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Work has temporarily stopped on the West Maui Hospital and Medical Center while it awaits construction permits and obtains $83 million in federal, tax-free bonds, developer Brian Hoyle said Tuesday.
"It's not unusual in the private development to stop work," Hoyle said. "It just takes time. Patience is a virtue. We're proceeding forward and at this particular juncture I think the grading went really, really well and we're very pleased with that work."
On-site grading for the 15-acre campus began in August and was completed last month, along with most of the underground infrastructure, Hoyle said. Work included installing water and sewer systems, electrical conduits and a "fairly extensive" drainage system, he said.
Hoyle said he expects the next step of off-site permitting for sewer and waterlines to be completed in 60 days. And, he said he hopes construction of the lines will be completed in six months or "about this time next year."
Hoyle said he is working with Maui County and the state Department of Transportation because the project's sewer line runs under Honoapiilani Highway. He also is working with Kaanapali Land Management Corp. because the utility lines go through resort area.
Hawaii Water Service Co. is providing the project's water and is working on running a waterline from an existing water tank mauka of the future hospital.
The long-awaited hospital development in Kaanapali already has approval for a $50 million special purpose revenue bond from the state Legislature for construction. However, because of Hawaii's high development costs, hospital developer West Maui Hospital Foundation is seeking funding for remaining costs through a privately funded bond with the Wisconsin Public Finance Authority.
Hoyle said he believed he would have received the $83 million in municipal bonds by now, but he pointed to "the political aspects of health care." He said his small, private "grass-roots" group is under "far more scrutiny than a larger entity."
"Clearly the overall marketplace for health care issues is uncertain," he said. "It's a new hospital and for that reason and uncertainty, the health care markets are taking longer to process.
"How much longer? That's a really good question. I honestly don't know. I hope to have it done this year, but at this point I don't have an idea."
When completed, the 25-bed, full-service hospital will include a 24-hour emergency room, three operating rooms, a 40-bed skilled nursing facility and a 40-unit assisted-living facility. Other features include two medical office buildings and a 40-bed, drug-and-alcohol rehabilitation facility.
Hoyle is president of Newport Hospital Corp., which is developing the entire complex.
The development is expected to generate 150 jobs for doctors, nurses and clinical and support staff. The hospital will be owned and operated by the nonprofit West Maui Hospital Foundation.
The center will be the first hospital built in Hawaii since the North Hawaii Community Hospital was constructed on the Big Island in 1995. Maui Memorial Medical Center opened in 1952 in Wailuku.
"At the end of the day, we'd rather do it slower and better and do it right," Hoyle said. "We're really taking our time to have the best hospital ever built."
* Chris Sugidono can be reached at csugidono@mauinews.com.