WAILUKU — Maalaea Small Boat Harbor is set to receive almost $30 million in long- and hard-fought state and federal funds to repair its decrepit facilities and infrastructure, according to The Maui News.

The state, through the Legislature and Gov. Linda Lingle, is dedicating $10.9 million toward the project as part of a greater effort to improve small-boat harbors across Hawai'i.

The Federal Transit Administration is matching the state with another $18.6 million for improvements to everything from reconstruction of the ferry terminal building to installation of sewage pump-out stations. Engineering is already under way and construction should conclude in 2011, according to a Governor's Office news release issued yesterday.

Jeff Kahl, owner and captain of the Piper sport-fishing boat, said he's had his charter fishing business at Maalaea for 25 years. He's never seen a significant improvement made there in that time. However, plans to repair the harbor have been talked about for 20 of those years, he said.

"It's something that has to be done," Kahl said. "I'm glad Governor Lingle stepped up. It's so long overdue. Unfortunately, it will impede business and make our jobs harder. But I've been all over the world, and this is one of the worst harbors I've ever seen."

Those familiar with Maalaea harbor said it's also one of the most profitable small-boat harbors in the country. Maalaea has about 40 commercial permits for humpback whale watching, charter and commercial fishing and for boats taking snorkelers to Molokini. The Maui-Lanai ferry also uses the harbor.

The Governor's Office stated that the harbor improvements will increase ridership of the struggling ferry and reduce congestion at Lahaina Small Boat Harbor. Maalaea and Lahaina are the only marinas for private boat owners to tie up to slips on Maui.

"Ongoing investment in the repair and modernization of our small-boat harbor infrastructure will ensure the facilities are safe for boaters and commuters, and that our fragile marine environment is protected," Lingle said.

Governor's Neighbor Island Community Advisory Council Chairwoman Madge Schaefer is among those who have pushed for the improvements at Maalaea for years.

"This harbor is a little gem that was ignored for so long it was really a shame," Schaefer said. "The governor heard what people had to say on Maui, and I think this is wonderful for the tourists and all the businesses at Maalaea."

Department of Land and Natural Resources Director Laura Thielen said the small- boat harbor improvements are not related to the U.S. Army Corps of Engineers' controversial plan to extend the existing south breakwall as part of a plan to expand Maalaea to accommodate several hundred additional boat slips. State-hired crews will be working within the harbor's existing layout, she said.

Opponents of the breakwall expansion are supporting the harbor upgrade.

"We have argued for years that the harbor repairs should not be held hostage until the plans for expansion are resolved," said Lucienne de Naie of Save Maalaea, a group that believes the Army Corps' expansion would ruin surfing and coral reefs. "We have great sympathy for the users down there who have to deal with a total lack of facilities. They often have no electric or water pressure. Everything is make-do, falling down and Band-Aided together."

Steve Knight, vice president and chief executive officer of Expeditions Corp., said the Maalaea harbor improvements could mean a boon to his business.

He added that the state wouldn't have received the $18.6 million in federal money if his company hadn't started running the Maui-Lanai ferry out of Maalaea in October. Expeditions has been operating out of Lahaina for 10 years to the Manele Small Boat Harbor. That island also recently received millions in federal funding for repairs.

But the slowing tourism economy and rising fuel prices have forced Expeditions to ask the state Public Utilities Commission for approval to raise its rates and reduce service from Maalaea from four days a week to just weekends, Knight said. Hopefully that will only be temporary, he added.

"I think it's very important for the state to do whatever it can to help Expeditions," Knight said. "Without us operating out of Maalaea, they would lose their funding and have to pay back whatever they spent."

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