A 2,800-acre piece of a Big Island ranch long slated for homes and a golf course near Keala-kekua has been listed for sale after the near-failure of project development partner American International Group Inc.

Two California-based brokerage firms have been retained to sell the development parcel on Hokukano Ranch that has tentative county approval for subdivision into 102 lots of at least 20 acres each, a Hale Irwin-designed golf course and areas for equestrian activity, hunting and other recreation, according to ranch owner Tom Pace.

Pace said AIG's backing unraveled in connection with the federal government's rescue of the insurance and financial services giant in September, so he decided to sell the property instead of trying to find another development partner.

"We're just a family," he said. "It's very hard for us. Maintaining the property has diluted our assets."

Though the development plan known as Hokukano Preserves has a county grading permit dating back to 1990, the project is one of many controversial residential subdivisions allowed on land zoned for agriculture under a lax state law permitting "farm dwellings" in connection with some agricultural activity.

Another such project with a golf course on the Big Island was Hokuli'a, which gained county approval but was derailed during construction by a court judgement after opponents sued. The case later was settled in a move that allowed completion of the luxury home subdivision.

Patricia Tummons, editor of Hilo-based environmental news publication Environment Hawai'i, said there hasn't been much outcry over the agricultural subdivision aspect of Hokukano Preserves because its approval predates more recent controversies such as Hokuli'a. However, she said it's hard to believe Hokukano lot buyers will be farming amid a golf course.

"You're not going to be growing lettuce and wing beans there," she said. "These are martini ranches. There is a lot of community opposition to (the project) still being alive after all these years."

Tummons said more than 700 residents signed petitions opposing the Hokukano subdivision largely over concerns about potential flooding.

Although Pace has sought to develop part of the ranch, he said he has sought to preserve most of his property comprising the 11,100-acre Hokukano Ranch and neighboring 11,490-acre Kealakekua Heritage Ranch about nine miles south of Kailua, Kona.

Pace said Kealakekua Heritage Ranch was once targeted for residential development by developers who proposed an Arnold Palmer-designed golf course and 500 homes.

Pace bought that ranch in 2004, and has arranged to sell a conservation easement that would set aside 9,000 acres in perpetuity for agriculture, reforestation, logging, equestrian and recreation uses. Federal and state government agencies intend to purchase the easement in July for $4 million. Pace said the balance of the land could be subdivided to accommodate about 150 residences.

The two brokerage firms hired to sell the development parcel on Hokukano Ranch suggest that a larger part of that ranch could become a residential subdivision covering 4,450 acres along with 500 acres of agricultural lots and 5 acres of commercial development.

The listing brokers, Wilshire Finance Inc. of Los Angeles and Strand Equity Group of Irvine, Calif., said in a press release that they are seeking buyers for the entire 23,000 acres encompassing both Pace ranches.

Pace said his intention isn't to sell 23,000 acres, but if someone made such an offer he would consider it.

"If someone were to come up with a great amount of money, we might be prepared to keep a (small piece of land) and walk away, but that's not been our intention for the past 25 years," Pace said.

The announcement from the brokerage firms claim the combined value of the two ranches is $130 million. Principals with both firms could not be reached to clarify their statement about the listing.

Pace said he intends to keep the family ranching business alive on Hokukano Ranch, which his father bought in 1987 shortly after moving to Hawai'i.

The Pace family made an early effort to grow and harvest koa trees but without success. Over the decades, cattle and horses proliferated on the property without much management, though in recent years many of the animals have been captured and transferred off the ranch. Today, Pace said he is actively engaged in salvaging 'ohi'a timber, planting coffee and maintaining nearly 2,000 head of cattle.