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Honorable Leningrad Elarionoff, Chair <br />and Members of the County Council <br />HAWAII COUNTY COUNCIL <br />Page 5 <br />December 18, 2003 <br />2. There is a second "test" for a "taking", based on Penn Central Transportation <br />Co. v. New York City, 438 U.S. 104 (1978): the interference with "distinct, investment - <br />backed expectations". Because these cases tend to very fact -specific, it is difficult to <br />formulate a general rule, but successful cases based on zoning and other land use <br />decisions are quite rare. Most involve a use for which the landowner actually had the <br />zoning, but some other regulation prevented the proposed use. In Hawaii law, the <br />landowner has no right to use property beyond that allowed by the zoning, and so the <br />landowner cannot have enforceable investment -backed expectations to use the property in <br />a way that it has not yet been zoned for. None of the private properties in question are <br />currently zoned for urban use, except Kohanaiki, which has essentially been settled. In <br />fact, many of the areas in question are not even in the state land use urban district. I could <br />give an area -by -area analysis to show why "distinct, investment -backed expectations" are <br />not violated by the proposed General Plan map changes, but lack time. Just to give two <br />major examples, the O'oma and Hawaiian Riviera map changes are currently in the state <br />land use conservation district; the owners have other hurdles they must clear before they <br />can do urban development. <br />3. A land use regulation also must not interfered with "vested rights". In Hawaii, <br />a landowner has vested rights when it has made substantial investments, in good faith, in <br />reliance on the "final discretionary permit". One cannot have vested rights if one does <br />not even have zoning. As mentioned in the previous section, none of these properties, <br />except Kohanaiki, are currently zoned for urban use. For most of the properties in <br />question, because they are in the SMA, the "final discretionary permit" for a development <br />would be the SMA permit. None of the properties in question, except Kohanaiki, have an <br />SMA permit to do substantial development. And even if they did, it is part of the <br />Planning Director's job (with advice from Corporation Counsel) to recognize when a <br />landowner's rights have vested, and to take no action that interferes with those rights, <br />unless the County is prepared to pay just compensation. <br />Although the General Plan has the force and effect of law, the General Plan only <br />applies at certain stages in the land use process, and there will usually be no chance to <br />invoke the General Plan once a property has vested rights. To explain further: some land <br />use approvals are called "discretionary" because they require the exercise of discretion <br />and judgment by the body making the decision. Rezonings and SMA permits are <br />discretionary, and must not be granted if they contradict the General Plan, because the <br />county charter and SMA law say so. Other kinds of land use approvals are called <br />"ministerial" because if the application meets certain set criteria, it must be approved. A <br />