Update - April 2, 2008
Aloha! This update is from the third meeting of the Governor’s Turtle Bay Advisory Working Group held April 2. To receive regular updates, email TurtleBayAWG@gmail.com.
RESORT VIABILITY
Assuring the long-term economic viability of the existing Turtle Bay Resort and stability of its workforce are critically important. Up to 700 employees work and support the resort, the largest employer on the North Shore and an economic engine for sustained prosperity of that community. The resort must be able to generate sufficient, dependable revenue for its owners and operators to remain in business.
At the April 2 meeting, the Long-Term Resort Viability Committee presented a report identifying the elements necessary for the success of new ownership. The committee report highlighted that the undeveloped environment surrounding the resort, its isolation from other tourist facilities, and the rural lifestyle of the North Shore are currently being used to successfully market the resort and maintain high occupancy rates.
The committee proposed that any new development on the property necessary for economic viability be restricted to the existing footprint and not develop the remaining open space. The committee also identified other key criteria to be considered in acquisition, including protection for public access to the shoreline, the importance of the mauka lands for agricultural uses and existing water and sewage facilities, the potential for renewable energy projects, the need to upgrade facilities to “green” standards, and utilizing the unique natural assets of the area in future marketing for the resort (e.g., ecotourism, film industry, wellness, golf).
The committee concluded that, although a limited expansion of the existing resort campus in the currently developed area may be necessary to maintain viability and quality employment, community support for a new plan is necessary as well. Read the full report.
ACQUISITION PROGRESS
Potential buyers continue to contact the State of Hawai‘i and the Acquisition Committee to explore options for purchasing developed components of the property. With the assistance of a contracted appraiser, the committee is identifying the possible price ranges for pieces such as the resort, golf course, mauka lands and other businesses. Also underway is an economic sustainability study of the resort operations to determine long- term viability in its current form or if limited expansion is allowed within the existing developed area.
The committee acknowledged the positive message sent by the Legislature’s support of SB2423, the bill allowing the Governor to acquire the Turtle Bay property. Final passage will demonstrate to creditors and potential buyers that the State is ready for acquisition.
LEGISLATION UPDATE
Support for two bills currently advancing toward final passage in the Legislature is important to ensure that the full range of tools are available as discussions with the owners, creditors, partners and the community move forward. Residents are encouraged to contact state legislators to express support for these measures.
Acquisition Tools Bill. SB2423 SD2 HD1, the bill authorizing the Governor to acquire the Turtle Bay property, passed out of the full Senate, passed through three House committees, and will be heard in conference. The legislation contains $250,000 for negotiations with Oaktree, but the amount of any bonds necessary to support the purchase has not yet been determined.
Land Conservation Fund Flexibility. SB3102 SD2 adds flexibility to DLNR's land conservation fund by allowing public and private moneys to be added and distributed as grants for the acquisition of state conservation lands. This bill has passed the Senate and passed Thursday through the House Finance Committee.
GOVERNOR’S LETTER TO SENATOR DANIEL INOUYE
To gain federal financial resources for the Turtle Bay acquisition, Governor Lingle wrote a letter on March 31 to Senator Daniel Inouye asking for his support in Congress. The Governor indicated that federal funding could be available through the Department of Defense Buffer Lands Program and the Department of the Interior’s Land Water Conservation Fund and Cooperative Endangered Species Conservation Fund. Also, the Farm Bill could include funds for acquiring 400 acres of agricultural land mauka of Kamehameha Highway.
Please contact Senator Inouye to express your support for federal funding:
Web Form: inouye.senate.gov/abtform.html
NEXT MEETING
The next meeting of the Turtle Bay Advisory Working Group is scheduled for Wednesday, April 16, 2008 at 10 a.m.
