WEST MAUI HOSPITAL
Presentation
Community
October 17, 2022
VISION
West Maui has no acute care hospital or skilled nursing care facilities. Maui’s primary acute care hospital facility is in Wailuku, on the north side of the island of Maui which is only accessible from West Maui via a heavily travelled, mountainous road that typically requires a 45-minute drive. Long delays and even closures are not uncommon due to rockslides, brushfires or traffic accidents. Seeing a need and an opportunity, Newport Hospital Corporation (NHC), a California-based healthcare facility developer began the process in 2009 of acquiring the land, appropriate zoning and permits, and the Certificate of Need to build local healthcare facilities that the residents and visitors of West Maui lacked. The project site is 14.99 acres located in the Master Planned Community of Kaanapalii 2020 in Kaanapali, West Maui. Development of the project will proceed in two phases. Phase I will consist of all the required off-site Infrastructure and the West Maui Hospital, a 5-6 bed Critical Access Hospital (CAH) that will be situated on 5.085 acres. Phase II of the Project Development will consist of a potential Medical Office/Clinic Building + up to 150 Assisted Living Facility (ALF) units all on the remaining 9.908 acres of the West Maui Hospital and Medical Center (WMHMC) site. The current plan is for the CAH land site to be long term NNN (Net of Property Taxes, Maintenance and Insurance Costs) Ground Leased to the non-profit West Maui Hospital Foundation (WMHF) 501(c)3 starting at approximately $800,000/year. The CAH building will be developed by NHC Government Agency financed (USDA/HUD), owned, licensed, and operated by the WMHF. The proposed Medical Office/Clinic Building will be leased to local healthcare providers, physicians, and other healthcare related businesses while the ALF be licensed for Assisted Living and operated by NHC. In home skilled nursing and acute care services will provided by the West Maui Hospital and or other local providers in the ALF
WEST MAUI HOSPITAL AND MEDICAL CENTER TIMELINE
2007 - 2009 Newport Hospital Corporation (NHC) pursues community engagement, site selection, CON Application and hearings.
2009 NHC obtains CON Approval for 25 bed Critical Access Hospital (CAH), plus 40 bed Skilled Nursing Facility (SNF).
2009 – 2014 NHC continues site planning, preliminary building designs, entitlement processing.
2014 NHC purchases West Maui Hospital and Medical Center (WMHMC), Hawaii State Legislature approves a $50 Million Special Purpose Revenue Bond for the development of the CAH (Bond never funded due to lack of any State or County financial support.) West Maui Hospital Foundation, Inc. (WMHF) 501c3 is formed and approved by the IRS.
2014 – 2015 NHC obtains Entitlements approvals, building and site plans developed for the 25 bed CAH, 40 bed SNF, and 40 unit Assisted Living Facility (ALF) buildings.
2016 Groundbreaking for start of site mass grading and in ground infrastructure. Ziegler and Company sponsored WMHF $81 Million Municipal Bond offering to finance the CAH (failed due to lack of any State or County financial support).
2016 - 2018 NHC starts construction and completion of site mass grading and in-ground infrastructure.
2018 WMHF $81.345 Million and $69.9 Million Bank of America sponsored Municipal Bond Offerings (both failed due to lack of any State or County financial support).
2019 CAH, SNF, ALF plans completed and approved for building permits.
2020 Off-site infrastructure construction commenced.
2021 - 2022 Off-site infrastructure continues, all attempts at obtaining private financing have failed due to lack of any State or County financial support. WMHF is now proceeding with an application for USDA financing of the construction of the West Maui Hospital that will be greatly enhanced by State or County financial support.
•West
WEST MAUI HOSPITAL AND MEDICAL CENTER FACILITIES AND SERVICES
Maui Hospital
•A single story, approximately 30,000 square foot licensed Critical Access Hospital that is expected to include:
- 5 licensed acute care beds
- 24-hour emergency department, - 2-3 operating rooms, - Radiology (e.g., CT, MRI, X-ray) facilities, - 24 hour pharmacy
- Laboratory - Outpatient services
•The services and specialties that the Hospital will offer:
- Cardiology
- General Surgery
- Internal Medicine
- Orthopedics
- Urology -
•Medical
Offices
•One or two Medical Office Clinics to provide physician offices and additional outpatient services for the West Maui Hospital and West Maui Community at large.
•Assisted Living Facilities
•Up to 150 Assisted Living Units (including up to 30 designated Affordable Seniors Units) that will provide daily meals and other resident services including memory care, recreational/social activities, transportation, and skilled nursing/home services provided by the West Maui Hospital and
- Family Practice - Gastroenterology
- Gynecology
LOCATION
The Hospital Facilities will be located on Kaka’alaneo Drive in the 6,000-acre Kaanapali 2020 Master Planned Community in the resort community of Kaanapali, Lahaina, which is centrally located in West Maui.
The site is less than 1,000 feet off of Maui Highway 30 (“Honoapi’ilani Highway”), the major north-to-south road through West Maui. This photograph depicts the location of the Hospital Facilities relative to the highway andneighboringdevelopment.
SERVICE AREA
The Foundation’s service area is zip code 96761, which includes all of West Maui, and 96767, which is a Post Office box in Lahaina that serves additional local residents and certain residents of the islands of Lanai and Molokai.
PHOTOS
VIEW OF SITE FROM GROUND DURING GRADING 2017
From the middle of the site looking toward the Ocean.
SITE DURING GRADING 2017
Ariel view of the entire site as grading and installation of all on-site infrastructure (site water, sewer and draining systems) were being installed.
ARIEL VIEW OF SITE AT COMPLETION OF GRADING 2018
Site grading and infrastructure are complete and you can see piles of crushed rock are left in areas to allow for finish grading needed for constructionof the site roads.
ARIEL VIEW OF KAANAPALI 2020 DEVELOPMENT
Looking toward the ocean from the custom home lots of the Coffee Farms gated community that are part of the 4,000+ acre Master Planned Community of Kaanapali 2020.
SITE PLANS
KAANAPALI 2020 PROPOSED COMMUNITY PLAN DESIGNATIONS
WEST MAUI HOSPITAL AND MEDICAL CENTER CONDOMINIUM
WEST MAUI HOSPITAL DEVELOPMENT COSTS Development Item Cost Design & Engineering $1,500,000 Building Construction $20,000,000 Onsite Infrastructure Construction $1,000,000 Offsite Infrastructure Construction $4,000,000 Utilities Construction / Connection Fees $500,000 Developer / Construction Management Fees $500,000 Fixed Equipment $7,000,000 Moveable Equipment $2,000,000 Financing Costs + Interest $1,500,000 Contingency $500,000 TOTAL $38,500,000 Development Item Cost Design & Engineering $1,500,000 Onsite Infrastructure Construction $1,000,000 Offsite Infrastructure Construction $4,000,000 Utilities Construction / Connection Fees $500,000 TOTAL $7,000,000 Hawaii State Grant in Aid Request: Newport Hospital Corporationhas spent over$20 Million, to date, ontheproperty acquisition, development, all governmental entitlements/CON, building/site planning, engineering, consulting, on/off-site constructionand otherrelated legal and financingfees.
ABOUT WEST MAUI HOSPITAL
The Foundation, the Project Developer and the West Maui Hospital ManagerWEST MAUI HOSPITAL FOUNDATION BOARD OF DIRECTORS
Member Position Occupation
BrianH. Hoyle
President Brian H. Hoyle is the sole owner of Newport Hospital Corporation, which is the current owner of the Site and the rest of the Campus.
Jo Anne JohnsonWiner Vice President/SecretaryStephenLovelette
Former Maui Councilmember for West Maui and Director of Transportation, County of Maui. Appointed to the Board in 2013.
Executive Vice President, Kaanapali Land Management Corp.; President, JMB Financial Advisors; and Managing Director & Treasurer, JMB Realty Corporation. Appointed to the Board in 2017.
NEWPORT HOSPITAL CORPORATION / BRIAN H. HOYLE
Newport Hospital Corporation is the owner and developer of the West Maui Hospital and Medical Center Campus. In 1993, Newport Hospital Corporation was founded and owned by Brian H Hoyle, to develop and own a 34 bed Psychiatric Hospital in Newport Beach, CA; one of the first free standing Geriatric Psychiatric Hospitals in the US and has since co-developed and owned other specialty hospitals in Texas and Louisiana.
Since 1976, Mr. Hoyle has been an agent, owner and senior corporate officer in healthcare organizations where he has developed over 50 hospital and other healthcare facilities in 16 states.
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In 1997, Mr. Hoyle founded and owns American Healthcare Investment LLC that with its partner Cascade Capital Group combined, have ownership of over 300 skilled nursing and assisted living facilities throughout the US.
• Mr. Hoyle is also the Co-Trustee of the Ralph L. Hoyle Trust, which is the 90% owner of the land and was the original developer of the Maui El Dorado Condominiums, a 10.2acre site within the Kaanapali Resort in West Maui that has 204 leasehold condominium units in 12 two-story buildings.
CRITICAL ACCESS HEALTHCARE, LLC / CHARLES SLATON
The Foundation has engaged Critical Access Healthcare, LLC (“CAH LLC”) to provide greenfield/pre-opening consulting services to the Foundation in the planning, development and execution of the Construction Project. When the Hospital Facilities open, CAH LLC will then serve as the manager of West Maui Hospital. CAH LLC is not a Member of the Obligated Group and has no liability in respect to the debt service on the Bonds.
Mr. Charles Slaton and his family are full time residents of Maui. Mr. Slaton is the Chief Executive Officer and founder of CAH LLC. Mr. Slaton has over 25 years of experience in hospital construction and operations. Before founding CAH LLC, Mr. Slaton was the President and Chief Executive Officer of MedCath, Inc. (NASDQ), where he managed and oversaw construction of 15 specialty hospitals. Prior to that, he served as SVP/Group President at Tenet HealthCare’s Texas Division and managed 23 hospitals and also oversaw construction of new facilities in Frisco, Texas and Worchester, Massachusetts. Mr. Slaton has served on the Texas Hospital Association Board of Directors and as a Governor of the Federation of American Hospitals.
Services that CAH LLC and a team led by Mr. Slaton will provide prior to or shortly after the completion of the Construction Project include, but are not limited to, advising in the construction of the Hospital Facilities, assisting in assembling the Medical Staff, advising the Board on contracting with appropriate outside services, developing budgets and initial management action plans, creating hospital policies and operating procedures (including patient financial services, patient access, coding, information technology, nursing, surgical, ancillaries, reimbursement, human resources, materials management, administration, accounting/financial reporting, pharmacy, and physical plant), directing the process of securing licenses and completing the survey processes for state licensing, assisting in the implementation of information and financial accounting systems, establishing purchasing relationships and contracts, creating inventory control procedures, establishing departmental systems, creating staffing plans and training procedures, and obtaining managed care contracts.
Upon occupancy and opening of the Hospital Facilities, CAH LLC will manage and operate the Hospital Facilities pursuant to the Management Agreement, including revenue cycle management services, identifying and employing a chief executive officer and chief financial officer to provide routine, day-to-day administrative services, and continuing and/or completing the pre-opening services.