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i DocuSign Envelope ID:36908555-2D80-4AE9-BE09-C9FE47FACAC4 I I Aaron S.Y. Chung, Council Chair j and Members of the County Council County of Hawaii Page 2 I I I The 29.92-acre rezone area is a portion of an approximately 70-acre area titled "Palamanui Business Park" under the Project District designation of the Palamanui Development on the subject property. The applicant plans to use the area for wholesaling and distribution uses, which the Project District zoning does not permit. The 29.92-acre area is proposed to be subdivided into approximately 35± lots ranging in size from 20,000 to 62,000 square feet to sell or develop into uses permitted under the MCX zoning. The applicant anticipates developing distribution and wholesaling uses, as well as retail and office uses on the site. A mix of buildings from 5,000 square feet to 40,000 square feet is anticipated. The cost of the initial improvements is estimated at approximately $3 million. Individual projects on the lots will be constructed in the future at a rate of approximately $4-5 million each year. The Palamanui Business Park is anticipated to accommodate approximately 75-95 businesses. Parking will be provided on the individual lots as required by the Zoning Code. Palamanui, the master developer, will provide subdivision improvements including curb, gutter, sidewalks, and on-street parking. The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicants, successors or assigns, and that are not the result or their fault or negligence. Since August 2013, the applicant has been consistently meeting with the Planning Department through its Kona CDP Design Center and has spent considerable time and money to create an updated Master Plan or "Regulating Plan", which in 2019 was determined by the Design Center to be consistent with the Kona CDP. According to the applicant's "Regulating Plan" submitted with a concurrent request to amend Project district Ordinance No. 09 132, development of the Business Park will occur during Phase III-N. Because development of the Business Park is not anticipated to begin until Phase III of the overall Palamanui Development, the Planning Director recommends providing a ten (10)- year time extension to secure final subdivision approval rather than the standard five years requested by the applicant. Additionally, to ensure connectivity between the University Village and Business Park, the Planning Director recommends University Drive between Queen Ka`ahumanu Highway and Ane Keohokalole Highway and the University Drive-Queen Ka`ahumanu Highway intersection be completed prior to final subdivision approval. Since the MCX zoning was approved in 2009, the applicant has taken several steps in developing the property in accordance with the terms or conditions of approval, including providing road, water and electrical infrastructure, preparing a water master plan, rough grading University Drive, which provides access to the rezone area, and implementing the Integrated Natural Cultural Resource Management Plan to preserve natural and cultural resources on the property. Thus, the non-performance is the result of conditions that could not have been foreseen and were beyond the control of the applicant. Approval of this request is not be contrary to the General Plan or Zoning Code nor with the original reasons for granting the Change of Zone. There have not been any significant changes to the General Plan for this area since the change of zone was approved in 2009. At that time, the General Plan LUPAG Map designation for the property was the same