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To: "TonyT" <>
Subject: newsletter


Greetings and Salutations from


Still loving and living Polo after all these years


Aloha to all,


            Is no news good news?  If so, please think of this as an update, rather than a long- overdue newsletter. We do have lots to report, and much of it good.


            In February we were spared the trauma of a significant tsunami event. After waiting anxiously for hours, eyes glued to local newscasts from Hilo on the Big Island, we eventually observed a series of small surges. That was it. No injuries or damages reported. The alert came almost twelve hours before the anticipated arrival, and island communities were quick to prepare. It was reassuring that we were not required to evacuate Polo. Many here were busy removing lanai furniture from lower levels, and running cars from our parking garage up to Mulligan’s. Your Polo community in action!


            Although national and international headlines about the economic morass continue to discourage, we do see some signs of optimism here on Maui. Alaska Airlines has added more direct flights direct from California to Kahului, departing from Sacramento and San Diego. Hawaiian Airlines has also added more flights, as well as Canadian carriers WestJet and Air Canada.  


This last March, Maui led all other islands in visitor arrivals and tourist spending. Our island hotels enjoyed an 18.1 percent jump in revenue per available room this July. That’s a big improvement over July of 2008, when the slump was gaining momentum. This July the visitor count was 11.6 percent higher than last July, and August 2010 was up 10.1% from the “09” figures. Visitor spending on Maui rose 29.6%, to $268 million.


Whole Foods Market opened in Kahului. This is definitely not what you’d consider bargain shopping, but the selection and quality of goods is superb. The parking lots are still packed these eight or so months after the Grand Opening. Plans are on course for a new police station in South Maui, and $8 million was granted to purchase 77 acres of ranch land for the proposed 1,600-student Kihei high school. The school will be mauka the Piilani Highway in North Kihei.


            In July economist Paul Brewbaker, of TZ Economics, delivered the news to Maui Realtors that the great recession is over, and “We are right at the moment of breakout.” How’s that for good news? He suggests people need to “get over this idea of waiting for the best deal.” He says “2012 is not a year worth waiting for.” Although prices may not go up, financing may be more costly.


            Early September at the 36th Annual Maui County Business Outlook Forum, two of Hawaii’s leading economists delivered an upbeat message, though more guardedly optimistic than Mr. Brewbaker’s perceptions. Dr. Leroy Laney and Dr. Jack Suyderhoud both affirmed the local economy is improving, but “times are far from good.” In the year 2010, the “bottom has emerged.” There are signs of hope, but we aren’t yet free and clear. But of all the islands, Maui is distinguished by an impressive rebound in tourism.


            Though hard to understand how “the great recession” could possibly be over,  sales activity has definitely picked up in our neighborhood.


Makena Surf


            There was one sale at this property in 2009. This year three closings have occurred. The two-bedroom sales were at $1,999,950 and $2,475,000. A three-bedroom unit sold for $3,375,000. The five active listings range in price from $2,345,000 to $2,990,000.


Wailea Point


            The year 2009 was slow here as well, with just a single sale in late December. However, five more have recorded in 2010, with an extreme range in sales prices: From $1,550,000 to $9,999,999. There are currently six active two- and three-bedroom listings, from $1,900,000 to $5,100,000.


Wailea Beach Villas


            Evidently no one at WBV got the news that times have been tough. There were six two- and three-bedroom unit sales in 2009, and 2010 has been even busier. Seven sales have recorded so far this year. Here is another wide range in sales prices: From $2,296,000 to $12,500,000. Prices for the eight active listings are from $2,325,000 to $5,490,000.


Wailea Elua


            There were no two-bedroom sales reported in 2009, but one sold in March of this year for $1,400,000. Two more are currently listed: One at $1,788,000 and another at a very optimistic price of $3,850,000.


Polo Beach


            Our 2009 Polo sales report was likewise lackluster. In June of this year, we closed Unit 701 at $1,850,000. Unit 802 is in currently in escrow, due to close early October. We’ll be enthused to disclose the sales price just as soon as we can. Right now five Polo’s are listed: Unit 109 for $2,100,000; Unit 108 for $2,195,000; Unit 207 for $2,250,000; Unit 308 for $2,250,000 and Unit 801 for $2,999,999.







            This imposing 120-unit resort property is located up the slope across the Alanui from the Grand Wailea. Although not on the beach, Ho’olei definitely has a presence in, and an impact on, our neighborhood. There have been 28 sales since the beginning of 2009. Prices ranged from $1,640,000 to $2,500,000. There are 16 more for sale right now, listed from $1,895,000 to $3,100,000. The two-level, three-bedroom units are large, 3,000-plus square feet, with elevators, private garage, full gym and privileges at the Grand. Ho’olei has absorbed a large resource of high-end buyers willing to sacrifice location for what their dollars can purchase in terms of luxury and square footage.


            A broader view of South Maui shows us overall condominium sales volume has increased 52% to date over the same period in 2009. In the specific Wailea/Makena area, volume was up 84%.


Prestigious Old Makena Road!


            One of the basic tenets of real estate has always been “Location, Location, Location.” We’ve got that in aces. Another favorite is: “It’s best to own one of the less expensive homes in the most expensive neighborhood.”  Well, friends, I think we’re nicely positioned for this one also. Polo is the first official Makena address on this street. Just a few homes down the road, where Palauea Beach starts, the erstwhile Von Tempski estate (re)sold in April for $19,850,000. Late May a newer home perched above the other end of the beach closed at $17,500,000. There goes the neighborhood.


A legacy from Ulupalakua:


            That glimpse of the ranchland behind Polo, visible from our pool, the beach or ocean, has always been precious; usually green, often misty, and always pleasing. Now it will be, for always. Ulupalakua owner Pardee Urdman granted an historic donation easement to the Maui Costal Land Trust of almost two-thirds of the 18,000 acre ranch, upslope of Makena. This was the largest deal of its kind in Hawaii history, precluding future generations from selling off the land to developers.


Almost 12,000 acres will be forever preserved as a working ranch and wildlife habitat, with potential for future farming opportunities and green-energy initiatives.  Some of the land has already been leased to Sempra Energy, for a 12- to 15-turbine, 20-megawat wind farm. About 30 acres of native forest has been restored since 1997, and work will begin on another 100 acres soon. In addition to about 5,000 head of cattle, the ranch supports elk, lamb and goat herds. There is a winery, a country store & grill plus horseback riding and clay shooting. It is absolutely beautiful up there. Just ask Oprah. She purchased 1,000 acres right next door.





Down by the seashore:


            Financial struggles are not specific to first-time homebuyers with mortgage woes. The prestigious Four Seasons Resort is reportedly having trouble keeping up the payments. Texas computer billionaire Michael Dell purchased the property in 2004 via his investment vehicle, MSD Capital L.P., for $280 million. In 2006, when interest rates were very low, MSD took out two mortgages on the property totaling $425 million. Things were still rolling in 2007, when the Four Season’s net cash flow was $32.9 million. By the fourth quarter of 2009 it had dropped to $10.9 million. The hotel needs to bring in $23.6 million just to pay the interest. MSD covered the shortfall until February, 2010, but has since declined to advance more cash to cover the notes. Apparently MDS is working with the creditors to rewrite the terms of the loan. Meanwhile, the Four Seasons recently added a $9 million pool, maintained 70 – 80% occupancy during the first quarter of this year, and as yet has excused no hotel employees.


            Many other Hawaii resorts are restructuring, one way or another, but those owned by private companies do not have to reveal whether or not they are current on their debt. The Ritz Carlton, Kapalua is reported many months overdue on a $300 million note. Hotel Wailea, once known as the Diamond Resort just up the hill, is currently embroiled in a complex foreclosure proceeding. Original ownership was dispersed among 1,400 Japanese investors/members. In 2008 a group of Honolulu businessmen attempted to revive the tired, two-decades-old property. This required consolidating ownership, an attempt which generated countless lawsuits from original purchasers. Now it looks like the would-be rehabilitators and the challengers will all end up with zilch. A mainland lender foreclosed, and has asked to bid the debt at the foreclosure auction. No date has been publicized as yet.


            Here’s an exercise in irony:  In October 2009, the Grand Wailea received a Special Management Area Permit for a $250 million expansion that would add 310 additional rooms, and provide a suffering construction industry with many needed jobs. The goal was to position the hotel for the future, when tourism picks up – what a positive and bold approach! Then this front page headline appears early December: Foreclosure Still Looms for Grand Wailea. What? We were all under the impression that the Grand was doing better than most during the slump. Turns out the hotel was pledged as collateral for an underperforming loan. Debtors are asking for a restructuring, and the $1 billion loan will likely be renegotiated before it comes due February, 2011.


 Meanwhile, the SMA Permit for the $250 million expansion has been voided, at least for now. A Maui judge ruled the Planning Commission erred by denying intervention by two petitioners. Interveners are property owners at Ho’olei and Dana Naone Hall, who raised concerns about Native Hawaiian burials in areas of the property slated for expansion.





Makena Goes South


            This is no joke. We‘ve all been following the troubles of Everett Dowling’s grand master plan for the Makena Resort with much dismay. It was big news when Dowling and partners purchased the 1,800-acre resort back in 2007 for $565 million. They spent an additional $100 million on improvements, and acquired entitlements for residential development on 1,300 acres. The permit process was long and arduous. The master plan was cohesive and LEED certified, using clean energy and new technologies to conserve natural resources. When Dowling-Morgan Stanley interests became trapped by the collapse of international financial and real estate markets, they defaulted on a basic loan of $195 million. Makena Resort went to auction.


            The new owners are AREA Property Partners in a joint venture with Trinity Investments and Stanford Carr Development LLC. AREA is an international firm which has overseen the establishment of multiple real estate funds and joint ventures totaling 13 billion. Chuck Sweeney is the co-chairman of Trinity. Most will recall he developed the Embassy Suites in Kaanapali and the Kea Lani Hotel. Stanford Carr is a Maui native whose recent work includes Olena, the Cottages and the Villas, all at Kehalani (these are the residential subdivisions up the hill on the left as you head towards Wailuku town on the Honoapiilani Highway – the high road).


            These owners are backing away from the “uber-luxury” concept that Dowling envisioned. Proposals will include work force housing within the resort – a first for Maui. The old Prince Hotel, now called the Makena Beach and Golf Resort, will remain standing and stay open. A Trinity spokesman said “There is a strong need for a hotel in the $200 to $250 [per night] range in that part of the island” Some parts of the hotel will be “refreshed” and there are plans to reopen at least nine holes of the South Course. New development proposals should come before the County sometime next year.


Ecological Issues...


            Any of you swimmers must have noticed the drastic decline in our fish population. It’s pretty spare out there. The aquarium fish trade is big business, and there is no regulation in these islands. Many of our representatives and senators have voiced opposition to reef fish extraction. Robert Wintner (aka Snorkel Bob) feels regulation has been stonewalled by current administration and the House Leadership. For years the Department of Land & natural Resources has declined responsibility. According to Bob, the current governor’s chief policy adviser is a former wholesaler to the aquarium trade. Maui Council members decided to take action at the County level. In a unanimous vote (and there aren’t many of those in our Council) they gave approval to a bill aimed at protecting the fragile marine environment. People who collect fish for sale would require a County license and accurate reporting methods. It is estimated that actual aquarium catch is two to five times greater than the reported catch. If signed, citations will be issued to violators, effective next January 1st.



            In a related reef recovery concern, the Ahihi-Kinau Natural Area Reserve will remain closed for another two years. We used to love hiking across the lava out to the “Aquarium” and “Fishbowl.” However, guidebook publicity generated too much interest, and visitors began arriving in droves. The area is technically a reserve, set aside to provide habitat, refuge and breeding ground for wildlife – not a park set up for recreation. The Board of Land and Natural Resources will complete a draft management for Ahihi-Kinau over the next two years. Gratifying improvement has been observed in the geological, cultural, and especially in the marine resources, in the more remote and sensitive areas. The northern part of the reserve and the coastal area along the Ahihi Bay near “Dumps” surfing spot will continue to be open to the public. Anyone entering the closed portions can be arrested and fined up to $1,000 or spend a year in jail.


            One of the better ocean swimmers from Polo recently participated in the Blue Aina Beach & Reef Cleanup sponsored by Surfrider Foundation. The Trilogy crew takes members and volunteers to different locations the first weekend of each month. They retrieve fishing line, clean mooring lines; remove rubbish and nets from the reef and beach. What a great way to participate in preserving the purity of our greatest resource. For more information call Jill Q. at 808-333-7368 or email            


And Extraterrestrial Data from Haleakala


            A new telescope atop Haleakala is surveying the skies, looking for killer asteroids. The new addition was designed and built at the University of Hawaii at Manoa. In the next three years astronomers are expected to discover about 100,000 asteroids and determine if any of them are on a collision course with earth. Very well! About 5 billion stars and 500 million galaxies will be cataloged, and a digital map compiled of the 75% of the universe visible from Hawaii. Amazing…


You can fight city hall!


            Or at least reason with the County Council. Earlier this year the Council presented a bill to tax all properties at their highest and best use. All other property categories are taxed in this manner. For instance: A property owner in Kula who has been unable to build a home for 12 years because water meters are not available still has to pay the same property tax for an empty lot as the neighbor with a residence.


            Only the condominium category has been taxed according to actual use, rather than the highest and best use based on the zoning. Resident homeowners get the best rate: $2.50 per annually-assessed $1,000 of valuation. Owners who rent for six months or longer, or who use their condo as a second home, pay an “Apartment” rate of $5.00 per assessed $1,000. Owners who use their condo as a vacation rental pay the “Hotel & Resort” rate of $8.30. The zoning for Polo Beach and Wailea Point is “Hotel Resort.” Many owners at Polo do not rent; there are only a handful of renting owners at the Point. Had it gone forward, this bill would have increased non-renting owner’s property taxes by 60%.


 Many homeowners in “Hotel Resort” properties rent on a long-term basis, so have been able to claim the “Apartment” rate. There is a big demand for long term rentals in this market where foreclosures are more and more common. A big increase in the tax would have been passed on to renters, creating additional hardship.


            The Council claimed this was a matter of fairness, and all properties should be taxed equally. However, the underlying issue was the large and unaccounted number of owners claiming to qualify for the “Apartment” rate, while continuing to host short-term rentals. There were long and vocal meetings. There was eloquent testimony from all quarters, including your manager and a fellow homeowner. A compromise was reached. The amended bill requires condo associations to “self police,” and file annual reports on how owners are using their units: personal residence, vacation rental, or second home/long-term rental. The three-level taxation practice will remain in effect. However, any owner who purposely falsifies a declaration, and is discovered, may subject the entire property to an across-the-board “highest and best use” tax. 


            Tax classification can be altered just once yearly. It you do not use your Polo unit for short term rentals, it’s a good time to check your property tax figure to be certain you are not paying the higher rate. Notice of classification change must be delivered to the County by December 31st. It is a simple procedure, and can be accomplished on line. Any adjustments will appear on the July 2011 tax bill.


What’s for dinner?


            Many restaurants are offering special discounts to lure more of us out to dinner. Here are some of our favorites:


Four Seasons Duo: $49 for a three course meal (appetizer, entrée, dessert). Any night of the week, any time, no local ID required.


Four Seasons Spago: $49 for the a similar menu, but with time restrictions. Available 5:30 – 6 PM and 8:45 – 9:30 PM. Everyone welcome.


Mala at the Marriott: Prefixed menu for $43 includes soup, or Farmer’s Salad, choice of three entrees (herbed mahi, teriyaki chicken, blackened rib eye with rice, potato, veggie) plus dessert. If you like to dine late and have local ID, make reservations for after 8 PM for 50% off on all food. Do note that a gratuity of 18% will be charged.


Capische?: Local ID required for this – purchase one entrée and get 50% off the second.


Ko at the Kea Lani: Enjoy an appetizer, entrée and dessert for $39. Reservations recommended no ID necessary.


Tommy Bahama: 50% off on pu pu menu and drinks, from 4 – 6 PM and 9PM ‘til closing. Offered to all – no ID’s.


Longhi’s: Sunset Dinner is served from 5 – 6:30 PM. For $39.99 enjoy salad, pasta, an entrée and tiramisu for dessert. Offered to all.


Ruth’s Chris: Primetime served from 5 – 6 PM. Appetizer/entrée/dessert for $$39.95. No ID’s necessary.


Waterfront: In honor of the proprietor’s 20th year anniversary, everyone on island is invited to this celebration. Buy one entrée; the second entrée of equal or lesser value will be complimentary, from now until the end of November.


Gannon’s: If you want to get happy between the hours of 3 -7 PM, all items on the bar menu are one-half price. Sunsets are free.


Joe’s: Place your order before 6:30 PM. The first entrée is full price; the second of equal or lesser value is free of charge. Sunsets here are pretty nice as well.


Any golfers out there?


            Hawaii is a golfer’s state, and the junior golf sector is in the limelight right now. Baldwin High school senior Cassy Isagawa represented Maui at the Junior Ryder Cup last week in Scotland, and played a significant part in helping the U.S. take the cup. Among other honors, she was with Team Hawaii, winning the Girls Junior America’s Cup at Rancho Santa Fe, California, last July.


            Team Hawaii had a very special coach. Cathy Torchiana was Head Coach of the USC Trojan Women’s golf team for many years, before landing on Maui for keeps. She’s in the NCAA Golf Coach’s Hall of Fame, and one of only 52 women to achieve Life Membership in the LPGA Teaching and Club Professional Division. Since 1996, along with volunteering time and heart to coach junior golf and serve as vice president of  HSJGA (Hawaii State Junior Golf Association), she’s been a teaching pro at Wailea Gold & Emerald Course. Aside from all these kudos, she is a kick in the pants. If you decide to try a lesson with her, it’s a promise you will never have more fun or learn more. You have to call her directly: 808-879-4538. If you tell her you called after reading this letter, she will add 15 free minutes of instruction to your first get together. By the way, this offer extends to all you golf students who have already enjoyed the Cathy experience.


The wind up:


Hawaii was ranked second-happiest place in America. Louisiana placed first, but the study was completed before the recent oil spill disaster. Apparently, people in sunny, outdoorsy states rate highest on the happy scale. So moved, and seconded. Lastly, be advised: No more hands-on cell phone use allowed if behind the steering wheel on Maui.


With aloha, from the Jacksons - October, 2010


* Information deemed reliable but not guaranteed.



New Maui Tidbits, many are courtesy of Phylleen Jackson

Jackson and Associates 808 874 1336




Disney to film “Pirates Of The Caribbean: On Stranger Tides” in Hawai‘i


The Walt Disney Company President and CEO Bob Iger met with Governor Lingle on Friday to solidify plans to film 'Pirates of the Caribbean: On Stranger Tides' on the islands of Kauai and Oahu this summer. Photo courtesy of Andy Matheson

HONOLULU — Governor Linda Lingle today announced that Hawai‘i will be the location for “Pirates of the Caribbean: On Stranger Tides,” the fourth installment of the highly successful Walt Disney Pictures’ action adventure film series from Jerry Bruckheimer Films. The Walt Disney Company President and CEO Bob Iger met with Governor Lingle on Friday to share the news that the islands of Kaua‘i and O‘ahu will be sites for the production of the feature film, which will begin shooting this summer and is slated to be released in summer 2011. The production is expected to generate an estimated $85 million in direct and indirect spending in Hawai‘i, providing a needed economic boost for the state’s economy as well as creating hundreds of jobs for local residents.

“Pirates of the Caribbean: On Stranger Tides” will star Johnny Depp, returning to his iconic role of Captain Jack Sparrow. The film is produced by Jerry Bruckheimer, and directed by Rob Marshall. The writers are Ted Elliott and Terry Rossio, and the executive producers are Mike Stenson, Chad Oman, Barry Waldman, Elliott, Rossio and John DeLuca.

“Disney’s long-term commitment to Hawai‘i – from ABC’s ‘LOST’ to the new Disney resort on O‘ahu scheduled to open in 2011, and now the upcoming filming of ‘Pirates of the Caribbean: On Stranger Tides’ – is a testament to the company’s confidence in our state as a great place to do business,“ said Governor Lingle.

“The Walt Disney Company has a great relationship with Hawai‘i that we’re looking forward to building upon with the filming of the latest adventures of Captain Jack Sparrow and his crew,” said Iger. “I thank Governor Lingle and her team for their tremendous support of the projects Disney has underway in this great state.”

“We’ve always sought out the most extraordinary and exotic locations for the ‘Pirates of the Caribbean’ films,” said producer Jerry Bruckheimer, “and previously shot briefly on both Maui and Moloka‘i for ‘Pirates of the Caribbean: At World’s End.’ Hawai‘i provides an amazing range of both land and seascapes, and we’re delighted to return for ‘On Stranger Tides.’”

The state’s Creative Industries Division and the Hawai‘i Film Office, which are housed in the Department of Business, Economic Development and Tourism, began working with Disney last year and organized a series of meetings and conference calls to help secure the business.

Georja Skinner, the State’s Creative Industries Division administrator who oversees operations of the Hawai‘i Film Office, worked collaboratively with the Governor’s office, Department of Taxation and Tourism Liaison Marsha Wienert, along with Hawai‘i Tourism Authority, Hawai‘i Visitors and Convention Bureau, Kaua‘i Visitors Bureau, the Kaua‘i Film Office, the City and County’s Honolulu Film Office, The Resort Group, Ko Olina Resort and Disney Vacation Club to help secure “Pirates of the Caribbean” for Hawai‘i.

“Hawai‘i competes on a global basis for productions and to have Disney choose Hawai‘i over other states and countries is a huge win for us,” said Skinner. “Creative industries are by nature collaborative and what I think made a difference for us is the combination of our tax incentive as well as local film, travel and destination industry support.”

“Pirates of the Caribbean: On Stranger Tides” joins a growing list of feature film and television productions slated to film in Hawai‘i this year. Warner Bros. feature “Hereafter,” directed by Clint Eastwood and starring Matt Damon completed filming on Maui last week. Pre-production is also beginning for the feature film “The Descendents,” starring George Clooney and directed by Academy Award®-winning writer/director Alexander Payne. The film is based on the book by Hawai‘i resident Kau‘i Hart Hemmings. Several network pilots, as well as a Japanese drama series and a Korean drama series are also scouting Hawai‘i for projects this year.


- The Department of Land and Natural Resources is planning to close Ahihi-Kihau Reserve for two years. Popular snorkling sites such as "The Fishbowl" and "The Aquarium" will not be accessible via the paths through the lava beds. DLNR plans to to baseline studies of plants, animals, birds, fish and coral, cultural sites and geological features. Access may eventually be available through the lava fields once specific trails with informational signs are completed.

- Off shore waters, Ahihi Bay, Waiala Cove and Maonakala, the "Dumps" surf spot will still be open to the public. Fishing and hiking access to La Perouse Bay will not be affected. 


- Outdoor Polo games are at Olinda Field every Sunday at 1:00 commencing September 1st. Very exciting (I prefer the Polo matches to the annual rodeo). It is right across from the entrance to Seabury Hall. It is so beautiful up there. Great shopping in Makawao (and farther down in Paia), hot Mexican food at Poli's in Makawao, and hikes at the top of Olinda Road, public welcomed (no kapu signs).

 -   Flatbreads in Paia is a fairly new, excellent organic fare restaurant. Pizza to die for. Great salads. (Watch out, might now be appropriate for everyone: lots of beautiful young servers in skimpy tee-shirts.

- Roy's Restaurant - Latest word on the street is that it may have changed a bit. Much smaller wine list, limited salad selection, smaller entrée menu. Soufflé still great.

- Kahili Golf Course (used to be Sandlewood) is in GREAT shape. Challenging, great fairways and greens. Off Honoapiilani Hwy on way to Wailuku.

- Kapalua - Village Golf Course is temporarily closed, may (or now - may not) be converted to private course. Note: Kapalua Golf Academy is still at the Village Clubhouse and the best golf instructor in the world - Jerry King - is still there.

- Sansei in Kihei - still great selections - food and liquor.

New Maui Tidbits, many are courtesy of Phylleen Jackson

Jackson and Associates 808 874 1336


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