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

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July 3, 2006

Hawaii Kai project draws ire

Developers want to build 180 cabins on a
parcel surrounded by conservation land

By Diana Leone, Star Bulletin

Veterans of past battles to block development on Oahu’s Ka Iwi Coast are “reactivating” to join other Hawaii Kai residents in fighting 180 proposed vacation cabins on mauka preservation land.

Dave Matthews and Phil Estermann, key players in the Save Sandy Beach Coalition in the 1980s, are joining with the nonprofit Liveable Hawaii Kai Hui and other East Honolulu residents against the project.

The two were among more than 200 people last week at a Hawaii Kai Neighborhood Board meeting, objecting to developer QRM’s plans for clusters of 800-square-foot cabins with “unobstructed ocean and mountain views.”

QRM development director Aaron Eberhardt said in a news release about the project that it would meet the “demand for increased recreational opportunities for a growing portion of East Honolulu” by offering hiking, mountain biking, rock-climbing, swimming, tennis, volleyball, golf, horseback-riding, fishing, snorkeling and scuba diving to visitors.

Queen’s Rise Recreation Center would be built on a 98-acre parcel of land surrounded by conservation land, while the Mauuwai Recreational Center would be on 83 acres mauka of the Hawaii Kai Golf Course, the release said.

But Eberhardt didn’t have answers for most of the questions residents asked him at Tuesday’s meeting, neighborhood board member Dolores Elms-Beattie said.

“His presentation was pretty lame,” she said. “He didn’t have a traffic study or an environmental impact study and he was quoting from a cultural study 10 years old.”…

Estermann said the developers are “trying to turn the land use ordinance upside down” by seeking one cabin per acre of land under the city’s preservation zoning. “These guys have proposed a kind of resort with vacation cabins.”

One reason people are concerned about the project is that the city Department Planning and Permitting could approve the cabins without a public hearing, said Elizabeth Reilly, a neighborhood board member and spokeswoman for Liveable Hawaii Kai Hui.

“This isn’t about stopping development,” Reilly said. “It’s about protecting the scenic value of that coastline.”

Another concern is that, if approved, the development could set a precedent for preservation land development, said Gary Weller, a Kamilonui Valley entrepreneur and farmer. The allowance for one cabin per acre was “originally designed for something like Boy and Girl Scout camps,” he said. “It was never intended to be what they’re trying to turn it into.”…

“I would have thought we would have stopped it,” he said, referring to the Save Sandy Beach’s 14-year struggle to halt planned development on the makai land between Sandy Beach and Makapuu….

Read the complete story at…

http://starbulletin.com/2006/07/03/news/story02.html

 <<< FLASHBACK <<<

February 21, 2002 

Sandy Beach dispute settled

Everybody’s happy with a land swap that preserves
open space and precludes a trial

By Debra Barayuga, Star Bulletin

The city has agreed to turn over the proceeds from the sale of 46 acres in Manana in exchange for 32 acres of privately owned ocean-view property near Sandy Beach for use as a public park.

The land swap, which includes the sale of 20 acres in Manana to Wal-Mart Stores Inc., was at the heart of a settlement the city reached early yesterday with Kamehameha Schools, the state’s largest private landowner, and lessee Maunalua Associates.

Romy Cachola, chairman of the Council’s policy committee, helped broker the deal, which was approved by the nine-member Council late yesterday.

The settlement package — estimated at $60 million to $70 million — ends nearly 15 years of litigation and controversy over two parcels of land known as Golf Course 5 & 6.

Developer Maunalua Associates had obtained a special management permit to build 171 residential units there in 1988, sparking a referendum to preserve the land.

The settlement also warded off a trial, scheduled to begin next week, that could have cost the city more than $120 million in damages and attorney’s fees, Cachola said.

“This global settlement will save the city and taxpayers a substantial amount of money,” Cachola said. He had previously said the city may have to raise property taxes to pay for damages.

Mayor Jeremy Harris noted that “the settlement will protect 30 acres of the Ka Iwi coast from development by designating the area for park use in perpetuity.”

Hamilton McCubbin, Kamehameha Schools chief executive officer, praised the settlement, saying it reflects an acknowledgment that the actions the City Council took in 1989 were unconstitutional.

It also provides “fair value to Kamehameha Schools in compensation for the taking,” McCubbin said….

The coalition sparked the initiative in which 160,000 people voted against developing the property.

Although the Hawaii Supreme Court ruled that the 1988 initiative was illegal, and even after developers had obtained a special management permit, the city enacted a moratorium on issuing permits for the property, then passed an ordinance downzoning the parcels to preservation.

Developers Maunalua Associates and KRDC Inc., successors to Kaiser Hawaii Kai Development Co., sued the city in 1989. The trial would have settled how much the city owed developers for their losses….

Under the settlement, the city will pay $5 million to the plaintiffs within 30 days after notifying the court that the parties have agreed to the settlement. The city included the $5 million in its 2001 budget.

Closure of the Wal-Mart deal — four parcels with a net worth of $17.5 million — will end the lawsuit forever, Cachola said….

Ken Kupchak, attorney for Maunalua, said the agreement has the prospect of a “win-win situation” but the parties must work hard to achieve the best and highest price for the parcels….

http://starbulletin.com/2002/02/21/news/story2.html


 

The Wise Ol’ Owl asks: And just who-o-o is Maunalua Associates???

According to an organizational chart for the Zurich Group, Maunalua Associates is a member of a ‘Holding Company System’ whose members include The Maryland Casualty Insurance Company, and The Kemper Group. The ultimate parent of the Company is Zurich Financial Services, Zurich, Switzerland.

(…so is THAT where Hawaii tax-payer’s money went … to Switzerland? ? ?)


 

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March 9, 2006

Proposed development at Turtle Bay
bothers residents

Some are concerned about renewed plans to build 3,500 units

By Allison Schaefers, Star-Bulletin

On a big wave day at the North Shore, it takes Peter Cole an hour and a half to get from Haleiwa to his country home at Sunset Beach….

The popularity of the North Shore has inflated property values, stretched community services and created traffic jams — and resurrected a two-decade-old master plan at Turtle Bay Resort that would bring 3,500 new hotel and condominium units to an otherwise rural area stretching from Kawela Bay to Kahuku Point.

“That would just be immense,” said Cole, who first opposed the plan when it was presented in mid-1980s because of potential negative impacts on the region’s environment, traffic conditions and quality of life.

Turtle Bay Resort’s master plan, which included five lodging structures, was expected to be completed by 1996 but never came to fruition due to its then-struggling financial position. Oaktree Capital, which acquired Turtle Bay in 1999 and has spent $60 million upgrading the once-dilapidated hotel, is now moving forward on the original development master plan that was approved years ago, said Doug Carlson, a spokesman for Kuilima Resort Co., the developer of Turtle Bay….

While hotel workers union Local 5 supported the development in the 1980s, the union is now opposed to the project.

“We don’t think it’s going to create the quality jobs that our workers need,” said Eric Gill, financial secretary-treasurer for Local 5. “Turtle Bay Resort pays workers less money and offers substantially less benefits than our other Oahu hotels.”

The union, which has been involved in a consumer boycott of Turtle Bay Resort since 2003, has filed an injunction to stop the Honolulu Department of Planning and Permitting from giving Kuilima Resort Co. the necessary permits to move forward on the project, Gill said.

Local 5 joined North Shore community groups to rally in front of the resort in January to protest further development of the area, and the region’s neighborhood board members have been flooded with calls, said Creighton Mattoon, chairman of the land and planning committee for the Koolauloa Neighborhood Board….

“I think community sentiments on development vary from total support to total opposition to many positions in between,” Mattoon said. He gets two to three calls a week about the proposed project.

While some have told Mattoon that the project would be good for economic development and would create jobs, others are concerned that its environmental impact statement is too old and needs to be re-examined….

Others are worried that the region’s two-lane main transportation artery cannot support the development, he said.

Population and visitor growth has created “a mathematical problem that didn’t exist 20 years ago,” said Carol Philips, president of the North Shore Neighborhood Board….

“People like the country: That’s the sole reason that we live in the North Shore,” she said. “The atmosphere of the North Shore will change as a result of this development. I think it’s just starting to sink in for the community that this could be an impending reality.”

Read the complete story at…

http://starbulletin.com/2006/03/09/business/story01.html

~ ~ ~

For more, GO TO > > > The Pirates of Punaluu

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Dec. 3, 2005

Case sued over purchase
of Grove Farm

Shareholders claim Steve Case had insider information
that helped him buy the company

By Stewart Yerton, Honolulu Star-Bulletin

Steve Case, the Honolulu native who created and once ran the world’s largest media conglomerate, has been sued by former shareholders of a Kauai company that Case acquired in 2000.

The former shareholders of Grove Farm Co. Inc. allege that Case engaged in insider trading while negotiating the acquisition of privately held Grove Farm for $26 million, or $152 a share. The suit alleges that Case acted on information provided to him by his father, Dan, whose law firm, Case Bigelow & Lombardi, served as counsel to Grove Farm at the time of the acquisition….

Although the suit alleges misdeeds by several people, including Dan Case and former Grove Farm executives, the only defendant named is Steve Case, who according to Forbes magazine is one of the richest men in the United States….

Continued at ... Grove Farm

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October 28, 2005

Rural area was site of FBI search

Noshir Gowadia and his wife are relative newcomers
to the low-key, high-priced locale

By Gary T. Kubota, Star-Bulletin

HAIKU, Maui » In rural Huelo, many of the unpaved rutted roads lead to multimillion-dollar homes with manicured lawns and breathtaking views of the Pacific Ocean.

And it was in one of these homes, federal authorities allege, that Noshir S. Gowadia kept government secrets about one of America’s most formidable weapons, a B-2 stealth bomber.

It is an impressive dwelling, Mediterranean style with blue tile roof, white stucco-looking walls and a view overlooking the Pacific Ocean. Many of the homes in this area have recently been sold for about $2 million each. Gowadia and his wife bought the 2-acre lot for $330,000 in 1999.

During an Oct. 13 search, FBI agents seized classified documents from the house.

Agents said the documents dated back from Gowadia’s employment with Northrop — between 1968 and 1986 or to the early 11990s — when he was a contract engineer at the Los Alamos National Laboratory in New Mexico.

Gowadia, a design engineer for the project, called himself the father of the B-2’s infrared suppressing propulsion system. And now, authorities say, he allegedly sold B-2 secrets to about eight foreign governments, violating federal espionage laws.

An FBI agent said Gowadia reported receiving nearly $750,000 from 1999 to 2003, but the income could be greater because he has several bank accounts, some of which are foreign and unreported.

The home that was searched by the FBI sits on the edge of rural Maui, an area favored by residents who want to get away from urban Kahului.

Past the expensive homes, further up on the hillside, there are pineapple fields and farms along nearby Hana Highway, where unattended vendor stands let customers bag their own fruit and put the money in a locked cash box.

A few residents along Holokai Place and adjacent North Holokai Road said they do not know what to think about the alleged charges because they do not know the Gowadias, who are newcomers….

John Papazian, principal broker and owner of Haiku Properties, said many homes in the area have sold for more than $2 million….

The Gowadias have been active in the real estate market on Maui, buying a home in Kihei in 1999 for $75,000 and selling it in 2001 for $121,000.

The couple also bought a house at Keonekai Estates in Kihei for $390,000 in 2001 and sold it for $575,000 in 2003, according to Maui County tax records.

http://starbulletin.com/2005/10/28/news/story03.html

For more about Noshir Gowadia, GO TO > > > The Spy Who Came to Maui

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April 26, 2005

U.S. court ruling allows Army’s Stryker
plans in isles to proceed

By Greg K. Kanesako, Honolulu Star-Bulletin

The Army can now seriously begin talks to buy 23,000 acres of Big Island Parker Ranch land to support the training of its 19-ton Stryker combat vehicles, following yesterday’s decision by a federal court judge.

Chief U.S. District Judge David Ezra ruled in the Army’s favor, removing a major obstacle to the formation of a 3,350-member Stryker combat brigade at Schofield Barracks.

In a 24-page decision, Ezra rejected claims from Earthjustice, which represents Hioulaokalani Coalition, Na Imi Pono and Kipuka, and said the Army followed all requirements of existing federal environmental laws.

On Aug. 17, Earthjustice sued the Army, claiming that it violated environmental laws by refusing to consider locations outside Hawaii. David Henkin, attorney for Earthjustice, said his clients were reviewing Ezra’s ruling. Henkin said there are several options available, including asking the federal court to reconsider Ezra’s decision or appealing it to the 9th U.S. Circuit Court of Appeals.

Ron Borne, head of the Army’s transformation plans, said the negotiations with the Smart Estate were placed on hold because of the legal challenges involving the Army’s environmental impact statement.

The Parker Ranch land would be used for maneuvers only and not any type of live-fire operations.

Army Stryker-related plans also call for the acquisition of 1,400 acres adjacent to the 27,000 acres Schofield now occupies in Wahiawa.

The Army plans to spend $693 million on Oahu and the Big Island on 28 Stryker-related military construction projects….

In a written statement the Army said it is “pleased with Judge Ezra’s ruling and appreciates the court’s thoughtful consideration of this very important matter.”

Hawaii Chamber of Commerce President Jim Tollefson said Ezra’s decision means that “transformation will go forward in Hawaii.”

“It’s good for the Army, and it’s good for the security of the country,” Tollefson added.

The first two dozen eight-wheeled vehicles should arrive at Schofield Barracks in May 2006. Eventually, the 25th Division will have 300 Stryker vehicles.

Each Stryker costs about $1.5 million.

< < < FLASHBACK < < <

December, 2003

The Army vs. The Hawaiians

By Alan D. McNarie, Hawaii Island Journal

“I’m against the military on our lands. It’s because they still didn’t deal with the problem. And the problem is…us,” Braddah Abel Simeona Liu told the grim-faced military panel at the Hilo Hawaiian Hotel.

Us” referred to Native Hawaiians.

Simeona Liu, a well-known kupuna from Ka-u, had joined scores of other Hawaiians in the crow of around 200 people who had gathered at the Hilo Hawaiian Hotel to present public feedback on the proposed basing of a rapid deployment “Stryker” armored infantry brigade to Hawai’i. More than 70 people signed up to testify at the meeting, which started at 7 a.m. and didn’t adjourn until around 1 a.m.

Some had to go home before they could testify, but of the dozens who did speak over that six-hour-period, only four or five favored the proposal. The rest seemed intent on conveying an emphatic message: that before the Army considered expanding its activities on the island, it needed to address unfinished business, including dozens of sites around the island where unexploded ordinance had been found, and the problem of the Hawaiians, an underground nation who still see the U.S. Army as an enemy occupying force.

Big Braddah or Big Bully?

For many of the descendants of the occupied Kingdom of Hawaii and their later-arriving allies, the Stryker’s mission seemed less about deterring aggression than about projecting American power.

“The Stryker is definitely an offensive weapon …” said Bunny Smith. “It’s going to be flattening villages – people like us.”

Another Hawaiian, who had served in Vietnam, noted the Stryker’s characteristics suited it more for urban occupation than for slugging it out on a traditional battlefield. … He concluded, “This is not about protecting you. This is about going around, protecting the world.”

Big Bruddah or Big Bully,” asked another kupana. “You guys got reputations all over the world for ‘Big Bully.’ Time to change that.”

The next speaker, also native Hawaii, took the same theme a step further. “If I got a letter from the moon, and they ask me, ‘You know how those guy’s are?’ I would say, “Kill them right away. They spread like flies…”

While he told the military panel, “I hold you in high regard as soldiers. You well-trained machines…,” he concluded, “It’s the money you protect, not the inalienable rights of people.”

 www.hawaiiislandjournal.com/stories/12a03a.html

See also: Parker Ranch

For more, GO TO > > > The Puna Connection

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Move out Martha and let the big dogs in! …

March 4, 2005

Billionaire accused of insider trading

Las Vegas Review-Journal

Billionaire Japanese developer Yoshiaki Tsutsumi, once listed by Forbes as the world’s richest man, was arrested Thursday on allegations of insider trading and falsifying financial statements at his company.

Tsutsumi, 70, owns a major stake in Kokudo Corp., which controls Seibu Railway and its subsidiaries. He also owns Prince Hotels, Inc, the Seibu Lions professional baseball team and Seibu Construction Ltd.

He was arrested on suspicion of violating the securities and exchange law, the Tokyo District Prosecutors’ Office said.

Prosecutors took Tsutsumi to a Tokyo detention center for questioning.

See also: Seibu Group of Japan

For more, GO TO > > > frontline: the fixers: Interview with Donna Wong | PBS; Yakuza Doodle Dandies

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March 25, 2005

Goldman Sachs offers to buy
Seibu Railway group for $8.5 billion

Yahoo biz

US investment bank Goldman Sachs has offered to buy the scandal-hit Seibu Railway group for about 900 billion yen ($8.5 billion dollars), a newspaper said.

Goldman Sachs has proposed purchasing Seibu Railway shares held by the group’s core company Kokudo and taking over Kokudo’s debt obligations, the Nihon Keizai Shimbun said, citing anonymous Seibu officials….

The group has been hit by a financial scandal.

Former Seibu railroad and hotel empire chief Yoshiaki Tsutsumi, once dubbed the world’s richest man, has been charged with falsifying financial statements to conceal his family control over the listed Seibu Railway.

He has also been indicted for insider trading after orchestrating the sale of shares in the now delisted railway firm before the concealment came to light.

The group’s reform panel was set to compile the final version of its reform plan centering around Kokudo’s absorption into Seibu Railway and a 200-billion-yen capital increase, the economic daily said.

The offer by Goldman Sachs would serve as an alternative to this plan, it said….

For more on Goldman Sachs, GO TO > > > Apollo Advisors; The Blackstone Group; Dirty Gold in Goldman Sachs; Dirty Money, Dirty Politics & Bishop Estate; Investigating Investcorp; Yakuza Doodle Dandies

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March 8, 2005

Princeville Resort Sold for $161M

By Rick Daysog, Star-Bulletin

The Princeville Resort on Kauai is being sold for more than $161 million, according to a published report.

The Nikkei English News said the sale of the 9,000-acre resort to Morgan Stanley Real Estate Funds and a partnership headed by developer Jeff Stone will likely close this month.

Stone told the Star-Bulletin in July, when the deal was first announced, that the buyers plan to make substantial improvements to the resort….

Stone said in July that the buyers expect to retain the resort’s 600 employees as part of the sales agreement….

The sellers include Japan’s fourth-largest brewer, Suntory Ltd., which owns a 51 percent stake in the property; Mitsui & Co., which owns 24.5 percent; and Japanese developer Nippon Shinpan Co., which also owns 24.5 percent.

Suntory, which will receive about $80.8 million from the deal, plans to sell some of its noncore businesses and invest about $1.9 billion over the next three years to buy other beverage companies, Nikkei reported.

Mitusi and Nippon Shinpan acquired the resort in 1990 from developer Chris Skase’s Quintex Australia Ltd.

Suntory later purchased a 51 percent stake in the resort from Nippon Shinpan….

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For more on Princeville Resort’s insurance broker, Marsh & McLennan, GO TO > > > The Marsh Birds

And, for more on these flocking financial vultures, GO TO > > > Apollo Advisors; The Blackstone Group; Buzzards Of Paradise; Claims By Harmon; Dirty Money, Dirty Politics & Bishop Estate; Predators in Paradise; The Grand (and dirty) Ko Olina; RICO in Paradise; The Weinberg Foundation; Yakuza Doodle Dandies

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December 30, 2004

Maui L&P CEO gets $4 million in shares.

By Sean Hao, Honolulu Advertiser

Maui Land & Pineapple Co. issued 100,000 shares in the name of president and CEO David Cole this week, and Cole said he has no intention of selling the stock.

Under terms of Cole’s contract most of those shares are restricted and cannot be sold, Cole said yesterday. However, Maui Land & Pine was required to register the securities – worth nearly $4 million – with the Securities and Exchange Commission.

“That’s just a requirement under my employment contract,” said Cole, who became CEO of Maui Land & Pine on Oct. 15, 2003.

“I have no plan to sell any of those shares at the present time. I just got here.”…

… Continued at Maui Land & Pineapple Co.

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December 10, 2004

$700,000 Disbursed To Settle Church Case

By Edwin Tanji, Maui News

WAILUKU – Faced with paying Maui County as much as $700,000 for the legal costs of a lawsuit filed by the Hale O Kaula Church, the county’s insurance company has paid the church that much to settle the suit, county officials said Thursday.

“It was paid to the church at 3 p.m. today,” said Deputy Corporation Counsel Madelyn D’Enbeau, who said the settlement was based on an agreement that had the dispute going back to the Maui Planning Commission for resolution.

The commission last month voted to approve a five-year special permit to allow the church to build a sanctuary for worship services on its 5.8-acre agricultural-zoned property in Pukalani.

As part of the settlement, the church agreed to drop its demands for its legal fees, estimated to be in excess of $1 million involving three law firms, D’Enbeau said….

The dispute dates back more than 10 years, to when the church members first purchased the farm lot at the end of a private road in a subdivision developed in a former pasture in Pukalani….

An initial request to build a church on the property was denied in 1995 when other landowners along the private road protested that it would create congestion and noise in an agricultural district.

A new request for a special permit for a church was filed in 1999, and, after a lengthy and disputed contested case process, was again denied. After the second denial in 2002, the church filed a suit in federal court, accusing the county of discrimination in rejecting its permit request.

The church was supported in its suit by a national organization, the Becket Fund for Religious Liberty, that sought to make the issue a test case for a new federal law, the Religious Land Use and Institutionalized Persons Act of 2000….

Because of the issues raised by RLUIPA, the case also received attention from the federal government, with the Civil Rights Division of the Department of Justice also filing a suit against the county for an alleged civil rights violation in its handling of the land-use issue….

Although the county’s insurance carrier, Royal & SunAlliance, negotiated the settlement, the county was prepared to carry the case to the U.S. Supreme Court for resolution to protect the local government’s rights over its land-use procedures.

In the case, the church had gone through a contested case hearing but declined to present evidence to the hearings officer assigned to the case [Judith Neustadter Fuqua, Esq.], claiming that she had displayed a bias against the church. When the hearings officer’s recommendation went to the Maul Planning Commission, there was no evidence to support the church’s application and the commission denied the permit.

“Our position was always that you have to go to the planning commission. You have to present evidence. It’s not as though you should be able to decide whether you like the hearings officer or not. You have to use the process just like everyone else does,” D’Enbeau said….

In dealing with the legal complaints, D’Enbeau noted that the county’s policy with Royal & SunAlliance had the insurance carrier paying the county for the legal work of defending itself.

The company already owes the county $200,000 in attorney’s fees, mostly for work performed by D’Enbeau.

“They pay $200 an hour. That’s more than I get paid,” she said.

Edwin Tanji can be reached at editor@mauinews.com

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For more regarding Judith Neustadter Fuqua, and the Maui Planning Commission, GO TO > > > Claims By Harmon;

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July 3, 2004

LILIUOKALANI TRUST WEIGHS KONA DEVELOPMENT

By Karin Stanton, Associated Press

Honolulu Star-Bulletin

KAILUA-KONA – Preserving local culture and open space and providing affordable housing should be priorities for Queen Liliuokalani Trust land, residents say.

The trust, which underwent a management change last year, is exploring ways to capitalize on 3,500 acres in Kona.

The Keahuolu ahupuaa, or ancient land division, is the only source for future income for the trust that provides services for orphaned and destitute Hawaiian children, said Robert Ozaki, president and chief operating officer.

After a series of meetings in West Hawaii, board of trustees Chairman Thomas Kaulukukui Jr. and trustees David Peters and Patrick Yim now will develop general land use directions.

A preliminary plan likely will be complete by fall, Ozaki said….

He and the trustees met Thursday in Kailua-Kona with 60 residents, seeking input and hearing concerns….

At every meeting, residents stressed any development should allow them the live, work, plan, learn and shop within the community, Ozaki said.

Trustees are devoted to caring for and respecting the land, collaborating with stakeholders and creating an income stream….

Residents have indicated they favor health care facilities, a performing arts and cultural center, and elderly and affordable housing

They would like to see land at the higher elevations remain agricultural, the shoreline preserved and parks created.

Residents voiced concerns about existing traffic congestion, but opposed building roads across trust land.

Native Hawaiians urged that burials, trails and stone walls be preserved in place on the queen’s land.

Constructing condominiums and high-end homes on the land is “useless to us,” Jimmy Medeiros said. “They are just more congestion and troubles for us.”

Others called for improving or repositioning the industrial area, and said that building heights should be restricted and utility lines should be underground….

Josephine Keliipio, however, said that’s not good enough.

“It already looks like Southern California,” she said. “Be Kona, not southern California.”…

For more, GO TO > > > The Queen Liliuokalani Trust

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May 11, 2004

Schuler buys land for 290 Maui homes

By Andrew Gomes, Honolulu Advertiser

Schuler Homes has bought a 20-acre piece of undeveloped land at the master-planned residential community Maui Lani, doubling its development plans at the Kahului project.

The Honolulu company, a unit of Texas-based D.R. Horton Co., bought the parcel for an undisclosed price from Maui Lani Partners LLC, a company headed by local developer Bill Mills.

Schuler plans to build about 290 single-family homes on the site. The company anticipates sales to begin early next year, with the first homes delivered around September 2005. Prices are expected to start in the $300,000s and $400,000s for two product types split between the 290 homes….

Continued at Schuler Homes.

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April 23, 2004

Hawaii tops nation in
extinctions, report says

A federal agency is accused of failing to protect species

By Ron Staton, Associated Press

Nearly half of the 114 species that have become extinct in the first 20 years of the federal Endangered Species Act were in Hawaii, according to a new report by an advocacy group.

The report by the Center for Biological Diversity says the federal government’s failure to protect species “has been spectacular,” and accuses the U.S. Fish and Wildlife Service of knowingly delaying listings “to avoid political controversy even when it knew the likely result would be the extinction of the species.”

A statement from the Fish and Wildlife Service said the agency “denies the inflammatory claim” and challenged the accuracy of the report….

The service said funding has been limited because of litigation over critical habitat, and noted that fish and wildlife habitat has been declining for decades because of urbanization.

The report released Wednesday said “the number (of extinct species) is shocking and indicates a grave failure in federal management of the nation’s most powerful environmental law.”

A co-author of the report said that with so many unique species, Hawaii faces the worst problem in the country.

The 52 species lost from the islands include the large Kauai thrush, which once was the most common bird on the island; the Molokai thrush, which was endemic to Molokai; and 11 species of Oahu tree snails.

Only 19 percent of the extinctions involved species on the endangered list, showing that the 1973 law is working – at least for species that make the list, said Kieran Suckling, the center’s executive director and a co-author of the report.

“But species known to be endangered were stuck in bureaucratic delay and went extinct before they had a chance to be listed,” Suckling said.

“That should never have happened.”

Nearly all the species could have been saved if the Endanger Species Act had been properly managed, fully funded and “shielded from political pressure,” he said.

Hawaii is unique not only for the number of species on the list, but because state law requires that every species placed on the list is automatically added to a state list, said Michael Buck, administrator of the Foresty and Wildlife Division of the state Department of Land & Natural Resources, which works with the Fish and Wildlife Service.

He acknowledged, however, that “just getting something on the list does not save endangered species.” The No. 1 issue for Hawaii, Buck said, is “coming up with resources and public support.”

California was the next-highest state in the report with 11 extinctions. Guam had eight, while Alabama and Texas each had seven….

“The extinction crisis in Hawaii is worse than anywhere else,” Suckling said.

“We believe the Fish and Wildlife Service should have no higher job than preventing species from going extinct.”

Buck said extinctions have been occurring since Western sailors first discovered the islands in 1778.

The extinction rate probably has increased in the past 10 years, Suckling said.

“There is no reason to believe it went down,” he said.

http://starbulletin.com/2004/04/23/news/story2.html

– The Center for Biological Diversity’s report can be found at:

www.biologicaldiversity.org/swcbd/Programs/policy/esa/eesa.html

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<<< FLASHBACK <<<

From Earth Island InstituteEarth Island Journal – Winter 1996-97:

Corruption, Cover-up in Hawaii

by Carroll Cox

In 1990, I began work as a special agent for the law enforcement division of the US Fish and Wildlife Service (FWS) in Hawaii and the Pacific Basin – home to nearly 40 percent of endangered species in the US.

I was encouraged by President Clinton’s request that employees report waste, fraud and abuse in government. As part of my daily work, I identified activities that could have negatively affected wildlife, as well as numerous agency misdeeds.

Because I blew the whistle on dubious operations and filed EEOC (Equal Employment Opportunity Commission) complaints against the FWS, I was subjected to harassment and retaliation by FWS administrators and Secretary of the Interior Bruce Babbit. Finally, on March 25, 1995, I was fired.

In the course of my work for the FWS, I reported misuse of funds by agency personnel. The FWS often rewarded wrongful behavior by promotion or, at the worst, simple transferral to another regional office.

The FWS settled a sexual harassment case that had been brought against my supervisor out of court and ignored his use of a government-issued vehicle for personal business. The FWS transferred him to another facility and placed him on the agency’s prestigious special operations team.

In 1992, I reported that agency personnel possibly were attempting to acquire contaminated land on Maui for use as a wildlife refuge – to cast a favorable light on President Bush for his then-upcoming re-election bid.

I reported that individuals in the FWS who curried political favor were able to interfere and prevent necessary law enforcement activities concerning Bishop Estate land on the island of Hawaii, where clearcut logging of koa trees was destroying several endangered species’ habitat.

When I uncovered the unlawful take, import, export and commercialization of endangered species by members of the Palauan government (then a trust territory in the Pacific Islands, administered by the US), I was punished. My investigations revealed that officials in Palau not only were smuggling endangered species from the Philippines, but also, contrary to US law, were shipping sea turtles to Japan.

Supervisors ordered be to modify reports so that they would not reflect the actual number of endangered birds killed or otherwise affected by a Chevron oil company operation near Campbell Industrial Road on Oahu. The damaged site, a series of ponds, was coated with oil – as were the birds that had settled in the ponds.

Information I obtained revealed that the longline fishing industry was damaging whales, turtles, monk seals, dolphins, sea turtles and thousands of seabirds. When I presented evidence and documentation to the Western Pacific Fisheries Counsel (WPFC) and made recommendations on how to prevent this wanton slaughter, I was told that the WPFC would take action. Instead, the National Marine Fisheries Service sent me a letter directing me not to interview their observers, who, on many occasions, were aboard fishing vessels when the killings occurred.

When all administrative remedies failed, I appealed directly to the public through the media and achieved an enforcement victory. The longline industry was shut down for 90 days.

As a result of my work, I was harassed, subjected to racial discrimination and eventually fired….

Other employees in my office also have been harassed. Michael Hart, one co-worker acting as a witness in both my case and another employee’s case, was found dead in the agency’s office with a gunshot wound to the chest.

Though FBI agents responded to the initial report of a possible assault to t federal officer, they did not investigate further once police had ruled his death a suicide. The day before his death, Hart complained that he had been threatened by his supervisors and was afraid of losing his job.

After I was fired, the US Attorney’s office in Honolulu subpoenaed me as a credible witness on a then-pending case involving drugs, firearms and endangered species, which I had initiated as a special agent – even though that office was and still is representing the government against me on charges of “accepting a bribe.”…

The Office of Special Counsel investigating my case conducted its “formal” investigation during a beer-drinking session with the now deceased co-worker. My letters of appeal to President Clinton, Hawaii’s Congressman Neil Abercrombie and Congresswoman Patsy Mink, Georgia Congressman John Lewis and to other officials have gone unanswered.

It seems the FWS is willing to tolerate questionable acts of ethical and moral behavior but has little compassion for a person who dedicated his heart and soul to protect the public’s interest and ownership of precious resources….

Read the complete article at www.earthisland.org

~ ~ ~

And, visit crusader Carroll Cox’s current website at www.envirowatch.org/

~ ~ ~

See also: www.the-catbird-seat.net/AAA-4-12-4.htm

~ ~ ~

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May, 2002

In lush Hawaii, some see ‘train-wreck scenario’ as early warning of growing world water crisis

U.S. Water News Online

HANA, Hawaii – On the paradise island of Maui, where some of the world’s heaviest rains pelt lush peaks, scientists say big users squander water so badly that main wells may soon be contaminated by salt.

“They’ll be lucky if they have another five years at this rate,” said William Meyer, who recently retired as the U.S. Geological Survey’s regional director.

“This is a train-wreck scenario.”

Maui, water experts say, is an alarming example of what happens in an isolated microcosm – an island, in this case – as conflicting interests must fight over runoff from rains and dwindling underground reserves.

Although by itself only a dot in the Pacific, Maui is viewed as a revealing laboratory not only for the rest of Hawaii but also the wider world beyond.

“Places like this have no Colorado River to fight over,” Meyer said. “When they realize they’re out of water, it is all of a sudden, and it is too late.”

Already, native Hawaiians who plant their staple taro see streams to dry at a quickening rate because agriculture barons and land developers use their historical rights to divert water. That may be only the beginning.

On volcanic islands, rain that does not run out to sea settles in porous groundwater aquifers, forming what geologists call a lens of fresh water above encroaching salt water.

But, hydrologists say, for each foot of fresh water taken from these subsurface aquifers, forming what geologists call a lens of fresh water above encroaching salt water.

But, hydrologists say, for each foot of fresh water taken from these subsurface aquifers, heavier salt water pushes up 40 feet. As a result, uncontrolled pumping can mean calamity in a hurry.

Hastened by four years of drought, levels have plummeted in Maui’s Lao aquifer, from 18 feet above sea level in 1990 to 10 feet in 2001. That left only 400 feet in the freshwater lens.

Planners say Maui’s population of 150,000 could reach 1 million by 2050 as tourism expands, making hard choices inevitable. A hotel complex or golf course needs a million gallons a day, enough for 10,000 people.

Even now, few people talk about the crisis.

“This is our dirty little secret,” said Lucinne de Naie, a Maui conservationist who tracks supply and demand.

“Everyone needs water so everyone is afraid to criticize the people who control it.”

She said Maui leaders lacked even the political will to determine how much water they had. “With a precious resource, when you are in doubt about something, you don’t do it,” she said.

Experts warn of other impending crises on the islands of Oahu, Kauai and Molokai, where they say aquifers also are emptying faster than rain can recharge them.

The bulk of Maui’s water is collected or pumped by Alexander & Baldwin Inc., a company founded in 1870 by two sons of missionaries. Its elaborate ditch system carries water from wet areas to dry ones.

The company takes 60 billion gallons a year from streams that cross public land, drought or not, paying the state of Hawaii only $160,000 annually, officials say

… Continued at Alexander & Baldwin.

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April 22, 2004

State land swap called a bad deal

A Maui firm wants to trade
industrial lots in Waipahu for
state agricultural land

By Nelson Daranciang, Star-Bulletin

Some lawmakers say the state is making a bad deal in giving up 226 acres of agricultural land in Kapalua for 1.4 acres of industrial property in Waipahu.

Maui Land & Pineapple Co. wants to include the state land in an expansion of its luxury Kapalua Resort development. The state land is a narrow strip in the middle of the company’s property.

In exchange the state would get three vacant lots, totaling 1.4 acres, in the Mill Town Center industrial park in Waipahu that Maui Land & Pine will purchase from Alexander & Baldwin for the exchange.

Rep. Alex Sonson (D., Pearl City-Waipahu) said he thinks Maui Land & Pine is getting the better end of the deal.

“Much better, a lot better,” he said….

– Continued at Maui Land & Pineapple.

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April 15, 2004

Maui council approves Makena
rezoning request

by Timothy Hurley, Honolulu Advertiser, Maui County Bureau

WAILUKU, Maui – Makena Resort’s rezoning request won approval from a Maui County Council committee last night, the initial step in what could lead to construction of Maui’s first major resort development in more than 15 years.

Approval by the council’s Planning and Land Use Committee came on a 7-2 vote in the sixth week of deliberations, as extended period that generated 41 conditions designed to temper the impact of construction and address concerns regarding affordable housing, drinking water, beach access, roadways and parks.

Council Members Wayne Nishiki and Jo Anne Johnson voted against the application, saying they still have concerns about the effect on the Makena region….

Nishiki, committee chairman and an outspoken critic of the proposal, said he would reserve his comments for first reading before the council, though he did say he objected to conditions regarding affordable housing and water.

But Johnson offered an impassioned plea, saying a yes vote would indicate that the council was putting the needs of the rich, off-island home buyers above Maui residents.

Johnson said Maui, and Makena in particular, cannot support another resort of this size. She said she can see the island being overdeveloped in a way that occurred in the U.S. Virgin Islands, a place she used to live.

“Ultimately, this is another nail in the coffin in our No. 1 status as a tourist destination,” she said.

“Trust me, people have no idea what’s coming.”…

… Continued at Seibu Group

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March 19, 2004

Seibu Railway Group having legal troubles in Japan

From Maui Tomorrow

Testimony from Sean Lester on
Seibu Corp for Makena Rezoning request

We have all heard by now of the shakeup at Seibu Headquarters. Roy Figueiroa was quoted in the Maui News on Sunday stating that he knew nothing more than what was on the internet, and that it had no bearing whatsoever on the Seibu/Makena project.

I can understand why Roy would say this. You have been dealing with Roy for years, and as you know, all decisions come from the Japanese Corporate headquarters, not from here in Hawaii.

11 people, including 3 Seibu board members have been arrested so far. And it’s still early in the investigation. Arrested, not just accused. For Japanese police to go to the headquarters of one of Japan’s largest corporations and arrest its board members is no small thing.

And who was arrested?

Seiichi Ikura, Senior Managing Director, Seibu Board of Directors

Norhiro Kanno, Head of Public Relations, Board Member

Masaru Kojimo, Head of the Real Estate Division, Board Member

Sadanori Kimura, a senior official of the Real Estate Division

These are not small time employees. They are executives of a corporation whose net assets are estimated at $250 Billion US dollars….

… Continued at Seibu Group

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March 27, 2004

Wahiawa camp fights eviction

By Will Hoover, Honolulu Advertiser

State legislators, city officials and union representatives came together yesterday to pledge their support for a living piece of Hawaii’s plantation history – the 300 residents of Poamoho Camp, who are being evicted from the only home many of them have known.

“I’m 80,” said Teodoro Agduyang, who raised a family and grew old in nearly six decades at the camp.

“I was 22 when I came here. Where would I go if they bulldozed my house? I’ve got no place to go. Under a bridge, maybe.”

About 300 former and current Del Monte pineapple workers who live in 63 homes at the camp near Wahiawa have been ordered to leave by June 30, because the company is not renewing its lease on 2,200 acres owned by the Gailbraith Estate, including the 34 acres on which the homes sit….

The union has met with Del Monte officials and representatives for Galbraith and Bank of Hawaii, the trustee of the estate. Michael Magaoay, D-46th (Kahuku, North Shore, Schofield), said Galbraith Estate and the Bank of Hawaii expressed interest in working with camp residents to reach a solution. But for Del Monte, eviction seems to be a simple business decision, he said.

They should have more aloha,” he said.

In 1984, Del Monte’s plantation lands in and around Poamoho were placed on the national Superfund list because of contamination concerns. The lands were taken off the list in December, Takano said – about the time Del Monte decided to stop farming the property.

More than one person at the rally spoke about the importance of preserving what’s left of Hawaii’s plantation heritage. One of the most rousing speakers was retired labor leader and social worker Ah Quon McElrath, 88.

“We need to be able to fight those with power who would rather that you leave the thing alone,” said McElrath. She said those in power should be forced to say, “We will not leave you homeless to join the other 10,000 homeless people on Oahu.”

After the meeting, Agduyang walked slowly toward his home at 719 Nui Ave., where he and his wife, Carlina, have lived for decades. From the wall of his carport, he took down a long, framed photo shot at the camp on July 4, 1953.

“That’s me,” he said, placing his thumb on the image of a young man near the end of a long line of plantation workers. “I love this photo because it’s a souvenir.”

After June 30, the photo might be one of the few things left to remind him of his life at the camp, he said….

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March 27, 2004

Builder eyes Hawaii Kai farms

By Suzanne Roig, Honolulu Advertiser

A developer wants to build 200 homes on 87 acres of land off Lunalilo Home Road, a proposal that would end more than half a century of farming in the former swamp land that is Hawaii Kai and bring large-scale construction to its last undeveloped valley.

Stanford Carr, the developer of the Peninsula, a 600-unit project under way on the edge of the marina, has approached area City Councilman Charles Djou, chairman of the council’s zoning committee, with a plan to move Kamilonui Valley’s 16 farmers to other communities to make way for his latest brainchild….

… Continued at Stanford Carr Development

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April 18, 2003

6 firms and 2 men fined
for illegal donations

By Rick Daysog, Honolulu Star-Bulletin

The state Campaign Spending Commission has approved more than $62,000 in fines against eight companies and individuals for making excessive political donations to major local Democratic candidates.

By 3-0 vote, the commission approved fines against the engineering and development firms of Fukunaga & Associates Inc., Fujita & Associates, W.A. Hirai & Associates Inc., AM Partners Inc., Stanford Carr Development Corp. and WMO Corp….

… continued at Stanford Carr Development

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February 16, 2004

Makena Resort Fight Flares Anew

By Timothy Hurley, The Honolulu Advertiser

KIHEI, Maui – It’s deja vu for the Makena Resort and its proposal to rezone hundreds of acres for luxury housing and visitor accommodations.

Two years ago, foes waved signs of protest along the highway and the resort’s plan was debated at length before stalling over Maui County Council quorum issues and a shortage of votes.

The proposal comes before the council again next month….

The center of the storm is Makena Resort’s 20-year plan to add some 200 acres of condominiums and apartments surrounding the Makena North and South golf courses, and to designate 28 acres for a hotel or time-share project south of the Maui Prince Hotel….

… Continued at Seibu Group of Japan

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March 25, 2004

The Maui News – Letters to the Editor

Development should really be called corruption

I’m not ready to let Makena Resort off the hook.

“Development” has been happening to these islands since the missionaries. The only good in “development” is to developers. It has no interest for locals living here year-around….

I witnessed the aloha spirit in 1976-79. The Protect Kaho`olawe Ohana in Kona accepted me and took me in. We lived on the pristine beach front at Kukailimoku. There, we had authentic Hawaiian village with many hale, halau, luau, fishing, taro and Hawaiian pumpkin garden. I was young and naive. My Hawaiian friends showed tolerance for me. Then the National Guard came, making everyone leave. Some Hawaiians were arrested for trespassing, while they were on Hawaiian land. It was heartbreakingly unjust.

“Development” anywhere only serves a select few. It should be called “corruption,” for that is what it ultimately leads to.

Only when political leaders see the spiritual side of their responsibility to these islands will any true good come from “development.”

Ellen Garrison

Lahaina

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March 14, 2004

Wake up, Maui – ‘anti-development’ is not a dirty word.

By Lee Cataluna, Honolulu Advertiser

Along vast stretches of the interstate that runs through Oklahoma, you see homestead after homestead with collections of junk in the fenced yards. The homesteads cover several acres, and on those acres are broken tractors, broken trucks, broken barns, broken houses. It’s as if, when something doesn’t work anymore or has aged past the point of viable repair, folks just leave it where it is for the grass and vines to claim it. Then, they build a new barn or a new house or buy a new truck or tractor.

Hawaii isn’t Oklahoma. We don’t have that kind of space to spare.

Amazing how many people don’t seem to see that, though.

Twenty years ago, when Kauai voters overwhelmingly supported the resumption of construction of the controversial resort development at Nukolii beach, much of the rationale was based on concern that the island would otherwise earn the label “anti-development”.

As if that’s a bad thing on a small, beautiful island.

And now, that same tangled thinking is all over Maui’s Makena Resort debate. It’s Nukoli’i all over again, except there’s more money involved, and more acreage.

Never mind that Maui’s water supply is literally almost tapped out. Never mind that Maui’s roads are more congested than the H-1 by Love’s Bakery on a Friday afternoon when there’s an accident and it’s raining. Never mind Maui’s affordable real-estate shortage. Maui’s affordable rental shortage. Maui’s mid-range real-estate shortage and Maui’s growing homeless problem; what that island needs is more time-shares, more condos and more overpriced, overbuilt, money-can’t-buy-taste cribs….

The Nukolii fight raged on for a decade. There were lawsuits and appeals and that 1984 public vote where pro-development forces pooled hundreds of thousands of dollars to advertise and organize and send out absentee ballots. Fishermen stood on the sand at Nukolii and cried and cursed as they saw money win over ‘aina and over good sense.

All that, and for what? The hotel that sits there, which has been the Aston, the Hilton and is now the Radisson Kauai Beach Resort, is a mid-priced hotel on a beach that’s usually too windy. It’s the kind of place you go for award luncheons for nonprofit groups, the kind of place the visiting Oahu high-school team stays in during the tournament.

So what if Maui gets the reputation for being “anti-development”? Being seen as “pro-development” is much more dangerous. The mindset on that island, on all the Hawaiian Islands, has to change from this “build, build, build” madness to something more realistic to sustaining life and lifestyle on an island with limited resources….

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April 4, 2004

Farming Loophole Is Costly

Developers save millions on tax breaks

By Allen G. Breed and Martha Mendoza, Associated Press

Millions of dollars in property tax breaks intended to preserve farmland are going instead to companies that bulldoze farms to build housing subdivisions, malls and industrial parks, an Associated Press investigation has found.

It’s happening from coast to coast, costing local governments badly needed revenue or forcing them to increase the taxes of other property owners. The breaks can be enormous. Without them, land owners would typically pay two to 400 times more in property taxes.

In most states, the tax breaks date back to the 1950s and ‘60s, when lawmakers became alarmed at the rate at which farmland was disappearing under concrete and asphalt.

But loopholes in the laws are producing unintended, though perfectly legal, consequences.

Here’s what happening: A developer buys land with the intention of building on it. During the years when he readies the property for construction – preparing architectural plans, acquiring financing and permits, even building roads and laying water pipe – he runs some cows or cuts some hay. Then he claims the tax break. Because of the loopholes, often a pretense of farming can be enough to qualify.

Usually, the tax break ends only after construction of buildings begins; sometimes, it doesn’t even stop then.

The AP found scores of cases throughout the country – some with “Soon to be the Home Of” signs heralding future malls, industrial parks or housing developments on property receiving tax breaks intended to encourage land preservation.

In Polk County, Iowa, which includes the city of Des Moines, about 10 percent of those claiming farmland tax breaks are actually identified on the tax rolls as developers. Jim Maloney, county assessor, said most of the others are also developers and speculators.

All over the country, local officials offered similar accounts.

“We have a lot of wannabe farmers who are out there trying to farm the system rather than the property,” said Alaska State Assessor Steve Van Sant.

Every state offers some type of tax incentive to protect land from development. In some states, only working farms are eligible. In others, the breaks apply to agricultural land whether it is being farmed or not, and some also include timberland or other open space.

“The whole idea was to encourage people to keep their land in agricultural use,” said Talbot D’Alemberte, who sponsored the law as a member of the Florida state legislature in 1972.

TO DISCOURAGE owners from taking a tax break and then developing their land, some states back-bill landowners at the normal tax rate, sometimes tacking on interest, if they develop the land.

But 20 states, including Florida, don’t back-bill at all. In eight others, back-billing is limited to three years or less of back taxes – but developers and speculators often hold land longer than that before building.

Developers are unapologetic. “The way they tax is what you use it for,” said Bob Schroder, vice president of Arlinghaus Builders. “It’s not who owns it or what you might do with it someday. It’s what you do with it now.”…

Those who benefit from the tax breaks are a large and vocal constituency. In Iowa, they showed up en-masse last year to block the reappointment of a tax assessor who was trying to get tough on agricultural exemptions.

Many farmers’ organizations, whose members truly are farming their land, also oppose reform, fearing tinkering with the laws could cost their members money.

“Change this law?” said John Zimple of Arkansas’ Assessment Coordination Department in Little Rock.

“There probably would be a civil war.” …

~ ~ ~

AND IN OUR 50TH STATE, HAWAII, HERE’S A GLIMPSE OF JUST SOME OF THE BIRDS WHO ARE PAVING PARADISE AND GETTING RICH AT TAXPAYER EXPENSE …


 

Alexander & Baldwin – One of Hawaii’s old “Big Five” corporations.

March 10, 2003

ALEXANDER & BALDWIN INC – FORM 10-K

A&B and its subsidiaries are actively involved in the entire spectrum of land development, including planning, zoning, financing, constructing, purchasing, managing and leasing, and selling and exchanging real property.

… Planning and Zoning

The entitlement process for development of property in Hawaii is both time-consuming and costly, involving numerous State and County regulatory approvals. For example, conversion of an agriculturally-zoned parcel to residential zoning usually requires the following approvals:

– amendment of the County general plan to reflect the desired residential use;

– approval by the State Land Use Commission to reclassify the parcel from the “Agricultural” district to the “Urban” district;

– County approval to rezone the property to the precise residential use desired; and,

– if the parcel is located in the Special Management Area (“SMA”), the granting of an SMA permit by the County.

The entitlement process is complicated by the conditions, restrictions and exactions that are placed on these approvals, including, among others, the construction of infrastructure improvements, payment of impact fees, restrictions on the permitted uses of the land, provision of affordable housing and/or mandatory fee sale of portions of the project.

A&B actively works with regulatory agencies, commissions and legislative bodies at various levels of government to obtain zoning reclassification of land to its highest and best use. A&B designates a parcel as “fully-entitled” or “fully-zoned” when all necessary government land use approvals have been obtained.

As described in more detail below, in 2002, work to obtain entitlements for urban use focused on (i) obtaining Community Plan designations for various A&B lands on Maui, and (ii) obtaining County entitlements for a proposed single-family subdivision and proposed hotel on Maui. The Community Plans serve to guide planning and development activity on Maui. A&B has obtained and continues to seek various urban designations for its undeveloped lands within the four Community Plans where most of its Maui lands are located….

$ $ $

Alexander & Baldwin Officers & Directors

Officers

Charles M. Stockholm

Chairman of the Board, Alexander & Baldwin, Inc.; Chairman of the Board, Matson Navigation Company, Inc.

Allen Doane

President and Chief Executive Officer, Alexander & Baldwin, Inc.; Vice Chairman of the Board, Matson Navigation Company, Inc.

James S. Andrasick

President & Chief Executive Officer, Matson Navigation Company, Inc.

Christopher J. Benjamin

Executive Vice President and Chief Financial Officer, Alexander & Baldwin, Inc.

Norbert M. Buelsing

Executive Vice President (Property Management), A&B Properties, Inc.

Meredith J. Ching

Vice President (Government & Community Relations), Alexander & Baldwin, Inc.

Nelson N.S. Chun

Vice President and General Counsel

Matthew J. Cox

Senior Vice President & Chief Financial Officer, Matson Navigation Company, Inc.

Robert K. Sasaki

President (Properties), A & B Properties, Inc.

Thomas A. Wellman

Vice President, Treasurer and Controller, Alexander & Baldwin, Inc.

Directors

Charles M. Stockholm

Chairman of the Board, Alexander & Baldwin, Inc.; Chairman of the Board, Matson Navigation Company, Inc.; Managing Director, Trust Company of the West (investment management services)

Michael J. Chun

President and Headmaster, The Kamehameha Schools

Allen Doane

President and Chief Executive Officer, Alexander & Baldwin, Inc.

Walter A. Dods, Jr.

Chairman of the Board and Chief Executive Officer, BancWest Corporation; Chairman of the Board and Chief Executive Officer, First Hawaiian Bank

Charles G. King

President, King Auto Center; President, King Windward Nissan

Constance H. Lau

President, Chief Executive Officer and Director, American Savings Bank, F.S.B; Trustee, Kamehameha Schools

Maryanna G. Shaw

Private investor

Jeffrey N. Watanabe

Managing Partner, Watanabe Ing Kawashima & Komeiji LLP (attorneys at law)

~ ~ ~

For more on the issue of WATER RIGHTS FOR THE WEALTHY, GO TO > > > www.the-catbird-seat.net/BlueGold.htm

To join in the ACTION, GO TO > > > www.hi.sierraclub.org/maui/index.html

For more on MATSON, GO TO > > >www.the-catbird-seat.net/EricShine.htm

For much more on A&B, GO TO > > > Alexander & Baldwin


 

Apollo Advisors – Advisors to the gods, they aren’t.

For more, GO TO > > > Apollo


 

Azabu Builders – Japan-based developer.

For more, GO TO > > > Broken Trust; Dirty Money, Dirty Politics & Bishop Estate; Yakuza Doodle Dandies


 

Bert A. Kobayashi – Chairman, Kobayashi Development Group, LLC

October 20, 2002

Meet Hawaii’s Top Ten Power Brokers

Hawaii Business Magazine

Developer Bert A. Kobayashi is a good friend of the governor. He is also the current chair of the University of Hawaii’s Board of Regents and is a board member of numerous other Hawaii community institutions. Kobayashi is a formidable fund raiser, recently chairing the recognition event when First Lady Vicky Cayetano received the 2002 Distinguished Citizen Award from the Aloha Council of the Boy Scouts of America. His community involvement extends to Washington, D.C., where he is a regent of Georgetown University.

“It’s not power that I’m looking for. It’s more like connections, so that I can help other people,” Kobayashi says, “I help myself once and a while, too.”

Today, he estimates that his development projects, under numerous companies, including Kobayashi Development Group LLC, have been grossing about $100 million a year. Some of his more high-profile projects include proposed twin luxury condominium towers (in partnership with Duncan MacNaughton) on land formerly owned by Victoria Ward Ltd., the Kukio Beach Resort on the North Kona Coast of the Big Island, Kapolei Civic Center and Kapolei Middle and High Schools.

Lobbyist Bob Toyofuku says, “I think Bert’s relationship with Gov. Cayetano, especially, and his network of friends throughout Honolulu and outside make him a power person in this state.”…

$ $ $

July 17, 1998

Cayetano pal got $40 million in non-bid work

Critics cry favoritism over contracts for
Bert Kobayashi’s company, but the state
and governor deny any wrongdoing and
point to a mandate to expedite
school construction

By Rob Perez, Star-Bulletin

A company whose financial backer is a close friend and supporter of Gov. Ben Cayetano has received more than $40 million worth of state school contracts since last year without having to compete for the jobs.

State officials say the nonbid contracts were awarded legally, had nothing to do with favoritism toward builder Bert A. Kobayashi and will greatly benefit Kapolei students and parents, bringing two new schools to the area faster than the government otherwise could have done.

The string of exclusive deals started last year when planning and construction contracts worth nearly $37 million for a Kapolei middle school were awarded to a company affiliated with Kobayashi.

The state did not solicit proposals from other bidders before awarding the contracts to Makai Village Partnership in June and November.

Kobayashi, whom Cayetano describes as a dear friend and one of the state’s most honest business people, is chairman of PAB Investment Corp., one of two general partners fro Makai Village.

The state awarded the contracts to help meet a 1996 legislative mandate to expedite school construction in Kapolei, a fast-growing community with only one public school, a severely overcrowded elementary school.

On the day Makai Village broke ground for the middle school, Nov. 14, 1997, it received another contract, again on a noncompetitive basis, to begin the planning process for a Kapolei high school.

Last April, it got another nonbid contract to develop the high school’s design plans, specifications and environmental assessment. The two most recent agreements are worth more than $4 million.

For most major contracts, the state is required to seek competitive bids to try to ensure that taxpayers get the best deals for their money. The idea is that competing companies will bid as low as economically feasible to win the business.

A competitive process also is supposed to prevent selections based on favoritism.

The manner in which Kobayashi’s company got the Kapolei contracts has raised questions of favoritism and fairness, particularly when some contractors are struggling for jobs in Hawaii’s sputtering economy….

Kobayashi’s close ties to Cayetano also have fueled criticism of the deals.

Shortly after Cayetano took office, he nominated Kobayashi to probably the most prestigious state board in the isles: the University of Hawaii Board of Regents.

When President Clinton came to Hawaii in 1996, Kobayashi was among a select group of six people invited to golf with Clinton and the governor.

Giving nonbid work to someone so close creates the appearance of rewards, critics charge….

Cayetano said the contract awards were handled “by the book” and that he had nothing whatsoever to do with them….

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May 14, 2000

Task Force Reviews Bishop’s Loan Of Artifacts

By Robbie Dingeman, Honolulu Advertiser

The Bishop Museum Board of Directors wants changes in museum policy to prevent a repeat of the mistake made with the release of 83 rare Hawaiian artifacts in February.

The release of the objects to one organization triggered a controversy among other groups that also claimed the priceless cultural artifacts.

And there are growing questions about the museum’s treatment of employees who raised the concerns about the issue. One employee was fired, one suspended and the 21 employees who signed a protest letter were reprimanded.

Longtime board member and part-Hawaiian businessman Kenneth Brown said the museum didn’t realize that the issue was “so potentially explosive” until after the loan of a collection from the Kawaihae Caves complex on the Big Island was made to Hui Malama I Na Kupuna O Hawaii Nei….

Stender: avoid repeating mistake

Board member and former Bishop Estate trustee Oswald Stender said the board needs to determine what can be done to avoid repeating the mistake made in releasing the artifacts.

“The process seems to be flawed somehow,” Stender said. “What happened put the museum in a very compromising position and we shouldn’t be in that position….

Redraft of museum policies in works

Board chairman Bert A. Kobayashi said the museum is working to redraft its polities concerning such artifacts as announced by Duckworth last month when the museum acknowledged the mistake and apologized for it….

Stender and Brown both said they are concerned about actions taken against museum employees who criticized the museum’s actions.

Last month, the museum fired public relations manager Nanette Napoleon Purnell, charging that officials lost confidence in her after she expressed strong opinions about the controversy at a staff meeting in March.

Staff that speak out reprimanded

Last week, well-known Bishop Museum archivist DeSoto Brown was suspended without pay for speaking out publicly about the artifact controversy and criticizing the museum’s actions. Both Purnell and DeSoto Brown are authors, respected in their fields and well-known in the community. All the employees who signed the protest letter received reprimand letters and some included language that threatened them with termination for further offenses….

Staff told not to talk to board members

Last week, museum employees received a staff e-mail on a variety of matters that proposed “communications policy should indicate that staff should not contact BPBM (Bernice Pauahi Bishop Museum) Board members directly.”

Stender said he would oppose a policy that keeps employees from contacting board members.

“That was the whole problem with Kamehameha Schools, they tried to stifle communication,” he said.

Stender said he doesn’t see a consensus on what should happen to the artifacts, but he has his opinion: “Personally, I would like to see those things exhibited at the museum for future generations and the world to see.”

Catbird Note: The trustees for Kamehameha Schools are also the same trustees for Bernice Pauahi Bishop Museum.

For more on the Kamehameha Schools/Bishop Estate connections, GO TO > > > Dirty Money, Dirty Politics & Bishop Estate; RICO in Paradise

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January 23, 2002

Firms chosen to bid on medical school job

By Treena Shapiro, Star-Bulletin

A 14-member advisory committee, composed of local business and education leaders, has selected three local and mainland joint venture partnerships to bid on a $100 million to $120 million project to build a medical school campus in Kakaako.

The construction is the first phase of a $300 million effort to build a Health and Wellness Center on land now occupied by the Department of Agriculture’s plant quarantine branch.

Previously a project of this scope would have been sent to the Department of Accounting and General Services.

UH president Evan Dobelle said he was uncomfortable with a lack of process and procedure that has plagued UH construction projects in the past. With a community advisory committee, he hopes to avoid local politics and “to broaden those who get to look at the dollars to get to look at the contracts that are given out.”

“The point of the thing is we need to prove after way too many years that the University of Hawaii can build a project on time and on budget,” Dobelle said.

The bidders are ACK + McCarthy, Hawaiian Dredging/Kajima and Kiewit/DPR. UH Board of Regents Vice Chairman Bert Kobayashi previously held a controlling interest in ACK, but sold the company to employees in 1997.

His only financial interest in the company is a pension plan, said Paul Costello, UH vice president of external affairs. Kobayashi has recused himself from any decision making about Kakaako….

The construction effort will be headed by UH vice president Allan Ah San, to be assisted by Massachusetts-based consultant Jack Bradshaw, a senior management team from the Massachusetts Institute of Technology and a consulting firm hired by Kamehameha Schools, Dobelle said.

For more, GO TO > > > The Firing of Evan Dobelle; Kajima

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January 24, 2002

 

THREE VETERAN BUSINESS AND COMMUNITY LEADERS JOIN AMERICAN SAVINGS BANK BOARD

Three veteran Hawaii business and community leaders have been appointed to the board of directors of American Savings Bank, adding to the diversity and expertise of its existing board. On January 1, 2002, the bank’s board welcomed Barry K. Taniguchi, president and chief executive officer, KTA Super Stores and K. Taniguchi Ltd.; Bert A. Kobayashi, chairman, Kobayashi Development Group LLC; and Richard “Dick” W. Gushman, chairman of the board of trustees of the Estate of James Campbell.

“These three individuals are leaders in their fields, and bring a wealth of business acumen, management experience, and commitment to improving the local community,” said Constance H. Lau, president and chief executive officer of American Savings Bank.

“Each has the integrity and expertise to help guide American Savings Bank as the financial institution Hawaii residents and businesses can count on to support our local businesses and community….”

Bert Kobayashi has 38 years of construction experience, including 30 years as a developer. His projects include some of Hawaii’s major residential, resort, business and community developments such as West Loch Estates, Kapolei Middle Schools, Kapolei High School, Kapolei Civic Center, Napili Villas condominiums, and Kukio Beach Resort residential and golf community in North Kona.

An active member of the community, Kobayashi serves on the boards or committees of the University of Hawaii, Georgetown University, Hawaii Nature Center, Bishop Museum, St. Louis Education Foundation, Mid-Pacific Institute, Kapiolani Health Care Foundation, Kuakini Health System, The Nature Conservancy of Hawaii, Hawaiian Educational Council, The Japan America Society, and Honolulu Zoo Society Capital Campaign Committee.

In addition, Kobayashi is on the advisory boards of the Pacific Air Forces Civilian Advisory Council, Georgetown University Law Center, Georgetown University Business School, St. Francis Hospital Hospice Capital Campaign “A Vision for Dignity.”

His past board involvement includes the Chamber of Commerce of Hawaii, Japanese Chamber of Commerce of Hawaii, Hawaii Visitors and Convention Bureau, Building Industry Association of Hawaii, Aloha United Way, Ronald McDonald House, Child & Family Services, Polynesian Voyaging Society, and March of Dimes Governor’s Ball….

The addition of the three new directors expands the board to 10.

The other directors are Robert F. Clarke, chairman, president and chief executive officer, Hawaiian Electric Industries, Inc. and chairman of the board, American Savings Bank; Jorge Camara, M.D.; Kenton T. Eldridge, business advisor; Louise K.Y. Ing, partner, Alston Hunt Floyd & Ing; Constance H. Lau, president and chief executive officer, American Savings Bank; Diane Plotts, business advisor; and Jeffrey Watanabe, partner, Watanabe, Ing & Kawashima.

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For more on Bert Kobayashi, GO TO > > > Woo vs. Harmon

For more on Constance Lau and Diane Plotts, who are also trustees of Kamehameha Schools, GO TO > > > Dirty Money, Dirty Politics & Bishop Estate

For more on Jeffrey Watanabe, GO TO > > > The Consuelo Zobel Alger Foundation; Harmon’s Letters to Hamilton McCubbin; RICO in Paradise

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February 1, 2002

KG Buys Waikiki Hotel

By Debbie Sokei, Pacific Business News

Ninety-four people laid off following the sale of the Ocean Resort Hotel Waikiki could be able to keep their jobs after the new owner said Friday it was open to such a possibility.

KG Holdings LLC completed its purchase of the hotel this week from Sports Shinko (Waikiki) Corp., the same company it bought three island golf courses from last week.

KG spokeswoman Ruth Ann Becker declined to release the sale price, but said the sale of the 450-room hotel on Paokalani Avenue was finalized Wednesday. Developer Bert A. Kobayashi is the chairman and principle shareholder of KG.

Sports Shinko (Waikiki) Corporation notified the state Department of Labor and Industrial Relations of the sale on Thursday, saying it no longer would operate the hotel and was terminating its 94 employees….

Sports Shinko owns the Queen Kapiolani Hotel in Waikiki. Becker wouldn’t say if KG Holdings would try to acquire that property.

KG last week purchased golf courses on Oahu, Maui and Kauai from Sports Shinko for $12.4 million.

See also: Sports Shinko

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July 19, 2002

Kobayashi elected Chair of the UH Board of Regents

UH News

The University of Hawaii Board of Regents today elected Bert A. Kobayashi to be chair for the next year. … Maui regent Everett R. Dowling was elected vice chair.

Also, two new regents began their terms on the board this month.

Myron A. Yamasato of Kamuela on the Big Island joins the board in the position formerly held by Billy Bergin…. Yamasato is presently vice president for finance with Waikoloa Land Company where he has worked for more than 20 years. He is a Certified Public Accountant who previously served as a consultant to the Hawaii Economic Development Council and with the accounting firm of Touche Ross and Company.

Michael J. Hartley joins the board in the position formerly held by Sharon Weiner, now a member of the Hawaii Tourism Authority. … He is the co-founder of Cheap Tickets, Inc., a distributor of discount leisure travel services that was sold in 2001 to Cendant Corporation….

See also: Apollo Advisors; Azabu Builders; Bishop Estate; Trinity Investment

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February 23, 2004

Manoa Faculty Senate Executive Committee Minutes

Chair’s report…

Tom Schroeder reported that to address the housing shortage for students, the University is investigating the use of at least two hotels: the Ohana Reef Hotel, owned by Peter Savio, and the Queen Kapiolani Hotel, owned by Bert Kobayashi.

Issues of possible conflicts of interest were discussed….

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April 16, 2003

Suit forces sale of golf courses

By Tim Ruel, Star-Bulletin

In a settlement of a civil fraud lawsuit against bankrupt Japanese firm Sports Shinko Co., prominent local developer Bert A. Kobayashi has sold a Kauai golf course and nearby land that he bought from Sports Shinko.

Meanwhile, an investigation continues into the sale of the properties to Kobayashi.

Kobayashi bought the 18-hole Kiahuna Golf Club on Kauai and five development parcels from Sports Shinko in January 2002 for $2.8 million, as part of a package sale of Hawaii real estate. Shortly after, Osaka-based Sports Shinko entered reorganization bankruptcy under pressure from a Japanese debt-collection agency.

Sports Shinko, a golf-course management company, reportedly faced $2.2 billion in debt.

An Oregon businessman, David Resnick, sued Sports Shinko and its Hawaii principal, saying he had a deal to buy the Kiahuna properties for $10 million. Resnick alleged Sports Shinko breached a contract and good faith and committed fraud and negligence. Kobayashi was not named in the lawsuit.

A settlement between Resnick and Sports Shinko was approved in federal court late last year. In keeping with the settlement, Kobayashi sold the properties last week to Resnick for $9.85 million, said Terry Kamen, a Kauai broker who handled the transaction.

Resnick then sold the properties to groups of investors for $11.4 million, taking a $1.55 million gain, said Kamen, a broker with Makai Properties on Kauai.

Resnick, 45, said he kept an interest in one of the development parcels, and he is working on plans for a 280-unit residential project.

Meanwhile, Kejiro Kimura, deputy trustee in Sports Shinko’s bankruptcy proceeding, is seeking information in Hawaii to get a handle on Sports Shinko’s assets.

Shortly before entering bankruptcy last year, Sports Shinko sold Kobayashi the Kauai properties, the Mililani Golf Club on Oahu and the Pukalani Country Club on Maui for a total of $12.4 million. Later, Kobayashi also bought two leasehold hotels in Waikiki for Sports Shinko, the Ocean Resort Hotel Waikiki for $5.5 million, and the Queen Kapiolani Hotel for $3.3 million.

In a court filing, one of Kimura’s local attorneys said Kimura believes there may be claims related to the transfer of Sports Shinko’s assets to Kobayashi’s companies. Kimura is seeking a court order to enforce a subpoena on the law firm of McCorriston Miller Mukai MacKinnon for documents, materials and billing records related to the sales of properties. Kimura attorney Glenn T. Melchinger said the McCorriston firm is withholding information.

The filing points out that Frank Mukai, a McCorriston partner, is a former director of Sports Shinko and was counsel for a Kobayashi company.

The McCorriston firm acknowledged it had helped Sports Shinko sell the Hawaii properties to Kobayashi’s company.

A hearing is scheduled for Monday in U.S. Bankruptcy Court in Honolulu before Judge Robert Faris….

The Kiahuna Golf Club, in Poipu, is now owned by nine investors who live on the golf course. They have plans to improve the links. The owners of the five development parcels have formed a group, Kiahuna Mauka Partners LLC, and are working together on a long-term project for the area, said Resnick.

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August 27, 2002

UH Regents Give Dobelle High Marks

By Beverly Creamer, Honolulu Advertiser

In its first annual review of Evan Dobelle’s performance as president of the University of Hawaii system, the Board of Regents ticked off a string of accomplishments and called his achievements substantial, especially in bringing about “a change in attitude” throughout the system.

“Within a year, campus attitudes have changed remarkably,” said Bert Kobayashi, the new board chairman, who lauded Dobelle’s leadership since he stepped into the Bachman Hall office after six years as president of the elite private Trinity College in Hartford, Conn.

“Progress has been initiated, and a new attitude is prominent throughout the university system,” Kobayashi said in a statement released yesterday that summarized the review, which was not made public in its entirety….

For more on Evan Dobelle, GO TO > > > The Firing of Evan Dobelle

See also: Bishop Estate; Everett Dowling; Jeffrey Stone; Peter Savio; Sports Shinko


 

Bill Mills – Chairman of Bill Mills Development & Investment Company, Inc.; former CEO of Castle & Cooke.

From the Maui Lani website:

The principal partner of Maui Lani is Bill Mills, chairman of Bill Mills Development & Investment Company, Inc.

Mr. Mills is a Hawaii-regional developer and former CEO of Castle & Cooke. Mr. Mills, owns, or has owned, through his various companies, prestigious developments on Maui, Lanai, Hawaii, Oahu, and the mainland. Among them, the Turtle Bay Hilton Golf & Tennis Resort, and the Waikiki Galleria Tower.

Mr. Mills is a well-respected Hawaii businessman. He is a member of the board of directors for Hawaiian Electric Industries, Grace Pacific Corporation, Hawaii Pacific Theatre, and the Historic Hawaii Corporation. He is a Trustee of Hawaii Pacific University, the Nature Conservancy of Hawaii, and St. Andrews Priory School. Mr. Mills is also a member of the board of governors for the Iolani School, and has served as a governor, secretary, and vice-chair of the Hawaii Community Foundation.

The Maui Lani community consists of a number of partners who have combined their knowledge and resources to create a dynamic Central Maui community. Leiane Paci and Dave Gleason are the key local contacts for the development side of Maui Lani….

~ ~ ~

Maui Lani is the first master-planned community on Maui to receive zoning approval under a “project district” ordinance, which provides for a very flexible and creative approach to planning and development.

This has allowed Maui Lani to create unique land plans and subdivision layouts that sets it apart from anything on Maui and are the reason why Maui Lani Homeowners’ Association exists to oversee the implementation and adherence to the project’s design, controls and overall maintenance.

Maui Lani’s highway, water, sewer, and zoning entitlements are in place, and construction of many new amenities is continuous and evolving every day.

< < < FLASHBACK < < <

November 11, 1997

Report rekindles calls
for trustee resignations

Bishop Estate has incurred serious losses,
a master appointed by the court concludes

By Rick Daysog, Honolulu Star-Bulletin

Critics of Kamehameha Schools/Bishop Estate renewed calls for the removal of several trustees after a report concluded that the estate posted $264.1 million in losses and loss reserves in its fiscal year ended June 30, 1994.

In a scathing, 120-page critique of the estate’s investment strategies, the court-appointed master for the estate, attorney Colbert Matsumoto, said the trust’s for-profit subsidiary Pauahi Holdings Inc. suffered losses and write-offs that amount to more than 2 ½ times the $100 million annual operating budget of Kamehameha Schools.

Matsumoto, appointed by the state Probate Court to review the operations of the estate for its 1993-1994 fiscal year, said the trust faces additional “unreported loss exposure” of about $1.9 billion from investments and loan guarantees to third parties.

Matsumoto – who charged that the estate withheld information from him – also said that the trust may be using inflated income figures that boost trustees’ commissions and that the trust may be relying on nonstandard accounting practices that overstate its investment returns….

The master’s report comes as the estate is facing intense scrutiny from federal and state investigators. The Internal Revenue Service is conducting an audit of the estate’s finances and state Attorney General Margery Bronster has opened an investigation into allegations of trustees’ mismanagement.

Bronster, through a spokeswoman, said her agency currently is reviewing the report, which only covers a limited period of the trust’s activity. But she said she found it “appalling” that the estate was holding back information to Matsumoto.

Matsumoto, for one, complained that the trust withheld from him information about some real estate deals such as the lease terms of the Kahala Mandarin Hotel.

He said he was only able to discover the terms after reviewing a Supreme Court decision on a tax appeal filed by WKH Corp., the former owner of the posh hotel.

WKH, headed by William Weinberg, was forced to sell the hotel about four years ago to local developer Bill Mills and Tokyo General Corp. after an arbitration panel increased WKH’s annual lease rent in 1992 from about $96,000 to $5.6 million.

(With the sale to Mills and Tokyo General, the hotel’s lease was restructured so that the current hotel owners now pay a base rent of $1.2 million, plus a percentage of gross income that could yield an additional $4.4 million a year, Matsumoto said.)…

(Catbird note: According to Maui County Real Property Tax Assessment records, the owner of one of the pricey homes on Maui is disbarred attorney Marshall Elliott Lippman. Although the total tax assessment value on the land and home, located at 230 Puumakani St., is $508,600, the curious thing is that there is no indication that Lippman actually PAID anything for the property! Oh, well, probably just an oversight. Or…? )

See also: Bishop Estate; Schuler Homes

For more on Bill Mills, GO TO > > > Woo vs. Harmon: Witness Bill Mills

For more on Marshall Lippman, GO TO > > > Arbitrate This!; Buzzards on the Bar


 

Bishop Estate – The largest private landowner in Hawaii.

November 10, 1997

Profits or the People?

Bishop Estate tried to defeat other Hawaiian interests in the tumult over Waihole Ditch, putting a housing development ahead of taro, stream restoration and cultural renewal in the bid for the life-giving water.

By Ian Y. Lind, Star-Bulletin

“…OHA views the efforts of Bishop Estate in its current water use permit application for water flowing through the Waiahole Ditch as insensitive to the long-term needs of the Hawaiian community, particularly with respect to its argument that is has an ownership interest in the water merely because the water percolates through its property.

“The education of Hawaiian children requires not only that they be provided with classrooms, books, computers and inspirational teachers but also that they be able to live in an environment where the traditions and culture of the Hawaiian community are maintained and where verdant valley and running streams can support taro growing, restoration of fishponds and the gathering of traditional foods from the streams, such as oopu, hihiwai and opae. The short-term payoffs generate by the development of golf courses and suburban residential housing units will in the long run be destructive of those previously enumerated values that are essential to the total educational mission of the Bishop Estate.

“If the Hawaiian people are to survive and build a sovereign Hawaiian nation, they must maintain their ties to their history and culture and to the aina (earth or land) and kai (sea). This would include maintaining subsistence lifestyles in rural Hawaiian communities.”

– Excerpt from an objection to Bishop Estate’s application to the Commission on Water Resource Management for 4.2 million gallons per day of water to support the “Waiawa by Gentry” development, filed by attorneys Jon Van Dyke and Elizabeth Pa Martin, March 1995.

Kamehameha Schools/Bishop Estate was criticized by the Office of Hawaiian Affairs in 1995 for putting land development and short-term profits ahead of cultural survival, according to records of the Commission on Water Resource Management.

OHA attorneys charged that the estate was “insensitive to the long-term needs of the Hawaiian community” during the Waiahole Ditch water case, still awaiting final disposition by the water commission. The estate opposed efforts by other Hawaiian organizations to make more water available for taro growing, stream restoration and cultural renewal in the valleys of windward Oahu.

The criticism highlights the difficulty faced by the estate in reconciling its role as an investor, landowner and developer, with concern for preserving Hawaiian culture.

The water commission has spent more than two years determining the future distribution of Waiahole water, which for most of this century has been diverted to the island’s dry side for irrigation of now-closed sugar plantations.

Bishop Estate argued that enough water should be set aside for a 3,600-acre development planned by the Gentry Companies on estate land in Waiawa. That site on the dry Leeward side is projected to include over 13,000 housing units, 112 acres of commercial-industrial businesses, two golf courses and over seven miles of roadway landscaping, commission records show.

The estate asked for 4.2 million gallons a day of water to be reserved for the development, and said it should be given priority because income from the project will support Kamehameha Schools.

To defend the “Waiawa by Gentry” project, the estate hired lawyers and experts to undermine water claims being made by other Hawaiian groups, including OHA, the Native Hawaiian Advisory Council, Native Hawaiian Legal Corporation, Waiahole-Waikane Community Association and Ka Lahui Hawaii.

These organizations argued that greater water flow in windward streams and increased taro cultivation is critical to preserving Hawaiian culture and strengthening Hawaiian communities, and is essential to traditional and customary practices that Hawaiians have a right to enjoy.

Bishop Estate was the only Hawaiian organization to disagree.

Attorney Paul H. Achitoff of the Earthjustice Legal Defense Fund, which represented four of the windward organizations, estimates that the ester spent well over $1 million and possibly several million on lawyers and expert witnesses.

“They clearly approached the case as if money was no object,” Achitoff said.

“They had more lawyers that any other single party in the case, and would often have two or three lawyers sitting there all day, days and weeks at a time, turning out bills.”

“It’s ironic that while Bishop Estate was wrapping itself in native Hawaiianness at every opportunity, it was going out and hiring so-called experts to testify that streams don’t need to be restored, that we don’t need any more taro, and all because they want to get water from the ditch so Gentry can build its development in Waiawa,” Achitoff said.

The estate’s position in the Waiahole proceedings received little public attention at the time partly because of a reluctance among Hawaiian groups to publicize their differences.

“Many of us were Kamehameha alumni, and it was a hard thing for us to do,” said Elizabeth Pa Martin, executive director and attorney for the Native Hawaiian Advisory Council, which represents OHA in the water commission case.

Working with Martin on the Waiahole case is retired Judge Walter M. Heen, one of the authors of “Broken Trust,” the critical essay published earlier this year in the Star-Bulletin that prompted the attorney general’s investigation of the estate….

Martin said she met with estate trustee Gerard Jervis and attorney Nathan Aipa, and asked them “to fashion something that wouldn’t be so adverse to our position.”…

Counter to Hawaiians?

Jon Matsuoka, a professor of social work at the University of Hawaii, said he has testified in other cases “where Bishop Estate, as a landowner or developer, was a stakeholder on a side that was counter to other Hawaiians who had been adversely affected by development.”

Matsuoka said his studies have identified areas of the state, such as Molokai and Puna on the Big Island, where Hawaiian residents obtain half their food from fishing, hunting, or gathering limu, plants and other edibles.

“It’s a continuum, with not a lot of subsisting out here in urban Oahu, but when you go out to Hawaiian enclaves in the hinterlands, there are a lot of people with that type of relationship with traditional cultural practices and the natural environment,” Matsuoka said.

In those cases, Matsuoka said, “development disrupts those patterns and destroys those vital resources.

“Once the resource is gone, so is the cultural practice.”

 www.starbulletin.com/97/11/10/news/story1.html

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November 10, 1997

Estate claimed powers once held by Hawaii’s monarchs

By Ian Y. Lind, Star-Bulletin

BISHOP ESTATE has inherited the absolute powers once held by Hawaii’s ruling monarchs and should be free to use its land and resources without interference from the state.

This startling claim was among those made by attorneys representing the estate during proceedings in the Waiahole Ditch water case, which is still pending before the Commission on Water Resource Managment.

The estate was not successful in convincing the state commission or other parties in the case.

But the claim is a key example of the estate’s strategy of harnessing growing public and legal recognition of traditional Hawaiian rights to bolster its own power and autonomy.

The argument advanced on the estate’s behalf by the law firm of Dwyer Imanaka Schraff Kudo Meyer & Fujimoto is deceptively simple:

– Kamehameha Schools/Bishop Estate inherited lands once held by Kamehameha the Great.

– The estate “stands in the shoes of Bernice Pauahi Bishop” and is therefore entitled to exercise the same power that she and her ancestor, Kamehameha the Great, wielded over their lands.

– Quoting from a 1902 Hawaii Supreme Court decision, estate attorneys sought to convey the extent of the alii’s powers: “Kamehameha I, by right of conquest, became lord paramount of these islands. He was an absolute monarch. His will was law. He was the lord of life and death. He was unrestrained by any constitution. He was owner of all the land in the kingdom, whether under the sea or above it.”

– Since recent Hawaii Supreme Court decisions have recognized traditional and customary land rights of native Hawaiian tenants, “then logically to the same extent, if not more, the trust of Bernice Pauahi the legacy of the Kamehamehas, must be entitled to those traditional and customary prerogatives enjoyed by the Kamehameha alii,” Bishop Estate argued.

In legal responses filed with the water commission last year, the attorney general’s office said the claim “continues to stretch credibility.”

And the Earthjustice Legal Defense Fund, which represents the Waiahole-Waikane Community Association and other groups, dismissed it as “bizarre” and without supporting evidence.

Then-Deputy Attorney General Rich Eichor told the commission that Bishop Estate is not a descendant of the Kamehamehas.

“KSBE is an entity known as a ‘trust.’ A trust is a legal creation designed by lawyers for the purpose of managing property. A trust is not the legal descendant of anyone,” Eichor wrote in opposition to the claim.

Eichor also pointed out that provisions of the state Constitution were intended to protect the rights of native Hawaiian tenants who were displaced by a landlord, such as Bishop Estate, and were not meant to bolster the power of landowners.

Ironically, Eichor recently resigned from the attorney general’s office and joined the law firm headed by former Attorney General Warren Price, which now counts Bishop Estate among its clients….

For more on Warren Price, GO TO > > > Buzzards of Paradise; Claims By Harmon; The Firing of Evan Dobelle; RICO in Paradise

* * *

March, 1992

Bishop Estate Logging Destroys Endangered Vetch

© 1992 Environment Hawaii, Inc.

Volume 2 Number 9 (March 1992)

The following letter has been sent to Daniel Bent, the U.S. Attorney in Honolulu. Environment Hawaii was provided a copy by the author. It has been slightly edited for style and length.

Recently, I learned that the U.S. Fish & Wildlife Service has obtained information concerning knowing and continuing violations of the Endangered Species Act on the Big Island of Hawaii. While your office should consult with FWS for details, I understand that by virtue of their commercial logging activities, the trustees of the Bishop Estate have taken and continue to take the endangered plant Hawaiian vetch (Vicia menziesii) at Keauhou Ranch, a 23,000-acre ranch near Hilo….

FWS lists Hawaiian vetch as endangered which, by operation of law, is endangered under the laws of the state of Hawaii.

Commercial logging activities at Keauhou Ranch that uproot, destroy or injure endangered plants are a violation of state and federal law. The trustees could apply for an incidental taking permit under §10 of the ESA that might allow them to continue to engage in commercial logging activities, but I understand that they have not done so.

Keauhou Ranch also provides habitat for several endangered forest birds, including the Hawaii creeper (Oreomystis mana), the ‘akiapola`au (Hemignathus munroi), the ‘akepa (Loxops coccineus coccineus), and possibly the very rare ‘o`u (Psittirostra psittacea). At upper elevations the ranch contains scrub habitat essential to the nene (Nesochen sandvichensis).

Your investigation of this matter should encompass possible takings of these species. The logging of trees that contain active nests of these endangered species would surely kill young birds and eggs and possibly adults.

The fact that logging uproots, destroys or injures endangered plants and therefore violates the ESA has not escaped the trustees’ notice. The trustees, among others, attempted but failed to persuade the Hawaii State Legislature to amend the state of Hawaii’s endangered species act during 1991 to exclude activities such as commercial logging.

The trustees have not been “blind-sided” by the ESA. To the contrary, the trustees know the requirements of the ESA and the state act, are aware of the potential civil and criminal penalties, and have elected to scoff at the law.

Hawaii is considered by many to be this nation’s capital of endangered species. The U.S. Attorney’s office in Hawaii has on occasion prosecuted violations of the ESA. For example, in a widely reported case a few years ago, an indigent man was convicted of violating the ESA when he killed an endangered monk seal on Kauai. I understand that the trustees are among the most wealthy and powerful people in the state of Hawaii. They award themselves annual fees of up to $1 million. The trustees have friends among those who hold the highest state and federal offices in Hawaii. I hope that the U.S. Attorney’s office extends the enforcement of federal environmental laws such as the ESA beyond indigents to include even wealthy and politically powerful individuals. I would note that both Senators Akaka and Inouye, who receive generous political contributions from the trustees, voted to extend the ESA’s protection to plants.

I have been concerned for some time that FWS’ timid enforcement of the ESA in Hawaii runs counter to administration policy. My impression that the federal government pulls it punches in Hawaii is corroborated by an article that appeared in a publication by the American Bar Association’s Section on Natural Resources, Energy, and Environmental Law. It states that FWS recently wrote to city and county officials in California that they would violate the Endangered Species Act and be subject to its civil and criminal penalties if they were to allow development within the habitats of listed species.

FWS has sent no such letters to members of the State of Hawaii Land Use Commission or the State of Hawaii Board of Land and Natural Resources. This is curious, since both Hawaii and California are administered by the identical FWS regional office in Portland. Moreover, more than half of the privately held conservation land in Hawaii is owned by only ten landowners. A cost-effective means of helping to ensure compliance with the ESA in Hawaii would be to send advisory letters setting forth the civil and criminal penalties of the ESA to major landowners in Hawaii.

– Craig S. Harrison, Attorney, Washington, D.C.

Editor’s note: The Fish and Wildlife Service at one time had hoped to purchase at least portions of the Keauhou Ranch for wildlife conservation purposes. However, the trustees “have decided not to have further discussion regarding the acquisition or use” of the ranch or another area under consideration, the so-called Kilauea Forest, according to a letter January 16, 1992, from the regional director of the Fish and Wildlife Service to the International Council for Bird Preservation.

Quoting further from that letter: “While the Estate has hinted that sweeping land use reforms, including koa reforestation in large tracts of the Estate’s Hawaii lands, are forthcoming, we have seen no evidence that suggests the Estate intends to protect endangered species and essential habitats.

“The Service’s objective for these lands remains unchanged, that is, the establishment of a national wildlife refuge to conserve the genetic diversity of native Hawaiian forest birds and plants. In light of the lack of progress through open talks with the Estate, we have embarked upon a different course of action which we hope will ultimately lead to the same objective. A revised final environmental assessment which identifies acquisition of both Kilauea Forest and Keauhou Ranch as the preferred alternative is being prepared and will be published this spring. The Service has briefed the Chairperson of the State Board of Land Natural Resources of our intentions and of our concern for the continuing unauthorized incidental taking of endangered Vicia plants at Keauhou by commercial logging activities.”

Environment Hawaii at http://www.environment-hawaii.org/392bish.htm

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For much more on Kamehameha Schools/Bishop Estate, GO TO > > >

Dirty Money, Dirty Politics & Bishop Estate

Part I; Part II; Part III; Part IV

Claims By Harmon

Rico in Paradise

The Harmon Arbitration

Vampires on Gilligan’s Island

~ ~ ~


 

Brewer Environmental Industries – Former subsidiary of Hawaii’s oldest Big Five company, C. Brewer & Company.

November 26, 1999

Officials assess massive acid spill

By Karen Blakeman, Honolulu Advertiser

Thirty tons of sulfuric acid leaked from three tanks at a C. Brewer Ltd. Co. facility in Campbell Industrial Park yesterday, spilling into a culvert containing chlorine bleach and creating a toxic cloud of chlorine gas.

The cloud drifted out to sea and no one – including the three workers on duty at Brewer at the time of the spill – was injured, said Capt. Richard Soo, Honolulu Fire Department spokesman. Brewer is a chemical supplier and storage company.

Officials with the state Department of Health were concerned about the possibility of contamination to drinking water supplies, as well as hazards to birds and plants along the shore, Soo said.

The spill was the largest hazardous materials incident ever encountered by local teams, he said….

A Campbell Industrial Park directory listed the site of the spill as belonging to Brewer Environmental Services, which is a division of Brewer Environmental Industries, a subsidiary of C. Brewer Ltd. Co.

The sulfuric acid and chlorine bleach were both on the Brewer property, but the fire department was not notified of the leak by the company. Workers from the nearby Chevron plant called emergency crews after noticing the distinctive rotten-egg odor created by the gas.

There was no shutoff valve on the tanks to control the leak, which after the initial dump, continued to pour sulfuric acid into the culvert at a gallon per minute….

The toxic gas was being blown out to sea by winds. Homes in nearby communities were not evacuated. Some fishermen were asked to leave the shore.

“We were lucky,” Soo said.

* * *

November 27, 1999

Sulfuric acid leak was not Brewer’s first

There was a similar leak in 1994, and earlier this year, the company was fined for improper storage of hazardous waste

By Lori Tighe and Harold Morse, Star-Bulletin

Brewer Environmental Industries – whose tank spilled some 35 tons of sulfuric acid at Campbell Industrial Park on Thanksgiving – had a similar acid leak in 1994, according to a state official.

Brewer cleaned up the earlier sulfuric acid spill without the state’s intervention, Gary Gill, state deputy director for environmental health, said today.

Stephen Knox, president of Brewer Environmental, acknowledged that “there was another leak” in 1994 but said it happened before he began working for the company.

The Environmental Protection Agency also fined the company $250,000 this year as part of a settlement for improperly storing hazardous waste at its warehouse at 311 Pacific St. in Iwilei.

The past record of chemical accidents “certainly” concerns the state, Gill said….

The state expected the sulfuric acid to be cleaned up today, Gill said. Workers from a private company, Pacific Environmental Corp., were still neutralizing the acid before it could be pumped into containers….

The state Health Department took over the cleanup yesterday when officials discovered Brewer planned to leave the acid in puddles to evaporate over the weekend.

“It’s apparently past practice for them, but it’s completely inadequate,” Gill said.

Knox said leaving the acid to evaporate is one way to remove the acid.

But in this case, he agreed with the state to pump it up and allow the state to take over the cleanup process….

* * *

November 30, 1999

Brewer president vows to address
residents’ acid-spill concerns

By Lori Tighe, Star-Bulletin

Brewer Environmental Industries President Stephen Knox says “it’s been rough” since the Thanksgiving Day acid spill.

The angry and frightened Kapolei residents around Campbell Industrial Park, where the accident took place, “have a right to be concerned,” Knox said. “We will address their concerns.”…

Brewer began generating a written report on all the known facts relating to the accident, which it will release to the state, said Helen Mary Wessell, the Campbell Industrial compliance coordinator who works as a liaison between the park, the community and the state.

“As far as how the spill was handled, it was fine. How Brewer handled it, I don’t believe was real fine.”

The state criticized the company for its delay in discovering the leak, and for doing nothing to the spill other than letting it evaporate. The state took over the cleanup Friday….

* * *

September 27, 2001

Brewer to pay $236,000 in environmental fines

Honolulu Star-Bulletin

Brewer Environmental Industries will pay almost $236,000 to all four counties, according to the U.S. Environmental Protection Agency. The EPA says the fines are for violations resulting from a 1999 sulfuric acid spill on Oahu and facility inspections on Maui, Kauai and Hilo.

The EPA alleges that Brewer failed to immediately notify the National Response Center on November 25, 1999, after about 70,000 pounds of sulfuric acid were released at Campbell Industrial Park.

< < < FLASHBACK < < <

June 1996

Pineapple’s Lasting Legacy: The Poisoned Wells of Maui

Environment Hawaii

In June 1979, John Mink, a hydrologist under contract to Maui Land & Pineapple Company, conducted a series of water quality tests. The U.S. Environmental Protection agency had asked for the tests to determine if a chemical used to control nematodes in Hawaiian pineapple fields was migrating to the water table, as has occurred elsewhere in the United States.

Mink tested 10 sites, selected because of their proximity to pineapple fields where the chemical dibromochloropropane (or DHCP) had been used. DBCP turned up in five of the 10 sites, at levels ranging from .26 parts per billion, at a spring in Honolua, to 2.23 ppb at Pauwela. At springs feeding into Makilo gulch, DBCP concentrations were as high as 1.7 ppb….

More than a year later, people who had been drinking water from the Makilo spring learned of the contamination and were understandably upset. When David Williams, agricultural research director for ML&P, was asked why residents in the area were not informed, he was reported by The Honolulu Advertiser to have responded: “Why should we tell anyone we were testing anyway? The information was published with the EPA. We can’t go around looking for every backwoods person who doesn’t know what they are talking about. I tell you nobody drinks that water.”

But at least three families living in Maliko Gulch were drinking it – and using it to irrigate truck crops and water livestock.

In 1977, California banned all further uses of DBCP, citing concerns over health effects on exposed workers. DBCP was known to cause cancers in test animals and was suspected of causing cancers in humans. In addition, workers exposed to DBCP were now experiencing reduced fertility and lower sperm counts. Shortly after California implemented its ban, the EPA announced a schedule for phasing out most uses of the pesticide. Only in Hawaii, as a result of special pleadings by the Hawaii pineapple plantations and the highest officials in state government, would use of DBCP be allowed to the extent past 1981….

The County Sues

Maui County is not the only area where DBCP has turned up in drinking water sources. DBCP-contaminated wells have turned up throughout the central plain on Oahu and at Moloaa, on Kauai….

Starting in the early 1980s, several California cities and towns whose municipal water supplies were contaminated with DBCP brought suit against the manufacturers and distributors of the chemical, including Dow Chemical Co., Shell Oil Co., Occidental Chemical Co., and Amvac Chemical Corp. Most sought recovery of their past and future costs of bringing the water up to drinking-water standards.

Litigation in California dragged out for more that a decade, but starting in the 1990s, city after city entered into settlement agreements with the chemical makers. One of the largest settlement packages – $32 million in cash, plus a contract, valued at $70 million, for payment of 90 percent of water treatment costs for the next 40 years – came six months into the trial of the complaint brought against the manufacturers by the city of Fresno….

According to Duane Miller, lead attorney for the city of Fresno, the chemical manufacturers were aware of DBCP’s potential to contaminate water long before it actually turned up in water supplies. In fact, he said, evidence showed they had discovered DBCP in well water long before August 1977, when California authorities first detected it….

The outcome of the Fresno litigation appears to have been the inspiration for a lawsuit filed by Maui County against DBCP manufacturers just last month over the contamination of the Napili well. The lawsuit was filed on May 3, 1996, two years after the Napili well was forced to close. Named as defendants are manufacturers Shell, Dow, Occidental and Amvac, and Brewer Environmental Industry, Inc., which sold DBCP in Hawaii.

According to Corporation Counsel J.P. Schmidt, the suit was filed before the county had the opportunity to do extensive research, since the county felt that, under one theory of law, it was up against the two-year statute of limitations. Customarily, a party has two years from the time of the discovery of a “wrongful act” to file suit. If, however, the contamination is regarded as a “continuing nuisance,” the statute of limitations is a little more liberal, Schmidt said….

www.environment-hawaii.org/696cov.htm

~ ~ ~

See also: Maui Land & Pineapple

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October 15, 2001

Brewer Environmental sells some assets

By Ben DiPietro, Pacific Business News

Selected assets of Brewer Environmental Industries LLC are being sold to a local investor group that includes two current Brewer executives, the company says Monday.

Phoenix V Investors is buying the distribution and environmental services division and will operate them as BEI Hawaii, company spokesman Doug Carlson says….

Richard Hill is the CEO of the new company and Marc Tilker is chief financial officer. Both presently are executives of Brewer Environmental Services. The other investors are Marvin Tilker, Marc Tilker’s father; Richard Ing, owner of New City Nissan; and attorney Robert Katz, Carlson says.

Brewer Environmental Industries will continue to operate HT&T Co., Hilo Coast Power Co., Food Quality Labs and the company’s construction services division. Stephen Knox will continue as the company’s president.

See also: C. Brewer & Company

For more on Robert Katz: RICO in Paradise; The Harmon Arbitration


 

C. Brewer & Company – Founded in 1826; one of Hawaii’s original Big Five companies, specializing in sugar, ranching, and chemicals.

See also: Brewer Environmental Industries; C. Brewer Homes


 

C. Brewer Homes – Former subsidiary of C. Brewer & Company.

August, 1997

Planning Director Initiates Zone Changes To Expedite Approvals for Private Owners

Environment Hawaii, Vol. 8, No. 7

The administration of Big Island Mayor Steve Yamashiro has embarked on a series of zone changes whose primary beneficiaries are private landowners….

On August 1, 1996, Planning Director Goldstein initiated a petition to place 14.7 acres of land in Wainaku, just north of Hilo, into the Urban state land use district. The land owned by C. Brewer subsidiary Mauna Kea Agribusiness Co., Inc., was at the time in the state Agriculture district. Simultaneously, Goldstein initiated an application to change the county zoning on the land from Ag-20 (calling for a minimum size of 20 acres for conforming lots) to RS-15 (allowing residential lot sizes of a minimum of 15,000 square feet each).

William K. Tallet, president of Mauna Kea Agribusiness and senior vice president of C. Brewer and Co., Ltd., had authorized Goldstein to make the application in a letter dated July 30.

On August 2, 1996, James Leonard, managing director of the consulting firm PBR – whose clients include C. Brewer – delivered to the county Planning Department a package containing all the information needed for processing the applications….

The same day, a check for $1,000 from C. Brewer Homes, Inc. – another Brewer subsidiary – was delivered to the Committee to Elect Stephen K. Yamashiro, who was in a tight race to win the Democratic Party’s mayoral nomination. Altogether, Brewer Homes contributed $2,500 to the campaign.

A political action committee made up of Brewer employees contributed $2,000 more….

For the full article, GO TO > > > www.environment-hawaii.org/897planning.htm

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November 7, 1997

Mauna Loa acquiring C. Brewer Homes

Changes in the tax law mean
the combination will save them money

By Russ Lynch, Star-Bulletin

In a deal that will substantially cut the taxes they pay, Mauna Loa Macadamia Partners L.P., plans to acquire C. Brewer Homes Inc. through an exchange of stock.

Shareholders of C. Brewer Homes will get two-thirds of a share of the nut company, technically called Class A partnership units, for each Homes share.

The surviving entity will be a partnership called Hawaii Land and Farming Co. Stock of Brewer Homes will disappear for the market once the deal, subject to a number of regulatory and shareholder approvals, is complete….

Both were once subsidiaries of C. Brewer & Co., one of Hawaii’s original sugar companies, which is now mostly in diversified agriculture and farm products….

Behind the deal is a federal law passed this year, the Tax Relief Act of 1997, which allows Mauna Loa to extend its partnership status indefinitely. As a result, it will pay a 3.5 percent tax on its partnership gross revenue instead of a corporate tax rate of 35 percent on profits, said Kent Lucien, president of Mauna Loa.

Bringing Brewer Homes into the partnership applies the same tax rule to the home building operation. “That’s why we’re doing it,” Lucien said. “Congress changed the law and allowed us to continue as a partnership.”.

The law is already showing its benefits to the nut company. Mauna Loa was able to eliminate most of its deferred tax liability, resulting in a gain of $13.8 million in its 1997 third quarter….

Lucien said the 1997 law allows the nut company, the world’s biggest macadamia producer with more than 4,000 acres of land on the Big Island, to acquire the homes company and apply the lower partnership tax rate….

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May 17, 2004

From Hawaii Business Magazine:

SCD International, LLC

SCD International is a Honolulu-based development firm with award-winning communities spanning the state of Hawaii. Founded in 1990, SCD develops residential communities, commercial projects and special needs housing that strive to provide long-term value and have earned strong market acceptance…

The firm’s recent acquisition of Hawaii Land & Farming, formally C. Brewer Homes, Inc., has added to its development plans Kehalani, one of the largest master-planned residential communities in Maui. Presently, final site planning and design for the undeveloped 2,100 residential units is underway, and the first community, Olena, a 65-unit single-family residential subdivision, has commenced construction….

Born and raised on Maui, SCD President Stanford Carr’s experience has evolved through his more than 24 years in the construction industry….

See also: Stanford Carr Development


 

Christopher Hemmeter – One of Hawaii’s largest developers of luxury hotels, prior to declaring bankruptcy.

For more, GO TO > > > Predators in Paradise


 

Everett Dowling – Big Maui developer.

December 5, 2003

Maui runoff to sea being investigated

by Christie Wilson, Honolulu Advertiser

WAILUKU, Maui – State and county officials are investigating whether muddy runoff from a luxury housing project dirtied the ocean off Palauea Beach in Wailea this week.

Everett Dowling, developer of the One Palauea Bay project, said yesterday that the storm runoff came down a natural drainageway from higher up the slopes of Haleakala and wasn’t from the shoreline construction site. The 44-acre project included 17 homes and homesites priced at $1.4 million and up.

The Sierra Club’s Hawaii Chapter said the developer was to blame for a muddy stream that flowed down the drainageway adjacent to the project and emptied into the ocean.

Mike Tsuji, enforcement section supervisor at the Department of Health’s Clean Water Branch, said he was waiting for a staff report before deciding whether any action is warranted.

County Public Works Director Gil Agaran said his staff is investigating the runoff, as well as reports of runoff into the ocean at Kalepolepo in Kihei and from Dowling’s Kulamalu subdivision in Upcountry Maui….

Sierra Club official Laura Hokunani Edmunds said that even if the runoff originated upslope, One Palauea Bay contributed to the problem by not containing the dirt on its site….

Edmunds is coordinator of the Sierra Club’s Blue Water Campaign, launched this year to protect coastal waters from runoff and pollution caused by development.

In addition to the 17 homesites, the 44-acre One Palauea Bay site contains a heaiau and other significant Hawaiian sites. Dowling, a former University of Hawaii regent, and Goodfellow donated almost half the property to UH as an archaeological preserve for research and education.

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July 11, 2003

Regents weigh ethics on Maui project

by Leila Fujimoto

Maui developer Everett Dowling’s proposal to build a research center for the University of Hawaii continued to raise conflict-of-interest concerns yesterday, despite his resignation from the Board of Regents last week.

UH interim regent Ted Hong said after a regents meeting that he planned to look into whether Dowling would be violating ethics regulations on doing business with the state even after leaving the board.

The regents will vote on the proposal to purchase Dowling’s land and develop the UH Institute for Astronomy’s Advanced Technology Research Center on the slopes of Haleakala, which the board’s committee on finance and facilities unanimously recommended yesterday.

Dowling resigned July 3 after allegations of conflicts of interest arose from a proposed deal that would have the institute purchase more than two acres of his property and build new offices and a base laboratory facility….

UH legal counsel Walter Kirimitsu said after the meeting yesterday that despite Dowling’s resignation, he should not be involved in any direct communication in working with the university or on the project. Kirimitsu said that Dowling cannot use any inside information he gained as a regent to his personal advantage.

However, Kirimitsu said that the Dowling company that was formed just for the project, Kualmalu Science, could be allowed to proceed with a deal.

During yesterday’s committee meeting, Hong questioned how much the university had researched other possible sites.

Callejo said it was Dowling who approached the institute’s former assistant director, Larry Sakima, in 2001 about his parcel.

Sakima told the Star-Bulletin in May that he had been looking for a site in 2001 when Dowling, then a board vice chairman, mentioned at a regents meeting that he had commercial property in Kula that was available.

Dowling later recused himself from any regents discussion on the deal, and the state Ethics Commission ruled a year ago that there would be no conflict of interest if Dowling withdrew from all discussions and decisions involving the project….

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September 18, 2003

Kula Community Association Response to Upcountry Town Center Revised Draft Environmental Impact Statement

To:     Jeffrey H. Overton, Chief Environmental Planner
Group 70 International, Inc.
925 Bethel Street, 5th Floor
Honolulu, HI 96813-4307

Dear Mr. Overton:

Subject: Upcountry Town Center (UTC) Revised Draft Environmental Impact Statement (R-DEIS)

The Kula Community Association (KCA) Board of Directors met on September 9, 2003 to discuss the Upcountry Town Center DEIS. The KCA Board wishes to place on the official DEIS record the following general comments, specific comments, and recommendations. We expect that the Final EIS will address both our concerns and questions. Furthermore, we ask that the Land Use Commission, Office of Environmental Quality Control, and the Maui County Planning Department and Planning Commission seriously consider the issues which we raise.

General Comments

A. We request that the Final EIS reflect and respect the thought that went into developing the Makawao-Pukalani-Kula Community Plan adopted as an ordinance in July, 1996….

The Citizen Advisory Committee, Maui Planning Department, Maui Planning Commission, and the County Council all confirmed the community’s wish to leave this area in agriculture. Now, only seven years since the Community Plan was adopted, Maui Land and Pine (ML&P) is again proposing to re-designate their 40-acre parcel at the Pukalani Triangle. The Final EIS should explain what is significantly different now from when the Community Plan was adopted as an ordinance.

B. The DEIS fails to include a realistic discussion of the existence and effects of the large Kulamalu commercial, senior housing, and park development. This is the “Town Center” proposed in the Community Plan…. If the DEIS had accurately described the scale of the Kulamalu project, we believe that a very different and more accurate DEIS would have been produced….

The DEIS … indicates Competitive Floor Space for the nearby Kulamalu commercial development at only 54,000 square feet. Our discussions with the developer, Everett Dowling, indicate plans for considerably more floor space. Please confirm the DEIS estimate with the Kulamalu developer and, if necessary, provide a recalculation and re-analysis within the Market Study.

C. In 2002, in response to the original DEIS, the Kula Community Association wrote a long letter to GROUP 70 INTERNATIONAL, INC. with many concerns about the UTC. Unfortunately, the reply by GROUP 70 was inadequate, vague and incomplete….

Specific Concerns and Questions

1. The scale of this UTC project concerns us. According to Appendix B, Page 13, there will be a total built-up area of 328,600 sq. ft. in retail, office, and light-industrial uses, PLUS 150 dwelling units!! What will be the effect on the rural atmosphere of the region from that urban-size development with many visitor-oriented retail shops and restaurants?….

4. There is a long-standing list of upcountry residents … who are awaiting water meters. Will this UTC project jump ahead of all those patient residents anticipating their meter? If not, is it appropriate to reclassify and zone the land-use prior to the existing residents getting their meters? What if there is not enough water?

5. Given the shortage of water in Upcountry Maui, what will be the effect of ML&P drilling for water in close proximity to sites where the County of Maui Department of Water Supply plans to drill?

6. As irrigated farmland, the proposed UTC has the highest possible agricultural land rating “A”. … ML&P has prematurely and voluntarily ceased farming this pineapple land in anticipation of receiving land use reclassification to urban use.

The Kula Community Association is concerned; our State Constitution is concerned, and our State Land Use Commission should be concerned, that this valuable resource will be lost forever from the State’s prime agricultural lands inventory….

8. Given the large built-up area … traffic impacts are a major potential problem….

a) School Traffic: There is a need to accurately calculate the traffic flows to the new, nearby Kamehameha School which will soon have an enrollment of 1200+ students, many of whom will drive…. 

11. Appendix L relating to soil contamination is especially worrisome. The high levels of toxins … in the “Corn Meal Camp” area … should have alerted the applicant to the absolute necessity of surveying other soil samples of the 40+ acre site. There will be children on the property, not to mention the several families living above the light industrial workshops…

12. A hand written “motion” was submitted to indicate the support of the Pukalani Community Association “subject to issues raised by the community”. We wish to point out that only 18 individuals signed the “motion” which was hastily drawn up at the meeting. … We note two unusual aspects of the “motion”. None of the longstanding PCA leadership (Aric Nakashima, Barbara Luke, Edith Don) have signed it; and three of the signatures are from employees of the applicant (ML&P executives, Donna Clayton, Doug Schenk & Paul Meyers). Others may also be ML&P employees….

Recommendations

Until the impacts of the Kulamalu build-out are accurately ascertained, the KCA Board of Directors requests the UTC project be delayed…

The EIS should not try to justify the UTC project on the premise that this agricultural site is a mere remnant of ML&P’s pineapple operations and is therefore unsuitable for agricultural use. … When the Pukalani Bypass was built, the State of Hawaii (we taxpayers) paid Maui Land and Pine a significant amount (reported to be over $4,000,000) because of ML&P’s reduced ability to farm the proposed UTC site.

Now that the Pukulani Bypass is completed, ML&P wants to use the highway to justify the land use change….

<<< FLASHBACK <<<

June 2, 1998

Souki made $100,000 on Bishop Deal

The House Speaker was a developer’s consultant in an estate land purchase

By Rick Daysog, Honolulu Star-Bulletin

House Speaker Joe Souki was paid more than $100,000 on a $5.8 million land deal involving the Bishop Estate.

Critics of the estate cited Souki’s involvement as an example of conflict of interest in recent legislation affecting the estate.

Souki (D, Maalea) earned the fees as consultant to Maui developer Everett Dowling, whose Kulamalu Limited Partnership sold the estate a 100-acre parcel in Pukalani in December 1996.

Dowling today said Souki was not the deal’s broker but provided general advice on the transaction.

The estate is in the process of building its permanent Maui campus on the Pukalani property….

Neither Souki nor a Bishop Estate spokesman was available for comment this morning.

But in a financial disclosure form filed with the state Ethics Commission last week, Souki reported income of $150,000 to $200,000 from his real estate brokerage firm….

The disclosure comes as state Attorney General Margery Bronster is investigating allegations of financial mismanagement and breaches of fiduciary duties by Bishop Estate trustees.

The state declined to say whether it is investigating the Maui transaction but Bronster today wondered whether the deal serves the best interests of beneficiaries.

“We question whether the trustees have the children’s best interest in mind when they enter into transactions resulting in large payments to legislators,” Bronster said.

As House speaker, Souki led opposition to a controversial bill aimed at limiting compensation paid to trustees of the Bishop Estate and other charitable trusts. After failing on an initial vote, public pressure prompted the House to pass the proposal….

Desmond Byrne, chairman of the citizen’s watchdog group Common Cause Hawaii, said that Souki’s fee from the Maui deal raises the question of whether the estate was channeling funds indirectly to Souki through its real estate transactions….

Sources say Souki is a long-time friend of Bishop Estate trustee Lokelani Lindsey, who had served as the lead trustee for Kamehameha Schools’ education programs.

But Dowling said that all negotiations were conducted with estate executive and former state Budget Director Yukio Takemoto.

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June 10, 1998

Editorial, Honolulu Star-Bulletin:

Appointment ties Cayetano to developer

GOVERNOR Cayetano finds himself in an awkward situation in the wake of the disclosure that Maui developer Everett Dowling paid House Speaker Joe Souki $132,000 as a so-called consultant’s fee for his role in the sale of Maui land to the Bishop Estate. The payment was made public after the legislative session, in which Souki tried to kill a bill that would limit the compensation of Bishop Estate trustees. The disclosure raised the issue of conflict of interest.

Last April, before the controversy over the land sale surfaced, Cayetano appointed Dowling to the University of Hawaii Board of Regents. At the time, no questions were raised, but now some are. Asked Monday about the appointment, the governor said it was “appropriate and proper.” But he added, “Whether it has a bad appearance or not, I’m not certain. That’s for others to say.”

We’d say it looks bad.

It turns out that in addition to the payment to Souki and a $42,000 payment to Sen. Joe Tanaka in connection with the same land sale, Dowling and his wife contributed $10,000 to Cayetano’s campaign last year and smaller amounts to Souki’s and Tanaka’s campaigns.

Yet Cayetano said the money had nothing to do with Dowling’s appointment as a regent.

Really?…

See also: Bert Kobayashi

For more, GO TO > > > Dirty Money, Dirty Politics & Bishop Estate; Predators in Paradise


 

Gensiro Kawamoto – Japanese Billionaire real estate developer.

For more, GO TO > > > How to Pluck a Billionaire


 

Grand Wailea Resort & Spa – A grand place to get your buns burned.

November 9, 2001

Paul Hazen Named To KSL Recreation
Board of Directors

The Timeshare Beat

LA QUINTA, CA – KSL Recreation Corp. yesterday announced that Paul Hazen has been appointed to its Board of Directors.

Headquartered in La Quinta, KSL owns and operates a portfolio of seven of America’s top luxury destination resorts.

Mike Shannon, chairman and CEO of KSL Recreation Corp., commented, “I am very pleased to announce Paul Hazen’s election to our Board of Directors. … His extensive banking and real estate background supports KSL’s long-term strategic vision to continue to expand its portfolio of luxury resort properties.

Hazen is the former chairman and CEO of Wells Fargo & Co. Currently, he also serves as a senior advisor to Kohlberg Kravis Roberts & Co, as chairman of Accel-KKR, deputy chairman and director of Vodafone Plc., and a director of Safeway Inc., Phelps Dodge Corp., E-piphant Inc., Xstrata AG, and Willis Group Ltd….

KSL Recreation Corp. is the La Quinta, California-based owner and operator of La Quinta Resort and Club, and PGA WEST in La Quinta; Arizona Biltmore Resort & Spa in Phoenix; The Claremont Resort & Spa; Miami’s Doral Golf Resort and Spa; Grand Traverse Resort and Spa; Maui’s Grand Wailea Resort Hotel & Spa; and Greater Atlanta’s Lake Lanier Islands Resort….

For more, GO TO > > > Dirty Gold in Goldman Sachs; The Willis Group


 

Grove Farm – Property in Kauai, Hawaii, purchased by AOL founder Steve Case.

Dec. 3, 2005

Case sued over purchase
of Grove Farm

Shareholders claim Steve Case had insider information
that helped him buy the company

By Stewart Yerton, Honolulu Star-Bulletin

Steve Case, the Honolulu native who created and once ran the world’s largest media conglomerate, has been sued by former shareholders of a Kauai company that Case acquired in 2000.

The former shareholders of Grove Farm Co. Inc. allege that Case engaged in insider trading while negotiating the acquisition of privately held Grove Farm for $26 million, or $152 a share. The suit alleges that Case acted on information provided to him by his father, Dan, whose law firm, Case Bigelow & Lombardi, served as counsel to Grove Farm at the time of the acquisition.

The suit, filed this week in U.S. District Court in Honolulu, alleges that the elder Case represented his son during the acquisition and made information available to the younger Case that was not available to other parties interested in buying Grove Farm, a large Kauai landowner. The suit further alleges that shareholders were kept in the dark about information that was given to Case by his father and his father’s law partners, who were representing the seller at the time.

Although the suit alleges misdeeds by several people, including Dan Case and former Grove Farm executives, the only defendant named is Steve Case, who according to Forbes magazine is one of the richest men in the United States.

The suit alleges that Steve Case and companies affiliated with him were enriched by $750 million as a result of the alleged illegal trading. The suit alleges that the plaintiffs were damaged by the same amount, each in proportion to the amount of stock the plaintiff owned. The suit names 25 plaintiffs.

Steve Case could not be reached for comment yesterday at the offices of his Washington, D.C., company, Revolution Health Group. Dan Case was not available for comment. John McDermott, the attorney for the plaintiffs in Honolulu, referred queries to Matthew Simmons, a lawyer in Bethesda, Md., who did not return calls.

The 63-page complaint offers a detailed narrative of alleged events surrounding the deal. The complaint portrays Steve Case as the ultimate insider whose connections in Honolulu’s insular business community allowed him to get information about Grove Farm that was unavailable to others and was the only bidder with a real opportunity.

The co-founder of America Online, Case went on to create the world’s largest media company by engineering the $106 billion acquisition of Time Warner Inc. in 2001. As chairman of AOL Time Warner, Case oversaw a media empire that included Time Inc. magazines, CNN and Warner Brothers studios.

Case stepped down as chairman in 2003 and resigned from the board earlier this year.

A prominent corporate lawyer, Dan Case is on the board of directors of Oahu Publications Inc., which publishes the Honolulu Star-Bulletin. Case also is a minority shareholder of Oahu Publications.

Grove Farm is a Kauai landowner and real estate development company whose assets at the time of the sale included the Kukui Grove Center, Kauai’s only regional shopping center. The company sold the center this year to undisclosed investors for an undisclosed amount.

The suit presents dozens of pieces of information that the plaintiffs allege were kept from them by management, but given to Steve Case. These include financial data, such as cash-flow estimates, proposed lease arrangements, property appraisals and terms of Grove Farm’s bank debt that made its obligations less onerous than they appeared.

The suit also alleges that management told shareholders the company’s financial condition was worse than it actually was to convince them to sell to Case.

The suit is the second shareholder action filed concerning the Grove Farm sale. In a previous suit filed in Hawaii Circuit Court in 2000, plaintiff Michael Sheehan alleged Grove Farm and its management violated fiduciary duties to shareholders by omitting information from shareholders and selling the company for less than it was worth. That suit was dismissed in December 2002.

http://starbulletin.com/2005/12/03/business/story03.html


 

Herbert Horita – Major Hawaii developer; an original partner in Ko Olina, along with Japanese developer Takeshi Sekiguchi.

April 26, 2003

Royal Kunia Developer Files for Bankruptcy

Horita’s Halekua Development Corp.
owes the city $220,335

By Tim Ruel, Honolulu Star-Bulletin

A Herbert Horita company that is developing Royal Kunia on Oahu sought Chapter 11 bankruptcy protection yesterday, owing between $50 million and $100 million in estimated debt.

One of Halekua Development Corp’s larger creditors is the city, which is owed $220,335.

“This action is needed to buy time for the company,” said company spokesman Jim Boersema. Halekua expects to emerge from bankruptcy within 120 days, clear off its debt and move forward with the development of Royal Kunia II, a 2,000-home subdivision in Waipahu, Boersema said….

Halekua’s assets are worth less than $50,000, according to the bankruptcy filing.

According to the bankruptcy petition, Halekua’s five biggest unsecured creditors are:

Ayers Corp., owed $1.4 million.

Park Engineering, $702,082.

Larry Mehau’s Hawaii Protective Association, $415,126.

AFW, $350,000.

Stubenberg & Durrett, attorneys, $276,515.

Other creditors are a unit of the Harry & Jeanette Weinberg Foundation, the now-defunct Oahu Construction Co. and former City Councilman Jon Yoshimura.

Another Horita company, Royal Kunia Apartments Inc., declared bankruptcy in 1999 and sold off three townhome projects on 27 acres for $30 million.

Horita was the original developer of Ko Olina Resort and Marina in Leeward Oahu, envisioning a string of hotels, condominiums and golf courses, but plans fizzled when Japanese backers withdrew funding in the late 1980s.

Halekua owes a total of $5 million to its 20 largest unsecured creditors.

Steven Guttman, Halekua’s bankruptcy attorney, could not be reached for comment yesterday.

Because of Halekua’s bankruptcy filing, the state Land Use Commission proposed a hearing in which Halekua was to argue why it should be allowed to keep 503 acres of undeveloped former agriculture land in Waikele classified as urban district. 

As a condition of the rezoning, Halekua was to have developed infrastructure for an agricultural park and conveyed that park to the state by December of 1999. Since the developer had failed to comply with that requirement, the state Office of Planning had petitioned to have the land revert to an agriculture classification.

For more, GO TO > > > The Grand (and dirty) Ko Olina


 

Jeffrey Stone – Co-developer of Ko`Olina, along with ex-brother-in-law of Kamehameha Schools/Bishop Estate trustee, Dickie Wong.

See also: Seibu Group of Japan

For more, GO TO > > > Apollo Advisors; The Blackstone Group; Claims By Harmon; Dirty Money, Dirty Politics & Bishop Estate; Predators in Paradise; The Grand (and dirty) Ko Olina; RICO in Paradise; The Weinberg Foundation


 

Maui Land & Pineapple Co. – Old-kine, big-kine, politicking-kine developer.

April 22, 2004

State land swap called a bad deal

A Maui firm wants to trade
industrial lots in Waipahu for
state agricultural land

By Nelson Daranciang, Star-Bulletin

Some lawmakers say the state is making a bad deal in giving up 226 acres of agricultural land in Kapalua for 1.4 acres of industrial property in Waipahu.

Maui Land & Pineapple Co. wants to include the state land in an expansion of its luxury Kapalua Resort development. The state land is a narrow strip in the middle of the company’s property.

In exchange the state would get three vacant lots, totaling 1.4 acres, in the Mill Town Center industrial park in Waipahu that Maui Land & Pine will purchase from Alexander & Baldwin for the exchange.

Rep. Alex Sonson (D., Pearl City-Waipahu) said he thinks Maui Land & Pine is getting the better end of the deal.

“Much better, a lot better,” he said.

He said the Maui land is undervalued while the Waipahu property is overvalued.

According to land appraisals by Medusky & Co., the Kapalua land, which is mostly gulch, is worth $1.5 million, while the Waipahu property is worth $1.6 million.

Sonson said the appraisal does not consider how much the property will appreciate because of the Kapalua project. Maui Land & Pine leases the land for $6,060 a year to grow pineapple. It is asking the state Land Use Commission to reclassify 60 acres of the state property from agriculture to urban in anticipation of the exchange.

The state is expecting annual lease rents from the Waipahu property of $98,400 to $131,200. Sonson said there is a lack of Mill Town Center tenants….

The state Board of Land & Natural Resources agreed in principle to the Kapalua land exchange in October.

According to state law, the state can complete the deal after it is reviewed by the Legislature. Lawmakers can reject the exchange with a two-thirds vote in either house of the Legislature or by a majority vote in both houses.

Because of concerns expressed by Sonson and other lawmakers, the House Water, Land Use and Hawaiian Affairs Committee recommended passage of resolutions prohibiting the construction of homes on the upper portion of the state land and limiting the lower portion to park and open space.

If Maui Land & Pine wants to remove the restrictions, it must pay the state the added value of the land, under the resolution.

The House approved two resolutions, State Concurrent Resolution 9, HI1, and House Resolution 157, HD1, asking the state to include the conditions in the agreement.

Dede Mamiya, Land Division administrator in the Department of Land & Natural Resources, said the state would add the restrictions to the exchange deed.

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The September, 2003 issue of Hawaii Business has an article on Hawaii’s 20 wealthiest landowners. The article states that Kamehameha Schools is Number 1, and is the state’s largest private landowner by far, today holding more than 366,000 acres on five islands.

The article goes on to state that probably the most recent kamaaina landowner of consequence is AOL-Time Warner’s Stephen Case (No. 17).

According to Hawaii Business, “A Punahou School graduate and benefactor, Case has also placed a sizeable statewide footprint down through his 1999 purchase of a 41 percent minority interest in Maui Land and Pine (AMEX; MLP), and his more recent acquisition of Grove Farm and Lihue Plantation.

“Hawaii Business accorded Case a 41.4 percent share of the assessed value of MLP’s 41.4 percent share of the assessed value of MLP’s holdings, which gave him almost 12,000 acres on Maui and more than 40,000 Kauai acres for a total value of $300 million….”

< < < FLASHBACK < < <

June 1996

Pineapple’s Lasting Legacy: The Poisoned Wells of Maui

Environment Hawaii

In June 1979, John Mink, a hydrologist under contract to Maui Land & Pineapple Company, conducted a series of water quality tests. The U.S. Environmental Protection agency had asked for the tests to determine if a chemical used to control nematodes in Hawaiian pineapple fields was migrating to the water table, as has occurred elsewhere in the United States.

Mink tested 10 sites, selected because of their proximity to pineapple fields where the chemical dibromochloropropane (or DHCP) had been used. DBCP turned up in five of the 10 sites, at levels ranging from .26 parts per billion, at a spring in Honolua, to 2.23 ppb at Pauwela. At springs feeding into Makilo gulch, DBCP concentrations were as high as 1.7 ppb….

More than a year later, people who had been drinking water from the Makilo spring learned of the contamination and were understandably upset. When David Williams, agricultural research director for ML&P, was asked why residents in the area were not informed, he was reported by The Honolulu Advertiser to have responded: “Why should we tell anyone we were testing anyway? The information was published with the EPA. We can’t go around looking for every backwoods person who doesn’t know what they are talking about. I tell you nobody drinks that water.”

But at least three families living in Maliko Gulch were drinking it – and using it to irrigate truck crops and water livestock.

In 1977, California banned all further uses of DBCP, citing concerns over health effects on exposed workers. DBCP was known to cause cancers in test animals and was suspected of causing cancers in humans. In addition, workers exposed to DBCP were now experiencing reduced fertility and lower sperm counts. Shortly after California implemented its ban, the EPA announced a schedule for phasing out most uses of the pesticide. Only in Hawaii, as a result of special pleadings by the Hawaii pineapple plantations and the highest officials in state government, would use of DBCP be allowed to the extent past 1981….

Only on Maui

Dole had stopped using it on Oahu in the late 1970s, and in 1981, announced it would suspend use of DBCP on Lanai. Del Monte had never used much DBCP on Oahu to start with, and had stopped using it on Molokai fields in the 1970s.

That left Maui Land & Pine as pretty much the sole user affected when in January 1981, a settlement was reached on an appeal of the EPA’s ban on DBCP. Manufacturers agreed to withdraw requests for registration of DBCP for use on other crops, while pineapple growers in Hawaii agreed to accept new safety regulations on DBCP use in the islands, including a requirement that field workers wear full-body protective gear and that application occur at least 270 days before harvest.

EPA Administrator Douglas Costle approved the settlement, overriding the recommendations of an administrative judge within his own agency. DBCP, Costle found, “does not result in unreasonable adverse effects to man or the environment,” as used in Hawaii….

Faced with growing evidence of water contamination, in January 1985, the EPA ordered Maui Land & Pine to stop its use of DBCP within two years….

The Last Holdout

Within a month of the order, Maui Land & Pine had requested approval for use of DBCP on 2,100 acres – even though news reports at the time said the company’s existing inventory of DBCP would have allowed treatment of just 450 acres. According to a report by Barbara Hastings in The Honolulu Advertiser of March 2, 1985, Joseph Hartley, company president at the time, “said the EPA wants his company to use up not only what it has of DBCP, but also any remaining stocks on the Mainland….

A public meeting on the plan was scheduled to be held in Kahului on March 20. Five days before, newspapers across the state reported additional well contaminants had been found in two Maui wells. Tests at the Old Maui High School, shut down as a water source two years earlier because of DBCP concentrations at both sites remained significant …

The hearing lasted more than seven hours, with most of the speakers testifying in fervent opposition to continued use of DBCP. One of the few testifying in support was Douglas MacCluer, plantation manager for Maui Land & Pine. According to the Star-Bulletin of March 21, 1985, MacCluer “noted that after over 25 years of DBCP use, no residues from the chemical found in any municipal water supply have ever been attributed to the company’s farming operation.”

Officers of the company also made the argument that using up Mainland supplies of DBCP on Maui fields was the environmentally safest way to dispose of existing stocks – an argument that left many Maui residents complaining that their island was to become the dumping ground for a chemical deemed too dangerous for use elsewhere in the United States….

A Time Bomb

While use of DBCP on Maui effectively ended in 1984, tons of the chemical remain in the soil. According to studies done at the University of Hawaii Water Resource Research Center, DBCP and EDB can and do work their way through the topsoil, through the underlying basalt, and into the freshwater lenses that serve as drinking water sources….

On Maui, groundwater contamination was known to exist at the Old Maui High School site, at Maliko Gulch springs, and at Pauwela – all in east Maui – and at Honolua, along the west Maui coast. Since none of the sources was used for drinking water, no official concern was raised over the degree of contamination – nor does it appear as though water quality was monitored on a regular basis. … Throughout the 1980s, Maui drinking-water wells, tested every four years, remained clean….

All that changed in February 1992, when DBCP turned up in a well at Napili that supplied the Maui County water system’s service to Napili and parts of Lahaina. Initial concentrations of DBCP were scored at 100 parts per trillion, while tests over the next year showed concentrations as high as 360 ppt – nearly 10 times the state maximum contaminant level. Nearby wells used by Amfac to supply resorts, condominiums, and houses at Kaanapali also showed high levels of DBCP (up to 210 ppt)….

The County Sues

Maui County is not the only area where DBCP has turned up in drinking water sources. DBCP-contaminated wells have turned up throughout the central plain on Oahu and at Moloaa, on Kauai….

Starting in the early 1980s, several California cities and towns whose municipal water supplies were contaminated with DBCP brought suit against the manufacturers and distributors of the chemical, including Dow Chemical Co., Shell Oil Co., Occidental Chemical Co., and Amvac Chemical Corp. Most sought recovery of their past and future costs of bringing the water up to drinking-water standards.

Litigation in California dragged out for more that a decade, but starting in the 1990s, city after city entered into settlement agreements with the chemical makers. One of the largest settlement packages – $32 million in cash, plus a contract, valued at $70 million, for payment of 90 percent of water treatment costs for the next 40 years – came six months into the trial of the complaint brought against the manufacturers by the city of Fresno….

According to Duane Miller, lead attorney for the city of Fresno, the chemical manufacturers were aware of DBCP’s potential to contaminate water long before it actually turned up in water supplies. In fact, he said, evidence showed they had discovered DBCP in well water long before August 1977, when California authorities first detected it.

“They were aware of scientific studies showing that the chemical didn’t break down and would migrate in the soil,” Miller said, but did not provide this information to the EPA, even when the federal government specifically requested it in 1970.

The outcome of the Fresno litigation appears to have been the inspiration for a lawsuit filed by Maui County against DBCP manufacturers just last month over the contamination of the Napili well. The lawsuit was filed on May 3, 1996, two years after the Napili well was forced to close. Named as defendants are manufacturers Shell, Dow, Occidental and Amvac, and Brewer Environmental Industry, Inc., which sold DBCP in Hawaii.

According to Corporation Counsel J.P. Schmidt, the suit was filed before the county had the opportunity to do extensive research, since the county felt that, under one theory of law, it was up against the two-year statute of limitations. Customarily, a party has two years from the time of the discovery of a “wrongful act” to file suit. If, however, the contamination is regarded as a “continuing nuisance,” the statute of limitations is a little more liberal, Schmidt said. In any event, the county acted when it did to protect its legal interest under the more conservative reading of the statute of limitations, he said.

Maui Land & Pine is not named as a defendant in the county’s lawsuit. Always in the past, users of agricultural chemicals have been regarded as legally untouchable, so long as they applied and disposed of those chemicals in accordance with EPA-approved label instructions.

If the county discovers that Maui Land & Pine used the chemical in a manner not sanctioned by the EPA, however, the county could still add the company as a defendant, Schmidt said.

www.environment-hawaii.org/696cov.htm

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December 30, 2004

Maui L&P CEO gets $4 million in shares.

By Sean Hao, Honolulu Advertiser

Maui Land & Pineapple Co. issued 100,000 shares in the name of president and CEO David Cole this week, and Cole said he has no intention of selling the stock.

Under terms of Cole’s contract most of those shares are restricted and cannot be sold, Cole said yesterday. However, Maui Land & Pine was required to register the securities – worth nearly $4 million – with the Securities and Exchange Commission.

“That’s just a requirement under my employment contract,” said Cole, who became CEO of Maui Land & Pine on Oct. 15, 2003.

“I have no plan to sell any of those shares at the present time. I just got here.

Those shares, along with options to acquire an added 200,000 shares, become vested over a four-year period that extends through 2007. The amounts and timing vary depending on whether the company meets certain performance benchmarks.

Maui Land & Pine has undergone management changes over the past year. It has expanded it board of directors, announced Kapalua Resort plans and progressed toward expanding fresh pineapple sales.

Its stock has risen 42 percent from $27.60 when Cole became chief executive to yesterday’s closing price of $39.31 on the American Stock Exchange. That equates to about an $85 million increase in the value of the company’s outstanding shares.

For more, GO TO > > > Dirty Money, Dirty Politics & Bishop Estate – Part IV


 

Mitsui & Co. – A leading trading house in Japan, which financed a number of major real estate developments in Hawaii during the “boom years”.

September 3, 2002

Top brass at Mitsui quit over tender scandals

Mainichi Shimbun

The president and the chairman of Mitsui & Co. stepped down from their respective posts Tuesday to take responsibility over a series of scandals that tarnished the reputation of the leading trading house.

The resignations of President Shinjiro Shimizu and Chairman Shigeji Ueshima will be approved at an emergency executive board meeting to be held on Wednesday.

Ueshima is also expected to give up his vice-chairman post at the Japan Business Federation (Keidanren). Executive Director Shoei Utsuda is set to replace Shimizu as president.

Mitsui & Co. is accused of obstructing a tender for government-funded aid projects on the Russian-held island of Kunashiri and in Mongolia.

Two Mitsui employees have been charged with obstructing the tender for the Kunashiri project. They also reportedly played a significant role in rigging the Mongolian tenders.

Mitsui made successful bids for two contracts for the construction of diesel power stations in Mongolia in 2001 at unusually high prices. In both cases, the Mitsui bids were almost exactly equal to the secret estimates of the Foreign Ministry.

The top trading house later admitted that its employees bribed Mongolian high officials in order to help their project in the central Asian country.

See also: Jeffrey Stone

For more, GO TO > > > Apollo Advisors; The Blackstone Group; Claims By Harmon; Dirty Money, Dirty Politics & Bishop Estate; RICO in Paradise; Yakuza Doodle Dandies


 

National Housing Corporation – Ohio-based corporation. Co-developer of Ko`Olina.

See also: Jeffrey Stone

For more, GO TO > > > Claims By Harmon; Dirty Money, Dirty Politics & Bishop Estate; The Grand (and dirty) Ko Olina; Predators in Paradise; RICO in Paradise


 

Nippon Shinpan Co.– A major Japanese consumer credit company, mired in major racketeering scandals.

November 19, 2002

Nicos failed to sever ‘sokaiya’ ties

The Japan Times

Nippon Shinpan Co., mired in allegations that its executives paid off a racketeer to expedite proceedings at the firm’s general shareholders’ meetings, had failed to sever ties with a number of racketeers in the late 1980s, a former company executive said Monday.

The major Japanese consumer credit company had ties with about 20 “sokaiya” corporate extortionists around that time, prior to signing a “fictitious contract” with racketeer Kikuo Kondo, 60, to make him an “adviser” to the firm, the former executive told Kyodo News.

Kondo was arrested Saturday, along with eight officials of Nippon Shinpan, popularly known as Nicos. The company’s officials allegedly gave 28 million yen in cash to the racketeer in violation of the Commercial Code….

Around 1987, Nippon Shinpan, heeding external advice, went through the motions of cutting ties with all of the racketeers with whom it was associated, but then re-established relations with them after several months because they continued to harass and threaten company officials….

* * *

November 20, 2002

Nicos president quits consumer credit group

The Japan Times

Yoji Yamada, president of Nippon Shinpan Co., resigned Tuesday as chairman of the Japan Federation of Consumer Credit Companies to take responsibility for a racketeer-related scandal at his company….

Nippon Shinpan is popularly known as Nicos.

The scandal left Yamada, who became the federation’s chairman in June 2001, with no choice but to resign. On Monday, he also resigned from the board of the Japan Business Federation (Nippon Keidanren).

Eight Nippon Shinpan officials were arrested Saturday on suspicion of giving 28 million yen in cash to a “sokaiya” corporate extortionist between November 1999 and September this year….

See also: Jeffrey Stone

For more on “sokaiya”, GO TO > > > Yakuza Doodle Dandies


 

Oaktree Capital – More to come.

See also: Bill Mills


 

Parker Ranch – Located on the Big Island of Hawaii, 150-year old Parker Ranch is one of the largest ranches in the United States, encompassing about 175,000 acres. It’s operations include commercial leasing, tourist and other real-estate operations.

May 14, 2004

Parker Ranch announces CEO resigning

By Kevin Dayton, Honolulu Advertiser

HILO, Hawaii – David A. Houle, president and chief executive officer of Parker Ranch Inc., is resigning effective June 30, citing health reasons, the ranch announced yesterday….

Houle joined the ranch in March 2002. Previously, he was chief financial officer at Bank of Hawaii’s parent company, where he had worked since 1992 directing the management of treasury, investor relations, mergers and acquisitions, accounting and planning….

Houle has guided the ranch at a time when managers sought to shift the balance of Parker Ranch Foundation Trust assets away from land and into other kinds of investments. Of a $350 million asset base, Houle estimated late last year that $300 million to $315 million was in land owned by the ranching operations.

The ranch has sold off some land, and a major new land sale may be on the horizon. The U.S. Army proposed buying 23,000 acres of ranch land near the Pohakuloa Training Area as a maneuver area fro the wheeled, armored Stryker combat vehicle, but the ranch has not yet agreed to the sale….

The ranch is owned by the Parker Ranch Foundation Trust for the benefit of four local charities, which are the North Hawaii Community Hospital, Parker School Trust Corp., Hawaii Preparatory Academy and Richard Smart Fund administered by the Hawaii Community Foundation.

As of the end of 2003, Parker Ranch Foundation Trust had cumulatively distributed a total of $4,026,585 in cash and land to its beneficiaries.

“We are extremely grateful for the leadership that Dave Houle has provided to the ranch,” said Tom Whittemore, chairman of Parker Ranch Inc.”….


 

Peter Savio – Honolulu-based real estate broker, whose firm, Savio Realty, was selected by Kamehameha Schools to handle the estate’s vast residential condominium leasehold-to-fee conversions, worth millions in commissions.

~ ~ ~

From Washington on $10 Million a Day :

Lobbyists and Nuclear Visigoths

Big money corporate lobbyists don’t always win their battles, but when they are defeated it’s rarely because Congress or the White House rises to defend the public interest. More likely, the scheme being advanced was so loopy that even official Washington was too embarrassed to take up the cause.

That’s the case with a multi-billion plot put together by a cabal of beltway con men who hoped to dump tons of nuclear waste on a Pacific island.

Despite having been defeated, the would-be scheme is noteworthy in showing that well-connected capital honchos and aggressive lobbying can keep even the nuttiest projects in play. . . . The corporate vehicle for the plan is U.S. Fuel and Security Inc. (USF&S), a Washington-based firm. . . .

USF&S had an easy time lining up money and influence peddlers to back its plan. Finding a dump site proved more difficult. Like a crew of punch drunk sailors lost at sea, Murphy & Co have desperately scouted the horizon for a Pacific Island where they can come aground. (Alex) Copson explained to me that the Pacific was chosen because it lies between Russia and the U.S., and because it is littered with “useless dots of real estate.”

As he sees it, sacrificing a “tiny piece of bullshit in the Pacific” is a small price to pay in order to avoid the doomsday scenario of nuclear annihilation….

USF&S first approached the Marshall Islands . . . Another possibility explored by USF&S was Midway Island . . . The next port of call was Palmyra, a tiny atoll about 1,000 miles south of Hawaii which is owned by the Fullard-Leo family of Honolulu but administered by the Dept of the Interior. USF&S drew up plans that showed that all the world’s spent fuel could fit in the atoll’s 5,400-acre lagoon, which would be filled with cement to prevent leakage.

Peter Savio, the Fullard-Leo’s Honolulu-based real estate broker, said a Wall Street firm headed by Kirch, KVR, agreed to pay “in excess of $40 million” for Palmyra. “The buyers claimed they were interested in building a hotel and also mentioned plans for some sort of scientific research,” he said. “They never discussed using the island as a nuclear waste site.”

Once again, strong opposition to the plan arose when word leaked out about Murphy & Co’s true intentions. … Hawaii’s congressional delegation soon entered the fray, with all six members signing a letter to President Clinton in June of 1996 urging him to oppose the project. . . .

The death knell for the Palmyra plan came in August, when the White House sent Senator Akaka a letter promising that the Administration would “strongly oppose” the USF&S proposal. KVR then decided not to buy Palmyra, costing Kirch’s firm what Savio termed a “substantial deposit.”

Copson was as bitter about this setback as he was about the unraveling of the Marshalls plan. During our conversation he called Senator Akaka an “ignorant lightweight.” McGarey, the senator’s aide, would “realize the error of his ways when terrorists set off a bomb in Tel Aviv.”

For more, GO TO > > > Broken Trust

* * *

Honolulu Star-Bulletin, 12/13/00: Savio to Buy Waikiki Hotel . . . Developer Peter Savio is buying the Diamond Head Beach Hotel in Waikiki and plans to resell its units individually, a deal that could lead to fee-simple conversion of the leasehold property.

Savio signed a contract this weekend to buy the 59-unit condominium building at 2947 Kalakaua Ave for just under the asking price of $5.5 million. The seller, Sports Shinko of Japan, had bought the hotel for $13.5 million in 1990, according to state records….

The Gold Coast beachfront land under the hotel is held by the trust of Jeanne Chan, which does not want to sell the fee interest voluntarily, Savio said…

* * *

From Honolulu Star-Bulletin, Feb 5, 2001: Hawaii developer Savio files for Chapter 11He says an eviction notice from Central Pacific Bank to move out of his Realty office prompted the action.

Developer Peter Savio says he blames Central Pacific Bank for causing him to file personal bankruptcy by demanding that Savio Realty Ltd. move out of its Moilili offices by this Friday.

“I’m absolutely shocked that a local lender would act this way,” said Savio, who filed Chapter 11 reorganization bankruptcy on Friday afternoon.

The petition lists 20 unsecured creditors with total claims of $45.6 million, mainly comprising personal guarantees of loans borrowed by Savio Development Co., which also filed Chapter 11 last year. Personal debts were a small factor in the latest petition, which was filed jointly by Savio and spouse Phyllis Savio.

Central Pacific Bank, Hawaii’s fourth largest bank, is one of Savio’s smaller creditors in the personal bankruptcy, with $1.6 million owed. The largest creditor is Dallas-based Beal Bank, which is owed $20 million linked to Savio’s Queen Emma Gardens project on Nuuanu Avenue. Savio said today most of the creditors were close to being paid off and that Savio Development could have emerged from bankruptcy within a month.

Late last week, Central Pacific Bank gave him final notice to move Savio Realty out of its offices in University Plaza out in five days. The bank previously acquired the offices in a loan workout for Savio Development. . . .

Central Pacific Bank declined comment today, citing its practice of keeping client issues confidential. . . .

Savio is also said he is proceeding with his bid to buy 17,780 acres of former sugar land from Kauai landowner Amfac/JMB Hawaii LLC. Amfac listed the acreage for $26 million in September and announced plans to close two sugar mills and lay off 400 employees. Savio said he has three letters of interest from lenders who want to participate in a deal for the property. They are aware of Friday’s bankruptcy filing, he said.

Savio is known for having converted several thousand leasehold apartments to fee-simple condominiums since 1981, many in connection with Kamehameha Schools.

* * *

Honolulu Advertiser, 08/27/01: Developer on a buying spree . . . Savio hoping to rebound after bankruptcy – Hawaii developer Peter Savio is on an invigorated mission to rebuild his development company following bankruptcy, having recently made what he said are offers to buy more than $1 billion of real estate.

“I am on a buying spree, and I am looking for more acquisitions,” the residential developer said late last week.

Savio has made a business out of buying leasehold apartment rental buildings and reselling units as fee-simple condos at below-market prices….

The developer is doing business under Hawaiian Island Development Co. Inc., which he formed in April after initiating bankruptcy liquidation of Savio Development Co.

Savio’s financial troubles stemmed from loans the company made to help buyers purchase units in the early to mid-1990s. About 100 to 150 loans went bad, and defaults by customers led to Savio Development defaulting on loans with its lenders.

To protect other assets from one lender that Savio called unreasonable, he also placed into Chapter 7 liquidation his holding company, Savio Inc., and filed for personal Chapter 11 bankruptcy reorganization. . . .

The developer said the bankruptcies have not hurt his ability to raise money for properties he wants to buy.

The properties Savio has under contract are being purchased with local and Mainland partners and financed by Mainland lenders who Savio has declined to identify….

See also: Bert Kobayashi; Bishop Estate


 

Schuler Homes – A Honolulu-based developer, now a unit of Texas-based D.R. Horton Co.

May 11, 2004

Schuler buys land for 290 Maui homes

By Andrew Gomes, Honolulu Advertiser

Schuler Homes has bought a 20-acre piece of undeveloped land at the master-planned residential community Maui Lani, doubling its development plans at the Kahului project.

The Honolulu company, a unit of Texas-based D.R. Horton Co., bought the parcel for an undisclosed price from Maui Lani Partners LLC, a company headed by local developer Bill Mills.

Schuler plans to build about 290 single-family homes on the site. The company anticipates sales to begin early next year, with the first homes delivered around September 2005. Prices are expected to start in the $300,000s and $400,000s for two product types split between the 290 homes.

The planned homes will add to Schuler’s work at Maui Lani, a most undeveloped 1,000-acre community envisioned to eventually contain about 3,600 homes.

Schuler first acquired property at Maui Lani in 2000, and since has sold 113 single-family homes called The Islands. The company is now selling 140 single-family homes called The Legends, for which prices start in the $300,000 range, and 21 homes at The Bluffs at Maui Lani, for which prices start in the $600,000 range.

“We’re excited about this opportunity to complete the vision at Maui Lani and to provide Maui with needed, quality homes that local families can afford,” said Mike Jones, Hawaii division president at Schuler.

Maui Lani was first announced in 1976 by Alexander & Baldwin Inc., but development on the company’s kiawe-filled sand dunes between Kahului and Wailuku didn’t get started until the late 1990s because of tie-ups over land use, market slumps, repeated sales and foreclosure.

Mills took over as master developer in 1994 and built some initial homes and the golf course in 1996….

* * *

May 25, 2004

Kaluanui Road wall repairs sought

By Suzanne Roig, Honolulu Advertiser

HAWAII KAI – Three months after a police car smashed into a lava rock wall on Kaluanui Road, the hole is still there and residents fear that another accident could send a vehicle careening through the barrier and off the adjoining steep incline….

The 2-foot-high wall is all that separates cars and pedestrians from the dropoff at a hairpin turn on the steep, winding road. Nearly a dozen accidents have occurred since 1999 at the same spot as the police car crash in February….

The hole remains because the landowner Schuler Homes and the Mariner’s Ridge Maintenance Association can’t determine who is responsible for the maintenance.

Mike Jones, Schuler Homes Hawaii president, said talks have begun over responsibility for the wall and its maintenance. Before Schuler, Kamehameha Schools owned the land and the association maintained the wall, Jones said….

* * *

May 27, 2003

HAWAII KAI NEIGHBORHOOD BOARD

REGULAR MEETING MINUTES

PUBLIC GENERATED ISSUES …

SCHULER HOMES NOT COMPLYING WITH A UNILATERAL AGREEMENT: [Lillie C.] Wong stated that Schuler Homes, along with owners of the area cemetery, are violating a unilateral agreement where their grading in the Kamilonui II subdivision will cause the boulders to roll down thereby placing the farmers who have been there for the past 33 years at risk. Wong stated that the Board should be held responsible for this noting that they supported the project despite strong community opposition. Wong objected strongly that farmers have to pay $10.63 per $1,000 in property taxes noting that they do not utilize much City services…. Bob Fowler added that the Schuler Homes’ Kailonui II and III housing subdivision projects exceed the City’s building height limits….

KAMEHAMEHA SCHOOLS’ PLANS TO INSTALL STEEL NET CAGES TO PREVENT ROCKSLIDES IN THE LALEA TOWNHOUSES COMPLEX: Neil Hannahs, Head of the Lands Trusts Assets Division for Kamehameha Schools, presented plans to install net steel cages to prevent rockslides from taking place at their Lalea Townhouses like the rockslide that occurred on Thanksgiving Day in 2002…

Discussion followed….

(2) Fowler asked if Schuler Homes’ Kamionui II and III are on Kamehameha Schools’ property. Hannahs replied yes….

(6) Wong requested that a guardrail be placed at the entrance of the Kamilonui Farms Lots. Wong asked who would be held liable if a rockslide were to occur at Kamilonui II and III subdivisions. Hannahs replied Schuler Homes.

(7) Paresa asked if Kamehameha Schools owns Koko Crater. Hannahs replied that it did but is now owned by the City and County of Honolulu….

See also Bill Mills; Bishop Estate


 

Seibu Group of Japan – One of Hawaii’s largest foreign-owned real estate developers, with alleged connections to the Yakuza.

February 16, 2004

Makena Resort Fight Flares Anew

By Timothy Hurley, The Honolulu Advertiser

KIHEI, Maui – It’s deja vu for the Makena Resort and its proposal to rezone hundreds of acres for luxury housing and visitor accommodations.

Two years ago, foes waved signs of protest along the highway and the resort’s plan was debated at length before stalling over Maui County Council quorum issues and a shortage of votes.

The proposal comes before the council again next month….

The center of the storm is Makena Resort’s 20-year plan to add some 200 acres of condominiums and apartments surrounding the Makena North and South golf courses, and to designate 28 acres for a hotel or time-share project south of the Maui Prince Hotel….

Roy Figueiroa, Makena Resort manager, said the proposal aims to change the zoning of 600 acres to conform with the area’s community plan, which shows hotel and residential use. The zone change would allow for proposed construction of 89 time-share units and 1,500 mostly condominium units.

Opponents say such plans are too large for an area lacking water resources and adequate roads. They say the proposal would compromise the region’s bounty of Native Hawaiian cultural artifacts, undermine its coastal waters, threaten beach access and add even more traffic to Kihei’s busy streets.

“This is a very major project, and this is a very sensitive area,” said Ron Sturtz, president of Maui Tomorrow, a nonprofit group that advocates measured growth.

Makena, just south of the Wailea Resort, is a rugged and beautiful area on Maui’s leeward shore. It is home to popular Makena State Park, La Perouse Bay, and the ‘Ahihi-Kinau Natural Area Reserve and Maui’s last lava flow on Cape Kinau.

The Makena Resort has two 18-hole golf courses, a tennis complex and the 310-room Maui Prince Hotel. It is part of Prince Resorts Hawaii Corp., owned by Seibu Group of Japan, which also owns the Mauna Kea Beach Resort in South Kohala and the Hawaii Prince Hotel in Waikiki….

Maui developer Everett Dowling, who acknowledges he’s interested in developing a portion of the project, said the resort has been a good corporate citizen, not only by providing employment and being a good neighbor, but by building infrastructure before development….

Dowling said the resort has been treated unfairly, especially by Councilman Wayne Nishiki, an outspoken critic of development who, as chairman of the council’s Planning and Land Use Committee, has delayed scheduling a hearing for the Makena plans.

The scheduling issue came to a head last month when other council members forced Nishiki to place the rezoning plan on the agenda.

Project foes say the water issue remains the development’s biggest question mark, especially since the ‘Iao Aquifer – South Maui’s primary water source – is being pumped at capacity….

Daniel Grantham, president of the Sierra Club’s Maui Group, said many people object to the construction of more luxury homes when affordable housing is probably the county’s most pressing problem…

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April 15, 2004

Maui council approves Makena rezoning request

by Timothy Hurley, Honolulu Advertiser, Maui County Bureau

WAILUKU, Maui – Makena Resort’s rezoning request won approval from a Maui County Council committee last night, the initial step in what could lead to construction of Maui’s first major resort development in more than 15 years.

Approval by the council’s Planning and Land Use Committee came on a 7-2 vote in the sixth week of deliberations, as extended period that generated 41 conditions designed to temper the impact of construction and address concerns regarding affordable housing, drinking water, beach access, roadways and parks.

Council Members Wayne Nishiki and Jo Anne Johnson voted against the application, saying they still have concerns about the effect on the Makena region.

The zone change, if ultimately approved by the same members sitting as the full Maui County Council, would allow 150 acres of condos and apartments and a 28-acre time-share project just south of the Makena Resort Corp.’s Maui Prince Hotel.

The company is proposing a 20-year plan to build roughly 1,100 luxury homes, condominiums, apartments and a 89 time-share hotel. The rezoning, however, would allow and estimated 3,300 units….

Nishiki, committee chairman and an outspoken critic of the proposal, said he would reserve his comments for first reading before the council, though he did say he objected to conditions regarding affordable housing and water.

But Johnson offered an impassioned plea, saying a yes vote would indicate that the council was putting the needs of the rich, off-island home buyers above Maui residents.

Johnson said Maui, and Makena in particular, cannot support another resort of this size. She said she can see the island being overdeveloped in a way that occurred in the U.S. Virgin Islands, a place she used to live.

“Ultimately, this is another nail in the coffin in our No. 1 status as a tourist destination,” she said.

“Trust me, people have no idea what’s coming.”…

But others dismissed her concerns, saying that the conditions were enough to ensure that Makena is not overrun by development.

Council member Michael Molinda added that: “We’ve all got to accept the fact that we cannot stop growth. The last time I checked, Maui is part of the U.S. and people can move here.”

The hearing followed weeks of high-profile campaigning by the Makena Resort and development foes. Even the Maui Chamber of Commerce weighed in with newspaper ads asking council members to honor previous water commitments to the company and urging people to testify and not let “just 10 or 15 people who live here make your decisions for you.”

Opponents gathered petitions, held a rally, staged a Makena video contest and ran newspaper ads to counter full-page ads by the resort.

Opponents said the development plans are too large for an area lacking adequate water and roads. They say the proposal would compromise the region’s Native Hawaiian cultural artifacts, undermine its coastal waters, threaten beach access and add more traffic to Kehei’s busy streets….

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April 25, 2004

Letters to the Editor, Honolulu Star-Bulletin

Makena Resort won’t welcome regular folk

If Seibu Hawaii’s Makena Resort vote keeps going in the direction it is taking, we lose our last wild area. (“Maui panel approves rezoning for resort,” Star-Bulletin, April 15). There is no protection from golf course chemicals and runoff that will pour into the ocean. The archaeological continuity of the Honoaula District will be destroyed with some sites being saved, mainly chosen by the developer and carefully chosen representatives who back development.

And the greatest insult – they won’t let regular folks live in the development. Of course, this would decrease Seibu’s profit. Maui County Council members Joe Pontanilla and Mike Molina say they don’t know of anyone who wants to live there. More than 60 percent of Maui’s population rents, yet they don’t know of anyone who wants to live in Makena Resort. They say there are no amenities for working families, like no one would be willing to drive to Kihei for groceries.

Council Chairman Dain Kane stated a vague resort employee poll reflecting only 20 desire to live there. This is a red herring. During debate the Council made it clear that this affordable housing is covered under a separate area of county law and has nothing to do with employees. Riki Hokama implied that affordable housing would just be handed to people.

Molina says the American dream is about building yourself up. Yet Council members are making zoning decisions to perpetuate you and your children as second-class citizens in you own county – saying you are unworthy to live with the rich.

And they gamble you won’t vote.

– Sean Lester, Haiku, Maui

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March 19, 2004

Seibu Railway Group having legal troubles in Japan

From Maui Tomorrow

Testimony from Sean Lester on
Seibu Corp for Makena Rezoning request

We have all heard by now of the shakeup at Seibu Headquarters. Roy Figueiroa was quoted in the Maui News on Sunday stating that he knew nothing more than what was on the internet, and that it had no bearing whatsoever on the Seibu/Makena project.

I can understand why Roy would say this. You have been dealing with Roy for years, and as you know, all decisions come from the Japanese Corporate headquarters, not from here in Hawaii.

11 people, including 3 Seibu board members have been arrested so far. And it’s still early in the investigation. Arrested, not just accused. For Japanese police to go to the headquarters of one of Japan’s largest corporations and arrest its board members is no small thing.

And who was arrested?

Seiichi Ikura, Senior Managing Director, Seibu Board of Directors

Norhiro Kanno, Head of Public Relations, Board Member

Masaru Kojimo, Head of the Real Estate Division, Board Member

Sadanori Kimura, a senior official of the Real Estate Division

These are not small time employees. They are executives of a corporation whose net assets are estimated at $250 Billion US dollars….

Now this is where it gets interesting. Police arrest these men, and then Seibu President Hiroyuki Toda denied that he had personally approved the alleged payoff, then goes on to insist he did not believe the real estate deal was “unnatural.”

According to Toda, before the land plots were sold to the Yokohama real estate agent, Seibu was having trouble finding buyers because the plots were on sloping ground. The deal with the real estate firm thus appeared to be convenient, he added. Yet this “convenience” was to sell it to an underworld figure to pay off a bribe.

And the land that was sold? According to local residents, Seibu Railway had built houses in the area up until the 1980s, when the railway company told residents that the remaining land would be preserved as forest that would be donated to the Yokosuka municipal government. Some residents purchased based on Seibu Railway’s promise.

Interesting. One day promises for preserving the forests, the next, development by racketeers.

So the police say it’s illegal. The president of Seibu says – it’s business as usual. Corporate Coverup? Sure sounds like it to me.

These men are part of the Seibu corporate board who are asking Maui citizens and you as our elected officials to trust them with their actions on this land. These are the true faces of the owners of the Seibu/Makena resort and not Roy Figueiroa, not the people you will hear in testimony today.

So a very important question to you is: With what we know so far about Seibu’s actions, will this in any way reflect badly on Maui County’s bond ratings, to be linked closely with a company that seems to have no problem with engaging in criminal activity?

Other pertinent information:

There are three separate holding companies owned by Seibu Railway Corp. who are asking for these zoning changes. Check the people who are agents of these corporations:

1.       Maui Prince Hotel, LLC.

Agent – Attorney Allen M. Goda. Officer listed as the Makena Kai Corporation, who has Bert Kobayashi Jr. as its officer.

2.       Makena Aina Corp.

Agent – Yoichi Asari. Officers: Yoichi Asari and Kiyoto Kawakami

3.       Ainamua Corp.

Agent – Jun Kobayashi. Officers: Jun Kobayashi and Kiyoto Kawakami

www.maui-tomorrow.org/issuespages/makena/seibu_japan.html

March 10, 2005

Tsutsumi tied to Kokudo insider trade

The Japan Times

Kokudo Corp. at the center of an insider trading scam that led to the arrest of former Chairman Yoshiaki Tsutsumi last week, engaged in such illicit activities with his approval from around 1995 by unloading its Seibu Railway Co. shares to avoid delisting of the publicly traded railway, sources said Wednesday.

Kokudo board members sold nearly 10 million Seibu Railway shares on the open market from around 1995 to 2000 to cut Kokudo’s excessive shareholdings in the railway, the sources said. The shares were effectively owned by Kokudo but were registered under the name of board members.

The shares also included those registered under the name of Kokudo’s affiliate, to which the shares’ legal ownership was transferred prior to the sales, they said.

Kokudo hid the information that the railway had already fallen within the Tokyo Stock Exchange’s delisting criteria when it sold them to general investors, the sources said….

Kokudo, the parent of Seibu Railway, which effectively controls the Seibu group, had been reducing shares held by individuals in the railway since as early as 1957, the sources said.

< < < FLASHBACK < < <

From: Land and Power in Hawaii, by George Cooper and Gavan Daws:

MAUI: DEVELOPING KIHEI

Compared to most other islands, Maui had few cases of anti-development protest.

When there were objections, generally they came from recently-arrived haoles – people of little or no political consequence who could be and were for the most part ignored by state and county governments….

The two Maui projects that drew the most fire were the 1,000-acre Seibu Group Enterprises resort planned at the southern end of the road along the Kihei coast, and the 184-unit Makena Surf condominium, on oceanfront land just in front of the north end of the Seibu project.

Seibu in 1973 bought its land from Ulupalakua Ranch, and in 1974 asked the Land Use Commission for urban districting. The Makena Surf developer went to the LUC in 1978. Both applications occasioned some outcries against development of the then-remote Makena, the last substantially undeveloped streatch of the entire Kihei coast….

As mentioned, those who objected were mostly mainland haoles, and not necessarily haoles with money. They could be and largely were ignored by the largely nisei political establishment on Maui and in the state government, that generally approved all Seibu and Makena Surf applications….

Part of the reason why government rolled so readily over these anti-development protests was that a rather large number of high-ranking public officials, including several with land use authority, were personally involved with Seibu and Makena Surf.

Once again there were good reasons of public policy, widely accepted on Maui, why those projects should advance. Once again, the investments and consulting and legal work by then-current and former public officials were to a great extent expressions of a general belief that developing Makena was both inevitable and good. But the heavy participation by people in key positions in government also helped ensure that the forward momentum of development would not be braked by protesters….

At about the time in 1973 that Seibu bought its Makena property, Mayor Cravalho said that he initiated discussions with several major landowners/developers, including Seibu, to have them participate in financing a new water source and transmission line, primarily to serve the Kihei coast. An agreement was announced in 1974. Most of the cost of these facilities was to be met by three large developers, including Seibu, with some of the money they fronted to be refunded later out of income generated by operating the new facilities….

In an interview for this book, Elmer Cravalho said he endorsed the Seibu plan as mayor when it was first presented to him about 1973. That year, as mentioned, he said that he also initiated discussions involving Seibu concerning a major new water supply for the Kihei coast. Also as mentioned, in 1969 MDG Supply Inc., in which Cravalho held a 15% interest, bought a 14.5% interest in 9.7 acres of beachfront at Makena….

The water agreement involving Seibu would bring a water line past the MDG land, running down to the Seibu property. It would help ensure that the whole Seibu resort would go forward, thus helping to pay for a paved road past the MDG property, and bringing the full range of resort amenities into Makena.

MDG, having bought in 1973 for $162,000, sold in 1974 for $350,000, about the time that an agreement in principle was apparently being reached on the water agreement….

The Seibu property was purchased from Ulupalakua Ranch in 1973. The ranch had initially listed the land for sale through one realtor, but when that firm proved unsuccessful, Masaru Yokouchi of Valley Isle Realty got the listing. He found a buyer in Seibu and brokered the sale on behalf of the ranch.

Afterwards he became a consultant to Seibu on Maui. As such, when Seibu’s Land Use Commission application was pending in 1974, Yokouchi contacted members of the LUC and asked that they meet privately with Seibu representatives.

Given his years in politics and his position as the governor’s chief aide on Maui, Yokouchi was personally acquainted with several LUC members.

The Maui member, Tanji Yamamura, was on the Commission because Yokouchi nominated him to the governor. Yamamura, an independent pineapple-grower, was appointed in 1969 after Yokouchi was directed by the governor’s office to recommend someone from Maui who was a farmer. …

For whatever reasons, Yamamura subsequently voted in favor of Seibu, which got urban districting for 500 acres.

Yamamura at the time was also a member of a hui named Makena 700, which had purchased 670 acres from Ulupalakua Ranch in 1971 for $1.8 million. The parcel sat inland between Wailea and what later became the Seibu resort area.

In 1973 the hui resold to a Japanese firm, Taiyo Fudosan Kogyo Co., for $6.2 million….

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From Deep Black Lies:

HIROHITO’S GOLD

Explosive Japanese WWII Secrets Revealed

By David Guyatt

American author, Sterling Seagrave, has previously received international acclaim for his penetratiing investigative books: “The Soong Dynasty,” and “The Marcos Dynasty.” Now, in his latest work, “The Yamato Dynasty“, Seagrave unveils some of the most enduring secrets of the war in the Pacific….

As Sterling and Peggy Seagrave make clear, the ruling family of Japan has always been governed by others more powerful than themselves. The emperor and imperial family are figureheads used to conceal from the public the real power brokers who lurk behind the “black curtain.”

These are the family owned and managed businesses or Zaibatsu that include such trans-national corporations as Mitsubishi, Mitsui and Sumitomo amongst others.

The authors say this corporate power has grown stronger, not weaker, and that the “postwar financial cliques share power with nobody. Not with the emperor, who is only a magic wand, and not with elected politicians, who are only hand-puppets. Financial cliques are the most powerful forces in modern Japan.” Moreover, Japan’s post-war business structure is unlike any other modern industrial society for the simple reason that organised crime are openly factored into it. Hence the zaibatsu include not only “financiers, bankers and heads of corporations, but underworld bosses” – the so-called Yakuza crime clans….

The most powerful man in Japan today is virtually unknown in the west, and is only rarely mentioned at home because of his connections with international sporting events.

As head of the Seibu group, Tsutsumi Yoshiaki’s power snakes out to over 100 Japanese corporations and numerous international businesses.

Yet, the authors say that Tsutsumi Yoshiaki is probably the richest man in the world with declared assets greater than those of Bill Gates before the American computer whiz-kids bank balance hit $50 billion.

Meanwhile, Tsutsumi’s undeclared assets are greater still, the authors believe….

For more, GO TO > > > Apollo Advisors; The Blackstone Group; Claims By Harmon; Dirty Money, Dirty Politics & Bishop Estate; The Grand (and dirty) Ko Olina; RICO in Paradise; The Weinberg Foundation; Yakuza Doodle Dandies


 

Sports Shinko – Japanese development corporation, allegedly connected to the Yakuza.

December 13, 2002

Sports Shinko Managers Sue Former Officers

By Steve Jefferson, Pacific Business News

Several former officers of the Sports Shinko companies, including the past president, are being sued by current management, which is accusing them of fraudulently transferring assets and encumbering the companies with “unreasonable” claims.

Sports Shinko owned several properties in Hawaii, including three golf courses and two Waikiki hotels, before divesting them earlier this year.

The lawsuit describes a complicated mix of business entities, contracts and allegiances and accuses the former officers of personally enriching themselves by side-stepping creditors.

Essentially, the lawsuit states the former Sports Shinko officers set up a management company that could not be traced to them and gave themselves the ability to purchase $3.5 million in claims, which they created, for $1,500.

In August 2000, Toshio Kinoshita, past president and director of nine Sports Shinko companies, with his son Satoshi and Tsugio Fukuda – also officers of those same companies – formed a number of management companies so they could fraudulently transfer the assets of the Sports Shinko companies to the Kinoshita family, the suit states.

Satoshi Kinoshita was the sole shareholder, director and officer of the original management companies. After realizing the Kinoshita name could not be removed from public records, Toshio, Satoshi and/or Fukuda dissolved those companies and created Hotel Management Services later that month so the Sports Shinko companies “could enter the management agreements with a company that could not be traced to the Kinoshita family,” the suit alleges.

The following month, the name of the surviving management company was changed to Resort Management Services Hawaii Inc. and all of the company’s shares were purchased by Yasuo Nishida, an assistant treasurer and assistant secretary for several of the Sports Shinko companies, with funds provided by Toshio, Satoshi and/or Fukuda, the suit alleges.

At the same time, Nishida gave the Kinoshitas the right to buy back all of the Resort Management Services shares for $1,500.

In October 2000, Resort Management Services entered into five, 20-year contracts with the Sports Shinko companies to manage three golf courses (Mililani Golf Course, Pukalani Country Club and Kiahuna Golf Club) and two hotels (Queen Kapiolani Hotel and Ocean Resort Hotel Waikiki).

Those contracts required the companies to pay management fees, employee salaries and other expenses to Resort Management Services, with substantial termination fees if the properties were transferred without the consent of Resort Management Services and the buyer does not assume those contracts. The termination fees for all the contracts total $3.5 million.

In January 2002, as officers of the Sports Shinko companies, the Kinoshitas sold those five properties to Bert Kobayashi’s KG Holdings LLC.

Because KG Holdings did not accept the management contracts and Resort Management Services did not approve of the sales, Resort Management Services now possesses claims of $3.5 million in termination fees, the suit states.

In February 2002, just days after the sales were announced, parent company Sports Shinko (Japan) Co. Ltd., under Toshio Kinoshita’s command, declared bankruptcy in Japan.

All of the Sports Shinko companies are under the control of bankruptcy trustee Mutsuo Tahara in Japan.

The suit, filed by Alston Hunt Floyd & Ing on behalf of Tahara, asks the court to prevent Nishida from transferring stock of Resort Management Services to the Kinoshitas. Plaintiffs want the court to take control of the stock and preserve it, to undo any transfers [of assets] that have occurred and void all management contracts….

See also: Bert Kobayashi; Bishop Estate; Everett Dowling; Peter Savio

For more on Sports Shinko, GO TO > > > Broken Trust; Yakuza Doodle Dandies


 

Stanford Carr Development – One of Hawaii’s largest real estate developers.

March 27, 2004

Builder eyes Hawaii Kai farms

By Suzanne Roig, Honolulu Advertiser

A developer wants to build 200 homes on 87 acres of land off Lunalilo Home Road, a proposal that would end more than half a century of farming in the former swamp land that is Hawaii Kai and bring large-scale construction to its last undeveloped valley.

Stanford Carr, the developer of the Peninsula, a 600-unit project under way on the edge of the marina, has approached area City Councilman Charles Djou, chairman of the council’s zoning committee, with a plan to move Kamilonui Valley’s 16 farmers to other communities to make way for his latest brainchild.

The proposal comes during a building boom the likes of which has not been seen in Hawaii Kai since Henry Kaiser first saw the area’s fish ponds and brackish water in the 1960s and envisioned a marina-based community. And it is generating concern about too much growth and its effect on traffic and sewer and water capacity.

“It’s just wrong to keep building,” said Murray Luther, a community activist and longtime resident of Hawaii Kai. “Let’s make sure we have the services available first, before we go building more. These guys (the developers) just are making their money and getting out.

“Just because it’s virgin land doesn’t mean we have to build on it.”

Carr said the farmers approached him about three years ago about buying their leasehold interest, although apparently not all favor the idea….

He said he plans to study the capacity of the sewer, water and road systems before making a formal proposal for the 200 homes. The land is zoned for agriculture and would require a zoning change, subject to public hearings and City Council approval. Carr estimates he is two or three years away from building if he can get the necessary approvals….

Builders have been pounding away on roughly 800 new homes, townhomes and apartments in Hawaii Kai in the past three years. With the median home price climbing above $400,000, it’s a good time to build, developers say.

But with nearly all buildable land here in play, interest has turned to the quiet valley that has been home to farmers since industrialist Kaiser moved them there in the 1960s to make way for homes.

The growers of vegetables and potted plants belong to the Kamilonui Farmers Cooperative. Many are near retirement age, said Dean Takebayashi, owner of the nursery Chrysanthemums of Hawaii in the valley. Several had signed the first lease with landowner Kamehameha Schools. Rents are up for renegotiations in about six years.

“I have to hear a bit more about what the developer is offering,” Takebayashi said. “I’d prefer to stay here and continue doing what we’re doing. I enjoy farming.”

One issue of concern for some residents is the soil, which is unstable and tends to allow flooding in heavy rains, said farmer Gary Weller. In new homes being built now by Schuler near his farm, property owners had to sign a disclosure statement saying they were aware of the soil conditions and acknowledging farming operations nearby.

Life of the Land, an environmental and community action group, has been trying to keep land designated agricultural in the hands of farmers rather than developers.

Rather than turning farmland into residential land, city policy-makers should look at ways to rebuild in urban areas and preserve farmlands to support agricultural self-sufficiency, said Henry Curtis, the group’s executive director.

“I would hate to see Hawaii become wall-to-wall houses,” he said. “Agriculture land provides an open-space characteristic, and it provides a connection to the land for people who don’t farm themselves.”

Djou said he’s skeptical about additional development in Hawaii Kai, and the community could use a break from the sound of hammers and drills. Developer Carr told Djou he wanted to hear the community’s concerns and would attempt to address them.

“I realize there’s a market here; people are certainly willing to buy,” Djou said. “I just don’t know how far the developer will get.”

“Clearly, the community has changed from the way it was 50 years ago,” he added.

“But those farms provide a natural watershed from the heavy rains, so they don’t run off into the marina. If you put homes there, where will the water go?”…

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February 27, 2004

Stanford Carr rediscovers his Maui roots

by Nina Wu, Pacific Business News

As a 12-year-old, Stanford Carr learned his lesson about work ethic from planting zucchini on four acres of Maui’s upland country.

Now 42 and president of one of the largest, award-winning developers in Hawaii, he is applying those lessons to real estate development.

In farming, he said, external forces such as the weather, disease and price fluctuations were beyond a farmer’s control. In developing, interest rates, inflation and supply and demand also are at the whims of the economy.

But in both cases, one has to plan, put an infrastructure in place and work hard to raise something out of the ground….

Now Stanford Carr Development LLC is creating a master-planned community of 2,500 homes on 440 agriculture-zoned acres, along with parks and a commercial center at Wailuku in Central Maui. A combination of townhouses and single-family homes will range in price from $200,000 to $1 million to serve a broad socioeconomic spectrum.

The homes, considered affordable in contrast to the multimillion-dollar resort homes in Kapalua, were snatched up in a day….

The Maui development is Stanford Carr’s first master-planned community in its entirety that has a personal resonance for the native-born son of the Valley Isle. These homes are for the people who live in Maui, he said, at prices that are affordable….

The developer has done plenty of projects in the past in Kapolei and is transforming the face of Hawaii Kai with The Peninsula and the Colony at The Peninsula. On Maui, Kehalani will be the first project on such a large scale, extending from Waiale Road to Wailuku Heights at the base of the West Maui Mountains.

Not that the road has been easy the whole way. In 1999, Stanford Carr Development bought out the portfolio of C. Brewer & Co. and its stalled development – it was a publicly traded company delisted from the Nasdaq the year prior – for about $5 million, assuming an additional $20.5 million debt. He almost faced foreclosure in 2001, but was able to avoid it by refinancing and selling about 80 acres of land….

Stanford Carr broke ground on its newest Maui residential development, Olena at Kehalani, last September, with 32 single-family homes at prices ranging from $320,00 to $370,000. In two days of sales, 100 reservations were made and the project is already sold out….

In addition to the developments in Hawaii Kai, Stanford Carr Development has other projects – Mauna Lani, a resort community slated for groundbreaking on the Big Island next month, and Waikoloa Colony Villas.

When it comes to land use, the once-upon-a-time farmer says the preservation of prime agricultural lands is important – but that many are no longer being used for agricultural purposes. Developers need to be aware of land-use issues and develop responsibly, he says.

“We need to revisit what is really usable agriculture and where to preserve it,” he said.

“Whether or not to take agriculture land to urban is something society decides. One opportunity is different from another.”…

<<< FLASHBACK <<<

April 18, 2003

6 firms and 2 men
fined for illegal donations

By Rick Daysog, Honolulu Star-Bulletin

The state Campaign Spending Commission has approved more than $62,000 in fines against eight companies and individuals for making excessive political donations to major local Democratic candidates.

By 3-0 vote, the commission approved fines against the engineering and development firms of Fukunaga & Associates Inc., Fujita & Associates, W.A. Hirai & Associates Inc., AM Partners Inc., Stanford Carr Development Corp. and WMO Corp.

The commission also voted to issue a $750 fine to local real estate executive Joe Leoni and a $500 fine to isle attorney Mitchell Imanaka.

The largest penalty – $24,000 – went to Fukunaga & Associates for making more than $36,000 in false-name contributions to the campaigns of Honolulu Mayor Jeremy Harris and former Gov. Ben Cayetano.

The commission also fined W.A. Hirai $19,000 to settle charges that the company made $30,000 in excessive political donations to Harris, Cayetano, former Lt. Gov. Mazie Hirono and ex-Maui Mayor James “Kimo” Apana.

Fujita & Associates agreed to an $11,000 fine for making false-name contributions to Cayetano, Harris, Apana and Hirono.

The commission was scheduled to approve a $53,000 penalty against the engineering firm of Edward K. Noda and Associates for allegedly laundering $90,000 in campaign funds to Harris, Cayetano and Hirono.

But that case was kept off yesterday’s agenda after commission staffers discovered additional illegal contributions, said Bob Watada, the commission’s executive director….

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February 13, 2001

Maui development
put up for sale

Honolulu Star-Bulletin staff

A large vacant chunk of an unfinished and long-awaited West Maui housing development near Wailuke is poised to change hands again.

Hawaii Land & Farming Co. has put roughly 470 acres of the Kehalani development site up for sale this week, according to real estate marketing firm Kennedy-Wilson International.

Hawaii Land & Farming is owned by a partnership controlled by Hawaii developer Stanford Carr….

Carr’s partnership Milwaukee Holdings LLC last year bought out Hawaii Land & Farming for about $4 million and the assumption of more than $20 million in debt.

At the time of the sale, Hawaii Land & Farming owned about 2,700 acres on Maui, Kauai and the Big Island.

Formerly called C. Brewer Homes Inc., Hawaii Land & Farming formed in 1993 as a publicly traded spin-off of privately held C. Brewer & Co. Kehalani began in 1994 as a 550-acre, 2,400-unit master planned community that soon stalled along with the state’s economy….

See also: C. Brewer Homes

– For a deja vu experience, GO TO > > > The Vultures of Maunawili Valley


 

Sukamto Sia – Big-time Indonesian financier and developer, before going bankrupt and ending up in Club Fed.

For more, GO TO > > > The Indonesian Connection


 

Takeshi Sekiguchi – President of TSA International, Ltd.; a Hawaii resident and developer of The Grand Wailea Resort on Maui and the Ko Olina Resort on Oahu.

April 4, 1997

Hawaii County Forced to Sell Planned Kaloko Resort

By Paula Gillingham, Pacific Business News

The County of Hawaii has begun foreclosure proceeding on $14 million in remaining bond obligations on behalf of bond holders of Kaloko, a massive resort development that was planned for North Kona….

County Treasurer Frank Manalili said the sale will assist the county in recovering $1.1 million, the delinquent part of the assessment….

Tokyo Green alleges scam

Meanwhile, the owners of the Kaloko project have filed suit against the Industrial Bank of Japan, Ltd, which holds the mortgage on the property.

Attorneys from the Honolulu law corporation Paul Johnson Park & Niles filed the suit on behalf of Tokyo Green Co. Ltd. of Japan and Tokyo Green Hawaii Inc. Named as defendants with the bank are TSA International Ltd. and its president Takeshi Sekiguchi, a Hawaii resident and developer of The Grand Wailea Resort on Maui and the Ko Olina Resort on Oahu.

The Industrial Bank of Japan is accused of participating in a scheme to entice Tokyo Green and TG Hawaii to spend and invest more than $80 million on a Big Island project. The proposed North Kona development … was to have spanned approximately 1,150 acres and included two golf courses; include more than 1,600 single-family homes and 880 apartments; a town center including office, commercial and retail space; and a school and park….

The suit alleges that the bank conspired to commit fraud to the Tokyo Green companies and replace on its books the bad debt of TSA International with new, secured debt so that it would present a more favorable financial position to the Ministry of Finance and other bank examiners….

More formal deals considered

Attorney Carol Asai-Sato, a director and officer at the Honolulu law firm Alston Hunt Floyd & Ing, mostly represents Japanese clients in business-related and real estate matters. According to Asai-Sato, Japanese investors, more used to completing transactions with a simple handshake, are surprised with the way business is conducted in the United States.

Given the time period in question, the tail-end of the bubble of Japanese investment internationally, Asai-Sato said a lot of loans, especially for overseas ventures, were made without full investigation. She said that this could be one of those types of loans. But in present-day Japan, Asai-Sato said the country’s Ministry of Finance is exercising stricter controls…. 

For more, GO TO > > > How to Pluck a Billionaire; The Grand (and dirty) Ko Olina Resort; Yakuza Doodle Dandies


 

Trinity Investment Trust – Chicago-based partnership involved in several large real estate developments in Hawaii.

For more, GO TO > > > Predators in Paradise; Yakuza Doodle Dandies


 

Weinberg Foundation – Another large charitable trust/developer which feeds off the taxpayer.

For more, GO TO > > > The Weinberg Foundation

 

MORE PAVING TO BE POURED.

 


 

 

In the meantime, you can browse through the following as you’re having your breakfast birdseed in a paved parking lot or under a bridge somewhere:

ACT 221

ALEXANDER & BALDWIN

APOLLO ADVISORS

ARBITRATE THIS!

THE BLACKSTONE GROUP

BROKEN TRUST

BUZZARDS OF PARADISE

BUZZARDS ON THE BAR

THE CARLYLE GROUP

CLAIMS BY HARMON

DIRTY GOLD IN GOLDMAN SACHS

DIRTY MONEY, DIRTY POLITICS & BISHOP ESTATE

THE FIRING OF EVAN DOBELLE

FLYING HIGH IN HAWAII

THE GRAND (AND DIRTY) KO OLINA

HOW TO PLUCK A BILLIONAIRE

PREDATORS IN PARADISE

NEW >>> THE PUNA CONNECTION <<< NEW

RICO IN PARADISE

CENSORED >>> THE HARMON ARBITRATION <<< CENSORED

THE INDONESIAN CONNECTION

INVESTIGATING INVESTCORP

THE NESTS OF CB RICHARD ELLIS

THE NUCLEAR NESTS

THE QUEEN LILIUOKALANI TRUST

THE STRANGE SAGA OF BCCI

THE VULTURES IN MAUNAWILI VALLEY

VAMPIRES ON GILLIGAN’S ISLAND

VULTURES IN THE MEADOWS

THE WEINBERG FOUNDATION

YAKUZA DOODLE DANDIES

~ ~ ~


 

 

MORE OF THE CATBIRD’S FAVORITE LINKS

THE CATBIRD SEAT FORUM

THE CATBIRD SEAT

 


 

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Last Update July 3, 2006, by The Catbird

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