Every Friday evening, 5:30 PM – 8:30 PM, the Canoes is open for The Grill at Canoes, offered by the Ilikai hotel. Here is The Grill at Canoes menu. Visitors to The Grill can enjoy the sunset – and the traditional Ilikai’s live Hawaiian music and Hula show that takes place right in the same area.
7-3-09 A letter from an owner to the Ilikai AOAO Manager and Board re Hilon luau noise
Here is a letter re the Hilton luau noise that an Ilikai owner wrote to the Ilikai AOAO Manager and Board of Directors prior to the last Board meeting. The letter describes the situation and proposed action. The Board's position has been that it is up to individual owners to deal with this.
Owners have repeatedly reported the problem to the Liquor Commission. The Liquor Commission took multiple noise readings, established that the noise levels have been exceeding legal limits, and issued noise violation citations. There will be a LIQUOR COMMISSION HEARING re this - we are finding out when and where. The hearing will be open to the public, and attendees will be given an opportunity to voice in person their concerns. Meanwhile, if you are concerned re that noise, PLEASE make an effort to report your concerns to the Liquor Commission at their 24-hour line 768-7363 (leave a message there). Unless we act, nothing will change.
7-2-09 Here is the "Environmental Site Assessment Report" for the Ilikai Tower, dated February 2006. To make it easier for readers, here are the 10 most pertinent pages, that also highlight, with hand-written notes, key information. Please also keep in mind that there is a recently completed forensic architect study, available at the AOAO office.
6-30-09 VERY IMPORTANT UPDATE re Hilton luau noise - PLEASE READ AND ACT!!!
Well, folks, get this: According to the Liquor Commission, they (the Liquor Commission) have given two noise violations citations to Hilton – and there will be a LIQUOR COMMISSION HEARING re this! The hearing has already been scheduled. I am getting the details when and where, and will let you know of course. The hearing is open to the public, and attendees will be given an opportunity to voice in person their concerns. Meanwhile, if you are concerned re that noise, PLEASE report it to the Liquor Commission at their 24-hour line 768-7363 (leave a message there). This is our opportunity for a positive change.
6-30-09 Brian Anderson files another Chapter 11 bankruptcy, plus another update
Honolulu Advertiser reports on another Chapter 11 bankruptcy filed by Brian Anderson and his company. This one is for the Coconut Grove Marketplace in Kailua, Kona, on the Big Island.
By the way, as we are continuing to gather more information about the whole situation at the Ilikai, including the Yacht Harbor Tower (YHT), new details emerge. For ex., it appears that splitting off with YHT was not the original intent at all. Much of the due diligence groundwork did not have any assessment of feasibility and what it would take for YHT to become a stand-alone property, such as the infrastructure, incl. the loading dock etc. It appears, from various documents, that initially there was a well known condo-hotel conversion guru in the picture (from CA, with ties and projects in HI, we have the name). It appears that that person backed out, and then it became difficult for Brian Anderson to pull together enough moneys for both the main Ilikai Tower and YHT. Hence, YHT got sold off. It is hypotheses, but that is what it looks like based on various documents. Readers are invited to e-mail additional information (incl. anonymously).
6-29-09 “IT'S A LOT OF MONEY.”
Well, folks, please read this Honolulu Advertiser article re the Wallace Theater lease buyout. It offers much relevant insight. It reports on the original lease that Wallace, the Hollywood Theaters President, negotiated back in 1993 with the developer, Bruce Stark (same developer as at Canterbury Place, by the way). That lease allowed Hollywood Theaters to lease the space for 40 years for $1 a year. The lease was not due to expire till 2034. But in 2007 Wallace reached an agreement with Pacific Office Properties that allowed Pacific to end that lease in exchange for a cash payment. When asked re the buyout amount, Wallace replied, “It’s a lot of money.”
That’s what happens with those leases. For Lessors, those leases can be a huge-huge encumbrance. But for Lessees, those leases can be priceless assets and huge-huge leverage.
Why am I posting this? Because this example offers insight into our situation with the 99-year Security Office lease that the Ilikai AOAO has the Yacht Harbor Tower – in our favor. The Ilikai AOAO is the Lessee, and for us, that lease is a huge asset.
By the way, click here to view the official definition of “association property." Hawaii HAR Chapter 107, specifically HAR 16-107-62, states unambiguously, “"Association property" means those parts of a condominium project which an association is obligated to maintain, repair, or replace, including but not limited to:… (2) Any real property which is not part of the common elements but which the association either owns or leases for a term of more than one year…” (Emphasis added.)
So that 99-year Security Office lease constitutes the Ilikai Association property, i.e., of all of us.
Why am I writing this? Because there are indications that eRealty may want to buy out of that lease for peanuts, because for them, that lease could be considered a major encumbrance.
6-29-09 A new restaurant at the neighboring Hilton
Star Bulletin reports on a new restaurant, Tropics Bar & Grill, on the premises of our neighbor, Hilton Hawaiian Village. Please note that accessing the premises of Hilton Hawaiian Village for us now easier than ever. In the past, we had to walk all the way to the other side of the village. Now we just cross Dewey Lane (which got recently renamed, by the way) – and here we are, just walk through their new tower. It’s nice to have that, while our restaurants at the Ilikai are closed for the time being.
6-28-09 VERY IMPORTANT: eREALTY's work at YACHT HARBOR TOWER and potential serious SAFETY CONCERNS
When the Yacht Harbor Tower (YHT) was developed in 1966, it was built not as a stand-alone property but an ancillary building to the main Ilikai Tower. It shares with it the Pacific Terrace plaza area (the second level of the complex) and parking garage. The two-level garage extends under the YHT’s Pacific Terrace to the Ilikai Tower. Historically, YHT also shared the Ilikai Tower’s infrastructure, such as the trash compactor and loading dock, by virtue of YHT being an annex to the hotel component of the Ilikai complex, with the same ownership. When Brian Anderson broke up the Ilikai complex by selling off YHT, it appears that the parties involved did not fully realize the implications. Can YHT exist as a stand-alone property, rather than as an annex to the main Ilikai Tower? Could the breakup be in violation of the LUO and WSD density requirements?
Right now, eRealty is conducting really extensive work at YHT, incl. very extensive gutting, demolition, removal of wall sections, jack hammering into the ground, etc. Have they conducted the proper environmental assessment in accordance with HRS 343 and other regulations? What about a structural feasibility study by civil engineers? What about a load bearing study? Where is the documentation of that? With all that gutting, demolition and invasive jack hammering, incl. into the ground, is there potential for structural damage, considering that YHT is ancillary to the main Ilikai Tower and shares structural components? Considering that YHT is structurally connected to the main Ilikai Tower, shouldn't eRealty keep the Ilikai AOAO fully apprised of such major, invasive renovation plans? These are serious SAFETY CONCERNS.
As a counter example, take a look at the detailed “HRS Chapter 343 Environmental Assessment/Determination Negative Declaration” that was conducted and submitted by Jowa Hawaii Co., Ltd. back in 1990. Note how detailed it is, even though the actual proposed renovations were not structural (except for modifications to the porte cochere) but cosmetic in nature.
Also, what about the infrastructure, such as the loading dock, for YHT to operate as a stand-alone property? You may recall that eRealty resorted to using the Ilikai’s pedestrian ramp to transport their bobcat to the second level (and caused significant damage to the ramp). (Speaking of which: the Ilikai AOAO still has not collected any money from eRealty for that damage, even though it has been well over a year.)
Here is also the "Environmental Site Assessment Report" for the Ilikai Tower, dated February 2006. Has eRealty conducted such an assessment for YHT?
Please also note that eRealty has a track record of problems during renovations, without proper due diligence first. Here is a Star Bulletin article of 2007 reporting on eRealty's mold and water damage problems, resulting lawsuits and hotel closure at the Wyland Waikiki Resort & Spa. The article reports on a lawsuit against eRealty that alleged that eRealty sold the hotel with major construction defects while concealing those from the buyer, Lodging Capital Partners LLC. The article reports that “at the time the sale closed, eRealty Construction LLC was in the middle of renovating the hotel, according to the suit, which claims the company used unlicensed workers and failed to properly design and construct the renovations.”
Readers, especially those with engineering background, are encouraged to submit feedback (olga@ilikaiowners.com).
6-28-09 IMPORTANT: Upcoming vacancy on the Board of Directors
As you know, the foreclosure of Anekona’s property at the Ilikai is moving along. The judge signed off on the confirmation of sale on June 5, 2009, which means that the closing will take place sometime between now and July 10, 2009. Once the closing takes place, the court appointed commissioner/receiver, Mr. Van Buren, will no longer serve on the Ilikai AOAO Board of Directors. Thus, there will be a vacancy to fill.
The Ilikai governing documents provide for two ways to fill in a Board Director vacancy. If any permanent vacancy shall occur in the Board through resignation or other cause, the vacancy may be filled by a special meeting of the owners called for such purpose or by majority vote of the remaining directors. Of course, a special meeting does not need to a full-blown one at the Prince Hotel, but could be arranged at Canoe’s, as has been done before.
While the upcoming vacancy was mentioned at the June 25 Board meeting (actually mentioned by Mr. Emery in a totally different context while discussing delinquencies), the Board made no announcement re soliciting nominations. I don't know why.
In any event, we may as well plan ahead with nominations. Readers wishing to nominate themselves or somebody else are most welcome to e-mail that to me for posting on this website (olga@ilikaiowners.com).
6-26-09 I'll post unofficial notes from yesterday's Board meeting later today
A Board meeting took place yesterday. I’ll post unofficial notes today. With participation of several owners from the audience, the meeting got quite heated at times. And quite disgusting and shocking, too, in my opinion. E.g., when I asked permission, “May I ask a follow-up question?” following Mr. Richard Emery’s response re collection of Anekona's delinquencies (you know how he talks), the Board’s President, Mr. Charles Carroll, cut me off with, “No, you may not!!” At least two other owners had their hands raised at that time to ask re the same subject, and Director Carroll would not let them either. So we never got any clear answers, other than statements re "the Association's position" and the usual assurances from Mr. Emery that we should just rely on him and Mr. Hosoda as "experts." Another example: at some point in the meeting, Board members stated that they “will discuss the security office at the Executive Session.” This was not listed for the Executive Session on the agenda. When at the end of the meeting I asked to confirm that it would indeed be discussed, Director Carroll replied, “It may be discussed.” I asked, “May or will?” He tried to make a joke about it. When I pressed, “May or will be discussed?” he replied, “It may be discussed.” What is that about? What ever happened to Robert’s Rules etc? If this were Anekona directors behaving this way, everyone would be screaming. When I asked re the Board’s plans re timeshare, Director Carroll replied, “It is not on the agenda for this meeting.” When I asked to clarify if and what they are planning to do re timeshare, he kept repeating, “No Board Directors put it on the agenda today.” What kind of an answer is this?
6-25-09 A letter to the Board re important issues
I sent the following letter to the Board re important issues. Click here.
DISCLOSURE: Readers are fully, 100% responsible to obtain their own facts, their own information and to form their own opinions. I take no responsibility whatsoever; this is my personal opinion blogging and should be treated as such.
6-25-09 Next Board Meeting - today, June 25, 2009, at 2 PM, Maui Room on the 2nd floor
Board meetings (except for their Executive Sessions, usually at the end of the meetings) are open for Ilikai owners to attend. As always, owners are invited and encouraged to attend.