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Community meeting takes the first step for eminent domain.

Residents showed overwhelming support for exercising eminent domain against Molokai Ranch, the island’s largest landowner for more than a century.

By Zalina Alvi

The time may have arrived for the people of Molokai to take back the `aina that Molokai Ranch has controlled for more than a century.

Community leaders and activists gathered about 300 people in the Mitchell Pauole Center last Wednesday to gather support for what could be the first step in the long process of acquiring the 40 percent of the island currently owned by the Ranch.

The move comes only days before 1,200 residents on the West End find out if Molokai Ranch will terminate water and wastewater services at the end of August. The decision will follow an unprecedented increase in rates handed down by the Public Utilities Commission (PUC) that will go into effect on Sept. 1 for at least six months, and an order by the state Department of Health to continue utility services for at least another 90 days.

In the meantime, the words on the lips of many Molokai residents are “eminent domain.”

What is Eminent Domain?

The term refers to the power of state and county governments to condemn and seize private property at fair market value for the good of the public.

In the case of Molokai Ranch, community members are pushing for the county to begin the lengthy legal process on the basis of the company’s mismanagement of its landholdings and assets, according to a presentation given by homesteader Mahealani Davis.

“It’s time for Molokai to assume its own kuleana to this island,” said farmer and activist Steve Morgan.

The cost to buy the property would be determined by the courts, and would reflect the current state of the systems that are reputably in severe disrepair. Davis estimated that the price would be substantially less than the $250 million previously quoted by Ranch CEO Peter Nicholas.

If the Maui County Council decides to exercise eminent domain against the Ranch, they have the option to partner with investors to share the cost of acquiring the lands.

First Wind, an independent North American wind energy company, has offered $50 million to buy the Ranch, and has “pledged to turn the entire property over to the Molokai Community Service Council (MCSC),” according to a handout available at the meeting. The deal would include land for the company to operate a wind farm that would provide power to Oahu and Molokai, and an estimated four to five million in income to the island.

Under the ownership of the MCSC, the council would be responsible for operating the water and wastewater utilities, at least temporarily. Morgan said there are plenty of talented people on Molokai who are capable of running the systems while a long-term solution is found.

Molokai Councilmember Danny Mateo, who sat on a panel formed to answer questions during the meeting, said the possibility of pursuing eminent domain was “viable,” but stressed that it is complex, lengthy, and costly process. However, the bottom line, he said, is “does Molokai have a future?”

“This future depends on each one of you and having your voice heard. You need to be active. You can start with eminent domain,” he said.

Also on the panel were Maui County Public Information Officer Mahina Martin, Alton Arakaki, an extension agent with the county, former Molokai Planning Commission chair DeGray Vanderbilt, Morgan, and Davis.

From left to right: Alton Arakaki, Mahina Martin, Danny Mateo, Steve Morgan, Mahealani Davis, and DeGray Vanderbilt.

A Show of Support

Of the many who attended the meeting, a vast majority expressed overwhelming support for the plan by a show of hands.

Walter Ritte, homesteader and one of the night’s organizers, stressed that the community coming out and supporting eminent domain was an important first step. He said the purpose of gathering the community together was to educate and fight back.

“These state agencies do not work; they have failed us,” he said. “They have abandoned us because they have been threatened by big business, and they have put the burden on us.”

Concern was raised, however, over getting the whole county of Maui behind an issue that only affects Molokai.

In response, Martin reiterated what has become a catchphrase for the county – that if the Ranch is allowed to walk away, it will set a bad precedent for other private companies providing essential services, which is something that should be a concern for all.

To questions about who will control the Ranch lands if acquired, Davis stressed that starting eminent domain proceedings are just a way to force the Ranch to the table, and open the door to discussing options.

Residents also flocked to sign two petitions circulating that night.

While one urged the county to begin eminent domain proceedings, the second called the rate increases approved by the PUC “arbitrary and unjustified,” and petitioned the PUC to order the two water utilities to continue operating if its customers cannot pay the higher water bills, and to fine the utilities the maximum amount for any violation of the law, including non-compliance.

Vanderbilt acknowledged the difficulty facing West End residents with the significantly higher water rates. The recommendation to “pay what you can,” was given, while stressing that not paying at all will result in a termination of water service.

Next Steps

In order to initiate eminent domain proceedings, the Maui County Council will have to introduce a resolution that would require five votes to pass. Mateo said the resolution would have to be deferred to the council’s Policy Committee, which he chairs.

Molokai residents, however, are urged to become active in the process. A meeting was held at Kulana O`iwi this week Wednesday to discuss the details and questions surrounding the issues of eminent domain and the increased water rates in the West End.

Residents were able to ask questions about either of these issues, including the status of funds pledged earlier this year to the MCSC in support of purchasing the Ranch lands