ASSOCIATED PRESS With Hawaii-style props displayed, Michigan Gov. John Engler announced yesterday an initiative to shield from development 390,000 acres of rural Michigan land put up for sale by Kamehameha Schools.

Kamehameha timber land
targeted for protection

The trust is selling 390,000 acres
in rural northern Michigan

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By Mike Tyree
Associated Press

TRAVERSE CITY, Mich. >> Miles of groomed trails meander through huge forested tracts in the Upper Peninsula's Alger County, where each winter snowmobilers pump much-needed cash into the region's economy.

The trails snake through both public property and 144,500 acres owned by the Kamehameha Schools Trust, which holds 390,000 acres of prime timber land spread across 10 Upper Peninsula counties.

The entire Kamehameha parcel is for sale. And from Munising, the county seat, to the state Capitol in Lansing, fear is growing that a buyer might fence the properties and deny public access to some of Michigan's most beautiful country.

"If they wouldn't want us on the property, we wouldn't want them to buy it," said Kay LeVeque, director of the Alger County Chamber of Commerce.

Yesterday, Gov. John Engler and the Nature Conservancy of Michigan launched an effort to purchase the 390,000-acre Kamehameha property by combining funds from private, public and philanthropic sources.

Recent reports estimated the property's value at $150 million, though Kamehameha Trust spokeswoman Susan Todani would not confirm that figure yesterday.

Engler and other backers hope a timber company will buy the property, aided by financial support from the state, Nature Conservancy, donors and perhaps the federal government.

The owner would grant permanent public access to most of the land, which stretches across roughly 230 miles of Lake Superior shoreline in tracts as small as 22 acres in Delta County to 35,578 acres in Marquette County.

Officials estimate about 90 percent of the property would remain on the tax rolls. The timber company they seek would be able to conduct logging operations on the land while ensuring public access to it.

"It is a wonderful win-win situation for all the people of Michigan," said Philip Power, chairman-elect of the Nature Conservancy's state chapter. "The land stays productive, stays on the tax rolls ... and the land continues to be accessible to the public."

The state, however, has no potential buyers in mind and doesn't know how much it might cost to buy the Kamehameha property, Engler spokeswoman Susan Shafer said.

Yesterday's announcement was intended to attract a private sector investor. "We think we could be a great partner with the timber industry," Shafer said.

Doug Lee, executive director of the Michigan Association of Timbermen, considers the Kamehameha land valuable, but thinks the state could have a difficult time finding a buyer for it.

"The list of potential buyers is very small," Lee said. "I have not heard of anybody who's looking at the entire package. I do know of people interested in certain parcels."

The Kamehameha trust has no plans to sell the property piecemeal, Todani said. She would not comment on the Engler-Nature Conservancy proposal, but said multiple buyers have approached the trust, which recently hired Bank of America of New York to solicit bids.

The trust hopes to find a buyer soon, she said.

Todani said the Kamehameha Schools Trust will "fairly evaluate" any proposal tendered by the state and Nature Conservancy, but added, "this is a business transaction, as far as the trust is concerned."

Helen Taylor, director of the Nature Conservancy's Michigan chapter, voiced optimism over a deal but understands time is running short.

"It's very important, given what we believe is the pace of this sale, it has to be an entity that can do this extraordinary land sale in one fell swoop," she said.

Proposal highlights Details of a proposal for purchasing the 390,000-acre Kamehameha Schools Trust tract in Michigan's Upper Peninsula, as outlined yesterday by Gov. John Engler and the Nature Conservancy: >> Form a consortium of government, environmental and recreational agencies to attract a timber industry partner. >> The timber industry partner would supply most of the potential $150 million purchase price, augmented by state, environmental and philanthropic sources. >> At least 90 percent of the property would remain on the tax rolls. >> The timber company would own and actively log the property but grant public access easements on most of the land, allowing continued access to snowmobiling, fishing, hunting and other recreational activities. >> Easements would allow continued access to holdings bordering Pictured Rocks National Lakeshore, Porcupine Mountains Wilderness State Park and 160 inland lakes. >> The property would be protected against "fragmentation" -- piecemeal residential or commercial or development. Source: Associated Press