������Ƶ

State regulators on Monday granted interim approval for the transfer of Lanai’s major utilities from billionaire owner, David Murdock, to billionaire buyer, Larry Ellison.

The transfer clears the way for the deal to close on Murdock’s sale of the island by a Wednesday deadline.

But the Monday decision is not escaping criticism from local residents and community groups.

Castle & Cooke, Murdock’s management company, warned the Hawaii Public Utilities Commission that if it didn’t grant expedited approval by Tuesday, it could jeopardize the sale of the island. And if this were to happen, Castle & Cooke said it might not continue to fund the island’s operations.

“Buyer must be in place as owner by the June 27, 2012 closing date, or there will be no commitment to provide funding in the ordinary course of business,” wrote Castle & Cooke in PUC filings.

The company said that if the sale didn’t go through it could take years to find another buyer, potentially endangering the economic future of the island.

While the PUC gave the interim OK for the transfer of Manele Water Resources, Lanai Water Co. and Lanai Transportation Co. to Ellison, it reserves the right to deny the transaction when making a final decision.

Two community groups, Honolulu-based Life of the Land and Lanaians for Sensible Growth, have both criticized the speedy approval.

Henry Curtis, executive director of Life of the Land, sent out a press release last week noting that the public is supposed to have 20 days — not just a week — to intervene in proceedings before the PUC.

“Once more Castle & Cooke has proven (its) disrespect for the laws,” said Curtis in the release. “We live in a democracy. Castle & Cooke should not be permitted to bypass the public review process.”

And this week, Lanaians for Sensible Growth also registered its objections.

“There is no explanation for the speed (Castle & Cooke Resorts) is seeking to pass on the utility assets and operations, aside from a vague reference ‘that the deal’ has to close tomorrow or it’s in jeopardy,” Butch Gima, the group’s president, said in a press release. “We’ve been trying for months, as has the community, to determine if the rumored sale was a go or not, but no one would talk to the community.”

Harry Saunders, executive vice president of Castle & Cooke, did not respond to a request for comment. It’s not clear why the company didn’t file the the request to transfer the utilities earlier to be in compliance with a required 20-day public review period.

As part of the approval, Ellison has committed to investing $10 million in the island’s water and wastewater systems within the next five years. But the details of that investment aren’t known, says Gima, making the hasty approval of the condition worrisome. Lanai is struggling with a limited water supply and Lanaians for Sensible Growth has been closely involved in policy decisions about how to allocate the island’s water resources. Members of the group served for more than a decade on the Lanai Water Advisory Committee, which recently produced a county-approved Water Use and Development Plan.

Gima said that he didn’t know how the sale might impact the plan which is why it was hoping for more information and a chance to be involved in utility discussions.

“We are astonished that the PUC could possibly complete the required due diligence in just eight days, let alone even consider doing so,” said Gima in the release.

The group has filed a motion to intervene in PUC proceedings which will continue as state regulators consider final approval of the transfer.

Sean Mikell, a spokesperson for the PUC said that the interim approval would not preclude public involvement in the process.

“It’s not affected in that there is still the ability to intervene and participate,” he said. “Like any other docket the public has the chance to get involved in the docket.”

He said that the PUC has received public comments on the matter, but he wasn’t sure how many.