Thread: Officials discuss Hawaiian island's potential sale

Officials discuss Hawaiian island's potential sale

By JENNIFER SINCO KELLEHER | Associated Press – 4 hrs ago...

HONOLULU (AP) — The sale of Hawaii's smallest publicly accessible inhabited island is imminent, and local leaders are anticipating what new ownership could mean for the island's some 3,200 residents.

A potential buyer of Lanai, part of Maui County, was revealed to Gov. Neil Abercrombie and the county's mayor at a meeting last week with representatives from landowner Castle & Cooke Inc. Self-made billionaire David Murdock's Castle & Cooke owns 98 percent of island's 141 square miles.

"I was told they're in serious negotiations," Mayor Alan Arakawa told The Associated Press on Tuesday. "There's a possibility Lanai may be sold in a week or so."

He said he's sworn to secrecy about the buyer's identity. But any buyer would have to have deep pockets.

The asking price is reportedly between $500 million and $600 million, the Maui News reported. Castle & Cooke did not immediately comment Tuesday.

In 2000, Murdock bought out fellow Castle & Cooke shareholders for nearly $700 million and took the company private.

The island is still known as the "pineapple island," even though Murdock has closed its pineapple operations to make way for luxury resort and home development. The island boasts unspoiled charm with 30 miles of paved roads, 400 miles of unpaved roads and no stoplights. According to the Hawaii Tourism Authority, more than 26,000 people visited the island this year as of April, a 6 percent decline from the same period last year. Niihau is Hawaii's smallest inhabited island, but permission is required to visit.

Arakawa said the sale could again alter the economic structure of the island and its residents, who have seen the passing of Lanai's longtime pineapple industry and now rely on employment at resorts, golf courses and other businesses. Aside from the hotels, the island's infrastructure is at stake, he noted.

"I have to be able to feel out the perspective new owner and what their intentions are," Arakawa said.

He said he's confident that Murdock's love for the island will mean ensuring the new owner is a good steward, evidenced by Arakawa being regularly updated on sale developments.

"They will consult with us because they know it's critical for the survival of the island," he said. "I know that Mr. Murdock really likes the island. A lot of this has been sentimental for him. He's put a lot of money into the island."

But he understands Murdock's desire to sell. The Honolulu Star-Advertiser reported the island produced annual losses of roughly $20 million to $30 million from 2006 to 2010.

Officials discuss Hawaiian island's potential sale - Yahoo! News

Hawaii governor: Oracle Corp. CEO Larry Ellison agrees to buy 98 percent of island of Lanai.

Hawaii Gov.: Oracle's Ellison to buy most of Lanai

By JENNIFER SINCO KELLEHER | Associated Press | 7 minutes ago

Abercrombie said Wednesday that the land's current owners, Castle & Cook, have filed a transfer application with the state's public utilities commission.

Abercrombie says Ellison has had a longstanding interest in the island.

Lanai is Hawaii's smallest publicly accessible inhabited island, with some 3,200 residents. It attracted more than 26,000 visitors from January through April this year.

Oracle is a software company based in Redwood City, Calif.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

There are mixed emotions among those who live on Lanai, the small Hawaiian island that could be sold soon.

Billionaire owner David Murdock has a potential buyer for Lanai, and the island could be sold in the coming days, said Maui County Mayor Alan Arakawa. Murdock owns about 98 percent of the island.

Murdock has clashed with some residents who oppose his company's windmill project that would deliver power via undersea cable to Oahu. Some community group leaders told the Maui News (Residents of Lanai unsettled, hopeful over possible sale - Mauinews.com | News, Sports, Jobs, Visitor's Information - The Maui News) they hope the new owners will nix the project, proposed for about as many as 12,800 acres on the northwestern part of the island.

The site of the project is a "garden of gods," with views of Maui and Molokai across the channels that shouldn't be ruined, said Robin Kaye of Friends of Lanai, which formed to oppose the wind farm.

"As a result of the wind project, the community has been real tense," said Butch Gima, president of Lanaians for Sensible Growth. "Within families they are having to choose sides."

International Longshore and Warehouse Union Local 142 supports the project. William Kennison, union Maui division director, said the union has been kept in the loop about the sale and that he knows who the undisclosed buyer is.

"They are assuring us that whoever purchases the island will maintain the union contracts," he said.

Rumors and concern are swirling among the island's estimated 3,200 residents, said Lanai Councilmember Riki Hokama. He said he hopes the new union is a good steward: "There are still great opportunities for the island."

Murdock's Castle & Cooke owns the island's luxury resorts, golf courses, the water utility and other businesses.

Hawaii governor: Oracle Corp. CEO Larry Ellison agrees to buy 98 percent of island of Lanai. - 6/20/2012 7:35:39 PM | Newser