What started as a surprise statement in the governor's State of the State speech could be headed toward reality, with legislators and community members backing a proposal that would preserve Turtle Bay from further development.

Even though lawmakers are killing off much of the governor's legislative package, support is strong for a bill authorizing the purchase of the Turtle Bay resort.

There is progress on several fronts, with the administration trying to get federal money for the purchase, the Legislature moving the legislation along and community members lobbying lawmakers to make sure it happens.

"I have no doubt that we're going to achieve this goal," Gov. Linda Lingle told a group working toward the acquisition last week. "There's a question of when and in what form, but I believe we will do it."

The reason for the progress on the proposal seems to be that it came up at the perfect time.

The community for years has been asking for public protection for the area and the resort — a major employer in the area — is in foreclosure and up for sale.

Meanwhile, the Legislature — particularly the Senate — has made sustainability issues a priority along with preserving open space.

The real question now is whether the governor's working group will hammer out the details of a possible acquisition over the next few weeks so the Legislature will be able to weigh in before session ends May 1.

Lawmakers say the issue isn't whether or not they want to preserve the open space at Kawela Bay and Kahuku Point, but rather how the governor plans to do it, and, perhaps more importantly, how much it's going to cost.

"This bill, more than any other legislation that I'm aware of, is the best example of a bipartisan, working relationship with the office of the governor and the state Legislature, both houses," said state Sen. Clayton Hee, D-23rd (Kane'ohe, Kahuku), who put together a bill to acquire the 880-acre property after hearing the governor's proposal during the State of the State address.

So far, each legislative committee that has heard the bill has given the governor the flexibility she has asked for so that she can put together a viable plan, which now calls for purchasing almost 1,328 acres of resort and undeveloped land.

"Every opportunity is being afforded to her with the idea in mind that as we get toward the end of session she will be able to report back how she intends to make it work and I believe she'll do it," Hee said.

The devil, as always, is in the details. Hee is encouraged that Lingle has suggested there might be enough outside financing available to minimize the state's contribution.

But House Majority Leader Kirk Caldwell questions whether the governor can pull together enough federal funding and private donations to make the acquisition feasible, especially when last week's Council on Revenues projections leaves the state with $50 million less to spend next fiscal year than expected.

"My experience with life is that when you're dealing with land in Hawai'i, you're not dealing with a little bit of money," said Caldwell, D-24th (Manoa).

However, at this point, the House leadership is waiting for details before it responds to the proposal.

"It's hard to oppose an idea that everyone thinks is good," he said. "If we can succeed in keeping that space open with no buildings and available for the people of the state for years to come, that is a great gift for the state of Hawai'i."

Practically speaking, the governor doesn't need the Legislature's approval to move forward, but lawmaker support would make it easier for the state to present itself as a solid buyer for the property.

"We're hoping they will provide for some resources to assist with the negotiations and the appraisal, because that will cost a little bit of money," said the governor's policy adviser Linda Smith.

In addition, the administration would like to have the option to issue bonds or exercise eminent domain, although Smith said the administration does not believe either will be necessary.

"The governor certainly wants to minimize any impact to Hawai'i state taxpayers," Smith said.

To accomplish that, Lingle has flown to Washington, D.C., to talk with the U.S. Secretary of the Interior to see if the federal government can help with the acquisition. She also put together a working group that includes individuals with financial and legal backgrounds to explore different avenues, Smith said.

Lingle will meet Tuesday with Oaktree Capital Management, a Los Angeles private equity firm that owns the resort, and Kuilima Resort Co., which is developing it.

Lender Credit Suisse has filed a $283 million mortgage foreclosure lawsuit against Kuilima for late principal and interest payments.

"I think this first meeting is really about learning what the governor's plan is. It's really a very preliminary meeting at this point," said Nathan Hokama, spokesman for Kuilima Resort.

Many community groups support the state's acquisition of the property in hope that it will put a halt to Kuilima's plans to build up to five more hotels.

The initiative has the backing of 26 community groups —known collectively as the Ko'olauloa North Shore Alliance.

Gil Riviere, president of Keep the North Shore Country and a spokesman for the alliance, initially was surprised by the governor's proposal, but is pleased with the show of support so far.

"It's a tremendous idea and there is tremendous support for preserving the area," he said.

Open space isn't the only concern for the community, Riviere said. Since Turtle Bay is currently in foreclosure, and many who live on the North Shore and work at the hotel are worried about their jobs.

"Everyone is concerned about the health of the hotel and the stability of the workforce," he said.

While the community has generally opposed expansion of the resort, it does want to keep the resort viable with little further development.

Denise Antolini, a Pupukea resident and a member of the North Shore Community Land Trust Board, is optimistic the state will be able to find a way to enhance the resort's value through creative partnerships that won't require expansion.

Having participated in the public acquisitions of Waimea Valley and Pupukea-Paumalu, Antolini, an environmental law professor at the University of Hawai'i, also thinks it's possible to meet the tight legislative deadline.

"The experience that we've gained from those two other efforts would speed this up considerably," she said.

In this case, she thinks the legislative timeline is a plus.

"There are clocks ticking, which is a positive in this situation, because it keeps the pressure on people to work quickly," she said.

Reach Treena Shapiro at tshapiro@honoluluadvertiser.com.