The city Tuesday suspended permits issued to developer Jeff Stone to build two single-family houses in Aina Haina after state officials said a historic site might exist or had existed on the site.

William Aila, chairman of the Board of Land and Natural Resources, had sent a letter urging the city to order work stopped at the project site at the end of Hao Street and to require Stone to complete an archaeological inventory as requested by the State Historic Preservation Division.

Stone could not be reached for comment.

Aina Haina community members say recent grading work disturbed a sacred cultural site on the property.

Aila called for a stop order based on information community members provided that suggests a historic site might exist or had existed on the site.

"The permit was not sent to SHPD prior to the issuance thus putting the division in the difficult position of having no opportunity to request an AIS (archaeological inventory survey) be conducted before the project started," Aila said in his letter. "Had SHPD been afforded an opportunity to review the permit, the city could have required that an AIS be done as a permit condition, avoiding the difficult situation we are now in."

George Atta, director designate of the city Department of Planning and Permitting, said the property was not flagged by SHPD and that no records were found in the Planning Department’s files of historic sites of cultural significance on the property.

Stone will have to meet with the SHPD to look at the issues in an attempt to reach compromise or resolution, Atta said.

"If they don’t come to a compromise, then the ball falls back on my court," Atta said. "I would then have to choose between SHPD and the developer."

Atta said he also wants to clarify some issues with SHPD. The grading permit addresses work on 14,000-plus square feet on 9.5 acres Stone owns.

"It was not clear if the (request for an) AIS is for the grading area or for the entire parcel," he said.