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i i July 13, 2020 Aaron Chung Council Chair and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 SUBJECT: RESOLUTION AUTHORIZING ADDITIONAL EXEMPTIONS FROM j CERTAIN CODE REQUIREMENTS FOR KUAKINI SENIOR LIVING PROJECT TAX MAP KEY: (3) 7- -017:405 I Dear Chair Chung: i Kuakini Highway 75-6099 Corp., a California corporation, is the owner and developer of a proposed rental senior housing and care campus project on a 14-acre parcel in North Kona, Hawaii, TMK (3)7-5-017:005. Hawaii County Council Resolution No. 281-14 (Draft 2) allowed the project to be exempt from certain code and zoning requirements through the Chapter 201H-38 of the Hawaii Revised Statutes. The owner proposes to build an assisted living/memory care facility for about 100 residents; a skilled nursing facility for about 150 residents; and employee housing accommodations to the extent sufficient water capacity is available to the Property. The project is proposed to be built in as many as three phases. I The owner is now asking for additional exemptions, significantly a request to drop a performance deadline, which has already passed. The owner acquired title to the Property in 2013 and leased it on May 31, 2013 to developer West Hawaii Health, LLC to construct and operate an assisted living and skilled nursing facilities with an affordable housing component. On October 2, 2014, the owner terminated the lease, essentially based on lack of progress in the development of the project. Litigation ensued, resulting in the inability of the owner to make further progress on the project until a settlement was reached. This settlement was reached in March 2016. Enclosed is a 201H-38 application which includes a site plan and site description(Attachment 1), responses from State and County agencies that responded to a request for comments (Attachment 2), a draft resolution along with exemption request authorizing certain code exemptions pursuant to HRS Section 201 H-38 that allows the County, with approval of the County Council,to exempt certain code requirements and facilitate the development of this project (Attachment 3). These proposed exemptions have been circulated to various County and State agencies and there were no comments or concerns related to the 201H application. The Office of Housing and Community Development humbly recommends that the 201H-38 exemptions be granted to the owner. 8305dncc