Big Island mayor extends tax agreement deadline

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — Nansay Hawaii, which once planned a major resort on 450 acres of prime North Kona land, must reach a payment agreement on back taxes by Oct. 1 or face foreclosure in November, Mayor Harry Kim said yesterday.

There have been conflicting reports about the mayor's discussions with the developer, but Kim said yesterday he has granted a single extension from September to November — not two or three.

Kim said "foreclosure always has been our last option" on the nearly $4 million package of taxes, penalties and interest. He said none of the past due bills will be discounted in any way.

Kim met privately last week with Philip Ho, developer of the site owned by Kennedy-Wilson of California. The Kennedy-Wilson representatives did not attend the meeting but Kim said Ho told him he was representing the owners.

"That's the fuzzy part," the mayor said yesterday.

Kim has come under some criticism over his handling of the delinquency — the largest in Hawai'i County history. Kona's West Hawai'i Today newspaper has filed a lawsuit in circuit court seeking release of documents in the dispute.

"We need to resolve this and we will," said Kim who has based his 2001-2002 budget on collecting the back taxes. The site is appraised at more than $16 million. When the development was approved in 1988, the value of the project in the area also known as "The Pines" was put at $360 million.

Kim said he has continued to negotiate but with a firm understanding he will not waive anything and that the tax bill must be eliminated within three years under whatever plan Nansay presents. Kennedy-Wilson International, of Beverly Hills, Calif., has not commented publicly on the dispute.