LIHUE The company behind a timeshare development in Kapaa which recently defaulted on a $10 million loan to finance the project is now being sued by a public relations firm for nearly $75,000 in unpaid monthly fees.
LIHUE — The company behind a timeshare development in Kapaa which recently defaulted on a $10 million loan to finance the project is now being sued by a public relations firm for nearly $75,000 in unpaid monthly fees.
A civil complaint filed Thursday in Fifth Circuit Court on behalf of Fujita &Miura Public Relations alleges that SPD II Makaiwa Resort Development LLC has not made contractually obligated monthly payments for well over a year, racking up a total outstanding debt of $74,246 since December 2017.
Makaiwa Resort Development, a corporation that owns 21 acres of land adjacent to the Courtyard Kauai at Coconut Beach in Waipouli, also recently defaulted on a loan it took out two years ago to finance the construction of a timeshare development called the Coconut Beach Resort on the land, according to loan foreclosure documents filed earlier this month.
According to a contract attached to the public relations firm’s civil compliant, Makaiwa Resort Development originally intended to complete the bulk of a 326-unit “shared-ownership resort” called Coconut Beach Resort by the summer of 2018 and have the finishing touches complete by early 2019.
It is unclear what work, if any, has actually been completed toward the construction of the proposed timeshare complex, but the developer apparently still intends to move forward with the project.
Mitch Heller, manager of Makaiwa Resort Development, could not be reached for comment in time for the publication of this article, and previously declined to comment on the foreclosure.
But in an email last week, Heller said his company is “committed to commencing development this summer.”
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Caleb Loehrer, staff writer, can be reached at 245-0441 or cloehrer@thegardenisland.com.
