THE SENATE	S.R. NO.	95
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII

SENATE RESOLUTION

URGING THE ADMINISTRATION TO COMPLETE THE PURCHASE OF TURTLE BAY RESORT AND THE SURROUNDING UNDEVELOPED LANDS AND URGING THE COMMITMENT OF THE SENATE TO ASSIST WITH THE PURCHASE.

     WHEREAS, the Ko‘olauloa-North Shore region known as Turtle Bay, located in the ahupua‘a of Hana Kaoe in Kahuku on the island of Oahu, represents one of the last remaining partially developed shoreline areas on the most populated island within our State; and

     WHEREAS, the Turtle Bay area encompasses a total of 1,429 acres on the makai and mauka sides of Kamehameha Highway in Kahuku that includes unique and irreplaceable natural and cultural features, including Punahoolapa Marsh, Kawela Bay, and alluvial sand dunes; and

     WHEREAS, since 1969, the majority of the property has been classified for urban land use and the Council of the City and County of Honolulu approved the Kuilima Expansion Project by issuing a special management area use permit to Kuilima Development Company in 1986; and

     WHEREAS, these actions might be considered as allowing the construction of up to three thousand hotel rooms plus development of residential units and commercial structures on this property; and

     WHEREAS, there have been significant changes in the surrounding communities along the North Shore, as well as the rest of Oahu over the past twenty years, such as increased traffic congestion and additional demands on remaining beaches, recreational areas, and undeveloped land, no longer making it practical or of community benefit to consider the type of development previously approved; and

     WHEREAS, Oaktree Capital Management, LLC, the current owner of the Turtle Bay Hotel and Resort, has failed to make payment and, as a result, has been subject to a foreclosure action by the creditors for an estimated eight hundred eighty acres of the property on the makai side of Kamehameha Highway and Oaktree Capital Management, LLC has actively solicited bids for the sale of this property for resort development; and

     WHEREAS, Oaktree Capital Management, LLC has actively attempted to sell the makai property for resort and residential development; and

     WHEREAS, the Senate believes the makai and mauka portions of the Oaktree Capital Management, LLC holdings are interrelated and should be purchased as a unit to protect the long-term viability of the area, including the existing hotel and residential units; and

     WHEREAS, the Senate recognizes that the State does not intend to own and operate the Turtle Bay Resort; and

     WHEREAS, the Senate recognizes that it is important to the economic benefit of the community to ensure that the existing hotel and resort remain viable, that the jobs of the employees of this facility are protected, and that the proceeds from the sale of the developed parcels, to the extent possible, cover the State's costs to acquire and preserve a majority of the undeveloped area; and

     WHEREAS, the current global economic situation and the conditions faced by national financial markets are such that the State now has a unique and distinct opportunity to enter into the negotiations for the purchase of the Turtle Bay property; and

     WHEREAS, the intent through these negotiations is to result with a net zero outlay in State moneys; now, therefore,

     BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, that the Administration is urged to complete the negotiations for the purchase of Turtle Bay Resort and the surrounding undeveloped lands; and

     BE IT FURTHER RESOLVED that upon the completion of successful negotiations between the State and the owners or successors in interest, the Senate is committed to a good faith review of the terms of the acquisition of the Turtle Bay Resort and surrounding undeveloped lands within the bounds of existing law; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor; Oaktree Capital Management, LLC; the members of the Turtle Bay Advisory Working Group; the members of the Kuilima East and Kuilima West condominium associations; the leadership of the ILWU Local 142; Hotel Employees and Restaurant Employees Union (HERE) Local 5; and the Ko‘olauloa-North Shore Alliance.

Report Title: 

Land Acquisition; Turtle Bay