A proposal to build a canoe hale and park could end the controversy over what to do with eight city-owned parcels in Haleiwa.

City Council Chairman Ernest Martin said he recently met with Mayor Kirk Caldwell to request removing eight parcels, totaling 3.4 acres, from the city’s list of underutilized property for the project, meaning the property would not be sold.

The preservation-zoned parcels have been the center of controversy since 2010, when developer D.G. "Andy" Anderson introduced his conceptual plan to the North Shore community to construct an 80-room boutique hotel next to his property where Jameson’s restaurant is located.

The city wanted to sell the parcels because they were no longer considered viable. Kamehameha Schools, which owns land adjacent to the parcels, also expressed interest in acquiring the land to create a cultural park near its Loko Ea Fishpond.

The city was to allow Anderson and Kamehameha Schools to bid on the land, but the City Council’s Budget Committee deferred action in June 2012 on approving the sale after complaints that the sale shouldn’t be limited to two bidders.

The Save Haleiwa Beach Park Coalition opposed the sale of the parcels, contending they should remain zoned as preservation land. The coalition filed a lawsuit against the city last year to stop the sale.

Martin wants the city to release $500,000 in the fiscal year 2013 budget for the planning, design and construction of the canoe hale. A passive park and public parking space to supplement Haleiwa Beach Park across Kamehameha Highway is also part of his vision for the area.

City spokesman Jesse Broder Van Dyke said Caldwell told Martin that he is open to the idea. "The mayor has since met with some of the stakeholders in the area who asked for time to consider it and confirm some details. So it is still under consideration at this time," Broder Van Dyke said in an email.

Martin said adding a canoe hale and passive park will complement Haleiwa Beach Park. More than 40 years ago, there was an understanding the city would develop the remnant parcels into a park. The parcels have remained undeveloped for 45 years.

The area is used for parking by the community as well as canoe clubs to store their vessels and trailers. Hui o He‘e Nalu adopted the site two years ago and has been maintaining the area it calls Haleiwa Beach Park Mauka.

Martin said he hopes the Save the Haleiwa Beach Park Coalition will withdraw its complaint against the city if the administration approves removing the parcels from the surplus property list. Attorney Jim Bickerton, who is representing the group, could not be reached for comment.

Coalition member Larry McElheny, who has lived on the North Shore for almost 45 years, said he supports Martin’s proposal, describing the parcels as "priceless, irreplaceable and public land that we have to treasure and preserve."

Thousands of residents and visitors head to the North Shore to enjoy the open space and public parks. "As the island becomes more and more populated, we’re going to need more parks, not fewer," he said. "Let’s do what we can to enhance the public parks so residents and tourists alike can enjoy the special qualities of Oahu’s North Shore and Koo-lauloa" (the island’s northeastern district).

Anderson said he is waiting to see what Martin comes up with in his proposed plan. Along with his plans for a boutique hotel, Anderson said his plans included 2 acres designated as a "private-public park" as well as public parking stalls and space for canoes.

Kamehameha Schools spokesman Kekoa Paulsen said Martin’s proposal is a "win-win" solution because the land would continue to be available for public use and compatible with Kamehameha’s vision for the fishpond. Paulsen said the concern was access to the fishpond, where educational workshops are held for students and community groups.