By NANCY COOK LAUER
Stephens Media
An out-of-state company looking for feedstock for an ethanol plant is the top bidder to lease all 16 Hamakua parcels that were put to bid following a County Council resolution billed as helping small local farmers return to the land.
All Cool Fuel LLC, based in Westland, Mich., bid more than $180,000 in total for the parcels in a public bid-opening Thursday. The company has first rights to the parcels and can choose to drop one or all of its bids in the coming week. In that case, the second-highest bidder would earn the right to lease the property.
The leases must go before the County Council for approval.
The resolution paving the way for the leases, by Council Chairman Dominic Yagong, was passed almost a year ago, after a protracted battle with Mayor Billy Kenoi over whether the county should sell some of its extensive holdings as a way to balance the budget. Hamakua farmers came out in force against selling the property, saying the land should be opened to small farmers and others in the community instead.
Yagong said Friday it’s too early to tell if the company will end up with all the parcels.
“It’s very difficult to preclude anyone from bidding on public lands,” Yagong said.
He said feedstock for biofuels is a legitimate use of the property, according to the resolution, and it’s better that the acreage be used for something rather than sit idle.
“People may be a little disappointed that they didn’t get the land, but there are other opportunities available,” Yagong said. “Having these lands lay fallow doesn’t do anyone any good.”
The county received the land in 1994 in lieu of back taxes from the bankrupt Hamakua Sugar Co. The land has lay fallow ever since.
The resolution affected only the 737 acres in Paauilo and Pohakea and not Kenoi’s 1,700-acre agricultural park project at Kapulena or the 1,040 acres on Highway 11 the county has subdivided for partial use as a baseyard.
All Cool Fuel registered with the state in August, according to documents filed with the state Department of Commerce and Consumer Affairs. Duane A. Bitner, the listed partner on the registration, on Friday declined to immediately give details of his project in an email correspondence with Stephens Media.
In September, a company representative appeared before the Natural Energy Laboratory of Hawaii Authority board, seeking approval in concept for a biofuel and renewable coproducts manufacturing plant at the site.
The board approved the project in concept, and told the applicant to provide additional information on a number of factors, including its source of feedstock, according to draft minutes of the meeting posted on the NELHA site.
NELHA Executive Director Greg Barbour did not return a telephone message Friday afternoon.
The resolution states the land could be used for “diversified agriculture, renewable energy development, pastoral use, ecotourism, workforce housing, agricultural education and training,” but not for “research, development, production or cultivation of genetically modified organism (GMO) products.”
Kenoi had said he supported the resolution after talking with Hamakua farmers and ranchers.
“We’re all in support of agriculture in Hamakua, and we look forward to making these lands productive and getting the farmers and ranchers back on their land,” Kenoi had said.
The mayor has since proceeded with his own efforts for a 1,700-acre agricultural park project at Kapulena, involving local farmers and ranchers in an effort to clear acreage first with cattle, so that farmers can ultimately create farms and orchards.
Kenoi told Stephens Media Friday evening that he hasn’t yet been briefed on the bid opening or the winner.
He said he was unfamiliar with All Cool Fuel or Bitner, and said he hadn’t spoken with company representatives.
Yagong also said he’s not talked with the winning bidder. But he looked favorably at the prospects.
“People who want these parcels are in a good position to create jobs,” Yagong said.
Email Nancy Cook Lauer at ncook-lauer@westhawaiitoday.com.
