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FOR IMMEDIATE RELEASE                         December 2, 2005 Release M-106


MAYOR ANNOUNCES ASSET MANAGEMENT REVIEW FINDINGS  

 

            Mayor Mufi Hannemann today announced the Asset Management Review Team has  completed its study and made a wide range of recommendations.

            The blue-ribbon panel of 11 business leaders was established on May 31 to examine all 700 parcels of real estate owned by the City and how the City manages them.

            The review team found the City lacks a comprehensive and coherent policy or strategy to manage its assets. That has resulted in a number of more specific obstacles and situations such as Block J being “sold” several times. The team found many of the assets do not relate to the City’s core missions and divert resources from other, more essential properties.

            The review team recommended that the City develop a clear and consistent policy for asset management that takes into account City priorities and that asset management be consolidated under an asset manager.

            “We are currently reviewing the Asset Management Review Team’s full report, but we wanted to share some of those insights with the public,” said Mayor Hannemann. “We have not made any final decisions on the team’s recommendations but we believe several of them merit further discussion.”

            The team made several specific recommendations that it feels will realign the City’s asset portfolio with its priorities. They include:

·       Sell City-owned affordable rental housing properties and their associated commercial and parking areas, while ensuring that the properties are kept in affordable rentals.

·       Sell one of the three City golf courses in the Waipahu-Ewa area (West Loch, Ewa Villages and Ted Makalena).

·       Redevelop the Kaimuki parking lots.

·       Establish a public-private partnership to manage the Honolulu Zoo.

            Since the team completed its work, the City received an offer for Alii Place in Downtown Honolulu. While the offer will be reviewed, any sale of that property must take into account present and future needs of the City, including the Prosecutor’s Office, which is currently housed there.

            In order to follow up on the review team’s work, the City has issued and received responses to a request for professional services for an asset management consultant. That consultant, once selected, will help develop a coherent strategy for managing the City’s assets and will assist the City in reviewing and selling assets.

            The Asset Management Review Team was created as an outgrowth of the Mayor’s Review, a comprehensive look at City finances and operations that was completed in the opening months of the Hannemann administration.

            Jeffrey Dinsmore, former Victoria Ward Ltd. General manager and vice president of development-Hawaii Region for General Growth Properties, was chairman of the Asset Management Review Team.

 

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Contact:

              Bill Brennan, 527-6928

              Mark Matsunaga, 527-5767

 

Friday, December 02, 2005

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