A state judge has ruled again in favor of the Sierra Club in its attempt to stop the 5,000-home Koa Ridge development.

Circuit Judge Karl Sakamoto effectively upheld a ruling he made July 19, reversing the state’s approval of the Castle & Cooke project between Mililani and Waipio.

Sakamoto’s ruling, issued July 29, killed what appeared as a last-ditch effort by the state Land Use Commission to keep its approval for Koa Ridge in place.

Still, the judge’s final decision might not be the last legal maneuver in the high-stakes case, which involves a $2.2 billion plan that would transform a large part of Central Oahu’s landscape from agricultural land once planted in pineapple to an urban area with homes, a hotel, medical campus, retail stores, parks and two schools.

Castle & Cooke said it is extremely disappointed by the latest ruling and is evaluating options for moving Koa Ridge forward that include possible additional legal moves.

"We are committed to this project and will pursue our options with the courts and the Land Use Commission," Bruce Barrett, executive vice president of Castle & Cooke Hawaii, said in a statement.

The developer thought it had the go-ahead in October when the LUC voted 6-0 to approve urban development on 768 acres of farmland, including full approval for an initial 3,500-home phase and conditional approval for a 1,500-home second phase.

The Sierra Club, however, contended that one LUC member wasn’t eligible to vote.

LUC rules require six "yes" votes to reclassify land for a different use, which was critical in the Koa Ridge case because three members of the nine-member commission didn’t appear or vote at the October hearing.

The Sierra Club argued that Duane Kanuha, a Hawaii island representative on the commission, shouldn’t have been one of the six "yes" votes because the state Senate had rejected his appointment to a second term.

Kanuha’s four-year term ended June 30, 2009, and the Senate rejected his appointment to a second term on April 26, 2010, by a 14-9 vote. He remained on the commission as a holdover member by Gov. Linda Lingle until earlier this year.

The LUC with support from the Department of the Attorney General determined that the Sierra Club’s objection before the October hearing was without merit. The environmental organization filed an appeal in state court in November.

Sakamoto’s first ruling agreed with the Sierra Club despite Castle & Cooke and LUC arguments.

But a last-minute argument was tossed before the judge by Russell Suzuki, first deputy attorney general representing the LUC. Suzuki contended that disqualifying public officials including LUC members is governed by a section of Hawaii law titled "quo warranto" that precluded the Sierra Club from raising its challenge.

Judge Sakamoto asked for written arguments on the new issue from Suzuki and the Sierra Club and scheduled a hearing for Aug 24. But on July 29 the judge rejected the LUC’s position after reading the agency’s written argument. The Sierra Club hadn’t even filed its response.

Robert Harris, director of the Sierra Club’s Hawaii chapter, said the judge enforced a fair process at the LUC.

"It’s disappointing that the state and Castle & Cooke disregarded concerns about how the public process was handled," he said. "We think this is an important decision."

Barrett of Castle & Cooke said the Sierra Club’s victory was limited to a small point of law.

"The appeal by the Sierra Club was based only on the disqualification of a land-use commissioner, not upon the merits of this project," he said. "It is unfortunate that a technicality will prevent the start of a project that would create jobs, help to stimulate our economy and provide much-needed housing for the residents of Hawaii."

Castle & Cooke had hoped to gain City Council zoning approval soon and start construction next year to deliver initial homes by the end of 2013.

The victory for the Sierra Club is the second time in a decade that the group has reversed approval of Koa Ridge.

A prior version of Koa Ridge planned for 3,200 homes on 760 acres was approved by the commission in 2002.

But the Sierra Club filed a lawsuit arguing that an environmental assessment should have been done prior to any LUC decision.

Castle & Cooke intended to complete the assessment after the LUC decision but before City Council consideration of a zoning change. A Circuit Court judge ruled in favor of the Sierra Club in 2003, and the decision was upheld by the Hawaii Supreme Court in a 2006 ruling that nullified the land-use change.

After revising its development plan and completing an environmental impact statement, Castle & Cooke reapplied for LUC approval in 2008. Hearings before the commission began in January 2010.

Now Castle & Cooke could appeal Sakamoto’s decision to a higher court. First, the developer plans to file a motion asking Sakamoto to reconsider his decision. The developer also could refile its application with the LUC to urbanize the land for Koa Ridge, though it might be prohibited from doing that for one year.