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The Honolulu Advertiser

Posted on: Saturday, September 4, 2004

'Final' Hokuli'a offer on Web site

 •  Web site inflames Hokulia dispute

By Dan Nakaso
Advertiser Staff Writer

The developers of the stalled Hokuli'a luxury development on the Big Island were willing to help create affordable housing, set up separate cultural and community foundations, speed up completion of a long overdue bypass highway, reduce density and open up a once-planned gated community — among other concessions — to get their 1,550-acre project back on track.

Hokuli'a officials took the unusual step this week of posting their "last, best and final offer" on their Web site — www.hokuliaupdate.com — after mediation broke down between the developer and project opponents.

The company says it wanted to show how far it was willing to go to appease community concerns. Opponents of the project — who won a court battle a year ago that forced the developer to halt construction — said the posting damages hope for future mediation.

In addition to previously known efforts to give up 270 acres of land for public use and promises to preserve Native Hawaiian burial sites, the final offer shows that Hokuli'a officials were willing to concede many points to environmental and Native Hawaiian groups opposing the plan.

The extra costs would have added up to "a couple of hundred million dollars," said Hokuli'a CEO John De Fries.

"The reason we are compelled to expand that investment is to get the project remobilized," De Fries said.

But Kona attorney Robert D.S. Kim, who represents four plaintiffs in the so-far successful effort to stop Hokuli'a, said posting the developers' offer damages trust.

"I still remain hopeful that we can continue to discuss settlement," Kim said. "But their action in doing this for public-relations value is in essence driving the nail in the coffin for any settlement. ... This makes it difficult to send them a letter saying I'm interested in talking about these issues if I'm worried about finding it on their Web site.

"Confidential settlement discussions should not be released to the public. When people try to gain advantage in releasing their side of what was discussed, it causes a chilling effect. If there were ever any opportunities to settle down the road, nobody is going to be willing to talk."

In July, a mediator declared an impasse in settlement negotiations, which cleared the way for Big Island Circuit Judge Ronald Ibarra last month to affirm his September 2003 ruling to halt work on Hokuli'a.

On Tuesday, Ibarra will consider two more motions asking him to reconsider. If Ibarra denies the motions, De Fries said his side will appeal to the state Supreme Court.

Alan Murakami, an attorney for the Native Hawaiian Legal Corporation, who represents Hokuli'a opponent Protect Keopuka Ohana, said the posting invites "statements and counter statements about what may or may not be said."

"What is really happening is that they are diverting attention from irresponsible developments of this sort, which have caused major cultural damage to irreplaceable historic properties, including ancient Hawaiian burial sites that have been disturbed from centuries of resting in peace.

"This kind of tactic diverts attention from many, many major issues, such as why this construction should ever have started and the illegal use of land under state land use law ... while detrimentally and seriously impacting cultural resources that Hawaiians find very important."

Since posting Hokuli'a's last offer, De Fries said he has received at least 100 e-mails and 50 phone calls — all supportive.

De Fries said many people said they had no idea that Hokuli'a officials were to go so far.

"The responses have been so far unanimous in support," De Fries said. "People now realize the amount of work that went into our offer."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.