Posted on: Friday, August 23, 2002

Waimea park seller to give up property

By Andrew Gomes
Advertiser Staff Writer

The city has moved closer to completing its purchase of Waimea Valley Adventure Park, after a state judge released $5 million of $5.1 million in estimated condemnation damages for distribution to creditors of park seller Attractions Hawai'i.

The release of the money Wednesday was requested by Attractions Hawai'i, and essentially means the company trying to emerge from bankruptcy in New York agrees to give up the property.

But the distribution does not complete the forced sale, because both the city and Attractions Hawai'i have yet to justify the fair market value of the 1,875-acre North Shore preserve.

"We're hoping the $5.1 (million based on a city assessment) is sufficient," said city spokeswoman Carol Costa.

Greg Swartz, deputy corporation counsel, said a trial date to determine final compensation is expected to be set Monday for sometime before the end of the year.

The city took possession of the park in February and is in the process of selecting a long-term operator while Waimea Management LLC, headed by Ray Greene, manages the park month to month. At least two other proposals have been submitted to manage the attraction, one from the National Audubon Society, and one from property management firm Volume Services Inc.

Of the $5 million distribution, $3.8 million will go to Bank of Hawaii to settle a lawsuit over Attractions Hawai'i's 1996 purchase of the park. Pending approval of a New York bankruptcy court, another $1.2 million will be deposited into a special account controlled by that court to help resolve Attractions Hawai'i's Chapter 11 case. The remaining $100,000 will stay in an account established by the chief Hawai'i Circuit Court clerk pending resolution of the sale.

Attractions Hawai'i, headed by New York investor Christian Wolffer, filed for bankruptcy last year to prevent Bank of Hawaii from foreclosing on the property and selling it at auction.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.