With North Shore business and environmental leaders looking on in approval, Gov. Linda Lingle last night signed a bill into law authorizing the state to acquire the Turtle Bay Resort and keep some of the undeveloped land in preservation.

The bill signing at a North Shore Chamber of Commerce banquet in Waimea Valley was a ceremonial yet important moment for an idea that began as a surprise in the governor's State of the State speech in January.

A working group appointed by Lingle has been meeting with several potential U.S. and international buyers for the resort's hotel and golf courses. The confidential discussions so far involve only modest development or no new development within the resort's footprint.

The Lingle administration wants private investors to purchase the developed land and operate the 880-acre resort while the state acquires and protects Kawela Bay and Kahuku Point.

The working group, according to an account from its last meeting, has also emphasized to potential buyers the importance of maintaining existing union contracts with resort workers and honoring the cultural aspects of the land.

"Preservation successes here on the North Shore show how we can create a sustainable model working by working together," Lingle told the audience last night. "You have shown the entire state that it's possible."

Stanford Carr, a local developer close to Lingle, took over last month as the resort's manager and will help guide future development. Several community leaders had opposed a plan to build five new hotels with 3,500 rooms and condominium units and many have welcomed the state's intervention and desire to preserve some of the land.

Lea Hong, Hawaiian Islands program director for The Trust for Public Land, said the idea for the state to acquire the land is moving forward surprisingly quickly.

"If you asked me in January where I thought we would be in June, I'm actually stunned at how quickly things have moved," Hong said. "Everybody on the working group is working very hard. The acquisition committee is working very hard. And they have received a number of very credible offers.

"I really think this can be done."

Lingle has said she would likely call state lawmakers back into special session to review the terms of any proposed deal. "The major financial burden will not fall on the taxpayers of Hawai'i," Lingle said last night.

Many majority Democrats had reservations about supporting the bill without more detail, but lawmakers who represent the area said they wanted to show potential investors the Legislature was behind the concept.

State Sen. Clayton Hee, D-23rd (Kane'ohe, Kahuku), said the new law recognizes the state's authority to exercise eminent domain to acquire the land, which — while not the preferred option — gives the state a range of negotiating options.

"Basically, the table is set and everything is on the table," Hee said. "The reasonable expectation is she will deliver."

State Rep. Michael Magaoay, D-46th (Schofield, Mokule'ia, North Shore), said a question for lawmakers may be the timing of a potential acquisition and whether any state money will be necessary. The Lingle administration has said the goal is to use no or minimal state money, but if a significant amount of state money is part of the deal, lawmakers would have to balance that request with other state needs in a slowing economy where many state programs are facing cuts.

"This is a follow through for all the work we have done since the beginning of session and forming the working group," Magaoay said. "This is the exclamation point."