Maui Land & Pineapple Company Profile
Maui Land & Pineapple Company, Inc. develops, sells, and manages residential, resort, commercial, agricultural, and industrial real estate.
The company consists of a landholding and operating parent company, its principal subsidiary, Kapalua Land Company, Ltd., and certain other subsidiaries. The company owns approximately 22,000 acres of land on the island of Maui, Hawaii.
Segments
The company operates through Real Estate, Leasing, and Resort Amenities business segments.
Real Estate — The company’s Real Estate operations consist of land planning and entitlement, development, and sales activities.
Leasing — The company’s Leasing operations include commercial, agricultural, and industrial land and property leases, licensing of the company’s registered trademarks and trade names, management of potable and non-potable water systems in West and Upcountry Maui, and stewardship of conservation areas.
Resort Amenities — The company manages the operations of the Kapalua Club, a private, non-equity club program providing the company’s members special programs, access, and other privileges at certain amenities at the Kapalua Resort.
Real Estate
The company’s Real Estate segment includes all land planning, entitlement, development, and sales activities of the company’s landholdings on Maui. The company’s principal real estate development is the Kapalua Resort, a master-planned, destination resort and residential community located in West Maui encompassing approximately 3,000 acres.
Real Estate Planning and Entitlements – Appropriate entitlements must be obtained for land that is intended for development. Securing proper land entitlements is a process that requires obtaining county, state and federal approvals, which can take many years to complete and entails a variety of risks. The entitlement process requires that the company satisfies all conditions and restrictions imposed in connection with such governmental approvals, including among other things, construction of infrastructure improvements, payment of impact fees – for conditions, such as schools, public parks and traffic mitigation – restrictions on permitted uses of the land, and provision of affordable housing. The company actively worka with the community, regulatory agencies, and legislative bodies at all levels of government to obtain necessary entitlements consistent with the needs of the community.
The company has approximately 1,200 acres of land on Maui that are in various stages of the development process. The following is a summary of the company’s development projects as of December 31, 2022:
The company is engaged in planning, permitting and entitlement activities for the company’s development projects, and the company intends to proceed with construction and sales of the following projects, among others, when internal and external factors permit:
Kapalua Resort: The company began development of the Kapalua Resort in the early 1970’s. Today, the Kapalua Resort is an internationally recognized world-class destination resort and residential community. The company presently has entitlements to develop a variety of projects in the Kapalua Resort. Two that are planned include Kapalua Mauka and Kapalua Central Resort.
Kapalua Mauka is a long-term expansion project of the Kapalua Resort which is located directly upslope of the existing resort development. As presently planned, it encompasses 800 acres and includes up to 639 residential units with extensive amenities, including up to 27 additional holes of golf. State and County land use entitlements have been secured for this project.
Kapalua Central Resort is a commercial town center and residential community located in the core of the Kapalua Resort. It is consisted of 46 acres and is planned to include up to 61,000 square feet of commercial space and 196 condominium and multi-family residential units. State and County land use entitlements have been secured for this project.
In December 2021, the company entered into an agreement to sell the Kapalua Central Resort property for $40.0 million. On May 13, 2022, terms of the agreement were amended to include a closing condition requiring the Maui Planning Commission to approve a (5) five-year extension of a Special Management Area (‘SMA’) permit issued by the County of Maui by April 10, 2023. If the extension is not approved by April 10, 2023, the purchase agreement will terminate. If the extension is approved, the closing date is expected to be no later than (30) thirty days after the date of the extension approval.
Hali`imaile Town: An expansion of an existing plantation town in Upcountry Maui, this project is contemplated to be a holistic traditional community with agriculture and sustainability as core design elements. The project includes 290 acres classified as ‘Small Town’ in the long-range County of Maui Island Plan. This designation allows the potential for residential, industrial and commercial development at a moderate density. The company is in the early stages of this project’s development and securing State and County land use entitlements are expected to take several years.
Leasing
The company’s Leasing segment operations include commercial, industrial, and agricultural leases of land and property, licensing of the company’s registered trademarks and trade names, sales of potable and non-potable water in West and Upcountry Maui, and grants related to stewardship and conservation efforts.
Commercial and Industrial Leases – The company is the owner and lessor of approximately 194,000 square feet of commercial, retail and light industrial properties, including restaurants, retail outlets, office buildings, warehouses and Kapalua Resort activities.
Agricultural Leases – The company is the lessor of approximately 4,000 acres of diversified agriculture, renewable energy, eco tours, and activities land leases in West and Upcountry Maui.
Trademark and Trade Name Licensing – The company has licensing agreements for the use of its registered Kapalua trademarks and trade names with several different companies, mainly in conjunction with the company’s agricultural, commercial and industrial leases.
Potable and Non-Potable Water Systems – The company owns and operates several potable water wells, non-potable irrigation water ditches, reservoirs and transmission systems serving the Kapalua Resort, the County of Maui, and agricultural users in West and Upcountry Maui.
Stewardship and Conservation – The company manages the conservation of a 9,000-acre nature and watershed preserve in West Maui. A portion of the company’s stewardship and conservation efforts is subsidized by the state of Hawaii.
The company’s Leasing segment operations are highly sensitive to economic conditions, including tourism and consumer spending levels and faces substantial competition from other property owners in Maui and Hawaii. The amount of rainfall and the level of development in the Kapalua Resort area also affect the demand for the company’s potable and non-potable water.
Resort Amenities
The company’s Resort Amenities segment includes the operations of the Kapalua Club, a private, non-equity club providing its members special programs, access and other privileges at certain of the amenities at the Kapalua Resort, including a 30,000 square foot full-service spa and a private pool-side dining beach club.
The Kapalua Club is principally dependent on the overall appeal and success of the Kapalua Resort.
History
Maui Land & Pineapple Company, Inc., a Delaware corporation, was founded in 1909. The company was incorporated in 1909.
