PO‘IPU — While exact numbers could not be confirmed by press time, it is believed some 20 full-time employees were laid off Thursday from the South Shore development company Kukui‘ula. This follows a 20 percent staff reduction that reportedly occurred
PO‘IPU — While exact numbers could not be confirmed by press time, it is believed some 20 full-time employees were laid off Thursday from the South Shore development company Kukui‘ula.
This follows a 20 percent staff reduction that reportedly occurred last October.
Kukui‘ula is a 1,000-acre master-planned resort residential community in Po‘ipu.
Richard Holtzman, president of Kukui‘ula, said it was a “difficult decision to adjust staffing.”
Layoffs covered a variety of departments from marketing and sales to accounting and project management, although construction workers who are largely focused on completion of the golf course and clubhouse will continue to work on-site, he said.
Alexander & Baldwin announced Wednesday that it would be increasing ownership participation in the Kukui‘ula Development Co. venture.
Hawai‘i-based A&B Properties Inc., in partnership with Arizona-based DMB Associates and Kukui‘ula Development Company, will collectively invest an estimated $165 million of capital over the next three years to complete the project’s primary recreational amenities, such as the clubhouse and golf course, as well as infrastructure serving its residential components, including roads and utilities.
Holtzman said this “indirectly” coincides with the recent layoffs.
“This recap of the project really assures the long-term viability and success of the project but unfortunately does not change the environment of the soft real estate market which we feel will continue for another 12 months,” he said.
Subdivision improvements have already been completed for 123 lots, while completion of the 18-hole golf course and clubhouse, resident club, restaurant and spa is slated for late 2010.
“All of this activity, other than the shopping village, is slated to point to an opening in late 2010, as we are simply in a period of a very soft market which translates to very slow sales,” Holtzman said. “There will be continued activity, but it will target development and construction.”
In April, the Chamber of Commerce offered a sneak peak of Kukui‘ula Shopping Village during a Business After Hours event. At that time, Holtzman planned for the complex to open early summer, though now he expects it to be closer to the end of the season.
“Our hope is that as we draw close to the later part of 2010, we will need to prepare for a very busy time, that many of these fine people that we parted with will be able to join with us again,” Holtzman said.
• Coco Zickos, business and environmental writer, can be reached at 245-3681 (ext. 251) or czickos@kauaipubco.com.
