PO‘IPU — The national and local economic downturn, though challenging for business, isn’t breaking Kukui‘ula Development Co.’s stride. Yesterday the company broke ground on the $100 million recreational centerpiece to its 1,010-acre South Shore luxury resort residential community. The Plantation
PO‘IPU — The national and local economic downturn, though challenging for business, isn’t breaking Kukui‘ula Development Co.’s stride. Yesterday the company broke ground on the $100 million recreational centerpiece to its 1,010-acre South Shore luxury resort residential community.
The Plantation Core phase includes a 20,000-square-foot clubhouse, golf course and spa, and is expected to come online in late 2010. Plans are slightly behind schedule, but Kukui‘ula’s scale and partnerships have kept the momentum going.
Kukui‘ula Development Co. President Richard Holtzman said the company has responded to the downturn — evidenced by cooling interest in the multi-million-dollar residences as well as tenant leases at the shopping center — by adjusting the development phases to better coincide with projected economic growth, expected to pick up slowly by the end of next year.
“We’re largely doing it to be in the right place when the economy turns,” Holtzman said, expressing confidence that the economy will cycle back to a position of strength.
Key project partners acknowledged the difficult times at the groundbreaking ceremony yesterday, while noting that the commitment to proceed strengthens the island’s job market.
Kaua‘i-based Linthicum Custom Builders will serve as general contractor, and the timing couldn’t have been better, according to owner Eric Linthicum.
Linthicum said the two- to three-year contract will keep his staff of 20 and close to 200 sub-contracted workers busy during an uncertain period for the industry.
“Our hope is that this will take us through the economic downturn,” Linthicum said. “It will fill a void in the workplace.”
Kukui‘ula expects the resort community to have a “significant” economic impact, both direct and indirect. The company currently employs 80 individuals, and expects that number to jump to 300 with the addition of the amenities.
Work continues on the homesites as well as a retail shopping center, which will come online mid-year 2009. A resort is also planned for the community, though a timeline has not been assigned.
Kukui‘ula Development Co. LLC is an affiliate of Scottsdale, Ariz.-based real estate development and investment firm DMB Associates Inc. and A&B Properties Inc., a subsidiary of Alexander & Baldwin Inc., one of Hawai‘i‘s largest private landowners.
• Blake Jones, business writer/assistant editor, can be reached at 245-3681 (ext. 251) or bjones@kauaipubco.com
