Larry Ellison, the CEO of the Oracle Corporation, is set to buy 98% of the Hawaiian island of Lanai, which is a landmass of 141 square miles. The 2% of the island that's not included in the deal belongs to private residents on the island, plus the state and county. The land is currently owned by Castle and Cooke, Incorporated, and a transfer application was filed after a deal was reached.
According to the Huffington Post, the sale price for the property hasn't officially been made public, but The Maui News previously reported that David Murdock -- owner of Castle & Cooke -- had an asking price between $500 million and $600 million. For that money, which the Oricle CEO plans to pay in cash, Ellison became the owner of 88,000 acres of land, plus two resorts, two golf courses, a stable and various residential and commercial buildings. As of March of this year, Ellison's net worth was valued at $36 billion, which makes him the sixth-richest person in the world according to Forbes.
Murdock isn't vacating the island entirely, however. He said he plans to keep his home on Lanai, and that he hopes to build a windfarm on the land, which might take up as much as 20 square miles. The windfarm would use a collection of windmills to create energy, and then that energy would be transfered to Oahu via a cable under the ocean. Not everyone is pleased with the windfield farm idea. Robin Kaye, president of Friends of Lanai, said, "Lanai is worth more than supplying power to Oahu."
In a statement, Murdock said that he has wanted to sell the land to someone who would have the right enthusiasm, commitment and respect for the island's residents. In Ellison, who has been known to vacation on the island in redent yearshe might have found that man. Hawaii Governor Neil Abercrombie said Ellison has had a longstanding interest in the island. "We look forward to welcoming Mr. Ellison in the near future," he said. "His passion for nature, particularly the ocean is well known specifically in the realm of America's Cup sailing." Alan Arakawa, the mayor of Maui County, wished Murdock well and said he looks forward to meeting Ellison
As stated on the transfer application, Murdock and Ellison believe the deal will result in new jobs, economic stimulus and a reinvigorated local tourism industry. Yet, Sol Kahoohalahala's family has lived on the ilsand for seven generations now, and he said he hopes to see an end to high unemployment and more opportunities for economic development beyond tourism. As for J. Kalani English, a state senator who represents Lanai in Hawaii's Legislature, said he's hopeful the sale to Ellison will mean a return of agriculture to the island. "I'm relieved because he's one of the richest people on the planet, which means he knows he'll lose a lot of money in the beginning and he can sustain that," English said.
Before Murdock bought the island, it was owned by James Dole of the Dole Food Company. He bought it in 1922. It is called the "pineapple island," and is the smallest publicly accessible inhabited island of Hawaii. There are no traffic lights on the land, even with 30 miles of paved roads and 400 miles of roads that are unpaved.
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