Eldercare housing project uncertain

By Andrew Gomes
Advertiser Staff Writer

Hawaii Kai Eldercare LLC, a senior-living residential development company headed by Sheldon Zane, filed for Chapter 11 bankruptcy yesterday, clouding plans for a proposed project in the East O'ahu neighborhood.

Zane could not be reached for comment yesterday. A spokeswoman for Hawaii Kai Eldercare's attorney, Mark Kawata, said the filing is an effort to shield the project from legal action until financing can be completed in two weeks.

The spokeswoman said the project, called Hawaii Kai Assisted Living, is not dead.

Hawaii Kai Eldercare listed assets and debts each in the range of $1 million to $10 million on the voluntary petition.

The largest claims held by unsecured creditors are all by Honolulu-based companies, including First Hawaiian Bank, with a $4.8 million claim; Mele Associates Inc., owed $900,000; KY International Inc., owed $522,000; Prudential Locations, owed $280,000; and Engineering Concepts Inc., with a $40,000 claim. The city Tax Department holds a $5,000 claim for property taxes.

Zane's firm is trying to develop the assisted-living facility on Hawai'i Kai Drive, mauka of the Keahole Street intersection. According to state records, the company purchased almost 14 acres of property in the area for $6.7 million in 2000.

The project was one of what Zane in 1999 said were six senior-living projects totaling 700 units planned for construction.

Zane, chairman of Zane Development Group, in February 1999 said he was about to begin construction of the $14 million Manor at Mahinui in Kane'ohe. A phone number under that name is disconnected.

Another project listed in the phone directory, Manor at Kapolei, also has a disconnected number.

A spokeswoman for Campbell Estate, which signed a lease with Zane to build the Manor at Kapolei in late 1999, said the $15 million project never broke ground.