A mortgage lender has withdrawn its foreclosure lawsuit against developers of a controversial proposed commercial development near a popular black sand beach in Kau on Hawaii island.

The order stipulating dismissal of all claims by S M Investment Partners against Black Sand Beach LLC was issued Wednesday by Hilo Circuit Judge Henry Nakamoto.

The dismissal was with prejudice, which means the lender is not allowed to refile the claims in this case.

Hilo attorney Lincoln Ashida, who represents Black Sand Beach, said his clients have paid off the $3.4 million mortgage on the 147-acre property inland of Punalu‘u Bay in Kau, and there will be no public auction of the property.

”They own the property free of any encumbrances or outstanding loans or anything,” Ashida told the Hawaii Tribune-He

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