The state's search for a potential high school site in Kihei, Maui, has led to a surprise offer from Japanese billionaire Genshiro Kawamoto: a donation of 50 acres and $5 million.

The Department of Education notified the real estate tycoon that part of a 147-acre site he owns on Maui is among seven sites identified for further study as a potential school site, according to a copy of a Jan. 12 letter to Kawamoto.

Kawamoto faxed his response to Schools Superintendent Pat Hamamoto on Monday, but there are some requests in the offer that Hamamoto said go beyond her department's authority to meet.

In Kawamoto's offer, he requests that zoning on the land be changed to residential use so he can develop a long-planned residential subdivision.

Also, Kawamoto wants to connect the subdivision to a water, sewer and electricity infrastructure the state would build for the school if his offer is accepted.

"I thank him for responding," Hamamoto said. "While the offer is there, there is still a lot to do to evaluate the offer. He requests actions that we don't have the authority to grant."

Kawamoto, in a statement faxed to The Advertiser, said, "I strongly hope that my offer will be accepted" and that he felt it was "worth putting all my efforts to support this project."

The land Kawamoto has offered to donate is part of 147 acres he bought for $19 million in 1989 after being encouraged by then-Mayor Hannibal Tavares to develop affordable housing on Maui.

Kawamoto proposed building 1,000 homes on the site, but plans stalled after state and county officials tacked on expensive conditions to his zoning application. Conditions included DOE efforts supported by Maui Council members to obtain a land donation or a contribution of up to $7.3 million for a new school.

In 1996, Kawamoto sold the land for $1.5 million, but two years later bought it back for $1.15 million.

In 2001, the billionaire rekindled plans for the Kihei project, stating through his attorney that he intended to develop 830 homes and sell 470 of them at prices affordable to buyers based on the county's median income in 1990.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.