A company owned by a Japanese billionaire has put forth a plan to solve West Maui water troubles in part by improving and conveying a private delivery system to public ownership at no taxpayer expense.

The plan, presented by
TY Management Corp. to the state Commission on Water Resource Management on Tuesday, intends to benefit Maui County, financially struggling Maui Land &Pineapple Co., a state agriculture development agency, Native Hawaiian taro farmers, other small farmers, Kapalua homeowners and TY.

TY’s plan involves improving a century-old MLP surface water ditch system, adding reservoir capacity and building a pipeline between Kapalua and Lahaina for the county to deliver treated wastewater to Kapalua for irrigation in return for fresh groundwater for county use.

TY, which operates two Kapalua Resort golf courses and is owned by Tadashi
Yanai, estimates that its plan could cost more than
$30 million and can be implemented over the next two to four years to cure shortages of water that have plagued Honokohau Valley taro farmers and residents, TY and other Kapalua users.

But the plan also contains one hugely contentious element — transitory use of groundwater to irrigate the golf courses at times when current permitted use of diverted water from Honokohau Stream into the ditch system isn’t available due to supply constraints.

TY representatives described their plan to the commission as an informational briefing that represented the first public presentation of the proposal after sharing at least parts with some community members, the county and the state Agribusiness Development Corp.

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One commissioner,
Wayne Katayama, whose
experience includes serving on the ADC board and executive positions at sugarcane and coffee plantation companies on Hawaii island and Kauai, expressed optimism about the plan.

“If you can do this,” he said, “I think it would be a monumental shift in water management there.”

However, several West Maui residents at the meeting derided the plan as an
effort to buy approval for interim use of groundwater to irrigate TY’s two golf courses that shut down last year due to water shortages and led to the cancellation of a prestigious PGA tournament slated for last month worth an estimated $50 million to Maui’s economy.

Maui County also appears to be on a different track
for using more treated wastewater for irrigation, and warned that West Maui’s sustainable groundwater yield is close to maximization from existing and planned wells not including two proposed by TY.

Yanai, who is chair and CEO of Japan-based Fast
Retailing Co. and its major fashion brand subsidiary Uniqlo, bought the Kapalua golf courses from MLP in 2009 and 2010 for a combined $74 million.

Kenji Yui, general manager of TY, presented the plan to the seven-member commission, which regulates fresh surface water statewide in addition to groundwater in West Maui, where severe drought is a chronic issue and private water companies dominate distribution.

Under one piece of TY’s plan, an affiliate of a global nonprofit organization would acquire MLP’s 7-mile ditch system and use TY funding to make repairs and add reservoir storage capacity. Then the improved system, which delivers stream water for
irrigation to Honokohau taro farmers and Kapalua users including TY, would be turned over to ADC to own and operate with priority distributions for traditional and customary practices.

In addition, TY proposes acquiring 10 or more acres of farmland in Kapalua and transferring it to ADC for
the agency to establish an agricultural park.

Ben Kudo, a local attorney representing TY, told commissioners that ADC is excited about participating.

Jayson Watts, ADC board chair, said in a statement Wednesday that many details would need to be worked out between TY and MLP but that ADC is committed to supporting water systems for agriculture use and will work with all parties for the best possible outcome for Hawaii.

The nonprofit intermediary would be Peace Winds America, which helped provide relief assistance to
survivors of the 2023 Maui wildfires that killed 102 people and destroyed most of Lahaina.

“I hope we can be part of an innovative and bold solution that’s sustainable here, and one that really helps the entire community,” Jim Gannon, the organization’s CEO, told the commission.

A second piece of TY’s plan involves the company building a pipeline between Kapalua and Lahaina to receive treated wastewater from the county for golf course irrigation in exchange for delivering fresh water from two planned new TY wells to the county. This pipeline would be paid for by TY, given to the county and free up surface water for other users.

“Low stream flow does not have to become a water
crisis as was seen last year,” Yui told the commission. “Our proposed solution will ensure that in the future there is water for the
community.”

Public comments on TY’s plan during Tuesday’s meeting ranged from rebuke to guarded skepticism largely over using groundwater for golf course irrigation.

Honokohau resident Kalei Kauhane was the first to offer public testimony, and unleashed a tirade filled with expletives directed mostly at commissioners but also at a TY representative.

“Brah,” Kauhane said. “A‘ole pono (not right). This no can.”

Kauhane said TY unsuccessfully offered community members $1.5 million, and he suggested the company was trying to buy commissioner support.

Karyn Kanekoa, a Honokohau taro farmer, said she appreciated TY proposing a solution to the water issue. But she also questioned whether the company was trying to fund a cure as a way to secure use of groundwater for golf course irrigation, at least for an interim period, over community
objections and a pending formal challenge.

“I want to believe that they mean well and want to help,” she told commissioners. “But given everything, I hope you understand my skepticism.”

Kudo told commissioners that trust does need to be built with the community, and said TY’s proposal that includes ensuring more water for taro farmers is part of building such trust.

Still, some community members oppose any trade-offs involving water, a public trust resource regulated by the commission.

“The audacity is crazy,” said a University of Hawaii at Manoa student who was displaced by the Lahaina fire and did not sign in to testify. “We will never be on your guys’ side.”

Alfred Medeiros from Oahu also heavily criticized TY’s plan and quipped, “Great pitch, but I know a car salesman when I see one.”

Mahesh Cleveland, an attorney with the environmental law firm Earthjustice, expressed a mixed view on the proposal along with some doubt.

“I really appreciate TY’s optimism about what they can pull off,” he told commissioners. “But I think it’s a lot of, sort of aspirational, talk without a lot of reality to back it up.”

Cleveland praised part of TY’s plan to use treated wastewater, some of which the county has historically injected into the ground, prompting Earthjustice litigation. But he also questioned whether the proposal is aimed at getting around an Earthjustice challenge to TY’s groundwater use for golf course irrigation.

Dawn Chang, director of the state Department of Land and Natural Resources, in August confirmed in writing to MLP as ditch owner that use of groundwater for irrigation is an allowed temporary substitute for surface water during low stream flow periods.

In November, Earthjustice asked for Chang’s determination to be rescinded as unilateral, unlawful, and unfair to other area community members dealing with water shortages. The firm also asked the commission to take action on the issue.

On Tuesday, commissioners advised by a state deputy attorney general decided they couldn’t act on Earthjustice’s request because it wasn’t on the agenda.

Perhaps the biggest impediment to TY’s proposal is Maui County. Kimo Landgraf, deputy director of the county Department of Water Supply, said county officials are negotiating to acquire MLP’s ditch system and the county has its own plan to dramatically increase water reservoir capacity.

Landgraf also told commissioners that the county has plans to expand delivery of recycled wastewater for irrigation use in places closer to Lahaina, and that the area aquifer may not be able to sustainably supply withdrawals from existing and planned wells not including the two proposed by TY.