Makaha deal cut to gain tax credits

By Andrew Gomes
Advertiser Staff Writer

The Harry & Jeanette Weinberg Foundation and Ko Olina Co. will buy the Makaha Resort hotel and golf course for use as a job-training facility, to secure support from Gov. Linda Lingle for tax credits to build an aquarium at Ko Olina. Advertiser library photo • Jan. 17, 2000

The proposed acquisition, which is subject to completion following a detailed study by the buyers, replaces a plan by Ko Olina master developer Jeff Stone to establish a hospitality training campus within future hotel and timeshare complexes built at Ko Olina.

The sales price was not disclosed.

Under the revised proposal, described to legislators last week, Ko Olina developers would be able to start job training programs quicker using the existing 173-room Makaha hotel and golf course. A second nearby golf course is not part of the resort.

A binding agreement to create a job training program predominantly for Leeward Coast residents is a requirement Lingle said she needs to support legislation that would give $75 million in tax credits to build an aquarium at Ko Olina.

The legislation, Senate Bill 377, was approved by the House Finance Committee last week and is headed for a full vote on the House floor. Former Gov. Ben Cayetano vetoed a similar bill last year.

Stone said curriculum is being designed and would include vocational training in hotel and golf course management, culinary skills, sales and marketing, security and accounting.

Teachers and students would operate the resort for visitors. Stone said he hopes current employees, estimated at about 100, will continue working at the resort.

The Weinberg trust, which agreed to donate land it owns at Ko Olina for the aquarium site, would primarily finance the Makaha purchase from an affiliate of Wisconsin-based Towne Realty Inc.

Weinberg representatives did not return a call for comment. Chris Lau, president of Towne Realty in Hawai'i, declined to comment on sale plans.

Towne Realty bought the shuttered resort for $6.1 million in October 2000 and reopened a renovated portion of the hotel a year later. The company planned to renovate the entire property and market it as a kama'aina golf resort.

Makaha Resort was originally developed in 1969 by the late Island financier Chinn Ho. ANA Hotels Hawaii Inc. acquired the property in 1979, then closed the hotel and laid off 175 employees in 1995. The 18-hole golf course remained open throughout.

Advertiser staff writer Karen Blakeman contributed to this report. Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.