As media outlets trumpet the news that Disney is building a brand new “mixed use” family resort in Hawaii, few if any know what is really happening behind the scenes between Disney & Ko Olina’s developer Jeff Stone.
Disney’s press release was short on specifics, citing additional details scheduled for release sometime in early 2008. But why all the secrecy? Could there be something bigger in the works than just a hotel / timeshare?
Before we can truly assess the possibilities, we must first look back at the ill fated “Port Disney” concept developed over a decade ago.
In 1988 Disney purchased the Wrather Corporation primarily to gain control of the Disneyland Hotel, then a Wrather property. As part of the transaction, the Queen Mary complex in Long Beach, California (also a part of the Wrather family holdings) was also acquired. This motley mix of tourist attractions consisted of The HMS Queen Mary, a giant dome containing Howard Hughes’ famous “Spruce Goose”, and a small British-themed shopping complex.
This purchase occurred during heyday of Michael Eisner’s reign when the largest Disney shareholders, the Bass Brothers, openly encouraged Eisner to look for ways to exploit the real estate assets of the company. This philosophy would eventually lead to the dramatic expansion of both Walt Disney World and Disneyland, the creation the Disney Vacation Club and eventually the Disney Cruise Line.
However, it was during a company retreat in late 1989 that that the idea of Port Disney was born. This ambitious plan called for additional land to be reclaimed from the Long Beach harbor using dredge & fill techniques, giving Disney the land it needed to build a 220-acre theme park dedicated to the sea. One major component of this plan was an attached cruise ship terminal for the soon-to-be-launched Disney Cruise Line.
Copyright 1990 Disney Enterprises, Inc. All Rights Reserved
Plans continued to move forward, that is until the California Coastal Commission, the far reaching coastal regulatory arm of the state of California, objected to the plan. Faced with a plethora of red tape, Disney followed its real estate attorneys’ advice and abandoned the Long Beach plan, instead turning its interest toward Anaheim. This move lead to the eventual development of Disney’s California Adventure. Many concepts from Port Disney plan found their way into other Disney projects including DCA, Tokyo Disney Seas, and most notably Castaway Cay.
(Additional details regarding the Port Disney concept can be found in Jim Hill's article "Why For didn't the Walt Disney Company go forward with construction of the Port Disney project?"
Meanwhile in 2001 real estate developer Jeff Stone holds a series of meetings with Norwegian Cruise Lines and the State of Hawaii. The goal is to gain regulatory approval and state funding for the building of a cruise ship terminal at Kalaeloa Harbor adjacent to the Ko Olina Resort and Marina on Oahu’s Leeward shore. Norwegian officials are cautious, but interested. The Hawaiian Department of Transportation, while much more developer-friendly than the California Coastal Commission, authorizes only limited use of the existing pier for cruise ships at the request of Ko Olina developers. Officials say that they cannot justify construction of a pier or ferry terminal, issuing the following letter to Stone:
"At this time, the D.O.T. cannot commit to constructing a pier or ferry terminal [at Kalaeloa harbor] due to limited use, other statewide priority expenditures for the cruise industry and other much-needed cargo-related improvements" However, to assist you with your vision, we are agreeable to the interim use of pier P-7 for weekly discharge of passengers beginning in 2003 should you receive formal commitment from cruise line officials to service [Kalaeloa harbor]."
When asked about the proposed marina expansion, then-state Harbors Administrator Glenn Okimoto states:
"We would have to do it, but it's a low priority right now. We have other needs in Honolulu harbor and we don't think it will be a priority for cruise ships to use Kalaeloa, at least not at this time. And we can handle four cruise ships in Honolulu at one time. So far, we haven't had any cruise ship wanting to go there. They [Ko Olina] are still trying to get somebody."
Developer Stone suggests what the Cruise ship companies are seeking in order to proceed with an agreement. "Their interest is based on activity. For us to be a day port we must have something here — ideally, they want a Disney-island kind of activity center to anchor other resort activities. Until then, there is nothing for them to do."
Due to the lack of an activity center at Ko Olina, talks with Norwegian stall.
In the summer of 2005, Disney sends the Disney Wonder cruise ship to the California coast in honor of Disneyland’s 50th anniversary. Among the itineraries is a 7-day Mexican Rivera itinerary leaving from Los Angeles. Bookings exceed expectations and sell out in record time. Disney follows this with a 2006 Mediterranean Cruise, citing rising guest interest in alternative itineraries.
As 2007 arrives Jay Rasulo, President of Walt Disney Parks & Resorts, announces plans to build 2 new cruise ships to expand the itineraries offered by the Disney Cruise Line. He also described plans to create stand-alone hotels, water parks, dining and entertainment centers. The latter projects were left open to speculation until the October 3rd, 2007 announcement of a mixed-use family resort at Ko Olina with details still in the planning stages.Could this new arrangement between Disney and Ko Olina result finally give both parties what they have long sought-after? On the surface, the project combines many elements of Ko Olina’s desire for cruise ship traffic with Disney’s vision for an expanded cruise line and regional entertainment centers. The framework is already in place for a Castaway Cay-type, beachfront facility catering to hotel guests, Disney Vacation Club members and even Disney Cruise Line day guests.
Could this prove to be the 21st Century version of Port Disney?
