In a July 3 letter, Nansay President Philip Ho told the Hawaii County Planning Commission that he wants to withdraw the six-year-old proposal for Kohanaiki, also known informally as "Pine Trees," four miles north of Kailua-Kona.
The request will be considered by the commission Aug. 1.
Nansay's action follows the refusal in April of the U.S. Supreme Court to hear the company's appeal of state court decisions.
The Planning Commission granted Nansay a Shoreline Management Area permit in 1991, but state courts said the commission hadn't given enough attention to the effect of the project on native Hawaiian food gathering rights. The state courts ordered the commission to hold a contested case hearing on those rights.
Nansay attorney Randy Vitousek said the withdrawal request doesn't mean the idea of a resort at Kohanaiki is dead. The company could change its mind before Aug. 1, or it could submit a new proposal later, he said.
"A lot has changed since 1990," Vitousek said. "They have to look at what would be the most appropriate planning and use for the property would be in today's environment."
The company owed $1.4 million in back property taxes on Kohanaiki last year. That figure has grown to $2.4 million, said county property tax chief Gary Kiyota.
Kiyota said he plans to hold a foreclosure sale for a number of properties in December. If payment isn't made soon, Kohanaiki will be included, he said.
A company spokesman was quoted last year as saying the property, variously listed as 250 or 270 acres, was "informally" up for sale, meaning it was not listed for sale, but people in the industry generally knew it was available.
Company president Philip Ho did not respond to requests for comment.
In addition to Kohanaiki, Nansay owns 3,000 acres at Puako and 458 acres at Ouli, both in the South Kohala resort area. The company plans golf and residential development at both sites.
The company owed taxes on those properties last year, but Kiyota said the taxes have now been paid.