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County hears detailed proposal to buy Lanaiapoku Irrigation Company water assets for $1.5 million
Summary
A Department of Water Supply presentation described LIC's system, 416 customer connections and 2025 production of 497,000,000 gallons; the county-recommended purchase price was $1,500,000 with $2.9 million in requested post-closing improvements.
The Department of Water Supply presented technical and financial details of a proposed purchase of the Lanaiapoku Irrigation Company (LIC) system, describing sources, storage, customer connections and needed post-purchase repairs.
Agency staff said the LIC system consists of two stream diversions, shaft wells, reservoirs and about 19.75 miles of water mains serving 416 customer connections; "In 2025, they produced 497,000,000 gallons of water," the presenter said. The county's proposed purchase price is $1,500,000; an appraisal was cited at $955,000.
The presentation included a list of post-closing improvements the county will seek from the seller: dredging and realigning two reservoirs ($405,000 and $450,000), fencing, permanent power for a well (about $500,000), transmission-line upsizing ($950,000) and communications/automation ($175,000), with a total estimated cost of $2,900,000.
Committee members raised questions about water rights, title and the relationship between asset purchase and underlying water entitlements; public commenters later pressed the committee about saltwater intrusion and long-term sustainable yield in Lahaina's aquifer. The committee later voted to move to executive session to discuss negotiations, citing HRS §§92-5(a)(3) and 92-5(a)(4).
