The state and Campbell Estate are embroiled in a dispute over ownership of about 19 acres of land in Kapolei that hinges on whether a 20-year-old agreement is valid.

The Land Use Commission in 1987 reclassified zoning the estate's property in Kapolei from agriculture to allow for development of the "second city" on condition that it "unconditionally convey to the state 40 acres," state Attorney General Mark Bennett said yesterday.

Bennett noted, however, that 18 months later the commission approved a condition that the 40 acres would be turned over to the state only if it developed the land by Dec. 31, 2006.

The state so far has developed about 21 acres, Bennett said, and that Campbell Estate is withholding the additional 19 acres.

"We tried to find out why this was done," Bennett said of the second condition. "There's no reason why the state would agree to change the claim condition. We believe it is illegal and that the original condition is still in force."

The property involved is around Kapolei Town Center, Bennett said. The state already has developed the Kapolei State Building there and the state Judiciary is planning a courthouse complex on the property.

Theresia McMurdo, public relations manager for Campbell Estate, said, "We believe the agreement is valid and due to pending Land Use Commission action, we cannot comment further."

The state filed a petition in court seeking the property.

Reach Rod Ohira at rohira@honoluluadvertiser.com.