WAILUKU - It's been almost a year since Singapore-based GuocoLeisure Ltd. decided to shutter all its Molokai Ranch operations and, in turn, place 120 Friendly Isle residents out of work.

But Rep. Mele Carroll said she, along with some Molokai activists, want the state to attempt to salve the island's wounded economy by either negotiating or wresting control of the ranch's land into the hands of local residents and the state, The Maui News reported today.

Carroll introduced a bill that orders Gov. Linda Lingle to negotiate for the purchase of GuocoLeisure and its subsidiary Molokai Properties Ltd.'s more than 60,000 acres, or one-third of the island, along with its other assets on Molokai. However, Carroll said she believes it's unlikely the measure will be heard this year, considering an ongoing Maui County lawsuit and the state's depleted coffers.

"At this time, obviously, there is no money to purchase it," Carroll said from her office at the state Capitol. "But it gets the conversation going to make this possible and gives the community some voice in their fate."

If the governor is not able to negotiate the acquisition of the land - as well as its ranch, two hotels, golf course and several supporting small businesses - Carroll's bill states that Lingle must wield the power of eminent domain to acquire the property.

One of the central sticking points has been Molokai Properties' alleged asking price of $300 million, although company officials have said the property is not for sale.

Molokai residents - along with Maui County Council members who took into consideration a similar eminent domain bill this fall - do not believe that's a fair asking price. Especially since the company is appealing the county's assessed value on dozens of its Molokai lots and other properties; and the company officially lost access to its two major water sources in successive state decisions in late 2007, sale proponents said.

Molokai Properties shut down the ranch and hotels last April after failing to win initial approval for the landowner's proposed master plan to develop 200 luxury homes at Laau Point.

In September, the Maui County Council's Policy Committee opened discussions on whether to condemn the Molokai Ranch in a forced sale. But council members took no action and have not revisited the issue yet.

Daniel Orodenker, general manager for Molokai Properties Ltd., did not return messages from The Maui News seeking comment.

A few observers have noted that the eminent domain or condemnation process, which actually requires the state or county to pay the ranch for the lands based on values determined by independent assessors, is a complicated and arduous process overseen by the courts.

Lingle's spokesman, Russell Pang, said this week that the governor does not yet have an opinion on the Molokai Ranch proposal. But, in general, Lingle prefers to go the negotiation route, Pang said.

The bill Carroll crafted mirrors one introduced last session by Lingle requesting permission to enter into negotiations to purchase Turtle Bay Resort and its 1,300 acres on Oahu using general obligation bonds, a land exchange, and federal or private dollars. The Legislature later added a provision that gives the governor authority to use eminent domain to acquire Turtle Bay.

The Turtle Bay discussions continue, and the Lingle administration's last offer was made in November, Pang said.

As for the ranch, Molokai Community Service Council Executive Director Karen Holt said she thinks those seeking acquisition of the ranch can gather enough financing and donations to cover the price without using public funds.

"Basically I wish that the owners would simply sell for a fair price because the community is hurting because of their decision to mothball the whole enterprise," Holt said.

Holt is part of a grass-roots group that joined with the alternative energy company First Wind to construct windmills on the property. First Wind has offered to pitch in $50 million toward a $120 million offer for the ranch that Holt's group made last year, which the company rejected.

GuocoLeisure reportedly purchased the ranch in 2005 for $203 million. But Holt added that without access to Well 17 - which the state Supreme Court denied - or to the Molokai Irrigation System - which the state attorney general rejected without a new environmental impact statement - the property has lost significant value.

Carroll, a Democrat whose 13th District includes Molokai, introduced her bill Jan. 28, and it passed first reading. The measure is now before the House of Representatives Committee on Water, Land and Ocean Resources.

However, committee Chairman Rep. Ken Ito said the bill will remain in limbo until related litigation has been settled. The litigation is expected to be concluded by next session, Carroll said. Last year, Maui County sued Molokai Properties to make certain that it does not shut down its three private water and wastewater utilities and force the county to take over the facilities.

Carroll said she welcomed another year in order to conduct more research and gather more political support.

State Sen. J. Kalani English introduced the identical Senate version with fellow Democrats Jill Tokuda, Mike Gabbard, David Ige and Shan Tsutsui, who represents Central Maui. English said he brought forward the bill as a service to his constituents but doesn't necessarily support it.

"I think it's an interesting idea, but people have to really understand what they're asking for and the full implications of it," English said.

He said the idea brings up all sorts of questions about who and how it would be controlled and financially supported if were to become government land.

Carroll said she knows that eminent domain is "pretty drastic," but said proponents of acquiring the ranch's land need to start out strong to get a discussion going. Besides, Molokai has the highest unemployment rate in the state and something dramatic must be done to help the people there, she said.

"The community has said, 'We're tired of these outside owners coming in and doing whatever they want,' " Carroll said. "They believe local ownership is what's healthiest for Molokai now."

* Chris Hamilton can be reached at chamilton@mauinews.com.