-Ian Lind
Honolulu Weekly, May 21-27, 2008

The state’s renewed commitment to provide incentives and supports to farmers and meaningful long-term protection for important agricultural lands faces a major challenge in the fallow fields outside of Wahiawa in central Oahu, where a Canadian real estate developer is trying to complete a behind-the-scenes deal to buy and then subdivide 2,100 acres of prime land for high-priced McMansions on “gentleman farms”.

The land at the center of this tug-of-war between development and agriculture is owned by the estate of George Galbraith, a native of Ireland who died in Honolulu in 1904. The Galbraith property begins at the edge of Wahiawa town and stretches towards the North Shore. It also includes Lake Wilson, which provides fresh water to farms all the way down to Waialua, and is adjacent to Kukaniloko, the royal birthing stones where tradition says high ranking Hawaiian women have gone to give birth since as early as the 12th century.

The area has the highest AG-1 designation and includes some of the most productive agricultural lands from a historic standpoint, according to Alan Takemoto of the Hawaii Farm Bureau Federation.

“With rich soil and viable water, this is the last frontier for Oahu in terms of agricultural,” Takemoto told Honolulu Weekly.

“It’s a very important piece of property, the gateway to agriculture, and we need to preserve that,” said Alfredo Lee, who heads the state’s Agribusiness Development Corporation. “We saw what happened on the Poamoho side, and we don’t want to see that happen again.”

An agricultural subdivision created more than a decade ago at Poamoho quickly shed most of its active agriculture and has instead been touted as a place for multi-million dollar homes with great views, where wealthy homeowners claim agricultural tax breaks for pretending to be weekend farmers.

The Legislature this year enacted HB 2293, which authorizes the Agribusiness Development Corporation to acquire the Galbraith lands. The bill appropriates $13 million to use towards the purchase, and directs the agency to use its power of eminent domain if negotiations with the landowner are unsuccessful.

The measure is now awaiting Governor Lingle’s signature in order to become law.

But while the Legislature was debating the bill, Bank of Hawaii, trustee of the Galbraith Estate, was engaged in secret negotiations with Dennis Blain, owner of Nokaoi Development LLC.

Although a bank representative told legislators and other interested bidders during most of the 2008 legislative session that it would soon be listing the property for sale and considering all offers, the bank instead proceeding to negotiate secretly with Blain. The bank’s move shunted aside several organizations interested in submitting bids on their own or in cooperation with others, including the Trust for Public Lands, the Office of Hawaiian Affairs, the U.S. Army, and Kamehameha Schools.

A similar coalition effort saved Waimea Valley from development, and another is being pursued at Turtle Bay.

Blain, a real estate developer from Alberta, Canada, declined to discuss the status of the deal, which is believed to be on hold while he conducts a “due diligence” review.

“I really don’t think I can say anything at this time,” Blain told Honolulu Weekly. “I’m kind of under a confidentiality agreement. You might have to talk to me in 30 days.”

State Representative Marcus Oshiro, who represents the Wahiawa area and sponsored the bill to keep the Galbraith land in agriculture, said he met with Blain last month.

“He is not a farmer, he’s a real estate developer and investor who is looking at purchasing the Galbraith lands and then selling them at a profit.”

Blain’s company, Nokaoi Development, lists several Maui projects on its web site, including three proposed condominium or townhouse developments in Kihei. Although the Galbraith deal has apparently not been finalized, the company is already marketing the property on the web site, Loopnet.com.

Oshiro said he and other community leaders in Wahiawa have been trying to block development of the Galbraith property since a proposal by the estate in the early 1990s that would have included thousands of homes, a golf course, and supporting business and commercial areas.

“This is not something that came about overnight,” Oshiro said. “We’re talking about 15 years or so that this has been on the community agenda.”

Lea Hong, Hawaii director for the Trust for Public Lands, said she remains hopeful the property can be preserved for farming because of the substantial risks facing anyone trying to “slice and dice” the property for speculative development.

Known risks include strong community opposition to development, Native Hawaiian cultural opposition to development anywhere near Kukaniloko, the dangers caused by deferred maintenance of the dam at Lake Wilson (already rated a high risk), the Army’s desire for a buffer between residences and nearby training areas at Schofield, the City Council’s recent rejection of another agricultural subdivision at nearby Poamoho, and the threat of state condemnation.

Oshiro sees this as a defining moment for policies aimed at protecting and preserving agriculture.

“If we can’t stop and draw the line in the dirt up here in Wahiawa and say, this is it, north of Wahiawa is to be preserved in agriculture, then we can see the domino effect that would stretch all the way out to Kaena Point and all the way back to Waimea,” Oshiro said. “It would make me sick to my stomach to get this far and not be able to move forward and preserve these lands for agriculture.”