commendable piece of investigative journalism that means squat. Unless your suggesting some sort of quid pro quo. In which case may I suggest starting “impeachment inquiry” proceedings immediately against Caldwell the scoundrel, hold secretive hearings and leak select damaging testimony there by destroying his chances for attaining higher office. Because obviously being at the helm of the Oahu’s biggest public corruption scandals since the Merry Monarch was shaking down drug dealers, isn’t enough. But I digress.
In spite of my personal dislike of the current mayor, I do not begrudge mothers and their children who’s lanais have more square feet than my apartment wanting to have a place for their kids to play. Ala Moana park is the perfect place and a public/private partnership to fund it is an ideal way to save taxpayers some of their hard earned money.
Bill – if you research on public-private partnerships, in other parts of the country, they are not cheaper and attendantly take away any citizen rights for transparency. When and if entity turns back over to gvmnt the upkeep becomes the taxpayers’ dime. (Best to keep an eye on Blaisdell and rail Mayor trying to sell PP3 as a panacea.)
From what I read elsewhere Vara’s handicapped child might no longer living, as just a point of possible correction to article.
This is a wonderful example of valuable investigative reporting. Agreed, reminds only e of Reporter Jim Dooley who think wasn’t supported when newspaper news relied more and more nat’l feed.
I think you mean Pine for Mayor, not Governor. Also please view the video from the October ala-Moana neighborhood board which will be posted in about two weeks. Lots of community input along with an appearance by Ms. Vera.
Supposed non-profits are the new road to wealth and riches by collection of fees and charges for natural resources.
The blatant abuse and political cronyism is Supposed non-profits is beyond I’ll repute. In Kailua a group of several non-profits all controlled by the same officers now granted exclusive Control of historic sites and tour rights access to Kawainui State Parks by State BLNR. Ironically the Hawaiian Civic Clubs are being used to portray proprietary interest of individuals falsely claiming genealogical rights despite failing documentation.
The Kaneohe & Koolau Poko Civic groups are supporting huge expansion of Hawaiian Memorial Park, of which another 14 acre Heiau site subject to collection of public school students fees that at Kawainui range between between $10 & $20 per child…Auwe! $75 for tourists, Antiquities become generationally possessed attractions…
Good work Ian!!
Who’s going to maintain this playground?
Our city and county do a horrible job of maintaining our parks and bathrooms.
A year ago, I drove from Portland to Ashland, Oregon and stopped in many rest stops along I-5. I was amazed at how clean each and every one was. I cringe every time I have to stop at any of our park restrooms. My mom is 89 years old and we stop alot.
Caldwell has demonstrated such a fundamental lack of candor and basic honesty regarding this situation that his credibility is now nil — as should be his chance of becoming our governor.
A group of mothers indeed.
It would be great if one or more of the key players supporting the playground replied to Ian’s article, addressing his points one by one. The article piqued my interest, but I’d like to hear other perspectives.
Great investigative work. The system is broken. This is classic corruption. The Ethics Commission needs to investigate Pa’ani Kakou. Its so sad and disheartening. Instead of sound policies and vision that serve the public, developers take over the democratic process by contributing thousands of dollars to the Mayor and Council.
Several years ago a similar complaint was brought before the Honolulu Ethics Commission. It was regarding Hoopili and all of the political donations related to it. If I recall correctly, the Commission found no laws were broken.
The law was definitely broken with respect to the AG’s office, however, and that’s were some follow up needs to be done.
Thank you Ian. A little transparency goes a long way.
Yeah….good job Ian. Just maybe the SA didn’t dive into the “follow the money” trail because the newspaper doesn’t report on perfectly legal political donations made by people who can? I’m shocked that you draw a conclusion that there just might be a reason ANYONE makes large LEGAL donations to a political candidate. Wow. That’s sharp indeed. BTW, General Growth sold the mall to a Canadien company a year or so ago. Also, if the read the story you refer to in the SA you would have noted Vara was once a mother of a disabled child. The child passed many years ago. It’s laughable you and your conspiracy followers think somehow a special needs park “across the street” as you call it from condos valued in the millions and even 10’s of millions would somehow be done to only enhance the value of the Park Lane owners….oh sure. Always looking for more equity…ha. Like anyone living there needs that…also you try crossing a major thoroughfare like Ala Moana Blvd pushing a disabled child…I would imagine not an easy task. Maybe just maybe there’s nothing to see here…