A New Direction on the Horizon

A proposal to redevelop Makena Beach Golf Resort cleared a major hurdle this past Tuesday (May 27) as the Maui Planning Commission voted to grant ATC Makena Holdings LLC a special management area use permit for their proposed project.

There are various ideas being tossed around with how they want to redesign the existing hotel. So far, the resort owners are planning to redevelop the current 310-room hotel into 46 apartment units and adding a new 76-room hotel, 12 multifamily condominium units, five spa hale, and nine beach cottages.

“The hotel in its current form is actually losing money. It’s not economically sustainable,” said Ed Divita, senior development and construction manager of Discovery Land Co., which has partnered with ATC Makena to develop the proposed project.

“The losses are around or in excess of $20 million since ATC has taken control of the property (in 2010),” Divita told commissioners Tuesday. “In proposed form, the project will be economically sustainable both in the construction period as well as during the operations period.”

Divita added that the daily room rates at the new 76-room hotel will be priced higher than their current rates. The higher prices are an effort to stay competitive with the luxury Wailea hotels. The residential units are projected to be in the $1.9 million to $6 million per unit.

The developers have said that the $230 million redevelopment would create 270 new construction jobs over the three year construction period from 2015 to 2018. Once the project is complete, it will provide 285 full-time jobs compared to the 256 full-time equivalent jobs today.

Trinity Investments LLC Chairman Charles Sweeny admitted that there would be a period of time during construction when some employees likely would be “displaced,” though management is working to mitigate some of the anticipated effects, including talks about maintaining health benefits to ease workers into and through temporary unemployment period and “an augmented severance program which would be in excess of what union requirements are.”

“It’s still going to be a union operation. People can choose to take their severance at this point, but we guarantee their positions and their seniority. That has been my discussion with the union,” Sweeney said.

He and others added that they intend to hire construction workers locally, even bringing Maui laborers home from temporary stints on Oahu.

“Our intent is to have construction employment come from local resources as much as possible. Many Maui residents are temporarily residing on Oahu, so they (contractors) are excited about bringing the crews back home,” Divita said.

For Sale Ho’olei Unit 52-5, the Sayles team are currently the in house sales team at Ho’olei

Maui residents Bruce Uu, who is also a coordinator with the Hawaii Regional Council of Carpenters, said the proposed project would be “a huge benefit” for local workers, especially graduating students entering the workforce.

“Every year, my office gets flooded with applications, and they all looking for jobs. It gets so bad to where the parents call you instead of the kid. There’s not enough jobs or demand for me where I can hire and put (their) son through trade,” Uu said in testimony.

“A project like this gives us the opportunity to hire. It’s an incredible opportunity for our kids in the islands to get hired into an apprenticeship program.”

Commissioner Wayne Hedani asked Uu, who is also a member of the Maui Planning Commission and a Native Hawaiian, if he thought the proposed project was pono.

“It’s already existing so when it’s existing and entitled and zoned, from my perspective as a professional on the planning commission, yeah, I think it has been pono,” Uu said. “This project more than others, has been pono by bringing in the right groups. My first thing as a Hawaiian is you ask your neighbors how you doing, and they (developers) have been talking to the neighbors, which to me is pono.”

Unit 63-6 is the Sayles Team highest priced listing in Ho’olei and is one of the most prestigious units in the neighborhood. The condo recently entered escrow and is listed for $3,400,000

South Maui residents lauded Discovery Land Co. for engaging and listening to the community in a series of meetings spanning the last several months. A consultant for the project said the developer has either formed or meth with numerous South Maui groups, including a Makena Cultural Focus Group, Makena Community Advisory Group, Makena Neighborhood community, Makena Homeowner’s Association, and hotel and construction unions.

Maui Planning Division Supervisor Ann Cua added that the developers have adapted their plans to meet community concerns, such as designing the building to bled in more seamlessly to the existing landscape in Makena, integrating green and renewable energy, and maintaining public access to Maluaka Beach.

Commissioners recognized that the developers did their due diligence in engaging the community earlier rather than later.

“I feel the applicant has done a pretty tremendous job prepearing and covering all their bases.” Commissioner Max Tsai said. “With the change going in our economy, I think that’s the direction hotels are heading, Andaz sold some its as well, just to survive. That’s kind of what you have to make it in this economy.”

Kai Malu unit 52A sold for $1,850,000, a full $100K over the list price

Six commissioners voted in favor of granting the SMA application. One commissioner recused herself and another was absent.

ATC Makena Holdings LLC is consortium involving a few partners, notably among the names is Maui native Stanford Carr’s development firm. Makena Holdings purchased the property, formerly known as the Maui Prince Hotel, after it went into foreclosure.

Carr told The Maui News that he “look(s) forward to proceeding with our designs while continuing our collaboration with the community.”

Contact a Maui Lifestyle Resource

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Hokulani Golf Villas for sale

Whether you’re relocating to Maui, buying your first home, investing in real estate, or upgrading your living situation, you could not find a better place to live than Maui. This island is more than just a beautiful destination, it’s home to incredible people and some of the world’s most renowned real estate. People come for the sun, but stay for the lifestyle. For more current information on Maui Real Estate, please contact me for a private consultation.

Mahalo,