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The Honolulu Advertiser
Posted on: Wednesday, September 3, 2003

Local investors purchase Bayview Golf Course

By Andrew Gomes
Advertiser Staff Writer

Three local real-estate investors have bought the run-down Bayview Golf Course in Kane'ohe from its troubled Japan-based owner in a deal that will pay off $1 million in delinquent city property taxes and repair the 18-hole executive course that caters mostly to residents.

The Shidler Group in partnership with J.D. Watumull and Joe Leoni purchased the 120-acre property from BVGP Inc. for an undisclosed price estimated to be near the city's assessed value of $9 million.

The acquisition, completed yesterday, includes the par-3 course, a double-decker automated driving range, a 36-hole miniature golf course, an arcade, a restaurant and a pro shop.

Much of Bayview had fallen into disrepair in the past few years as operations failed to generate enough revenue to cover debt service, taxes and maintenance. As a result, bunkers are overgrown, automated ball-dispensing machines are broken and the back nine holes are closed.

The city, which two years ago considered buying or foreclosing on the property, is owed $1 million in property taxes, some of which have not been paid since 1998.

Larry Taff, managing partner of the Shidler Group, said back taxes will be paid, and improvements will be made to the course, where it costs $12 to play nine holes twice without a cart on weekdays. "Everything gets brought current," he said.

Tommy Ukauka, Bayview's golf director, has agreed to continue operating the course with current employees, Taff said.

The new owners expect to spend roughly a couple hundred thousand dollars on new range balls, grounds-keeping, ball-dispensing machine repairs and other upgrades to help reverse losses.

"We don't have to do something extraordinary for this to be a good investment," Taff said. "By just catching up on some deferred maintenance, we can increase income to where it was a few years ago. If we are successful in this regard, this will make for a very nice investment."

Bayview was built in 1963 as a nine-hole short course designed by one of Hawai'i's golf legends, Jimmy Ukauka, the late father of Bayview's current golf director. The links, which became a Windward landmark, remained popular by charging the cheapest green fees on O'ahu for a private course and providing lights for night play.

A company affiliated with BVGP, Pacific Atlas (Hawaii) Inc., bought Bayview in 1988 and other property later for about $23 million, according to property records.

The Japanese firm proposed turning the old course into a full-sized championship course for international membership.

The plan was opposed by the City Council and community members concerned about possible pesticide and herbicide runoff into Kane'ohe Bay and the preservation of Waikalua-Loko Fishpond.

The city agreed to a compromise, allowing expansion of Bayview into an executive 18-hole course with expanded facilities that initially opened in 1997.

Taff said that what BVGP did with the upgrades was nice, but that the company borrowed too much money. "Just servicing the debt was just overwhelming to them," he said.

Within the past six months, the back nine holes were closed when BVGP couldn't pay rent on a portion of a fairway and cart path leased by BVGP.

Taff said his group hopes to restore the lease relationship with the landlord and reopen the back nine holes. The investment partnership also will evaluate potential alternate uses for the property, though Taff said there are no current ideas to change its use from golf.

"I think there's a market for this," he said. "People can take their kids out and it doesn't cost an arm and a leg to play."

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