Maui Real Estate & Development

Wells Fargo, trustee for the registered holders of the commercial mortgage securities of which secured the property, filed a foreclosure lawsuit on Monday.  Everett Dowling and Morgan Stanley’s partnership, created to purchase the 1,800 acre resort, owes $192.5 million in principal, interest and late charges.

Dowling Company and Morgan Stanley bought the resort and hotel just a little over 2 years ago from Seibu Group of Japan.  Though the future of Makena Resort is uncertain, Dowling Co. is moving forward with its other Makena Project called Maluaka.  This development has been considerably altered in plans from 69 luxury condominium units to 13 custom homes and a club house.

To read more about this latest Maui Real Estate News, see the BizJournal Article.

UPDATE:

Maui Prince Resort to Stay Open with Name Change!

The Maui Prince Hotel will now be called the Makena Beach and Golf Resort.

Prince Resort Hawaii told the public that it would be shutting down the Maui Prince in 2 weeks, but Wells Fargo bank, trustee of the resort, countered this statement by saying they will keep it open and that funds have been made available to pay off vendors and suppliers that were owed as well as continue payroll.

Management will need to be restructured as the Maui Prince Resort has been showing around a 1 million dollar loss per month.

The Maui News headline on August 23, 2009 indicated that the construction industry has significantly slowed down.  There was a 38% drop in the issuance of building permits as compared to last year (Article Title: Builders ‘Banking on’ Big Projects that are on Hold). This article fans the flame of frustration I am feeling right now regarding the delay of issuance of one building permit we are hoping to get to get our workers working instead of being laid off or sent back home without pay because there’s no work.

I do not like whining and complaining about the County of Maui’s inefficiency when it comes to the permitting process. I usually try to put myself in their shoes, to try to understand where they are coming from. I know how working on documents and paperwork goes – I am an administrative assistant, an office manager, and a project coordinator rolled into one. I know it’s not easy. I try to maintain a good rapport with the County Clerks. And I think for the most part, I am doing a good job.

But this past 3 days had been very frustrating. I was waiting upon one building permit to undergo its final review and be issued, and every time I stop by the permit office to follow up I was met with a question “Have you been called yet?; because if not, your permit is not ready yet.” The permit was filed in May of 2009. The agencies all signed off as of August 18, 2009. All we need now is the final review and the permit can be issued. It has been seven days since August 18 and the permit is still not issued. My estimate is that this final review can be done in 15 to 30 minutes per building permit application depending on how complicated it is. Granting that there were other building permits before us (I was told there were about 5 or 8), it still would not take 7 days (ok, 5 working days) to do a final review. I had seen them do this final review. I used to be able to wait. One of the building permit staff, before she was transferred to Plans Review section, used to be able to process 5 final reviews in front of me with no problems at all. Then why is one building permit taking such a long time to be issued?

The thing is, I am not even “pushing” this for my own self. I was pleading to get this building permit issued so that our workers and subcontractors can continue doing their jobs without being laid off. As I read another article on Maui News about “Regulations seen as crushing burden on Hawaii business” I cannot help but nod my head as I think about this one building permit application I am waiting on.

It’s 9:55 AM on August 25, 2009 right now. The question is “do I call the building permit department to once again follow-up on this one building permit?” If I stop by their office, I am pretty sure that I would be met with a sigh and a question and a remark: “have you been called? if you have not been called yet, that means your building permit is not ready yet”. Sigh! I guess I would just have to wait. In the meantime, it’s good to be able to vent.

***

UPDATE:  Building Department called at 10:23AM - permit ready for pick-up. I guess venting on a blog works. It took a week for this “final review” to get done.  We have several more building permit applications pending - we’ll see how those will go.

The Maui Island General Plan provides a guide for the future growth of the island to the year 2030. The Maui Island Plan establishes a vision and a set of long-range guiding principles, goals, objectives, policies and maps to guide the growth and development of the island.

At this time, this Maui Island General Plan is in the “stage 2″ of the review process.  First, the Planning Director took the recommendation of the GPAC (General Plan Advisory Committee). Second the Planning Director’s original draft as well as the newly revised draft with GPAC recommendation are reviewed by the Maui Planning Commission. So far the Maui Planning Commission  had 3 meetings on this already.  A few more meetings are scheduled with the Maui Planning Commission before they finalize their own recommendations regarding the location and amount of future growth for Maui. If you are interested to come, below are the dates, time and location:

August 4, 2009 from 1:30 PM to 8 PM in the Lahaina Civic Center

August 18, 2009 from 9AM to 5 PM in the Planning Department Conference Room

August 25, 2009 from 9AM to 5 PM in the Planning Department Conference Room

This Maui Real Estate And Development Blog will feature the Maui Island General Plan.  A series of posts are coming up here on this topic for us to weigh in on this very important decision for the Maui Island.  Stay tuned and looking forward to your comments.

On June 24th, 2009, a small town public forum was held at the Good Shepherd Church Hall in Wailuku, Maui.  The WMSA (Wailuku Main Street Association) Tri-Isle Main Street Resource Center hosted the event to further educate about the community-based issues of the new plan.  The program, “Maui Island Plan: How It Effects You,” was held for discussion between Maui County representatives, community stakeholders, and the public.

This meeting comes after the Draft Maui Island Plan was received for review on April 21st.  The Planning Commission was given 150 days to review and modify it before passing it on to the Maui County Council.

Members of the panel expressed concern about loss of small town identity.  With 1 policy to act over all areas, it was argued, there will be incongruent policy.  Different areas require different approaches. Examples were cited like the differences between growing industrial towns like Kahului and small farming communities like Kula.

Community leader Jan Yagi Buen explained that the overall problem with the new plan was that it is massive in comparison to the 1990 plan, something that would be difficult to modify.

Other issues with the plan are the lack of specifics in allocating water as well as the protection of diminishing agricultural lands.

A major foreseeable problem in Maui’s future is a lack of education and future jobs.  Once our kids graduate from High School, there’s really not much available to them on Maui.

Long Range Senior Administrator John Summers said, “We’ve got a lot of work ahead of us still.”

On June 18th, Everett Dowling spoke at the Pacific Whale Foundation’s Making Waves Lecture Series explaining the sustainable development initiatives for the newly approved Makena Resort.

The Makena Resort will encompass 1,800 acres where Dowling says they will efficiently use the surrounding natural resources with the least amount of impact.  The plan is for “clean and green” use of the property with stormwater filtration, sustainable golf course turf, and solar powered waste water treatment.  

Everett Dowling has large goals for the resort including making it a net-zero energy facility.  In doing this, they’ve planned for roof-top PV systems as well as a 30 acre solar farm facility. 

The wastewater reclamation project is already in effect and will treat 100% of the waste water from the project, rerouting the reclaimed water to the properties irrigation systems.  

The Makena Resort has some very unique and ambitious plans for the future of Maui’s development.

map from Honolulu Advertiser

I admire Andrew Gomes, staff writer for Honolulu Advertiser,  for efficiency, for his quick coverage on the Affordable Housing news on Maui. Yesterday the OEQC published the intent to revise EIS filed for the proposed Ohana Kai Village and Andrew picked it up right away.  He wrote a comprehensive article on Honolulu Advertiser today (as comprehensive as he can considering there are still a lot of variables on this proposed subdivision).

Here’s an excerpt from the article:

Jesse Spencer of Wailuku-based Spencer Homes Inc. is proposing to build 1,100 single-family homes, for sale mostly at prices affordable to residents with more-or-less moderate incomes.

The new plan still faces what Spencer said is continued opposition from some area condominium owners and the county Planning Department — both of which opposed the former development plan in favor of keeping the site, which is zoned for agriculture, as open space.

But the developer said he believes the need for affordable housing and construction jobs will garner enough support for the estimated $400 million project to proceed.

To read the full article go to Honolulu Advertiser, click HERE.

More news on this proposed Ohanai Village will be found on this blog.  Stay tuned. We will be posting fresh updates on this proposed affordable housing on Maui, here at Maui Real Estate and Development Blog.

News about Maui real estate and development continue to be on the front page of the local newspapers.  Each of the news is worthy of discussion.   I should have posted each topic daily as it got published, but I did not get a chance. So tonight I decided to do a round-up. Feel free to comment on the topic that interest you. I will start with the most recent and move down to last week.

Panel Reviews Honua’ula Development Compliance.

A year after its approval, the controversial Honua’ula housing and golf course development in South Maui is moving slowly with a required environmental impact statement and the hiring of several consultants and consulting firms. The project came before the County Council’s Planning Committee Monday as it reviewed a mandatory annual compliance report by Honua’ula’s developers.  Honua’ula, designated Kihei-Wailea Project District 9 (Wailea 670) in the community plan, proposes 1,400 housing units, half of which will be priced as affordable under federal guidelines. Plans include the construction of a private golf course, water wells and a wastewater treatment plant.  Construction on the project is expected to begin in five years if permits are approved and if Honua’ula prevails in legal challenges to its plans. Continued on Maui News

Isle Luxury Projects In Limbo Over Financing.

Keaka, Everett Dowling’s development company, was at the Maui Planning Commission last week to seek an amendment to permits for its Maluaka project to drastically downsize the project from 71 luxury condominiums to 13 lots plus recreational facilities. The commission favored it, also praising Dowling for seeking LEED “green” certification on his development. Demand for luxury housing is down, but it appears that lack of financing is an even greater impediment to developments and redevelopments along Maui’s golden shores. ”We lost our financing,” Dowling said of his Maluaka project at Makena, even though half the units had been presold. For a while in February, he shut down the site work while he sought new lenders. ”We took it to 126 lenders and got one term sheet” - the response showing what the lender was prepared to do.  Dowling said he read about that lender, a bank, being in danger of failing, so he declined to pursue a loan. With memories of Maui Land & Pineapple Co.’s narrow brush with disaster at The Residences at Kapalua Bay when lender Lehman Brothers failed, Dowling said a repeat of that trap “was the last thing I wanted.” Continued on Maui News

Projects On Haitus Due to Scarce Fund

After large real estate projects, electricity generation is the biggest consumer of capital among private businesses in Maui County.  There are several costly projects pending, and while some developers say even today money will be available, the closer the project, the further off the lenders seem to be.  Money problems have stalled two projects being pursued by Kent Smith and his partner, Hilton Unemori - a biomass generator at Hamakua on the Big Island that was to have been fueled by eucalyptus wood and an expansion of Kaheawa wind farm on Maui. ”About the time we went to the markets, credit started to freeze up,” Smith said of the $200 million Big Island project.  Pacific Biodiesel was planning a 5-million-gallon per year refinery on the Big Island, and even though owners Bob and Kelly King were bringing in their own money for half of it, the relatively small amount of additional money needed is not yet there. Kelly King said: “Our Big Island Biodiesel plant has taken longer than expected to get fully funded. We are currently seeking the final 10 to 15 percent of funding before we can announce a groundbreaking.” Smith and Unemori’s expansion of Kaheawa is being held up more by slowness in reaching a power purchase agreement with Maui Electric Co., but Smith said financing is an issue, even with the financial clout of his much larger partner, First Wind. Even if the money can be found, the terms and collateral demands are no longer workable. “If the risk-to-return expectations are higher, (the offers) reduce the return to the developer,” said Smith, sometimes to the point where it is not worth the effort to go ahead. Continued on Maui News

Below is a list of new developments on our island.  Please contact your trusted Real Estate Professional for further information since prices and details are subject to change.  (E-mail lizamaui (at) yahoo (dot) com if you need a recommendation on trusted realtor)

We will try to update this on a quarterly basis here on Maui Real Estate and Development Blog.  We will also discuss each development on a separate post as it “organically” arises. (that means when I naturally feel that a certain development needs to be brought in focus). If you see any error on this (like if the development is all sold out and should not be listed here anymore or sosmething like that, just e-mail me and we will correct it)

So here’s the list:

Wailea/Makena- New developments in the Wailea and Makena areas offer a variety of luxury residences and ownership opportunities.

Honua’ula (formerly known as Wailea 670), Wailea. 670 acres. This project is not yet under construction.

Makena Resort, Makena. This project is over 1800 acres and includes the Maui Prince Hotel

Bluffs at Wailea, Wailea. 12 residential building lots next to the new Wailea Gateway Center. Pries starting at $1,350,000

Ho’olei at Wailea, Wailea. 120 2-story townhouses in 20 6-unit buildings. Owners have privileges at the Grand Wailea Resort www.hoolei.com. Prices starting at $2,900,000

Kai Malu at Wailea, Wailea. Residential Condominium complex with 150 units in 75 two-story duplexes. Prices starting at $1,300,000

Kanani Wailea, Wailea. Residential Condominium with 38 separate, single level & two-story homes

Maluhia at Wailea, Wailea. Residential Condominium with 14 custom home sites

Papali Wailea, Wailea. Residential Condominium with 24 detached homes, each over 2400 SF $3,700,000

Wailea Beach Resort & Residences, Wailea. 193 units on the grounds of the former Renaissance Hotel, interesting details with prices starting at $2,000,000

Wailea Beach Villas, Wailea. 60 units in a 5-story penthouse building plus 38 units in 7 villa buildings

Wailea Town Center, Wailea. 1600 to 1900 SF 2 to 3 bedroom and bath units

Black Sand Beach, Makena. 2 one acre lots, 5 half acre lots, exclusive lots and homes. Prices starting at $8,700,000

Maluaka at Makena, Makena. Initially planned to be 69 units on the golf course by the ocean, from 3100 to over 4500 SF. Prices starting at $3,650,000.  Though the developer had sold more than half the units, he was unable to get construction financing.  Instead there are now 13 incredible house lots of which, 6 have been sold to new owners.  Everett is building the new Makena Clubhouse at that site overlooking Maluaka Beach next to the Prince.

One Palau’ea Bay, Makena. 17 lots each over 1 acre in size

Papaanui, Makena. 7 individual lots, 15-23,000 SF, total of 3,3 acres. Prices starting at $1,500,000

Kihei- New developments in Kihei offer a range of options from single family homes to high end residential condominiums.

Hokulani Golf Villas, Kihei. Residential Condominium; 152 detached homes, 1700 to 2700 SF. Prices starting at $1,100,000

Kai Ani Village, Kihei. Condo in Kihei town across from Star Market, 79 residential units & 20 live/work units. Prices starting at $600,000

Kai Makani Beach Villas, Kihei. 22 two-story buildings, 11 4-plex & 11 6-plex

Ke Ali’i Ocean Villas, Kihei. 144 apartments in 55 2- and 3-story buildings. Prices starting at $650,000

Kamali’i Alayna, Kihei. 2-4 bedroom homes

Walaka Maui, Kihei 1 bedroom 2 bath condos

Moana Estates, Kihei. 90 Lots from 7000 to over 10000 SF; homes are single level & 2-story models from 1600 to 2500 SF. Prices starting at $900,000

Sunset Estates, Kihei. This project is slated to be comprised of 25 residential lots located off Waipuilani Rd.

West Side- New developments on the west side vary from large lot parcels to luxury condominiums.

Ukumehame, Lahaina 45 lots ranging from 2.7 to 13 acres. $995,000.00 - 1,350,000.00

Opukea at Lahaina, Lahaina. 2 and 3 bedroom condos

Villas at Royal Lahaina, Lahaina. 2 to 4 bedroom ocean front villas

Honua Kai, Lahaina. 1 to 3 bedroom suites and penthouses

Upcountry- New developments in upcountry Maui offer cooler weather and possible bi-coastal views.

Cottages at Kulamalu, Kula. 3 bedroom residential condominiums with attached garages

Central- Central maui developments include two master planned communities as well as a residential opportunity located in the heart of Kahului.

The Villas at Kehalani, Wailuku. 2 to 3 bedroom townhomes

The Cottages at Kehanlani, Wailuku. 3 bedroom single family homes

Ilihai at Kehalani, Wailuku. 3 bedroom townhomes

Na Hoku at Maui Lani, Kahului. 3 to 5 bedroom single family homes

Aina O Kane, Kahului. The first residential offering part of the updated master plan for Kahului Town. 2 to 3 bedroom live/work residences.

Excerpt from Maui News:

WAILUKU - The Maui Planning Commission dipped its toes into the rough waters of general land use planning for the next 20 years Tuesday, getting a philosophical overview of the Maui Island Plan from Dave Michaelson of the Planning Department’s Long Range Planning Division.

It’s about more than zoning, Michaelson said.

“You make social decisions about who’s going to be able to stay on this island” when you establish land use policies, he said.

The commission has 180 days to review, refine and send its version of the Maui Island Plan to the County Council. The council will then meld the island plans being reviewed by the Molokai and Lanai planning commissions into an ordinance to manage growth for the next two decades - and, if Michaelson gets his way, for generations to come.

It’s a new approach to planning, he said, citing his mentor, Ian McHarg, and other academic experts behind the “New Urbanism.” And some of the ways the county does business will be changed “radically” if all the ideas in the Maui Island Plan are also endorsed by the commission.

Continued on Maui News

Krausz Companies met with the Kihei residents via Kihei Community Association tonight. They presented their residential/commercial project proposed at Pi’ikea makai of Liloa (extending to the commercial centers of South Kihei Road). The meeting started at 6:30pm. My estimate is that there were about 200 people in there. We shall see what the paper will say tomorrow. I am sure Maui News will have an article on this, and so I will leave the reporting and writing of details to the professional reporters and journalist.

Attend The Kihei Community Association Meeting on Tuesday

Having worked in the development industry for more than 10 year nows, one of the many questions I am often asked is “How do we know about an upcoming development?”  Good question! It helps to know about an upcoming development early on because if you are an interested buyer, you get to be on top of the list once the developer starts accepting reservation. It also helps to be able to give your input on the project.

My usual answer to that question of “how do we know about an upcoming development?” is 1) Read your local newspaper such as Maui News and Maui Weekly regulalrly; and 2) Get actively involved with your community (community associations).  Why? because the developer is always required to have a community meeting and that’s the best place to know about an upcoming developments.  That said, I want to inform you of a future development n Kihei that I read about on the website of Kihei Community Association.  Here’ an excerpt of their announcement:

Are you interested in future development in the center of Kihei? The Kihei Community Association (KCA) has agreed to dedicate this month’s monthly community meeting for The Krausz Companies to present their plans for a development along Pi’ikea makai of Liloa extending to the commercial centers of South Kihei Road at 6:30PM on April 21 at the Kihei Community Center on Lipoa next to the swimming pools. (Continued at KCA website, here)

I am working on a comprehensive list of developments on Maui, but since that meeting is coming up (this coming Tuesday, the day after tomorrow) .. I thought I would let you know about this first.  Are you planning on going? I am.