Preserving the Turtle Bay Property

Governor Lingle announced a bold plan for the State to acquire the Turtle Bay property on O‘ahu’s North Shore during her 2008 State of the State Address. Her vision is to protect the pristine, undeveloped lands and secure the long-term economic viability of the existing resort.

The 17-member Governor’s Turtle Bay Advisory Working Group will help develop and review various ideas, recommendations and plans that are being proposed on how to acquire the property. The Advisory Working Group will also serve as a communications channel to the Ko‘olauloa-North Shore communities.

In an editorial in the Honolulu Advertiser, Bill Paty, chair of the Governor's Turtle Bay Advisory Working Group, wrote:

"Lingle asserted, and correctly so in my view, that 'far too long and too often, important pieces of rural Hawai`i have been sold to the highest bidder and then developed into something that forever changed the essence and character of the entire area.' As a community, regardless of whether we live in the city or country, on O`ahu or one of the other islands, we owe it to Hawai`i's future generations to preserve special places like the Turtle Bay property."

• Read the editorial.

The Governor’s Turtle Bay Advisory Working Group (TBAWG) held its ninth meeting on July 23, 2008. 

SUBCOMMITTEE REPORTS
 
Acquisition Options
Steve Metter, CEO and principal, MW Group, Ltd., and chair of the Acquisition Options Subcommittee, reported on the progress of discussions with potential buyers. Without disclosing restricted information, he emphasized that the process would take time, particularly since many lenders are involved and will have to coordinate their response once buyers officially reveal themselves through Eastdil, the New York-based real estate brokerage firm hired by the owners-creditors to market the property, or through Mr. Stanford Carr, Oaktree's designated Interim Management Officer.
 
In the meantime, the Acquisition Options Subcommittee continues to meet with interested buyers and is encouraged that many of them are proposing modest increased building density or none at all as part of their business models for the existing resort footprint. With capital markets still difficult, Metter said it could be tough for buyers to get significant leverage to acquire the resort. Meanwhile, those same market conditions are putting stress on the seller, who is seeking to sell the resort at a higher value. Metter anticipated more concrete acquisition news to be available within the next 30-60 days, after buyers formally declare their interest. In the meantime, the subcommittee continues to support the process of responding to inquiries from potential investors that are committed to the resort's long-term success and to addressing community concerns.
 
Technical Concerns
Laura Thielen, DLNR director and chair of the Technical Concerns Subcommittee, reported back on requirements of the City and County of Honolulu's 1986 Unilateral Agreement (UA) with the resort that have or have not been fulfilled, including one of the UA's directives that the resort work with DLNR to create a marine life conservation area. DLNR has gone back to its records to research this UA requirement and its feasibility. Thielen indicated that a conservation area designation could benefit the preservation effort by bringing in additional partners, and that she was working with The Nature Conservancy to survey the marine resources in the area. The Subcommittee will continue to review the UA to determine if there are other requirements that may have an impact on any future acquisition strategy.
 
CAMPAIGN TO SAVE TURTLE BAY
 
Lea Hong, Hawaiian Islands Program Director for The Trust for Public Land, shared details about a joint effort between The Trust for Public Land, North Shore Community Land Trust and Ko'olauloa-North Shore Alliance to raise five million dollars in private funding to support the preservation of Turtle Bay. As part of this effort, an invitation-only reception featuring the auction of an original painting of Kawela Bay by renowned North Shore artist Bill Braden will be held at the Hawai'i Prince Hotel at 5:00 p.m. on August 22. A portion of proceeds will go to the Campaign to Save Turtle Bay fund administered by The Trust for Public Land. To find out more about the art auction or to donate, visit www.tpl.org/turtlebay or contact: Keith Kraughto, Hawaiian Islands Program Development Director, The Trust for Public Land, 212 Merchant Street, Suite 320, Honolulu, HI 96813, (808) 524-8560, keith.kraughto@tpl.org.
 
ANNOUNCEMENTS
 
The Reverend Robert Nakata from the Defend O'ahu Coalition (DOC) reported that the Land Use Commission had delayed ruling on DOC's petition regarding the continuing validity of certain land use classifications. Reverend Nakata also handed out copies of correspondence between the State Historic Preservation Division and Kuilima Resort Company regarding the likely existence of certain burials along the shoreline. 
 
NEXT MEETING
 
The next meeting of the Turtle Bay Advisory Working Group has been scheduled for Wednesday, September 3 at 10 a.m. in the Governor's conference room at the State Capitol.