Parents of students that attend Hualalai Academy on the Big Island of Hawaii were shocked when they received an email on Friday from the Board of Directors of the School, Dr. Matt James, that told them the academy would be closing it’s doors for good at the end of the academic year OR SOONER.
The letter basically stated the school needed to raise $3,000.00 per student just to be able to complete the school year.
I tried to warn folks about the legitimacy of some of the things this alleged “Dr.” was doing previously on my website:
- In November of 2008, I blogged about this Board of Director who sent out the memo and I had suspicions that he was linked to diploma mills when I blogged, President of Unaccredited American Pacific University in Honolulu Brings in More then $3 Million Per Year on Hypnosis.
- In February of 2009, I blogged how this same guy, Dr. James was going to build a campus on the Kona side of the Big Island, “Unaccredited University Linked to “Diploma Mill” – American Pacific University to Build Kona Campus?“
Today I got an email from a parent from one of the students that attends the campus and she is concerned about her kids future at this school and whether he will even complete the school year at the school:
I’m a concerned parent who’s child attends Hualalai. We received a letter Friday that they will be closing their doors before end if school year. We are currently trying to get answers and can’t get any. We started looking into the president of the board Dr. Matt James and seen do did a story on him awhile back, we found that his past seems to be shady. Looking for some help.”
I’ve forwarded this information on to some of my other journalist friends and we will see if we can get some answers for the students. In the meantime here is the letter that students brought home to their parents yesterday:
January 17, 2014
Dear Hualalai Academy Ohana,
It is with a heavy and sad heart I must share with you that Hualalai Academy must close its doors at the conclusion of this academic year or sooner if we are unable to secure additional funding. We are turning to you, the ohana, to help the school get through this school year.
Before I begin and share with you the entire series of events, I want you to know that as parents of two children who attend this amazing school, my wife and I are devastated. The faculty and Board of Directors have done everything we can and at this point we do not see a miracle on the horizon.
John Colson, the Board of Directors and I have been working on our financial challenge since July 1st of this school year. To begin, please keep in mind that John left a wonderful job at HPA to join us. He believed this school was special and that it could become the premier independent school in Kona.
First, we identified the school needed to cut expenses and reduce overhead. John did this immediately and put the school in a position to be as close to a balanced budget as possible. Furthermore, the board made the difficult decision of conducting a teach-out for the high school and suspending operation at the end of May 2014. Both of these actions set up our ability to stabilize the school.
Next, we secured funding to fill gaps created by a smaller than usual enrollment to complete the first half of the school year. This temporary loan assisted the school to remain functional, and it allowed John and I the necessary time to meet with the bank and work on our debt restructuring. While the school owns the land, it has also incurred significant debt over the years.
The school campus, both land and structures, has a significantly higher value in comparison to our debt; therefore, based on this, we created a three to five year business plan to improve the school. As a part of the plan, we met with the bank to restructure the loans and refinance the land. Based on the land value and our plan, we were very confident the bank would approve the plan and assist us with a new financial package. We have been with this bank since the foundation of our school and have a good working relationship with them.
So, with the land asset, John running the school, and our business plan, the meeting went extremely well. The bank gave us positive indications and we were asked to wait. Because of this response, we only pursued one other avenue which was a possible sale of the land to finance our operations. After waiting for two months, we were informed by the bank that not only would they NOT refinance the land, they would not assist us in any other fashion.
During the two month wait, we also met with all of the viable banks in Hawaii to no avail. Additionally, we worked with an investment company from the mainland, explored the option of becoming a charter school with authorities and we have looked for a buyer to purchase the land all with the legitimate expectation that we could stay open and continue to deliver the amazing Hualalai Academy Experience.
As of January 16, with no other viable options for the school, we felt we must disclose our financial situation to you. Thus, we must now work to find transitional funding to complete this school year and assist families as they begin to find other educational options for the 2014-2015 school year. To put our financial situation into perspective, the school needs to raise approximately $3000 per student to make it through the remainder of the 2013-2014 school year.
On behalf of the full board, I thank you for your support of Hualalai Academy and being a part of our ohana. We are now doing everything we can to complete this year, and we need your support and help. To be clear, without additional funding the school year may have to be shortened.
Should you have questions, please contact John at your convenience.
With a heavy heart,
Dr. Matt James, Chair
Board of Directors