No land deal, Kamehameha says

Explaining that "it is time for us to move on," Kamehameha Schools announced last week that it was no longer working with land developer Jeff Stone on an embattled project that was to have brought 400 affordable homes and a learning center to Makaha Valley.

In a statement posted on the Kamehameha Schools website late Friday, Corbett Kalama, chairman of the school’s board of trustees, said Kamehameha Schools still intends to build a learning center on the Waianae Coast.

However, Kalama said, "We have informed Mr. Stone that we have concluded our involvement with him over (the Makaha) property."

The school dismissed the notion that it was pulling out of the deal, arguing that it was Stone who failed to act by the agreed-upon deadline of June 30.

The announcement is the latest in a series of conflicting narratives proffered by Kamehameha Schools and Stone, who were to have collaborated with the state Department of Hawaiian Home Lands on the ambitious project.

The three parties had initially agreed to a plan in March 2010 that called for 400 to 600 affordable houses to be build by DHHL for Hawaiians. These homes were to be connected with educational enrichment facilities built by Kamehameha Schools for Hawaiian and non-Hawaiian children on the Leeward Coast.

Stone committed to donating the 300 acres, including the Makaha Valley Country Club, with 66 acres going to Kamehameha Schools and the balance to DHHL.

The original plan called for the land to be transferred by Feb. 11. However, DHHL requested that the deadline be extended to Aug. 30 because soil studies, consultations with beneficiaries and other due diligence work took longer than expected. Stone denied the extension.

Stone announced June 13 that he was withdrawing his offer of the 300 acres. He cited a "Plan B" proposal by Kamehameha School to buy all 300 acres from him for $8 million with the understanding that DHHL would build the homes and give the affordable-housing credits it earned to Kamehameha Schools.

Stone said he rejected the offer because he wanted to give the land to the project, not sell it. He said that his denial of DHHL’s request for an extension was based on his belief that Kamehameha Schools was committed to the Plan B proposal.

Kamehameha Schools, which said it was prepared to accept the original terms of the deal had DHHL been prepared to accept the land in February, acknowledged that the proposal was made to keep the project moving forward but denied it led directly to the failure of the project. It also strongly denied that obtaining the potentially valuable affordable-housing credits was a motivating factor in the proposal.

Shortly after news broke about Stone’s withdrawal, the three parties revived the project, with Kamehameha Schools saying it would accept the original terms of the deal and Stone agreeing to move ahead the original deal if it could be finalized by June 30.

(DHHL’s role in the project would not have changed regardless of which plan was adopted.)

However, Stone informed Kamehameha Schools on June 28 that he would approve the plan only if Kamehameha Schools committed to finishing the $100 million learning complex within five years.

He said he would extend the deadline to complete the deal to Aug. 30, provided Kamehameha Schools agreed to the new terms.

Kamehameha School rejected the offer, reiterating that it was still willing to proceed under the original terms of the deal, which contained only nonbinding spending projections for the complex and not a hard deadline for completion.

Kalama said the time lost pursuing the aborted project was "frustrating" but emphasized that the school was still going ahead with its larger and ongoing Ka Pua initiative to expand educational and social service resources on the Waianae Coast.

"Long before a site in Makaha was mentioned, we had investigated potential sites for our learning community on the Waianae Coast, and over the last week we have received suggestions about additional parcels of land that may be available between Kapolei and Kaena Point," board Chairman Kalama said.