The developer of The Villages at Aina Le’a recently published a full page ad in West Hawaii Today. They tried to put a positive spin on the future of this development. However, the future is actually very murky and full of obstacles.
Hawaii County is obligated to honor previously issued building permits. Nevertheless, the recent reversion of the project’s land classification likely bars the county from issuing new permits. Apartment complexes are not deemed an appropriate use of agriculture land. The developer may run into problems constructing roadways, installing utilities (such as electricity and water) as a result. This will likely preclude the county from granting certificate of occupancy for these units.
DW Aina Le’a Development LLC, etc is also facing significant legal obstacles. There is three active lawsuits involving this development. Mauna Lani Resort Association is attempting to invalidate the EIS for this project and Bridge Aina Le’a LLC and DW Aina Le’a Development LLC are trying to reverse the State LUC’s decision to revert Aina Le’a's land classification.
The plethora of Asian investors who’ve invested in this development will likely be left holding the bag. DW Aina Le’a Development LLC and Relco Corporation don’t have the financial wherewithal to complete the affordable housing component. They’ve relied solely on Capital Asia Group’s funding and failed to secure additional outside capital. Contractors and vendors working on this project haven’t been paid on time or at all as a result.
Rep. Cindy Evans (and Speaker Say’s) resolution supporting The Villages at Aina Le’a project was absolutely insulting. She is supporting this project because it’ll supposedly create jobs for her constituents. However, the developer’s track record thus far is less than stellar.
Fortunately HR 204 wasn’t passed by the legislature. Nevertheless, the developer claimed this resolution received a lot of support.
“FYI!! Because House Resolution 204 (aka HR204) was a resolution and not a law, it did not pass or fail, it basically did not get through committee because pending laws were a priority. HR 204 did get a lot of support!! Mahalo to everyone who took the time to show their support!”
I checked the state legislature’s website for submitted testimony regarding this resolution. There wasn’t any testimony (for or against) it. So, I believe the developer isn’t being truthful yet again.
May 16th, 2011 at 9:19 AM
The only hope this housing project has is to have it taken over by the military as military housing, which it appropriately looks like. Or maybe Kiyosaki of Rich Dad fame can cobble a deal together, since he likes golf courses.
May 16th, 2011 at 2:12 PM
All true, Aaron.
May 16th, 2011 at 2:51 PM
Nice the way they try to make the ad look like separate news stories. And by “nice” I mean “deceptive.”
May 16th, 2011 at 8:31 PM
I completely agree that the resolution supporting this development was a shameful act by Rep. Evans–another example of how out-of-touch she is with the local community and how tangled up she is in the unions and developers who bankroll her campaigns. She comes late to community meetings and leaves early. And she usually points to some other dept when pressed on issues. The people behind this development need to unwind their investment and move on.
August 6th, 2011 at 9:36 PM
DW’s managing partner “assured investors that their investments remain intact despite the court decision because the 25ha land, which Lulana Gardens is being built on, had been sub-divided from the master site earlier. Thus, the latest ruling affects only the land around Lulana Gardens and ‘so the original land purchase and joint-venture contracts remain valid and will be paid according to the terms through the sale of townhomes or the purchase of the lots. The land of which the CAG investors are owners is graded and continues to be built upon,’ CAG is confident to pay out the returns in the middle of 2011.
Is the above true?
August 6th, 2011 at 10:33 PM
The existing building permits granted to the developer can’t be rescinded. However, DW Aina Le’a will face an uphill battle to secure new permits to install a waste water system, water, electricity, roadways, etc because the LUC changed the project’s land use classification. This will hold up the issuance of the certificate occupancy for these units. So, it’s very unlikely anyone will see a return on their investment anytime soon.