A resolution to support the development of the West Maui Hospital and Medical Center appears stalled in the Maui County Council after testimony from Mayor Richard Bissen’s administration.

County CEO Josiah Nishita said Bissen supports a West Maui hospital, but Nishita expressed concern about the county acting as guarantor and approving a $20 million special purpose revenue bond for the medical facilities because of “general questions” including a prior statement that the investment presents low risk.

“I’m not aware that our bond attorney views this as a low-risk investment.” Nishita said in a meeting on October 30. “In fact, I think it’s quite the opposite.”

Council members postponed voting on the resolution. They are scheduled to refer the matter to the county’s Disaster, Resilience, International Affairs and Planning Committee on Friday.

Committee Chairwoman Tamara Paltin plans to have further conversations with the developer, Newport Hospital Corp., as well as Nishita and state and county finance officials.

Several West Maui groups, along with council members, support the development of a medical center that can treat trauma and stroke victims in a timely manner and avoid the 45- to 65-minute drive to Maui Memorial Medical Center in Wailuku .

Council president Alice Lee asked Nishita to tell her what he proposed to help develop the hospital.

“Tell us how this can be done.” she said. “How do we do it? “There has to be a way.”

West Maui Hospital Foundation board chair JoAnne Johnson-Winer said she has been talking to the Bissen administration for a year and a half, and this is the first time she has heard that the administration has reservations because of the risk .

Johnson said the previous administration’s chief financial officer and bond attorney had no problem supporting the special purpose revenue bond.

Board consultant Charles Slaton said hospital representatives never met with Nishita to discuss their concerns about the risk.

“We were really surprised” Slaton said.

Nishita said he is willing to work with West Maui Hospital officials to move the issue forward and return to the committee to continue discussions.

In 2023, the state legislature passed House Bill 1255, which authorized the sale of a special purpose revenue bond by West Maui Hospital and Medical Center to fund its development.

The bill allows investors to receive state tax-free gains from special purpose revenue bonds.

Hospital officials say the cost of developing the 14.9 acres of land on Kaka’alaneo Road in Kaanapali has increased significantly, estimating the price at $120 million to $140 million.

Under the Newport Hospital Corporation, West Maui Hospital officials received a state health certificate of need approval in 2009 that projected a $45 million project, providing emergency room services combined with operating room services, radiology, a clinical laboratory and pharmacy, along with medical and surgical services. beds.