WAILUKU - Two of Maui's most controversial projects - the development at the old lime kiln site near Baldwin Beach Park and the proposed Harbor Village shopping center in Lahaina - would be stopped and taken over by the county or a nonprofit group if Mayor James "Kimo" Apana has his way.

Speaking Thursday before the County Council Land Use Committee, where both items were being discussed, Apana said he's working with a group to obtain a $4 million loan that would be guaranteed by the federal government to buy the Harbor Village site on Front Street. He also said he hopes the Maui Coastal Land Trust will play a role in helping the county obtain the properties of the Montana Beach Condominium project near Baldwin Beach Park.

Because of the mayor's lengthy remarks, the amount of public testimony and a 30-minute presentation by Harbor Village developers, the committee never got around to discussing either issue, so Chairman Alan Arakawa recessed the meeting until Monday at 9 a.m. in the eighth floor Council Chambers.

Apana told committee members that he's already met with representatives of the U.S. Department of Agriculture regarding the guarantee of a long-term loan that would give the Friends of Moku'ula control of a property slated for an 18,352-square-foot shopping center.

The Friends of Moku'ula is a nonprofit organization that proposes to restore an ancient fishpond, Loko Mokuhinia, and island, Moku'ula, which was the home of Hawaiian royalty. The Harbor Village development would encroach on the historic site.

Regarding the old lime kiln site where three landowners with the Montana Beach project have been building homes on a single parcel, Apana said he would seriously consider using the county's power of eminent domain to take over the property and tear down the buildings. The mayor said he would like the Maui Coastal Land Trust to assist in acquiring the land that would become part of a larger north shore public park.

"I haven't talked to the owners yet," admitted Apana on his plans for the Montana Beach parcel. "I'd like to call them and ask for a price. Right now, that group isn't very pleased with me."

Apana was referring to recent decisions by county attorneys that ordered the developers to stop work on their homes and canceled exemptions for building permits on the shoreline land. In addition, one owner already occupying his dwelling was told he must vacate the premises because he hadn't followed correct procedures.

No one from the Maui Coastal Land Trust was at the meeting. The group's president, attorney Tom Pierce, told The Maui News that he hadn't heard of the mayor's plans, but said the trust would be happy to help.

"It's definitely something that can be explored," said Pierce. "There's no doubt the land trust can serve an extremely important role in a complex situation. This is an important piece of property, but the landowners also need to get compensation."

Apana also repeated that condominium procedures on single parcels would be permitted only in hotel or apartment districts in the future. He said county attorneys had discovered that "the spirit of the law" never intended for something like the Montana Beach Condominium to result.

The developers of Harbor Village were on hand and acknowledged they were willing to work with the mayor and others in the community to sell the property for purposes related to Moku'ula. One of the owners of JDI Limited Partners who planned the shopping center and obtained leases to two adjoining parcels for parking, Terry Lee, thanked Apana and resident Peter McKenney for showing respect for the developers and providing viable options.

Maui County Council Member Wayne Nishiki praised Lee and partner Steve Gatchell for trying to create "a win-win situation." Nishiki also commended the mayor "for taking these bold steps."

Apana said he would like the Friends of Moku'ula to act as landlord if the property, including the two leased sites, is acquired. He said an existing parking lot on one parcel could provide revenues to the Friends. Charging for parking could help pay off the loan and the Friends would be at liberty to keep all the stalls or restore any portion of Loko Mokuhinia that is under the lots.

Arakawa decided to investigate the Harbor Village approvals to determine if the Maui Planning Commission should be asked to reopen the special management area permit it granted. Council Member Jo Anne Johnson requested that Arakawa look into the matter.

Because the Montana Beach Condominium project has also been at the eye of a public storm over how owners were allowed to build with exemptions from SMA requirements, Arakawa wanted to look into the history of the development to see if laws should be changed to prevent anything like it from happening again.

While Apana's announcements changed the atmosphere of the meeting, Arakawa continued with the agenda, saying it was as important to scrutinize the process that enabled the approvals to go forward as to review the individual projects.

When contacted later Thursday, Apana admitted that "the county can't keep buying everything," but he believes the revenues from parking will cover the loan for Harbor Village and the county should do whatever it can to purchase the properties near Baldwin Beach "because it's one of those pristine areas we should try to get."