controversial Makena Resort luxury development $7 billion, 800-unit project in South Maui

Makena decision weighs heavily, councilors say

By CHRIS HAMILTON, Staff Writer

reprinted courtesy Maui News 12/12/08

WAILUKU - The day after voting in favor of the controversial Makena Resort luxury development, Council Member Joe Pontanilla said he was in his office writing, and struggling, to find the right words to express why he voted yes.

Pontanilla said he didn't think that the $7 billion, 800-unit project in South Maui was poorly conceived or that its general partner, Everett Dowling, couldn't be trusted to fulfill his promises to build the accompanying affordable housing or that Dowling wouldn't preserve natural and cultural resources on the 1,800-acre property.

"It was especially tough for me because we heard a lot of testimony from Maui Prince (Hotel) employees who were worried about their jobs, and people in the construction industry hoping for some economic stimulus," Pontanilla said.

On Wednesday night, the Maui County Council granted first-reading approval to a bill providing zoning for the Makena Resort to proceed with development under its revised master plan. The 5-3 vote followed a two-Makena day-long hearing. For the retired GTE Hawaiian Tel island manager, Pontanilla said the prospect of more layoffs because Dowling's request to rezone 603 acres to build the Makena Resort would fail under his watch was a personal one.

When Pontanilla worked for the telephone company, he had to lay people off. He said he always took to heart the plight of the families who lost their health care and homes because he could no longer provide them with jobs.

It's a feeling he wants to avoid again, if at all possible, he said.

Council members didn't vote until after 11 p.m. Wednesday on Makena Resort, which has been on the books for 30 years. After the vote, they all said they would reserve their customary public comments until after the second and final reading, scheduled for the final regular council meeting of the term on Dec. 19.

The package of bills also approved modifications of a unilateral agreement setting 43 conditions on the zoning with Dowling and his main partner, Morgan Stanley.

"I accept the conditions," a slightly disheveled Dowling said just prior to the vote Wednesday night.

On Thursday, he said he was anxious to move forward, expecting final approval in a week. He also said he could accept the conditions imposed on the project district that reduce the number of housing units to be built and sharply restrict the resort to a single hotel now in operation as the Maui Prince Hotel.

The council attached a unilateral agreement listing 43 conditions to the zoning bill, with Council Chairman Riki Hokama saying the agreement would have to be signed and submitted to the county before the council would act on second and final reading.

"I will have no problem signing the agreement as it was approved last night," Dowling said Friday. "There was a lot of give and take. We didn't get everything we wanted, but we're grateful for the legislation being approved finally."

Pontanilla along with Council Members Mike Molina, Mike Victorin, Bill Medeiros and Hokama voted in favor of the project. Council Member Gladys Baisa was excused.

The opposition was led by Michelle Anderson, who holds the South Maui residency seat. Council Members Jo Anne Johnson and Danny Mateo also voted no.

Mateo on Thursday said he was upset about the conditions of the affordable housing component. So far, Dowling has made some contributions to local nonprofits that provide housing for homeless people and seniors. Mateo said he wanted a guarantee in writing that the pledged 400 affordable homes would be built and would go to working families.

He also was disappointed to see an amendment fail that would have made certain that Dowling supply affordable housing at the rates required by Mateo's work force housing ordinance as it stands today. Instead, the Makena Resort conditions state Dowling can follow the ordinance as it exists when he gets building permits.

Mateo said he's worried that legal and political challenges could weaken the work force housing ordinance by then. Right now, it requires developers building subdivisions worth more than $600,000 per unit to provide at least 50 percent of their inventory at prices deemed affordable by federal housing guidelines.

Makena Resort homes are expected to fetch up to $14 million a piece.

Like Pontanilla, Medeiros also said he was motivated by those who testified who were on the verge of losing all they have. Dowling also has a good reputation in the community, he said.

Dowling has 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 other positions at Makena Resort's new golf clubhouses.

Medeiros and Pontanilla said they were impressed that Makena is one of only two resorts not to lay off employees in these difficult economic times. Dowling employs 400 people at Makena and said the expansion will result in many more jobs.

"It was a difficult decision, and I think the members realized that we could preserve as much as we could in Makena as well as stimulate the economy and assist the construction and resort community," Medeiros said. "And I think the vote reflected that."

As a Native Hawaiian, Medeiros said, preserving endemic flora and fauna as well as archaeological sites was foremost to him as well. But before he ever even got a chance to propose a condition guaranteeing that cultural sites be surveyed or offshore waters be tested for pollutants, Anderson had already thought of it.

"I really appreciate member Anderson's perspective on preservation," Medeiros said. "She represents trying to save those things very well, and the Hawaiian community appreciates her advocacy for that, and so do I."

She might be dogged and sometimes dominate a meeting, but she gets the job done, he said.

After grilling testifiers and Dowling for days, Anderson on Wednesday night said she was too exhausted to give her final comments just then.

Johnson said she believes the council ensured that Makena Resort has adequate water, parks, roads and other infrastructure.

"We've done the best we can do considering the circumstances," she said.

"I empathize with the people who are facing foreclosure. When my father was laid off for a long time when I was a child, we lost our home. My heart also cries for the beauty of our island that every day is being encroached upon by development."

Dowling said the project will be ready to move ahead with building permits applications within six months of final approval of the zoning.

"We're anxious to get the last approval so we can begin working on our plans and submit our applications to proceed," he said.

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

reprinted courtesy Maui News 12/12/08

brought to you by Wailea Makena Real Estate Inc.

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