Residents of Poamoho Camp received some good news yesterday when it was announced that a local bank has lent developer Peter Savio $2.6 million to acquire the camp's land and allow families to continue living there.

First Hawaiian Bank announced the loan to Savio's Hawaiian Island Homes Ltd., which will acquire 92 acres from the George Galbraith Trust. The land includes the camp's 34 acres.

Savio said he will renovate the 63 plantation homes and sell the camp to residents at "well-below market price." It was not known what that price would be, and Savio was not available for comment yesterday afternoon.

In January 2004, nearly 300 former and current Del Monte plantation workers living in Poamoho Camp were told that they would be evicted on June 30 of that year because the company was not renewing its lease on 2,200 acres of Galbraith land. The trust is set to terminate in 2007 and trustees said they were not interested in maintaining the homes and becoming a landlord.

Residents feared they would be left homeless because many said they could not afford housing elsewhere. In early June 2004, Savio stepped in and arranged to extend the leases for the residents and announced he had reached an agreement in principle with the trust to buy the land under and around Poamoho Camp.

At the time the plan was announced, representatives with the International Longshore and Warehouse Union Local 142, which represents the pineapple workers, characterized it as "unprecedented," but said they were hopeful the plan would work.

Yesterday, a union official praised First Hawaiian Bank for stepping forward to help.

"When the union first received news of the threatened closure and demolition of Poamoho in 2004, we were able to work with our members, elected officials, Peter Savio and many others in the community to stop the evictions," said Fred Galdones, ILWU president. "We are happy that First Hawaiian Bank has joined the effort to save this truly historic camp."

Savio said he will limit his profit to 5 percent of the sales price of the homes. He also said the land not occupied by the camp will be sold and the proceeds used to reduce the price of each home.

Reach Curtis Lum at culum@honoluluadvertiser.com.