Big plans for Lanai

Larry Ellison’s vision for Lanai has come into better focus — and it is big.

Ellison’s company Lanai Resorts LLC, which bought the island in June, outlined its vision for residents at meetings this week, and attendees say the plans by the billionaire include:

» A new oceanfront hotel.

» Expanding the Four Seasons Resort at Manele Bay.

» A second airport runway.

» A desalinization plant that might supply the whole island with fresh water.

» More photovoltaic energy.

» Free electric-car charging stations.

» Re-establishing commercial farming.

» Attracting a university research center.

» New health care/hospice care facilities.

Ellison is also buying interisland airline Island Air, according to sources, but Ellison and the airline have declined to confirm it or comment.

The plan for Hawaii’s sixth-largest island has been shared in bits with local residents and groups in recent weeks, but meetings on Thursday and Friday with a planning committee and the local Chamber of Commerce provided the new sweeping view of potential future changes.

People who attended the meetings described the plans as general intentions without details or timelines and subject to feasibility studies.

Some residents who are particularly sensitive to growth on the island responded positively to the rough plans.

"Overall the community is I think excited and optimistic about the potential," said Butch Gima, a social worker and president of Lanai­ans for Sensible Growth. "There are really no red flags at this point."

Gima said the welcome view is in part due to how Lanai Resorts, led by Lanai native Kurt Matsu­moto, has engaged the community. He said Matsu­moto has established more relationships with individuals and groups in his first month than former Lanai owner Castle & Cooke Inc. did in 20 years.

"The management style and philosophy is very different than under Castle & Cooke," Gima said.

Ron McOmber, a longtime Lanai resident who clashed with Castle & Cooke’s billionaire owner, David Murdock, said it is a bit scary knowing how much money Ellison has at his discretion to execute his plans. But the plan itself is enlightening in a good way to McOmber.

"I think it was very positive," he said.

Ellison, co-founder and CEO of business-software giant Oracle Corp., is the third-richest man in America with a net worth Forbes pegs at $41 billion.

With so much wealth, McOmber and others figure money will be no object for Ellison.

But doing what’s right for the community also is an aim for Ellison, who has created about 100 new jobs largely through hotel improvements, and reopened a community pool that Castle & Cooke shuttered.

Matsumoto, who has been on the job since Dec. 1, did not respond to requests for comment Friday.

Maui Mayor Alan Ara­kawa is encouraged by Ellison’s plans. "This is probably the best thing that could have happened to the island," he said. "The former owner was allowing it to deteriorate. My hat’s off to Larry. (His) intent seems the very best."

One of the more unique pieces of Ellison’s vision is developing a new beachfront hotel on the site of a former day-trip activity operation called Club Lanai.

On the island’s eastern shore, Club Lanai has been closed for more than a decade, and its facilities — including a lagoon, a bar and buildings — have fallen into disrepair.

Club Lanai offered water sports, dining, entertainment and other activities to guests brought to the club via boat from Maui.

Under Ellison’s plan the property would be transformed into a small hotel resort called Kahea Village.

Lauren Hall-Stigerts, a Washington state resident who visited the dilapidated site in January, said she could see it being transformed into a beautiful escape. But her husband would prefer a more natural state. "He already feels like two resorts on the island are enough," she said.

At the Manele Bay hotel, Ellison’s vision calls for expanding the resort.

Adding a second runway to the island’s airport would allow for service by bigger planes.

A desalination plant would ease or erase limitations to the island’s groundwater supply that have been a source of contention between residents and resort operations.

Arakawa said he is excited by the level of investment Ellison wants to make in the island with roughly 3,200 residents, and anticipates there will be more constructive discussions between Lanai Resorts, residents and government officials to do what’s best for Lanai.

"I see Ellison as trying to find all the things that can enhance Lanai," he said. "I don’t think it has to be his way or the highway."