Local developer Stanford Carr will take over the management of the Turtle Bay Resort and the controversial plan to build five new hotels with 3,500 rooms and condominium units on O'ahu's North Shore.

The owner of the property, Kuilima Resort Co., also said it has reached an agreement to restructure a $400 million loan with its key lenders Credit Suisse and Wells Fargo & Co.

Carr replaces Los Angeles-based Oaktree Capital Management as Kuilima's interim management officer and will continue to seek investors for the 848-acre property, whose development has sparked opposition from community leaders and has prompted Gov. Linda Lingle to seek a state buyout of the land.

A lawsuit was filed by Credit Suisse against Kuilima Resort Co. in December for non-payment of its $285 million loan. The settlement allows the company to move ahead to find prospective investors, said Nicola Jones, CEO of Kuilima Resort Co.