Some still seething over Moloka'i redevelopment

By Timothy Hurley
Advertiser Maui County Bureau

MAUNALOA, Moloka'i — Gary Patel fumes when he visits friends in this west Moloka'i town.

This park in Maunaloa resulted from Moloka'i Ranch's redevelopment plan. Timothy Hurley • The Honolulu Advertiser

"They destroyed a perfectly good town,'' he said. "I don't really like to go there anymore. My blood pressure rises too much.''

The redevelopment of Maunaloa was a traumatic ordeal for many. Change was difficult. Residents were given ultimatums, old homes were bulldozed and many people ended up moving away.

Today, the new Maunaloa is an attractive, well-maintained community with paved streets, sidewalks, pleasant rows of houses and neatly manicured gardens. It is home to Moloka'i's first national fast-food restaurant franchise, KFC, and the only movie theater on the island. The 2-year-old Moloka'i Ranch Lodge is a quaint 22-room hotel with sweeping views of Moloka'i's rolling West End and the ocean beyond.

Moloka'i Ranch spokeswoman Ruth Ann Becker describes Maunaloa as "a small town with great rural character, built for family lifestyle.''

But there are old-time residents who still harbor resentment for the way Moloka'i's largest private landowner handled the redevelopment. They complain that the ranch transformed a small community with a population of about 400 into a real estate development void of character.

The $20 million-plus redevelopment of Maunaloa village was part of Moloka'i Ranch's plan to go beyond cattle and agriculture by tapping into the tourist market and developing real estate.

One of the plan's goals, according to the ranch, was to make Maunaloa "the best small town in Hawai'i." But to do so, new homes needed to be built, the infrastructure replaced and roads paved.

While some of the old homes were restored and saved, most of them were razed because they were structurally unsound from termite damage and age, or they violated the building code or would have prevented the redevelopment project from meeting county standards.

To entice residents to move, the ranch built new houses and apartments and offered low-interest loans, discounted prices, rent-to-own programs, relocation expenses and rental assistance.

But the response was less than overwhelming. There were those who didn't want to give up their homes, no matter how ramshackle they were. Others said they couldn't afford the higher rents.

Larry and Terri McCutcheon say that while Maunaloa's appearance improved, the community is not as close as it once was. Timothy Hurley • The Honolulu Advertiser

As part of its plan, the ranch prepared scores of luxury home lots for sale and announced that many more acres would be put on the market for residential development.

Today, the population of Maunaloa is down to 230, according to the latest census figures, and rows of empty lots tell the story of a struggling economy.

"No real estate developer in Hawai'i during the '90s met financial expectations,'' Becker said.

Moloka'i Ranch's sole owner, Singapore-based Brierley Investments Inc., has entered into negotiations to sell the Moloka'i Ranch Lodge and 6,000 acres to an undisclosed outside investor.

Meanwhile, some residents continue to stew. McCutcheon, who works at Maunaloa's Big Wind Kite Factory shop, remains bitter about the way he and others were forced to move from their homes. He still refuses to use the ranch's gas station or to enter KFC or the movie theater.

McCutcheon's wife, Terri, was born in Maunaloa. She doesn't like the way her parents were evicted from their home and how many of their neighbors moved away. She also remembers the happy times in old Maunaloa. She remembers gatherings at the Maunaloa Clubhouse, where the town would watch the Maunaloa Serenaders perform.

"We were more like family in those days,'' she said. "We never locked our doors. Now we make sure all our latches are hooked.''

Joseph Espaniola, a 79-year-old former pineapple worker, is ambivalent about the way the town turned out. He doesn't like the way the homes are so close together. "It's like living in an apartment. You don't know your neighbors.

"This is not the Maunaloa I loved,'' he said. "It's just like living in California now. It's not so great, but I like it anyway.''

Roads in Maunaloa were topped with gravel before redevelopment by Moloka'i Ranch, headquarters shown at right. Timothy Hurley • The Honolulu Advertiser

"For every resident who claims to resent the ranch, there are three who are pleased with the ranch for doing what it said it would do: develop Maunaloa in a low-key manner, develop a low-key lodging and recreation program with great environmental and cultural sensitivity, and provide jobs to an island desperate for them," she said.

"It was handled as well as possible, given that in the early days, a group of perhaps a dozen absolutely-no-development-no-matter-what-it-is people managed to create a lot of noise in the community, with government and with media," Becker said. "This was never a ranch-versus-the community situation. It was a ranch versus those who prefer to have Moloka'i living off the government dole.''

Paul Auna, an employee at Maunaloa General Store, took a moment from his work to discuss the evolution of the town. He said it's true that the redevelopment did take a close-knit community and tear it apart. But, he said, it ultimately was best for the community.

"It's time to let bygones be bygones and concentrate on what's going on now,'' Auna said. "Most people are putting the bad feelings behind as the days go by, as the years go by.''