The city has brokered a deal with a private landowner that will allow agricultural workers in a shuttered pineapple plantation to stay in 115 homes.

The future of workers living on the 119-acre Kunia Plantation Village had been in question since the Del Monte Plantation closed down its pineapple operation. The company announced the closure in February 2006 and in November 2007 laid off 551 employees.

Under the agreement, the James Campbell Co., which owns the property, will transfer the village to the nonprofit Hawaii Agriculture Research Center for $1. The center agreed to maintain in perpetuity the plantation homes as affordable rentals for agricultural workers and retirees, the city said.

In exchange, the James Campbell Co. will be able to count the 115 homes toward its quota of 1,230 affordable housing units for its planned Makaiwa Hills residential development, which is currently going through the city zoning process.

Dean Okimoto, president of the Hawai'i Farm Bureau Federation, said the deal will go a long way toward advancing O'ahu's agricultural industry.

"This is a key piece for us to keep the agricultural corridor in Kunia productive," said Okimoto, speaking at a news conference at Honolulu Hale yesterday. "We are fighting to keep labor, especially in today's economy, and this (deal) helps keep our workers and all that land in Kunia in agriculture production."

Campbell CEO Steve MacMillan said the deal was complex and comprehensive but "is the most affordable and seamless way to help the residents of Kunia Village."

Under the agreement, the company also will pay for $1 million in improvements to the village's fire safety infrastructure. The city also will receive nearly 20 acres of land to accommodate rail transit development, the construction of two day-care centers and a new Makakilo fire station.

SOME TO BE DISPLACED

Despite the deal, about a third of the current village residents will be forced from their homes, as the units will be available only to current agricultural workers and industry retirees.

ILWU Local 142 President Fred Galdones said the deal was not a "perfect solution" and asked the city, state, and private industries for help finding jobs and homes for current residents who won't be allowed to stay.

He said the union has been working to find housing for its members since Del Monte ceased operations.

"Many of the current residents will be displaced because they are no longer working in agriculture," Galdones said. "These families have worked long and hard, and they truly deserve the housing security this agreement will help provide."

When Del Monte left in 2006, workers living in the village paid roughly $300 a month in rent and retirees paid between $700 and $800 a month.

The deal is pending approval from the City Council and the Planning Commission.

Mayor Mufi Hannemann said, "The city has been working closely with the Campbell Co. and ILWU since Del Monte announced the closure of its operations in Hawai'i in 2006. I am pleased that we are able to preserve a significant part of our Island history and support our vital agriculture industry.

"I'm hopeful that the Planning Commission and City Council will recognize the merit of this important plan and approve it."

The 4,100-home Makaiwa Hills development will be mauka of Farrington Highway from Honokai Hale and on the hill to the west of Makakilo.

CAMPBELL PLANS

The James Campbell Co.'s development plans also include the Kapolei West residential development — 2,400 homes — and Kapolei Harborside, a light industrial and business park.

The projects are already designated for development by the state Land Use Commission, but they require zoning approvals from the City Council.

As part of the development, the company is offering: