A proposal before the City Council would recommend using city funds to help acquire the 2,100-acre Galbraith Estate, prime Central O'ahu agricultural land that is home to Lake Wilson and sacred Native Hawaiian birthing stones at Kukaniloko.

Meanwhile, Bank of Hawaii Corp., which is trustee for the Galbraith Estate, said yesterday that a deal to sell the land to a Canadian developer has fallen through. Stafford Kiguchi, Bank of Hawaii spokesman, said the company now is looking to re-market the land.

Canadian developer Dennis Blain had been attempting to purchase the land and convert it into five-acre parcels. He also wanted to sell Lake Wilson and the Lake Wilson Dam back to the state for $68 million.

Blain would not comment on the status of the deal, citing confidentiality agreements with Bank of Hawaii.

"We're still talking and seeing what we can do," said Blain in a telephone interview yesterday. "There are government levels and higher ends that are trying to sabotage the deal."

State Sen. Russell Kokubun, D-2nd (S. Hilo, Puna, Ka'u), said he does not think Blain's efforts to purchase the property will be successful.

"The general sentiment in the community is that it (Blain's proposal) is an inappropriate use of the land," said Kokubun. "We need to invest and preserve lands of great importance. It just makes a lot of sense for ensuring the long-term viability of agriculture on O'ahu."

The city resolution was deferred by the council's budget committee yesterday and does not have the force of law, but it would recommend using some of the $4 million of the city's Clean Water and Natural Lands Fund as part of purchase package being pulled together by the Trust for Public Lands.

The resolution states that "the council finds that the Galbraith lands comprise valuable agricultural lands and historical and culturally important land areas that fulfill the purpose and intent of the Clean Water and Natural Lands Fund and should be preserved."

Councilmember Donovan M. Dela Cruz, the resolution's author, said the developer's continuing interest is reason for the city and state to act quickly.

"There is a sense of urgency because this parcel is for sale now," he said. "It needs to be preserved for agricultural purposes rather than allow it to become a bunch of luxury homes masquerading as gentlemen's farms."

Denise E. Antolini, director of the environmental law program at the University of Hawai'i William S. Richardson School of Law and a member of a commission tasked with appropriating money from the city fund, said the commission is still prioritizing and organizing.

The attempt to sell the Galbraith Trust's 2,100 acres fell through late last year, and Bank of Hawaii relisted the property.

The majority of the property, adjacent to Wahiawa and four miles north of Mililani town, was leased to Del Monte Fresh Produce, which announced in 2006 it was closing its pineapple-growing operation in Hawai'i.

The Galbraith lands, when first listed in 2005, were expected to sell for between $30 million and $50 million, local real-estate experts have said.

State Rep. Marcus Oshiro, D-39th (Wahiawa), introduced legislation that set aside $13 million and enables the state to acquire the Galbraith lands with the aid of partnerships with public and private agencies.

The bill was passed by the Legislature and will become law.

Oshiro said the Trust for Public Land is attempting to secure money from the city, the Office of Hawaiian Affairs, the U.S. Army and others interested in preserving the estate.

"Over my dead body am I going to sanction these five-acre lots (proposed by the developer). There are actual farmers who are interested and can make a go of it and be profitable if we assist in acquiring the land," said Oshiro. "I know the area definitely fits the criteria of the city's Clean Water and Natural Lands Fund. It has all the features of prime ag land in terms of water, access to market, and electricity. It's the ideal location."

The George Galbraith Trust is a $90 million private trust set up in 1904 to benefit the heirs of cattle rancher George Galbraith.