Posted on: Wednesday, April 13, 2005

Sugar mills in Lihu'e, Kekaha purchased

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — Seattle investors have purchased Amfac's old Lihu'e and Kekaha sugar mills through an investment firm, Pacific Funds LLC.

Attorney Jonathan Chun, who represented the buyers, said they are considering offers from outside the country for equipment still on the properties. Chun said he could not name the principals of Pacific Funds.

The sale, from a successor to Amfac, which operated both Kekaha Sugar Co. and Lihu'e Plantation Co., closed in January.

Lihu'e Mill is said to date to about 1850, although the buildings now on the nearly 14 acres between Haleko Road and Kaumuali'i Highway are considerably younger than that. The mill was closed in 2000.

The Kekaha Mill is about 30 years younger and sits on about 11 acres on Kekaha Road. Kekaha Sugar also closed in 2000.

Both mills consist of several large metal buildings. And although much of the equipment at the mills was sold at auction in 2001, a considerable amount remains.

Chun said companies in Africa and the Philippines have expressed interest in some of the milling equipment and electricity generating gear in the mills.

He said Pacific Funds does not have firm plans for the two sites. One potential issue is that more than a century of industrial activity at each site may have left toxic compounds in the soil.

Chun said the owners are "evaluating environmental cleanup costs."

He said the sites could qualify for federal Brownfields assistance as part of their redevelopment.

Reach Jan TenBruggencate at (808) 245-3074 or jant@honoluluadvertiser.com.