“Tidings of comfort and joy” aren’t unusual this time of year. But on an island sometimes skeptical of the intent of large landowners, the new owner of Grove Farm Co. Inc. has received a warm welcome before even setting foot
“Tidings of comfort and joy” aren’t unusual this time of year.
But on an island sometimes skeptical of the intent of large landowners, the new owner of Grove Farm Co. Inc. has received a warm welcome before even setting foot on the island as Kaua’i’s second-largest private landowner.
Shareholders of Grove Farm have approved the sale of the company for just over $26 million, or $152 per share for the 171,122 outstanding shares in the company, to a pair of companies headed by Steve Case, chairman of America Online.
Local reaction to the sale announced last Friday – with the exception of Hanalei resident and shareholder Michael Sheehan, who filed a lawsuit to block the sale – was positive.
“Our response to this news is, basically, mahalo and aloha.
Welcome,'” said Beryl Blaich, spokeswoman for Malama Maha’ulepu, a group recently remobilized in hope of long-term preservation of the coastline portion of Case’s new Kaua’i acreage.
“We share the sense of comfort and optimism expressed by the Wilcox family members,” Blaich said. “Steve Case’s ties to Grove Farm and roots to this place and ownership by another family known for progressive leadership and community involvement is truly good news for Kaua’i.” South shore-area residents and businesses will be curious about Case’s plans for the sprawling, undeveloped Maha’ulepu coastline, said Margy Parker, executive director of Po’ipu Beach Resort Association.
The recently approved Kaua’i County General Plan update calls for the landowner to work with the community to develop a vision for Maha’ulepu, and Parker said she hopes the new owner will adopt those guidelines.
Case is a Punahou graduate whose father, attorney Dan Case, grew up on Grove Farm land, and whose grandfather was Grove Farm’s chief financial officer for 40 years.
Representatives of the company’s founding Wilcox family referred all questions about the sale to Dan Case, but said the family is pleased that Steve Case has bought the company.
In so doing, Case, who in 1999 purchased about 40 percent of Maui Land & Pineapple Co., becomes a major player in Hawai’i real estate, noted Floyd Takeuchi, editor and publisher of Hawai’i Business magazine.
“Where Steve Case goes, the investment community usually follows. I think you’re going to see some of that on Kaua’i, and I think it’ll be good for some of the companies there,” said Takeuchi, noting the instant interest generated in the mainland financial community when Case put $39 million into Maui Land & Pineapple last year.
“I suspect there will be more mainland investor interest in just what’s happening on Kaua’i, because if Steve Case is there in a big way, there’s got to be something. At least that would be the feeling in the (financial) community,” Takeuchi said.
“And I think that’s going to be good for Kaua’i companies,” whether they’re in tourism, high-tech, agriculture, or others, he continued. “Given the kind of investments he’s making, which are the land, I think it would bode well for the island as well as the company in terms of his commitment to be there for the long haul, to make it grow.” With major holdings on Maui and Kaua’i, “what it seems to be is that he’s doing a long-term play here, that he won’t be a short-term investor looking to realize a return in three to four years,” Takeuchi said. “At least it gives it some stability knowing that there is an investor who is looking very likely long term, and has some feeling for the islands.
“It seems to me another indication that we’re getting, number one, realistic valuations back in the market for major property holdings. And that’s good news for the economy, because it means that the investors or the owners have more of an opportunity now to put money into the properties, which wasn’t the case in the 1990s, when the valuations were kind of topsy-turvy.” On a statewide basis, a high-profile investor like Case – whose AOL Internet company is awaiting federal approval of its $110 billion purchase of Time Warner Inc. – buying parts of or entire companies “can only be good. He’s a very, very high-profile investor. He’s an international investor,” Takeuchi said. “And the kind of substantial investments he’s making here — certainly substantial by our standards — are only going to draw attention to Hawai’i opportunities.” It won’t be a frenzy of money pouring into the state like the 1970s and ’80s, but it will be beneficial to the state, Takeuchi added.
“Hawai’i can only grow if it gets substantial outside investor money into the economy. This has got to be just good news overall for the state, and the continued growth of the economy,” said Takeuchi. “Steve Case wants to make a profit on the operation.
He’s not investing just for the heck of it. I really do think his vision is much longer-term. He’s willing to work with the community.
“He has, through his dad in particular, a real good feel for what reality is, and realistic expectations on returns. It’s not going to just be a board of directors someplace thousands of miles away who don’t have a feel for the land or the community,” said Takeuchi.
“It’s a preservation opportunity. It’s not a development opportunity,” Blaich said. “But that doesn’t mean there aren’t important benefits for a landowner to take that route. They’ve got the most wonderful opportunity of any landowner in Hawai’i to do something creative that benefits both the landowner and the long-term public hopes.
“So, although we understand that the new management of Grove Farm has a long list of immediate things to attend to, our group deeply hopes that exploring possibilities for the long-term conservation of Maha’ulepu can be on the ‘to-do’ list. And we certainly look forward to sharing some of what is known about the significance and importance of Maha’ulepu with Mr. Case and with his representatives.” No matter who owns “unique area,” it simply merits preservation, Blaich said.
“There is overwhelming public support for this.
Decision-makers understand and share this sentiment,” Blaich added. “Right now, there is so much energy and know-how mobilized. There is an eagerness and a readiness to work together on finding a creative and fair way to preserve and steward Maha’ulepu.” Staff Writer Paul C. Curtis can be reached at pcurtis@pulitzer.net or 245-3681 (ext. 224).
