An economic boost for Lanai

Billionaire Larry Ellison has called Lanai his "little laboratory" but it is looking more like a new era of sustainable growth for its residents and the island’s role in Hawaii’s tourism market. Skeptics have reason to accept Lanai’s new owner as committed to enthusiastic business changes and significant improvements of health care and other aspects of living there.

Ellison, the co-founder and chief executive of software giant Oracle Corp. with a net worth of $41 billion, can well afford the advancement. Maui Mayor Alan Arakawa calls the plans — outlined in resident meetings last week — "probably the best thing that could have happened to the island," while he said previous owner David Murdock "was allowing it to deteriorate."

Ironically, it was billionaire Murdock, who acquired the island from Castle & Cooke in 1985, who built the two luxury Four Seasons resorts, with top-rated golf courses, which will continue to be the tourism magnet. But it’s Ellison who is now investing the vision and money needed: He already has completed renovations that included new furniture and a new restaurant and lounge design at the two resorts, Manele Bay and The Lodge at Koele.

Ellison plans to expand the Manele Bay hotel and add what has been described as an oceanfront bungalow-style hotel, to be called Kahea Village, replacing a deteriorated shoreside facility. Included will be adding a second airport runway for larger plans and, according to sources, purchasing of the Island Air interisland airline. That, of course, would be a brilliant package.

According to recent meetings on the island arranged by Ellison’s company, Lanai Resorts LLC, the plans include more photovoltaic energy and a desalinization plant that could supply the entire island with fresh water, and free electric-car charging stations. The company plans to bring back commercial farming, which Ellison has described as an increase in fruit exports to Japan and other markets.

Other additions will be attracting a university research center and building new health care/hospice facilities, which would indeed be welcome though perhaps not a complete surprise. Gov. Neil Abercrombie noted upon Ellison’s purchase of the island in June that he is "a businessman whose record of community involvement in medical research and education causes is equally notable."

Ellison’s purchase from Murdock does not include the right to develop a wind farm proposed on the northwestern part of the island to funnel electricity to Oahu. Murdock retains that right, and community disagreement over that issue still needs to be played out over the long term. Meanwhile, Ellison can proceed apace with his community engagement and efforts to buoy Lanai’s economic bases, which so far seem to be gaining cautious approval from residents.

Ellison, the third wealthiest American who at one point was the world’s richest, is reputed to have paid as much as $600 million for the island — and his plans will bear watching, with some fascination, as they start to unfold.

"I see Ellison as trying to find all the things that can enhance Lanai," said Mayor Arakawa. "I don’t think it has to be his way or the highway." Actually, Ellison’s wealth may indeed make his way the highway, to the delight of tourists and Lanai residents.