Gov. Neil Abercrombie wants the Legislature to repair flaws in the Public Land Development Corporation or find another way to shore up state facilities and generate revenue for natural resources.

In a statement released Thursday, the governor said that proposed administrative rules for governing the agency may not be enough to quell public concerns about the PLDC’s powers.

In November, amid intense criticism from PLDC opponents, he asked William Aila, head of the Hawaii Department of Land and Natural Resources, to meet with critics. The PLDC was in the process of developing rules to govern the agency. But many environmental and Native Hawaiian groups said that the rules weren’t going far enough to restrict the agency’s broad powers.

On Thursday, Abercrombie reiterated his strong support for the legislative intent of Act 55, which created the PLDC, but said that public support for the agency is important if it is going to move forward successfully.

After “reviewing the information compiled by the DLNR and suggested rule and regulation proposals, I believe the administrative rules process may not be able to reconcile existing support with opposing views to the extent necessary to satisfy outstanding concerns,” said Abercrombie in a statement. “The Hawaii state Legislature may need to adjust Act 55 so that its good intention can be implemented appropriate to the goals of this law. Public understanding and support are essential. If the Legislature cannot achieve this outcome, the possibility of repeal will ensue. I will take that outcome into consideration but we cannot walk away, should that occur, without a solution that moves us forward.”

The agency, created in 2011, is designed to enlist the help of private companies to develop and shore up state lands and facilities. It acts as a development arm of DLNR, with revenue from the PLDC going toward the department’s budget.

Abercrombie has said that the agency could be used for improving the state’s schools or revamping the dilapidated Waikiki Natatorium.

But the PLDC has been controversial from the start, with critics concerned about its broad power to develop everything from hotels to parking lots on state lands, and its exemptions from county approval processes.

In past months, Abercrombie came out strongly behind the PLDC, enlisting top advisors to appease public criticism and calling opponents “the usual suspects.”

But in November, the governor signaled he was taking a more cautious approach toward the PLDC, calling on Aila to meet with stakeholders.

Aila said Thursday evening that since November he has met with about 50 people representing groups that have both opposed the PLDC, as well as supporters, such as labor unions.

He said that some of the major concerns with the PLDC cannot be addressed through the rule-making process. Rather, the Legislature will have to reconfigure the agency.

He said critics want to add members to the PLDC board with experience in environmental and Native Hawaiian issues, they want protections for conservation lands codified into law and exemptions to county zoning laws and building codes removed.

All of those concerns would require legislative action, he said.

In the meantime, he said that the PLDC is moving forward with adopting rules, although more slowly with the awareness that the agency may be significantly amended this legislative session.

“It doesn’t make sense to get too much further into the rule-making process if there are going to be significant amendments that would impact the rules that we are considering now,” he said. “I don’t want to waste people’s time.”

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