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. |