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HomeMy WebLinkAboutCOM 0770.000 2002-2004 Harry Kim bL ~s Dixie Kaetsu Mayor . - - Managing Director •I 5EP 2,j IFT 12 C~ Peter L. Hendricks ?~r~ oi•M~ Deputy Managing Director COUNTY OF ~1:, ,III 25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 961-8211 • Fax (808) 961-6553 KONA: 75-5706 Kuakini Highway, Suite 103 • Kailua-Kona, Hawai'i 96740 (808) 329-5226 Fax (808) 326-5663 September 22, 2004 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 Application (REZ 04-010) Applicant: Thad E. Bond Request: A-20a to A-10a Tax Map Key: 7-3-27:21 Change of Zone Application (REZ 04-011) Applicant: Phil Knierim Request: A-20a to FA-3a Tax Map Key: 7-3-25:07 State Land Use Boundary Amendment Application (SLU 04-007) Request: Agricultural to Urban Change of Zone Application (REZ 04-012) Request: A-5a to RS-20 Applicant: Lillian Mahi Tax Map Key: 7-3-11:68 Change of Zone Application (REZ 04-013) Applicant: Mitsugi Komo Revocable Trust Request: A-5a to FA-3a Tax Map Key: 7-5-24:25 Change of Zone Application (REZ 04-017) Applicant: Alyssa Ackerman Request: A-20a to FA-la Tax Map Key: 5-5-4:33 ,Amendment to Change of Zone Ordinance No. 91-71 (REZ 628) Applicant: Kona Oasis, Inc. Tax May Key: 7-5-9:40 Comm. No. O gl.~ ~j17 Ref. To: Ref. Date E 2 d 7flf)A Honorable James Y. Arakaki, Chairman and Members of the County Council Page 2 As required by Chapter 4, Sec. 6-4.3(C), Hawaii County Charter, transmitted herewith for the County Council's consideration and action are the Planning Commission's letters and enclosures regarding the above-referenced requests. Sincerely, aQ' Ud- Harry Kim Mayor L090304may Enclosures cc: Planning Department Hawai'i County is an Equal Opportunity Employer and Provider Nt Y•Or N Harry Kim Mayor 1 J~ uL~ ~I I i ,rr O%•Nr~' 1 County of Hawaii PLANNING COMMISSION 101 Pauahi Street, Suite 3 • Hilo, Hawaii 96720-3043 (808)961-8288 • Fax(808) 961-8742 September 21, 2004 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: Amendment to Change of Zone Ordinance No. 91-71 (REZ 628) Applicant: Kona Oasis, Inc. Tax Map Key: 7-5-9:40 The Planning Commission, after a duly held public hearing on September 3, 2004, voted to recommend for your approval the proposed legislative bill for an amendment to Change of Zone Ordinance 91-71 which reclassified 2.23 acres of land from the Multiple Family Residential 1,000 square foot (RM-1) to the Resort-Hotel 1,000 square foot (V-1) district. The property is located between Alii Drive and Kuakini Highway and adjacent to the Kona Billfisher and Kona Mansions condominium complexes and mauka of the Royal Kona Resort Hotel, Kailua-Kona, Puaa 2°d, North Kona, Hawaii. The Commission concurs with the following Planning Director's reasons for recommending favorable consideration of the request: The applicant is requesting an amendment to Conditions B of Ordinance No. 91 71 for a time extension to comply with Condition B which required the submittal of a SMA Use Permit application. • April 26, 1989: Effective date of Ordinance No. 89 54 which rezoned the property from Multiple-Family Residential 1,000 square feet (RM-1) to Resort- Hotel 1,000 square feet (V-1.0). Condition B of the ordinance required the filing of a SMA Use Permit application within one year from the effective date of the change of zone. Honorable James Y. Arakaki, Chairman and Members of the County Council Page 2 • May 22, 1990: First administrative time extension granted until April 26, 1991 to comply with Condition B. • July 24,1991: Effective date of Ordinance No. 91 71, which amended Ordinance No. 89 54 for a time extension until July 24, 1992 to comply with Condition B. • June 29,1992: Planning Director grants another administrative time extension to July 24, 1993 to comply with Condition B. • October 5,1993: As the July 24, 1993 deadline to comply with Condition B has passed, applicant is informed that a formal time extension request must be submitted to the County Council. • April 11, 2003: Applicant requests another time extension to Condition B, citing financial reasons for inability to comply with the condition. • April 23, 2003: Planning Department informs prospective buyer that an amendment to the ordinance is required for another time extension. • August 12, 2003: Attorney for landowner informs the Planning Department that a formal time extension would be forthcoming. • November 20, 2003: Current request to amend Condition B for a time extension to submit the required SMA Use Permit application. The applicant's representative requested that the time extension be heard simultaneously with the SMA Use Permit application for the 93-unit condominium project and related improvements. The inability of the applicant to comply with the requirements of Condition B of Change of Zone Ordinance No. 91 71 is the result of conditions that could not have been foreseen or are beyond the control of the applicant. The August 12, 2003, letter included as part of this request cites the recession in Japan, Gulf War and general economic downturn and related financial constraints in the domestic market as reasons for the applicant's inability to comply with Condition B. The applicant has streamlined its operations and improved its financial performance in ensuing years, although actual revenues continue to lag behind projected figures. The applicant, who recently purchased the property, wishes to preserve the requirement for the SMA Use Permit. A SMA Use Permit application for a 93-unit condominium project and related improvements is being processed simultaneously with the time extension request. Honorable James Y. Arakaki, Chairman and Members of the County Council Page 3 The General Plan LUPAG Map designates the area as Medium Density Urban on the mauka portion, and Resort on the makai end. The Master Plan for Kailua-Kona, adopted by Resolution No. 371 98 effective September 6, 1996, identifies this area as "High Density Residential." All essential utilities and services are available to the site. It is recommended that Condition B be amended to continue to reflect a one-year time period to file the SMA Use Permit application, which the applicant has already done. Based on the above findings, the proposed amendment to Condition B is not contrary to the original reasons for approving the Change of Zone. Since there were a number of conditions not included when this change of zone was originally granted, the Planning Director is now recommending that new Conditions D, E and F (specific roadway improvements), new Condition L (fair share contribution), and new Condition N (affordable housing) be included in the conditions of approval. It is recommended that a favorable recommendation to amend Condition B with new Conditions D, E, F, L and N and subsequent renumbering of conditions be forwarded to the County Council, For your favorable consideration, an amendment to Ordinance No. 91 71 is transmitted. We are enclosing copies of the staff Background and Planning Director's Recommendation for your information. Sincerely, Fred Galdones, Chairman Planning Commission Lkonaoasi srezO I PC Enclosures cc: Mr. Sidney Fuke Department of Public Works Department of Water Supply Planning Department - Kona BKona0asisTEREZ.dm-8/ I 1 /04 COUNTY OF HAWAII PLANNING DEPARTMENT BACKGROUND REPORT KONA OASIS, INC. CHANGE OF ZONE ORDINANCE NO. 91 71 (REZ NO. 628) AMENDMENT TO CONDITION B KONA OASIS, INC. has submitted a request to amend Conditions B (file SMA Use Permit application with one year of the date of amendment to the ordinance) of Ordinance No. 91 71, which reclassified 2.23 acres of land from the Multiple-Family. Residential 1,000 square feet (RM-1) to the Resort-Hotel 1,000 square feet (V-1) district. The property is located between Alii Drive and Kuakini Highway and adjacent to the Kona Billfisher and Kona Mansions condominium complexes and mauka of the Royal Kona Resort Hotel, Kailua-Kona, Puaa 2na North Kona, Hawaii, TMK: 7-5-9: 40. REQUEST 1. The applicant is requesting an amendment to Ordinance No. 91 71 for a time extension to file a SMA Use Permit as required under Condition B of the ordinance. Based on the above, the applicant is requesting the proposed amendment: (Material to be deleted is bracketed, material to be added is underscored). "B. A Special Management Area (SMA) Use Permit application for the proposed development shall be filed with the Planning Department within one year from the effective date of this new amendment." In a separate request, the applicant has filed a SMA Use Permit application to allow the development of a 93-unit condominium project with commercial office/retail space on the site. Kona Oasis, Inc. is the current landowner of the property. (Exhibit A - November 20, 2003 Letter) BACKGROUND INFORMATION 2. April 26, 1989: Effective date of Ordinance No. 89 54 which rezoned the property from Multiple-Family Residential 1,000 square feet (RM-1) to Resort-Hotel 1,000 square feet (V-1.0). Condition B of the ordinance required the filing of a SMA Use Permit application within one year from the effective date of the change of zone. 3. May 22, 1990: First administrative time extension granted until April 26, 1991 to comply with Condition B. ATTACH: C-770 (B-327) 4. July 24,1991: Effective date of Ordinance No. 91 71, which amended Ordinance No. 89 54 for a time extension until July 24, 1992 to comply with Condition B. 5. June 29, 1992: Planning Director grants another administrative time extension to July 24, 1993 to comply with Condition B. 6. October 5,1993: As the July 24, 1993 deadline to comply with Condition B has passed, applicant is informed that a formal time extension request must be submitted to the County Council. 7. April 11, 2003: Applicant requests another time extension to Condition B, citing financial reasons for inability to comply with the condition. 8. April 23, 2003: Planning Department informs prospective buyer that an amendment to the ordinance is required for another time extension. 9. August 12, 2003: Attorney for landowner informs the Planning Department that a formal time extension would be forthcoming. 10. November 20, 2003: Current request to amend Condition B for a time extension to submit the required SMA Use Permit application. The applicant's representative requested that the time extension be heard simultaneously with the SMA Use Permit application for the 93-unit condominium project and related improvements. 11. Master Plan for Kailua-Kona: Adopted by Resolution No. 371 98 effective September 6, 1996, the Master Plan for Kailua-Kona identifies this area as "High Density Residential." AGENCIES' COMMENTS 12. Department of Public Works: Exhibit B - December 28, 2003 Memo APPLICANT'S RESPONSE TO AGENCIES' COMMENTS 13. Exhibit C - July 8, 2004 Letter PUBLIC COMMENTS 14. As of this writing, the Department has not received any written objections or comments from the public or adjacent landowners on this request for a time extension. -2- SidneyFuke, Planning Consultant anwAff Aap~ 100 Pauahi Street, Suite 212 • Hilo, Hawaii 96720 • Planning • Variance • Zoning Telephone: (808) 969-1522 • Fax' (808) 969-7996 • Subdivision • Land Use Permits ' _ • Environmental Reports November 20. 2001 Mr. Christopher Yuen, Director Planning Department COUNTY OF HAWAII 101 Pauahi Street Hilo, HI 96720 Dear Mr. Yuen: Subject: Annual Report and Rezoning Time Extension Request - Ord. 91-71, REZ 628, Daikvo Pacific, Inc. TMK• 7-5-09. 40 The subject property, consisting of 2.23 acres, is located on the mauka side of Ali i Drive, directly across of the Royal Kona Resort Hotel in Kailua-Kona. By approval of Ordinanne Nn, R9 Sd /Rrhihit R) the g»},iart »rnnartv ~vaS rezoned on April 26, 1 08_9 from Multiple-family Residential (RM-1) to Resort-Hotel (V-1.0). This approval was subject to a number of performance conditions, one of which required the submittal of a Special Management Area (SMA) Use Permit application within one year of April 26, 1989. Following this approval, there were several time extensions granted. The Planning Director granted an initial administrative extension to Apri126, 1991. Subsequently, the County Council, in its approval of Ordinance No. 91 71 (Exhibit C), granted another extension to July 24, 1992. Finally, the Planning Director granted another administrative extension to July 24, 1993. No further extensions were applied for by the applicant and/or landowner. In a letter, dated April 25, 2003, to Mr. Ali Ghalamfarsa, the prospective purchaser of the subject property, your office noted that an amendment to Ordinance No. 91 71 is required for any further time extension (Exhibit D). The attorney for the landowner subsequently filed such a request to your office in a letter, dated August 12, 2003 (Exhibit E). This letter outlined the reasons for the needed extension and noted that a formal time extension request would be forthcoming. In that regard, I would appreciate your considering this letter as the formal request for a time extension, both in behalf of the landowner, Daikyo Pacific, Inc., and the potential purchaser, Ali Ghalamfarsa. A copy of the letters of authorization to have this office file from the needed time extension from Mr. Yotaka Higashino of Daikyo Pacific, Inc. and Mr. Ghalamfarsa are enclosed at Exhibits A-1 and A-2. EXHIBIT A Mr. Christopher Yuen November 20, 2003 Page 2 Nature of Request The, applicant Daikyo Pacific, Inc., hereby requests an amendment to Condition B of Ordinance No. 91 71 to allow the submittal of the required SMA application within a year of the effective date of an amendment to this ordinance. It should be noted, however, that the applicant intends to file the required SMA application hopefully within the next month or so to enable the concurrent processing of the time extension request and SMA application. JUSTIFICATION OF REQUESTS In making this extension request, the applicant respectfully requests your taking the following into consideration: 1. The applicant's inability to perform within the stipulated period was a result of conditions that could not have been foreseen or were beyond the control of the applicant and not attributable to the applicant's negligence. As noted in the letter (Exhibit E) from the applicant's attorney, the global economic recession which begun in the early 90's was particularly severe for Japan. As such, the applicant did not wish to proceed with the filing of a SMA application, knowing full well that it would not be in a position to develop any approved project for this site in a timely fashion. Although the real estate market in Hawaii has being on the upswing the past few years, there is still some measure economic anxieties. Much of these are associated with the lingering fears of the "War on Terrorism", the slow pace of global economic recovery, particularly in Japan, and the residual effects of the SARS epidemic. These have all combined to somewhat dampen the applicant's level of aggressiveness in developing this project. As noted in the Exhibit E, the applicant is contemplating the sale of the subject parcel to Mr. Ghalamfarsa. Mr. Ghalamfarsa believes that conditions are changing and greater global security will be achieved in due time. This optimism has thus motivated him to expend funds to retain an archaeologist to do the required survey and mitigation plan. He has also prepared some conceptual designs of the project. Should the sale be consummated, he believes that he will be able to file the SMA application prior to the requested the allotted period. Mr. Christopher Yuen November 20, 2003 Page 3 2. Approval of these requests would not be contrary to the prevailing General Plan and Zoning Code Since the rezoning was approved for the site in 1989 and amended in 1992, there have been no changes to the General Plan affecting the subject property or immediately surrounding area. All improvements consistent with the prevailing Zoning Code standards, such as setback, height, parking, and landscaping will be complied with. 3. Approval of these requests would not be contrary to the original reasons for granting of the requests for the rezoning ordinance, as amended. In recommending the approval of the rezoning request, the Planning Director and Commission discussed the project's relationship to the General Plan, zoning ordinance, and other policies of the State and County. In summary, the Director and Commission concluded that the proposed request or development • Was consistent with the General Plan LUPAG map, Kona Regional Plan Land Use Concept map, and the Kailua Village Design Plan; and • Had all of the essential infrastructure A full description of the findings and relationship to the General Plan are found in the permit, a copy of which is found in Exhibit F. You will find that the reasons for the approval of the rezoning request are still valid today. Accordingly, approval of this extension request would not be inconsistent with the original reasons for approving the rezoning ordinance. In light of the above, the applicant respectfully requests your favorable consideration and processing of this time extension request. We also respectfully request your acceptance of this letter request as being in fulfillment of the annual report requirement outline in Condition K. Please find enclosed twenty (20) copies of this letter request with enclosures, a list of surrounding property owners, the real property tax clearance, and the filing fee of $250. Mr. Christopher Yuen November 20, 2003 Page 4 I trust that everything is in order for your processing. If not or if there are questions, please feel free to contact me. Thank you very much. }ncerel , V V\ SIDNEY F ICE Planning Consultant Enclosures Copy - Mr. Yotaka Higashino, Daikyo Pacific, Inc. c/o Mr. Ali Ghalamfarsa w/ enclosures Oct 29 2 0 0 3 4.00PM No9143 P. 1 10rlevtuu~ ie:v7 _ j276OB6 POLYNESIAN DEll y41 x155 P. 02AuE 02 w.r ~7'i. -ems YL'r 4 »:1h1C LAW CeR©.1P 9d9 6'2?7~ yye P'. .0 00 Sap4mbev2003 To, All State gad Colimy A&=Az x Hainadi t;+eunty, xIa~+aii Rc: Cane atw Zauias Ordiac=c No. 9L-71, and ZaattammT preoass 1b rDM1QLmoemt sad ftpravament TUN (3) 74-00:040, Prxa~a 24. north rAUM , FArWag To 'WPhum It May Coaaem.: This is written, t4 advise all rmlev"t Stato am Couigy agannies that lmikyv Pacific. Inc. has twth*dzad Ali GbalsmAYsa, aC AM Axclr W*tr,, me., to act is fts stead aid on its belt f to 3ai*m anquan for an erasion *rem to t wrndw. n ofOii G'ouAty C3t+dldanca T0. 91-91p t0 8aC tl!y its hahalf inparsuiag navui ofauob aaquw bytfte County Cvundl; a24 fnrter to act on i% f tcs fin= C*a4dw S of Orffimoe No. 9141. and to acquire aaay and all naceesa y ftMfiemenrs for davokpmant sad hgprovmnaat ofthe abowle* wd pxopeayfrom OW and/or all Stetr and County &eaciea, itratgdiag, butrlot lix ftd to, d w Dgwi=ent nF,l =d and NatMel Reso=es, Std: JU5tmc Sites Dqt; =n% State Health avperumat, the Dgwtme= viWu w St b*e the Dopft*mcat ogplarl xm& Depadmew of lh*lm Works and all of ha dfvlslemg, inaiudfatg Wb stewatiey Rngbnderivg, Two, and 9o19d Wage. ' .bail4yo Paci$c, Ino. ~rlsLxat.~na~ , TOTAL P.02 EXHIBIT A-1 ALIT ARCHITECTS INC. ARCHITECTS - PLANNERS - ENGINEERS 06 November 2003 Sidney Fuke Sidney Fuke & Associates 100 Pauhi Street, Suite 211 Hilo, 11196720 RE: Letter of Engagement Change of Zoning / Special Management Area Application TMK: (3) 7-5-009:040, Pua'a 2"a, North Kona, Hawaii Dear Mr. Fuke; Thank you for meeting with me today. I would like to engage your services to assist us with our request to the County Council for an extension of time to comply with certain requirements of County Ordinance 91-71 which conditionally approved a change of zoning for the above- referenced property. Your services will also be required for the filing and processing of the Special Use Area Permit Application. This letter is intended to serve as your authorization to act on my behalf in this regard. We are anxious to move forward with this project and appreciate your experienced and expeditious handling of these matters. In the event you require anything further in order to proceed, please contact me at your early convenience. Very truly yours, Ali halamfarsa President/Principal Architect EXHIBIT A-2 75-143 HUALALAI ROAD, SUFFF 4302 KAILUA-KONA, HAWAH 96740 PHONE (808) 329-8777 FAX (808) 334-1311 www.ahmrchitectsxom i .COUNTY OF HAWAiiII .:,STATE OF HAWAII Bill No. 55 i ORDINAIICE NO, 8`9 51 AN ORDINANCE AMENDING SEC':I~N 25-89 (RAILUA URBAN ZONE MAP) ARTICLE 3, CHAPTER 25 (ZONI tt~~G CODE) OF THE HAWAII COUNTY CODE, BY CHANGING THE DISTRICT CL SSIFICV---ION PROM MULTIPLE FAMILY RESIDENTIAL (RM-1) TO RESOR HOTEL (7-1) PUAA 2ND, NORTH KONA, HAWAII, COVERED BY TAX MAP EY 7-5-09:40. BE :T ORDAINED BY THE CCUNC :L CF THE COUNTY OF HAWAII: SECTION 1. Section 25-89, Article 3, Chapter 25 (Zoning i Code) of the Hawaii County lode, is amended to change the district classification of property described hereinafter as . follows: The district classiXfication of the following area situated at Puaa 2nd, North Kona, Hawaii, shall be Resort Hotel (V-1): Beginning at a pipe in loncceta at the North corner of this parcel of land at past corner of a portion of Grant 7489, Ap. 2 to D.P. waahile and on the westerly side of Xuakini Highway the coordinates of said point of beginning referred to Government Survey Triangulation Station "RAILUA" being P735.05 feet South and 2411.28 feet East and running by azi(nuths measured clockwise from True south: 1. 331° 59, 233.86 feet along westerly side of Kuakini Highway to a pipe in concrete; 2. 81° 51' 312.79 feet along stonewall, northerly side of a portion of Grant 4037 j App 2 to J. Raaeamoku to a pipe in concrete; 150° 27' 117.75 feet along a portion of Grant 4100 Ap. 2 to Papa to a spike in concrete; ~I E~KIIIBIT B 4. al. 08 30• 250.00 feet along same to a pipe in concrete: 5. 1500 27' 125.00 feet along easterly side of Alii Drive to a spike in concrete; 5. 2610 52, 50" 250.00 Feet along stonewall, a portion of Grant 7484 Ap. 2 to D. P. Waahila to a pipe in concrete; 7. 2610 21' 25' 321.88 feet along stonewall of same to the point of beginning and containing an area of 97,560 square feet or 2.23 Acres. All as shown on the map attached hereon, marked Exhibit "A" and by reference made a part hereof. SECT:ON 2. This change in diatrict CidJ a.1L1-c:a Ci uil-l-Y. conditioned upon the following: (A) The applicant, succeszor4 or assigns shall be responsible for complying with all stated conditions of approval; (3) A Special Management Area (SMA) Use Permit application for the proposed development shall be filed with the Planning Department within one year from the effective date of the change of zone: (C) A drainage system shall be installed in accordance with the requirements of the Department of Public Works: (D) Curbs, gutters and sidewalk improvements be provided along Alii Drive meeting with the approval of the Department of Public Works prior to receipt of occupancy permit for the proposed development; (E) Other roadway improvements along the Ruakini Highway and Alii Drive frontages, including accesses to the property, shall be provided in accordance with -2- the requirements of the Department of Public Works. A comprehensive traffic management proposal, approved by the Department of Public Works, shall be submitted with the Special Management Area (SMA) Use Permit application; (F) An intensive archaeological survey and mitigation plan be submitted with the SMA Use Permit application; (G) Should any unanticipated archaeological sites be uncovered during land preparation, activity, work within the affected area shall cease immediately and the Planning Director notified, Work within the affected area shall not resume until clearance is obtained from the Planning Director; (9) The method of sewage disposal shall meet with the approval of the appropriate governmental'agencies; (S) All applicable County and state laws, rules, regulations and requirements shall be complied with; (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 the requirements of the Unified Impact Fees Ordinance; (K)) . An annual progress report shall be submitted to the Planning Director prior to the anniversary date of the effective date of zone change. The report shall address the status of the development and t'he compliance with the conditions of approval. This condition shall remain in effect until all of the conditions of approval have been complied with and the -3- i:i It P. Al „Ad:00 JLD' rAi;L Planning Director acknowledges that further reports are not required; and (L) An 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 e9yond 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.elt 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 appropriate action. Further, should any of the conditions not be met or substantially complied with in a timely fashion, the Director may initiate rezoning of the area to its original or more appropriate designation. SECTION 3. In the event that any portion of this ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. -4- "'+1tl.~'c_-UV M^_u iI FAut . 1:i wl SECTION 4. This ordinance shall take effect upon its approval. INTRODUCED SY: C NCIL MEM CQL(NTY F 'rIAwAI_ Hilo, Hawaii Data of Introduction: April 5, 1989 'p Date of 1st Reading: April 5, 19.89 Date of Ind Reading: April 19, 1989 Effective Date: Anr11 25, 1989 -5- b - h~ t A rl- _'?"~j S ~ T~ RESORT - ,Ly ~r. ~j1 ~E•'. Lv'a .a- HoT~~. ~V ~t~., r,.t.f/j ~ ARL°.4a 7.~2$ AC:2S5 Ro i AMENDMENT TO THE ZONING CODE AMENDtiVG °LaCT10N 25-8°J (1KAlt_L7A Uf m^r-q 2o1N8 MA2°) Af~TiCLE (=H^ r- I mm ms; (MCNING CopE; of 7HU HAYVAII C==UN-r- r c00C, S'y GHAN31?14(S rHE ta)Ierr e1C-r ctiA5~1?~)C~TrcN ~.t=hr M~_; t~ 1A` T~ESORT-tiOT'°t- (v-I) A.-f- I=LJ^.^ -ZND, 40R-rH KONA, HIASNA)I. FY6t191T "Q.. COUNT' OF HAWAII STATE OF HAWAII BILL, NO. 444 ORDINANCE NO. 91 71 AN ORDINANCE AMENDING SECTION 25-89 (KAILUA URBAN ZONE MAP), ARTICLE 3, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE, RELATING TO MODIFICATIONS OF CONDITIONS B AND L OF ORDINANCE NO. 89-54, WHICH RECLASSIFIED 2.23 ACRES OF LAND FROM MULTIPLE FAMILY RESIDENTIAL (RM-1) TO RESORT HOTEL (V-1) ZONED DISTRICT, PUAA 2ND, NORTH KONA, HAWAII, TAX MAP KEY 7-5-9:40. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Ordinance No. 89-54 is amended as follows: "SECTION 2. This change in district classification is conditioned upon the following: (A) The applicant, successors or assigns shall be responsible for complying with all stated conditions of approval; (B) A Special Management Area (SMA) Use Permit application for the,proposed development shall be filed with the Planning Department within one year from the effective date of [the change of zone] this amendment; (C) A drainage system shall be installed in accordance with the requirements of the Department of Public Works; (D) Curbs, gutters and sidewalk improvements be provided along A1ii Drive meeting with the approval of the Department of Public Works prior to receipt of occupancy permit for the proposed development; (E) Other roadway improvements along the Kuakini Highway and Alii Drive frontages, including accesses to the property, shall be provided in accordance with the requirements of the Department of Public Works. A comprehensive traffic management proposal, EXHIBIT C approved by the Department of Public Works, shall be submitted with the Special Management Area (SMA) Use Permit Application; (F) An intensive archaeological survey and mitigation plan be submitted with the SMA Use Permit application; (G) Should any unanticipated archaeological sites be uncovered during land preparation activity, work within the affected area shall cease immediately and the Planning Director notified. Work within the affected area shall not resume until clearance is obtained from the Planning Director; (H) The method of sewage disposal shall meet with the approval of the appropriate governmental agencies; (I) All applicable County and St-ate 1-- r, lec regulations and requirements shall be complied with; (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 the requirements of the Unified Impact Fees Ordinance; (K) An annual progress report shall be submitted to the Planning Director prior to the anniversary date of the effective date of zone change. The report shall address the status of the development and the compliance with the conditions of approval. This condition shall remain in effect until all of the conditions of approval have been complied with and the Planning Director acknowledges that further reports are not required; and (L) An initial extension of time for the performance of conditions -2- 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 appropriate action. Further, should any of the conditions not be met or substantially complied with in a timely fashion, the Director [may] 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 this ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. -3- SECTION 4. This ordinance shall take effect upon its approval. INTRODUCED BY: ~t4~1 COUNCIL MEK I", ER, C NTY OF HAWAII Hilo, Hawaii Date of Introduction: July 3, 1991 Date of 1st Reading: July 3, 1991 Date of 2nd Reading: July 18, 1991 Effective Date: July 24, 1991 APPROVED AS TO FORM AND LEGALITY: °L CORPO TION COUNSEL DATE : 0 1991 -4- 1 pNEo J N1 UL- p~r---- AREA= ~-~3 SC°°~ o L _ AMENDMENT TO THE ZONING CODE AMa-ND!N(s 3ECTlON -:aE3-8°J CKAILl1A U~C3AN ZONE t.1A!°) AF--~ TICI_a ~3, C11A1°T>=f~ Z5 [ZONING CCC>a OF THE= HA!'VAII C~~1NT~( CO~C, LAY CHAN~IN~ -i-ryt= LI~T1-?ICT =L-A~~I~fC,~TlC;~1 t=.<-M N.--+--;~-_-° ~ll~Y IG~~I T I 2M-I Tc I~ESOf~T- IiOT=!- (V-1) AT PUA"A AND. NORTH Kc~NA, !!~WAiI. II A II Harry Kim k.y, y(; Christopher J. Yuen Mayor Director Roy R. Takemoto DeputyDirector i jf County of Hawaii PLANNING DEPARTMENT Aupuni Center • 101 Pauahi Street, Suite 3 • Hilo, Hawaii 96720 Phom (808)961.8288 9 Fax(808)961.8742 April 25, 2003 Mr. Ali Ghalamfarsa President Ali'i Architects Inc. 75-143 Hualalai Road, Suite 101 Kailua-Kona, HI 96740 Dear Mr. Ghalamfarsa: Change of Zone Ordinance No. 91-71 (REZ 628) Applicant: Daikyo Pacific, Inc. Request: Extension of Time to Condition B regarding filing of SMA Use Permit Application Tax Map Key: 7-5-009: 040; Pua' a 2od, North Kona, Hawaii This is to acknowledge receipt of your letter on March 24, 2003 and subsequent receipt of additional information on April 11, 2003, requesting an extension of time in which to file an SMA Use Permit Application to allow the development of a proposed shopping complex as required by Condition B of the above-described ordinance. We are unable to consider your request for an administrative time extension primarily since you are not the landowner and we have not received any documentation from the landowner providing you with the authority to initiate such action with the County. Secondly, further consideration for additional time to comply with Ordinance No. 91-71 will require the landowner or its authorized representative to re-file the request with the Hawaii County Council through this office. The original written request plus 15 copies and a filing fee of $250.00 must be submitted to this office for processing. According to your letter, an extension of time to comply with Condition B of Ordinance No. 91-71 is being requested due to efforts to purchase this property by your clients. The prospective owners have engaged the services of an archaeologist as well consultants to work on the SMA permitting process. Meetings have also been held with the Departments of Water, Environmental Management, and Public Works to discuss the standards procedures and requirements. By letter dated October 5, 1993 to Ms. Iris Okawa, who at the time represented landowner Daikyo Pacific, Inc., the applicant was informed that a total of three administrative- and Council-approved time extensions have been granted and that any further request for additional time must be considered by the County Council. A copy of this letter to Ms. Okawa is attached for reference. EXHIBIT D Mr. Ali Ghalamfarsa April 25, 2003 Page 2 We will attempt to contact Daikyo Pacific, Inc. to inform them of the need to file a request for an extension of time to comply with Condition B of Ordinance No. 91-71. Any further actions or decisions by this office will be dependent upon our discussions with the applicant. We will, however, keep you informed by copies of correspondences that may be directed to the applicant. Any questions may be directed to Daryn Arai of our West Hawaii Office at 327.3510. Sincerely, ,CHRIS OPER J. YUFN 0 Planning Director DSA:deb/dsa P:\WPWIN601Ueanne\Letters\L-Alii Architects Inc 7-5-9-40(2).doc Enclosure: PD letter dated October 5, 1993 to his Okawa c: w/encls: Daikyo Pacific, Inc. - c/o Ms. Iris Okawa The Pacific Law Group Bishop Street Tower, Suite 2000 700 Bishop Street Honolulu, HI 96813 c: West Hawaii Office THE PACTC LAW GROUP SteveaFOChow ~9 111E JIII Ralph R , LFOUntaine Iris R. Ckawa Attorneys At Law, A Law Corporation Michael N. Tanoua Bishop Street Tower, Suite 2000 Scott C. Arakakl 700 Bishop Street • Honolulu, Hawaii 96813 Patrick K. Kelly Telephone (808) 523-2999 • Facsimile (BOS) 523-7885 Kara B. Moran ThePacificLawGroup@PacLawGroup.com o/Ca Darryl M. Taira aira August 12, 2003 Brandon C. valvo• Ilcansea in callromia only VIA FACSIMILE: 1-808-961-8742 Mr. Christopher J. Yuen, Planning Director County of Hawaii Planning Department 101 Pauahi Street, Suite 3 Hilo, Hawaii 96720 Re: Change of Zone Ordinance No. 91-71 (REZ 628) Applicant: Daikyo Pacific, Inc. Request: Extension of Time Regarding SMA Use Permit Application TMK: 7-5-009:040 Pua'a 2nd North Kona Hawaii Dear Mr. Yuen: Thank you very much for providing us a copy of your letter dated Apri125, 2003 addressed to Mr. Ali Ghalamfarsa regarding the above referenced matter. This office represents Daikyo Pacific, Inc. ("Daikyo") as its attorney and legal counsel. Subsequent to receiving a copy of your letter, our client, Daikyo, the owner of the subject property, has instructed that we contact you on its behalf to request an extension of time to comply with Condition B of Ordinance No. 91-71, i.e., the filing of an application for a Special Management Area (SMA) Use Permit for a proposed development on the subject property. Background Daikyo purchased the property in 1991 as mentioned in the last Annual Progress Report dated April 1993. At that time, Japan was enjoying a strong economy and Japan companies were heavily engaged in overseas investments to many forms the world over. Established in 1964, Datkyo's parent in Tokyo grew to become Japan's largest condominium developer. In the late 1980's and early 1990's Daikyo noted that the Japanese were traveling in greater numbers to tropical destinations with beautiful oceans, including Hawaii. It was at this time that Daikyo decided to purchase the subject property in Kona with the intention of developing a resort geared to the Japan market as well as to the Western market, using its expertise in the condominium business in terms of development, construction, operation and marketing. Reasons for Delay in Application for SMA Permit Unfortunately, as 1991 drew to a close, a deep economic recession had begun in Japan. Forecasters at that time did not realize how long and deep the recession in Japan would be. While Daikyo paid for the subject property in cash, other projects in progress were subject to security interests and debt service. As has been well documented regarding the economy in Japan, the recession had a ripple effect throughout the country and touched many, EXHIBIT E 7E"HIE PACIMC° LAW GROUP Attorneys At Law, A Law Corporation Mr. Christopher J. Yuen August 12, 2003 Page 2 of 2 many companies, including Daikyo. Daikyo underwent restructuring and retrenchment on many of its projects. The planned development in Hawaii was placed on hold as the parent in Japan redefined its strategic goals, reduced liabilities, and concentrated on its core business, the domestic condominium market. This process was much more painful and lasted longer than originally anticipated. In addition, the Gulf War in 1991 had an economic impact worldwide, and its effects are still being felt in Japan as in Hawaii. The Hawaii Project, while still very desirable, would require significant amounts of additional capital which Daikyo did not have at that time. Accordingly, the conditions required by Zone Ordinance No. 91-71 seemed overwhelming to Daikyo from an economic point of view. Daikyo did not have the budget then for the expenses necessary to be incurred to develop the property and install the required infrastructure when their finances were being directed to business at home. When we were informed by letter dated October 5, 1993, that the County would initiate rezoning to its original designation if a request for an extension was not filed within 30 days of said letter, Daikyn, with Hall integriiVy, determined that it could not submit an application to the County based on conditions it knew it could not readily fulfill given the financial challenges it then faced in the domestic market. Daikyo had paid good consideration to acquire the Kona property which came with the V-1 Resort Hotel zoning as described in said ordinance and did not wish to lose value; yet, it was a victim of the recession. In the years since, Daikyo made significant progress in streamlining its operations and improving its financial performance. However, the effects of the long Japan economic recession continue to be felt in lower stock prices and higher unemployment rates in spite of the expectations that the government's structural reforms would have a positive effect. Unemployment and a depressed economy have naturally affected the housing market that Daikyo serves, and consequently, their revenues have not grown as quickly and at the levels desired. Opportunity for Development In the last two years, Daikyo has sent representatives to Hawaii to evaluate its activities here and to make recommendations regarding its major asset in Hawaii. Now that Daikyo is aware that the rezoning did not occur, Daikyo seriously wishes to protect its interest and to request the County for an extension of time so that it can pursue opportunities for the development of the property. Daikyo believes that with the appropriate synergy and alliance, it will be able to cause the development of the Property in a way in keeping with the County's plan for development. As you may be aware, Daikyo has listed the property for sale and is in serious negotiations with a potential buyer for the property, Mr. Ali Ghalamfarsa ("Buyer"), who has made inquiries with your office regarding the zoning issue. We believe Buyer or any other potential buyer of the property would wish Daikyo to preserve the SMA permit for zoning purposes should Buyer or other future buyer wish to pursue the permit application. Ordinance No. 89-54 expressly provides in Section 2 that "The applicant, successors, or assigns shall be responsible for complying with all stated conditions of approval..," Daikyo is working with Buyer (and desires to work with any other future buyer) to fulfill the conditions of the SMA permit. THE PACMC LAW GROUP Attorneys At Law, A Law Corporation Mr. Christopher J. Yuen August 12, 2003 Page 3 of 3 Request for Extension of Time This is to inform you that for the foregoing reasons, Daikyo will be preparing a request to the County Council for an extension of time to file the application for the SMA Permit. We appreciate the cooperation and assistance of your office, and particularly the West Hawaii Office, regarding this matter. Should you or your staff require further information, please do not hesitate to contact this office. We will assist Daikyo in providing information to you in a timely manner. Yours very truly, THE PACIFIC LAW GROUP Attorneys At Law, A Law orpolration By: IRIS R ( , WA IRO:of cc: West Hawaii Office, County of Hawaii Planning Department Daikyo Pacific, Inc. CB Richard Ellis Attn: Mr. Kevin Aucello Mr. Andres Albano ? Mr. Ali Ghalamfarsa March 1, 1989 tau ' F w . . _ - ` ' - t o t Ounl Y rounn i ! r Pal uni pr to s1. . p i l:, t. - , o,tl .-mf -1 0 ''r-:-01f Not,1 ~yQ l ,o" Y ,a Ia, •pa.._t~ tr, ,r .r, it njuar( ? - : i.ot 1 nF"r '-`I t , h'_f n i ll'. q !a'rtmt G'. khau Ln C.,., . a r in ._:ct, l..r,cr< 4 r .7 r 03.., tiN ':.i..-- t.hn A` pl1 C , t, __rf to t t. ,'i --4 K-11 nn, . _CL , fa. 'nr -Tlnfvt ..r.i= - ~ t - i"rvy tfit! :"rr -mW h-' u4 Inhar4ood, i;._4' rr C-'' ~A'Wq! E':Jt1Yt,. va,3Rk-Y0. ''r'' t _;'H?n LL:i°'}i ..t.v f)P id, e: p` r'.t(:t, 1 r1 rL1ir';t.; t.wo +00a'_ hull i Z r" N l a t3ca aEr4 ::virg wron. r(_r 'i:j'rn CU "p.liclut-, ' '..lat- 1:,''nDut" b he pr.lr'Vacn 1"C.-j_]1r): no 'A. , h On a';rt ' S.1J.oitp and r .LaNC. , as o! ,iF, 4P .Yn.r_ .;?'cc.. on! girt: shoi-,,s o _'-00AI....=:ilon f'C'.ncu with thn t'-,iivyin3 Ninning I!l.rat-V r'im 00 Lip:. . Patrc rn "410CIt.jpn 6A P'Op QUAG, rompnnt r V of i °._oner:K Plan 1 a a :ri?pt€.sent<a,t ion a th EXHIBIT F lip , ABC w the (:o67nY y council - cement''- qn, i`_.y ri licie,. st.ardayQW, Inc Ct,ltyvy ar act i0"P. Fr n n;Fn nraPhto O'[;1 Ui_'i on T r UV A !Ora uanl, '"k ~Upn Mai ,.ra!' _11 , -nd It _r ,t l rn , - , i r . An r .l yt .l A. 1' , la'AYy to the Lnll E_t map it t)ir? " 1. pro lr} e in order to co ide r an z r, . for any tyre p pan rds of th i Opp yral Plan must he . 'egoate ll' d r-<-sow, It It ar7?v through nhch -a comprehensive policy analysis dL'prtJor toot ev:al"at'inns and deci ',iops can by math to better time are •tm PIV; I<<,W-PtF t_r ±chiave rjrcwth eterl ine_ )y the Cp, r.al Map °,.7,W Pl rninu r-ncup rus. `il,r implications t, ,'r_,', rVnI_u1ticns are cecisions most also ncC ronsi. tif3':red as t buy rl have on i.r,1pacct on r'imi.ldr areas in the County. `tir'e: r.)e'u 'tf'r C: L,; CF `oQ t7onfCY Plan Lai, Une , al-Kcr y °.i MC tion ANOU (L7-MN unp 1 ' " t too o_ N S r i U r n s . Assignation Allow rn _orr r"I to - _omw rci orEn For lie VOW t' i srl. .a . C v - i , t r, e: ..,:rr ^ Win provides t:yyr 4.. c .,r,t.>YrCr "itlon [1 i-arl R.ativitle,, roLth 6ovp1n[>mpnt f,^currinq in an wr erl-/ monnor c .nr.p-rig>l tas, pith ,`ic pruvi-.ion 6E the n Cart KnUorn , .t.. r"„ l Plan ( i1PAG i'ip fe "Ini C.- _ UP rvrnrt l on Muni st -rr r.__ ani~ , }'-ni.inj , iglWSr ro Kn Mad ? me own to ,Ali! ive '('N:. r..r lnr'r WIN ll t ,.r 4 oWt; r; d care area ono in c'_C Yil-lipimlty other: cesarb cd,'6 resort-oriental '!,mmerc1a.l 'twit ic,S it p hr 'ra>']Ira area. I'r_x General .'.tin do r6 roc. i.gnor- Ks7_l.uv Vi.ll.ale an a major visitor inaflas _n,:ea. Ft i tb is for ir.i_er,,ine chat the re iue Ft. is ronsi3tfent w0h tho -[h,n form 6ppicted on too J JtA% Dog as , ~ th; area would ne hen ;terWon :'F th- t'egort" core Eon tht- Kc'i7.1.l1:= Villa`e -le..tinoti,on area. The i,r,unriny lam; also Resiqn1kod fur r.Pvtq uses r,n tbtE None RYdWonal Plan (K P) Land Up ,r,.73F11 11ap. the request Wol le Urn hp nrial'ant with the Mina Village Design plar, cr in .;1= are _ ont -ti 1_`v . auka it the myna l'l: I tan The _ iiila Village finf:F_f Design Plan tgirtreC w_ f... n 4a .1 _l_lCw'l n'I: "!i.ilt?tY 9Y' zoning Cf'.il,rle'!LatlCt r' relator! to permit- t1scs 12: t:"t K substantial !f§ount OP 'x.nn ;rvhl Russell Yokuhun, Ch ai.rrin nd Members of the County round ppnr, it _ C~Kw Q Qt hcbt. ~~rva: mq-rN l property includ:lnq rat.nil. sand nturtailim-nL. ` a c use a r e pormitf-d w 0 f i n the ueort/Ente ; o n e of Ph- e I ._Trerlon o f t h e Pl nning i i"'octot or based on cortnK nonKitions relate' to their proximity to a hotel or main. resort building. A re-soning to Village Commercial would .K av- the effect of excluding the property's uses for resort octi.vities which are also appropriate for the sites. Therefore, it is not advisoble: to re-zone them but to rec.ommenS that retail and estertn inme:nt he considered appropriate uses for the Resort/Hotel zone and pcrmittcO .:a,,,l an"-.ora my to the p r ^pcr `unct'nA of the resort area." T proporty is situated in an area earmarked for visitor-related commercial activities. Such commercial activities are cnnvi, Bred to be essential to the proper functioning of ,a rESCr! Mostination Orin as Fai,lun-Kon;l. Ira ordar to accrnl?liitodaLo the demand for additional resort land, other zoned areas within the dezignated resort core must_ considered. However, such expansion should occur in conformance= with the Cen€?ir ,al Plain .land use pattern as n1 scusped previousi.,1'. Since this property is within the area. earmarked for resort uses, it is determined the request will help to provide aNquvto i`Esort ar an for the needs A Kai lua Village In a concentrated manner consistent with the goals, policies, and land use pattor-n PKPr:`£'3nd in the General. Plan. ill essential utilities and services, .incluoingwater, are at will be made available to the property. Therefore, the request would complement the Land Use Element of the General Plan that states, "Wring requests shall te reviewed with respect to General Flan designation, district goals, State Land Use District, compatibility with adjacent zoned uses, availability of public service and utilities, access, and public need." The General Plan further states that areas to be considered for rezoning "shall. have basic improvements and amenities necessary for immediate use." Based on the foregoing, it is determined that approval of the subject request woul.4 result in an appropriate laano use pattern that will further the public necessity and r onvenienre aanO the general welfare. .nn r ,1.E I.i 10hucqn, Chairman _._..'y of the Ctzf.tnty council, For your fs'._varah3cT f. noidornr. ar, or amVin._m is to ewt' jop , to , -.fra nna hap, Pf _ u 4t'- i~ , I. 1,-: .0.,1U i I 1. "f too .-t.:llw t,., on. a of of c r- 4l , inp ,t;., For v our 15f-Y' if , , .f, r,, Yjrh V!i-t t. r., 'la - {roUgr Kin"afl,-bu:' :'a, 196U, I.: k,t?°3 to R~Q'a rJnI KIL Gary Kizuno Pnelasures Mr. irwin, KtY2'7.4.Rr'17;f2,cF n;i`y+Yltf7n" suefuji Department W Public Worke 00partnonk 0K 14tor Supply QLA P i i r"3;~'FtPlA';47 ahj;r,.t,!)ya ;::ray£>l:, hcc: Plan Approval Section DEPARTMENT OF PUBLIC WORKS COUNTY OF HAWAII HILO, HAWAII DATE: December 28, 203 n 07 U- T Memorandum TO Christopher J. Yuen, Planning Director Planning Department FROM Galen M. Kuba, Division Chief A Engineering Division SUBJECT Amendment to Change of Zone Ordinance No. 91-71(REZ 628) Applicant: Daikyo Pacific, Inc. Location: Puaa 2nd, N. Kona, HI TMK: 3 / 7-5-009:040 We reviewed the subject application and have the following comments, intended to supplement or update the ordinance: EARTHWORK The applicant shall comply with chapter 11-55, Water Pollution Control, Hawaii Administrative Rules, Department of Health, which requires an NPDES permit for certain construction activity. ROADWAYS 1. Access to Alii Drive/Walua Road and Kuakini Highway including the provision of adequate sight distances, shall meet with the approval of DPW. Movement restrictions or left turn storage lanes may be required. 2. Alii Drive and Walua Road, fronting the subject property, are County roads with approximate 50-foot wide rights-of-way. Alii Drive and Walua Road shall be improved to a 60-ft. right-of-way according to the County's General Plan. Merging rights-of-way cause the width to vary along the frontage. The applicant shall provide a 5-foot wide road widening setback easement along the Alii Drive/Walua Road frontage and dedicate it to the County at no cost upon request by DPW. The applicant shall provide full improvements to the entire frontage along Alii Drive/Walua Road consisting of, but not limited to, pavement widening with concrete curb, gutter and sidewalk, drainage improvements, and any relocation of utilities. Install street lights, signs and markings meeting with the approval of the DPW, Traffic Division. If concurrent and appropriate, in lieu of improving the subject AliiDrive/Walua Road frontage, the applicant shall participate with equivalent funding of and provide right-of-entry for, County planned Alii Drive improvements, meeting with the approval of the DPW. EXHIBIT Memorandum to PD December 28, 2003 Page 2 of 2 3. Kuakini Highway, fronting the subject property is a County Road. It has a 2-lane pavement, 22 feet wide, and minimal paved shoulders within an 80-foot right-of- way. The applicant shall provide full improvements to the entire frontage along Kuakini Highway consisting of, but not limited to, pavement widening with concrete curb, gutter and sidewalk, drainage improvements, and any relocation of utilities. Install street lights, signs and markings meeting with the approval of the DPW, Traffic Division. If concurrent and appropriate, and in lieu of improving the subject Kuakini Highway frontage, the applicant shall participate with equivalent funding of and provide right-of-entry for, County planned Kuakini Highway improvements, meeting with the approval of the DPW. TRAFFIC The subject ordinance includes under Conditon E, a requirement to submit a comprehensive traffic management proposal approved by the Department of Public Works "with the Special Management Area (SMA) Use Permit application." Perhaps the ordinance should be amended to 'prior to plan approval' if traffic issues are being excluded from SMA consideration. Such proposal should include or reference a current Traffic Impact Analysis Report (TZAR), prepared by a licensed professional traffic engineer, if required by DPW. Required improvements shall be installed by the applicant at no cost to the County. Should there be any questions concerning this matter, please feel free to contact Kiran Emler of our Kona Engineering Division office at 327-3530. KE copy: ENG-HILO/KONA PLNG-KONA SidneyFuke, Planning Consultant 100 Pauahi Street, Suite 212 • Hilo, Hawaii 96720 TT~----- • Planning • Variance, Zoning Telephone: (808) 969-1522 • Fax: (808) 969-7996 • Subdivision • Land Use Permits • Environmental Reports July 8, 20(~4jUL B pn (]8 c\l f Mr. Christopher Yuen, Director Planning Department COUNTY OF HAWAII 101 Pauahi Street Hilo, HI 96720 Dear Mr. Yuen: Subject: Rezoning Amendment (REZ 628) - Kona Oasis, Inc. (formerly Daikyo Pacific, Inc., Puaa, Kailua-Kona, HI, TMK: 7-5-09: 40 Thank you for providing me with a copy of the Department of Public Works' comments regarding the subject matter. Regarding its comments, please note the following: I. The applicant will secure all required permits relating to earthwork, such as grading or grubbing, including, if necessary, an NPDES permit. 2. On the issue of roadway and traffic, please refer to my response to the Department's comments on the SMA application. We trust that the aforementioned adequately responded to the comments. If not or if there are further comments on this matter, please feel free to contact me. Thank you very much. incerely, DNEYFUKE Planning Consultant Copy - Mr. Ali Ghalamfarsa w/ enclosure EXHIBIT rlsSS31 RKonaOasisl'EREZ.doc - 8/11/04 COUNTY OF HAWAII PLANNING DEPARTMENT RECOMMENDATION KONA OASIS, INC. CHANGE OF ZONE ORDINANCE NO.91 71 (REZ NO. 628) AMENDMENT TO CONDITION B Upon review of the request, the Planning Director recommends that a favorable recommendation to amend Condition B (file SMA Use Permit application) of Change of Zone Ordinance No. 91 71 be forwarded to the County Council. Since this recommendation is made without the benefit of public testimony, the Director reserves the right to modify and/or alter this position based upon additional information presented at the public hearing. This favorable recommendation is based on the following findings: The applicant is requesting an amendment to Conditions B of Ordinance No. 91 71 for a time extension to comply with Condition B which required the submittal of a SMA Use Permit application. • April 26,1989: Effective date of Ordinance No. 89 54 which rezoned the property from Multiple-Family Residential 1,000 square feet (RM-1) to Resort- Hotel 1,000 square feet (V-1.0). Condition B of the ordinance required the filing of a SMA Use Permit application within one year from the effective date of the change of zone. • May 22, 1990: First administrative time extension granted until April 26, 1991 to comply with Condition B. • July 24, 1991: Effective date of Ordinance No. 917 1, which amended Ordinance No. 89 54 for a time extension until July 24, 1992 to comply with Condition B. • June 29, 1992: Planning Director grants another administrative time extension to July 24, 1993 to comply with Condition B. • October 5,1993: As the July 24, 1993 deadline to comply with Condition B has passed, applicant is informed that a formal time extension request must be submitted to the County Council. A- • April 11, 2003: Applicant requests another time extension to Condition B, citing financial reasons for inability to comply with the condition. • April 23, 2003: Planning Department informs prospective buyer that an amendment to the ordinance is required for another time extension. • August 12, 2003: Attorney for landowner informs the Planning Department that a formal time extension would be forthcoming. • November 20, 2003: Current request to amend Condition B for a time extension to submit the required SMA Use Permit application. The applicant's representative requested that the time extension be heard simultaneously with the SMA Use Permit application for the 93-unit condominium project and related improvements. The inability of the applicant to comply with the requirements of Condition B of Change of Zone Ordinance No. 91 71 is the result of conditions that could not have been foreseen or are beyond the control of the applicant. The August 12, 2003 letter included as part of this request cites the recession in Japan, Gulf War and general economic downturn and related financial constraints in the domestic market as reasons for the applicant's inability to comply with Condition B. The applicant has streamlined its operations and improved its financial performance in ensuing years, although actual revenues continue to lag behind projected figures. The applicant, who recently purchased the property, wishes to preserve the requirement for the SMA Use Permit. A SMA Use Permit application for a 93-unit condominium project and related improvements is being processed simultaneously with the time extension request. The General Plan LUPAG Map designates the area as Medium Density Urban on the mauka portion, and Resort on the makai end. The Master Plan for Kailua-Kona, adopted by Resolution No. 371 98 effective September 6, 1996, identifies this area as "High Density Residential." All essential utilities and services are available to the site. It is recommended that Condition B be amended to continue to reflect a one-year time period to file the SMA Use Permit application, which the applicant has already done. -2- Based on the above findings, the proposed amendment to Condition B is not contrary to the original reasons for approving the Change of Zone. Since there were a number of conditions not included when this change of zone was originally granted, the Planning Director is now recommending that new Conditions D, E and F (specific roadway improvements), new Condition L (fair share contribution), and new Condition N (affordable housing) be included in the conditions of approval. It is recommended that a favorable recommendation to amend Condition B with new Conditions D, E, F, L and N and subsequent renumbering of conditions be forwarded to the County Council with the following changes to Ordinance No. 91 71: (Material to be deleted is bracketed and material to be added is underscored): A. The applicant, successors or assigns shall be responsible for complying with all stated conditions of approval; B. A Special Management Area (SMA) Use Permit application for the proposed development shall be filed with the Planning Department within one year from the effective date of this new amendment; C. A drainage system shall be installed in accordance with the requirements of the Department of Public Works; D. Access to Alii Drive/Walua Road and Kuakini Highway including the provision of sight distances, and the following movement restrictions, shall meet with the approval of the Department of Public Works: 1. Movement restrictions along Kuakini Highway shall include right in/right out when Kuakini Highway is improved to four lanes. 2. Movement restrictions along Alii Drive/Walua Road shall be determined when final geometries are submitted prior to receipt of Final Plan Approval. E. The applicant shall provide a 5-foot wide road widening setback easement along the Alii Drive/Walua Road frontage and dedicate it to the County at no cost upon request by the Department of Public Works. The applican t shall provide full improvements to the entire frontage along Alii -3- Drive/Walua Road consisting of, but not limited to, pavement widening with concrete curb, gutter and sidewalk, drainage improvements, and any relocation of utilities. Install street lights, signs and markings meeting with the approval of the Department of Public Works, Traffic Division. If concurrent and appropriate, in lieu of improving the Alii Drive/Walua Road frontage, the applicant shall participate with equivalent funding of and provide right-of-entry for County-planned Alii Drive improvements, meeting with the approval of the Department of Public Works. F. The applicant shall provide full improvements to the entire frontage along Kuakini Hi gbway consisting of, but not limited to, pavement widening with concrete curb, gutter and sidewalk, drainage improvements, and any relocation of utilities. Install street lights, signs and markings meeting with the approval of the Department of Public Works, Traffic Division. If concurrent and appropriate, and in lieu of improving the Kuakini Highway frontage, the applicant shall participate with equivalent funding of and provide right-of-entry for County-planned Kuakini Highway improvements, meeting with the approval of the Department of Public Works. meeting Nk4h the approval of the Depai4mefft of Publie AIE)Fks prior to [Ii] G. [Other ffent,,ges inel ing s to the « «°.t., shall be provided i comprehensive traffic management proposal, approved by the Department of Public Works, shall be submitted with the Special Management Area (SMA) Use Permit application; [F:] H. An intensive archaeological survey and mitigation plan be submitted with the SMA Use Permit application; -4- [Fr.] L Should any unanticipated archaeological sites be uncovered during land preparation activity, work within the affected area shall cease immediately and the Planning Director notified. Work within the affected shall not resume until clearance is obtained from the Planning Director; [lam] LThe method of sewage disposal shall meet with the approval of the appropriate governmental agencies; [1-] K. All applicable County and State laws, rules, regulations and requirements shall be complied with; L. The applicant shall make its fair share contribution to mitigate the potential regional impacts of the subject property with respect to parks and recreation, fire, police, solid waste disposal facilities and roads. The amount of the fair share contribution shall be the sum which is the product of multiplying the number of multiple family residential units proposed to be developed by the amounts allocated for each such unit, and shall become due and payable prior to the issuance of the Certificate of Occupancy for any unit on the subject property or its increments. If the subject property is developed in two or more increments, the amount of the fair share contribution due and payable prior to final subdivision approval of each increment shall be a sum calculated in the same manner according to the number of proposed multiple family residential units in each such increment. The fair share contribution, in a form of cash, land, facilities or any combination thereof, acceptable to the Planning Director in consultation with the affected agencies, shall be determined by the County Council. The fair share contribution shall have a maximum combined value of $6,206.06 per multiple-family residential unit. Based upon the applicant's representation of intent to develop a total of ninety- three (93) multiple-family residential units, the indicated total of fair share contribution is $577,163.58 for multiple-family residential units. However, the total amount shall be increased or reduced in proportion with -5- the actual number of units according to the calculation and payment provisions set forth in this condition. The fair share contribution shall be allocated as follows: 1. $3,061.27 per multiple-family residential unit for an indicated total of $284,698.11 to the County to support park and recreational improvements and facilities; 2. $96.75 per multiple-family residential unit for an indicated total of $8,997.75 to the County to support police facilities; 3. $297.62 per multiple-family residential unit for an indicated total of $27,678.66 to the County to support fire facilities; 4. $132.65 per multiple-family residential unit for an indicated total of $12,336.45 to the County to support solid waste facilities: an d 1 $2,617.77 per multiple-family residential unit for an indicated total of $243,452.61 to the State or County to support road and traffic improvements. The fair share contributions described above shall be adjusted annually beginning three years after the effective date of the change of zone, based on the percentage change in the Honolulu Consumer Price Index (HCPI). In lieu of paving the fair share contribution, the applicant may construct and contribute improvements/facilities related to parks and recreation fire police, solid waste disposal facilities, and roads within the region impacted by the proposed development, subject to the approval of the Planning Director. The cost of providing and constructing the improvements required in Conditions D, F, and F shall be credited against the sum specified in this condition for road and traffic improvements. For purposes of administering this condition, the fair market value of land contributed or the cost of any improvements required or made in lieu of the fair share contribution shall be subject to review and approval of the Planning Director, upon consultation with the appropriate agencies. Upon -6- approval of the fair share contributions or in lieu contributions by the Planning Director, the Planning Director shall submit a final report to the Council for its information that identifies the specific approved fair share and/or in lieu contributions, as allocated, and further implementation requirements. [3.] M. 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 the requirements of the Unified Impact Fees Ordinance; N. To ensure that the Goals and Policies of the Housing Element of the General Plan are implemented the applicant shall comply with the requirements of Chapter 11, Article 1, Hawaii County Code relating to Affordable Housing Policy. This requirement shall be approved by the County Housing Agency prior to final subdivision approval [I4.] O.An annual progress report shall be submitted to the Planning Director prior to the anniversary date of the effective date of zone change. The report shall address the status of the development and the compliance with the condition of approval. This condition shall remain in effect until all of the conditions of approval have been complied with and the Planning Director acknowledges that further reports are not required; and [.L.] P. An 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 granting of the change of zone; 4) -7- 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 appropriate action. Further, should any of the conditions not be met or substantially complied with in a timely fashion, the Planning Director shall initiate rezoning of the area to its original or more appropriate designation. The accompanying draft bill to amend Condition B of Ordinance No. 91 71 and add new Conditions D, E, F L and N is provided for your favorable consideration. -8-