Committee backs reappropriation for Kula Agriculture Park expansion; project still needs roughly $20 million

The Maui County Budget, Finance & Economic Development Committee recommended first reading of two bills that would amend the FY2026 budget and bond authorization to reappropriate $5,862,123 toward expansion of the Kula (Upcountry) Agricultural Park, commonly called UMAP.

Budget Director Leslie Milner told the committee that the reappropriation is intended to satisfy the county match requirement tied to $10 million in reimbursable state general obligation bonds previously allocated to the project. The administration said the county initially encumbered about $4.14 million; roughly $5.86 million lapsed and the bills (Bill Nos. 127 and 128, 2025) would restore that appropriation so the county can draw down state funds.

Dan Shupack, the county CIP coordinator, provided a multi‑phase timeline and cost overview. He said the project consists of four phases: Phase 1 — construction of a booster pump station at Reservoir 40 (under construction), Phase 2 — a proposed 2.4 million‑gallon concrete reservoir at the existing Cool Ag Park, Phase 3 — a 12‑inch transmission main linking the reservoir to the new park, and Phase 4 — the on‑site development of the new 262‑acre ag park with roadways, irrigation distribution laterals, laterals, and electrical service. Shupack said design and construction estimates for the full program total roughly $44.3 million, and the county still needs about $20 million in additional funding to complete all phases.

Shupack said the reservoir design is complete and will be bid this fall; median construction estimates for that reservoir are higher than budgeted (he cited a median estimate around $22.7 million), so the county may instead bid the ag‑park site improvements first and defer the reservoir if bids return too high. The state matching funds for this project have a lapse date of June 30, 2026, which places schedule pressure on the county to use the allocation.

Committee members focused questions on water supply, sequencing and cost escalation. Deputy Director Landgraf (Department of Water Supply) said water for the project would come from an East Maui ditch intake and be routed through the booster pump and planned reservoir; he noted the county’s current revocable permit provides 5.25 million gallons per day (MGD) to share among existing parks and the new project and that staff plan to request a larger allocation (Landgraf said the county would seek “somewhere around 12” — a planning target — during permit discussions later this year).

Director Arcee (Department of Agriculture) said the new 262‑acre park is planned to provide about 28 lots averaging roughly 5 acres each for farmers focused on organic production; rules for allocation are not yet developed and will follow park establishment. Several members asked about on‑site production figures and jobs; staff said current production data at the existing Cool Ag Park is limited because some producers did not provide production numbers in earlier surveys.

Public comment included a request from JC Law for a count of leased lots and questions about jobs and food security; an anonymous commenter expressed cultural support for the project.

The committee voted to recommend passage on first reading of Bill 127 (2025) and Bill 128 (2025). The recorded tally on the committee recommendation was six yes votes, motion carries; three members were excused. Staff said they would pursue additional federal and other grant opportunities (including an EDA implementation grant) and continue design and permitting work; estimated overall project completion is 2028 if funding and permits proceed as planned.

Why it matters: The expansion aims to provide irrigated lots, infrastructure and water security for Upcountry farmers and to bolster local food production. The project has major capital cost, schedule and water‑supply implications for county infrastructure and budgeting.

What’s next: Committee staff will forward the bills to the full County Council; administration will continue grant applications and complete design and permitting tasks and prepare to bid the reservoir or ag‑park work depending on bid results and available funds.