By Togee-Jon Midpoint, Keep the North Shore Sane
(the scene) 1997 - The real estate market in California and Japan is bleak. Both bubbles burst in the early 1990's and the casualties from the fall out include the Pacific Northwest, California and in the pincher of both recessions - Hawaii.
Hawaii's economy is hurting, home prices have declined for at least 6 years and the factors that drove it up - Japanese and primarily California visitors and investors have much larger issues to deal with than leisure market investment options.
Turtle Bay since the big marketing bang of the late 1980's - PGA and LPGA golf tournaments, Jazz Festivals, lavish parties, big plans for expansion has been steadily declining and the place is gradually starting to resemble its nickname "Beirut". Chunks of concrete are falling off the building, the roof leaks, the keiki playground is closed due to hazardous equipment, there is no maintainence budget and both golf courses are suffering from lack of money to take care of priorities. The Japanese owners are out of money, can not execute their development plans because they have no dough, the market is awful and they are doing NOTHING to make the place better. They cut spending to pretty much $0 and put the property up for sale.
YOU are Mr. Oaktree with offices in L.A. and N.Y. sees something come across your desk. "800 plus acres on Oahu for sale. Distressed owner from Japan, needs fixing up, with approvals to build 4 more hotels and 2 condos developments. 27 holes of golf, with potential to have 36 holes".
Interesting.
At this point in time, you Mr. Oaktree have a number of big things to consider. How much do I pay? Can this place be fixed? How much will it cost to be fixed? Will Oahu be an attractive destination again? If I fix it will people come and pay what I need them to pay to make money?
You do not consider that if you do everything you need to do you might not be able to build out the Resort.
We know how this story plays out. You Mr. Oaktree buy the Resort in 1998. It takes 2-3 years to get approvals to start the massive remodeling of the hotel. In 2001, there are cranes in the air and work is going full blast. 9-11-01 is another blow to Hawaii's tourism industry, people are afraid to fly and the economy nose dives.
Mr. Oaktree keeps going, by time he's done. Essentially a new hotel is done, new pools, Lei Lei's, Ola, new 9 holes of golf, 2 remodeled courses, Ocean Villas condos, hiking trails, etc. etc. etc. - $100,000,000 plus in investment.
Now Mr. Oaktree wants to put in infrastructure to build more stuff. The infrastructure will deliver to the 6 zoned parcels water, power, cable, sewer, etc.. The maximum combined number of units is 3,500 as the Unilateral Agreement states. Those are the conditions that he bought the property under, in full compliance with all laws.
In January 2006, UNITE HERE Union Local 5 who was in a labor dispute and boycotting Turtle Bay notifies and starts organizing some North Shore people against Oaktree. Which brings us to today.
Hawaii's economy is hurting, home prices have declined for at least 6 years and the factors that drove it up - Japanese and primarily California visitors and investors have much larger issues to deal with than leisure market investment options.
Turtle Bay since the big marketing bang of the late 1980's - PGA and LPGA golf tournaments, Jazz Festivals, lavish parties, big plans for expansion has been steadily declining and the place is gradually starting to resemble its nickname "Beirut". Chunks of concrete are falling off the building, the roof leaks, the keiki playground is closed due to hazardous equipment, there is no maintainence budget and both golf courses are suffering from lack of money to take care of priorities. The Japanese owners are out of money, can not execute their development plans because they have no dough, the market is awful and they are doing NOTHING to make the place better. They cut spending to pretty much $0 and put the property up for sale.
YOU are Mr. Oaktree with offices in L.A. and N.Y. sees something come across your desk. "800 plus acres on Oahu for sale. Distressed owner from Japan, needs fixing up, with approvals to build 4 more hotels and 2 condos developments. 27 holes of golf, with potential to have 36 holes".
Interesting.
At this point in time, you Mr. Oaktree have a number of big things to consider. How much do I pay? Can this place be fixed? How much will it cost to be fixed? Will Oahu be an attractive destination again? If I fix it will people come and pay what I need them to pay to make money?
You do not consider that if you do everything you need to do you might not be able to build out the Resort.
We know how this story plays out. You Mr. Oaktree buy the Resort in 1998. It takes 2-3 years to get approvals to start the massive remodeling of the hotel. In 2001, there are cranes in the air and work is going full blast. 9-11-01 is another blow to Hawaii's tourism industry, people are afraid to fly and the economy nose dives.
Mr. Oaktree keeps going, by time he's done. Essentially a new hotel is done, new pools, Lei Lei's, Ola, new 9 holes of golf, 2 remodeled courses, Ocean Villas condos, hiking trails, etc. etc. etc. - $100,000,000 plus in investment.
Now Mr. Oaktree wants to put in infrastructure to build more stuff. The infrastructure will deliver to the 6 zoned parcels water, power, cable, sewer, etc.. The maximum combined number of units is 3,500 as the Unilateral Agreement states. Those are the conditions that he bought the property under, in full compliance with all laws.
In January 2006, UNITE HERE Union Local 5 who was in a labor dispute and boycotting Turtle Bay notifies and starts organizing some North Shore people against Oaktree. Which brings us to today.
Turtle Bay Opponents - Do the Ends Justify The Means? (Part 2)
(the scene – 2006) UNITE HERE Union Local 5 who was in a labor dispute and boycotting Turtle Bay notifies and starts organizing some North Shore people and organizations against Oaktree and the plan to proceed with the development at Turtle Bay.The information from Local 5 is distributed and a campaign starts to block the development.
The main point of Defend Oahu Coalition, Keep The North Shore Country and others is that “20 years is too long for a plan to exist. It needs to be reevaluated. It needs a new EIS. Oaktree is dusting off a 20 year old plan. Etc. etc. etc.” The summation of the views of this are expressed by KK in the video of the demonstration from KHON at Turtle Bay 0n 9-5-06 - KHON Monday 9-5-06 "We don't think you just dust off a 20 year old plan and to ahead with it."
Ironically the “20 Year” argument presented in the guise of rationality by Turtle Bay opponents is the most inaccurate and dangerous statement they make.
The facts as they were outlined in part 1 show, this plan has been actively going by the current owner since 1997 at the latest.
Turtle Bay’s most current plans started in 1997. That was about 10 years after the Unilateral Agreement was unanimously approved by City Council and 9 years ago. That is actually a small time for a project like this. Any large scale real estate project that requires investment, commitment, plans, construction, engineering, permits, conditions, planning dept. approvals, zoning, architecture, design, etc. has a timeline that resembles Turtle Bay's project. In Hawaii things take even longer than most places. For example, K.K. knows how long academic projects that merely move minds, people, paper and computers take. Would 3-5 years from conception of an academic project at the University level to starting the program be considered too long? Absolutely not. With Turtle Bay, where the project is infinitely more complicated, are we to believe this timeline is less complicated than a research project?
The people who are opposed to further development at Turtle Bay are so adamant in their desire to stop them that they will do anything, say anything, try anything, partner with anyone and in general resort to any means possible to try and stop Oaktree.
I think that the renunciation of reason, truth and honest/open dialogue over ANY issue is harmful to the future of the North Shore.
There are so many other distortions out there.. If the end justifies the means, I guess people feel like they can say and do anything to get their way. I think that is wrong.
If you oppose Turtle Bay let's know the truth, learn the truth and tell the truth.
Those opposing Turtle Bay, what are your ideas about the property rights that Mr. Oaktree has?
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