KAHUKU — Gov. Linda Lingle last night told a crowd of more than 500 people that the proposed state purchase of Turtle Bay property is a chance "to plant our flag in the sand" against runaway development.

"This is the place where we didn't just talk about sustainability, we didn't just talk about smart growth, we actually did something about it," Lingle said at a "talk-story" session at Kahuku High & Intermediate School.

Many in the audience backed the purchase, while others urged the governor to spend the money on such needs as education, jobs and housing.

The meeting marked Lingle's first appearance in the community since announcing the surprise proposal to buy and preserve the 880-acre Turtle Bay resort property in her Jan. 22 State of the State address.

Last night, an estimated 500 people were inside the school cafeteria and another 100 stood outside as Lingle addressed the crowd for several minutes and then listened to concerns of residents and others.

Lingle said she has been thinking about preserving Turtle Bay since she attended a dedication of Pupukea-Paumalu Reserve. But even before that, she said, she realized that Hawai'i cannot rely on an economy dependent on land development.

Lingle conceded that there must be some growth, and said the Turtle Bay purchase is doable and that it can be done while protecting the existing resort and jobs.

About 100 of those in attendance last night were Turtle Bay employees, said Eric Gill, head of the Local 5 hotel workers union. He said they support any outcome that preserves their jobs.

As the meeting time approached, hundreds of people poured into the cafeteria, many wearing T-shirts that declared their view.

The green shirts of the Defend Oahu Coalition signified the group that wants no expansion of the resort. The red shirts of Save Kahuku Beach are hoping the state will purchase the beach that Continental Pacific wants to develop for luxury housing.

The white shirts of Priorities First wanted Lingle to consider needs such as education, sustainable jobs, affordable housing, improved highways and keeping the country country before spending millions to buy the hotel property.

Groups hung signs on the walls and put petitions on the table.

"As community members, we feel if they can get the money, put it here (in Kahuku)," said Kahuku resident Toni Cano, who was wearing a Priorities First T-shirt.

Ruth Sifton, who has lived in Kahuku for 40 years, said the issue is about saving agricultural land. The land must be preserved for farming, the community and tourists, she said.

"Tourists come here because they like the country," she said.

State Sen. Clayton Hee, D-23rd (Kane'ohe, Kahuku), said a Senate bill to facilitate the purchase passed yesterday and now goes to the House for further consideration.

"It allows the governor to make good on her State of the State speech," Hee said.

FIVE HOTELS IN PLAN

The property is slated for major resort development, and under a 1986 unilateral agreement could see as many as five new hotels with 3,500 rooms and condominium units and four public parks.

A state purchase could end that plan and preserve open space, including five miles of oceanfront coastline.

Junior Primacio, who is president of the Kahuku Community Association and helped develop the 1986 unilateral agreement, said prior to the meeting that he wants to hear more and will withhold judgment until more facts come out, including from the owner of the Turtle Bay property, Oaktree Capital Management.

When Oaktree's plan to expand was revealed in 2006, the community association supported it, Primacio said.

"Now that I'm the president, I'm not taking any position until I can get enough bullets in my gun to go back to my constituents and tell them this is the plan," he said.

Primacio and others have said that they support the present hotel operation and the employees working there. It was not clear yet how a state purchase might affect them, but several options have arisen, including making the hotel a concession operated by a management company.

Residents have come down on both sides of the development issue since Oaktree's plan was revealed, with some supporting the needed jobs it would bring and others condemning the loss of the rural lifestyle in the plantation community.

Lingle became interested in the purchase after Credit Suisse, an international lender, filed a $283 million mortgage foreclosure lawsuit against Kuilima Resort in December for late principle and interest payments.

The property is being developed for Oaktree Capital Management by Kuilima Resort Co., which has applied for a subdivision permit but is nearing a March 29 deadline to submit all of the necessary paperwork. The company is eligible for another extension, but it's unclear whether it has applied for it.

Kuilima Resort did not return phone calls yesterday seeking comment.

Turtle Bay's owners have said they are open to talking with Lingle about a possible purchase.

For the past two years, Kuilima Resort has been looking for a buyer or partner to help with financing.

Lingle is scheduled to meet with Oaktree representatives March 18.

She added last night that she is putting together an advisory group of government officials and community members to help determine how best to acquire the land.

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com.