San Jose Mercury News
The Associated Press
Wednesday, March 26, 2008
HONOLULU—Molokai Ranch will shut down most of its operations at the end of the month and lay off more than 120 staff over the next 60 days.
The company, which is owned by a subsidiary of Singapore-based GuocoLeisure Ltd., blamed the move on community opposition to its plan to develop multimillion-dollar beachfront estates at Laau Point on Molokai.
The company will close Molokai Lodge, the Kaupoa Beach Village, the Kaluakoi Golf Course, the Maunaloa gas station, the Maunaloa Tri-Plex theater and its cattle-rearing business.
Molokai Ranch, officially known as Molokai Properties Ltd., advised employees of the move on Monday.
The development plan would have transformed 500 acres of beachfront land at Laau into a 200-lot luxury subdivision.
At the same time, the ranch would have set aside 50,000 acres—or about 80 percent of all its land—for open space and conservation easement.
Peter Nichols, chief executive officer, said in a statement that the company was unable to continue losing money if it wasn't going to be able to build the Laau development.
"Unacceptable delays caused by continued opposition to every aspect of the master plan means we are unable to fund continued normal company operations," Nichols said in a news release.
Politicians said they were worried the closure would hurt the economy.
Molokai Ranch is one of the biggest employers on the island, which has a population of some 7,500.
The mayor of Maui County, which includes Molokai, said the isle already has the state's highest jobless rate at 7 percent. The state average is 3.1 percent.
"This adds to an already stressful employment situation," said Charmaine Tavares in a statement.
Danny A. Mateo, who represents Molokai in the county council, said he was worried the shutdown would hurt the island's tourism industry—and other businesses dependent on tourism—because the company would close the hotels it owns.
"Finding work on-island for the many people who will lose their jobs is next to impossible," Mateo said.
Gov. Linda Lingle said state officials would travel to Molokai on Thursday to provide information on unemployment insurance, job training and medical benefits.
"The loss of this many jobs in such a small community like Molokai is equivalent to 23,000 people on Oahu losing their jobs on the same day," Lingle said.
Molokai Ranch also said it would cut off public access to the 60,000 acres it owns on Molokai—roughly one-third of the island.
But Sen. Kalani English, D-East Maui-Lanai-Molokai, said the company has a duty to respect Native Hawaiian subsistence gathering rights on the land.
"I hope that the company will act responsibly in respecting the rights of the community," English said.
Molokai Ranch's development plan was completed in late 2005 after two years and nearly 150 public meetings.
But protesters dogged the project throughout, and sentiment toward the plan was deeply divided. In 2006, about 40 demonstrators protested the plan by filing though Kawaiahao Church during a swearing-in ceremony for Office of Hawaiian Affairs trustees.
Molokai Ranch submitted an environmental impact statement to the state Land Use Commission for approval in October.
But commissioners said the study inadequately addressed water treatment, segmentation of residential lots, electricity issues and potential environmental hazards to Hawaiian monk seals.
Molokai Ranch withdrew the environmental study but had said it planned to prepare another one.
Colette Machado, Office of Hawaiian Affairs trustee for Molokai, said "this is a sad day."
Machado, a longtime backer of the development plan, said Molokai Ranch's proposal would have protected Native Hawaiian cultural sites and preserved access to fishing grounds.
Walter Ritte, an activist who led the Kawaiahao Church demonstration, urged Molokai Ranch to talk to residents about alternatives that wouldn't involve developing Laau Point.
"There's not only one way for making money. They're insisting that the Laau project is the only way," Ritte said. "The community has said loud and clear that's unacceptable. So let's get back to the table."
Ritte said Molokai Ranch has permits to build hotels, golf-courses and townhouses on land already outfitted with some infrastructure. Such projects would be preferable to building homes on Laau, which is pristine and untouched, he said.
"We're saying: stay where you are. Let's talk about developing those areas," Ritte said.
Original article URL: http://www.mercurynews.com/travel/ci_8702653