ML&P reports doubts about its ability to continue

KAPALUA – Financial challenges facing Maui Land & Pineapple Co. are raising a “substantial doubt about the company’s ability to continue as a going concern,” the company reports in its latest filing with the U.S. Securities & Exchange Commission.

Among a number of disclosures in the filing, a group of lenders has declared that a $280.5 million loan for the Kapalua Bay Holdings’ construction of the The Ritz-Carlton Club and Residences, Kapalua Bay is in default. ML&P has invested more than $50 million in cash and $25 million in land for the development project and has 51 percent ownership in the Bay Holdings company.

“The company’s cash outlook for the next 12 months and its ability to continue to meet its financial covenants is highly dependent on selling certain real estate assets in a difficult market,” the filing says. “If the company is unable to meet its financial covenants resulting in the borrowings becoming immediately due, the company would not have sufficient liquidity to repay such outstanding borrowings.”

While the company’s future appears ominous in its SEC filing, Tim Esaki, the company’s financial officer, said Friday that company officials “remain optimistic.”

Making it easier for farms to lure tourists

HILO — The island’s two planning commissions are making it easier for farms to lure and accommodate tourists.

The Windward Planning Commission on Thursday unanimously endorsed a measure that creates a new category of “minor” agri-tourism business that can bypass many of the rules imposed on larger operations. The measure, which also must be approved by the Leeward Planning Commission before going to the County Council, also eliminates the need for a site inspection before agri-tourism businesses can receive plan approval.

“This is one step in the right direction,” said Comissioner Wallace Ishiboshi. “It’s going to help the farmers.”

Meanwhile, the Leeward Planning Commission on May 17 will tackle a related rule tightening requirements on bed and breakfasts by expanding requirements for use permits from the commission in certain zoning designations.

Minor agri-tourism operations are defined as operations that see 15,000 visitors or less a year, with a weekly maximum of 350 visitors. Operations in that size range will no longer need plan approval before commencing operations.

“This will allow farmers to help supplement their agricultural business, especially on a monthly basis so they don’t have to wait for the crop to come in,” said Planning Director Bobby Jean Leithead Todd.

Lawmakers approve changes to labeling locally grown coffee

HONOLULU – Kona coffee farmers are asking the governor to veto a bill that removes mandatory certification requirements for Hawaii-grown coffee.

The bill was one of dozens that cleared the full House and the Senate on Tuesday, two days before the end of the 2012 legislative session.

On Thursday, lawmakers will vote on the remaining measures, including the $11.2 billion state budget bill and related fiscal measures.

Kona coffee farmers have opposed House Bill 280 throughout the session. The measure addresses a staffing shortage at the state Department of Agriculture, which has had to eliminate all but one coffee inspector position in West Hawaii Island.

Currently, coffee labeled as Kona-grown must be inspected and certified by the state. The inspectors verify that blends labeled as Kona actually contain at least 10 percent Kona-grown coffee.

If the bill becomes a law, however, inspections will become voluntary and growers will provide their own documentation of the coffee’s origin.

Rep. Cynthia Thielen, R-Kaneohe-Kailua, tried unsuccessfully to get the bill amended on the floor. Her proposal would have inserted language from a food sustainability measure that failed to pass out of committee.