A fledgling state program is leveraging efforts to preserve Hawai'i land valued for natural and cultural resources by helping nonprofits and local government agencies buy private property.

The 2-year-old initiative called the Legacy Land Conservation Program hasn't been high-profile, but it quickly and relatively quietly is emerging as a powerful land preservation force that so far has committed about $10 million to help acquire nearly 2,800 acres on five islands.

Land targeted for purchase includes a former Wai'anae chicken farm that would expand an educational nonprofit organic farm, and coastal Kaua'i property that would be protected from residential development presently allowed under the "farm dwelling" loophole in state law.

"Hawai'i real estate is under siege," said Gary Blaich, a Kaua'i psychiatrist who is also president of land conservation organization Kaua'i Public Land Trust. "It's great that more local money is getting put aside for conservation."

Under Legacy Lands, nonprofit and county applicants must secure matching funds from elsewhere to supplement purchases, and the state gets back a share proportional to its grant if land bought under the program is ever resold.

Blaich and other land preservation supporters say the Legacy Land program is an important new resource for leveraging relatively scarce private contributions, federal grants and county funds to protect endangered Hawai'i real estate.

According to the Sierra Club and other land conservation groups, Hawai'i was missing out on federal matching funds because of a lack of dedicated local funding for land protection.

There has been some debate over granting private nonprofits state money to buy land that the state could otherwise buy for preservation, while others have questioned whether money for the program could be better spent on different pressing needs. But in 2005, the Legacy Lands Act became law.

Program funding comes from an increase in conveyance tax rates for high-value homes passed as part of the Legacy Lands Act, which also generated more money for affordable housing programs.

BIRTH OF PROGRAM

Gov. Linda Lingle in 2006, a year after the act was passed, asked the Legislature to redirect Legacy Lands money to an affordable housing fund. But program funding survived, a program coordinator was hired and eight commissioners were appointed to review and recommend land acquisition plans in a competitive process.

Groundwork for the commission was laid largely by the state Department of Land and Natural Resources, helping commission members get a quick start after being appointed last May following a late 2006 initial application deadline.

Members grappled somewhat with how to judge proposals and align selection criteria with application information. Another concern was that the commission, which is one member short of its full nine, could better represent constituencies such as Native Hawaiians.

Also, limited program exposure may have led to relatively few applicants — 10 in the first round and 12 in the second round — submitting plans.

Program leaders continue to work to promote the program, and have addressed many early issues.

"The (commission) was able to get on its feet quickly thanks to the assistance of state agencies, an experienced chairperson and a hardworking group of members," said program coordinator Molly Schmidt.

Annual program spending is estimated at about $4 million, though funding last year and this year is closer to $5 million because the program began accruing money in 2006.

The first round of grants were approved last June, committing $4.7 million to help acquire six parcels totaling 1,863 acres on O'ahu, the Big Island and Maui.

The awards went to three nonprofits, two state agencies and Hawai'i County.

Award amounts ranged from $154,000 to $1.5 million, though awardees also secured a combined $4.6 million in matching federal, county and private grants to assist with planned purchases of land ranging from six acres to 1,336 acres.

All of the purchases are in the process of being completed.

Jill Olson, executive director of the Kona Historical Society, said the Legacy Land program is allowing the nonprofit to eliminate potential future danger of it losing a land lease for the historic D. Uchida Farm on which it operates the Kona Coffee Living History Farm.

"It's just a godsend," she said of the program. "We are so grateful because (the farm) will be secure forever."

The society was granted $301,000 to buy the 5.5-acre farm from the local Greenwell family, which is gifting the $1.7 million balance of the property's fair market value to the nonprofit.

Last month, program commissioners recommended five more projects for $5.1 million in funding to help buy 906 acres on five islands.

BLNR DECIDES

Under program rules, a final decision is made by the Board of Land and Natural Resources, which comprises seven members mostly from the private sector, after consultation with the Senate president and speaker of the House of Representatives. It's also up to the governor to approve the board's decision.

The five recommended projects are proposed by four nonprofits and Hawai'i County and seek parcels from 11 acres to 551 acres.

Grant amounts sought range from $700,000 to $1.5 million, and would be matched by a total of $14.3 million from federal, county and private grants to complete proposed purchases.

Among the recommended projects is 20.5 acres next to Kaua'i's Kilauea National Wildlife Refuge. The parcel is one of five in the area that a Utah developer positioned for sale to buyers for homes as long as there was some affiliated farm use of the property.

To date, one buyer who paid $700,000 for a 3-acre parcel in 2003 has built a home valued at $252,000, according to property records. Another buyer paid $1 million in 2005 but has not built on the property.

Kauai Public Land Trust acquired the two other sites in the last couple of years with a federal grant and a donation from the developer, according to Blaich, the trust's president who said a Legacy Land grant would make preserving the last piece possible.

"We were grateful for the opportunity," he said.

A final decision on commission recommendations is expected mid-year followed by the next application round with an application deadline toward the end of the year.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.