Honolulu Star-Bulletin from Honolulu, Hawaii • 3

1-1 11,1 .0 ho I 1 1.1y 41,, .,,,1:: 0 0 LET 4 0 eskill1.5 His tc-To ufiltiod1 ojfiser ,1 9 i i 4 I By Gregg K. Kakesako manner in which the contracts financial and organization details money," Hata said, "let's be how 1 Star-Bulletin Writer were handled. of the campaign," Hata said. est, no one really wants that 1 I I I I He later became part of the chore The task is delegated 1 I i By Gregg K. Kakesako 4 1 Star-Bulletin Writer manner in which the contracts were handled.

ftiils Hil financial and organization details of the campaign," Hata said. He later became part of the that legated money," Hata said, "let's be how est, no one really wants that chore The task is delegated In pe donate ground, t-tor-taS les hen VAL eYH reasop) nmittee Dntribta tat the pe donate. ground, then VA 41 reason committee contribe that the I 1 i 1 1 1 .1 1 It I 1 group that involved Burns' aides Aoki and Don Horio, Burns news secretary. The group's duties included political strategy and raising campaign funds. Hata said he got to know.

Ariyoshi through the Burns' campaign organization, helping with Ariyoshi's first gubernatorial effort in 1974. At one point, Hata, along with Horio and Aoki, came to the aid of Andy Anderson, who was then trying to unseat Fasi in his bid for a second term as mayor of Honolulu. Bumper stickers from that campaign that read "Another Democrat For Anderson" can still be found in the GOP's gubernatorial headquarters this year. Aoki later moved away from the Ariyoshi camp which threw its support to Eileen Anderson in 1980 by supporting the unsuccessful mayoral candidacy of Hiram This year, Aoki has said, he will vote for Fast. ALTHOUGH Hata is credited as being the chief money man for Ariyoshi, he maintains that there is no real formal money-raising structure within Ariyoshi's cam paign organization.

Honolulu Star Bulletin A-3 I was formed to handle the data processing needs of all his other companies. "Ninety percent of its (Data House's) work is for our family of companies," Hata saki. There have been questions raised about the propriety of both Primo and Data House being located in an area which is supposed to be only occupied by food wholesalers and related busi But Hata maintains that both operations are an integral part of all his family's food wholesale, warehouse and distribution businesses. HATA, 58, SAID he entered politics in 1962 "doing almost everything" for the Burns campaign in 1962. "That included arranging cot fee hours and working on the ree flours ana working on me Republican gubernatorial challenger D.G.

'Andy" Anderson likes to draw a parallel between the late Harry C.C. Chung and Frank J. Hata two Island businessmen who raised campaign funds for political office holders. Chung was chiefly responsible for raising funds for former mayor Frank Fusi and when Chung died last year, Hata as Gov. George Ariyoshi's chief money man became the man to know, according to some in Island political circles.

In an interview yesterday, Hata said that reputation far exceeds anything he actually does. "With Harry not around" and Dan Aoki, administrative assistant and chief fund raiser for the late Gov. John A. Burns, inactive "the fall guy was me," Hata said. FOR THE PAST eight years Hata has been Ariyoshi's close friend and golfing partner and the man he depends on to raise the money he needs to run his multimillion-dollar campaigns.

Until his death last December, Chung was not only Fasi's confidante, but he also was the person chiefly responsible for raising campaign funds for Fasi during the 12 years he was mayor. Chung remained as Fasi's friend and adviser even after Fast dropped him as his chief money man following the 1976 Kukui Plaza condominium controversy where both he and Fast were indicted for bribery. The case was later dropped against Fasi and Chung after the chief prosecution witness changed his mind and refused to testify against the two men. AS WITH ALL campaign money men, Chung and Hata's names were well known only to individuals close to the Island's political scene. A Star-Bulletin profile of Chung in 1972 noted that during Fasi's first term as mayor in 1968 'Marry Chung's name has appeared in the Honolulu dailies only six times.

For a man of such political importance, he is publicly anonymous as could be." But in subsequent years all that changed. Chung's furniture company and the city contracts it received because of his association with Fast and Chung's own personal habits became a target for critics. Then there was the 1976 Kukui Plaza redevelopment project in downtown and questions on the UNTIL THIS week, Hata who also has been involved in fund-raising activities for Burns and Mayor Eileen Anderson, a Ariyoshi protegee was as anonymous as Chung first was. There are only nine news stories and column items on Hata in newspaper files, and only five refer to his campaign duties with Ariyoshi or Mayor Anderson. Hata, who was familiar with Chung's activities, said that be doesn't believe Andy Anderson's comparison holds any water because be is only involved in fundraising activities during election years.

"For Harry, it was a year-round job," Hata said. CHALLENGING Ariyoshi's campaign theme of "honesty and integrity," Anderson, the GOP's gubernatorial standard bearer, this week questioned whether Hata has been receiving special treatment from the Ariyoshi administration for waterfront properties he subleases from the state. In addition, Andy Anderson further charged that Hata, who is not a government employee, has access to a computerized state list of government Jobs and uses it when he solicits campaign funds from architects and engineers. But the GOP candidate, who said he was careful not to say that Hata has done anything illegal, has declined to provide any specifics. Hata branded the accusation "an absolute lie." "I like him (Anderson) to come out and mention names either privately or publicly," Hata said.

"I'm willing to sit down with him, with or without 'witnesses present "EVERYWHERE he (Anderson) goes, he's going to make that speech. I don't think it's fair. Since he is accusing me of something, he should be able to prove It," Hata said. There was no immediate response from Anderson who was on the Neighbor Islands yesterday. The GOP's Anderson insists that Hata's relationship with Ariyoshi is something that "appears to be a prime example of political corruption within our state government." "Unfortunately, the Frank Hata scandal may be Just the tip of the iceberg when it comes to crime and corruption within the II UC t- Ittibing IF LA a 4, 1 .....777 'P 0 t.

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6 0. "When it comes to raising truth." I Thursdays September 30, 1982 Arlyoshi Hata yesterday emphasized several times that he has never asked Ariyoshi a favor and that the governor is probably unaware of his business activities. "Truthfully, I have never asked' the governor for anything," Hata said. MUCH OF THE recent controversy about Hata stems from the leases his family's corporation holds with the state but in every instance Hata denies that his ties with Ariyoshi have allowed him preferential treatment. Hata said his father, Yoichi, started off as a Rio grocery store operator in 1923.

Y. Hata opened a Honolulu branch in Iwilei 10 years later and that operation soon grew into a grocery and liquor wholesale company and several other subsidiaries. Hata said he joined his father in the grocery wholesale opera. tions after graduating from the University of Hawaii in 1950 with a degree in business administration. Under the Y.

Hata corporate umbrella, Frank Hata, his six brothers and a sister opened three other businesses Primo Distributing Y-N Trucking and Diversified Distributors, Hata said. Primo Distributing Co. a liquor and papaya distributing company is subleasing its Kewalo Basin headquarters from Produce Center Development which holds the master lease from the state Department of Land and Natural Resources, Hata said. BUT HATA maintains that he has followed all the terms of his sublease agreement and is paying the same rate as the other tenants in the area. Also located on the same property is Data House Inc.

a data processing firm which has handled the computer services for Ariyoshi's and Mayor Anderson's campaigns. But again Hata, a part-owner in Data House, said the company Split on lion development premium the developer has agreed to pay upon sale of the 432 units and the $124,320 annual lease rent for the first 30 years. Home Properties vice president Ian Macdonald and city Housing Director Joseph Conant told the committee that the features of the option and development agreements are part of a "total package." "When you consider the cost of 247 parking stalls, plus the $10,000 development option premium, which may be a little low for obvious reasons, plus the rental package during the construction period, the value of this package is significantly over $7 million," Macdonald said. "Based on the area of that land, which is a little over 100,000 square feet, the city is getting a heck of a good deal and I would urge you to approve the exclusive option to lease and let's get on with it," he told the committee. DEMOCRATIC FAMILY AFFAIRThe Democratic team of Gov.

George Ariyoshi and governor hopeful John Waihee are joined by their families and Mayor Eileen Anderson at Democratic Party unity rally last night at McKinley High School. Star-Bulletin Photo by Deferring Peddling to those who knows the most pie in a certain area. "There is no quota system I just ask people to whatever they can Hata said, "One of our rules is that there is no tit-for-taS in our fund-raising activities If anyone has that idea, will just refund their money." Hata said that was the the Ariyoshi campaign this year returned 1978 tions after it learned money was from two firms which were involved in a housing kickback scheme. 3 HATA SAID that two years agt he was asked to help sell funcli raising tickets for Mayor Ander; son who was receiving help fmnli Ariyoshi supporters in her bid It; prevent Fasi from obtaining 41 4 fourth term. In her successful race? Ha said Fasi supporters claimed he alone raised "half a dollars for Eileen Anderson." "I had to laugh when I heard on the radio that I was-respon58 hie for raising so muchwmoneyi it was so wrong," Hata But when asked how much hif has raised, Hata said: "I just know and that's the, god'? 1 i 1 ..1:, 4.1 his son for "profuse, chartreuse" nasal discharges.

A television documentary crew he accompanied to the state-run wellsite in July was nauseated by 1 fumes wafting through the 1 tors' center parking area, as was he, the doctor said. Cress-examined by Justice De: partment attorney Susan representing the Department op Energy, Williams disputed the workplacOf safety level established by the Oe-11 cupational Safety and Health; Administration. Williams said the charactertista "rotten eggs" odor of hydrogetil sulfide is normally experienced at! 5 to 10 ppb, and that data pub-; lished by the energy department' itself indicates a 100 ppb danger level for the gas. The board will hold its regular meeting at 9 am. Friday in tht state officebuilding in Ihlo.

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..4 41. l'fri .1 --r '04 irt'7. 1, rf. ji-, 7 del Si'4 14 oaf :J.i'f;.1'e,'7 Hiram Fong t. :::01 i "4 t.r i 1,., :....4 :7.:.

:.:1,4.4.:4,,: ..,..4 4 :.43 4,::: f. trL 4.1 .1 4 4 il kil i Nt 4 1 i (1 I '''N i I I C) I 1 1 which exemptions are allowed as a tax incentive to property owners who make alternate energy improvements. Granted four shoreline management permits, including a city application to begin work on a fire training center in the Salt Lake-Moanalua area and two applications from the state for site work on a Kapiolani Community College campus at Fort Ruger and a state park at Rainbow Bay, Alea. Approved two mayoral appointments, confirming Anderson's selection of Eric Chock as a member of the Commission on Culture and the Arts and Roy H. Sako as a member of the Building Board of Appeals.

Moved six development plan bills and two interim development control ordinance extensions a step closer to final approval, by passing them on the first of three required readings. 4 By Stu Glauberman 1 4 Star-Bulletin Writer Two City Council members who are seeking the same Council seat on Nov. 2 disagreed yesterday on what to do with a bill that would prevent hawkers from handing out advertising leaflets on busy Waikiki streets. Council members Marilyn Bornhorst, a Democrat, and Hiram Fong a Republican, were on opposite sides of the vote yesterday when the Council decided to 'defer action on an anti-peddling bill that would prohibit the distribution of commercial handbills in the Waikiki business district by any means other than licensed dispensing racks. Fong, a resident, and Bornhorst, a Makiki resident, are battling it out for the right to represent Waikiki on next year's Council as the result of a reapportionment plan that threw them together in the 5th District (Manoa-Waikiki-Makiki).

Fong made the motion to defer final action until after the Council conducts another hearing on the bill, which was amended earlier yesterday by a unanimous vote. He said that Waikiki business people told him that "changes that were made would eliminate some of the jobs that exist presently in Waikiki and they wanted some time to address this." "In the interest of fairness, I think we should grant this," Fong said. Bornhorst cast the only "no" vote, arguing that the Finance Committee had discussed the bill at length and worked with a city attorney to make it "constitutional and fair." 1 i Geothermal Foes Say It's Sickening. "You can't just look at the lease rent," said Conant, who argued that the total benefit to the city comes to about MO per square foot. "That's much more than the land is worth," he said.

Fong's lighthearted suggestion that Bornhorst and Loo be appointed a committee of two to renegotiate the contract with the developer was not accepted. IN OTHER ACTION yesterday, the Council granted zoning exemptions and subdivision requirement waivers so the city can begin redeveloping Fernandez Village as part of its Ewa Villages housing project, a revitalization program involving eight plantation villages on 243 acres. The Council was unanimous earlier in the day when it: Passed two bills amending the real property tax laws to exempt historic residential properties from property taxes and to extend the time period during geothermal we have experienced mucus congestion and headaches." "You catch yourself wondering if you left a dirty diaper lying around, and then you say 'no, that's the geothermal again," Pommerenk added. In testimony yesterday, a Hilo physician said his fears about the effects of geothermal emissions on public health are based on dealings with "a significant percentage" of people living in the Puna area. Family practitioner Richard Williams, a witness for Puna Speaks, said he is professionally familiar with some 30 of Puna's 300 to 500 residents.

"They have symptoms related Land Board The state Board of Land and Natural Resources will meet Tuesday through Thursday in Hilo to bear witnesses and receive evidence regarding a controversial geothermal energy development on the Big Island. Campbell Estate is seeking a conservation district use permit for the project on a parcel next to the Hawaii Volcanoes National Park. The Volcano Community Association and six individual members filed suit Tuesday in Hilo seeking to prevent the land board from granting the permit and also seeking to have the environmental impact statement prepared for the project developers, Geothermal Ventureleclared null and void. I 1 Marilyn Bornhorst goods or services for sale or rent on public streets and sidewalks in the Waikiki business district unless licensed to do so. Those who wish to conduct promotional activities in the area would be required to obtain per- mits to install and maintain dispensing racks at locations ap- proved by city agencies.

MEETING AS a Committee of the Whole, the Council also deferred final action on a resolution that would have authorized the city administration to proceed with an agreement giving Home Properties Inc. an exclusive option to lease Block the city-owned parking lot at Beretania Street and Pali Highway. The committee went along with a motion made by Bornhorst, agreeing to send the paper work back to the city Department of Housing and Community Development for clarification of the op- tion and development agreements and renegotiation of the lease rent provisions. Bornhorst said the city is not getting the best return possible from the proposed option and master-lease agreements with Home Properties the developer selected earlier this year by Mayor Eileen Anderson. She said the average monthly lease agreement in the 35-story Pali Park condominium as pro- Home Properties would per apartment much less than the average monthly lease rent of $46 per apartment at other downtown condominiums.

Bornhorst proposed three compromises aimed at increasing the amount of money the city would earn from the project for use in developing low-income housing projects at other locations. THE COMPROMISES, intended to keep the Pali Park project at "below-market" prices and also increase the city's income, involve adjustments to the $5 mil to geothermal Williams testified. At his office, Williams said, he has listened to geothermal-related health complaints not only from residents, but from Hawaii Electric Light Co. workers receiving routine annual physicals. "They had no symptoms until.

they went to the job site," the doctor said of the Helco employees he examined. The effects of overexposure to geothermal emissions hydrogen sulfide, sulfur dioxide and other gases include eye irritation, upper respiratory problems, headaches and nausea, Williams testified. In one instance this year, Williams said, he treated a man and 1, By Christopher Long Star-Bulletin Writer Life in the neighborhood of the Big Island's geothermal power plant has been a headache and worse, Puna area residents testified today. Heather Hedenschau and Katherine Pommerenk, both members of the anti-geothermal group Puna Speaks, agreed that geothermal emissions from wells near their homes have sickened them and their children. Hedenschau said she was forced to move out of her Lei lani Estates home to Hilo earlier this year because her infant son's health was declining.

"He was doing fine until October 1981 and then I started realizing he would get this congestion whenever we smelled geothermal," she testified before U.S. Judge Harold Fong. Her home, she said, was located downwind from the well site in the path of the prevailing trade-winds. FONG IS WEIGHING the group's claim for a preliminary court order that would stop emissions, and, in effect, shut down the project. When Kona winds blow, Pommerenk testified, "geothermal is right in our back yard" at Pahoa, one-quarter mile northeast of the well that was developed by the state.

It's Just too coincidental to be a coincidence," she said. "Too many eisys when I have smelled 1 Sets Geothermal Hearings lt I "THE CHANGES that were made from the last draft were not very large changes and would recommend that we move it Out," she said. Her request to have a city attorney explain the changes was denied by Council Chairman Rudy Pacarro, who said be liked the idea of conducting another public hearing. The Council voted 7-1 to defer action and scheduled the hearing for Oct. 13.

Councilman Frank Loo, who was late, did not vote on the question. The deferral came after months of work on the measure, which Lis drawn sharp criticism from Waikiki businesses that rely on handbill distributors to promote their products and services. During a recess, Deputy City Corporation Counsel Susan T. Sato told reporters that the only amendments to the bill were language changes intended to ex-- elude non-commercial leaflets such as campaign brochures from the proposed restrictions. The purpose of the bill is to prthibit persons irrom offering The land board adopted rules witnesses and conduct cross In August to govern a contested examination, said state land plan- a case hearing on the issue its ner Roger Evans.

I first such formal proceeding. Campbell Estate expects to 1 Sessions will be held in thehave 23 expert witnesses. 1 state office building Tuesday and The basic question Is w'hethe'et I Wednesday from 9 a.m. to 5 p.m. the estate should be granted a and from 6:33 p.m.

to 930 p.m. permit for the geothermal powert 1 On Thursday, the hearing will be development. The board is requirv from 9 a.m. to 5 p.m. in the ed to reach a decision by the emir County Council chambers.

of November after staff review of the testimony. THOSE SIGNED up to testify Include representatives of Camp- The land board's approval is ro, bell Estate, the Office of Hawai. quired for the geothermal project I Ian Affairs, Hawaii county gov- because it administers use of ermnent, one individual appear- conservation district lands, in- 1 ing on his own behalf and a num- ducting those that are privately. her of residents and organizations owned. be- of residents and organizations owned: 1 represented by attorneys Kenneth Kupchak and Wendell log.

They will be alwed to call in expert.