HTA personnel woes put $100M Hawai‘i Convention Center project at risk

Yahoo

25-05-2025

The planned closure of the Hawai 'i Convention Center in 2026 and 2027 for $100 million worth of repairs could extend even longer, putting the state at risk of losing even more millions of dollars in group tourism bookings if a new project manager is not promptly found.
Isaac Choy, HTA vice president of finance and acting chief administrative officer, who had been managing the project, was put on unpaid leave May 9 at the direction of the state Department of the Attorney General and the Department of Human Resources amid allegations he made racist and sexist remarks on the job.
Choy, a former state tax director and lawmaker who was elected to five terms in the House of Representatives serving the Manoa district from 2008 through 2018, joined HTA in 2023. He has vehemently denied the allegations, calling them false and retaliatory.
He said in an email to the Honolulu Star-Advertiser that the Department of the Attorney General has acknowledged him as a 'whistleblower ' who was working with the department, staff, other public bodies and the Legislature to report and resolve violations or suspected violations of law, rule or regulations and contracts executed by HTA.
When queried about the attorney general's involvement or Choy's designation as a whistleblower, Toni Schwartz, spokesperson for the Department of the Attorney General, said in an email that the department 'will not make statements on the existence or status of possible pending investigations.'
Teri Orton, Hawai 'i Convention Center general manager, asked members of the HTA Budget, Finance and Convention Center Standing Committee during a meeting Wednesday to find a way to put Choy back on the project, perhaps as a contractor, since the center is well into the planning phase to repair a leaky rooftop terrace deck and address other deferred maintenance such as the center's elevators.
Orton told committee members the center already has relocated six of its largest citywide events in 2026 and 12 in 2027.
The economic loss alone from Rotary International Convention, which Honolulu had planned to host June 5-9, 2027, is estimated at more than $35 million based on estimates from Rotary's 2020 convention, which was canceled due to the COVID-19 pandemic.
'We are pressed to start and finish this construction project within that time frame. We absolutely cannot let this project run behind schedule into 2028 because it will mean we will have to relocate additional business (and ) we have put out our word on the line, ' Orton said.
'This is a sense of urgency and a plea to everyone in this committee that we find someone to spearhead this project, ' she said. 'We are so late in the game in the planning process for this project that to bring anyone in at this point other than Isaac is going to be a huge undertaking in bringing this person up to speed. We have $100 million in projects in two years.'
Caroline Anderson, HTA director of planning and interim HTA president and CEO, told the Star-Advertiser on Friday that the agency had sent the state Department of Accounting and General Services a request for proposals and the current contracts to review.
'I am meeting with them next week to get their assistance. They know how important this project is for the state, ' Anderson said.
James Kunane Tokioka, director of the state Department of Business, Economic Development and Tourism, estimated at the HTA Budget, Finance and Convention Center committee meeting Wednesday that it would cost more than $561, 000 to hire outside professional services if other state agencies cannot provide a project manager to take over Choy's duties at the center.
One reason HTA is having difficulty finding a project manager from within its staff is that the agency has multiple vacancies, and many HTA staff members including Anderson already are working multiple jobs or do not have the necessary skills to oversee a large-scale construction project.
To be sure, State Sen. Kurt Fevella (R, Ewa Beach ), HTA contractors, former HTA employees and some board members alleged in a May 4 that HTA and DBEDT failed to respond promptly to complaints about a hostile work environment, including alleged racist and sexist comments, that they claim contributed to the recent resignations of five Native Hawaiian members of HTA's leadership team.
First 90 days The convention center threat is just the latest challenge Anderson has had to steer HTA through as she embarks on a 90-day action plan to shore up the state's top tourism agency following its latest major leadership scramble.
Daniel Naho 'opi 'i, HTA's last interim president and CEO, abruptly resigned March 21 after just 18 months on the job. His resignation letter to the HTA board characterized the work environment as 'toxic ' and fraught with power struggles.
Anderson is working closely with HTA Board Chair Todd Apo, who assumed the role March 27. Apo replaced Mufi Hanne ­mann, who stayed on the HTA board but resigned as chair following blowback from a recent state financial audit.
Anderson told the HTA board during a May 1 meeting that she plans in the next 90 days to focus on stabilizing the agency's leadership and organizational structure and strengthening strategic communication. She also aims to improve the HTA board by defining roles and duties, establishing intraboard relations and board and staff relations, consolidating board committees and identifying necessary and beneficial board training.
Anderson said the plan's goals include achieving a collaborative and cohesive team that communicates and coordinates efforts and works together efficiently ; reducing overdue invoices by 100 % and identifying other outstanding contractor issues ; reviewing and updating HTA policies and procedures ; and improving board work and efficiencies.
She also set a goal by July 1 to fill several key staff leadership vacancies, including a public affairs officer, brand manager for the stewardship team and chief stewardship officer.
Anderson said she wants to prioritize effective tourism policy development by setting clear direction while empowering staff to implement its annual Strategic Tourism Management Plan, which she said is due around November along with the next round of Destination Management Action Plans, or DMAPS, the community-driven tourism management plans for each island.
It's been a challenging start. Some HTA board members already are pushing to evaluate Anderson's performance in her new role and for her to complete other employee evaluations by June.
Increased scrutiny Since 2002, the state Office of the Auditor has conducted five management and financial audits of HTA, and the latest released this month was as unfavorable as the last four.
'HTA's lack of accountability, lack of measurable results, and lack of tracking of progress have been recurring themes in past audits by the Office of the Auditor, ' the audit read. 'HTA's inability to demonstrate its effectiveness undermines its credibility with the public and policymakers, as well as its ability to effectively make data-driven decisions and allocate.'
The latest audit called HTA's destination management efforts 'not new or effective, ' and said action plans for each island were 'poorly planned and executed ' and that many of the efforts 'did not address hot spots.'
Anderson said that prior to the state audit, HTA had conducted an internal audit and since then has been 'putting more metrics, milestones, targets into not only DMAPs, but also our strategic plan as well.'
HTA entered this legislative session in a better place with a $63 million recurring budget and no threat of dissolution after years of struggles. Last year, state lawmakers tightened oversight of HTA by removing its exemption from the administrative supervision of boards and commissions, which put DBEDT in the driver's seat when it went into effect July 1.
The exemption was its last after the Legislature took away its procurement exemption in 2021, and in 2022 the agency lost its special fund status.
However, this year state lawmakers moved swiftly to pass Senate Bill 1571, which if signed by Gov. Josh Green will change HTA's governance model and tighten oversight of the agency. They were reacting to a state financial audit of HTA, which was conducted by Accuity LLP and released in late March, that determined procedural deficiencies allowed for inappropriate freebies at the Hawai 'i Convention Center.
Apo told the HTA Administrative and Audit Standing Committee on April 7 that based on input from HTA staff that he did not 'see an abuse of discretion ' and recommended putting the matter 'to bed.'
John Cole, state deputy attorney general, told the Star-Advertiser that the matter had been referred to the Department of the Attorney General, but it was determined there was not enough information to open an investigation.
The Department of the Attorney General has declined to provide status updates ; however, it has been directed by Green to review the Choy matter. It also has been asked by HTA to determine whether the agency must pay $780, 000 in interest for millions of dollars in to its largest contractor, the Hawai 'i Visitors &Convention Bureau.
On Friday, HVCB said it was still due $3.8 million in unpaid invoices, down from the more than $11 million in back payments it was owed by HTA some months ago.