Sen. Fong's family wins bid to keep visitor park
By Andrew Gomes
Advertiser Staff Writer
Former U.S. Sen. Hiram Fong Sr. couldn't save his Kahalu'u nature park from a foreclosure auction yesterday, but three of his children and eight grandchildren made the winning bid to keep the visitor attraction in the family.
With more than $700,000 in debts, Senator Fong's Plantation & Gardens attracted a lively and sometimes emotional round of bidding from three parties who pushed up the price of the park's 212-acre main asset 45 times, from $73,500 to $185,000.
"Going once, going twice, sold," said foreclosure commissioner Clyde Umebayashi in a Circuit Court hallway as members of the Fong hui led by Patsy Fong — wife of the senator's middle son, Rodney — exchanged hugs amid applause.
"We knew we had to do this," said Rodney Fong, who oversees agricultural operations at the park and lives in one of three houses on the leasehold property. "We want to carry on my dad's legacy."
The family victory was tempered a bit by a second auction in which the Fongs lost a half-interest in 508 acres of fee-simple conservation land adjacent to the visitor park, while retaining the other half.
In that auction, six parties, including a hui of 100 people who proposed returning the land to traditional Hawaiian cultural stewardship, bid up the price from $36,750 to $210,000.
In the end, it came down to Susan Lins, a personal investor and broker for Abe Lee Realty, and Elizabeth Lindsey Buyers, a "friendly buyer" for the Fongs and wife of former C. Brewer & Co. Ltd. chief executive J.W.A. "Doc" Buyers.
FONG
Again there were hugs, this time of sympathy, and no applause as Lins was declared the winner.
The Fong family's loss saddened Hiram Jr. "It's like losing a child, almost," he said. "The land has been in the family 50 years."
But the transaction is not expected to affect park operations.
The foreclosure sales followed preliminary bids last month in which two investors not related to the Fongs made high bids of $70,000 for the park and $35,000 for the conservation land.
Rodney Fong said the family, taking its cue from Hiram Sr., had put together Grand "C" LLC last week to keep hold of the park property, which started as a small plot of land his father bought in 1950 to keep horses for Rodney and his siblings.
The elder Fong, who served in the Territorial Legislature for 14 years and became in 1959 the first Asian American elected to the U.S. Senate, established the visitor park in 1988, 11 years after retiring from the Senate.
Hiram Fong Jr. said it was his dad's dream to have a garden open to the public, and that the family, including the senator's daughter, Merie-Ellen Fong Gushi, were going to try to preserve that wish.
"Twenty years ago, walking on the property," he recalled, "Dad said, 'If you ever sell this property, I'll come back and haunt you.' And he would. It's a big relief."
While Hiram Sr., who turned 97 last month, can rest easier after yesterday's auction, he is trying to clear up other financial and business troubles. A self-made millionaire several times over, he filed for bankruptcy protection in March and resigned from Finance Factors Ltd., a local financial institution he helped establish.
He also is embroiled in a dispute over control of Market City Shopping Center and other real estate holdings managed by another son, Marvin, who did not participate in the park purchase.
Bank of Hawaii will receive the $395,000 in combined proceeds from the real estate auctions, and likely be awarded a deficiency judgment for the debt balance of roughly $300,000.
Hiram Sr. and his wife, Ellyn, borrowed $1 million from the bank in 1987 to develop the botanical garden, which offers tram tours through five valleys and functions as a bird sanctuary.
The park was named best attraction in 1999 by the Hawaii Visitors & Convention Bureau, and according to operators is visited by more than 100,000 people a year.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
