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The Honolulu Advertiser
Posted on: Sunday, February 10, 2008

Dozens back state plan to buy Turtle Bay land

By Eloise Aguiar
Advertiser Staff Writer

A bill to preserve open space on the North Shore said to be worth hundreds of millions of dollars received overwhelming support from dozens of residents yesterday at the state Capitol.

The measure before the Senate Water and Land Committee calls for the state to acquire Turtle Bay Resort land owned by Kuilima Resort Co.

Gov. Linda Lingle in her State of the State address proposed purchasing the Kahuku resort but has not submitted a bill to the Legislature. Sen. Bobby Bunda, former president of the state Senate, introduced Senate Bill 2423, which calls for the state to acquire undeveloped lands at Turtle Bay Resort, including Kawela Bay and Kahuku Point.

Sen. Clayton Hee said before the hearing that the movement to keep the country rural has grown exponentially in the past few years and the bill shows lawmakers are listening to the people.

It was not clear how much the state would spend to purchase the property, but Hee said it would be far less than the debt owed on Turtle Bay or what the owners say the property is worth.

Kuilima Resort Co. said it has a debt in excess of $400 million.

The city tax assessment at Kawela is $9 million and land next to Marconi Road is assessed at $22 million. No figure has been put on the worth of the hotel resort.

"This is not a $400 million purchase," Hee said, adding that the state can float bonds or develop a partnership of buyers such as what was done for Pupukea Paumalu and Waimea Park.

The committee deferred vote on the bill, but Hee said he intends to pass it. Another hearing is set for 2:45 p.m. Tuesday at the state Capitol, Room 224.

But Linda Smith, Lingle's senior policy adviser, asked that the bill be amended to give the administration maximum flexibility in negotiating the purchase, including placing the entire property on the negotiating table and using private investment or donations, federal funds, special funds, public lands and other assets to acquire the property.

The governor will not negotiate the transaction in the media and she has had a long-standing policy of preferring to negotiate rather than exercise eminent domain, Smith said.

"Some have voiced concerns that Gov. Lingle has not presented a specific plan to purchase the land or describe what will be done with the property," she said. "That is true because she recognizes it should not be her plan, but the community's plan."

Hee said he would like to give the governor a bill that would give her latitude in negotiations but he felt that the Legislature is looking for some results before the end of the session.

If no concrete proposal is forthcoming by then, the "Legislature is inclined to move forward with eminent domain if that's the only available (avenue) to move forward," Hee said.

Nicola Jones, Kuilima Resort's chief executive officer, submitted her comments in writing.

Any discussion must bear in mind that the resort has loans of more than $400 million, 700 employees and under the 1986 agreement with the city and county has community commitments to fulfill, Jones said. The property has approval to develop up to 3,500 more resort units.

Jones said Kuilima Resort does not support any legislation that allows the state to use eminent domain to acquire the resort.

While discussion continues, the resort must "be allowed to continue to process permits and governmental approvals and to take any other steps that are necessary to preserve its entitlement," she said.

Most of the people who testified supported the Turtle Bay acquisition, including the newly formed Ko'olauloa-North Shore Alliance that represented more than a dozen organizations.

The alliance said the state should act now. "Failing to act now may obligate the state to invest billions of dollars later for a new highway to an area that will no longer be rural," it said.

Margaret Primaciao, a Kahuku resident, called for the bill to include land at Kahuku Beach that is slated for luxury homes.

Mark Cunningham, from Defend Oahu Coalition, wondered how many more tourists the island could hold and what their effect would be on the water, roads and sewage.

"Now is the time to put on the brakes or a moratorium on large-scale development until we can answer some of those questions," Cunningham said.

Jim Anthony, of Hawaii Laie Ikawai Association, said his group would be willing to give money to help with the negotiations. It also has hired an attorney and a person who does "socially responsible investment" to offer as part of the community input sought by the administration.

"If (Lingle) reached out into the community, we would be prepared to participate on the formal professional basis," Anthony said. "We would bring our consultants and make recommendation."

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com.


Correction: Robert Bunda is a former president of the state Senate. A previous version of this story about Turtle Bay identified him as president.