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Molokai Ranch Shutdown Sure to Effect Both Local and Visitor Economy

By John Fischer, About.com

Molokai Lodge

Photo by John Fischer, licensed to About.com
Mar 31 2008

It was not a good week for Hawaii's economy either from a local or visitor perspective. In addition to the decision by Aloha Airlines to cease operations as of April 1, 2008, Molokai Properties Limited announced that all normal operations would terminate as of April 5, 2008.

Ranch Businesses Effected by Shutdown

These operations include: The Lodge and Beach Village, the recently restored Kaluakoi Golf Course, and several businesses located on ranch property: the theater, gas station, and grocery store.

In addition, access to ranch lands will be cut off as, according to the Ranch letter to employees, "the task will switch to preparing the majority of the assets for mothballing and preparing the entire property for closure."

The people of Molokai have always marched to a different drummer and been more protective of their land rights and privacy than the other main Hawaiian Islands. The shutdown is directly related to the Ranch's difficulty in developing and implementing a Master Plan for MPL’s property and the future of Molokai.

Master Plan

The proposed Master Plan would have involved the real estate development of 1113 acres at Laau Point on the southwestern end of the island for a luxury 200-lot subdivision.

As part of the Master Plan Molokai Properties offered to finance a $35 million renovation of the Kaluakoi resort, including its 144-room hotel that closed in 2000 and place 26,200 acres of land in trust for future island generations.

History of Friction

The ongoing friction between the ranch owners and a large portion of the population of Molokai was been ongoing for many years. As the island's largest landowner and single employer, Molokai Properties has long played a key role in the island's economy. The island community has been sharply divided between their support and opposition to the ranch's proposals.

Future Plans May Break Up All Ranch Land

In what may ultimately prove to be a prime example of the adage "be careful what you wish for," the Honolulu Star Bulletin is reporting that Molokai Properties may now consider "breaking up the 60,000-acre ranch into 101 parcels and subdividing some of its land to create up to 1,500 2- to 40-acre lots."

Instead of an ongoing battle with one large landowner, those opposing development may now be faced with having to deal with over 100 separate entities and over 100 separate proposals for future use of the Ranch's land.

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