Tech billionaire Larry Ellison’s purchase of a Hawaiian island has reportedly made life so expensive in the tropical paradise that families who had been living there for generations have been forced to leave.
77-year-old Ellison, who is the co-founder of American multinational computer technology company Oracle Corporation, had bought 98% of Lanai, a secluded island in Maui County, 10 years ago, as per New York Post. Ranked at 11th, his net worth at present is $86.9 billion as per the Bloomberg billionaires index (at the time of writing this report).
He had reportedly paid $300 million for the island’s 90,000 acres, which include two Four Seasons resorts that provide most of the jobs, homes, and commercial properties for the approximately 3,000 local residents.
Ellison developed the area to the point where small business owners and other working-class residents have been priced out, according to Bloomberg.
As per Bloomberg, some families who left the island say that the island didn't feel like home anymore.?
A high school math teacher named Michelle Fujie, who is engaged to another local, says they can't live together because they can't find an affordable house big enough for them and their 3 kids. They fear that if they leave the island, they may never be able to afford to return.
She says "My biggest worry is that the island becomes a playground for only the rich".
One of the first things that billionaire Ellison did after purchasing the island was to build a Nobu, the definition of an ultra-high-end restaurant chain. Dinner for two here could easily exceed $1,000, as per NewYorkPost.
Chris Andrus, who helped his friend Peter Franklin start up a business called Lanai Woodworkers, told Bloomberg that the company aided in building the restaurant.
But Ellison even bought the building where Lanai Woodworkers rented space. Ellison’s representatives told Franklin that he would either have to clear out or sell the business to the tech mogul, according to Bloomberg.
Franklin sold the business to billionaire Ellison, who promised him a job. But Andrus was out of luck. At age 64, he was unemployed.
After business dried up, Andrus said he fell behind on his utility bills and is now reportedly relying on aid from Catholic Charities to help him pay rent at his home, as per New York Post.
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According to Bloomberg, Ellison owns all of the real estate on the island. If a resident is fired from a job at any of his companies, tenants can be kicked out of their homes on short notice.
Small businesses who rent space from Ellison are also forced to agree to 30-day leases, whereas before they were allowed to sign up for five-year terms.
Ellison has also invested serious sums of money in renovating facilities and infrastructure on the island, which has, in turn, attracted wealthier residents.
Those who have lived there for generations, who earn a median income of $59,000, simply cannot afford the skyrocketing home prices, as per New York Post.
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