KAHULUI — Owners of the embattled Piilani Promenade and its opponents like the idea of a settlement conference on issues still arising from the former “megamall” project proposed for lands mauka of Kaonoulu Road and Piilani Highway in Kihei.

The idea of a settlement conference with state Land Use Commission Chairman Jonathan Scheuer as facilitator was broached Thursday at an LUC meeting on Maui. Otherwise, the LUC would have an evidentiary hearing to determine whether project developers are in compliance with conditions set on the development more than 20 years ago.

It was then that the LUC approved a land-use change from agriculture to urban with various conditions for development of a 123-lot commercial and light industrial subdivision.

For now, it appears that the main parties involved, landowners Piilani Promenade North and South and opponents Maui Tomorrow Foundation, South Maui Citizens for Responsible Growth and Kihei resident Daniel Kanahele, will participate in a settlement conference, they indicated in interviews after the hearing Thursday afternoon.

“We think it’s a great idea,” said Harry Lake, a representative for the landowners.

Lake, chief executive officer of Koa Partners, which is doing community outreach for the landowners, called the move “positive.”

Thursday’s meeting at the Maui Arts & Cultural Center’s Alexa Higashi meeting room was a continuation of a meeting on the same matters on Wednesday.

On Wednesday, Lake presented new plans in which the development will revert back to its original form as a commercial and light industrial subdivision. Also proposed is a 7.5 acre cultural preserve around a gully and surrounding areas of the 88-acre parcel, but that could be scrapped.

The change is a far cry from the “megamall” and other proposals over the years that included affordable and market-rate apartments, a senior living facility, a medical building, a grocery store and others.

Albert Perez, executive director of Maui Tomorrow, said after the meeting, “We are always willing to talk about resolving things.”

He said he will participate in a settlement conference, but he noted that much time has passed since the original plans were approved.

“Now it’s time to say the old one is pau,” he said of the proposal that is coming up again.

Perez’s group, along with South Maui Citizens for Responsible Growth and Kanahele, have challenged the development for more than six years and feel it is time for the challenge to run its course, which could lead to the land reverting to agricultural use.

The issues over the property and development go back to 1995, when then-owner Kaonoulu Ranch proposed the commercial and light industrial subdivision, and the commission reclassified the property.

In May 2005, the property was sold to Maui Industrial Partners, which sold about 13 acres to Honua`ula Partners in 2009 and the other 75 acres to Piilani Promenade North and South in 2010.

Piilani is owned by Texas-based landowner Sarofim Realty Advisors. In 2011 it hired Eclipse Development to draw up plans for 695,000 square feet of retail space, which sparked outcry from the community. In 2013, the commission ruled that the mall proposal failed to meet conditions set in 1995.

Sarofim parted ways with Eclipse Development and presented a scaled-back version of the project; the commission voted it down in 2017.

Commissioners said then that more studies needed to be done on the overall impact to South Maui, including traffic and cultural concerns.

Lake said Wednesday that there was a September community meeting and there have been many changes and revisions according to community input.

Perez said after Thursday’s meeting that the community did not like the plans at the September meeting and gave the intervenors support to move ahead with their challenge at the LUC.

* Melissa Tanji can be reached at mtanji@mauinews.com.