Big Isle project is pushed into court


POSTED: Wednesday, June 03, 2009

Another major development project is in foreclosure—this time, on the Big Island.

Attorneys for Building for America Fund III LLC of Delaware filed a foreclosure suit against Metric-Passco Waikoloa LLC in state Circuit Court on Friday over a loan of up to $18.1 million.

Metric-Passco Waikoloa, a joint venture between California investment firms Passco Waikoloa LLC and Metric Waikoloa LLC, defaulted on the loan on March 15 and now owes $14.7 million in principal plus $418,590 in interest through the end of May, in addition to late charges and legal fees. The total amount due is $15.3 million.

Metric-Passco Waikoloa had plans to build a 200-room business hotel, a retail-office complex, and work-force and senior housing on 45 acres in Waikoloa Village, inland of the coastline.

The project as proposed was to include 140,500 square feet of space, including a grocery store, drugstore, shops, restaurants and 44,000 square feet of office space.

The developers had posted information on the project in the state's environmental notice in January.

Jeff Nagashima, a Metric-Passco contact listed in state documents, did not return calls.

Metric-Passco had hoped to break ground by the end of last year, according to West Hawaii Today.

In May the developers had just received approval of their preliminary site plans, according to records from the Hawaii County planning department.

The loan was granted to Metric-Passco Waikoloa on March 21, 2007, and the note matured in mid-March of this year. Interest on the defaulted loan will continue to accrue at $5,848.20 per day.