The Defend Oahu Coalition is asking the state to rescind a 1986 reclassification of 236 acres at Turtle Bay, saying that the owners of the property have failed to implement conditions attached to the reclassification.

The coalition has filed a petition with the Hawai'i State Land Use Commission and said the prospect of new jobs in light of the demise of the sugar industry had legitimized the commission's reclassification order. But the situation has changed and landowner Oaktree Capital Management hasn't met its responsibilities, the coalition said.

"Of the nine conditions originally attached to the commission's reclassification order, many have not been met after more than 20 years," said Bob Nakata, co-chairman of the coalition. "We are calling on the Land Use Commission to rescind its 1986 reclassification order based on these facts."

Kuilima Resort Co., which is developing the property, did not return phone calls seeking comment.

The company has an expansion plan agreement from 1986 with the city and state that allows it to build up to five new hotels with 3,500 rooms and condominium units and four public parks on 880 acres at Turtle Bay.

Kuilima has applied for a subdivision permit and is working to complete development plans for the project before final approval can be given. The city has extended time for that, giving the company until September to conclude the necessary plans, said Bill Brennan, city spokesman.

The decision by Kuilima to move forward with an expansion has ignited a controversy over the need for new hotels and jobs, and the lack of open space on O'ahu.

People opposing the expansion have protested and petitioned the courts to weigh in on the issue.

Today the Hawai'i Intermediate Court of Appeals will hear oral arguments in a case that would compel the city to require a supplemental environmental impact statement on the proposed subdivision.

Earlier this year, Gov. Linda Lingle announced in her State of the State address that Hawai'i should acquire the property to preserve it. She has formed the Turtle Bay Advisory Working Group to help her develop a plan to do that.

So far, a group committee has concluded that limited expansion at Turtle Bay may be necessary, but the community must support any proposed plan. The committee recommended that any new hotel be built on the footprint of the present resort.

The group reported on its Web site that potential buyers continue to contact the state and a committee is working on options and price ranges.

The state Legislature is supporting the acquisition by moving two bills forward that will help the process, but the final vote on them is not yet in.

Finally, Lingle has written a letter to U.S. Sen. Daniel Inouye asking for his support in Congress.

The committee meets again April 16.

Defend Oahu Coalition said it petitioned the Land Use Commission because it wasn't sure how quickly the state could move on the acquisition and it felt the commission had the right to act.

Five of the nine conditions for the reclassification of land have not been met, Nakata said. The landowner was to make improvements to three intersections fronting its property on Kamehameha Highway, build public parks, open beach accesses, provide affordable housing and create jobs with new hotels, he said.

A string of companies have owned the property since 1986 and none has met its obligation to the city and state. Oaktree is no different as it faces foreclosure on a $283 million loan, Nakata said.

A main reason to grant the change was the dire need for jobs back then, but now the tides have changed, he said.

"They're having trouble keeping the hotel fully staffed and the need for open space has become far greater after 20 years," Nakata said.