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The Honolulu Advertiser
Posted on: Thursday, February 21, 2008

COMMENTARY
Turtle Bay expansion now makes no sense

By Bob Nakata

Gov. Linda Lingle's proposal for the state to buy the 850-acre Turtle Bay Resort to retain the rural, country lifestyle of the area as a resource for the people of O'ahu has generated great interest islandwide.

It has made people realize how important it is to keep rural open space. It has raised the question of how much are we willing to pay in dollar terms for quality of life. The governor has pushed us into what is likely to be a lengthy and deep discussion of values and money, which will become very intense.

A somewhat similar discussion happened in Kahalu'u in the 1970s and 1980s. The city's General Plan and Development Plan of the 1950s and 1960s had Kahalu'u and 'Ewa competing to be O'ahu's Second City. Both showed a deep-draft harbor, wharves, sewage plants, resorts, heavy industrial areas, marinas, power plants, oil refineries, etc.

In Kahalu'u, these things were wiped out of the City Plan in 1984, even though they had been on the General Plan, Development Plan and, in some cases, zoning maps for 20 years. Schools were built, streets improved, Kahekili Highway was built, subdivisions were built and more than 200 families were evicted in He'eia Kea to make way for a power plant. In spite of all these, no suits were filed over lost "vested rights" by Sen. Hiram Fong Sr., Alexander & Baldwin, Bishop Estate and others who lost these "vested rights." Why didn't they sue?

My speculations are these. First, the so-called vested rights were removed in a scheduled and rational planning process. Both the General Plan and Development Plan were revised during periodic five-year planning reviews. These regularly scheduled reviews adjust plans in a very rational process, not an arbitrary one. Changed conditions led to changed plans. Communities are not locked into outdated and outmoded plans.

Second, sugar production had ceased on the 'Ewa plain, the H-1 Freeway was already serving that area. I believe that the deep-draft harbor and Campbell Industrial Park were on the way or approved, as was Ko Olina Resort. In other words, Second City was already being implemented in a big way in 'Ewa. It made no economic sense to build another one in Kahalu'u. To file suit to keep it on the maps in Kahalu'u would have been a waste of money, even though millions of dollars had already been spent on infrastructure.

Similarly, the development of Ko Olina and West Beach Resort — with Disney on the way — takes away the need for and economic viability of an expanded Turtle Bay Resort. The hundreds of millions of dollars already spent on highways to West Beach, Ko Olina and other massive developments in 'Ewa, with millions more to come, and billions for the mass transit system means no funds available for North Shore and Windward infrastructure for decades into the future. Under these existing conditions, the expansion of Turtle Bay makes no sense.

Furthermore, the existing Turtle Bay Hotel and the proposed expansion are commonly believed to have been built with the expectation of legalized gambling in Hawai'i and makes no economic sense without it. As someone recently said, "How many people would spend hundreds of dollars a day to sit on a beach with sand blowing in their faces (it is the windiest place on O'ahu), not being able to go into the water (it is very rough with bad currents) and with surf only good for good surfers?"

There is also the probability of encountering scores, if not hundreds, of Native Hawaiian burials. Historic preservation laws protect these as public trust assets, so the city cannot issue some permits without addressing them. The endangered monk seals have taken up residence since 1986, and the number of endangered turtles has increased significantly. Further complicating matters for Turtle Bay is the deteriorating investment climate in the U.S.

With $400 million in debt, no investors in sight and the aforementioned problems, the expansion of Turtle Bay is a huge liability to Oaktree Capital Management LLC. They have a "vested right" to this liability. Should the mayor, the City Council, and the city Department of Planning and Permitting keep the country country by removing the expansion from the Sustainable Communities Plan (Development Plan) for Ko'olauloa? It doesn't really fit them anyway. Nine years of being grandfathered into them should come to an end. The purchase price would then reflect the true value of the property, not one driven by very bad business decisions.

The Rev. Bob Nakata is pastor of Kahaluu United Methodist Church. He wrote this commentary for The Advertiser.