The developer of the Big Island's luxury Hokuli'a subdivision no longer controls the project, though he is continuing to look for funding so he can continue the work.

A New York firm that specializes in the restructuring of distressed businesses has taken over Hokuli'a.

The project's creditor bank is also looking for investors to buy the 1,550-acre Hokuli'a property and the undeveloped, neighboring 660-acre Keopuka parcel.

The Hokuli'a project includes plans for more than 600 home lots ranging in price from $1 million to $8 million, a Jack Nicklaus-designed golf course, a spa, tennis courts, a beach house and a club.

Construction on the Hokuli'a project began in early 1998, but was halted for two years starting in 2003 when Circuit Judge Ronald Ibarra ruled it violated state law on agricultural land use.

Building resumed after developers reached a settlement with petitioners that reduced the number of home sites to 665 from the 810 approved by the county.

Arizona developer Lyle Anderson revealed the directorship change on Friday after telling residents he was no longer involved in management but was still the named owner of the property.

Yesterday he released a statement saying his companies no longer controlled Hokuli'a, as well as three other projects in Arizona, New Mexico and Scotland.

"It is my hope that either my companies, an entity in which we are involved, or even another reputable developer will soon be involved at these locations," Anderson said in the statement.

"I believe that what is needed is hard work and patience in these economic times."

Marotta, Gund, Budd and Dzera LLC, or MGBD, is Hokuli'a's new sole director. Marotta, Gund is a restructuring and turnaround adviser.

Anderson said his creditor, the Bank of Scotland, has the option to take ownership of the property or sell it.

Anderson, who said he began looking for more investors as long as two years ago, said he would continue to search for partners who would be willing to finance the project to its completion.

Anderson said the management and staff of Hokuli'a would be retained.

An MGBD spokesman said all past commitments, including the Mamalahoa Highway bypass and the Hokuli'a Foundation, would be honored by any new owners.

About a third of the 665-lot luxury golf course subdivision makai of Kealakekua is sold.

But work on infrastructure, including a $10.75 million clubhouse and new house sites, was halted in May as a result of the worldwide credit crunch.

Dixie Kaetsu, Hawai'i County managing director, said the Mayor Harry Kim administration is confident that any changes in ownership would not have an impact on the obligations of Hokuli'a to complete the bypass highway.

The Associated Press contributed to this report.