Posted on: Thursday, September 20, 2001

Big Island settling tax dispute with Nansay

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — County officials are wrapping up a settlement with owners of the Nansay resort project in Kona, who owe more than $4 million in property taxes, penalties and interest.

The main outcome will be 17 quarterly payments of $277,600 starting in December. The agreement with Kennedy-Wilson of California, owner of the former Japanese venture that was once proposed as a $360 million resort and golf development, will avert a scheduled foreclosure auction.

In anticipation of collecting $4 million-plus in delinquent taxes, Mayor Harry Kim included the amount in the county's $192 million operating budget for the current fiscal year. Now, the mayor is faced with the prospect of a budget shortfall that he said likely will be compounded by economic fallout from the Sept. 11 terrorist attacks.