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1 Dr. Holeka Goro Inaba, Council Chair and Members of the County Council December 22, 2025 Page 2 The Commission concurred with the Planning Director's following reasons for a favorable consideration of the request. Criteria for granting the favorable recommendation are shown below in bold print. The applicant, Kona Country Club, Inc., is requesting a ten (10)-year time extension to Condition D (complete construction) of Ordinance No. 20-65, which was approved by the County Council and effective on September 15, 2020. The applicant initially proposed to develop a maximum of sixty (60) single-family and multiple -family residential units and related amenities with the intent of having them used as vacation rental units. In trying to address the various rezoning conditions such as water, archaeology, and emergency access, the plan was scaled back to twenty-nine (29) single-family dwellings with related amenities. The request for a ten (10)-year time extension to complete construction of the Kona Country Club is, in part, due to delays caused by inability to secure project financing; the filing explains that financing "has been stalled due to the vagaries of the global economy," and those challenges were later compounded by the COVID-19 pandemic, which disrupted market conditions and the ability to secure capital for a resort -oriented housing project. The project was expected to be completed by September 15, 2025, however, the developer faced unforeseen challenges in securing necessary funding. In parallel, a lengthy archaeological compliance process, including preparing and obtaining approvals for the Data Recovery, Burial Treatment, Preservation, and Monitoring plans (2013-2014) and later acceptance of the Data Recovery Report in January 2025, delayed when construction plans could be finalized, so no physical construction ever began. Construction of the proposed project is anticipated to begin within five years following the approval of this amendment, is projected to finish by December 30, 2035, and is estimated to cost a minimum of $390 million. The non-performance of timed conditions 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 of their fault or negligence. Since the change of zone ordinance was last amended in 2020, the applicant has been diligently working on satisfying conditions of approval, the most time consuming of which were completing archaeological and cultural resource mitigation plans. In accordance with Condition M of the Change of Zone Ordinance, the applicant completed an updated Archaeological Inventory Survey (AIS) approved by the State Historic Preservation Division (SHPD) in 2012 and subsequently completed several mitigation plans related to archaeological and cultural features found on the site (further discussed below in the DASH/ Ka Pa`akai Analysis).