Small Business Hawaii

Evan Dobelle struck gold when he came to Hawaii.

According to records provided by the University of Hawaii, the former treasurer of the Democratic National Committee made around $225,000 a year as president of Trinity College in Connecticut. That all changed when Dobelle negotiated his contract with the Board of Regents and the University of Hawaii Foundation in 2001 to make the jump to president of the University of Hawaii system. He negotiated a 10-year contract for more than double the salary he'd gotten previously - $442,000 a year. Add that onto his six secret side contracts for a total of $720,000 a year - in total which essentially made him a multimillionaire overnight. Dobelle gained the distinction of being not only the highest paid University president in Hawaii history, and the highest paid public employee in the state, but one of the highest paid college presidents in the nation. It seemed the former regents (no longer on the board), including then Regent Chair and First Hawaiian Bank Vice President Lily Yao, opened the state coffers to Dobelle without question.

The former regents showered him with a plethora of benefits, including generous retirement package, a hefty life insurance plan, and a protocol fund of $150,000 (raised to $200,000) reportedly to help him fundraise for the University foundation. He was promised first class travel and hotel suites and had additional pledges from former regents, including a year-long sabbatical with pay and full benefits in year 6; and in year 7, a payment of $1 million if his contract was not renewed for the 3-year extension. In addition, Dobelle secured full tenure immediately (most professors wait 6 years), he was guaranteed a professors job when he completed contract a the highest pay level; and his retirement fund would kick in after 5 years, considerably boosting his retirement fund. He also had more than $40,000 allotted to him to join five business clubs - three in Hawaii and two highly exclusive clubs in the mainland.

In return, Dobelle made a promise that he'd be worth every penny and talked of being a "change agent" and without hesitation sung his own praises. Some of those around him called him "visionary." Others were astounded at his unbridled ego.

Legislators and Regents soon learned Dobelle had essentially no guidelines to hold him accountable and they could not terminate his contract "with cause," without paying him a whopping $4.5 million. ($2.2 million to buy out his president's contract; $2.1 million to buy out his full tenure and guaranteed professorship; other side deals totaling about $300,000).

What defined "firing for cause," enabling regents to settle for considerably less, constituted what Dobelle's litigation lawyers claim are "high standards." Those include a felony conviction; being declared mentally unstable by professionals; conduct that constitutes moral turpitude.

While the regents who negotiated his contract in 2001 were obviously smitten with their new University president, Dobelle and his promises did not stand the test of time.

Dobelle was called before the Legislature and questioned why he did not raise $150 million as promised to expand the University's medical school and why he had not replenished the University accounts after his wife spent $1 million more than allotted her on sprucing up the President's mansion.

Many members of the former Board of Regents, frustrated with what they called "lavish spending" and a pattern of "lies and deceit" wanted to fire Dobelle more than a year ago but were initially intimidated.

With a sense of invincibility, nothing seemed too good, too bold or too expensive for Dobelle.

Personally, he bought a Porche convertible and a $1.4 million home in Hawaii Kai. However, it was the hundreds of thousands of dollars he was entrusted with by the University of Hawaii Foundation and school that Dobelle began to digest without hesitation that angered regents and donors. That money was supposed to help with fundraising, school business and student scholarships and programs, but instead became Dobelle's personal piggybank. Dobelle's absorption of so much money so quickly earned him the reputation of being an "extravagant spender" - a reputation he said he despised because he as he told one reporter in an email obtained by Hawaii Reporter, "painting me as a big spender discourages giving."

The final straw that led to Dobelle's release: Regents learned Dobelle redirected $125,000 in funds from two private donors to the University of Hawaii Foundation for his protocol fund, much to the outrage of the donors.

He also used state time, resources and personnel to lobby five universities for jobs at other universities overseas, among many other actions that alarmed Regents.

On June 15, 2004, during a 12-hour behind-closed-door meeting, Regents opted to fire Dobelle for cause on the basis of "moral turpitude."

The plan: get Dobelle out "fast and cheap." Dobelle's lawyers demanded $20 million in mediation. Regents hoped to give Dobelle less than the $4.5 million the 2001 regents had ensured him with his contract and cancel all six secret side deals, all of which they did. After reviewing the evidence against Dobelle, his lawyers settled for just over $1 million, with $290,000 in addition fees for themselves.

This is a short version of the full series of stories. The complete series is available at www.hawaireporter.com

Unless you live on a coral atoll at the far western end of our state, you're probably aware that we are in an election year. Political signs are sprouting like weeds after a spring shower. Unfortunately, signs only communicate a candidate's name, office they're seeking and political affiliation except in city and county races. Signs do not tell us what the candidate wants to do for us or how they'll vote on issues once in office. Those important questions are asked and answered in local meetings, debates and forums.

Issues relating to real estate that should be addressed include property taxes. Tax assessmentshave soared due to increased property values. Ask your candidate where they stand on raising property tax rates further to balance budgets.

Leasehold Conversion Law (Chapter 38). Bill 53, to repeal Chapter 38 was just introduced in the City Council. This is a highly charged issue with strong arguments on both sides. Ask your candidate for City Council where they stand.

Another highly emotional issue is growth. In Hawaii Kai, no-growth advocates have organized and circulated petitions to block development and are flooding city officials with emails expressing their opposition to projects that already have approval as well as some still in the planning stage. Ask your candidate how they plan to balance the need and demand for housing with the concerns of overbuilding.

The preamble to the Realtor© Code of Ethics begins: "Under all is the land…" Land and land issues affect us all and we need to be clear how our elected officials stand.

Above all, register and vote!
Walt Harvey is a real estate broker with East Oahu Realty and works with his wife Arla. They can be reached on their website: http://www.coastalhawaii.com or by calling (808) 375-8959.

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September 2004 SB News Front Page

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