There’s no agreement on price yet, but more details have emerged about the state’s proposal to pay the owner of Turtle Bay Resort to protect part — but not all — of the North Shore property from development.

The potentially $40 million deal advocated by Gov. Neil Abercrombie would preserve nearly three-quarters of the land marked for resort expansion — or 610 acres out of 852 acres — and prevent the development of 750 homes.

However, two new oceanfront hotels with a combined 625 rooms would still be possible.

Supporters of the plan, including preservation-minded community groups, say the contemplated deal won’t totally prohibit expansion of the resort, but still produces an invaluable public benefit by preserving a big portion of the area’s unspoiled shoreline.

"I think we have an opportunity before us and an obligation before us to ensure future generations experience this unique and special part of Oahu," said Doug Cole, executive director of the North Shore Community Land Trust. "We’re really excited."

Gil Riviere, president of the organization Keep the North Shore Country, said the proposed deal is a good one.

"Some people may question if it’s worth $40 million," he said. "Well, what’s the alternative? Having a gridlocked highway and an overbuilt resort? I can imagine 20 to 30 years from now, people will look back and say, ‘Wow! What a deal.’ I think we’ll see that preserving the coastline will be worth the money."

Abercrombie included $40 million in general obligation bond spending for the preservation initiative in his proposed state budget supplement announced Monday.

The state’s effort to broker some kind of preservation deal arose as an alternative to a bill introduced in the Legislature earlier this year by Sen. Clayton Hee (D, Heeia-Laie-Waialua) calling for condemning land planned for resort expansion if an amicable transaction could not be reached.

A five-member working group made up of state officials and preservation advocates engaged in talks with Turtle Bay asset manager and operator Replay Resorts Inc.

Talks focused on purchasing a conservation easement that prohibits development instead of a land purchase because the resort owner is unwilling to sell land, according to a Nov. 30 report produced by the working group.

The working group and Replay settled on a plan that would restrict development to 130 acres adjacent to the existing 443-room hotel, an area that includes stretches of beachfront on both sides of the hotel and is the same area where Replay intended to build two hotels.

Another 112 acres are already developed with the hotel, condos and other features of the resort.

Preserved from development would be two sites comprised of 69 acres largely fronting Kawela Bay and 541 acres mostly occupied by the resort’s two golf courses on the Kahuku side of the property where Replay intended to build 750 residential units.

Replay expects that golf operations will continue on the Kahuku-facing parcel along with existing uses of the Kawela Bay parcel that include horse rides, hiking trails and other activities.

The state and Replay retained two local appraisal firms — John Child & Co. and The Hallstrom Group — to estimate the value of the two sites for preservation. Those appraisals are apart by a "significant but not insurmountable" amount, the working group’s report said.

The value for the two easements estimated by John Child & Co. for the state is $31.3 million to $38.3 million. State officials and Replay declined to reveal the resort’s appraisal made by The Hallstrom Group.

The state is hopeful that Replay will accept a lower price for the easements given that the developer would save money by not having to build infrastructure such as roads and sewers on the preservation sites, the report suggested. The state hopes to get a definitive agreement that could result in a deal being completed next year.

Under state law, paying more than fair market value for the easements is prohibited unless justified by an appraiser or the attorney general, the report noted.

Drew Stotesbury, resort operations and development CEO for Replay, said in a Dec. 9 letter to Abercrombie and Hee that he is "cautiously optimistic" that efforts with their support and support from the Legislature will produce an outcome that any reasonable person would endorse.

"We have come a long way under the leadership of your working group and the diligence of (Department of Land and Natural Resources) staff," he said in the letter.

Stotesbury’s letter said two new hotels would cost about $350 million and generate $12 million in annual state tax revenue. That revenue could be used to underwrite the cost of the easements, he suggested.

Stotesbury also said that 160 units of affordable housing, which was part of the resort’s preferred development plan, could still be developed if desired.

Zoning for Turtle Bay allows up to 2,500 hotel units and 1,000 residences. Replay moved ahead with a reduced plan with 650 hotel units and 750 residences in an effort to compromise with some area residents who opposed the full-scale build-out, though significant opposition to the scaled-back plan remained.