The company that the Baldwins developed, Maui Land & Pineapple Co., has sold the land to Mainland buyers in a move that has created an uproar among the island's arts community

"It's kind of heartbreaking, actually," said Marion Suda, a long-time hui volunteer and artist who has taken numerous classes there over the years.

Hui officials said they were surprised and saddened to learn the 10.5-acre estate had been sold out from under them. They said they had always believed there was an oral agreement that Kaluanui would be the hui's permanent home, and they had long hoped to purchase the property.

David Cole

"We made extraordinary efforts to achieve accommodation," Cole said.

Cole said one of his priorities when he took over the financially ailing pineapple company was to sell off nonessential properties. "My first priority is the health and vitality of this company, which has an impact on the health and vitality of this community," he said.

John Lofgren, the hui's executive director, acknowledged the organization did have opportunities. But no agreement was reached for a variety of reasons, he said, including that the board felt it wasn't being given enough credit for nearly $2 million in improvements accomplished over the years.

Other obstacles, he said, included changes in leadership on both sides of the negotiations and modifications in the company's sales offer, including a recent demand that the hui also buy an adjacent 14 acres rather than just the 10.5 acres it currently leases.

The hui hired a consultant to provide an updated appraisal of the market value of the property when the board learned about the sale, Lofgren said.

"Nonprofits just can't move that fast," said Lofgren, a veteran museum director who was hired last month. "In all of my experience, I've never seen a large corporation treat a nonprofit this way."

Lofgren said the hui is looking at a variety of options, including legal issues. One of the issues: What obligation does the company have to comply with the wishes of the original donor, Ethel Baldwin, who founded the hui in 1934?

Designed by noted architect C.W. Dickey, Kaluanui was built in 1917. When the family stopped using the mansion as a home in the 1950s, the estate became the property of Maui Land & Pineapple. In 1976, Ethel Baldwin's grandson, the late Colin Cameron, former president of the company, granted Hui No'eau the use of Kaluanui as a visual arts center.

The company has been leasing the property for $100 a year, while the hui has been adding facilities and upgrading the aging mansion. A major reconstruction job was recently led by John Baldwin, Ethel's son.

Whatever happens with the sale, the arts center won't be moving anytime soon. Under a condition of sale, the buyer must honor the hui's lease, which expires in April 2015.

Cole said he urged a representative of the hui's board Friday to tender a backup offer.

"It may take a very long time for the transaction to close, and lots of things can happen," Cole explained.

The buyers are Austin, Texas, commodities trader Michael Marcus and his wife, Janet Zand, co-founder and formulator of Zand Herbal Products, as well as an author, doctor of Oriental medicine, naturopath and certified acupuncturist whose clientele includes celebrities and professional athletes.

Zand, who says she was unaware of any offers, understanding or discussions between Maui Land & Pineapple and the nonprofit, has informed the hui board that they are willing to donate title to a substantial portion of the neighboring 14-acre parcel that is also part of the sale.

Zand, who describes herself as a supporter of the arts, also has pledged to work with the hui and open up the mansion from time to time for fund-raising events.

Cole said the company also is willing to work with the hui in perhaps relocating to its residential development in nearby Hali'imaile. Lofgren said the offers are generous but, at this point, they are only that — offers.

In the meantime, many in the arts community are reeling, having vilified the company in letters to local newspapers. Hui supporters say the firm should have tried harder to work out a sale to the nonprofit. They contend the hui and its Kaluanui home is a cherished Maui institution, a cultural icon and public asset. They say they feel betrayed by a company whose corporate values have eroded to reflect the bottom line.

"I know this: If (former MLP chief and Baldwin grandson) Colin Cameron were alive, it wouldn't be like this," Suda said.

But not everyone feels losing Kaluanui is a bad thing. Longtime hui volunteer Emily Bott said the aging structure is an albatross in many ways. While it is a beautiful building, there's too much upkeep required, she said, and there are flaws that don't further the goals of the hui.

"If we look back in 10 years, I think the hui will be in a better position," she said. "I say suck it up and let's move forward."