HILO, Hawai'i — The Hawai'i County Council yesterday unanimously rejected a proposal to ban retailing "supercenters" on the island, with members of the council citing calls from constituents who told them they want to be able to shop at a proposed new Wal-Mart with a full grocery section.

Keaukaha Councilman Stacy Higa, who introduced the measure to ban supercenters, ended up voting against his own bill.

Higa said he believes the impacts on other local businesses are significant when a supercenter such as the proposed new Wal-Mart opens, but "you need to be able to look at what's right for your community, what's right for the people who live in your community.

"There are people out there who really are crying for that extra help, to be able to have their dollars stretch that little extra, families, whether it's seniors or single ... moms."

Wal-Mart announced earlier this year it is negotiating with the state Department of Hawaiian Home Lands for a lease on 15.5 acres of vacant land behind its existing Hilo store, where the company plans a new "supercenter" store with a full line of groceries.

A spokesman for Wal-Mart said the company then plans to either lease out its existing store, or tear down the old store to provide more parking for the new store.

Higa's bill was amended by the council earlier this month to ban supercenters only on Hawaiian Home Lands, but that proposal was also voted down by the council yesterday.

Hamakua Councilman Dominic Yagong cited a letter from Big Island Corporation Counsel Lincoln Ashida that concluded the county does not have the authority to restrict land uses on Hawaiian Home lands.

The letter explains that authority over land use on homelands rests with the Hawaiian Homes Commission.

The council heard testimony earlier in the afternoon from critics and supporters of the supercenter.

Some residents said the council should back off and allow Wal-Mart to develop the supercenter. Supporters of the project predicted that free-market competition would drive down Big Island grocery prices.

Others urged the council to ban supercenters on the entire Big Island, saying the proposed new store would hurt or wipe out local small businesses.

"I say, let's support the local farmers," said Pahoa resident Paul Campbell, who argued Wal-Mart would import products and damage local producers. "This is not another competition, this is a competition crusher."

"This is not the Mainland, this is not Australia, and I oppose any supercenter," Campbell said.

Other critics said housing for senior citizens had been proposed for the Hawaiian Home Lands where the supercenter would be located, and said a kupuna housing project would be a better use for the land.

But Doug Arnott, a tour operator and Keaukaha resident, said it is Big Island retailers are behind the effort to block the supercenter because they want to limit competition.

Arnott urged the council to look at the crowded parking lot of the existing Hilo Wal-Mart and "see that for what it is — voters in favor of a superstore."

"That parking lot full of vehicles is basically people who are going to vote you out of office if you continue with this" bill, Arnott told the council, and received a round of applause from the Hilo audience.

Hawaiian Homes Commission Chairman Micah Kane has said the county does not have any zoning authority over Hawaiian Homes, and has argued that a council ban on supercenters would have no effect.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com.