Last month I wrote about Donald Graham, who developed Ala Moana Center. Bob Hampton, who owned the Territorial Tavern downtown, wrote to say he once worked for Graham.
"His four-part development strategy is what made Don Graham Dillingham’s most important vice president," Hampton said. "Don ran the development arm of Dillingham Corp. with what he called the ‘Dilco Plan.’
"From 1964 to ’65, I was one of Dillingham’s only two Dilco reps. Bruce Stark (developer of Waterfront Plaza) was the other one."
Dillingham was, at one time, one of Hawaii’s largest companies. Walter Dillingham founded it as Hawaiian Dredging and Construction in 1902. It was involved in some of the most important building projects in Hawaii and the world, from dredging the shallow entrance to Pearl Harbor and building the first dry dock there to creating the Ala Wai Canal.
Hawaiian Dredging built the first Honolulu airport, Ala Moana Beach Park, the federal building, Ala Moana Center, the Honolulu Museum of Art, theaters, schools, homes, office buildings, banks and power plants.
"Don’s Dilco Plan tied four major development components into one basket and charged a fee for Dilco to manage it," Hampton said. "Dillingham provided the design, construction, project financing and development coordination all for a fee paid by the landowner. It was a brilliant and profitable marketing strategy."
Hawaii residents probably don’t know that Dillingham was a major developer in the Lake Tahoe area of California.
"In 1965 I was appointed co-manager of Tahoe Keys in South Lake Tahoe, a waterfront community very similar in size and in design to Hawaii Kai," Hampton said.
Oahu SPCA founder Stephanie Ryan had a vacation home in Tahoe Keys from 1999-2011. She describes it as "a pristine boating environment on South Lake Tahoe. Every home is on the water and has its own boat slip. It has great views of the lake and mountains. We saw brown bears, coyotes, eagles and osprey. I loved it. It was like heaven on earth."
Hampton said he was only 26 when he started developing Tahoe Keys. "I had little or no experience in snow country. I brought two surfboards and mainly summer clothes with me when I moved to Tahoe. My first winter saw 10 snowbound days."
In a nod toward home, Hampton named the main drive through Tahoe Keys Ala Wai Boulevard. Another street is named Aloha Drive.
In 1965 Hampton asked Graham for money to advertise in the Bay Area. Graham said no. Instead, he told Hampton to do things that generated free publicity. It got Hampton’s creative juices flowing.
"I began giving a daily lake water report (water temperature and conditions — think Guy Hagi), and my secretary became the ‘Lake Tahoe Mermaid’ who told folks which fish were biting," Hampton said. "This is what Don wanted us to do, and it worked. Folks started to talk about Tahoe Keys, and sales were moving."
Hampton invited then-California Gov. Ronald Reagan to stay at his house on the water in Tahoe Keys when he met with Nevada Gov. Paul Laxalt. "It got us a big story in the Bay Area papers," Hampton said.
Hampton even went on the national TV show "The Dating Game" to represent the Tahoe area. They called him the "Mile High Bachelor."
"Tahoe Keys was mentioned a zillion times on national TV, and when folks visited the Keys some would tell me they had seen me on TV. Don’s strategy was working really well. My bachelor life was doing pretty good, too.
"However, one of the early attempts at free promotions almost got me killed," Hampton said. "In 1966 the Tahoe Chamber of Commerce asked me to bring attention to their annual sailing regatta.
"We were using a 1956 Sea Bee float plane to show new buyers their properties, and I had been water-skiing in speed races on Lake Tahoe. So I put those two things together and said, ‘Why not be the first person to water-ski behind a plane that is in the air?’ I assumed this would surely get us a lot of press.
"I asked our Honolulu office if they had a problem with it, and they did not get back to me so I assumed Don said let it go.
"The fastest I had ever water-skied at that time was maybe 50 mph, and the pilot told me that when I saw light between his hull and the water, I would be doing 70 to 80 mph or more.
"On Aug. 12, 1966, race day, we hooked up a 250-foot-long ski line to his plane. and off we went.
"By the time we got to the viewing stands for the regatta, I was going so fast that water hitting me felt like rocks. My single water ski started coming apart from the vibration just after we passed the crowd.
"When the chase boat caught up and pulled me out of the water, I was dazed and damaged.
"This was not a great marketing ploy as we only got some short stories in the local newspapers and on radio. However, I learned a lesson. Although it was a huge idea in my mind, it was not as big as having the governor stay at your home.
"Don Graham was the ‘Music Man’ at Dillingham," Hampton concluded. "Everyone knew he could make things happen. I sure learned a lot from him."
Graham died in August 2010. Today, Hampton runs the Hilton Hawaiian Village Waikiki Beach Activities programs.
Bob Sigall, author of the “Companies We Keep” books, looks through his collection of old photos to tell stories each Friday of Hawaii people, places and companies. Email him at Sigall@yahoo.com.