Hakalau Point project to proceed

HILO — Hawaii County and a property owner have been unable to agree on purchase price of a large parcel in Hakalau Valley.

The County Council authorized negotiations with Steve Shropshire last March to buy the 83-acre property through the Public Access, Open Space and Natural Resources Preservation Fund.

Shropshire said he would only sell if the county also purchased Hakalau Point, which he also owns, and vice versa. He set a firm offer of $4.25 million for both sites, which he said would cover expenses associated with planning to develop the point.

The county Finance Department sent him a letter July 13 saying it would not pursue purchase of the combined 91.5 acres — most of that in the valley — because its appraisal didn’t support that offer.

Shropshire said that clears him to move ahead with his development plans for the point, formerly owned by the Hakalau Plantation Co., which a community group also has been pushing to get turned into a park.

“I’ve owned this property for 12 years,” Shropshire said. “I’ve always believed its true value is in providing an economic development center for the Hamakua Coast.”

The PONC Commission ranked the valley parcel, which is contiguous with Hakalau Bay Park, as its No. 6 priority last year for preservation. Shropshire said he is considering forming a nonprofit to oversee that property, which he said could be used to highlight Native Hawaiian culture and land use practices.

He previously cited eco-tourism as a use for the property.

The commission ranked the point as its third priority in 2015 but didn’t include it in its most recent report.

As for the point, his latest plan includes using the two remaining mill warehouses on the property for a brewery, restaurant and plantation museum. Later he plans to construct as many as 13 additional buildings used for commercial kitchens and creating value-added agricultural products, which he says would be a big boost for local farmers.

“It’s the center for agriculture on the Hamakua Coast,” Shropshire said. “It’s also an area center for tourism. Those two things give me confidence this will be economically viable.”

He previously proposed a residential development.

Shropshire said he has a special management area minor permit to pursue renovation of the existing buildings.

That’s being appealed by a group of Hakalau residents who oppose the development and want to see the property used as a park.

Hakalau resident Sue Forbes said she’s not surprised a deal couldn’t be reached based on the owner’s offer.

“We continue to believe Hakalau Point needs to be a public space,” she said.

Shropshire said he intends to incorporate a park or pavilion in the development.

Hakalau farmer Michael Johnson said he supports Shropshire’s plans.

“I’m pushing for a fruit drier,” he said. “That also will expand our markets.”

Email Tom Callis at tcallis@hawaiitribune-herald.com.