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The Honolulu Advertiser
Updated at 10:11 a.m., Wednesday, December 10, 2008

Makena Resort takes a step toward approval

By CHRIS HAMILTON
The Maui News

WAILUKU - With lame-duck Council Member Michelle Anderson demanding more conditions on plans for the Makena Resort, the County Council slowly but steadily moved to act on first reading to approve zoning for the resort project district, The Maui News reported today.

At a special meeting that ran late into the night Tuesday, the council considered a package of bills recommended by the Land Use Committee - but not without a day of public comments for and against the move to allow the resort to proceed.

Even speakers against the resort development appeared resigned, with one saying that the County Council's approval may be a "foregone conclusion."

But when the public testimony ended at sunset, council discussions turned into a detailed dissection of proposed conditions that had Anderson continuing to refine the restrictions she wanted to see.

The Land Use Committee - made up of all nine council members - had voted 7-2 to recommend the zoning changes sought by the resort owners, with a 41-item list of conditions. The committee action came decades after the original owner, Seibu Fudosan, had sought to modify the master plan that was originally approved 30 years ago.

It's been four years since the revised plan was stalled by council demands on Seibu to limit the development, and 17 months since new owners represented by Wailuku developer Everett Dowling stepped in.

If approved, the investors are ready to move ahead with building permits applications within six months, said Dowling, who is the project's general partner. The council was considering bills to allow zoning for 603 acres, with a unilateral agreement listing the conditions tacked on to the bills.

Council members supporting the resort zoning said they were motivated by the need for construction and hospitality jobs.

If the bills pass first reading, a second and final reading will be required, possibly when the current council holds its final meeting of its term. A new council takes office Jan. 2.

Through the daylong hearing Tuesday, opponents reiterated arguments that Makena Resort, an area of more than 1,800 acres, will destroy a pristine environment as well as culturally significant areas. They also claimed that Makena Resort construction jobs will only be temporary.

Anderson, a critic of development, did not seek re-election this fall, but stuck to her positions in one of her final meetings on the council. Quite often, she was the only council member to question testifiers and Dowling at length.

"This is gonna happen whether I like it or not," she said to one construction industry representative. "And I realize that."

Dowling said development of the resort will take up to 15 years to complete and his plans include replacing the outdated Maui Prince Hotel. However, he said he will retain staff in the interim in Makena Resort's new golf and club houses.

He said the resort will add 20 percent more employees to its current staff of 400 for the expanded development, which will include about 70 condominium units that can be used as short-term rentals. A key financing group, Morgan Stanley, owns roughly 90 percent of the property, Dowling said. His corporation, Dowling Co., has devoted $20 million so far to Makena Resort.

The hotel and golf course are losing money right now, and the entire property's value dropped an estimated 25 percent with the international economic crunch, Dowling said. He said occupancy was 40 percent on a good weekend.

If the investors do not get the land-use entitlements, they will not get the financing they need to make the development happen.

"There's no way a bank is going to lend money to this when the zoning has been sitting out there for years," Dowling said.

Dick Mayer, Maui General Plan Advisory Committee co-chairman, urged again that the zoning for the resort be put off until the new General Plan - still under review by the advisory committee - is approved. He said his research revealed the resort will be a $7 billion project that will have a significant impact on the island.

Supporters of the zoning request argued that Dowling has shown himself to be a sustainable builder who uses green technology and cares deeply about the environment and people in the community.

There was emotional testimony on both sides.

"We have allowed off-islanders to come here so much that we cannot say the island belongs to us," said community advocate Gordon Cockett, who at one point broke down during his testimony.

Stephen West, Maui Democratic Party labor committee chairman, championed Dowling's contributions with projects for Hawaiian Homes, saying he is on Maui for the long haul and has donated $3 million in three years to Maui charities. He said the county needs to support responsible and caring local developers such as Dowling.

Another union leader, Lehua Clubb, questioned the purpose of organizations such as Save Makena that have persisted in opposing all development in the region.

"Tell me, what is Save Makena?" said Clubb, who is unit representative for the International Longshore and Warehouse Union at the Maui Prince Hotel. "Are you trying to save us from ourselves? Get real."

takes Opponents of the 1,000-unit development plan said there are more than enough previously approved projects - more than 16,000 units - that other developers could move forward with to stimulate the economy. Dowling has county approvals, or entitlements, for some of these developments.

"I do care about Makena," said resident Jason Medeiros. "I do care about the land. We don't need an economic stimulus. We need an economic kick in the pants."

Other critics focused on the conditions imposed by the Land Use Committee, protesting that they were inadequate.

One allows affordable housing units outside the resort boundaries to comply with the county's Residential Workforce Housing Policy, requiring 50 percent of new housing units be priced affordably when market units are sold for more than $600,000. Dowling said that he will build 500 affordable units in the Kihei-Makena Community Plan district, which stretches from Maalaea to Makena.

"This is segregation," said Kai Nishiki, an unsuccessful council candidate. "We want affordable housing built on-site."

Irene Bowie, executive director of the Maui Tomorrow, demanded a new environmental impact statement saying the original EIS for the resort was completed in 1974, when it was first proposed.

Resort representatives said they have surveyed the entire area for archaeological sites and will preserve them. Dowling also agreed to a condition to have State Historic Preservation Division and Office of Hawaiian Affairs approvals on each special management area permit for projects within the resort.

As revised, the Makena Resort master plan reduces the number of housing units from 1,600 to 1,000. Half would be multifamily units and the other half would be single-family homes.

* Chris Hamilton can be reached at chamilton@mauinews.com.