Ko Olina co-developer to revive Kauai Lagoons

The Kauai resort bosts a Marriott hotel and 38-acre, man-made lagoon

Developer Kevin Showe, who partnered with Jeff Stone to build Ko Olina Resort in West Oahu, announced plans yesterday to revive the long-dormant Kauai Lagoons resort.

Showe caught his first glimpse of Kauai Lagoons in 1998, several years after Hurricane Iniki devastated Kauai and put the resort's world-class expansion plans on hold.

Though few of late hotel developer Chris Hemmeter's original plans had been completed, the beauty of the resort's 520 acres captured Showe's imagination from his vantage point on the golf course.

"I was amazed at the incredible resort infrastructure and beautiful setting," Showe said.

Showe didn't do well on the golf course that day, but in 2004 he got the chance to make up for that when he and other members of the Kauai Development LLC acquired the property. Strong demand from the mainland baby-boomer market is expected to drive redevelopment of the property, which has stood dormant since a hotel, two golf courses and a man-made lagoon opened in 1987.

New plans will expand on the groundwork laid by Hemmeter in the 1980s by adding approximately 750 vacation homes to the already running Kauai Marriott Resort & Beach Club, which has 356 hotel rooms and 232 timeshare villas.

Two-thirds of the resort, including the golf course, will be maintained as green space. The project will include a restaurant with golf and ocean views, a marina, and a spa and fitness center totaling more than 12,000 square feet. All development will highlight the resort's 38-acre, man-made lagoon, which guests will be able to use to taxi between resort locations, Showe said.

"There is no other resort in Hawaii that has a navigable waterway -- and because of the prohibitive cost, it couldn't be created today," he said.

While there has been a nationwide slowdown in resort development, the unique natural assets at Kauai Lagoons are expected to keep the resort ahead of downturns in the real estate cycle, he said.

Buyers from California, Washington, Oregon and Arizona are expected to dominate sales because of their ease of access to Lihue; however, sales absorption from the Midwest and East Coast is also expected to be strong, said Robert Calhoun, regional vice president of sales and marketing for Marriott Vacation Club International.

"This is the first time that all of our brands have been launched at the same time in the same community," he said, adding that both Marriott and Ritz-Carlton have pegged Kauai Lagoons as Hawaii's next great resort destination.

Kauai Lagoons' residential properties are expected to break ground in the next few months. Sales of the planned Kalanipu'u condominiums will begin in November, with prices for the 78 two and three-bedroom condominiums in that development starting at $1.7 million.

Sales for the first phase of Ritz-Carlton Residences will begin in early 2007 with prices for two-, three- and four-bedroom private homes expected to start at $4.5 million. The company also has plans to add 46 three- and four-bedroom townhomes to its offerings.

The presence of the lagoon drew Ritz-Carlton to Kauai, said Richard Culkin, project director of marketing for the Ritz-Carlton Club at Kauai Lagoons.

"It's tremendously appealing that (owners) can step off their lanai, walk to a boat dock and navigate throughout the resort," Culkin said.

Grand Residences by Marriott also announced plans yesterday to develop 252 residences.

Both chains also have announced plans to open timeshares at the resort. The Ritz-Carlton Club, Kauai Lagoons, will have 72 residences to be sold in deeded one-twelfth fractional ownership interests. Marriott Vacation Club said it will develop 224 timeshare villas and 12 hotel rooms for community visitors.

By year end, the resort will begin developing 82 affordable rental apartments in Waipouli to provide housing for employees. The second project, scheduled for 2008, will offer qualifying families the chance to own one of 31 two-bedroom condominiums at the lagoons.

In addition, access to shoreline areas fronting the resort is to be improved for those who wish to fish and hike.