From my recollection of when Kyle Rys ran the LK&P, a large portion of the right of way is not owned and never had been owned by the railroad. It was owned by a developer of the Maui resort hotels. In the late 80's there was talk about what would happen when the lease expired as the land that the RR occupied was worth may more than it did in 1969. There were some proposals to move much of the RR "up country" into the hills.
It would seem the lease has finally expired and the land has changed owners, probably several times over the years. The present owners do not seem to be narrow gauge RR fans.