HomeMy WebLinkAboutCOM 0328.000 1996-1998 •!7.4'..
r~;`~ William G. Davis
Managing Director
Stephen K. Yamashiro
Mayor Henry Cho
A Deputy Managing Director
ft~~ixzt~g Ixf ~ttfuttii
25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 (808) 961-8211 Faz (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suite 103 Kailua-Kona, Hawaii 96740
(BOB) 329-5226 Paz (808) 326-5663
May 20, 1997
cn
Honorable James Y. Arakaki, Chairman
On ~
and Members of the County Council en Y
County of Hawaii ~ ~
25 Aupuni Street ~
Hilo, HI 96720
T
t-.
Dear Chairman Arakaki and Members: ° 7
o
Change of Zone Ordinance No. 84-23, as Amended by
Ordinance Nos. 84-42, 88-4, 90-62, 91-96, 93-26 and 94-34
Applicant: Gamrex, Ina (Formerly Gamlon Corporation)
Request: Amendment to Condition I
Tax Man 7-6-214 9-13 and 15-17
As required by Chapter 4, Sec. 5-4.3(C), Hawaii County Charter, transmitted herewith for the
County Council's consideration and action is the Planning Commission's letter and enclosures
regarding the above-referenced request.
Sincerely,
r~
tephen K. Ya ashiro
Mayor
AK: syw
LGamre0l.MAY
Enclosures
cc: Planning Commission
REZ 470
Ci 1I ~ 3 u,hy-a. A[a
~EAY 2 1 1381
1Lex. iY•.to__--.__._.._._.-.._....._-.~...
OtY o! M
~•~~f
Ji~
Stephen K. Yatnashiro
Mayor
>.:~r
'~••......y
h O! Mr
~II1TI'Cfu II~ ~tY~1TtYTi
PLANNING COMMISSION
25 Aupuni Street, Raom 109 • }lllu. Hxwvii %720-4252
(SOB) %48288 Fxx (808) %1-%IS
ll~'* ? _ 1997
Honorable James Y. Arakaki, Chairman
and Members of the County Council
County of Hawaii
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Arakaki and Members:
Change of Zone Ordinance No. 84-23, as Amended by
Ordinance Nos. 84-42, 88-4, 90-62, 91-96, 93-26 and 94-34
Applicant: Gamrex, Inc. (Formerly Gamlon Corporation)
Request: Amendment to Condition I
Tax Man Kgy• 7-6-21:4. 9-13 and 15-17
The Planning Commission, after a duly held public hearing on May 1, 1997, voted to
recommend for your approval the proposed legislative bill to amend Condition I (submit plans
and secure Final Plan Approval for RM zoned area) of Ordinance No. 84-23, as amended by
Ordinance Nos. 84-42, 88-4, 90-62, 91-96, 93-26 and 94-34. These ordinances reclassified
lands from Unplanned (U) to Multiple Family Residential (RM-5) and Single Family
Residential (RS-15) zoned districts at Holualoa 1 and 2, North Kona, Hawaii.
The Commission concurs with the following Planning Director's reasons for recornmending
favorable consideration of the request.
The purpose of this request is to amend the performance requirements of
Ordinance 84-23, as amended by Ordinance Nos. 84-42, 88-4, 90-62, 91-96, 93-26 and
94-34 (REZ 470) to ensure that the applicant is not in violation with the time
conditions.
The inability of the petitioner to comply with the requirements of Condition I of
Change of Zone Ordinance No. 84-23, as amended by Ordinance Nos. 84-42, 88-4,
Honorable James Y. Arakaki, Chairman
and Members of the County Council
Page 2
90-62, 91-96, 93-26 and 94-34 (REZ 470) are a result of conditions which could not
have been foreseen or are beyond the control of the petitioner.
In their letter of February 5, 1997, to the Planning Director, the applicant has
requested amendment to Condition I. The applicant has stated that "the RM zoned
area, drainage (flood control) improvements and compliance with affordable housing
agreement are all contingent on the construction of the drainage system.
"Work at Gamrex's expense has been on going on the flood control system for
over seven (7) years. The drainage improvements required run from Gamrex's Mauka
(East) boundary along the abandoned railroad right-of-way down through the RM
zoned area on lands owned by Gamrex and the County of Hawaii. The improvements
then pass under both Queen Kaahumanu and Kuakini Highway through existing
culverts and run Makai (west) down through lands owned by Gamrex to existing
improvements which start at the Kupuna Street bridge (culvert) in Kalani Makai
subdivision." In addition, Gamrex has experienced a very slow year. Sales were well
below projections and market activity was at its lowest ebb. While real estate activity
was robust on the Mainland, Hawaii's real estate markets were in decline throughout
the State. Home and land prices on the Big Island, especially in Kona are now at 1979
price levels. There price reductions and slow market conditions have impacted the
development. In view of these changing conditions Gamrex undertook a complete
project review. This review included extensive market analysis and project orientation.
All model home and vacant lot inventories were repriced and a marketing program was
developed and is presently in operation.
Approval of this amendment request would not be contrary to the General Plan
nor would it be contrary to the original reasons for granting the change of zone. The
applicant has continually worked to secure the necessary approvals from the Federal
Emergency Management Agency (FEMA) and the Department of Public Works for the
required drainage improvements within and beyond, the boundaries of the project site.
The applicant's ability to secure Final Plan Approval of the RM zoned lands is subject
to the approval of the drainage improvements. Over the many years the applicant has
been before the Commission, the applicant has shown perseverance in managing the
many requirements which they have and to deal with. The applicant has either
complied with, or initiated the process of compliance with other conditions of approval
within the subject ordinance.
For your favorable consideration, an amendment to Ordinance No. 84-23, as amended by
Ordinance Nos. 84-42, 88-4, 90-62, 91-96, 93-26 and 94-34 is transmitted.
Honorable James Y. Arakaki, Chairman
and Members of the County Council
Page 3
We are enclosing a copy of the application and a copy of the staff background for your
information.
Sincerely,
Kevin M. Balog, Chairman
Planning Commission
AK: syw
LGamre02. PC
Enclosures
cc: Mr. Gregg Kashiwa
Department of Public Works
Department of Water Supply
West Hawaii Office
Kazu Hayashida, Director/DOT-Highways, Honolulu
BGamrcp l . emm-04/25/97
COUNTY OF HAWAII PLANNING DEPARTMENT
BACKGROUND REPORT
GAMREX, INC. (FORMERLY GAMLON CORPORATION
AMENDMENT TO CONDITION I
CHANGE OF ZONE ORDINANCE NO. 84-23, AS AMENDED BY ORDINANCE
NOS 84-42 88-4. 90-62. 91-96. 93-26 AND 94-34 (REZ 4701
GAMREX, INC. (formerly Gamlon Corporation) is requesting an amendment to
Condition I (submits plans and secure Final Approval for RM zoned area) of Ordinance
No. 84-23, as amended by Ordinance No. 84-42, 88-4, 90.62, 91-96, 93-26 and 94-34. These
ordinances reclassified lands from Unplanned (II) to Multiple Family Residential (RM-5) and
Single Family Residential (RS-15) zoned districts at Holualoa 1 and 2, North Kona, Hawaii,
TMK: 7-6-21:4, 9-13 and 15-17.
GF. .RAL• INFORMATION
1. Ownership: Gatnrex, Ina (formerly Gamlon Corporation) is the fee simple owner of
the subject properties.
2. State Land Use Amendment: On December 13, 1983, approximately 124.66 acres
(Increment "I") of land were reclassified into the Urban District by Decision and Order
dated January 26, 1984. On May 10, 1993, approximately 49 acres ("Increment "II")
of land were reclassified into the Urban District.
BACKGROUND INFORMATION
3. May 15, 1984 - Effective date of Ordinance No. 84-23, which rezoned approximately
103 acres of land from Unplanned to RS-15 and 70 acres from Unplanned to RM-5.
Applicant proposed 215 (15,000 square foot) residential lots and 475-unit multiple
family residential development within two increments. Increment I would involve 59.5
acres of the rezoned lands and 42 acres of the RM-zoned lands.
4. July 31, 1984 -Effective date of Ordinance No. 84-42, which amended Ordinance
No. 84-23 to accommodate 1.53 acre inadvertently omitted from metes and bounds
description.
Attach. C-328 (B-93)
5. March 27, 1985 -Preliminary plans submitted for the subdivision of Increment I
(Unit 1-A & 1-B) of RS-zoned area.
6. August 1, 1985 -Tentative Subdivision Approval for Units 1-A and 1-B granted.
7. January 18, 1988 -Effective date of Ordinance No. 88-4 allowing extension of time
until January 18, 1989 to submit development plans for Increment 1 of RM zoned azea
as required by Condition I.
8. January 25, 1989 -Director grants administrative extension of time until January 18,
1990, in which to submit development plans for Increment I of the RM-zoned area as
required by Condition I.
9. May 27, 1990 -Effective date of Ordinance No. 90-62, which amended Conditions G,
I and S to allow extension of time until May 27,1991 in which to secure Final
Subdivision Approval for Increment I of RM zoned area (Condition I).
10. October 1, 1991 -Effective date of Ordinance No. 91-96, which granted another
extension of time until October 1, 1992, in which to comply with Conditions G and I.
11. May 27, 1992 -Final Subdivision Approval of Unit 1-A (391ots) of Increment I of RS
zoned area granted.
12. The remainder of the Rezoned portion of Increment I, now identified as Unit 1-C
(32 lots) is still awaiting Final Subdivision Approval.
13. April 7, 1993 - Effective date of Ordinance No. 93-26 which amended Conditions G
and I (extensions of tithe to secure Final Subdivision Approval for the first increment
of the RS-zoned azea and to submit plans for the development of the first increment of
the RM-zoned azea) of Ordinance 84-23 as amended by Ordinance Nos. 84ji2, 88-4,
90-62 and 91-96.
14. April 5, 1994 -Effective date of Ordinance No. 94-34 amended Conditions F
(effective date of second increment for RS zoned area) and H (effective date of second
increment for RM-zoned area) of Ordinance 84-23 as amended by Ordinance Nos.
84-42, 88~, 90-62, 91-96 and 93-26. (See Exhibit A -Ordinance No. 94-34)
-2-
15. Apri13, 1995 -Administrative extension granted by the Planning Director to Condition
No. I (submits plans and secure Final Approval for RM zoned azea) of Ordinance No.
84-23, as amended by Ordinance No. 84-42, 88~, 90-62, 91-96, 93-26 and 94-34, to
April 7, 1997.
PROPOSED DEVELOPMENT
16. Request: In a letter dated February 5, 1997, the applicant has requested amendments to
Conditions I.
17. Objectives: "The RM zoned azea, drainage (flood control) improvements and
compliance with affordable housing agreement are all contingent on the construction of
the drainage system.
"Work at Gamrex's expense has been on going on the flood control system for over seven
(7) yeazs. The drainage improvements required run from Gamrex's Mauka (East )
boundary along the abandoned railroad right-of--way down through the I2M zoned azea on
lands owned by Gamrex and the County of Hawaii. The improvements then pass under
both Queen Kaahumanu and Kuakini Highway through existing culverts and run Makai
(west) down through lands owned by Gamrex to existing improvements which start at the
Kupuna Street bridge (culvert) in Kalani Makai subdivision."
18. The applicant has submitted the following in support of the request:
(See Exhibit A -Letter dated February 5,1997)
STATE AND COUNTV PL.A_NS
19. State Land Use: Urban.
20. General Plan: Urban Expansion, which allows for a wide range of urban uses,
including golf courses and related uses.
A(:EN lES' COMb•~-
NTS
21. Fire Department (March 25, 1947 Memo):
"We have no objections to the above-referenced Change of Zone ordinance."
22. Police Department (Apri19,1997 Memo):
"We have reviewed amendment to the above-referenced Ordinance and from the police
standpoint, foresee no adverse effect from the requested extension.
-3-
r
23. Department of Transportation (September 3, 1997 Memo):
"We have no objections to this application."
24. Department of Public Works (March 31,1997 Memo):
"We have reviewed the subject application and have no comments regazding the request
for a time extension."
AGENCIES - NO RESPONSE
25. HELCO, Department of Water Supply, Health Department and Real Property Tax
PUBLIC COMMENTS
26. The Department has not received any objections from the general public or adjacent
landowners.
-4-
COUNTY OF HAWAII STATE OF HAWAII
BILL NO. zob
(Draft 2)
ORDINANCE NO. 94 34
AN ORDINANCE AMENDING SECTION 25-87 (NORTH KONA ZONE MAP),
ARTICLE 3, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE,
RELATING TO CONDITIONS OF ORDINANCE N0. 84-23 AND FURTHER
AMENDED BY ORDINANCE NOS. 84-42, 88-4, 90-62, 91-96 and 93-26
WHICH RECLASSIFIED CERTAIN LANDS FROM UNPLANNED (U) TO MULTIPLE
FAMILY (RM-5) AND SINGLE-FAMILY RESIDENTIAL (RS-15) ZONED
DISTRICT AT HOLUALOA 1 AND 2, NORTH KONA, HAWAII, COVERED BY
TAX MAP KEY 7-6-21; 4, 9-13, AND 15-17.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Ordinance No. 84-23 as amended by Ordinance
Nos. 84-42, 88-4, 90-62 and 91-96 is further amended as follows:
"SECTION 2. These changes in district classification are
conditioned upon the following: (A) the zoning for the
property shall be effective only after: (1) there are
assurances satisfactory to the Departments of Water Supply and
Planning, upon consultation with the State Department of
Health, and the Division of Water and Land Development of the
State Department of Land and Natural Resources, that a water
source of sufficient quality and quantity has been established
within two years from the effective date of this ordinance;
provided that a maaimum one-year eatension to the two-year time
limit may be granted by the Planning Director with reasonable
and sufficient justification; and (2) an agreement, accompanied
by an appropriate surety bond or other acceptable security, is
E X H I B I T
i~
ii ~
executed with the Department of Water Supply for the actual
development of a proven water source and its water transmission
and distribution system within one year from the official date
of compliance with condition A(1); provided that a one-year
extension to the one-year time limit may be granted by the
Planning Director with reasonable and sufficient justification;
or (3) the Department of Water Supply issues a water commitment
for the proposed development; (8) no subdivision or development
of any portion of the land shall occur unless and until
condition A has been complied with; (C) the Planning Director
shall be mandated to initiate action for the repeal of this
ordinance if conditions A or S have not been complied with;
(D) the petitioner, its assigns or successors, shall be
responsible for complying with all conditions of approval;
(E) the zoning for the 49± acres designated by the State Land
Use Commission as its second zoning increment shall not become
effective until that land is ceztified by that commission to be
within the Urban District; (F) the RS zoned area shall be
developed in two increments. The first increment shall consist
of a maximum of 59.5± contiguous acres, and the second, the
remaining area. The effective date of zoning for the second
increment shall be after development has occurred in the first
increment, as determined by the Planning Director.
"Development" means [that building permits have been issued for
dwelling units and construction has been partially completed to
the extent that roofs have been constructed on a minimum of
-2-
twenty-five percent of the number of units proposed for the
entire area of 103.4± acres. In lieu of actual construction,
the petitioner may enter into an agreement with the Hawaii
County Housing Agency to assure the County that the dwellings
will be constructed within a given period. Such agreement
shall be secured by a surety bond, certified check, or other
security acceptable to Corporation Counsel and the Hawaii
County Housing Agency. Upon final execution of such agreement
and filing of the security with the Hawaii County Housing
Agency, the zoning of the second increment may be deemed by the
Planning Director to be effective prior to the actual
construction of the dwellings in the first increment provided
that condition E is complied with] the applicant has completed
the on-site and off-site improvements within the first
increment of the RS zoned area and has dedicated the roadwav to
the County; (G) subdivision plans for the first increment of
the RS zoned area shall be submitted within one year from the
effective date of the zoning. Final subdivision approval shall
be secured within two years from the effective date of this
amendment; (H) the RM zoned area shall be developed in two
increments. The first increment shall consist of a maximum of
42 acres of the Multiple Family Residential zoned land and the
second increment, the remaining area. The effective date of
zoning for the second increment shall be after ["development,"
as defined in condition F, has occurred in the first increment,
as determined by the Planning Director] the applicant has
-3-
comoleted the on site and off-site improvements of the first
increment of the RM zoned area and has dedicated the
improvements to the County; (I) plans for the development
within the first increment of the RM zoned area shall be
submitted to the Planning Department and final plan approval
secured within two years from the effective date of this
amendment. Construction shall commence within one year from
the date of receipt of final plan approval and be completed
within three years thereafter; (J) should the Council adopt a
Unified Impact Fees Ordinance setting forth criteria for the
imposition of exactions or the assessment of impact fees,
conditions included herein [may, at the developer's election,
be satisfied by performance in accordance with] shall be
credited towards the requirements of the Unified Impact Fees
Ordinance; (K) housing opportunities for Hawaii residents shall
be provided in accordance with the condition imposed by the
State Land Use Commission. The number of units and manner in
which they are to be provided shall meet with the approval of
the Hawaii County Housing Agency; (L) improvements to the
intersections with Kuakini Highway and the Kuakini Highway
Extension shall be constructed meeting with the approval of the
State Department of Transportation, Highways Division. The
intersection improvements shall be constructed concurrently
with the development of the first increment of the RS or RM
zoned areas, whichever occurs first; (M) no direct access shall
be provided for the lots within the RS zoned area from the
-4-
mauka-makai collector road; (N) the roadways and stubouts
within the RM zoned area [which are proposed for dedication]
shall be constructed to dedicable standards with curbs,
gutters, and sidewalks meeting with the approval of the
Department of Public Works and shall be dedicated to the County
of Hawaii uvon comuletion. Where a roadway crosses a zone line
or if a zone line should divide a roadway, the curbs, gutters,
and sidewalks shall be provided for the entire right-of-way and
shall continue to the nearest intersection in order to avoid
telescoping and to provide consistent improvement; (O) at a
minimum, roadways and stubouts within the RS zoned area shall
be provided with paved shoulders and paved swales meeting with
the approval of the Department of Public Works and shall be
dedicated to the County of Hawaii uvon comuletion; (P) the
method of sewage disposal shall meet with the approval of the
appropriate governmental agencies; (Q) a drainage master plan
shall be submitted to the Department of Public Works for review
and approval prior to issuance of any subdivision or plan
approvals. The plan shall include, as a minimum, hydrological
and hydraulic calculations for all components of the drainage
system, a construction timetable for all elements of the
system, and an analysis of downstream impacts. Further,
mitigating measures as approved by the Department of Public
Works shall be taken to eliminate any downstream impacts;
(R) an intensive archaeological survey shall be conducted for
the entire property and a report shall be submitted to the
-5-
Planning Department prior to issuance of any subdivision or
plan approvals; (S) should any unanticipated archaeological
sites be found during land preparation activities, work shall
immediately stop and the Planning Department notified. Work
shall not resume in the affected area until clearance is given
by the Planning Department; (T) vrior to the Final Anoroval of
the second increment the avvlicant. its successors or assigns
shall oav for anv additional real nronerty taxes owed for the
new residential assessed value of the subiect vroverty which
wgs oreviously tazed at the agricultural rate• and, [(T)]~UZ
and initial extension of time for the performance of conditions
within the ordinance may be granted by the Planning Director
upon the following circumstances: 1) 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 of their fault or
negligence; 2) granting of the time extension would not be
contrary to the general plan or zoning code; 3) granting of the
time extension would not be contrary to the original reasons
for the granting of the change of zone; 4) the time extension
granted shall be for a period not to exceed the period
originally granted for performance (i.e., a condition to be
performed within one year may be extended for up to one
additional year); and 5) if the applicant should require an
additional extension of time, the Planning Director shall
submit the applicant's request to the County Council for
-6-
appropriate action. Further, should any of the conditions not
be met or substantially complied with in a timely fashion, the
Director shall initiate rezoning of the area to its original or
more appropriate designation."
SECTION 2. Material to be deleted is bracketed. New
material is underscored.
SECTION 3. In the event that any portion of the ordinance
is declared invalid, such invalidity shall not affect the other
parts of this ordinance.
SECTION 4. This ordinance shall take effect upon its
approval.
INTRODUCED BY:
COUNCIL MEMBE COU Y OF HAWAII
Hilo, Hawaii
Date of Introduction: February 23, 1994
Date of 1st Reading: February 23, 1994
Date of 2nd Reading: March 23, 1994
Effective Date: April 5, 1994
APPROVED AS TO FORM AND LEGALITY:
:PUIY, CORPORATION COUNSEL
DATED : ~ ~ I~GX- ~
-7-
~~t~
/l~;,ti. I
it r:^l / .h' !I~ F.:. ~ s~
• z
_ c~ ~ r n ~ r
\ I
•r~i F•~I! tr• .rl. s ~ , Ir O
L. / ~
~L LL ! ?,~1
• 1
a u u.•"I snh s h ~ .~~1,••I', ~ Q? \ ? L'1
y a .i rat I •1 ~ 1 t?,f''~ ~?O 1 ? ~R ISM ~1
L d Y C I-
•I ? Ate. • A
H r P
,a • Ep . S
.I ale `yrr . I ~ `Q~ V/ ..?§i. \ ~ o '
I
' ~ i •K~ •i'a ~ ..:rn_ ' iii ra l
' f:9~ Ilk°"'F 1" `~•;i. 7L` . _ez • "IC • • yy
I~` a\•I ••1 •s, _ ~ ~ ~ ~ •S~ u I .i It ji ,IS. I I f } .
'S
.•~I
~CC / I . ~ _ 6.~
c' r~ 1•i `'•sy~~ r :~`~~.'.,~~`•~R ~ ~r it
r ' 9,';Q'
q-..
/
~ ~ Vii. ~~'ii w, ~ o~l~
' 11 u,l -1 n li ~ y.l\+
.ir~,drw~. q II~iC7 ie: r + \ I;:1.. 1.
' 41 I1 Z i •7
7
1
~.KNIRI? i
PROJECT PLANNERS HAWAII
5375 Kalanianaole Highway
Honolulu, Hawaii 96821
February 5, 1997
Ms. Virginia Goldstein
Planning Director
County of Hawaii
Planning Department
25 Aupuni Street
Hilo, Hawaii 96720
Re: Gamrex, Inc.
Request For Time Extension
Change of Zone Ordinance Nos. 94-34,
which amended (REZ 470) Ordinance
Nos. 84-23, 84-42, 90-62 and 93-26.
Tax D1ap Keys: 7-6-21:4, 9-13 & 15-17
Third Division
Dear Virginia:
Gamrex, Inc. respectfully submits the enclosed request
for time extension to its rezoning ordinances which
expires on April 7, 1997. Also enclosed are fifteen (15)
copies of the application and a check for $100.00 for
the filing fee.
For your information, I have left two (2) copies of
this application with your Kona office for their use. The
DPW Kona Office was also copied and a copy was sent to Mr.
Edwin Taira with the Office of Housing & Community Develop-
ment in Hilo. Please contact me should you need additional
copies.
We are presently working on a revised approval schedule
for the drainage (flood control) system and your Kona
office will be kept informed on any changes. Should
proposed changes to the S.M.A. boundaries take place along
the Kuakini corridor, they would have a definate impact on
-1-EXHIBIt
d
the permitting process.
Thank you for your kind consideration of Gamrex's
request. Should you have any questions or require any
additional information, please contact me at (808) 329-9724
or by FAX at (808) 326-2789 in Kona.
Re~sp`ectfully,
Gregg Kashiwa
cc: Gamrex, Inc.
REQUEST FOR TIME EXTENSION
RE: Change of Zone Ordinance No. 94-34, which amended (REZ 470)
Ordinances No. 84-23, 84-42, 88-4, 90-62 and 93-26.
TAX MAP KEYS: 7-6-21:4, 9-13 and 15-17 Third Division
TO: Ms. Virginia Goldstein
Planning Director
County of Hawaii
Planning Department
25 Aupuni Street
Hilo, Hawaii 96720
APPLICANT: Gamrex, Inc.
1188 Bishop Street
Suite 903
Honolulu, Hawaii 96813
PREPARED BY: Gregg Kashiwa
President
Project Planners Hawaii
5375 Kalanianaole Highway
Honolulu, Hawaii 96821
Phone: (808)329-3124 Kona
(808) 373-2989 Honolulu
FAX: (808) 326-2789 Kona
DATED: January 30, 1997
REQUEST FOR TIME EXTENSION
INTRODUCTION:
In 1995, an administrative time extension was granted by the Planning Director
to Gamrex, Inc. pursuant to the guidelines set forth in Change of Zone Ordinance No.
93-26. The major reason for the time extension was the submission of plans by
Gamrex to the Planning Department for the RM zoned area within the development.
Gamrex additionally must construct at its expense a flood control system through the
RM zoned area and comply with the conditions of its Affordable Housing Agreement
with the County of Hawaii.
This requirement for the RM zoned area is set forth in a letter from the Planning
Director to Gamrex dated November 6, 1996, acknowledging receipt of Gamrex's
annual progress report to the County of Hawaii. A copy of that letter is attached hereto
as Exhibit "A". The annual progress report is also attached as Exhibit "B".
As mentioned in its 1996 annual progress report, Gamrex and all developers in
West Hawaii experienced a very slow year. Sales were well below projections and
market activity was at its lowest ebb. While real estate activity was robust on the
Mainland, Hawaii's real estate markets were in decline throughout the State. Home
and land prices on the Big Island, especially in Kona are now at 1979 price levels.
These price reductions and slow market conditions have impacted all developers in
West Hawaii. Gamrex is not an exception. It is unclear whether 1997 will show any
improvement.
In view of these changing conditions Gamrex in the last half of 1996 undertook a
complete project review. This review included extensive market analysis and project
orientation. It also covered corporate changes that shifted direct control of the project
to a Hawaii based management team. All model home and vacant lot inventories were
repriced and a marketing program was developed in conjunction with a strengthened
sales force. The entire program was started on the second of January, 1997, and is
presently in operation.
The RM zoned area, drainage (flood control) improvements and compliance with
the affordable housing agreement are all contingent on the construction of the drainage
system. As mentioned in earlier requests for time extensions, the drainage system
needs to be completed first in order for work to go on in the remaining areas.
-1-
Work at Gamrex's expense has been ongoing on the flood control system for
over seven (7) years. The drainage improvements required run from Gamrex's Mauka
(East) boundary along the abandoned railroad right-of--way down through the RM
zoned area on lands owned by Gamrex and the County of Hawaii. The improvements
then pass under both Queen Kaahumanu and Kuakini Highways through existing
culverts and run Makai (West) down through lands owned by Gamrex to existing
improvements which start at the Kupuna Street bridge (culvert) in Kalani Makai
subdivision. A detailed narrative on the progress for the subject drainage
improvements is contained later herein.
Once the drainage improvements are completed and all work is approved by the
Federal, State and County governments, Gamrex can proceed forward with planning
and approvals within the RM zoned area. Much of the RM area is covered by existing
flood plains as shown on the FEMA Flood Insurance Rate Maps (FIRM). Alignment of
the proposed flood channels also require construction of the improvements partly on
County owned lands and on Gamrex lands. This will require consolidation and
resubdivision of improved channel rights-of--way so they may be dedicated to the
County upon completion. Approval of these surveys and new alignments depends in
large part on "as built" plans and surveys produced by Gamrex post construction.
Additionally, final compliance for the affordable housing agreement requires the
drainage system to be built and dedicated to the County of Hawaii. The drainage
system in this way ties all these efforts together and is the crucial step in compliance
with the remaining conditions of Change of Zone Ordinance No. 93-26.
This request for time extension will detail Gamrex's efforts in marketing its
present inventory within the Kona Vistas subdivision which lies within the RS-15 zoned
area, the drainage system, the RM-5 zoned area and the affordable housing agreement
with the County of Hawaii.
MARKETING AND DEVELOPMENT PLANS FOR KONA VISTAS SUBDIVISION:
Sales at Kona Vstas subdivision which represents the first increment of the RS-15
zoned lands owned by Gamrex began in March of 1993. A model home complex
containing eight (8) model homes, together with a site sales office was completed prior
to the sales kick-off. This sales office on site has been continuously staffed since its
opening in 1993 from 10:OOam through 5:OOpm, Wednesday through Sundays. These
hours and days of operation have been maintained through December 31, 1996. The
office was staffed by one salesperson during that time.
-2-
Sales between 1993 and 1996, approximately four (4) years were as follows:
Sales of house packages: 18 sales
Sales of vacant lots: 2 sates
Total Sales 20 sales
Sales averaged 0.455 sales per month during that 44 month period. Only two
(2) house sales were recorded in 1996, which made the 1996 monthly sales average
0.167. The diminishing sales volumes showed Kona Vistas was following the State-
wide indicators of falling prices and slowing market conditions. As mentioned earlier,
Gamrex undertook a complete project and management review in the last half of 1996
for Kona Vistas. Sales at Kona Vistas subdivision are the only source of income for
Gamrex.
Gamrex developed a new sales program for Kona Vistas which was
implemented on January 2, 1997. It consists of two (2) full time salespersons which will
staff the sales models seven days a week from the hours of 10:OOAM to S:OOPM. The
entire inventory of model homes and vacant lots has been repriced. An approximate
thirty-five percent (35%) price reduction has been implemented on all inventory.
Corporate management for the project has moved from Tulsa, Oklahoma to
Honolulu, Hawaii. This will enable Gamrex to respond to sales and project
requirements in a timely manner. The management transition was also in place and
operational as of January 2, 1997. With these changes, new advertising has been
selected and budgets for 1997 have been established. Gamrex is making every effort
to market its finished inventory in present market conditions.
Cash flow received from the sales at Kona Vistas subdivision are the sole source
of income for Gamrex, Inc. These funds will be used in the approvals and permits for
the drainage system as well as construction funds for all future construction within the
development.
As mentioned in the annual progress report, Gamrex does not anticipate building
Unit 2 at Kona Vistas subdivision until such time as fifty percent (50%) of the existing
inventory is sold. There are presently sixty-nine (69) unsold units in the subdivision,
inclusive of two homes. Economics of the present market show there is ample
inventory at present in Units 1A and 1 B of the subdivision, enough to last for a period of
time until there is increased real estate activity in West Hawaii. This does not appear
to be an immediate concern. There has been a question of when the Lako Street
extension will be completed. This link is within the second increment of Kona Vistas
(Unit 2). When market conditions and cash flows indicate that this is possible, Gamrex
will construct the Lako Street extension as part of the Unit 2 construction package.
-3-
All roadways within Unit 2 will be dedicated to the County of Hawaii as set forth in the
Change of Zone ordinance.
All efforts at Kona Vistas subdivision have been reported to the Planning
Department on an annual basis since they were started. Gamrex has never stopped in
its efforts to market homes and vacant lots within the RS-15 zoned area, and will
continue to make every effort to generate sales during 1997. This effort is of primary
importance to Gamrex in order to comply with its conditions of rezoning. Should this
request for time extension be approved, continued annual progress reports will be
submitted to the Planning Department for their information and review. These annual
progress reports are also circulated to the Land Use Commission and other concerned
State agencies. These State agencies are also tracking Gamrex's progress relative to
their approvals and conditions of development. The remaining obligations of Gamrex
are covered by a double layer of conditions set forth by both the County and State of
Hawaii. These conditions are monitored by the County Planning Department and the
State Land Use Commission.
DRAINAGE SYSTEM (FLOOD CONTROL) STATUS:
Gamrex has always recognized the fact that it would be responsible for
constructing a drainage system through its development. This drainage system is a
portion of the flood control improvements set forth in the North Kona Flood Control Plan
for the Holualoa and Horse Shoe Bend streams. Both these streams presently run
separately through the RM zoned portion of Gamrex's lands. The planned
improvements call far concrete lined channels to run over lands owned by both the
County of Hawaii and Gamrex to a point Makai of Kuakini Highway where existent
improvements are located.
Gamrex has been working with the Department of Public Works, County of
Hawaii for over seven (7) years on this project. All of its efforts to date are outlined
and described in the Final Environmental Assessment and Negative Declaration for the
proposed improvements that was completed in July of 1996. All pertinent information
regarding the drainage system and its design, location and environmental impacts are
covered therein. This E.A. was prepared for the Department of Public Works as part of
the approval process for the proposed improvements. The complete Final
Environmental Assessment is attached hereto as Exhibit "C" for review by concerned
parties. It has been duly filed and accepted by the State Office of Environmental
Quality Control.
-4
Recent proposed amendments to Special Management Area (SMA) boundaries
between Kailua-Kona and Keauhou in North Kona, may eliminate the need for a SMA
Use Permit Application being filed for the portion of the proposed drainage
improvements that lies below Kuakini Highway but Mauka of Alii Drive. White this
amendment has not yet been passed by the Planning Commission at this writing, it is
being assumed that a SMA permit will be required. Should it not be required, time will
be saved in the drainage system approval process.
Existing conditions create flooding within the Alii Kai ,Kalani Makai, and Kuakini
Makai, Kilohana and Komohana subdivisions that lie Makai of Kuakini Highway.
Portions of these subdivisions are periodically affected by flood waters from the
Holualoa and Horse Shoe Bend streams. These streams sheet flow naturally down the
slopes of Mount Hualalai. They are brought together at a confluence point just above
the Kupuna Street bridge by means of an earthen patchwork berm system. This system
often fails during heavy flows and floods the subdivisions named herein. This in turn
has caused property damage and the requirement for flood insurance for many of the
homeowners which is costly and difficult to obtain.
The proposed flood control improvements as set forth in the North Kona Flood
Control Plan will take the confluence point of both streams Mauka of Queen
Kaahumanu Highway and bring the combined flows Makai within a concrete lined
channel under both highways and to the Kupuna Street Bridge where existing
improvements are now in place. Collector channels along the abandoned railroad
right-of-way located at Gamrex's Mauka boundary will collect sheet flow waters from
lands Mauka and transmit them into separate lined channels to the mentioned
confluence point.
This proposed system has been reviewed and approved by both the Federal
Emergency Management Agency (FEMA) and the Department of Public Works (DPW).
Because portions of the proposed channel system will be built on lands owned by the
County of Hawaii, additional approvals under Chapter 343 HRS are required, and the
approvals have taken longer that first anticipated.
The benefits to the community, mainly those property owners affected in the Alii
Kai, Kalani Makai, Kuakini Makai, Komohana Kai and Kilohana subdivisions will be
considerable. It will be the longest link in the Holualoa/Horse Shoe Bend drainage
system built to date. While all the smaller problems encountered during this process
are not detailed herein, they have taken up considerable time and effort on both the
DPW and Gamrex during the past years. Gamrex has been working closely with Mr.
Tom Pack, DPW, Kona office and Mr. Casey Yanagihara, DPW, Hilo office during this
time. Status reports have also been sent to the Planning Department, Kona office on a
regular basis.
-5-
Should the SMA Use Permit application need to be filed, a draft copy has been
prepared and has been previously reviewed by both the Planning Department and
DPW. Final word on easement rights in favor of the County of Hawaii are being
investigated by DPW at present, and should those rights be ascertained, the SMA Use
Permit application can be put into final form within a month of notification by DPW.
Additionally a NPDES Permit is required from the State Department of Health for
the entire project. This process is required for temporary discharge of flood waters
within a known drainageway during construction. The permitting process is estimated
to take between nine (9) to twelve (12) months and is processed through the Honolulu
office of the Department of Health (DOH).
Once all permits inclusive of grubbing and grading permits are obtained from the
DPW construction can commence. It will start at the lowest point (Makai end) of the
system and proceed Mauka. Logically, the construction portion of the project will be
broken down into two phases. The first phase will include all improvements located
Makai of Kuakini Highway. The second portion will included all work between Kuakini
and Queen Kaahumanu Highways and improvements located Mauka of them.
During this time, surveys will be made of the exact location of the proposed
channels. These surveys are required for dedication of the completed work to the
County of Hawaii and for the Letter of Map Revision (LOMR) to be issued by FEMA
once work is completed. This LOMR will reduce all flood plains on the future FIRM to
within the channel confines. As mentioned in earlier applications, the land area within
the RM area will change and exact areas are not know at this time. Once all this work
is complete, both the County and Gamrex will know the exact layout and land areas
within RM zoned area. At that time, preliminary plans can be developed for review and
approval by the County Planning Department. These plans will include siting of all
infrastructural improvements required within the RM area as well as new County owned
drainage improvements.
The estimated time required for approvals, permits, other required surveys and
construction for the drainage system are as follows:
1. SMA Use Permit (if required): 9 months
2. NPDES Permit (DOH): 12 months
3. Construction, Phase 1: 11 months
4. Construction, Phase 2: 15 months
5. LOMR (FEMA): 6 months
6. Others: 3 months
Total Estimated Time Required: 56 months
-6-
These estimates do not cover unforeseen problems and delays. It has been
Gamrex's experience, that problems will crop up. Since this project is being built in
conjunction with and for the County of Hawaii, all problems must be solved in
conjunction with the appropriate County agency, and with their written approval.
Gamrex has been and will continue to get these approvals as they are required, and
further can not proceed without them.
Estimated construction costs for the entire drainage system in 1997 dollars is
$5,500,000 which will be paid entirely by Gamrex.
RM-5 ZONED AREA:
Gamrex produced very preliminary plans for the RM-5 zoned area in conjunction
with its initial request for rezoning back in 1984. No further plans have been produced
due to ongoing drainage approvals. As mentioned earlier, many things have changed
in the drainage plans and may continue to do so until completion.
At a given time during construction of the drainage improvements, most of the
drainage system matters will be set and preliminary planning within the RM area can be
started. Assuming that this point will fall within the Construction, Phase 2 portion of the
drainage schedule, the preliminary planning process for the RM zoned area can start in
a forty (40) to forty-five (45) months from today.
Included in these plans will be internal roadway and infrastructural plans, on and
off site sewer plans, bridge plans and details, lot layouts and plans for the RM
intersection on Queen Kaahumanu Highway. It is estimated these plans will take
approximately nine (9) to twelve (12) months to produce. Upon completion, they can be
submitted to the Planning Department and DPW for review.
The RM area is very important to Gamrex, and it will make every effort to comply
with all County requirements set forth in the Change of Zone Ordinance. As discussed
herein, Gamrex has been working diligently on the drainage system which must be
resolved first in order to proceed forward with the planning and approvals within the RM
zoned area. At this point in time, there are no estimated construction costs for the RM
area due to the lack of plans for the work at hand.
THE AFFORDABLE HOUSING AGREEMENT WITH THE COUNTY OF HAWAII:
Gamrex's Affordable Housing Agreement requires Gamrex to complete the
drainage (flood control) system described earlier herein as a condition of final
satisfaction of said Agreement. The drainage system status has been outlined and the
Affordable Housing Agreement with the County of Hawaii, unless amended must follow
the schedule set forth herein.
-7-
A request for time extension to the Agreement has been requested and final
documentation is presently being undertaken. Gamrex has reported its progress
periodically to the Office of Housing and Community Development on the drainage
system approvals and they are aware of the present status of the project.
Like the RM zoned area in the development, Gamrex can't do anything else until
the drainage system is approved and built. The drainage system holds the key in
Gamrex's compliance with many of the outstanding conditions within its rezoning
ordinance. Gamrex is making a concerted and diligent effort in obtaining the remaining
approvals and permits required for its construction.
CONCLUSION:
Gamrex has been working with the County in the approval of the drainage
system. During this long period, it has kept in direct communication with DPW and the
Planning Department on its efforts by means of written status reports and telephonic
communications. In many cases, the County of Hawaii has been the applicant for the
approvals which has required additional care in the contents and review of the
documents. Gamrex understands that these matters have long range impacts on the
County and its future legal and title concerns for the system. As problems have arisen,
they have been dealt with jointly by Gamrex and the County of Hawaii. The process
has taken a long time to get to its present status. There are other approvals required in
order to construct the proposed drainage improvements. Because of its nature, being a
County owned and approved flood control project, it is extremely important that all
aspects of its approval and review are done in strict compliance with existing rules and
regulations.
This has taken time and effort, but it is important to look at the post construction
ramifications that will be borne by the County of Hawaii once the system is completed
and dedicated. In looking at the process from this view point, Gamrex feels that these
time delays are well worth the extra effort as they will insure the system can stand
review in the future. From this standpoint, Gamrex expresses its hopes that its request
for time extension will be looked on favorably.
This request also has explained the relationship between the drainage system,
its approvals and construction, and the conditions of rezoning unfinished in the Change
of Zone Ordinance (s). Gamrex has expended considerable sums of money in bringing
its development to this point in time. It must further spend more money in completing
the project. It has been thirteen (13) years since Gamrex first came before the County
for rezoning. During this period it has tried to comply with all the conditions of
rezoning. It has communicated with the County with regard to its progress, and has
worked closely with the County on matters of joint interest.
-8-
Gamrex also fully realizes its unfulfilled conditions of rezoning with the County.
Based on the information contained herein, it will comply with them on the estimated
time frame set forth. It has proven through past commitments to the development that it
is a responsible developer with long range capabilities. In spite of very poor market
conditions, Gamrex is expending both time and money in the project in the belief that it
one day will get a retum on its investment. That return is a long way off, and Gamrex
has stayed with the development far longer than its planned time line.
Additionally, the project will create valuable drainage improvements to West
Hawaii. These improvements will directly benefit residents of existing subdivisions in
savings of flood insurance premiums and the threat of flooding. Housing opportunities
will be created, and the real property tax base for the County will be strengthened. The
development plans for the project lie within the Kailua-Kona urban core and are
consistent with the goals and objectives of the General Plan.
For these reasons, Gamrex respectfully requests a time extension to its Change
of Zone Ordinance.
Should additional information be required, or questions arise from this request,
please contact; Mr. Gregg Kashiwa of Project Planners Hawaii, at;
(808)329-9724 Kona
(808) 373-2989 Honolulu
(808) 326-2789 Kona FAX.
Thank you for your kind consideration of this request for time extension tendered
by Gamrex, Inc. Your time and past considerations are sincerely appreciated.
Respectfully submitted,
Project Planners Hawaii, for Gamrex, Inc.
by
its President
~I W~IFN
l1 fG<
19~ ~ If
DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII
oG~I~WF xIW~~~'~,+' 25 AUPU NI STREET HILO, HAWAII 96720
TELEPHONE (808) 9)6~EXXlYLCx F A X (808) g15~Q XQAB16x
961-8660 961-8657 ~
May 5, 1997
c~~. '
c. .
lJ
i
TO: Planning Department
FROM: Milton D. Pavao, Manager
SUBJECT: CHANGE OF ZONE ORDINANCE N0. 84-23, AS AMENDED BY ORDINANCE NOS.
84-042, 88-004, 90-062, 91-096, 93-026 AND 94-034 (REZ 470)
APPLICANT - GAMREX, INC.
REQUEST: AMENDMENT TO CONDITION I (SUBMIT PLANS AND FINAL PLAN
APPROVAL FOR RM ZONED AREA)
TAX MAP KEY: 7-6-021:004, 009-013 AND 015-017
We have no objections to the subject request.
Please be informed that the property has a water commitment in effect for 547
units of water through the Kona Source and Kealakekua Source Agreement that is due
to expire on June 30, 1999.
Milton D. Pavao, P.E.
Manager
WA:gms
copy - Gamrex, Inc.
Project Planners Hawaii
(~4~45
U!/afer brin~a ~ro~r¢es .