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PARADISE PAVED

 
 "THEY PAVED PARADISE"

They paved paradise and put up a parkin' lot
With a pink hotel, a boutique, and a swingin' hot spot
Don't it always seem to go
That you don't know what you got till it's gone
They paved paradise and put up a parking lot

They took all the trees, and put em in a tree museum
And they charged the people a dollar and a half to see them
Don't it always seem to go
That you don't know what you got till it's gone
They paved paradise, and put up a parking lot

Hey farmer, farmer, put away your DDT
I don't care about spots on my apples,
LEAVE me the birds and the bees please
Don't it always seem to go
That you don't know what you got till it's gone
They paved paradise and put up a parking lot
Hey now, they paved paradise to put up a parking lot...

Counting Crows ... Lyrics

~ ~ ~

 

PARADISE PAVED

 

I think that I shall never see,
A project lovely as a tree...

- with apologies to Joyce Kilmer    


 Sightings from The Catbird Seat

~ o ~

May 7, 2010

Lawsuit contends hotel's lights put

rare Hawaiian birds at risk

Conservation groups contend shearwaters and petrels are being harmed on Kauai

By Rosemarie Bernardo

Four conservation groups are suing the St. Regis Princeville Resort on Kauai, alleging that the luxury hotel has failed to prevent the death and injury of native seabirds on its property.

Hui Hoomalu i ka Aina, the Conservation Council for Hawaii, the Center for Biological Diversity and the American Bird Conservancy filed the complaint yesterday in federal court.

The groups contend the resort is violating the U.S. Endangered Species Act by not preventing deaths and injuries among Kauai's Newell's shear- water population, also known as Hawaiian shear- water birds, or a'o. They also claim that Hawaiian petrels, or ua'u, also have been injured or died because of the hotel's lights.

Hawaiian shearwater birds are a threatened species, and petrels are an endangered species. Both are endemic to Hawaii.

The group says that the seabirds heading to sea are drawn to the bright hotel lights, "circling them until they fall to the ground from exhaustion" or slam into the hotel's buildings. The seabirds spend months at sea and return in April to nest in the mountains.

From September through December, fledging birds fly toward the sea, but many do not reach the ocean because of the lights, the groups say.

Birds have fallen into the resort's pool, in the bar and in the hotel's entryway, according to attorney David Henkin of Earthjustice, which is representing the conservation groups. "They're raining down on the resort."

In a written statement, St. Regis attorney Lisa Woods Munger said, "It is disappointing to learn that the interest of Earthjustice lies in litigation, not collaboration." The St. Regis Princeville, she added, would prefer to spend its time and resources to protect the birds.

According to 2009 data collected by the Save Our Shearwaters program, more than 60 native seabirds came down at the resort last fall, said Henkin. Many of the birds were rescued and released by program members, but it is unknown whether any survived.

The program is coordinated by the Kauai Humane Society.

Henkin said that of the birds that were found dead or injured by Save Our Shearwaters from 2000 to 2008, more than a quarter were found at the Princeville resort.

Henkin said conservation group members met in October with hotel representatives to tour the resort after hotel officials claimed they had adopted several measures to protect the birds, which included dimming interior lights, lowering window shades and turning off the pool lights. A resort employee, however, later informed one of the groups' members that the lights stayed on and the shades remained up, the plaintiffs allege.

Hotel spokeswoman Stephanie Kaluahine Reid said St. Regis took multiple steps to implement a seabird program that include upgrading the lighting system. Light- deflection shields and shielded parking lot lights were installed during the hotel's multimillion-dollar renovation. The hotel also worked with a bird biologist to address the problem, she said.

"The St. Regis Princeville Resort actively incorporates policies that protect these seabirds," Reid said in a statement, adding that the hotel's staff members "are trained and dedicated to help the young shear- waters and Hawaiian petrels find their way to the ocean safely."

Henkin said that is not enough.

The coalition wants the hotel to turn off lights during the September-December season or install motion sensors or timers on the lighting system to minimize harm to the nocturnal seabirds.

"This is a solvable problem," he said.

The conservation groups filed a similar lawsuit against Kauai Island Utility Cooperative in March.

* * *

Four conservation groups are suing the St. Regis Princeville Resort on Kauai, alleging that the luxury hotel has failed to prevent the death and injury of native seabirds on its property.

COURTESY BRENDA ZAUN / USFWS
Four conservation groups have filed a lawsuit against the St. Regis Princeville Resort on Kauai, contending that the hotel is not protecting native seabirds, including shearwaters, as shown above.

* * *

Hui Hoomalu i ka Aina, the Conservation Council for Hawaii, the Center for Biological Diversity and the American Bird Conservancy filed the complaint yesterday in federal court.

The groups contend the resort is violating the U.S. Endangered Species Act by not preventing deaths and injuries among Kauai's Newell's shear- water population, also known as Hawaiian shear- water birds, or a'o. They also claim that Hawaiian petrels, or ua'u, also have been injured or died because of the hotel's lights.

Hawaiian shearwater birds are a threatened species, and petrels are an endangered species. Both are endemic to Hawaii.

The group says that the seabirds heading to sea are drawn to the bright hotel lights, "circling them until they fall to the ground from exhaustion" or slam into the hotel's buildings. The seabirds spend months at sea and return in April to nest in the mountains.

From September through December, fledging birds fly toward the sea, but many do not reach the ocean because of the lights, the groups say.

Birds have fallen into the resort's pool, in the bar and in the hotel's entryway, according to attorney David Henkin of Earthjustice, which is representing the conservation groups. "They're raining down on the resort."

In a written statement, St. Regis attorney Lisa Woods Munger said, "It is disappointing to learn that the interest of Earthjustice lies in litigation, not collaboration." The St. Regis Princeville, she added, would prefer to spend its time and resources to protect the birds.

According to 2009 data collected by the Save Our Shearwaters program, more than 60 native seabirds came down at the resort last fall, said Henkin. Many of the birds were rescued and released by program members, but it is unknown whether any survived.

The program is coordinated by the Kauai Humane Society.

Henkin said that of the birds that were found dead or injured by Save Our Shearwaters from 2000 to 2008, more than a quarter were found at the Princeville resort.

Henkin said conservation group members met in October with hotel representatives to tour the resort after hotel officials claimed they had adopted several measures to protect the birds, which included dimming interior lights, lowering window shades and turning off the pool lights. A resort employee, however, later informed one of the groups' members that the lights stayed on and the shades remained up, the plaintiffs allege.

Hotel spokeswoman Stephanie Kaluahine Reid said St. Regis took multiple steps to implement a seabird program that include upgrading the lighting system. Light- deflection shields and shielded parking lot lights were installed during the hotel's multimillion-dollar renovation. The hotel also worked with a bird biologist to address the problem, she said.

"The St. Regis Princeville Resort actively incorporates policies that protect these seabirds," Reid said in a statement, adding that the hotel's staff members "are trained and dedicated to help the young shear- waters and Hawaiian petrels find their way to the ocean safely."

Henkin said that is not enough.

The coalition wants the hotel to turn off lights during the September-December season or install motion sensors or timers on the lighting system to minimize harm to the nocturnal seabirds.

"This is a solvable problem," he said.

The conservation groups filed a similar lawsuit against Kauai Island Utility Cooperative in March.

Honolulu Star-Bulletin


December 25, 2009

Maui Land and Pine harvests last crop

The Honolulu Advertiser

Field workers at Hawai'i's last major pineapple plantation have picked their last pineapples.

Maui Land and Pineapple Co. shut down its century-old agricultural operation yesterday to focus on real estate development.

MLP says its pineapple business has lost $115 million since 2002 and is no longer financially sustainable.

The company is laying off about 285 employees. About 133 workers are being offered positions in the company's other businesses.

Hawai'i's major pineapple producers have shifted growing operations to foreign countries such as the Philippines, where labor is cheaper.

Former and current Maui Land employees hope to form a new company that would continue growing, packing and selling Maui Gold fresh pineapples.

http://www.honoluluadvertiser.com/article/20091225/BUSINESS14/912250351/-1/NLETTER03/Maui-Land-and-Pine-harvests-last-crop

 * * *

MAUI LAND & PINE

and

DAVID COLE

and

KAMEHAMEHA SCHOOLS BISHOP ESTATE

and

BARACK OBAMA

and

PUNAHOU SCHOOL

and

OPRAH WINFREY

and

STEVE CASE

and

THE HAWAII SUPERFERRY

and

THE HAWAII NATURE CONSERVANCY

and

FAYE WATANABE KURREN

and

JUDITH NEUSTADTER FUQUA

and

DAVID C. FARMER

and

HAUNANI APOLIONA

and

HENRY PAULSON

~ ~ ~

See also:

PARADISE PAVED

THE PUNA CONNECTION

THE VULTURES ON MAUI LAND & PINE

THE VULTURES IN MAUNAWILI VALLEY

THE VULTURES THAT ATE MY BED & BREAKFAST

VULTURES IN THE HAWAII NATURE CONSERVANCY

~ o ~

June 6, 2009

Foreclosure filed against

Maui project

By Andrew Gomes, Advertiser Staff Writer

A planned agricultural home subdivision in Upcountry Maui is facing foreclosure after permitting delays and the deflated housing market upset the project, called Waiakoa Ranch.

An affiliate of lender iStar Financial filed a foreclosure suit in state Circuit Court last month against Kula 1800 Investment Partners LLC, which was working on subdividing about 1,860 acres of land zoned for agriculture into 86 home lots between five acres and more than 40 acres.

The suit, filed May 22, claims that Kula 1800 arranged to borrow $71.5 million, and defaulted on payments for an outstanding balance of about $18 million.

The lender is seeking to have the property sold at auction.

Charlie Jencks, a representative of Kula 1800, said the developer is hopeful of reaching an out-of-court agreement with iStar that will keep the project afloat with its present owner until the real estate market recovers.

"They're well on their way toward that," he said.

Kula 1800 bought the land in March 2006 from Maui Land and Pineapple Co. for $22.9 million.

The partnership included Steve Goodfellow of Maui construction firm Goodfellow Bros., though Jencks said Goodfellow is no longer involved.

Another Kula 1800 principal, according to public business records, is Michael Rosenfeld of Woodridge Capital, a developer of large-scale real estate projects on the Mainland and Canada over the past 20 years.

Kula 1800 also said it is a partner in Maui Cattle Co., a partnership among several Maui ranches including Haleakala Ranch, which leases the Kula 1800 property for cattle grazing.

Jencks said the developers of Waiakoa Ranch encountered some delays drilling wells to supply the subdivision, and obtained preliminary subdivision approval from the county in December 2006.

A sales office was established, with the project represented by Island Sotheby's International Realty. But Jencks said no sales were made. Road and utility infrastructure also has not been built, other than the supply wells.

Waiakoa Ranch is one of several controversial subdivisions pursued by developers in recent years seeking to capitalize on what was a booming housing market by selling home sites on land zoned for agriculture.

The project was marketed as an opportunity for peaceful living that balances private residences with agricultural activity, conserving open space and ensuring that cattle ranchers have long-term access to much of the property kept in pasture land.

Such projects, often called ag subdivisions or gentleman's farms, exploit a loophole in state law generally permitting one or two "farm dwellings" on lots as small as two acres if they are accessories to a primary agricultural operation.

Much of the criticism of ag subdivisions is that the farm dwellings — often luxury mansions and sometimes vacation rentals — are being built primarily as residences for nonfarmers and are making farmland unaffordable for bona-fide farmers.

Several ag subdivisions on Maui — including Pu'unoa, Launiupoko and Ukumehame have been challenged as violations of state land-use law.

A Big Island project called Hokuli'a was ruled an illegal use of agriculture land by a state judge in 2003 after opponents challenged the project in court.

Hokuli'a comprised 750 one-acre home lots primarily around a Jack Nicklaus-designed golf course, which previously was an allowable use on ag land, and also included 200 acres for a leased coffee farm, a spa, tennis courts, club and beach house. The lawsuit was later settled, allowing completion of the luxury home subdivision.

Other projects, including Pe'ahi Farms and Ka'anapali Coffee Farms on Maui, have tried to more closely integrate farming with residential lot sales.

The plan for Pe'ahi Farms was 16 mostly two-acre home lots priced from about $1 million to $3 million, plus a 170-acre farm leased to a farm operator.

About $2 million from lot sales would help capitalize a nursery covering 15 to 30 acres, a 10-acre organic farm, high-protein grass for cattle grazing and fruit trees.

Ka'anapali Coffee Farms planned 108 house lots starting at $1.2 million amid 500 acres of existing coffee trees above Ka'anapali Resort.

On O'ahu, an affiliate of Beverly Hills, Calif.-based Kennedy Wilson Inc. is trying to develop 77 home lots on the roughly 2,700-acre Dillingham Ranch that would create 5-acre home lots over about 400 acres and help preserve the historical North Shore ranch.

The Honolulu Advertiser


 

For the latest vulture capitalist sightings...

ARRESTED DEVELOPMENT

 


 

October 3, 2008

Burial council hears

 

outrage over home site

By Tom Finnegan

LIHUE » Dozens of Hawaiians and their supporters testified yesterday in tears and with shouts and voices crackling with emotion before the Kauai Niihau Burial Council.

After about five hours of testimony, the council deferred to its Nov. 5 meeting the issue of construction on a Haena property that contains at least 30 ancient Hawaiian burials.

"The state has made a mistake, a big, major mistake," said Jim Medeiros, a Big Island resident. "Once you start building on the graveyards, it will become a (precedent) in the state."

The property has been the source of numerous lawsuits during the past five years, and a judge's decision last month sent the item back to the council.

Joseph Brescia, who bought the land in 2000 from actor Sylvester Stallone, has received permits from the county and state to build the home and has already poured the fittings for the home and a concrete cap for the five burials underneath the home.

But Judge Kathleen Watanabe decided last month that the burial council was not consulted on a revised burial treatment plan adopted by the state Historic Preservation Division.

The burial council had decided to preserve the seven graves in place that were to be under the house plot, but only five were actually under the home.

Members of the council testified at last month's hearing that they believed keeping the bones in place would halt the project, rather than allow Brescia to continue building the house.

"The building should not be there, period," said council member Barbara Say yesterday. "I didn't know they were going to be cemented. ... What is wrong with this man?"

The speakers implored the council yesterday to do everything in its power to stop the building of the home and protect the bones.

"It's been such a personal and dishonorable struggle that we have faced," said Hale Mawae. "The procedures and ... rules are ... fictional."

The permits given to Brescia are akin "to permitting desecration," said Hanalei Fergerstrom, a Big Island resident who flew in to attend the council meeting. "It is very important to nip this in the bud now."

Alan Murakami of the Native Hawaiian Legal Corp., who sued the state to get the item back on the agenda, said the council had the power to send the items back to the Kauai Planning Commission with a note that the conditions of the council have not been met.

The planning commission approved the permits with the provision that the burial council approve the treatment plan.

"What you do today will reverberate," Murakami added. "Let the planning commission play a role."

While speakers said the council was misinformed, they reserved their criticism for state archaeologist Nancy McMahon, who testified at the court hearing that she believed the area was not a cemetery, but 30 individual burial sites.

The land is not only a cemetery, many speakers said, but a special place of immense spiritual and cultural importance.

Brescia's attorney, Walton Hong, who watched the meeting, would not comment afterward.

Burial council hears outrage over home site - News - Starbulletin.com

http://www.voy.com/129276/1251.html

< < < FLASHBACK < < <

For Immediate Release:

February 19, 2005

Judge Kathleen Watanabe

GOVERNOR LINGLE APPOINTS KATHLEEN WATANABE
TO THE CIRCUIT COURT

HONOLULU – Governor Linda Lingle has named State Human Resources Director Kathleen N. A. Watanabe to the Fifth Circuit Court on Kaua`i.

Watanabe, who served as a per diem judge for the District Court of the Fifth Circuit from 1995 to 1998, as well as Kaua`i County Attorney from 1990 to 1994, will fill the seat previously held by Judge Clifford Nakea, who retired. Her appointment is subject to Senate confirmation.

“The comments of support I received from numerous people from Kaua`i and throughout the state who have worked and interacted with Kathy, confirm what I have seen first hand while working with her these past two years,” said Governor Lingle. “Kathy has an outstanding work ethic, she treats people with fairness, respect and compassion, and her integrity is beyond reproach. I appreciate the contributions Kathy has made to my Administration and to the state, and now I am proud to appoint her to the bench, where she will continue her career as a dedicated public servant.”

Watanabe has served as the director of the state Department of Human Resources Development since January 2003. Prior to that she headed the department’s Employee Relations Division, which involved overseeing labor relations issues, negotiation of collective bargaining agreements, employee relations, benefits, training and safety.

Previously, Watanabe was supervising deputy attorney general in the Employment Law Division of the Department of the Attorney General, where she supervised numerous trials and appeals in both state and federal courts. She also was supervising deputy attorney general for the Individual Claims Unit.

She has also served as a hearings officer for the Hawaiian Homelands Commission, a social worker for the Department of Health, a guidance counselor for Kamehameha Schools and Alu Like, a tutor with the Department of Education, and a law clerk with the State House of Representatives.

Watanabe also had a private legal practice with an emphasis in administrative and employment law.

Watanabe is a member of the Hawai`i State Bar Association. She is the vice-chair of the Hawai`i Employer-Union Trust Fund, chair of the State of Hawai`i Deferred Compensation Board of Trustees, and a board member of the Judiciary’s Center for Alternative Dispute Resolution.

She is a graduate of the University of Hawai`i William S. Richardson School of Law, University of Puget Sound, and Kapa`a High School.

Governor Lingle selected Watanabe from a list of six candidates that was submitted by the Judicial Selection Commission earlier this month. Watanabe is Governor Lingle’s seventh appointee to the Circuit Court bench. The Governor has also appointed one justice to the Hawai`i Supreme Court and two to the Intermediate Court of Appeals.

~ ~ ~

See also: Alu Like Funding; Apartheid Hawaii; Blue Gold in Blue Hawaii; CV05-00030-Witness Dennis Fern; CV05-00030-Witness David C. Farmer; Got Windmills?: Hardened Boneheads; Vultures in The Bishop Museum


August 13, 2008

Unearthing burial laws

Kaua'i protestors await court decision

by Joan Conrow

When more than 1,000 ancient burials were unearthed in 1989 to make way for the Ritz-Carlton resort at Honokahua, Maui, it caused such a public uproar that the state Legislature passed a bill in its very next session that changed the way Hawaiian burials would be handled.

“I believe that after Honokahua, people certainly believed the law that was put in place would actually prevent the kind of thing that is happening now on Kaua’i, which is essentially building a house on top of a burial ground,” said William Aila, a member of Hui Malama I Na Kupuna ‘O Hawai’i Nei, which formed after the Honokahua incident.

The Kaua’i project has been the focus of ongoing controversy, including a demonstration last Thursday in which seven men temporarily stopped construction by linking themselves together with a PVC pipe.

“We’ve seen the same thing happen with General Growth Properties and Wal-Mart on O’ahu, where numerous burials were found, and still the construction continues,” Aila said. “The hope and belief was that these things would be stopped.

But the construction hasn’t stopped, those involved in burial issues say, because the law has been very misapplied and misinterpreted, and top administrators have failed to allocate sufficient funding for the State Historic Preservation Division (SHPD) to do its job.

“Obviously, if people don’t want the law to work, it ain’t gonna work,” said Alan Murakami, an attorney with the Native Hawaiian Legal Corp (NHLC), who has represented Hui Malama. “It requires the governor to say, ‘we value this and want to give it priority.’ We’ve asked [Gov. Linda Lingle] to say that and she will not.”

“If you don’t want it to work, you should be honest about it, not cripple it with inadequate funding and staffing and what looks like an attempt to make it collapse from within,” Murakami said.

Efforts also have been made to get the state Legislature to provide oversight of SHPD, which Murakami said is plagued with “systemic and chronic” problems, but that hasn’t been a priority with lawmakers.

“Essentially, the only thing keeping developers from doing what they want are major conflicts and lawsuits,” Murakami said. And that’s exactly what’s happening at Naue, on Kaua’i’s north shore, where several demonstrations have been held. The NHLC is seeking an injunction to stop Joe Brescia, a California developer, from building a house on an oceanfront site where 31 burials have been found. A hearing is set for Thursday, August 14 in Kaua’i’s Fifth Circuit Court.

The key issue of the suit, Murakami said, is that the Kaua’i Island Burial Council determined the burials should be preserved in place, but the SHPD is taking the position that capping them in concrete and building a house on top constitutes preservation.

Murakami said the state attorney general’s office frequently provides island burial councils with poor legal advice and bad interpretations of the law. As a result, the councils often aren’t aware of all their options in dealing with a burial site.

Palikapu Dedman, a longtime Hawaiian activist from the Big Island who was involved with Honakahua, said the burial councils are unduly influenced by the state, so their decisions tend to reflect the state’s perspective, rather than traditional practices.

He said that the burial councils do have authority to make reports to the Legislature on holes in the law so that those problems can be remedied. But the councils have never done this, Dedman explained, because they aren’t advised of the full scope of their powers. “I don’t think they were encouraged to be stronger in that function,” he said.

Both Aila and Murakami said many developers have found ways to circumvent the burial councils, which have authority only over known burials. The problem is that the SHPD determines what should be done with burials that are discovered “inadvertently” during construction.

“Their [developers'] strategy now is to make as many inadvertent burials as possible because then the burial councils don’t have jurisdiction, and they seem to be getting more favorable treatment from the SHPD,” Aila said.

Murakami added: “They’re all trying to avoid finding the burials in advance.”

Aila and others have been meeting with state legislators since the end of the last session to discuss amending the law to require developers to do a full archaeological survey before proceeding with any plans or permits.

“You have to have a thorough knowledge of what you can expect to find so you can design the project accordingly,” he said. “The way business is done in Hawai’i needs to be changed.”

Some lawmakers, including Senators Jill Tokuda, Clayton Hee and Colleen Hanabusa, have been supportive, Aila said, as well as developers who recognize the value of avoiding the bad publicity, litigation, construction delays and “hewa, a heaviness or burden.”

Murakami agrees that “some minor tweaking could be done with the law,” but said that’s not enough in itself to resolve the problems.

“We’ve got some major issues administratively, including the need for more resources,” he said.

There’s also some discussion over whether the Department of Land and Natural Resources should no longer have jurisdiction over the SHPD. Dedman said the counties should assume responsibility for burials. Murakami, in turn, advocates citizen oversight panels with “some power to keep the persons in charge accountable.”

In the end, they all say, the same kind of public outcry that erupted over Honakahua is needed now to stop the ongoing disturbance of burials throughout the islands.

“This has been going on for too long,” Murakami said.

“You can put any kind of twist on it, but it comes down to a moral human respect issue,” Dedman said. “These things can’t be directed by money. They have to be directed by the soul.”

Editor’s Note

Over the past year, many of our readers have enjoyed reading Brian Schatz’s fresh and engaging “Straight Schatz” columns in these pages, as have we. Unfortunately, Schatz’s recent election as Chairman of the Democratic Party of Hawai’i makes his presence as a regular columnist unworkable in the context of our responsibility to report fairly and without the appearance of favoritism on issues facing our community.

“Straight Schatz” will no longer appear in Honolulu Weekly. We are grateful for Brian’s contributions and wish him the best of luck.

Ragnar Carlson

http://honoluluweekly.com/diary/2008/08/unearthing-burial-laws/

http://kahea.wordpress.com/


May 29, 2008

Turtle Bay exec:

further development needed

By Kristen Consillio, Star-Bulletin

The new interim manager of the Turtle Bay Resort has determined that further development at the controversial North Shore property is necessary to keep the operation viable.

Local developer Stanford Carr, installed last week by resort lenders to head operations and find a buyer, said expansion outside of the existing resort's footprint is an option, since a new owner would need to satisfy the conditions of a 1986 agreement that calls for public parks and other amenities to be built by a developer - who would need to recoup the investment.

"It's got to have economic equilibrium - they can't maintain a vast amount of land like that," said Carr, who was recruited by the property's lenders, including Credit Suisse and Wells Fargo, because of his expertise in the Hawaii real estate market. "Raw land is probably the worst investment, you can't depreciate it. You just don't have the economies of scale at the moment."

Due diligence, feasibility studies and quantifying the costs of public improvements must be completed before determining the scope of any expansion, he said.

The isolated character of Turtle Bay located on one of the island's last remaining rural coasts has been an attraction for visitors seeking a neighbor island-type of resort on Oahu.

"It's very pristine and so that has an attraction, but again you have to have the right execution of the product," he said. "Like anything, it's got to be responsible development."

His first priority is to meet with the community to gain an understanding of their concerns and also with local representatives of resort owner Oaktree Capital Management L.P. to resolve maintenance issues at the 858-acre property with money budgeted by lenders.

New York-based Eastdil Secured LLC is preparing material to begin marketing resort assets, possibly within the month, Carr said.

Eastdil ceased marketing when Credit Suisse filed a $283 million lawsuit last December against Oaktree's local entity, Kuilima Resort Co.

Meanwhile, Gov. Linda Lingle has been campaigning for the state to acquire the resort to protect it from plans to build an additional 3,500 hotel and condominium units on the property.

Carr, a Lingle supporter, hasn't seen a proposal from the state yet, but said his role doesn't mean a state acquisition will be easier.

"Sometimes it could be even more difficult, it could go both ways," he said.

There is a "mutual trust" because of the long relationship he has with the governor, but the decision ultimately lies with the owners and lenders, he said.

"The state is competing much like the rest of the other interested buyers," Carr said. "Everybody wants a win-win situation. I'm born and raised here, I'm fifth generation, I'm going to do the right thing."

http://starbulletin.com/2008/05/29/business/story01.html


May 24, 2008

Turtle Bay under

new management

By Rick Daysog, Honolulu Advertiser

Local developer Stanford Carr has taken over management of the Turtle Bay Resort and the controversial plan to build five new hotels with 3,500 rooms and condominium units on O'ahu's North Shore.

Carr replaces Los Angeles-based Oaktree Capital Management LLC as Kuilima Resort Co.'s interim manager.

He also will be in charge of securing new investors for the 848-acre property, whose redevelopment has sparked opposition from community groups and has prompted Gov. Linda Lingle to seek a state buyout to preserve the land.

"There's a lot of work to be done on the property and there's a lot of work to be done in communicating with the community," Carr said in a telephone interview yesterday.

Carr's appointment is part of an agreement by lenders Credit Suisse and Wells Fargo & Co. and Kuilima to restructure the development company's $400 million loan, which had been the subject of a foreclosure suit.

Under the terms of the restructuring, Oaktree exits from day-to-day management of Kuilima but retains ownership of a 470-acre agricultural property just mauka of the resort.

The 470-acre property does not include the site of the controversial redevelopment plan.

Nicola Jones, who is stepping down as Kuilima's chief executive officer, said in a news release that the resort and its golf courses will operate as usual and that the restructured loan will make it easier to attract new investors.

"We're very pleased that a settlement has been reached, as this now reopens the door to a wide range of prospective investors," said Jones.

Carr is owner of Stanford Carr Development LLC, one of the largest residential developers in the state.

He also is a longtime Lingle supporter and was part of a local team that invested in Aloha Airlines before it shut down two months ago.

Last year, the Lingle administration awarded an $11.5 million nonbid emergency contract to begin building transitional housing in Ma'ili to a company owned by Carr.

Rev. Bob Nakata, co-chair of the Defend O'ahu Coalition, which opposed the Turtle Bay expansion plan, said Carr's links to the Lingle administration may mean that he's "more susceptible to public pressure."

"He doesn't want a public relations disaster, because he has other business interests in town," said Nakata.

Oaktree, a $54 billion private investment firm, acquired Turtle Bay in 2000 and recently revived plans for a multibillion-dollar development that would include five new hotels and 3,500 hotel rooms and condos.

But the plan immediately ran into opposition from community leaders who want to retain the North Shore's rural way of life.

In December, Credit Suisse filed a foreclosure suit against the company after it defaulted on a $285 million loan.

Earlier this year, state lawmakers passed a Lingle-backed plan, in which the state would seek to acquire the undeveloped portions of the resort. Under the plan, the state would buy areas surrounding nearby Kawela Bay and Kahuku Point while a private investor would take over the hotel, the golf courses and other developed areas.

Ted Liu, director of the state Department of Business, Economic Development and Tourism, welcomed the management change, saying it adds clarity to the sales process. Neither Credit Suisse nor Wells Fargo has a local presence, making it difficult to negotiate a deal with all parties, said Liu.

"This presumably creates the type of certainty that makes it better for investors and buyers," said Liu.


January 14, 2008

Red Hot Lava Menaces

Old-boy Scam

Special from Hawaii Free Press, by Andrew Walden

Red hot lava threatening Puna’s Royal Gardens subdivision opens yet another chapter in a long-running saga. A hui of elected officials and state and county engineers in 1961 bought the 1,807 acre site from the Bishop Estate (Kamehameha Schools) for $200,000 after easily obtaining preliminary approval to subdivide from the Hawaii County Planning Commission.

Democrat Gov. George Ariyoshi, then a state Senator, was at the center of the Royal Gardens hui and at the center of the early 1960s subdivision boom on the Big Island. George Cooper and Gavan Daws, authors of the landmark 1985 book “Land and Power in Hawaii,” demonstrate how Big Island subdividers modeled their plans on earlier scams to sell swampland in Florida.

“A (Royal Gardens) brochure described the development as being ‘directly adjacent to Hawaii Volcano National Park with its spectacular attractions.’ Another way of putting this would be to say that Royal Gardens was only 12 miles to the east-southeast of an active volcano ….

“In 1960 a lava flow covered much of Kapoho, destroying the village of that name. In 1977 an eruption nearly destroyed the village of Kalapana, about three miles northeast along the coast from Royal Gardens. Then in 1983, 1984, and 1985, a total of seven lava flows entered Royal Gardens, destroying altogether 22 homes, or about one in three of all residences so far built in the subdivision ….

“With this in mind, it is ironic to note that among those who invested in Royal Gardens in the 1960s were several people connected directly or indirectly, then or later, with government response to natural disasters such as volcanic eruptions.

“Investor Arthur Ishimoto was in 1983 state director of civil defense. Engineering consultant Yoshio Inaba had approved Royal Gardens’ creation as county engineer. As county engineer he also had some responsibility for Big Island civil defense plans and operations. One of Royal Gardens’ lawyers, George Ariyoshi, was the state’s chief executive when the volcano erupted (in 1983). The son of two other investors, the Matayoshis, was the Big Island’s chief executive in 1983.”

Other limited partners included judges, senators and representatives, Hawaii county supervisors (council members), a future Hawaii county mayor, and state and county engineering personnel.

Cooper and Daws explain: “Norman Inaba, who brought Milolii Beach Lots Subdivision and Royal Gardens into existence, was among the biggest of Hawaii County’s developers. In 1964 the Hawaii Star-Bulletin described him as ‘the Big Island’s most diversified if not the biggest subdivider with nine developments around the island covering some 7,000 acres.’”

By the end of the boom in the mid-1970s about 80,000 lots had been created on an island with a population of about 80,000. Twelve percent of lot buyers were Big Island residents. This meant that about 25 percent of Big Island families had an investment in the success of the schemes. Another 35 percent were Oahu residents. These local residents were voters who expected to profit from their purchases. They became a political base for the developers and politicians.

This was typical of other developments including Kihei, Maui and Salt Lake Oahu. Elected officials named in development-related corruption scandals often went on to higher office while those who questioned this type of speculative development often lost out.

The first speculative development was Hawaiian Acres -- 12,000 acres subdivided into about 4,000 lots in 1958. The lots sold quickly, inspiring more subdivisions to be formed. On a single day in 1962, just before some changes in the state’s land use law would take effect, the Hawaii County Planning Commission approved 42 new subdivisions totaling 3,500 lots.

In December 1966, the Hawaii County Board of Supervisors passed an ordinance requiring paved roads and water lines. This did not end subdivision but rather forced the elected speculators to extract more profit in order to pay for the improvements. The result was developments such as Kona Highlands. Meanwhile sales in substandard subdivisions continued as developers still held many lots.

As many as 60 percent of the Big Island’s subdivisions fall within the U.S. Geological Survey’s “high risk” (Zone 2) and “highest risk” (Zone 1) areas. Volcanic activity along the east rift zone of Kilauea has been frequent since 1955 and constant since 1983. In 1969 a hui of developers attempted to subdivide 6,000 acres of Kapoho. As described by Cooper and Daws, “(Their) planning consultant wrote that the project’s ‘major tourist attractions include…the 1960 lava cone and surrounding lava field providing visitors with an opportunity to experience the awesome forces of nature.’” Although the county Planning Commission supported the application, the state Land Use Commission turned it down.

About 49 percent of Hawaii is today owned by state or federal government. Another 47 percent is owned by large trusts such as Kamehameha Schools or Parker Ranch. That leaves 4 percent for the public. This stands in sharp contrast to the other 49 states. For instance in New Mexico, slightly over 40 percent of land is owned by state and federal government. But the top 40 private New Mexico landowners together own only about 8% of the state. In eastern states, the percentage of land in governmental hands is often below 10 percent and private ownership is even more diversified.

Cooper and Daws quote a 1958 editorial from the Hilo Tribune Herald: “This newspaper goes along with the optimists, confident that the eager buying of land, much of it sight unseen, means that the Big Island is finally coming into its own, and that we are on the threshold of development that has kept Oahu singing with prosperity…Here on the Big Island we don’t much care what brings them in as long as they come and as long as they buy ….”

Some look back on this era with disdain. But they are fooling themselves. Today politicians extract far more from the schemes by staying away from active volcanoes and letting professionals do the developing. After the Hokulia decision was announced in March, 2006, West Hawaii Today editor Reed Flickinger opined: "Hokulia has raised the bar in what can and should be offered to the community by developers. It also serves as a significant benchmark for government officials who are too easily cowed by developers claiming an inability to provide benefits or mitigate impacts because the project would then be ‘no longer profitable’. There now exists proof to the fallacy of that allegation by so many developers."

Today more money than ever is being extracted from developers. Hawaii’s economy remains based on land development rather than the development of the educational and economic potential of individuals. And 10,000 residents left for the mainland last year even in the midst of an economic boom.

REFERENCES

“Land and Power in Hawaii” (Royal Gardens p263-77):

http://www.amazon.com/Land-Power-Hawaii-Democratic-Years/dp/0824813030

Hokulia:

http://www.hawaiireporter.com/story.aspx?479bfe1c-3c00-4580-83ee-f6fa950922a7

New Mexico land ownership:

http://members.aol.com/wmpb/CrossLand

Hawaii land ownership:

http://en.wikipedia.org/wiki/Hawaii_Housing_Authority_v._Midkiff

Related article:

http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20080113/NEWS01/801130366

Andrew Walden is the publisher and editor of Hawaii Free Press, a Big Island-based newspaper....

HawaiiReporter.com reports the real news, and prints all editorials submitted, even if they do not represent the viewpoint of the editors, as long as they are written clearly....

http://www.hawaiireporter.com/story.aspx?90d744bd-cf41-4150-9940-78eb980780e5

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