Galbraith Update
June 26th, 2008 by RickIt’s back to the drawing board for the sale of the Galbraith Trust lands.
On Tuesday, the Bank of Hawaii Corp. called off a deal by Canadian developers Dennis Blain and Phil Archer to buy the 2,100 acre Central Oahu parcel for $40 million. (See)
The bank now has to relist the property and may have to hire a new broker, which could take months and could add hundreds of thousands of dollars in costs.
The bank may end up having to settle for less than $40 million due to the softening economy.
But the delay also provides more time for state and city lawmakers and local community leaders to buy and preserve the agricultural lands.
The new sales effort could get a boost from a measure passed by the Legislature this year that allows owners of ag lands to convert 15 percent of their acreage into new housing development.
The bill, which is awaiting Gov. Linda Lingle’s signature or veto, could result more than 300 acres for new housing, which vastly increases the value of the Galbraith Estate lands.
People familiar the Galbraith Estate said the previous deal collapsed on Tuesday after Blain and Archer asked for a 60-day extension to see if the ag bill gets signed and to review its potential impact.
They also say that Canadian group is trying to find a way to revive their bid.
Either way, it looks like any sale won’t be completed until the end of the year. This means further delay in the termination of the trust and further delay in the distribution of its assets to the 600-plus beneficiaries of the estate.
June 27th, 2008 at 1:47 am
I hope the State gets its act together ASAP. Otherwise Kukaniloko birthing stones could wind up being surrounded by condos and strip malls. DPP and Historic Pres. would rubber stamp it if given the chance.
We cant let that happen.
July 4th, 2008 at 9:01 am
It is true the buyer asked for a 60 day extension for due diligence, the Trustee declined saying that “if we give you one extension, you’ll ask for more.” As a Realtor who has worked numerous deals of size in the last five years, I can assure you a request for an extension of due diligence is a sign of an educated buyer when obvious and value changing challenges present themselves during your investigation Several landmark bills were offered in the Senate and House which proposed everything from condemnation of the property to dramatic land use changes, prompted the buyers to ask for more time and see what Lingle was going to sign or veto. It is also true that the Trustee Bankoh dragged the contract negotiations out for nearly five months from the initial offer of a Letter of Intent. After five months of minutia point squabling, Bankoh gave the buyers just over 60 days to examine the value of 2,000 acres (without the fear new laws may create) and did nothing to inform the House and Senate that the bills offered were interfering with the contractual sale of the land the OWNERS (Galbraith Beneficiaries) directed their Trustee to sell at the best price possible YEARS AGO! How would you feel if you were so close to a check for tens of thousands of dollars (estimates were over $50K per share) left to you by a relative and you have no say in how the property is disposed of? I talked to several beneficiaries who were absolutely STUNNED Bankoh canceled the deal over such a valid and prudent request, and that there was a chance the State might pay a third what the Buyer was in contract for to begin with. Bankoh had verified the Buyer’s cash assets to purchase the property, so why start from scratch when you have a qualified buyer in contract with more than a legitimate concern? Stupidity, pure and simple. Everybody in the State wants to dictate what others can do with their property, like Frustrated above or Oshiro or whoever that doesn’t face the taxes, insurance or maintenance owning a significant property like the Galbraith, or having to pay the fees Bankoh continues to charge for “managing” their property portfolio. PS, strip malls need to built in business zoned areas and desecrating the King’s Birthing Stone was never in the buyer’s plan, they were planning a park around it with ample parking at no cost to visitors or cost to state for the preservation of the area. Speculation like Frustrated was unwarranted and patently false, rumor and inuendo are signs of immuturity and reckless disregard.
July 4th, 2008 at 10:12 am
[…] a comment posted July 4 on the blog of Honolulu Advertiser reporter Rick Daysog, someone with inside knowledge of the recent deal writes about problems in the Bank of […]