Hokulia developer stops work, seeks cash

Friday, May 2, 2008

Hokulia developer stops work, seeks cash

Pacific Business News (Honolulu) – by Janis L. Magin Pacific Business NewsThe developer of the Hokulia project has stopped work on two clubhouses and various other amenities at the Big Island luxury golf course development, apparently caught short by the international credit squeeze.

It is the second time in five years that the billion-dollar Kona development, which has been plagued by litigation since starting up in 1999, has had to halt construction. The developer is also unable to close any pending sales until public documents are updated with a new construction schedule.

On Feb. 29, the county issued building permits for a $10.75 million clubhouse complex at the 1,540-acre project above Kealakekua Bay. The complex includes a $7.5 million clubhouse, a $1.7 million cart storage building, a $1.3 million pro shop and a $250,000 generator building.

Work on that complex and on a second clubhouse, the Ocean Club, stopped two weeks ago.

Last week, developer Lyle Anderson wrote to lot owners and club members to assure them that the project was not bankrupt and said that he was looking for an “equity partner or partners for some of my companies.”

Hokulia developer 1250 Oceanside Partners is an affiliate of Anderson’s The Lyle Anderson Company, which also developed the 930-acre Superstition Mountain Golf and Country Club, the 8,000-acre Desert Mountain and the 850-acre Desert Highlands in Arizona and the 4,700-acre Las Campanas near Santa Fe, N.M.

In the April 24 letter, Anderson said his companies have had a line of credit for the past 14 years with a bank and that the loans are secured by the companies’ assets — thousands of acres of real estate. He did not name the bank.

“The global credit crunch and oversupply of residential real estate have caused valuation adjustments of our real estate holdings that are of concern to the bank, and although they have continued to fund ongoing operations, they have expressed reluctance about advancing additional funds for major development activities,” Anderson wrote in the letter, a copy of which was obtained by PBN.

“During the discussions with the bank, there has never been any discussion of shutting down Hokulia, putting Hokulia in bankruptcy or of not completing the amenities or the bypass highway, although construction of the Clubhouse and Ocean Club, which are bonded, has been temporarily suspended. The discussions have related to the outstanding obligations between my companies and the bank, and not as to the wisdom of the long-term development of Hokulia.”

Hokulia was forced to stop construction in September 2003 after Circuit Court Judge Ronald Ibarra ruled that the subdivision was an illegal use of agricultural land.

After a 30-month shutdown, 1250 Oceanside Partners reached an out-of-court settlement allowing construction to resume in March 2006.

The developer is in the process of preparing a supplement to the final environmental impact statement submitted in 1993 as part of its request to the state Land Use Commission to reclassify the land from agricultural use, said Hokulia CEO John DeFries.

DeFries told PBN last fall that the supplemental EIS would take up to nine months to complete, but he said this week that the document is not yet finished, and that the state would not rule on 1250 Oceanside Partners’ petition until the supplemental EIS is accepted.

DeFries declined to say how long the latest shutdown would last, citing confidentiality agreements.

“I think all parties understand that expediting that negotiation is in everyone’s best interest,” he said.

Under the March 2006 settlement, Hokulia agreed to downsize the density from 1,400 to 665 lots, to forego adding another nine holes to the golf course and to abandon plans to build a members’ lodge.

1250 Oceanside Partners must also complete the Mamalahoa Bypass road, a partially built 5.5-mile stretch of highway that runs parallel to Mamalahoa Highway.

The developer has completed the first 2.5 miles of the road, from Alii Drive at Keauhou to the north to Halekii Street in the Kona Scenic subdivision in Kealakekua, but much of that has been closed because of a lawsuit involving one landowner who refused to give up the right of way on the three miles of highway left to be completed.

Last fall, Ibarra ruled that the 1,000-foot stretch of land owned by the Charles and Joan Coupe Trust could be condemned by the county because the highway was in the public interest.

Hawaii County now has possession of the property, but the Coupes have appealed the ruling, and Hokulia is working with the county to protect the developer in the event the Coupes prevail on their appeal, said Hawaii County Public Works Director Bruce McClure.

Once construction resumes, Hokulia will have approximately 39 months to complete the highway to its end at Napoopoo Junction, under its original agreement with the county,.

In the meantime, all of about 200 lots in Hokulia’s phase one have been sold. Five homes have been completed, five are under construction and three are scheduled to start construction by the end of the year. There are also 34 lot owners who are in the design review process for their homes.

In November, the developer began sales on the project’s second phase, Nalu Kai Estates, 45 home sites surrounded by the first nine holes of the project’s Jack Nicklaus-designed 18-hole golf course, close to the 140-acre shoreline park and near the project’s planned ocean club and spa retreat. Six sales have closed since then, five are in escrow and eight are under contract but have not gone into escrow, DeFries said.

“We can resume escrow closings once our public documents are updated at the conclusion of the negotiation between the lender and The Lyle Anderson Co.,” he said.

The Canadian firm S&P Destination Properties is handling sales for the phase two lots, which range from at least one to more than two acres in size, and are priced between $2.5 million and $4.5 million.

Those prices are considerably higher than the lots in the first phase, which went on sale in 1999 at prices ranging from $700,000 to more than $2 million for lots of between one and 1.5 acres in size.

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News Flash! News Flash! News Flash!

We now get more learning, more knowledge and more wisdom on Mondays starting August 4th.

Tune in to radio station KAOI – AM1110 in the morning at 7:00am if you would like to hear more about your lawful standing as a Kanaka Maoli Oiwi!

To be kept up to date click below

Ko Hawaii Pae Aina

Truth & Justice in Ko Hawii Pae Aina on Akaku

These are the notes I have from the program Truth & Justice in Ko Hawaii Pae Aina on Akaku Television Channel 53. This program is aired every other Monday at 7pm to 8pm. It is a live program where issues concerning Kanaka Maoli are discussed and people can call in with comments and/or questions.

Last night the discussion centered around the Con-Con and Kau Inoa. Comments made in newspapers concerning the Con-Con were discussed.

One of the things I remember is that there was a Con-Con in 1978. I never knew that. At this Con-Con, amendments were made to the constitution. The question is…what constitution was amended?

While delivering a detailed discussion of the Con-Con and Kau Inoa callers were calling in expressing their opposition to Kau Inoa and why.

One kupuna called and in ‘olelo expressed his utter discontent with Kau Inoa.

A younger man called in and for the life of me I can’t remember what he said but I do remember it was brilliant and there was a lot of clapping from the audience in the studio.

Another Kupuna called in and expressed his disagreement with Kau Inoa in a very diplomatic way.

I made a comment, it’s the only one I remember word for word, that Kau Inoa will take the land away from my children. I do not uphold the lawful Constitution because I can see how it would benefit myself, I uphold the lawful Constitution because I can see that one of its main purposes is to insure (not assure) that the keiki of Kanaka Maoli Oiwi have land that is owned by them in perpetuity.

It’s all about the Keiki for me!

This was my first time in the studio so I didn’t know what to expect but the next time I’ll have my pen and paper and will be taking notes furiously!

Or better yet, I’m going to start uploading the programs on YouTube probably sometime this week.

I’ll give the link then. If you want to learn where you stand lawfully, how you can deal with foreigner’s in our world today, I’d take a look at these programs especially if you don’t live on Maui and cannot attend classes.

Law Literacy for Maoli 7/13/2008

U.S. Code Collection 11701

Yesterday was yet another eye opening, brain cleaning class conducted by Mahealani Ventura Oliver. Missing was John Oliver who was busy working on a new office location. We missed you John and your thoughtful and timely questions.

The main point of the class was to continue the breakdown of the U.S. Code Collection Title 42, Chapter 122, 1170.

Below is a copy from Cornell University or you can download from their website. Just click on the title above to get to their site. I highlighted the terms that were discussed in class.

U.S. Code collection

§ 11701. Findings

The Congress finds that:

(1) Native Hawaiians comprise a distinct and unique indigenous people with a historical continuity to the original inhabitants of the Hawaiian archipelago whose society was organized as a Nation prior to the arrival of the first nonindigenous people in 1778.

(2) The Native Hawaiian people are determined to preserve, develop and transmit to future generations their ancestral territory, and their cultural identity in accordance with their own spiritual and traditional beliefs, customs, practices, language, and social institutions.

(3) The constitution and statutes of the State of Hawaii:

(A) acknowledge the distinct land rights of Native Hawaiian people as beneficiaries of the public lands trust; and

(B) reaffirm and protect the unique right of the Native Hawaiian people to practice and perpetuate their cultural and religious customs, beliefs, practices, and language.

(4) At the time of the arrival of the first nonindigenous people in Hawaii in 1778, the Native Hawaiian people lived in a highly organized, self-sufficient, subsistence social system based on communal land tenure with a sophisticated language, culture, and religion.

(5) A unified monarchical government of the Hawaiian Islands was established in 1810 under Kamehameha I, the first King of Hawaii.

(6) Throughout the 19th century and until 1893, the United States:

(A) recognized the independence of the Hawaiian Nation;

(B) extended full and complete diplomatic recognition to the Hawaiian Government; and

(C) entered into treaties and conventions with the Hawaiian monarchs to govern commerce and navigation in 1826, 1842, 1849, 1875 and 1887.

(7) In the year 1893, the United States Minister assigned to the sovereign and independent Kingdom of Hawaii, John L. Stevens, conspired with a small group of non-Hawaiian residents of the Kingdom, including citizens of the United States, to overthrow the indigenous and lawful Government of Hawaii.

(8) In pursuance of that conspiracy, the United States Minister and the naval representative of the United States caused armed naval forces of the United States to invade the sovereign Hawaiian Nation in support of the overthrow of the indigenous and lawful Government of Hawaii and the United States Minister thereupon extended diplomatic recognition of a provisional government formed by the conspirators without the consent of the native people of Hawaii or the lawful Government of Hawaii in violation of treaties between the two nations and of international law.

(9) In a message to Congress on December 18, 1893, then President Grover Cleveland reported fully and accurately on these illegal actions, and acknowledged that by these acts, described by the President as acts of war, the government of a peaceful and friendly people was overthrown, and the President concluded that a “substantial wrong has thus been done which a due regard for our national character as well as the rights of the injured people required that we should endeavor to repair”.

(10) Queen Lili’uokalani, the lawful monarch of Hawaii, and the Hawaiian Patriotic League, representing the aboriginal citizens of Hawaii, promptly petitioned the United States for redress of these wrongs and for restoration of the indigenous government of the Hawaiian nation, but this petition was not acted upon.

(11) In 1898, the United States annexed Hawaii through the Newlands Resolution without the consent of or compensation to the indigenous people of Hawaii or their sovereign government who were thereby denied the mechanism for expression of their inherent sovereignty through self-government and self-determination, their lands and ocean resources.

(12) Through the Newlands Resolution and the 1900 Organic Act, the United States Congress received 1.75 million acres of lands formerly owned by the Crown and Government of the Hawaiian Kingdom and exempted the lands from then existing public land laws of the United States by mandating that the revenue and proceeds from these lands be “used solely for the benefit of the inhabitants of the Hawaiian Islands for education and other public purposes”, thereby establishing a special trust relationship between the United States and the inhabitants of Hawaii.

(13) In 1921, Congress enacted the Hawaiian Homes Commission Act, 1920 which designated 200,000 acres of the ceded public lands for exclusive homesteading by Native Hawaiians, thereby affirming the trust relationship between the United States and the Native Hawaiians, as expressed by then Secretary of the Interior Franklin K. Lane who was cited in the Committee Report of the United States House of Representatives Committee on Territories as stating, “One thing that impressed me . . . was the fact that the natives of the islands who are our wards, I should say, and for whom in a sense we are trustees, are falling off rapidly in numbers and many of them are in poverty.”.

(14) In 1938, the United States Congress again acknowledged the unique status of the Hawaiian people by including in the Act of June 20, 1938 (52 Stat. 781 et seq.), a provision to lease lands within the extension to Native Hawaiians and to permit fishing in the area “only by native Hawaiian residents of said area or of adjacent villages and by visitors under their guidance”.

(15) Under the Act entitled “An Act to provide for the admission of the State of Hawaii into the Union”, approved March 18, 1959 (73 Stat. 4), the United States transferred responsibility for the administration of the Hawaiian Home Lands to the State of Hawaii but reaffirmed the trust relationship which existed between the United States and the Hawaiian people by retaining the exclusive power to enforce the trust, including the power to approve land exchanges, and legislative amendments affecting the rights of beneficiaries under such Act.

(16) Under the Act entitled “An Act to provide for the admission of the State of Hawaii into the Union”, approved March 18, 1959 (73 Stat. 4), the United States transferred responsibility for administration over portions of the ceded public lands trust not retained by the United States to the State of Hawaii but reaffirmed the trust relationship which existed between the United States and the Hawaiian people by retaining the legal responsibility of the State for the betterment of the conditions of Native Hawaiians under section 5(f) of the Act entitled “An Act to provide for the admission of the State of Hawaii into the Union”, approved March 18, 1959 (73 Stat. 4, 6).

(17) The authority of the Congress under the United States Constitution to legislate in matters affecting the aboriginal or indigenous peoples of the United States includes the authority to legislate in matters affecting the native peoples of Alaska and Hawaii.

(18) In furtherance of the trust responsibility for the betterment of the conditions of Native Hawaiians, the United States has established a program for the provision of comprehensive health promotion and disease prevention services to maintain and improve the health status of the Hawaiian people.

(19) This historical and unique legal relationship has been consistently recognized and affirmed by the Congress through the enactment of Federal laws which extend to the Hawaiian people the same rights and privileges accorded to American Indian, Alaska Native, Eskimo, and Aleut communities, including the Native American Programs Act of 1974 [42 U.S.C. 2991 et seq.]; the American Indian Religious Freedom Act [42 U.S.C. 1996, 1996a]; the National Museum of the American Indian Act [20 U.S.C. 80q et seq.]; and the Native American Graves Protection and Repatriation Act [25 U.S.C. 3001 et seq.].

(20) The United States has also recognized and reaffirmed the trust relationship to the Hawaiian people through legislation which authorizes the provision of services to Native Hawaiians, specifically, the Older Americans Act of 1965 [42 U.S.C. 3001 et seq.], the Developmental Disabilities Assistance and Bill of Rights Act Amendments of 1987, the Veterans’ Benefits and Services Act of 1988, the Rehabilitation Act of 1973 [29 U.S.C. 701 et seq.], the Native Hawaiian Health Care Act of 1988, the Health Professions Reauthorization Act of 1988, the Nursing Shortage Reduction and Education Extension Act of 1988, the Handicapped Programs Technical Amendments Act of 1988, the Indian Health Care Amendments of 1988, and the Disadvantaged Minority Health Improvement Act of 1990.

(21) The United States has also affirmed the historical and unique legal relationship to the Hawaiian people by authorizing the provision of services to Native Hawaiians to address problems of alcohol and drug abuse under the Anti-Drug Abuse Act of 1986.

(22) Despite such services, the unmet health needs of the Native Hawaiian people are severe and the health status of Native Hawaiians continues to be far below that of the general population of the United States.