Michael Baskin, a longtime businessman who has clashed with Maui County over his boutique hotel and confronted allegations of sexual harassment from employees, is now facing the possibility of selling his extensive properties in Pā‘ia town months after filing for bankruptcy.

The properties owned by Baskin are a mix of oceanfront homes, a nine-room inn, restaurant, wedding venue and a parking lot worth over $40 million combined, at least, based on court documents and property tax records.

Until recently, six of the properties had been slated for a bankruptcy auction on March 5, and three others, including one he leases, had also been listed for sale.

But now the future of those properties, and whether they’ll be sold at all, is up in the air after a trustee was appointed to the case on Monday and took over decisions for the properties moving forward.

“We are actively evaluating all responsible options as part of the Chapter 11 (bankruptcy) process,” Baskin told the Hawai‘i Journalism Initiative via email Saturday. “A sale is one possibility, but it is not the only one.”

The properties make up a sizable portion of the small seaside town of Pā‘ia, where Baskin spent his teenage years working at his mom’s smoothie shop in the 1970s.

In a filing with U.S. Bankruptcy Court on Oct. 24, Baskin said his financial difficulties dated back to the economic impacts of the COVID-19 pandemic in 2020 and the Lahaina wildfire in August 2023. He told the Hawai‘i Journalism Initiative that the publicity of the sexual harassment lawsuit “has had a real impact on our businesses.”

“That impact, combined with the broader economic hardship Maui has faced following the Lahaina fires and the subsequent slowdown in tourism, contributed to our decision to file for Chapter 11 protection,” Baskin said.

On Oct. 24 of last year, Baskin’s Seashore Properties (owner of the Paia Inn at 93 Hāna Highway and parking lot at 75 Hāna Highway) filed for bankruptcy. The petition shows estimated assets at $10,000,001 to $50 million and liabilities at $10,000,001 to $50 million. The dozen claims include $1.2 million to Atlanta-based RE Nectar Inc., $78,087 to Maui Electric Co. and $60,000 to EC Paia LLC, the California-based company that bought 339 acres of former Hawaiian Commercial & Sugar Co. land on the outskirts of Pā‘ia town.

Baskin had originally been hoping to buy the land with EC Paia’s help before the company pulled out over media reports of his disputes with Maui County and bought him out instead.

Three other of Baskin’s entities also filed petitions for bankruptcy on Oct. 24, including Paia Inn LLC, which lists estimated assets up to $50,000 and liabilities at $1,000,001 to $10 million. The claims include $2.7 million to Connecticut-based Moby Capital as part of a settlement agreement, $2 million for an economic injury disaster loan from the U.S. Small Business Administration, and $59,895 to OLS Hotels and Resorts LLC, the organization that provides workers for his inn. 

Paia Life LLC (owner of a home at 23 Nalu Place) reported estimated assets of $1,000,001 to $10 million and estimated liabilities of $10,000,001 to $50 million. Unsecured claims include nearly $9.6 million to Hawaii State Federal Credit Union and about $47,797 to the Hawai‘i Department of Taxation.

Paia Park LLC (owner of a retail building at 69 Hāna Highway) reported estimated assets of $1,000,001 to $10 million and estimated liabilities of $10,000,001 to $50 million. Unsecured claims include $4.6 million to Honolulu-based Tango Juliet LLC.

They are all filing jointly under the Seashore Properties case, federal court records show. Baskin is listed as the sole member of Paia Park and the sole member and manager of both Paia Life LLC and Paia Properties LLC, which manages Seashore Properties and Paia Inn LLC.

“This filing is a reorganization, not a liquidation, and is intended to address loans that came due during an extraordinarily difficult period for the island, while allowing us to stabilize operations and continue serving our guests and employees,” Baskin said.

But a bankruptcy auction was set up for six of Baskin’s properties, including: 

• Paia Inn, a nine-room inn with ground-floor retail and a restaurant and bar at 93 Hāna Highway. Appraised at $17.8 million, according to court documents.
• A 1,400-square-foot beachfront home with three bedrooms, two bathrooms and uncovered parking for two cars at 23 Nalu Place that court documents show is rented out as an additional room of the Paia Inn. Appraised at $5.2 million.
• A two-story fourplex with six bedrooms, four bathrooms, and detached storage/office at 95B Hāna Highway that is rented out as three rooms of the Paia Inn. Appraised at $3.6 million.
• Two garden cottages with beach access and a total of 3 bedrooms and two bathrooms at 40 Ae Place that serves as three additional rooms of the Paia Inn. Appraised at $2.7 million. 
• Freestanding retail with an attached apartment and room-expansion plans at 69 Hāna Highway. Appraised at $3.3 million.
• A parking lot with the potential to build 11 rooms at 75 Hāna Highway. Appraised at $3 million, the 3,220-square-foot vacant parcel generates about $9,000 to $10,000 a month in parking income.

Three other properties in the portfolio were not included in the bankruptcy sale, but they were listed as available to purchase:

• Surf Club, a beachfront restaurant and venue at 65 Hāna Highway. Maui County property tax records list a total assessed value of nearly $2.9 million. Tax records show the property is owned by the Uehara family, with Baskin’s Paia Bay Properties as the lessee.
• Temple Makai, a beachfront wedding and event venue at 49 Hāna Highway. Property tax records list a total assessed value of nearly $2.9 million.
• A beachfront estate at 33 Hāna Highway with a four-bedroom, three-bathroom home, a detached cottage with two bedrooms and one and a half bathrooms, and a three-car garage. Property tax records list a total assessed value of just over $5.1 million.

The New York-based firm Keen-Summit Capital Partners, which was hired to help market the properties, declined to comment. 

Wayne Mau, who was appointed trustee in the case, said he couldn’t comment on what happened in the bankruptcy proceedings prior to his appointment, but said that those plans had been “tabled.” He said his appointment as trustee means “all decision-making is taken away from the debtor,” and given to Mau, and that everything Baskin had intended to do prior to his appointment is now “suspended.”

Whether there is “a sale or a reorganization of some sort, that’s yet to be determined,” Mau said.

“Everything is in flux right now, and it’s in the transition period,” he told the Hawai‘i Journalism Initiative on Thursday.

Mau added that he visited Pā‘ia and met with Baskin this week and had no specific plans other than “trying to keep the operations going” at the Paia Inn, which will still receive guests and honor bookings but will be under different management.

When asked if he would be running the inn, Mau said “it’s going to be run under my authority, yes. The current management is out, by virtue of my appointment.”

He did not have a timeline as to when a decision would be made on whether to sell the properties. 

Baskin said that he remains “deeply invested in the long-term success of these properties and the people who depend on them” even after Mau’s appointment.

“As the trustee process moves forward, we are cooperating fully and supporting the transition of day-to-day operations to experienced professional management,” he said. “This year I plan to retire as new management is in place.”

He said alternatives to selling “may include refinancing with new lenders, bringing in joint-venture partners, or selectively selling certain assets rather than the entire portfolio.”

“At this stage, nothing has been finalized,” he said. “Whether all nine properties would be included — or only a portion — depends on which option ultimately best serves the restructuring of the business, the community, and our employees. The properties have been professionally appraised, and interest has been expressed, but we are being thoughtful and deliberate.”

Baskin, a Seabury Hall graduate, moved to California for college and had a design firm in Santa Monica before eventually coming back to Maui, according the website of the Paia Community Association.

He and his wife Sarah Sparks are listed as the sole board directors. The website also says he has run Baskin Design Paia for over 30 years and served on various local boards and committees, including as vice chair of the Pāʻia Main Street Board for over eight years.

In 2008, he opened the Paia Inn in a historic building established in 1927. Over the years, the inn and its surrounding properties grew into a focal point of contention in the community. 

In July 2015, after a two-year investigation, Maui County issued 30 notices of violation to Baskin for issues that included converting garages and a shed to short-term rental rooms, renting more rooms than his permits allowed, building a parking lot with no permits and construction building additions with no permits, Maui Now reported at the time.

He was issued fines of $500,000, the largest amount ever levied by the Maui County Department of Planning at the time.

In 2016, the Maui Planning Commission denied Baskin’s request for a special use permit to expand the inn from five guest rooms to nine, citing his previous problems with the county. By then, Baskin had missed the deadline to pay his fines in full and still owed $190,000. He paid off the rest on Jan. 31, 2017, “the very last day” of his extension, the county told The Maui News at the time. 

Baskin acknowledged paying the fine but said as part of his settlement agreement with the county, “there is no admission of wrongdoing on our part.”

The Planning Commission denied the permit request again in 2018, only to have a 2nd Circuit Court judge order the commission to approve it in 2019 because they hadn’t made a decision within the proper timeframe. Two commissioners resigned in frustration over the issue. More than 6,000 people signed an online petition against the permit, calling for “no hotels in Pā‘ia.”

In response to longtime complaints by the community, Baskin told the Hawai‘i Journalism Initiative: “Our work has always been driven by respect for place and a belief that good design can preserve — not erase — local character.”

“Many of the properties we acquired were built long before modern permitting systems existed, a reality throughout Pāʻia and Maui,” he said. “While enforcement has not always been consistent countywide, we have worked diligently with the County of Maui to resolve issues, secure permits where required, and move forward in good faith.”

He said the inn is a “small, family-run business” that has employed local residents and supported nearby businesses, and that after decades of investing in the property and raising their children on Maui, “this town is our home.”

The Maui County Planning Department told the Hawai‘i Journalism Initiative on Friday that the Paia Inn at 93 Hāna Highway and home at 23 Nalu Place currently have transient vacation rental permits that expire Jan. 30, 2034, and Jan. 1, 2029, respectively.

“There are no active TVR permits for 95 Hāna Highway or 40 Ae Place,” the department said. “Permit renewals for those properties were not approved, and the owner has appealed those decisions.”

In 2021, Paia Inn employees came forward to accuse Baskin of sexual harassment, allegations that led the U.S. Equal Employment Opportunity Commission to file a lawsuit against Baskin in May of last year.

The lawsuit alleged that since at least 2015, Baskin “regularly preyed” on female employees, some of whom were teenagers, with “repeated, frequent and offensive touching, along with sexual advances and comments.”

When one employee stood up for other female employees to stop the sexual harassment, the commission said Baskin immediately fired the worker. Other employees who complained about the sexual harassment also were also fired or forced to quit, the commission added. 

Baskin said: “I want to be clear that I strongly dispute the allegations raised in the EEOC Complaint, which only contains allegations that have not yet been proven in court.” He said he had evidence to refute the allegations “through the appropriate legal process.”

“Because this matter is ongoing, I believe it is important to address it through established channels rather than through headlines, and we are cooperating fully in that process,” he said.

A commission spokesperson said Friday that “the agency does not comment on ongoing litigation.”

Pā‘ia resident Francine “Aunty Mopsy” Aarona has long been one of Baskin’s most vocal critics. She’s lived in the area for nearly 26 years and first got to know Baskin around 2013. He owned the property at 23 Nalu Place next door to her home, and at first, she thought it was going to be a primary home for him and his family. But then she met a couple who told her they’d been renting it out short term.

“I said, ‘you were?’” Aarona said, recalling her surprise. “That’s how it all started.”

For years, Aarona and other residents raised concerns about the legality of Baskin’s operations and held protests outside the Paia Inn. She complained at commission meetings that his vacation rentals were changing the character of the neighborhood. She said her dispute with Baskin is that she felt that it was “all about tourism” for him and not about the impact to the neighbors. It wasn’t even the guests who bothered her; it was more so how he “mistreated his neighbors” that made things worse, she said.

“It was all about them and not us,” she said. “He didn’t make us a part of them.”

Aarona, who is part Native Hawaiian and Native American, felt like she couldn’t trust his next move, telling him once that “you are like the white man talking to an Indian with crooked tongue.”

Aarona said some other businesses are good neighbors, letting residents know when they’re having events and cutting off their festivities at the promised time, for example. She wants whoever owns the properties around her in the future to commit to keeping the community informed and included in what has always been a “residential town.”

If someone buys the properties with good intentions, “we’ll never have a problem,” she said. “They fix it up. It’s where they live. They become a neighbor just like us.”

The future of Baskin’s properties is important to a community that’s watched Pā‘ia change from a “quaint and quiet” north shore plantation town to a surfing capital and bustling tourist hub jampacked into the span of a few blocks, with crowds of people enjoying the vibe, restaurants and boutique shops each day. Since the 2023 wildfire, business owners say more visitors have been coming in search of the small-town, pre-fire charm of Lahaina.

Maui County Council Member Nohe U‘u-Hodgins, who holds the Pā‘ia-Ha‘ikū-Makawao residency seat, said the land Baskin owns makes up “quite a significant piece of central Pā‘ia town,” so if it sold, it would be “a very big deal.”

U‘u-Hodgins, who declined to comment on Baskin specifically, said she was unsure how things would play out, but if someone else does buy the properties, “I really do hope they work well with the people of Pā‘ia town so we can avoid this kind of situation in the future.”

Tobi Hartman Fisher, who founded Tobi’s Poke and Shave Ice on Maui in 1992 and sold the Pā‘ia business in 2023, said she used to know the families who lived in the properties now owned by Baskin and others.

As a kid attending Doris Todd Christian Academy just up the road from Pā‘ia town, she remembers tagging along with her mom to do grocery shopping at the old-school mom-and-pop shops where the businesses were set up downstairs and the families lived on the floor above. 

But slowly she’s watched these longtime local families have to sell their properties because they couldn’t afford the taxes. Pā‘ia has changed, but it “still has that small town, owner-operator business feel,” she said. For years, she was proud to be one of those local businesses that employed born-and-raised kids who grew up skating and surfing at the nearby Pā‘ia Youth & Cultural Center.

Fisher declined to comment on Baskin’s situation. However, she said, the inn fills a “niche in the market” and that many customers of Tobi’s mentioned they were staying there. 

“It’s like the catch-22,” she said. “We all want less tourists, but what are we going to do to take the place of that?”

Drew Castellini, directing manager of Oceania Maui, a longtime jewelry store located across the street from the Paia Inn, said if the properties were to sell, it could be “a good thing for the town overall, that maybe too much of it’s held by one person, and it’d be better to have some of those properties be a little diversified.”

However, he said he hoped the inn could continue operating “because that’s one of our only local hotel resources for this whole side of the island.”

“It really supports us financially here to have people staying really close by where they can literally walk to the businesses,” Castellini said.

He said he didn’t know Baskin’s situation well enough to comment on the allegations against him.

Castellini lost his Oceania branch on Front Street in the 2023 wildfire, but his flagship store has weathered the economic struggles. However, he said Pā‘ia could use a little extra love — specifically public trash cans and more parking — especially now that it’s one of the only walking towns left on Maui. He’s heard many people mention that they made Pā‘ia their last adventure before heading to the airport.

“We’re getting a lot more of that than we did before the fire,” he said.