Construction of a $310 million redevelopment of the former Kauai Lagoons Golf Club and surrounding resort will kick off in December, bringing to fruition the luxury destination first envisioned by hotel developer Chris Hemmeter in the 1980s.
Mike Cuthbertson, Timbers Resorts’ managing director of development for the Hawaiian Islands, said the company is expected to announce plans today to develop and manage the 450acre tract on behalf of majority owner Oaktree Capital Management and minority owners Tower Investments and Honolulu-based Ed Bushor, who purchased the property from Marriott Vacations International for $60 million in transactions that closed in December and April 2014.
The property, which was owned by Hemmeter from 1988 to 1991, has gone through many stops and starts. Hemmeter sold it to Japanese-based Shinwa Co., which sold the resort to Honolulu developer Kevin Showe. Marriott eventually purchased the property, intending to expand it under the Ritz-Carlton brand, until the Lehman Bros. crash stymied construction. Save for a Jack Nicklaus Signature Golf Course, the only developed part of the property is a 78-unit timeshare and full-ownership condominium company that Marriott developed as Kalanipu’u.
"Over the years, timing and cataclysmic events have stalled and forced recalibration," Cuthbertson said. "There’s been a lot of plans and talks about what to do with this property, but everyone who has come here has appreciated and understood that the potential is phenomenal. Now it’s all about action. (Today) will be our first unveiling of a new brand and our vision to bring Kauai its first master-planned luxury resort in some 30 years."
The former Kauai Lagoons property will be renamed Hokuala — A Timbers Resort, and its Jack Nicklaus Signature Course will be renamed The Ocean Course. The former three-building Ritz-Carlton site will be redeveloped into Timbers Kauai Ocean Club & Residences, including 47 fractional-and-full-ownership two-to-four-bedroom units. They will start at $2 million for full ownership and from the mid-$300,000s for one-twelfth fractional ownership.
"These buildings will start construction by the end of the year with an 18-month timetable," Cuthbertson said. "We expect to welcome our first owners and guests in July of 2017."
The dormant Fashion Landing retail center and the former restaurant site, which once was home to Sharkey’s and then Whaler’s Brew Pub, also will be redeveloped along with the resort’s pools and trails and tennis amenities. The Residences at Ninini Point is planned for construction in 2017 and includes 48 full-ownership, custom-built properties, which will start at $3 million.
After Phase I the ownership group also has plans to build a boutique hotel, which would start construction by the end of 2017 and open for business in 2018 or 2019. Beyond that there are plans for several golf course home subdivisions, including 44 full-ownership homes on half-acre lots, starting at $2 million.
