Apologies for the typo

Please forgive me for making a typing error:
Our two departing board members are Tom Becker, who chaired the Planning and Policy Committee (and got us on track with Google Docs) and Dean Berlon, who did a fabulous job on Buildings and Grounds.

I should also point out the Charlotte Talman resigned recently because of the sale of their unit.  We thank her very much for her service as well!

Owners' meetings

The owners' meetings have come to an end and we have 3 new members on the AOBO board.  A big welcome and congratulations to Kelly Lee, Dave DiMare and Rick McCormick!  A sad good bye to Dean Berlon and Tim Becker.  We will miss you!  And thanks so very much for all your contributions and hard work.

Barbara Sieverts organized an O'Hana celebration this week at Kiahuna-- one of the functions she organized was a tour and dinner at the Allerton Gardens.  A large group of us went on Tuesday night and had a wonderful time.  She really spent a lot of time and energy and I personally really appreciate it.  This is our group posed in front of the most amazing Moreton Bay Fig trees, the scene of the Jurassic Park movies!  We even had a couple of grandkids along!  Craig Brown's kids came with their kids!  If you've never been to Allerton, I highly recommend the tour and dinner!  What a treat it was!



We got a picture of the 3 blog-mistresses:  Denise Hart, Barbara Sieverts and myself! If you don't already follow the other blogs, you should:
kiahunacrab.blogspot.com (Castle RAB) and kiahunaorc.blogspot.com (Outrigger ORC).


I'll be posting the new AOBO Board roster next week along with the new committees.  If you have any interest in serving on any committees and sharing your enthusiasm and expertise, please contact me and I'll connect you to the right people!  We are always looking for new owners to join in!!

Randy Danto Nordstrom
randy@kiahuna39.com

Charity Walk

Meeting materials for homeowners' meetings in Kauai on May 8 - IMPORTANT

Notice of special meeting

Executive Session summary

Board Statement re Flohrs, Final March 25

The AOBO has recently learned that Bill Flohrs is attempting to purchase most of the assets of the Moana Corporation, including the sandwich leases for Phases IIIA and IV, the building that houses the Plantation Gardens restaurant and the Outrigger front desk, and several buildings which the Association rents. Please refer to Mr. Flohrs’ statement regarding his Letter of Intent with Moana.

The Board was concerned that his attempt to purchase Moana’s assets violated his fiduciary responsibility as a Board member and sought a legal opinion from our outside counsel.  We received a legal opinion that Mr. Flohrs does have a conflict and should therefore resign. (A copy of the attorney’s opinion was provided to Mr. Flohrs and is attached) The Board asked him to resign but he refused, citing legal advice he received from his own counsel. He has said that he will resign from the Board if the proposed purchase goes through.  Mr. Flohrs has said that he will recuse himself in matters that he feels he has a potential conflict of interest.  He has recused  himself twice thus far.

The Board cannot force someone to resign.  The only way the By-Laws provide for removing a member of the board is by a majority vote of the members of the Association (homeowners).  The Board has therefore decided that a vote should be taken at the annual meeting on whether Mr. Flohrs should be removed because of his conflict of interest., If the homeowners vote for removal, the By-Laws provide that a replacement be elected at that time via an election at the annual meeting. The proxy materials you will receive for the annual meeting will contain specific language regarding removal and the election of a successor if appropriate.

There are many Areas of potential conflict including the redetermination of the master rent for Phases IIIA and IV (the sandwich lease receives an additional 25% of the master lease, that currently is approximately $130,000), the leasing of buildings by the Association and other possible areas of development that might be dependent on reaching an agreement with the Association. The value of the assets that Mr. Flohrs is currently negotiating to acquire is directly affected by transactions that the Board is engaged in, such as lease redeterminations and rental agreements for the commercial buildings. If Mr. Flohrs is successful in acquiring these assets, he then effectively becomes our landlord.

We are unaware if any of Mr. Flohrs actions have compromised his fiduciary responsibility as a Board member, and it must be emphasized that this disclosure is not an accusation of that. It is the feeling of the Board that we must follow our attorneys’ advice regarding his status as a Board member and allow the members the opportunity to vote for his removal. Regardless of whatever the members decide, the Board wishes Mr. Flohrs success in his endeavor, and looks forward to working with him whatever the outcome.

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The following statement has been provided to the Board of Directors of the Association of Beach House Owners of Kiahuna Plantation (AOBHOKP) for distribution to all Kiahuna Homeowners:

On January 30, 2017, my son, Jason Flohrs, and I entered into a Letter of Intent with Moana to purchase the Phase IIIA and IV sandwich leases. These leases include the 31 apartment leases in Phase IIIA, the 18 apartment leases in Phase IV, Beachhouse A (Plantation Gardens/Outrigger Front Desk building), Beachhouse B (Real Estate Building), Beachhouse C (The Administration Building) and the Guest Laundry Building. The purchase would also include the current restaurant (Plantation Gardens) and lease; the AOBO facilities lease for Beachhouse A,B and C and the Guest Laundry Building; and the lease with the real estate company (ReMax formerly Pacific Ocean Properties).

We are in the process of doing our due diligence and hope to have that completed by the end of 2017. When we were reviewing the financial viability of all of the components of this transaction, the long term viability of Plantation Gardens Restaurant has become a considerable concern. The restaurant is only open limited hours on a daily basis. Expanding the hours of the restaurant has been tried in the past, but found to not be viable. We are exploring the idea of placing a resort size pool in the area just to the west of Plantation Gardens (on the eastern side of the Moir Cactus Garden). This would provide guests with food and beverages all day long with a beautiful pool setting as the backdrop. We have retained an architect, a historical architect, a historical archeologist, a local historian, and a historical landscape consultant to help us determine what steps, if any, need to be addressed in order for an expansion of Beachhouse A and the addition of a resort pool to be completed. We hope to have some preliminary answers by the Annual Meeting in May.

We have not entered into a contract, and do not anticipate doing that for quite some time, but hopefully by the end of 2017.

The Board has asked for my resignation and at this time I see no need to resign from the AOBO Board of Directors. I have abstained from any votes that represent a conflict of interest and will continue to do so. If, and when, the transaction closes, I will resign from the AOBO Board.

There are many hurdles facing this transaction. In the meantime, I will continue to work hard for the homeowners and represent them just as I have been doing over the past year.

If you have any questions, please feel free to contact me by phone (913-681-2329) or email (bflohrs@gmail.com).

Thank you,

Bill Flohrs

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If you have any questions, please contact either me (randy@kiahuna39.com) or 

Craig Price (cepricenca@gmail.com).

Reminder for candidates to send in materials - don't delay!

I sent you a notice a couple of weeks ago asking for candidates to submit their information in order to run for one of the open seats on the Board of Directors.

Time is running out!!  You don't want to miss out on this golden opportunity!  Just imagine getting to spend hours and hours together INSIDE rather than at the beach and in the sun during a trip to Kiahuna!  Not with your family!  Imagine how much healthier you'll be!  No sunburns!  Save all that money on sunscreen!

Imagine having a dinner together with your fellow board members??   How much better does it get than that?? (we do have fun, honestly)

Imagine sitting up on the dais in front of all the owners, sounding intelligent and wise??

I'm being sarcastic but in all seriousness, the Board of Directors needs your participation. It's been a great experience, and I think it's wonderful to be able to participate and help other owners with our investment and the smooth operation of the property. Owner involvement is truly essential!  And you no doubt have expertise that will be of great use to the Association that you don't even realize you have.  You will also get to know other owners you might not otherwise have met!  How can you resist??

Please contact Marianne Thesken at Outrigger!
Deadline is April 4th.

marianne.thesken@outrigger.com

If you have any questions, please feel to contact me (randy@kiahuna39.com), Denise Hart (denisehart@comcast.net), who is also the Castle RAB chair, or Barbara Sieverts (barbsiverts@gmail.com), who is on the Outrigger ORC rental committee.  We are the nominating committee.