February 23, 2009

Dear West Molokai Resort Homeowners,

We have reported to you on numerous occasions that the Ranch, aka Molokai Properties Limited (MPL), has breached the Cross Easement Agreement currently in place with our association. Recently the Ranch has become increasingly belligerent and on February 3, 2009 they took another step toward confrontation by closing our swimming pool in the Kaluakoi common area. The Department of Health had required a backwash system installation and our AOAO agreed to pay for our share per the Cross Easement Agreement. Instead of paying their share the Ranch unilaterally closed the pool.

The AOAO Board immediately volunteered to take over maintenance of the pool and bring it into compliance with the DOH. The Ranch refused this offer and hardened their position even further by declaring they were no longer willing to participate in any cost of maintaining the swimming pool or the surrounding common area. In fact, now the Ranch has taken the position that our association has no right to use the pool, even if we maintain it ourselves.

The Cross Easement Agreement between the AOAO and the Ranch clearly and absolutely grants us access and use rights to the pool and all the Hotel Lot common areas.

The AOAO Board of Directors have been forced to make a major decision...either accept permanent closure of the swimming pool and abandonment of the common areas or file suit and force the Ranch into compliance with the Cross Easement Agreement. The Board voted unanimously to file suit in the form of a declaratory relief action. This occurred in Circuit Court on Maui, February 17, 2009. While this dispute works its way through the court system, the AOAO will continue to do everything possible to gain access to the equipment and facilities to re-open and maintain the pool ourselves.

There have been rumors about the pool being drained and filled with sand. That is our greatest concern and we are taking every action possible to stop that from happening. Hopefully we can convince the Ranch management that letting us reopen and maintain the pool will be easier and less costly than the damages they will incur by continuing their current strategy.

We will continue our efforts and try to keep everyone informed as events unfold.

Sincerely,

Jeff Kent
President, West Molokai Resort AOAO

Important Notice:

The next AOAO Board Meeting will be March 20, 2009 on Kepuhi Beach Resort Property.

Time and location will be posted the week prior.

February 3, 2009

Dear West Molokai Resort Homeowners,

Today the Molokai Ranch took another step toward confrontation with our association by closing our swimming pool in the Kaluakoi common area. The Department of Health had required a backwash system installation and our AOAO agreed to pay for our share per the Cross Easement Agreement. Instead of paying their share the Ranch unilaterally closed the pool.

Our Management Board and attorneys are looking into our options and planning our response.

Please understand that we know how important the common area and swimming pool are to our owners, guests and rental partners. The AOAO will do what ever we can, as quickly as we can, to bring our pool back into use.

Sincerely,

Jeff Kent
President, West Molokai AOAO

January 12, 2009

Dear West Molokai Resort Condominium Homeowners

Hau’oli Makahiki Hou!
(Happy New Year)

As we wave goodbye to the challenging year of 2008 and look forward to a better 2009 let’s all remember what a special place we own together and recommit ourselves to further enhancing our shared piece of paradise.
Your AOAO Board of Directors have a variety of activities planned for 2009, including:

• Increased building maintenance and repairs.

• Increased grounds maintenance and property beautification.

• Develop and institute a comprehensive utility conservation program.

• Improve property signage in parking lots and pool area.

Resolve the Cross Easement dispute with the Ranch and improve the condition of our common areas.
Our relationship with the Ranch continues to be very difficult. Improvements in landscaping occurred during October, November and December. However, recent correspondence from the Ranch has been aggressive and unyielding. The swimming pool requires a structural upgrade per the Department of Health which the Ranch is unwilling to participate in. Their position is in direct conflict with our legally binding cross-easement. The AOAO Board will continue to remain firm in our negotiations to insure compliance with the cross easement.
Enclosed are minutes from the November Annual meeting and the Board of Directors meetings.
Sincerely,

Jeff Kent
President, West Molokai Resort AOAO

AOAO Board
Mike, Ellyn, Jeff, Barb, Dale, Bob

AOAO Crew
Chris, Reuben, Franklin, Mike, Hermie, Rodney

P.O. Box 58, Maunaloa, Molokai, Hawaii, 96770
Telephone 808.552.2313
www.kepuhibeachresort.com