Land agency seeks 3 properties

A Hawaii island kiawe forest, a Wai­ma­nalo golf course and farmland on the Ewa Plain are the first pursuits of a quasi-public state agency created last year to optimize the use of state lands and revenue from them.

The Public Land Development Corp. is proposing to gain control of the three land holdings from the state Department of Land and Natural Resources.

The development agency envisions developing the Ewa farmland, restructuring a lease with the owner of Olo­mana Golf Links and protecting the kiawe forest from private development.

The three initiatives are the first taken up by the agency, which is accepting proposals from the private and public sector.

Lawmakers led by Sen. Dono­van Dela Cruz (D, Kaena-Wahiawa-Pupu­kea) created the Public Land Development Corp. largely to increase revenue from DLNR land — especially small boat harbors — and reduce the department’s reliance on taxes.

Part of the Public Land Development Corp.’s mission also allows development of other state land, including school properties, and optimizing state property for environmental and social benefits.

Lloyd Haraguchi, the agency’s executive director, selected the three initial prospects that reflect diverse ideas he said are consistent with the Public Land Development Corp.’s aims.

The development agency held a public hearing Thursday to discuss seeking approval from DLNR’s board of directors to transfer control of the three land holdings. The agency’s board deferred a decision.

If the board advances the proposals, DLNR’s board would hold its own public hearing, and if approved, the plans would go back to the Public Land Development Corp. for a final board vote.

Some observers at Thursday’s meeting raised concerns that proposals were being considered before the agency has finalized administrative rules laying out criteria for projects.

“You’re proceeding forward without knowing if you should be proceeding forward or not,” said Robert Harris, executive director of the Sierra Club Hawaii Chapter.

The agency has been watched closely by some environmental and cultural organizations with an especially critical eye because the Public Land Development Corp. is exempted from land use and zoning regulations.

John Bond, a historian and Ewa resident, put it bluntly at Thursday’s meeting: “We don’t trust what you guys are up to.”

Ewa Beach resident Glenn Oamilda and Maka­kilo resident Kioni Dudley vowed to fight the Public Land Development Corp.’s efforts to develop the Ewa land it is pursuing.

The Ewa property comprises four parcels totaling 168 acres. Much of the site is adjacent to land slated for the 11,750-home Ho‘o­pili community by developer D.R. Horton’s Schuler Division, while another part is bisected by the city’s planned rail line.

Haraguchi said the area, which is leased to farmers, has prime development potential and that he is

talking with the city about possibilities.

“There is some definite development potential out there,” he said.

In Waimanalo, Hara­gu­chi said an affiliate of Pacific Links Hawaii, which bought Olo­mana Golf Links in May for $4.5 million, wants to restructure its lease for the state land under the 18-hole course to smooth the way for investing in renovations.

Pacific Links has 20 years remaining on a 65-year lease, but DLNR can’t extend the term, Hara­gu­chi said. Pacific Links also is seeking to adjust greens fee restrictions under its lease. The Public Land Development Corp. would not be bound by DLNR rules and could seek to enhance lease revenue, which is about $145,000 a year for DLNR.

On Hawaii island an organic honey producer wants a long-term lease for 545 acres of largely kiawe forest along the coast in Puako.

Richard Spiegel of Volcano Island Honey Co. has leased nine acres in the forest for 30 years under month-to-month permits. Spiegel is concerned about private development of the area dominated by 60-foot trees, and said DLNR won’t give him a long-term lease for the 545-acre property his bees use to make honey.

“This is prime critical habitat and it needs to be preserved,” he said.

Haraguchi said a bigger lease for Spiegel won’t bring in significantly more money for the state, but is a worthy project.

Besides the three proposals taken up by the agency, a bill passed into law this year gives the Public Land Development Corp. control of land surrounding Hono­ko­hau Boat Harbor in Kailua-Kona. The land was previously managed by DLNR. Hara­gu­chi said his agency will look at development that could include expanding the harbor as well as residential and commercial development.

DLNR previously pursued private development around the harbor under a plan intended to generate millions of dollars for the state, but the deal blew up largely because of environmental and zoning issues.

DLNR offered 350 acres at Hono­ko­hau for lease via competitive bid, and selected Atlanta-based Jacoby Development Inc. in 2004. Jacoby integrated 200 acres of adjacent state land and proposed a $2.2 billion resort with 700 hotel rooms, 1,800 time-share units, retail and 800 boat slips.

Jacoby pulled out of its development agreement in 2008 and criticized DLNR for not helping more with government approvals. DLNR told Jacoby it provided reasonable assistance where it could, and previously noted that obtaining approvals was the developer’s responsibility and something that might make a project challenging if not impossible.