A Kailua wetland that was used for a sewer construction project baseyard without proper permits is expected to be restored in April, according to the federal Environmental Protection Agency.

That's three years since the initial violation.

The EPA announced yesterday that Frank Coluccio Construction Co. and Castle Family LLC must pay a fine totaling $68,000 for filling wetlands adjacent to Hamakua Stream without federal permits in 2005.

The companies were ordered to develop and implement a plan to remove the fill and restore the habitat and are in the process of getting the necessary permits, said Dean Higuchi, EPA Hawai'i spokesman. The site is located on Hamakua Drive near Akoakoa Street.

"We looked at the plan, what was there before and what they can restore it to," Higuchi said yesterday. "This will bring it back to as close as it originally was and that's the goal."

The violation occurred in conjunction with a $25 million city sewer reconstruction project on Kainehe Street and Hamakua and Keolu drives.

Under an agreement with Castle Family LLC, Coluccio had cleared wetland vegetation at the for a project equipment and materials staging area, according to an EPA press release. In February 2005, the state Department of Health and EPA officials inspected the site and found large piles of excavated soil and rock in the wetland habitat — but neither company had obtained the required permit, the EPA said.

Coluccio filled just under one acre of wetlands that are part of a large system running from Kawai Nui Marsh to Kaelepulu Pond and the Pacific Ocean, the EPA said.

Residents tried to stop the use of the site from the beginning but failed to follow through, said Susan Miller, a neighbor and environmental activist. Miller said she even found other possible locations for the construction baseyard but they were rejected.

Miller said the area is an important water storage basin during heavy rains. The fill has caused flooding in some of the neighbors' yards, especially residents on Akoakoa Street, she said. "When it rains and they get the high tide, they have water coming at them from the back and the front because the high tides make the storm drains back up," Miller said.

"Interestingly, apparently for some people the fill that was put in has stopped the flooding in their backyards but for other people it's made it worse."

Coluccio Construction did not return calls to comment on this story.

Mitch D'Olier, president and CEO for Kane'ohe Ranch Co. Ltd, said he's happy that the situation is being resolved. Kane'ohe Ranch manages property owned by the Castle Family LLC.

"Coluccio will pay for the fine and do the cleanup," D'Olier said. "That was the agreement we reached among ourselves because we weren't in possession of the property at the time of the problem."

The property was leased to Coluccio and the expectation was that the lessee would obtain the proper permits, he said.

"As a major investor in improving the wetland in Windward O'ahu we're unhappy with the situation and we're glad it's being rectified," D'Olier said. "I'm very pleased with everything that's happened. Not pleased that we got into the situation in the first place but I'm pleased with all parties in terms of getting to this point."

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com.