Kauai County has acquired three parcels in its master plan to expand Hanalei Black Pot Beach Park.

The 2.5-acre site includes a canoe hale, restroom and boat washdown facility near a boatyard at the mouth of Hanalei River.

In condemnation proceedings against owner Mike Sheehan and Hanalei River Holdings Ltd., the county agreed to pay $5.89 million.

While Sheehan said he supports the county’s efforts to expand Black Pot Beach Park, he said the money doesn’t fully cover improvements he made to the property, including a water filtration system in the washdown facility that prevents pollutants from entering the river. The canoe hale also comes with a certified kitchen and office space.

Attorney Richard Wilson, who is representing Sheehan, estimated the improvements at more than $1 million.

"They said we’re not going to pay for the improvements," said Wilson, adding the matter will go to a jury trial if an agreement is not reached.

Kauai County spokeswoman Beth Tokioka said Sheehan disagreed on the estimated appraised value of the parcels, which includes improvement costs. Tokioka said it’s undetermined at this time whether the facilities will be incorporated into the master plan of the expanded beach park.

Mayor Bernard Carvalho Jr. will hold a community meeting at 6:30 p.m. Wednesday at the Hana- lei Elementary School cafeteria to discuss the master plan.

About 40 recreational boaters as well as a half-dozen businesses had been using the boatyard as a base of operations for surf lessons, stand-up paddling lessons and boat tours. Canoe clubs from the outer islands also use the boatyard to moor their boats and trailers during the summer for canoe races, according to Sheehan.

Commercial businesses were ordered to vacate the area Wednesday, and no-trespassing signs were posted. The site will be closed to the public for safety reasons until further notice.

Sheehan said the businesses will be able to operate from adjacent propertieshe owns.