StarBulletin.com

Former Hamakua land attracted no bidders


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POSTED: Sunday, May 30, 2010

QUESTION: What ever happened to plans to sell former sugar lands in Hamakua to pay off a tax debt?

ANSWER: Hawaii County's ownership of the land dates back to 1994, when the 737 acres were given to the county as part of a tax settlement with the bankrupt Hamakua Sugar Co.

The Hawaii County Council gave Big Island Mayor Billy Kenoi the authority to sell the land.

The land was subdivided into parcels and a website, paauilolandsales.com, was set up to provide information to prospective bidders on the 15 parcels of land up for auction.

An independent appraisal found the land was worth $6 million.

The smallest parcel, 12.8 acres, was valued at $216,000. The largest and most valuable at nearly 110 acres was appraised at $688,000.

But the deadline for bids at the end of March on the first six parcels of land passed without any offers.

A second attempt to sell off the land in April also came up empty.

A sealed-bid auction for the remaining properties was set for tomorrow. But Kenoi decided against selling the land until market conditions improve.

The Big Island mayor said the county isn't going to give the land away.

The sale was supposed to help balance this year's budget. But the administration was able to balance the budget without selling the land.

Last month, Ken Van Bergen, the county property manager, said the lack of bids could mean would-be buyers believe minimum bids set for the parcels are too high.

The values were set by an independent appraisal conducted last July by ACM Consultants Inc.

The valuations are the minimum bid allowed by law.