ALEX
#I can't go into a lot of detail, <UNK>, because our discussions are confidential but just in general as we look at the business we do recognize that production going forward is going to be limited, certainly not limited to the levels of this year we don't believe because this year has been a real outlier in terms of weather and production.
But when we just look at the business model really the lever that we think is potentially most constructive to try to pull is the revenue per ton of sugar.
And so that really leaves us needing to look for ways to enhance our revenue model.
And so that is what we are focused on talking to customers about our ability to generate incremental revenue and hopefully shift some additional risk of the business and the volatility of the business to customers.
And that is about all I can say.
Yes, that is right, <UNK>.
One thing we have concluded just to put this in perspective.
This plantation is 2.5 times the size of Manhattan and so it is a big, big operation and to transition it to one crop is very challenging.
So what we have concluded is that we are probably best off looking at multiple uses of the land.
There are different microclimates, there are different soil qualities and so what we are looking at is more of a diversified approach as opposed to a mono crop which is what we have today.
So that is exactly what we are evaluating is a more diversified ag operation with maybe several different components.
Yes, <UNK>, thank you.
Let me ask <UNK> <UNK> to comment on that.
The Macy's building is about a 60,000-square-foot building that Macy's is giving up.
They currently ground lease that from us and that lease will expire in the first quarter of 2016.
Our current plan is to take back the building and split it up into multiple units for primarily restaurant and small retail base and our hope is to get that online as quickly as possible probably in early or mid-2017.
<UNK>, this is <UNK>.
So what you are seeing is essentially we have a 70% interest in GLP Asphalt with another member owning 30% and the other member actually has an option to redeem his membership interest at the greater of book value or a calculated formula.
So in the past there wasn't really a material or significant difference between those two figures.
In 2014, GLP had pretty strong performance so if you looked at the calculated value, it exceeded the book value and under GAAP what we are required to do is allocate that increase in net value to the noncontrolling interest which means that the earnings available to A&B shareholders is reduced by that amount.
So I think the adjustment was about $1.3 million for the quarter.
It did not, no.
It is really based on the performance of the entity and what I would say is that it could go both ways.
It is hard for me to predict and give you guidance that it will always be negative because I think it can also be positive.
So again, it is based on this calculated formula and because of that it is a little tough to really model in specific sort of impact from it.
Steve, this is <UNK>.
Let me ask you to clarify.
When you talk about turnaround, you mean turnaround in performance in the sugar business or a transition if we were to make a decision to transition to something else.
So first of all, I think if we were on the former on the sugar front, if we were able to have some favorable outcome in some of our discussions with our customers and then we got back to normal weather patterns next year, we could have a very different financial outcome, a very significant turnaround in that sense in the sugar business.
And that is why we have remained hopeful that we could turn the business around.
Should we decide to go a different direction and make a transition then the first thing to know is we have all of our fields planted or most of our fields, we plant them immediately after we harvest them and so most of our fields are planted and we have a lot of sugar out in the field.
So it is probably a 1 to 1.5 year process simply of harvesting the balance of the sugar.
And then and then there would be transition time into alternative crops or alternative uses.
So you are probably looking at a two-, three-year timeframe on the short end of transitioning and probably to ever make a full transition could take even longer.
It is really hard to say and it depends on what uses we transition into so not trying to be vague but it really does depend on exactly what we do with the land.
Steve, it is <UNK> <UNK>.
Primarily the change in the quarter relates to two properties, Pearl Highlands Center and Waianae Mall, which had some occupancy adjustments that brought down their total NOI for the quarters.
However on a year to date basis, the total retail portfolio NOI has grown over 8%, almost 9% and again that is a significant part of our portfolio in Hawaii.
Steve, this is <UNK>.
Unfortunately we don't comment specifically on acquisitions that are in progress but what I will say is that we are continuing to look at urban Honolulu type deals that have a nearer-term horizon than starting from ground-up as well as continued interest in suburban residential opportunities in West Oahu and similarly continued interest on the commercial portfolio for income properties.
Steve, I would only add to that that the reference that I made to the fact that we are hopeful that we would be able to announce a deal by the time of our next call, what I'm referring to there is a deal that we hope to be able to consummate on the commercial portfolio, not a development deal.
Although as <UNK> indicated, we are still very actively looking at development deals.
Yes, it is our expectation that it would be funded primarily if not entirely with 1031 proceeds.
They could be as usual from Mainland dispositions.
It also could consist of some 1031 proceeds from land sales in Hawaii as well.
Certainly the government contracting is coming out at a much more robust pace than we saw last year and so we are pleased with that.
The little bit of a delay right now in some of the projects is related to them issuing the notices to proceed once they have announced the winning bidder and contracted for the work.
So that timeframe usually ranges from three to six months.
Right now it tends to be more towards the six-month side of that range than the three-month side but it is we are happy to report getting a little bit better.
So as the city has gotten more comfortable putting out this level of work, we have seen some progress in their ability to do so more efficiently than they did in 2014.
How you should think about that project is it is phenomenal.
If you want more detail, I can say yes, we have had a couple of very big sales in Kahala this year and some smaller sales as well.
We are very much on track with our original underwriting.
We have a little bit more than halfway through our original four-year kind of timeline for selling out the project.
We have sold about 70% of the lots and about two-thirds of the acreage so that has been going very well and we are pleased with it.
Having said that, we do still have I think about nine lots remaining and so we do have some inventory.
The only activity that I would anticipate the balance of this year is one mountainside home that is under right now a nonbinding contract but knock on wood, we feel fairly good that that will move forward.
Compared to some of the oceanfront stuff, it is a relatively small transaction but we continue to have good interest in the properties on Kahala Avenue and while we can't predict what will happen next year we feel very good about where we are and hope to have some more activity next year.
Again there I would point to what we have done year to date having sold 18.4 acres is a pretty darn good result.
We do have, we did have in October a closing of a couple of parcels comprising I think about an acre or so.
I don't think you should anticipate anything else in the fourth quarter at Maui Business Park but we do have some stuff that we are optimistic about next year.
Yes, so as far as closings, we do expect to complete the building.
Construction is on schedule, we expect to complete the building next November which would set us up for closings at the end of next year.
It is possible that some of those closings could spill over into 2017.
So I'm certainly not in a position to say that we would have all the closings in 2016 but that would be our hope and expectation.
And I don't want to misquote the capital number.
<UNK>, do you know.
I can give a range.
I believe we are in the $52 million, $53 million range.
