Ulupono Initiative

Ulupono Initiative
Company typePrivate
IndustryGrantmaking, Advocacy, Investing
Founded2009
FoundersPierre Omidyar
Pam Omidyar[1]
Headquarters
Honolulu, Hawaii
,
United States
Number of locations
1
Area served
Hawaiʻi
Key people
Murray Clay (President)
Number of employees
10-15
ParentThe Omidyar Group[2]
WebsiteUlupono.com

Ulupono Initiative is a Hawai‘i-based and -focused[3] organization that uses impact investing,[4] non-profit grant-making, and advocacy[3] with the stated goals of "increasing the amount of locally produced food, renewable energy and clean transportation, and improving water and waste management."[4]

eBay founder Pierre Omidyar and his wife Pamela Kerr established Ulupono in 2009, after each spent parts of their childhood in Hawai‘i.[5]

Activities

Ulupono has conducted for-profit investments in areas including solar energy,[6] biofuels,[7] electric vehicle charging networks,[8] expanded local agriculture such as re-establishing homegrown dairy[9] and grass-fed beef industries,[10] and waste reduction projects.[11]

When Ulupono was founded in 2009, Kyle Datta[12] and Robin Campaniano[13] occupied leadership roles in the company.[14]

Ulupono advocated a Hawai‘i state constitutional amendment to allow farmers, ranchers and owners of other agricultural endeavors to request special purpose revenue bonds (SPRB).[15] The measure passed with 50.2% of the vote in Hawaii's 2014 general election. Ulupono, the main funder of the "Local Food Coalition", contributed $500,000 of the $507,400 (98.5%) raised for the amendment's passage.[16]

Honolulu-based Ulupono received $875,000 in state tax credits under a 2008 law that created incentives for landowners to preserve prime farmland for agricultural use in perpetuity. Ulupono said in a written statement that it is disappointed that Hawaii Dairy Farms didn’t succeed but that the tax credit program provided an incentive to take on risk with the project it estimated would cost $17.5 million.[17][18]

Ulupono first invested $1 million in Honolulu Seawater Air Conditioning in August 2013;[19] in November 2014, Ulupono Initiative and Capital Cooling[20] purchased a majority stake in the company.[21] The proposed $250 million project was appropriated State of Hawaii government backed Special Purpose Revenue Bonds in 2005 of up to $48 million[22] with extensions in 2010[23] and 2015;[23] in 2007 of up to $20 million[24] with an extension in 2012;[25][dead link‍] and in 2009 of up to $77 million[26][dead link‍] with extensions in 2014[27][dead link‍] and 2019[28][dead link‍] (expiration in June 30, 2024) after consistently not completing the project in time. The Hawaii State Legislature did not renew the Special Purpose Revenue Bond allocation from 2005 in the 2020 legislative session. Ulupono invested more than $6 million in the project. In December 2020, Honolulu Seawater Air Conditioning announced it would conclude its operations by the end of January 2021,[29] citing rising construction costs.[30]

In 2014, Hawaii Constitutional Amendment 2, which "allows the State to issue special purpose revenue bonds to assist agricultural enterprises on any type of land, rather than only important agricultural lands"[31] passed with 50.2%, 0.2% more than required and making it the closest ballot initiative in Hawaii's history. Ulupono contributed $500,000 of the $507,400 (98.5%) raised for the amendment's passage.[32] The League of Women Voters noted the concern about Amendment 2's passage was, "Large, for-profit agribusiness will also be eligible for low cost, privately-funded loans. This will give them a competitive advantage over small farms".[33]

In March 2017, JLL released a report commissioned by Ulupono claiming that the Honolulu Authority for Rapid Transportation (HART) could save up to $570 million on construction of the Skyline rail system by working with private contractors. The analysis concluded that the project remained dependent on public funding to close the $2 billion funding gap. Delays in funding could further delay the project, potentially costing the taxpayers of Hawaii up to $114 million per year.[34] In response to Ulupono's report, HART worked with Ernst & Young to investigate possible public-private funding models.[35]

In September 2020, the city announced it was withdrawing from the effort to land a private-sector partner on the rail project.[36] HART shared that it was canceling the public-private effort two months later.[37] An 11-mile section of the Skyline rail opened in June 2023.[38]

Ulupono has provided funding to Bikeshare Hawaii,[39] which runs the Biki bike-sharing program launched in 2017.[40] Biki announced in April 2021 that due to revenue lost during the COVID-19 pandemic, it would cut services by up to 60 percent.[41] By October 2021, returning tourism had led to an increase in Biki use, and the organization claimed it was able to make less deep cuts than initially anticipated.[42] Biki marked six years in operation and nearly six million rides in June 2023.[43]

Investment portfolio

Ulupono has invested in companies including Hawaii Dairy Farms[44] on Kauai, Honolulu Seawater Air Conditioning,[45] Sopogy, SolarCity,[46] Blue Ocean Mariculture, Hawaii BioEnergy,[47] Phycal,[48] Kapalua Farms on Maui,[49] Oceanic Institute Research Feed Mill, Ibis Networks,[50] and Bioenergy Hawaii.[51]

References

  1. ^ Kaya, Travis (5 August 2010). "Omidyars join others in donation pledge". Honolulu Star-Advertiser. Retrieved 24 August 2023.
  2. ^ "FAQs". Ulupono Initiative. Retrieved 24 August 2023.
  3. ^ a b Sweeney, Erica (23 April 2021). "How Honolulu's Ulupono Initiative is helping Hawaii fight hunger, invest in clean transportation and housing, and become carbon neutral by 2045". Business Insider. Retrieved 24 August 2023.
  4. ^ a b Fujii-Oride, Noelle (5 January 2021). "Investing in People, Companies and the ʻĀina". Hawaii Business Magazine. Retrieved 24 August 2023.
  5. ^ York, Carnegie Corporation of New. "Pierre Omidyar". Carnegie Corporation of New York. Retrieved 2020-11-22.
  6. ^ "Hawaiʻi's first two community-owned solar projects coming to Molokaʻi". Maui Now. 12 January 2023. Retrieved 24 August 2023.
  7. ^ "Hawaii biofuels company gets investment". VC Star. 14 July 2010. Retrieved 24 August 2023.
  8. ^ "Hawai'i Energy and Ulupono Offer Incentive for Electric Car Charging Stations". Maui Now. 1 February 2019. Retrieved 24 August 2023.
  9. ^ "Ulupono Investing $17.5M in Hawaii Dairy Venture". Dairy Herd Management. Associated Press. 3 December 2013. Retrieved 5 October 2023.
  10. ^ Shimogawa, Duane (21 March 2014). "Parker Ranch, Omidyar's Ulupono Initiative partner on expansion of Hawaii's beef market". Pacific Business News. Retrieved 5 October 2023.
  11. ^ "Ulupono Joins BioEnergy Hawaii On Puuanahulu Waste Project". Big Island Video News. 20 May 2015. Retrieved 5 October 2023.
  12. ^ "General Partner Datta retires from Ulupono Initiative". www.bizjournals.com. November 14, 2018. Retrieved 2020-12-06.
  13. ^ "Talk Story with Robin Campaniano". Hawaii Business Magazine. 2010-04-10. Retrieved 2020-12-06.
  14. ^ Wire, Hawaii Star (2009-06-26). "Ulupono Founded to Promote Sustainability Efforts". Hawaii Star. Retrieved 2021-04-15.
  15. ^ "Farmers groups offer support for Amendment 2". West Hawaii Today. Retrieved 2016-03-15.
  16. ^ "2014 Election Summary Ballot Issue Committees" (PDF).
  17. ^ No dairy farm, https://www.thegardenisland.com/2019/02/01/hawaii-news/no-dairy-farm/
  18. ^ Hawaii's Taxpayers Take Loss on Failed Kauai Dairy Plan, https://www.dairyherd.com/article/hawaiis-taxpayers-take-loss-failed-kauai-dairy-plan
  19. ^ "$1M local investment in Honolulu Seawater Air Conditioning". Hawaii News Now. Retrieved 2020-12-21.
  20. ^ "New owners for Honolulu Seawater Air Conditioning". The Washington Times. Associated Press. 22 November 2014. Retrieved 18 September 2023.
  21. ^ Mykleseth, Kathryn (21 November 2014). "Omidyar becomes majority investor in Honolulu Seawater Air Conditioning". Honolulu Star-Advertiser. Retrieved 18 September 2023.
  22. ^ "HB1238 CD1". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  23. ^ a b "SB2544 HD1.DOC". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  24. ^ "HB870 SD1". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  25. ^ "Hawaii State Legislature". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  26. ^ "Hawaii State Legislature". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  27. ^ "Hawaii State Legislature". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  28. ^ "Hawaii State Legislature". www.capitol.hawaii.gov. Retrieved 2020-12-21.
  29. ^ Magin, Janis L. (19 December 2020). "Honolulu Seawater Air Conditioning to end development after 15 years". Pacific Business News. Retrieved 18 September 2023.
  30. ^ "Hawaii Seawater Air Conditioning Plans Shut Down Over Costs". Hawai'i Public Radio. Associated Press. 29 December 2020. Retrieved 18 September 2023.
  31. ^ "Hawaii Bonds for Agricultural Enterprises, Amendment 2 (2014)". Ballotpedia. Retrieved 2020-12-21.
  32. ^ "2014 Election Summary Ballot Issue Committees" (PDF).
  33. ^ "General Election 2014 Pros and Cons" (PDF).
  34. ^ Hill, John (21 March 2017). "Report: Rail Could Save Big With Private Financing". Honolulu Civil Beat. Retrieved 20 September 2023.
  35. ^ Honore, Marcel (15 May 2018). "Rail Leaders Look To Curb Runaway Costs With New Partners". Honolulu Civil Beat. Retrieved 21 September 2023.
  36. ^ Honore, Marcel (26 September 2020). "Honolulu Pulls Out Of Public-Private Partnership Plan For Rail". Honolulu Civil Beat. Retrieved 21 September 2023.
  37. ^ Honore, Marcel; Dayton, Kevin (21 November 2020). "'How Do We Go Forward?' Honolulu Rail Leaders Kill P3, Confront Unknown Costs". Honolulu Civil Beat. Retrieved 21 September 2023.
  38. ^ Angueira, Gabriela Aoun (1 July 2023). "Passenger rail finally arrives in Honolulu". Grist. Retrieved 21 September 2023.
  39. ^ Cook Lauer, Nancy (3 February 2016). "Bike-share program to provide recreation, transportation in Kailua-Kona". Hawaii Tribune-Herald. Retrieved 21 September 2023.
  40. ^ Napier, A. Kam (4 August 2017). "Who's Riding Biki Bikes?". Hawai'i Public Radio. Retrieved 21 September 2023.
  41. ^ "Bikeshare Hawaii to remove Biki stations, reduce services to cut costs". KHON2. 2021-04-13. Retrieved 2021-04-15.
  42. ^ Honore, Marcel (11 October 2021). "Biki Is Bouncing Back From Covid-Era Vandalism, Ridership Woes". Honolulu Civil Beat. Retrieved 21 September 2023.
  43. ^ Cruz, Catherine (10 May 2023). "Bikeshare company Biki celebrates 6 years, looks ahead to Honolulu rail". Hawai'i Public Radio. Retrieved 21 September 2023.
  44. ^ Hawaii Dairy Farms scuttles plans, citing Hawaii's regulatory environment, https://www.bizjournals.com/pacific/news/2019/02/01/hawaii-dairy-farms-scuttles-plans-citing-hawaiis.html
  45. ^ Financial crisis, falling oil price contributed to delay of long-planned seawater A/C project, http://www.honoluluswac.com/_assets/_pdfs/20181023%20Financial%20crisis%20falling%20oil%20price%20contributed%20to%20delay%20of%20lon.pdf
  46. ^ "Ulupono Initiative investing in SolarCity projects in Hawaii". Pacific Business News. 18 September 2012. Retrieved 24 August 2023.
  47. ^ Hawai‘i BioEnergy, LLC, https://www.hawaiibioenergy.com/
  48. ^ Phycal, http://www.phycal.com/
  49. ^ Omidyar-backed sustainable-ag group takes over Maui's Kapalua Farms, http://the.honoluluadvertiser.com/article/2010/Jan/30/br/hawaii100130011.html
  50. ^ WattIQ (Formerly Ibis Networks), https://www.linkedin.com/company/wattiq/
  51. ^ BioEnergy Hawaii partners with Ulupono Initiative for energy conversion system, https://www.bioenergyhawaii.com/press-releases