Aloha SOS Hui & Open Space Supporters

The following is a review of the 7/15/21 PHCA Board’s and others’ commentary on Starwood Capital Group’s (SCG) resort expansion efforts during the meeting.

Sam reported that the Board and its attorneys continue to meet and discuss a community benefits package with Starwood Captial Group (SCG). He said that the Board remains focused on preserving open space in Princeville, that the Board is watching the efforts of SCG in the permitting process and other legislative activities. He says there will be no agreement unless significant benefits can be gained from SCG for the members of PHCA.

The Board seems to still be trying to negotiate a solution to the apparent expiration of the Golf Course Dedication document on February 28, 2026 by throwing it away early. The Dedication is a contract between the owners of the golf course and each and every owner of land in Princeville at Hanalei; PHCA is not a party to that contract.

Community members then raised questions and expressed concerns about a variety of issues:

1. Board Member Lionel Moore attended the Planning Commission meeting on Tuesday, July 13th to learn more, but didn’t take a position pro or con on Bill 2822 that was being heard.

2. Bill Butler brought up concerns about noise and privacy if the new development actually gets constructed, and wondered if since it was an expansion to the hotel (which IS a member of PHCA), would the new units be subject to the normal Princeville CC&Rs. Rory Enright said that the county itself has pretty strict rules about noise. No one addressed the privacy concerns.

3. Kristine Cocke asked if community members could communicate directly with Doug Chin. Maylette asked why, and of course the unsaid but real answer is that those of us in opposition to this development don’t believe our Board is adequately representing our position. Sam did say that if any agreement is reached, the Board would go line-by-line through the agreement with the Community before a vote is taken. The problem with that is that if the Board members have already agreed, what’s the likelihood that the membership in any regular meeting would be able to overturn that? Maylette offered to take any issues directly and pass them along to Mr. Chin and the Board. Rory mentioned that Mr. Chin IS seeing all the email feedback that members have been sending in. We personally thank all those members who have taken the time to do so.

4. Mary Paterson – the Board is negotiating with SCG – but doesn’t seem to understand that no solution that includes glamping will be acceptable to those on the golf course at the least. Sam went back to his usual position of giving up the rights and interests of the few in favor of the many. Mary reminded everyone that the developers are only concerned with the bottom line – there is NO real concern for the Community.

5. Lorri Mull said it’s really only the Woods Course that’s at risk for development; any hotel owner will need the other 18 holes (Lakes and Ocean) to be a “real” 5-star hotel. Jason Cruce of Starwood Capital confirmed that during the June 10th presentation, as we recall. The private homes at the top of Woods Hole #1, Villas of Kamali‘i and Makai Cottages are also potential victims of this proposed development. Starwood is apparently abandoning the Woods, that is, not maintaining it. Maintenance of all 27 holes as a golf course appears to be required by the Dedication; it’s in the Deed of Warranty.

6. Daniel Ersoy posed 3 questions; Maylette promised to get answers back to him:
a. Who is bound and what jurisdiction will apply to any “settlement contract”? Can a contract of this nature bind individual members of PHCA? Sam said PHCA is already in a dispute with SCG – though there is no formal lawsuit. There are differences of desires, wants and legal rights. The Board through Doug Chin is trying to resolve them through discussions/negotiation – that typically results in a “settlement contract”. There is no agreement at this time. Sam did say that members of PHCA would likely be affected by any contract.
b. Can the PHCA or Board be an Intervenor in a contested hearing for the permit?
c. As members, can we get historical, non-personal records from Princeville/PHCA – he is especially interested in those about the golf course.

7. Barbara Levin believes that every homeowner will be affected by the noise, the traffic and the basic change in entire culture of this community. She disagrees with Sam’s comments about sacrificing the smaller percentage of homeowners for a larger percentage. She reminded everyone that the December survey showed that the large majority of respondents oppose this development. Two things are coming – County Bill 2822 will very likely get passed eventually; and, there is the possibility of a moratorium being pushed by many of the environmental groups – over-tourism is killing Kaua‘i. We have options and time, PHCA Board and members should not be bullied by SCG into breaking the Dedication early.

Editor's note: Despite the very prejudicially worded questions offered to PHCA members on the PHCA December survey, 94.2% of the 782 respondents said that preserving open space was “important, fairly important or very important”. See the 1/1/2021 published results.

8. Andy White asked who is Doug Chin negotiating for – Sam, the Board or PHCA? Sam responded that the 5 Board members direct Mr. Chin, and said that Chin’s “client is schizophrenic”. Chin is now handling ALL issues presented by SCG.

9. Randy Kotsol asked about public access to Russian Fort after the 1Homes project gets underway and completed. Maylette said that the 1Homes project is not far enough along to determine the final design, but that it is a state historical/Hawaiian historical area and public access must be maintained.

10. Scott Lindman asked if it has ever come up that the PHCA or other parties might buy the golf course. Is there a price on it? Rory said it’s too early to be able to “drive that home” and SCG is aware that we are interested, especially in the Woods.

11. Andy White asked if Jason Cruce, Starwood would like to say anything to follow-up on the Makai presentation? Jason: SCG has a fiduciary responsibility to their investors and delivering that is his mission. He says for every person in opposition to glamping, he has someone in support. We find that statement hard to believe. Jason said other dialogues taking place have solidified his intent and passion to move forward, trying to be sensitive to the issues raised by the community. We will leave the reader to make their own judgement on that statement. Andy then asked why he was still dealing with PHCA? Jason said the potential to take what Princeville is proud of – Kupuna park, Prince Albert Park improvements – and make further improvements for the community – that’s why he continues to coordinate with PHCA.

Editor's note: We believe a key reason Jason Cruce wants PHCA support is when SCG is before the Planning Commission to obtain zoning and building permits, and that with the PHCA Board's backing, any homeowners' objections will be squashed.

12. Daniel Ersoy asked who is on the call that is not a member. Jason represents the hotel ownership and it IS a member of PHCA. Hotel owns golf course, but the golf course is NOT a member of PHCA. Are meetings recorded? Maylette said they are not; chat IS recorded for follow-up. The annual meeting IS recorded so PHCA can do the minutes. No recordings and no chat is distributed to the community. They don’t want it to go outside.

13. Randy Kotsol – Can regular homeowners request representation by someone else? Maylette – other representatives can be invited by the Board, but usually the Board says no unless that person has specific business with the community – like Bill Schilling and his efforts with AARP and Rotary to get funding for the Kupuna Fitness.

At that point, the meeting was adjourned.

Please see the article in The Garden Island by Joann Yukimura; it talks about the Island’s situation with being over-touristed more generally, and in support of NOT putting a hotel where the Coco Palms skeleton is now. On Sunday afternoon as we write this, there is a 3 hour wait at the rental car agencies – an on-site report from our neighbors who arrived this afternoon. Do we need 50 more resort rooms on this already over-run island?

Mahalo nui for your ongoing support.
SOSHui.org