Starwood / SOF-XI Kauai PV Golf

SOF-XI Kauai PV Golf is the Starwood Capital Group subsidiary that owns the Makai Golf Club.

2022 YEAR-END UPDATE REGARDING THE STATUS OF PRINCEVILLE’S GOLF COURSE LANDS, presented at the December 15 PHCA Board of Directors' meeting:
This year the Board continued to focus on preserving open space in Princeville. It did so because the 50-year-old legal document (Dedication) that has restricted the use of golf course lands in Princeville purports to expire 38 months from now on February 28, 2026. When the Dedication does expire, the owner of the golf course lands (currently, a Starwood affiliate) might at that time assert certain development rights that had been previously restricted.

Mindful of the significant impact any potential development in Princeville might have on all of PHCA’s  members, the Board since 2021 has taken strong, tangible actions on PHCA’s behalf in legislative, administrative, and legal venues. For example, PHCA testified before the Kauai County Council in support of anti-glamping bills aimed at protecting open space, including Bill 2838, which was eventually signed into law by the Mayor. PHCA repeatedly wrote to all Kauai County Councilmembers asserting PHCA’s very strong interest in preserving open space in Princeville. PHCA also submitted comments to the Kauai County Planning Commission regarding Starwood’s proposed glamping project on a portion of the golf course lands in Princeville and even sought to formally intervene as an interested party in the Planning Commission’s proceeding before Starwood withdrew its permit application for the glamping project at the end of 2021. The Board has closely watched a lawsuit initially filed in June 2021 in state court by individual Princeville homeowners against the golf course owner to stop the glamping project. In September of this year, when an issue in that lawsuit went up on appeal to the Hawaii Supreme Court, PHCA submitted a “friend of the Court” brief, which the Hawaii Supreme Court accepted, to assert PHCA’s interests and larger perspective, on behalf of its nearly 3,000 members, in a matter that was impacting the entire Princeville community.

Throughout 2021, the Board engaged in discussions with the golf course owner centered around the permanent commitment of portions of the golf course lands in Princeville to open space and other benefits to the Princeville community, in exchange for the Board’s support of certain Starwood development projects. In May 2021, the golf course owner made such an offer to the Board, but conditioned all commitments and benefits to PHCA upon the projects being approved by the applicable governmental authorities within 18 months. This, in the Board’s view, was an unreasonable and unrealistic timeline. The Board unanimously rejected the golf course owner’s offer at the Board’s June 17, 2021 meeting.

In October 2021, the Board indicated to the golf course owner that the Board would be interested in a restrictive covenant that would protect portions of Princeville’s golf course lands forever—and even proposed a draft document to the golf course owner that would accomplish that purpose—along with other benefits to the entire Princeville community, in exchange for its support of certain Starwood development projects. The owner of the golf course lands responded shortly thereafter to say it was halting discussions with the Board until the lawsuit brought by the individual homeowners against the owner of the golf course lands was resolved.

As of today, that lawsuit is ongoing. On September 1, 2022, the Board reached out to Starwood in writing to restart discussions regarding future development, open space, and community benefits to PHCA, and to resume those discussions with PHCA even though the lawsuit with the individual homeowners was not resolved. In response, the golf course owner said it was eager to resume discussions with PHCA on these topics, but only when the lawsuit with the individual homeowners is dismissed. In addition to outreach to Starwood, members of the Board have also repeatedly communicated with the individual homeowners who brought the lawsuit in order to understand their goals and intentions and how those goals and intentions align with the entire Princeville community’s objectives. The Board’s understanding right now is that the individual homeowners want PHCA to agree to stop pursuing discussions with Starwood before they will negotiate with or share their litigation strategies and goals with PHCA.

Going forward, the Board intends to periodically check in with both the individual homeowners and Starwood to urge the parties to resume discussions. It is the Board’s considered opinion, based upon what it knows and understands at this time, that proactive discussions with the owner of the golf course lands regarding the future of those lands might be beneficial, in order for PHCA to best understand all of its options right now and in 2026 and after. To that end, it will continue to monitor the ongoing lawsuit and attempt further outreach to the parties to that lawsuit. There is no agreement between PHCA and the golf course owner at this time. With discussions stalled, the Board does not know if a mutually acceptable agreement with Starwood is possible. If an agreement ever does look possible, the Board members have agreed to present the terms of such an agreement to the entire membership for comment before a vote to approve the agreement takes place.

Given the purported expiration date of the Dedication, this is an important moment for the Princeville community. The Board is sincerely grateful for all e-mails, phone calls, conversations, and letters from members regarding development, preserving open spaces, and other community concerns in Princeville. Your input matters. The Board takes your feedback seriously in exercising its judgment regarding what is best for the Princeville community.


October 21, 2022 Update
On October 14, 2022, the Hawaii Supreme Court granted PHCA’s motion to submit a “friend of the court” brief explaining PHCA’s priorities and interests on behalf of its nearly 3,000 members and denied the appeal filed by the Starwood affiliate that owns the golf course lands in Princeville in the lawsuit between certain individual Princeville homeowners against the Starwood affiliate.

Click here to view the Hawaii Supreme Court order granting motion for PHCA to participate as amicus curiae.
Click here to view the Hawaii Supreme Court order denying the SOF-XI Kauai PV Golf petition for writ of mandamus.


September 28, 2022 Update
 
Earlier this month, PHCA sought permission to file a short “friend of the Court” brief (or “amicus brief) with the Hawaii Supreme Court in relation to an appeal of a lawsuit filed in 2021 by two individual Princeville homeowners against a Starwood affiliate that owns the golf course lands in Princeville to stop a proposed glamping project. As a follow-up to several questions on this subject that were raised during the meeting of the PHCA Board on September 15, 2022, the PHCA Board responds as follows:

Why did PHCA get involved?
The lawsuit pertains to golf course lands in Princeville, so when an appeal of this lawsuit was brought before the Hawaii Supreme Court last month, the Board voted to submit a short “friend of the Court” brief explaining PHCA’s priorities and interests, on behalf of its nearly 3,000 members, in matters impacting the entire Princeville community.

By filing an amicus brief in this lawsuit, has PHCA chosen to favor one side in the dispute over the other side?
No. From the PCHA Board’s perspective, it has not picked a side, and it is up to the courts to decide who should prevail in this dispute. The parties to the lawsuit are representing their own interests, which they have every right to do. PHCA, in contrast, is representing nearly 3,000 members in the Princeville community and filed the amicus brief on PHCA’s behalf to explain PHCA’s interests.

Some parties to the lawsuit believe the PHCA Board has chosen sides, and one party said the Board should withdraw its amicus brief. Will the Board do so?
The parties to the lawsuit may believe the Board, by submitting a short statement to the Court, is favoring one side over another. The Board disagrees. Rather, the amicus brief was submitted in an attempt to explain PHCA’s perspective, which is not represented in this private dispute, to the Court in a matter that impacts the entire Princeville community. Respectfully, the Board will not withdraw its amicus brief.

Has the PHCA Board reached out to the parties to the lawsuit to understand the perspectives and goals of both sides?
Yes.

Is the lawsuit in the public record, and are the proceedings and filings in the lawsuit and the names of the parties involved in the lawsuit open to the public?
Yes.

How does the Board justify paying lawyers and spending legal fees on this issue?
Since last year, the Board has expected it will need to proactively assert itself in administrative, legal, and legislative venues, as appropriate, to advance PHCA’s interests in preserving open spaces in Princeville. The document that restricts the use of golf course lands in Princeville purports to expire only three and a half years from now in 2026. The Board believes proactive measures in this area are important to preserve the interests of its nearly 3,000 members. To that end, qualified counsel has been retained to advise and assist the Board in these areas. The Board authorized a budget for these purposes and has remained within budget.

What was the Starwood affiliate’s response to PHCA’s request on September 1, 2022 to restart discussions regarding open spaces in Princeville?
In response to PHCA’s request to restart discussions now, the landowner told PHCA it is eager to resume discussions with the PHCA concerning the preservation of open space, future development, and community benefits when the lawsuit is resolved.

Is the PHCA Board interested in how all its members feel about this issue?
Yes. Through this entire period, the Board has been sincerely grateful for the e-mails, phone calls, conversations, letters, and testimony it has received from members on the ongoing subject of Starwood’s development projects in Princeville, as well as the subject of preserving Princeville’s open spaces now and after 2026. Your input matters. The Board takes your feedback seriously in exercising its judgment regarding what is best for the Princeville community.



September 2, 2022 Update
Today, PHCA sought permission to file a short “friend of the Court” brief with the Hawaii Supreme Court in relation to an appeal of a lawsuit filed in 2021 by two individual Princeville homeowners against a Starwood affiliate that owns the golf course lands in Princeville to stop a proposed glamping project. The “friend of the Court” brief, also known as an amicus brief, states that PHCA represents almost 3,000 owners and residents in matters impacting the Princeville community. It further states from December 2020 to October 2021, PHCA actively engaged in discussions with Starwood to permanently commit golf course lands owned by a Starwood affiliate to open space and to obtain other community benefits from Starwood for PHCA members, in exchange for the Board’s support of certain Starwood development projects. Those discussions were halted by Starwood in October 2021 because the litigation on the proposed glamping project was ongoing, and Starwood indicated that it was reluctant to engage in further discussions with PHCA until the lawsuit involving the individual homeowners was resolved.

As of today, that same lawsuit is still pending (including what is now an appeal to the Hawaii Supreme Court) and has not been resolved. The “friend of the Court” brief states that PHCA wants to resume discussions with Starwood sooner than later regarding further development, open spaces, and community benefits in Princeville, so that PCHA can best evaluate all of its options going forward. Click here to view the amicus brief.

The Board has been closely focused on the subject of maintaining open spaces in Princeville because the document that restricts the use of golf course lands in Princeville purports to expire only three and half years from now in 2026. To that end, PCHA last year submitted testimony to the Kauai County Council in support of Bill 2838, which was eventually passed into law as Ordinance 1105 and prohibited developed campgrounds in Kauai’s Open and Agricultural Zoning Districts. On August 2, 2022, in the glamping lawsuit between the individual homeowners and Starwood, the entire Board attended a hearing before the Kauai Circuit Court judge. When an appeal was taken to the Hawaii Supreme Court earlier this week, the Board voted to submit the “friend of the Court” brief explaining PHCA’s priorities and interests, on behalf of its nearly 3,000 members in the Princeville community, in the outcome of this matter.

Finally, PHCA yesterday asked Starwood to restart discussions regarding future development, open spaces, and community benefits. The Board intends to report on Starwood’s response, if any, at its next meeting on September 15, 2022.



December 13, 2021 Update
The Kaua'i Planning Commission agenda for its December 14 meeting includes a reference to a Notice of Withdrawal by SOF-XI Kaua'i PV Golf, LP (owner of the Makai Golf Course) for the developed campground project ("glamping"). See item J on page 4 of the meeting agenda - click here.

The application itself is not shown as an agenda item for consideration, which appears to confirm that there will be no hearing on the application.




November 24, 2021 Update
At its meeting on November 19, 2021, the PHCA Board unanimously voted to pass a resolution to file a petition to intervene in Starwood's glamping permit application proceedings before the Planning Commission. Other parties have already petitioned to intervene; however, they do not represent the membership as a whole. PHCA and its Board represent the interests of the entire membership and must have a seat at the table in the glamping application process so PHCA's interests can be considered and covered. PHCA's petition to intervene will need to be approved by the Planning Commission. Click here to view the Board resolution.



November 6, 2021 Update
, presented at the PHCA Annual Meeting:
This year the Board closely focused on the subject of maintaining open space in Princeville. It did so because the document that restricts the use of golf course lands in Princeville purports to expire only 4 years and 4 months from now in 2026. Therefore, the Board has been extremely mindful of the significant impact potential development might have. The Board carefully monitored Starwood’s efforts to obtain a special use permit for a proposed “glamping” project on a portion of the Woods Course as well as the progress of proposed legislation related to “developed campgrounds” in the Open District. On this important issue, the Board has been committed to hearing from all of its members by e-mail, phone calls, letters and at its monthly meetings. At the Board’s July, August, September and October meetings, the Board specifically reported the progress made in 3 specific areas. Here is the latest update.

First, a lawsuit was filed in state court by individual Princeville homeowners against Starwood to stop a proposed glamping project. Starwood named PHCA as a 3rd party to the lawsuit but never served PHCA with any papers. On October 15, Starwood notified the Court it would be dismissing PHCA from the case. In the meantime, the individual Princeville homeowners had also asked the Court to dismiss PHCA from the lawsuit. On October 27, the Court agreed with the request from both sides and dismissed PHCA from the lawsuit. The lawsuit continues, but to be clear, PHCA was never served and not a part of the lawsuit, so no legal fees have been spent by PHCA to litigate this case.

Second, County Bill 2838, sometimes referred to as an “anti-glamping” bill, has been under consideration by the Kaua'i County Council and the Kaua'i Planning Commission. According to the Council’s schedule, Bill 2838 could be passed by the Council and sent to the Mayor for approval as early as December 1. The Board has sent written testimony in support of Bill 2838 and specifically stated it is testifying in support in order to keep the discussion going by the County’s highest officials on a subject which affects Princeville’s future. Making sure PHCA has input in the conversation while the Bill goes through the legislative process is a high priority. The Board is committed to closely monitoring the progress of Bill 2838, participating in public hearings at every step of the way, and keeping its members informed.

Lastly, this year the Board and Starwood engaged in discussions
 to permanently commit the golf course lands to open space and to obtain other Princeville community benefits from Starwood, in exchange for the Board’s support of certain Starwood development projects. On May 1, Starwood offered in writing to permanently commit the golf course lands to open space – in exchange for the Board’s support of Starwood’s announced glamping project and other development projects – if and only if these projects were approved within 18 months. The Board felt that condition and other conditions imposed by Starwood were unacceptable. Because of those unacceptable conditions, the Board unanimously rejected Starwood’s offer at its June 17, 2021 meeting. Since that time, the Board has communicated to Starwood that it would be interested in a restrictive covenant that would protect the remainder of Princeville’s golf course lands forever and has proposed language to Starwood, the owner of the golf course lands, to accomplish this purpose. At this time the Board does not know if a mutually acceptable agreement with Starwood is possible. If an agreement ever does look possible, the Board intends to present the terms of such an agreement to the membership for comment before any vote to approve or reject an agreement takes place.

It has been an honor for this Board of Directors to serve the PHCA members and to address a critical issue which may impact Princeville in the near future. The input of PHCA’s members is vital. We appreciate your constructive feedback and support.



October 21, 2021 Update
:
The Board has been fighting for the preservation of open space in Princeville right now and in the future on 3 different fronts. Here is the latest update.

First, regarding a lawsuit filed in state court by individual Princeville homeowners against the golf course owner (also known as Starwood) to stop a proposed glamping project, in which PHCA was named as a 3rd party to the lawsuit, PHCA as of today still has not been served with any papers. If PHCA ever does get served and brought into this lawsuit or any other court case, the Board will take appropriate actions which are in the best interests of PHCA. The Board will not comment further at this time.

Second, County Bill 2838, sometimes referred to as an “anti-glamping” bill,  is now under consideration by the Kauai County Council. The Board sent written testimony in support of the bill passing first reading to keep the discussion going by the County’s highest officials on this important topic for Princeville’s future. The Board knows the first version of a bill often looks very different from the final version that gets passed into law. Making sure the Association has input in the conversation while the bill goes through the legislative process is a high priority. The Board is committed to closely monitoring the progress of Bill 2838, participating in public hearings at every step of the way, and keeping members informed.

Lastly, the Board reports the following regarding discussions with Starwood
 to permanently commit the golf course lands in to open space and other benefits to the Princeville community, in exchange for the Board’s support of certain Starwood development projects. The dedication that restricts the use of Princeville’s golf course lands purports to expire in 2026. The Board has indicated to Starwood that it is interested in a restrictive covenant that would protect Princeville’s golf course lands forever and has proposed language to Starwood, the owner of the golf course lands, to accomplish this purpose. Active negotiations continue, and at this time, the Board does not know if a mutually acceptable agreement with Starwood is possible.  If an agreement ever does look possible, the current Board members have agreed to present the terms of such an agreement to the membership for comment before a vote to approve the agreement takes place.

The current Board will keep taking action in these 3 fronts to advance PHCA’s common interest in preserving open spaces on Kauai’s North Shore.



September 17, 2021 Update
presented at the September 16 PHCA Board of Directors' meeting:

The Board is sincerely grateful for the e-mails, phone calls, conversations, letters and testimony it has received from members on the ongoing subject of Starwood’s announced glamping project and other development projects, as well as the subject of preserving Princeville’s open spaces now and after 2026. Your input matters. The Board takes your feedback seriously in exercising its judgment regarding what is best for the Princeville community.

The Board has been closely tracking these issues on 3 different fronts. Here is an update.

First, the Board has taken significant interest in County Bill 2822, which has sometimes been referred to as an “anti-glamping” bill. Every time it has been heard by the Planning Commission, PHCA has submitted formal comments to register the Association’s very strong interest in preserving open space in Princeville. Two days ago, the Planning Commission passed the Planning Department’s version of Bill 2822 and sent it back to the County Council for further hearings and approvals. The Board knows that the version sent from the Planning Commission may or may not be the same version of the Bill that eventually gets passed, if it even gets passed at all. PHCA will continue to monitor and participate in hearings regarding Bill 2822 every step of the way. It will be actively reaching out to County officials and elected officials so that the Association’s input is part of the conversation as this Bill goes through the legislative process.

Second, regarding a lawsuit filed in state court by individual Princeville homeowners against the golf course owner (also known as Starwood) to stop Starwood’s announced glamping project, the Board has been made aware of a recent court filing that purports to bring the Association into the litigation. As of today, PHCA has never been served with any papers related to this lawsuit. The Board should not and will not make any comments about what actions the Board will take unless and until the Association gets served. Commenting now could be deemed as receiving formal notice of the litigation. If the Association is served, at that time, the Board will review the merits of the claim and then take appropriate actions that are in the best interests of PHCA.

Third, active discussions are ongoing between the Board’s representatives and Starwood regarding the possibility of a formal agreement to permanently commit the golf course lands to open space and other community benefits, in exchange for the Board’s support of certain Starwood development projects. Those discussions have been productive. As of today, no new offer has been extended by either side, and there is no agreement. The Board is sensitive to the fact that within the community, some individual members are strongly in favor of the Association making an agreement with Starwood, others are strongly against this, and others are somewhere in between or perhaps indifferent to the issue. The Board continues to do its due diligence on this very important matter. It is doing its best and will continue to do its best to weigh the pros and cons in deciding what to do next.

As the Board stated in previous meetings, it is committed to determining the most supportable path forward. This is an important moment for the Princeville community. The Board will take action in administrative, legal, and/or legislative venues, as appropriate, to advance PHCA’s interests. 



August 20, 2021 Update
, presented at the August 19 PHCA Board of Directors' meeting:

The dedication that restricts the use of Princeville’s golf course lands purports to expire in 2026. The Board’s common focus has been on preserving open space in this community now and after 2026. To that end, in recent months the Board has concentrated on 3 different matters that may impact Princeville’s open space in the future.

First, in response to an offer dated May 1, 2021 from the golf course owner (also known as Starwood) to permanently commit the golf course lands to open space – in exchange for the Board’s support of Starwood’s announced glamping project and other development projects – if and only if these projects were approved within 18 months, was unanimously rejected by the Board at its June 17, 2021 meeting. At the same time the Board rejected Starwood’s May 1 proposal, it authorized qualified counsel to continue discussions with Starwood to see if there are any viable options to guarantee the preservation of open space after 2026. Those discussions are both active and ongoing. As of today, Starwood has not made a new offer. Therefore, there is nothing in front of the Board to decide at this time. Specifically, the Board has made no decision yet, either formally or informally, to support or oppose Starwood’s glamping project. The Board understands that Starwood has submitted a permit application to the County Planning Department to allow glamping on Princeville’s golf course lands and is closely monitoring upcoming deadlines to provide input to the County. The Board continues to welcome the input of its entire membership on this very important issue.

Second, with respect to Bill 2822 that was initially heard by the County Planning Commission on July 13, 2021, the Board submitted formal comments to the Commission registering the Association’s very strong interest in preserving open space in Princeville. Many Princeville homeowners and members of the Association testified in their individual capacity regarding Bill 2822. The Planning Commission deferred action on Bill 2822 to September 14, 2021. The Board is monitoring all developments related to Bill 2822 and will continue to provide input to the County when there is an appropriate opportunity to do so.

Third, with respect to a lawsuit filed in state court by individual Princeville homeowners against the golf course owner to stop the glamping project, a hearing on a motion by Starwood to dismiss the lawsuit took place on August 19 before Judge Kathleen Watanabe. At that hearing, Judge Watanabe denied the motion to dismiss. The Board and its counsel will review Judge Watanabe’s decision closely to evaluate what it means for the Princeville community and the Association’s members.

The Board is mindful and committed to determining the most supportable path forward. This is an important moment for the Princeville community, and the Board expects to take action in administrative, legal, and/or legislative venues, as appropriate, to advance PHCA’s interests.




July 16, 2021 Update
, presented at the July 15 PHCA Board of Directors' meeting:

The Board remains focused on preserving open space in Princeville. It is mindful of the significant impact potential development might have, and continues to work with counsel to determine the most supportable path forward. Close attention is being paid to the golf course owner’s efforts to obtain a glamping permit and to the progress of proposed legislation related to those efforts.

The larger issue is the status of golf course lands in the year 2026. The document that restricts the use of those lands purports to expire then. The Board expects to take action in administrative, legal and/or legislative venues, as appropriate, to advance PHCA’s interests, unless significant and substantial benefits can be secured for the community through dialogue with the golf course owner.

As previously reported, qualified counsel has been retained to assist the Board on the discussions with Starwood Capital Group and other matters. The Board continues to welcome and appreciate the input of the PHCA membership on this very important issue.


July 16, 2021 Update: Kaua'i County Bill 2822

At the Kaua‘i Planning Commission meeting on Tuesday, July 13, the Commission voted to deferred action on Bill 2822 to its September 14, 2021 meeting.

Many individual members of the Princeville community testified in support of Bill 2822, and some even directly referenced Starwood’s pending glamping application and asked the Commission to deny it. Planning Director Ka‘āina Hull confirmed that the Planning Department received Starwood’s tentative application for the Princeville glamping project and that it was initially rejected because it was incomplete and needed additional documentation. He further stated that Starwood probably only needs a few more weeks to get the application into an acceptable form.

After Starwood submits an acceptable application, according to Director Hull, it will take about 2 months for the Planning Commission to review and act on the application. This means the Starwood application could get processed before the Kaua'i County Council votes on Bill 2822.

Director Hull said that if an applicant submits a use permit application for developed campgrounds (e.g., the Starwood application) before Bill 2822 gets passed, then Starwood could argue, and the County might agree, that the use permit application is vested under the version of the
 Kaua'i Comprehensive Zoning Ordinance (CZO) in place when the application was submitted and received by the Planning Department. Therefore, the application would be reviewed by the Planning Commission as if developed campgrounds were still permitted in the Open District. In other words, if Bill 2822 is passed after Starwood’s application has been submitted, it arguably would not apply retroactively to preclude Starwood’s project.

Many PHCA members have urged the PHCA Board to defer any action on Starwood's use permit and let the legislative process play out. If Director Hull's statement regarding the timing issue is correct, then there is the possibility that Bill 2822 may already be too late to stop the Starwood glamping project.



June 29, 2021 Update:

The Kaua'i Planning Commission's July 13 meeting will include public testimony for Bill 2822. The PHCA Board agreed to submit comments to the Kaua'i Planning Commission regarding Bill 2822 indicating that PHCA’s members share a common goal of preserving open spaces in Princeville, both in the immediate future and in the long term. Click here to view the testimony emailed to the Kaua'i Planning Commission on June 29.



June 28, 2021 Update:

At its June 17 meeting, the PHCA Board voted to reject Starwood's May 1 proposal and approved continuing discussions with Starwood. PHCA counsel Starn O'Toole Marcus & Fisher subsequently informed Starwood Capital Group - click here to view the letter.



June 14, 2021 Update:

Memo from the PHCA Board to PHCA Members:

The Dedication of Golf Course Property (“Dedication”) recorded in 1972 provides, in relevant part, that certain lands “are dedicated to golf course and ancillary recreational uses for a term of years expiring February 28, 2026.” There is an historical basis for expecting those lands to remain open after the Dedication expires, and the Board of Directors (“Board”) of the Princeville at Hanalei Community Association is focused on preserving those lands as open space to the greatest extent practicable under the circumstances.

The Board has recently retained the services of Starn O’Toole Marcus & Fisher to represent PHCA as engagement continues with the land owner (Starwood Capital Group). The Starn O’Toole firm is a well-known law firm with significant expertise and capacity. Doug Chin, Esq. is lead counsel for this assignment. The land owner maintains that its controversial “glamping” project fits within the “ancillary recreational uses” presently allowed by the Dedication. PHCA does not concede that point, and recognizes the existence of numerous other significant legal questions as well. PHCA reserves all of its rights and remedies.

PHCA lacks unilateral control over the dedicated land because that land is not part of PHCA. In general, therefore, vindication of the community’s strong interest in preserving open space depends upon the successful pursuit of legal remedies (in legislative and/or judicial arenas) or upon agreement with the land owner.

Due diligence has included extensive historical and land use research and discussions with legislators and community members. Due diligence also has included exchanges with the land owner that have yet to result in a proposal that the Board can support. The Board remains open to further good faith discussions with the land owner. Although finding common ground is always the goal of these discussions, that may or may not be possible.

The Board is prepared to take positions that are well-founded, in fact and law, and to vigorously pursue meritorious claims and defenses if necessary. The outcome of litigation is always uncertain, of course, which provides incentive for the parties to reach an agreement that yields the greatest good for the community as a whole.


Other Updates:

Starwood Capital Group presentation at the Makai Grill Lanai on June 10, 2021:
Click here for the presentation recording video.

Click here for the 
Current Glamping Site Plan (5/12/2021)

Click here for the Original Glamping Site Plan (8/10/2020)

Glamping Use Permit Application to the Planning Department submitted by Starwood on May 17, 2021

Click here for the Glamping Fact Sheet and Frequently Asked Questions, received on May 17, 2021 from Starwood Capital Group.

Click here for the letter received on May 3, 2021, from Starwood Capital Group to PHCA (per Starwood Capital Group, the Glamping gathering pavilion was removed prior to permit application submission to the Planning Department).

Click here for the December 2020 letter from the PHCA Board to Starwood Capital Group.

In its April 7th meeting, the Kaua'i County Council passed first reading of Bill 2822. If passed, the Bill would define "developed campground," modify the Kaua'i County Comprehensive Zoning Ordinance to restrict use permits for a developed campground on Open- or Agriculture-zoned properties, and affect the glamping project. The Bill has been referred to the Planning Department for review. Click here to review how a Bill becomes law.




The information below is based on a newsletter emailed by the Princeville at Hanalei Community Association to its members on December 4, 2020; updated information is presented as well. Content printed in blue indicates a hyperlink for additional content.

A Bit of History & the Facts


Princeville at Hanalei Community Association (PHCA) was established almost 50 years ago. From its inception through the next 20 years or so, much (though not all) of the land you see on the Princeville map below was declared to be subject to the PHCA Protective Covenants. As a result, buyers of vacant land, homes or condos automatically become PHCA members.

The hotel (currently under renovation and to be reopened with the 1 Hotel Hanalei Bay brand) is a member of PHCA. The Makai Golf Course (18 holes) and the Woods Golf Course (9 holes) were never declared to be subject to the PHCA Covenants and so are not members. Starwood Capital Group (SCG) is the owner of the hotel, the Makai Golf Course, and the Woods Golf Course. Combined, the Makai and Woods comprise about 290 acres of open space in the middle of our Princeville community.

The Makai and Woods (all 27 holes) are subject to a “Dedication,” which limits the use of the land to “golf course and ancillary recreational uses.” It was amended in July 1980 and then again in May 1986. The Dedication expires on February 28, 2026. Kaua'i County’s Comprehensive Zoning Ordinance (CZO) applies to the golf courses, and upon expiration of the Dedication, it is possible that the land owner could claim entitlement to develop the land. This does not mean the owner will develop the golf courses for residences, but it could claim the option to do so. The land owner might even claim that no public hearing is required for the owner to use the golf course lands for residential development. PHCA reserves all of its rights and remedies, including to consider potential litigation at an appropriate time. It is recognized, however, that litigation could be protracted and cost hundreds of thousands of dollars. The outcome of litigation is always uncertain and the risks associated with it must be taken into account.

At its November 25, 2020 meeting, the Kaua'i County Council discussed and deferred indefinitely a proposed Ordinance drafted in 2002 by then-Council Chairman Ronald Kouchi. Called Bill 2044, it sought to impose a building restriction on certain open spaces in Princeville. The Bill sat dormant with no action for 18 years. Proponents of Bill 2044 would like the current county council to approve it or a more modern version of it, and a couple of council members have indicated they will introduce a replacement bill. Land owners are expected to argue that Bill 2044 is an unconstitutional "taking" of private property without compensation if development restrictions are placed on their Open-zoned lands without their consent. PHCA anticipates Bill 2044 (or its newer version) will follow a different track and timeline than the "glamping use permit" about to be submitted by SCG and described below.
 For County Council documents related to Bill 2044 as of November 25, 2020, click here.



 

Glamping in Princeville & 2026


As the owner of the golf courses, SCG may claim the power and authority to sell, encumber, or develop the golf courses subject to CZO parameters. SCG and its partner, East West Partners, are planning to build a glamorous luxury camping site ("glamping") with 50 campsites on about 25 acres of what is currently the Woods holes #1 - #3.

With the Dedication still valid, the glamping project requires a “use permit” from the Kaua'i Planning Commission. The public may participate in the permitting process and may support or oppose any application. SCG has indicated that it will submit the glamping project permit application to the Planning Commission within the next few weeks. PHCA’s participation in the glamping use permit process could influence the outcome for SCG, and SCG has sought PHCA’s support for the glamping project to increase the probability of use permit approval by the Kaua'i Planning Commission. As of December 22, 2020, the PHCA Board has not taken a position on the glamping project.

There are two principal matters for consideration:
1) The glamping project and PHCA's position;
2) The possibility that SCG may develop the golf course lands for residential use beginning in 2026.

To fulfill its fiduciary duty to the community, the PHCA Board is conducting due diligence to understand the facts. It has conducted extensive research on these matters and obtained legal opinions on allowable development on the golf course parcels, land use laws, zoning regulations, impact of the current Golf Course Dedication on the Kaua'i Planning Commission's decision on the upcoming glamping use permit application, and more. The PHCA Board has also begun negotiations with SCG through its partner East West Partners, to understand what SCG would be willing to contribute in return for PHCA support. To be clear, the negotiations have begun but the Board has not made a final decision on its position regarding the glamping project.

Through East West Partners, SCG has stated that if PHCA will support its use permit application for the glamping project, SCG will:
* Preserve the Makai Golf Course (18 holes) as open space with zero residential development.
* Maintain status quo on the Woods Golf Course holes #4 - #9 until 2026.
* Enhance fitness, restaurant and recreational offerings at the Makai Clubhouse.
 

Community Feedback Through a Survey

From December 4-11, 2020, PHCA community members were invited to respond to a survey so the Board can understand the overall community sentiment regarding SCG's initial offer in return for PHCA support. Additional questions were asked to understand members' sentiment about other community elements as well. The results were presented at the PHCA Board General Meeting on December 17.

Click here for the survey results.