HILO, Hawai'i — Property owners continue grappling in and out of court over land needed to finish the Mamalahoa Highway Bypass, as the clock ticks into the 22nd month of the 60-month window for completion.

The road is required as part of a 1997 development agreement between Hawai'i County and 1250 Oceanside, developers of the upscale 665-lot Hoku- li'a subdivision. Sixty percent of the road is completed, as well as improvements to two intersections, but progress has been delayed by legal wrangling.

Attorneys for the Robert Richards and Coupe families are appealing the monetary amount awarded to them in a condemnation ruling issued in May by 3rd Circuit Judge Ronald Ibarra. Friday is the deadline for filing briefs at the Intermediate Court of Appeals in that case.

Another landowner, Caroline Smith, may also enter litigation. Smith, whose deceased father built a home on the final parcel at the top of the proposed bypass route, where the highway would intersect with Napo'opo'o Road and Mamalahoa Highway, now says the road has taken too long and her family's 1999 agreement is no longer valid.

Attorneys for Smith and Oceanside continue negotiating behind the scenes for resolution of that dispute. Smith contends the road's proposed design would endanger motorists and likely result in crashes on her property.

The Hawai'i County Council is scheduled to go into executive session today to discuss hiring outside counsel specializing in bond work to ensure the performance bonds remain current on the project, despite the legal delays and Hokuli'a's financial problems. The bypass road is very important to the county, said Deputy Corporation Counsel Joseph Kamelamela.

"One of our concerns is the bypass," Kamelamela said. "Keeping the bonds will help us achieve that purpose."

The bonds — securing $26 million in construction funding — are not backed by the faith and credit of the county or the taxpayers. But Kamelamela was concerned that Oceanside keep its premiums current and in late August sent a letter to the developer threatening legal action for breach of the development agreement if it didn't make its September payment.

The road is a priority to the development, too, Hokuli'a CEO John De Fries has said. Financial restructuring currently under way has to include funding to complete the road as required under the development agreement, he said.