A key city official said the Carlisle administration is close to deciding how it will dispose of a 3.5-acre parcel across Kamehameha Highway from Haleiwa Beach Park that has the North Shore community deeply divided.

Jim Fulton, executive assistant to Mayor Peter Carlisle, said Saturday night that it’s possible the city will auction the property off to abutting property owners who are eligible to purchase the "remnant and underutilized" parcels.

The adjacent property owners in this case are developer and former state Sen. D.G. "Andy" Anderson, who wants to put up an 80-room hotel on the site, and Kamehameha Schools, which has indicated it wants to ensure there is parking space for school buses dropping off students at its next-door Loko Ea Fishpond.

"The city has previously stated that they are looking to sell remnant and underutilized parcels throughout Honolulu to reduce the city’s debt," Fulton said.

Asked whether keeping the parcel as parkland as suggested by community groups is an option, Fulton said, "We will continue to evaluate selling properties that we no longer can afford to maintain. There is no budget to create additional parks at this time."

It is possible that the city will auction the property to the highest eligible bidder, he said.

"We could put out an upset price, and the city could obtain bids from abutting property owners."

He said that parties interested in the Haleiwa site "realize it is important to preserve parks" and that both interested landowners have promised to keep at least some of the property as park space. Further, any proceeds gained from the sale would go to the city park fund, he said.

Fulton’s comments to the Star-Advertiser came on the same day more than 100 members of community organization Hui o He‘e Nalu and other groups held a protest objecting to the possibility that Anderson could obtain the parcel.

Mahina Chillingworth, Hui vice president, said the parcel is critical for the recreational needs of the North Shore community, as well as others on Oahu who go there to surf, fish, swim and relax.

The area is used for parking, and the Hui and other community members have committed to clearing and cleaning what they call Haleiwa Beach Park Mauka on their own.

"We officially adopted this park late last year and one of the main functions of that is cleaning and maintaining the park, which is what we’re doing," Chillingworth said. Hui members and others have been maintaining the parcel for the last year, she said.

"The kids are out here protesting, too, because if we keep building hotels, what are we going to have left?" Chillingworth said. "People get away from Waikiki and come to the North Shore to get away from the hustle and bustle."

Longtime Hui member Gabby Kahaulelio said Oahu residents need an area of the North Shore that has ample parking.

"We enjoy the ocean, not just for surfing and relaxing, but for fishing," Kahaulelio said. "The kupuna say, ‘Eh, this is your icebox.’"

The parcels that make up the property were once owned by Kamehameha Schools, formerly Bishop Estate, and other interests. The city condemned the parcels in the 1970s with the goal of expanding the beach park to the mauka side as part of a Haleiwa regional park, plans that have not come to fruition.

Hui members note that in the latest North Shore Sustainable Communities Plan approved by the City Council last year, the parcel in question is designated for park expansion.

Anderson said he can do more for the community if he’s allowed to develop a resort there.

"Being across from the park has no bearing," he said. "It is a remnant parcel that has been sitting fallow and will sit there another 42 years sitting fallow."

Anderson, who owns the building that houses Jamesons By the Sea Restaurant next door, said he wanted only one of the parcels for his project and that it was the city who wants to sell all the parcels as one piece.

Anderson noted that he is prepared to return about two acres for a "public-private" park, as well as construct up to 30 public parking stalls and set aside space for canoe clubs to continue to store their vessels there.

"It’s not like parking is being ignored," he said. "There will be a nice park in place of what is weeds today and the community will be able to do a lot of things with it."

A segment of the community, including the North Shore Chamber of Commerce, supports Anderson’s project because it will bring jobs and visitors to the area.

Anderson also commissioned Qmark Research to conduct a poll in July that found that 63 percent of Oahu residents support his project. A separate poll conducted by an area politician showed 58 percent of the North Shore community support his project, he said.

Kamehameha Schools officials could not be reached for comment.