The owner of the Hilton Waikoloa Village resort has rejected a $2.7 million land exchange with the state to settle a dispute over the use of ceded lands at the resort, Deputy Attorney General Bill Wynhoff said yesterday. Waikoloa Village
rejects ceded land dealBy Craig Gima
cgima@starbulletin.comPart of the hotel is built on 1.86 acres of state land and the Department of Land and Natural Resources has been trying to negotiate an exchange with property owner Lanpar/HTL Associates, an affiliate of the Waikoloa Land Co.
An independent appraisal done for the state set the value of the land at $2.7 million and said Lanpar should pay an additional $2 million in back rent for the use of the ceded land. (Ceded lands are crown or public lands that were ceded to the Republic of Hawaii after the overthrow of the monarchy in 1893. Revenues from ceded lands are supposed to help fund the Office of Hawaiian Affairs.)
Wynhoff and DLNR officials met with Lanpar on Thursday to discuss the appraisal. Wynhoff said Lanpar "didn't want to do it (a land exchange) at this price."
He said the company didn't rule out arbitration to settle the dispute over the land's value.
Lanpar is also not interested in leasing the land, Wynhoff said. "They would prefer to litigate than lease," he said.
The Native Hawaiian Legal Corp. and fisherman Mervin Napeahi, who filed a lawsuit over the use of ceded lands by the resort development, have said they would prefer the land be leased rather than sold.
The state land includes the Waters Edge Ballroom, a section of tram and water taxi tracks, and part of the lagoons at the resort.
The issue will go before the Land Board at a future meeting.
One possible option is to evict the hotel from the state land. Wynhoff said Lanpar believes it will be able to win in court if the state tries to evict the hotel.
Waikoloa Land Co. officials had no comment on the meeting.