Posted on: Saturday, June 9, 2001

Land board approves commercial logging on state land

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — The state took a major step toward a commercial forest products industry — something talked about for decades — when the Board of Land and Natural Resources yesterday approved an 8,875-acre license to a Mainland firm to log trees from the Waiakea Timber Management Area.

The decision came on a 5-0 vote of the board after almost seven hours of testimony on the controversial proposal to log off the trees that the state began planting in 1959 with an eye toward starting a forestry industry on the Big Island.

More than 40 people testified on the proposal, which also was discussed for hours April 12 and then continued to yesterday. Much of the testimony focused on jobs and the environment.

Most business interests, foresters and hunters endorsed granting the license, but many Hamakua residents oppose any timber industry, whether it be wood chips — such an operation was shot down in 1997 — or the manufacturing plant that Tradewinds Forestry Products LLC plans to build on the Ha makua coast.

Tradewinds plans a $25 million plant, and its operation would create about 300 jobs. Following yesterday's decision by the state board, logging can begin once the plant is in place and has been approved by federal and state regulators. That is expected to take three years.

Yesterday, supporters and opponents were about evenly divided, but several who urged that the license be granted also suggested changes and close scrutiny of the project.

Mayor Harry Kim, speaking through managing director Dixie Kaetsu, said a timber industry is inevitable and that manufacturing is preferred to wood chipping. He urged caution, calling for planning to deal with highway and traffic impacts and to minimize environmental concerns. He asked that fire and erosion risks also be addressed.

"I believe this industry can be a viable one if we work toward an industry that produces higher-value products," he said.

Tradewinds partner spokes-man Gordon Boyd said the company, a joint venture of companies in Oregon and Washington state, intends to manufacture plywood and veneer sheets for home builders.

There was more opposition from Hamakua than from Hilo and Puna near the logging site off Stainback Highway, five miles southeast of Hilo.

Dr. Fred Holschuh, a Big Island member of the board, left the hearing before the vote was taken, but said he would have felt comfortable voting for it because "we desperately need jobs in Hamakua. I am not for trashing Hamakua," said the Honoka'a resident. He opposed earlier wood-chip operations.

The Friends of Hamakua, which successfully blocked the proposal for a wood-chip operation by Ogi Paper Co. of Japan in 1997, were divided yesterday.

County Councilman Dominic Yagong, who represents the area, spoke in favor of approval. He said the Tradewinds proposal is far better than Ogi's and would create jobs needed by former sugar workers now driving long distances for part-time jobs.

However, a former ally said he feared the Big Island may be headed for the "darkest period of Hawai'i history." Yasha Pulin, a Honoka'a businessman, is concerned by pollution, noise and heavy truck traffic. He called the license terms too lenient and said conditions were vague.

Several witnesses criticized the return to the state in royalties and changes made from the request for proposal in 1999 to when the license was negotiated with Tradewinds.

One recurring issue was over the decision not to require an environmental impact statement for the Waiakea logging. The board decided, after a closed meeting with its legal counsel, that the environmental assessment —a less rigorous review — was ample.

The board also turned down a request for a contested case hearing by Sid Quintal of Mid-Pacific Sawmill, who said the Waiakea land should be be available to others, including him and his partner, Bob Marr.