Hokulia bypass settlement to be revealed

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The project, Hawaii County officials and property owners have been in and out of court since 2000.

Stephens Media

The final settlement terms in the long-running Hokulia bypass saga will be revealed today.

Nine attorneys representing, among other groups, 1250 Oceanside Partners, the Club at Hokulia, the Hokulia Community Association, American Motorists Insurance Co. and Hawaii County attended a hearing Thursday afternoon, either in person or by phone. Third Circuit Court Judge Ronald Ibarra told them to return at 1 p.m. today with a new draft settlement, which he will either accept or modify.

Ibarra reminded the attorneys his decision is binding and nonappealable. His court also retains jurisdiction to enforce the settlement, he said.

All money dictated to be paid by the settlement must be paid by March 23, Ibarra said.

The first version of the settlement, which parties tentatively agreed to in December, released American Motorists Insurance Co., which held the bonds securing the construction of the Mamalahoa Highway bypass, from its bond obligations in exchange for $12.5 million in cash to Hawaii County. The settlement also gave Hawaii County $20 million in collateralized interest in 1250 Oceanside’s property.

A forensic cost expert in December estimated the road will now take $27 million to complete, down from a previous estimate of $34 million.

Still at issue, and what brought all the properties to court in January, is who is supposed to build the road. A Lloyd’s Banking Group representative informed Hawaii County officials they wouldn’t support the first version of the settlement if 1250 Oceanside Partners is still required to build the second half of the bypass, from Halekii Street to Napoopoo Road.

The project, Hawaii County officials and property owners have been in and out of court since 2000.