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HomeMy WebLinkAboutCOM 0687.000 2004-2006Harry Kim Mayor County of Yrylawaff 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, Hawaii 96740 (808)329-5226 • Fax (808)326-5663 February 3, 2006 Honorable Stacy Higa, Chairman and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Chairman Higa and Members: Change of Zone Application (REZ 05-000025) Applicant: Hawaii Electric Light Company, Inc. Request: Open to MG -15a Tax Map Key: 7-3-49:36 and 37 Vhange of Zone Application (REZ 05-010) Applicant: Hiluhilu Development, LLC Request: Open and A -3a to Project District Tax Map Key: 7-2-5:1 Amendment to Change of Zone Ordinance No. 93-45 Initiator: Planning Director Request: Amendment to Certain Conditions for Land Proposed For Change of Zone filed by Hiluhilu Development, LLC Tax Mqp Key: 7-2-5:1 Dixie Kaetsu Managing Director PArbara Kossow Deputy Managing Director 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. SincAerely, t&-) Harry Kim Mayor Enclosures cc: Planning Department Hawaii County is an equal Opportunity Provider and Employer''' - `t Ref. To.. Rd. Dot , F E 0 10 2006 County of Hawaili PLANNING COMMISSION Aupuni Center • 101 Pauahi Street, Suite 3 • Hilo, Hawaii 96720 Phone(808)961-8288 • Fax(808)961-8742 February 3, 2006 Stacy Higa, Chairman and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Chairman Higa and Council Members: Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development, LLC Request: Open and A -3a to Project District Tax Mgp Key: 7-2-5:1 The Planning Commission, after a duly held public hearing on January 20, 2006, voted to recommend for your approval the proposed legislative bill to change the district classification from Open (0) and Agricultural 3 -acre (A -3a) to Project District for approximately 725.2 acres of land. The property is located northeast of the Kona International Airport at Keahole, between Queen Kaahumanu Highway and Makalei Estates Subdivision, Kau, North Kona, Hawaii. The Commission concurs with the following Planning Director's reasons for recommending favorable consideration of the change of zone: The applicant requests a change of zone from Open (0) and Agricultural 3 acres (A -3a) to Project District for a master planned community ("Palamanui") with a mix of uses. The proposed development includes: Approximately 590 single-family residential units on approximately 247 acres. 2. Approximately 255 multiple -family residential units on approximately 18 acres. The distribution of the proposed units between residential and mixed use areas will depend upon market conditions. Hawai `i County is an Equal Opportunity Provider and Employer Stacy Higa, Chairman and Members of the County Council Page 2 Commercial spaces for medical, office, retail, classrooms and health related uses and the University Village Inn on approximately 102 acres. This area includes village and community commercial uses such as village retail and services, village inn, residential mixed use and industrial mixed use. A maximum of 85 of the proposed 930 residential units are planned for mixed use with an additional 120 visitor units in the University Village Inn. 4. 18 -hole golf course on approximately 180 acres. The golf course will be developed and maintained in accordance with Audubon International's Signature Silver Program standards. 5. Active and passive parks (Open, Park and Preservation) on approximately 177.8 acres. This "Constraints Area" includes the 65 -acre dry forest preserve, archaeological sites/cave and park areas. 6. Trail system. 7. Minimum of 100 affordable housing units on-site; 50 for rent and 50 for sale. An estimated 1,841 jobs will be created in commercial, business and education activities upon project completion. The project will be developed in three phases taking approximately 10 years at over $300,000,000.00. Phase I involves infrastructure improvements; Phase II - residential improvements and Phase III - Multiple Family and commercial improvements. The applicant's overall objective is to develop a master planned community with a mix of uses. The applicant also requests variances from Chapter 23 (Subdivision Code) and Chapter 25 (Zoning Code). The proposed project follows a guiding design principle generally referred to as "New Urbanism", which emphasizes a pedestrian orientation in a village setting. The proposed variances fall into two general categories: 1) those that that facilitate development of the higher density town and residential center; and 2) those that maximize the development of the lower density golf -oriented residential lots. The applicant states that the variances relating to minimum block size, residential lot size, residential lot width and street frontage, street right-of-ways, street lighting, and the request to allow alleys in a residential development area all necessary to implement the New Urbanism philosophy. By Docket No. A03-744 dated May 19, 2005 the State Land Use Commission approved the redesignation of the property from the Conservation and Agricultural districts to the Urban district. In order to consider an area for any type of zoning designation, the applicable goals, policies and standards of the General Plan must be adequately addressed. It is only Stacy Higa, Chairman and Members of the County Council Page 3 through such a comprehensive policy analysis approach that evaluations and decisions can be made to better time and stage developments to achieve growth determined by the General Plan and related planning documents. The implications of these evaluations and decisions must be also considered as they may have an impact on similar areas in the County. The Project District (PD) development is intended to provide for a flexible and creative planning approach rather than specific land use designations. It will also allow for flexibility over time in the location of specific uses and mixes of structural alternatives. The planning approach would establish a continuity in land uses and designs while providing for a comprehensive network of infrastructural facilities and systems. A variety of uses as well as open space, parks, and other project uses are intended to be in accord with each individual Project District objective. A Project District is an amendment to Chapter 25, Zoning Code, which changes the district boundaries in accordance with the individual Project District. A Project District may be established whenever the public necessity and convenience and the general welfare require that a comprehensive planning approach for an area should be adopted in order to establish a continuity in land uses and designs while providing a comprehensive network of infrastructural facilities and systems. In addition, a Project District may only be established if the proposed district: (1) Is consistent with the intent and purpose of the Zoning Code and the County General Plan; and (2) Will not result in a substantial adverse impact upon the surrounding area, community or region. The Change of Zone Application from Open (0) and Agricultural 3 acres (A -3a) to a Project District (PD) zoned district is consistent with the intent and purpose of the goals, policies and standards of the General Plan Land Use and Economic Elements. The proposed development conforms to the Land Use, Single Family and Multi Family Residential and commercial sub elements, and Housing goals, policies, and standards of the General Plan. In addition, this proposed development is consistent with the Economic element of the General Plan in that the proposed development will provide additional and expanded employment opportunities for the residents of the area, as well as the entire island as a whole. The employment opportunities from the proposed development as a result of this zoning request will generate both short-term (construction) and long-term (operational) employment. Stacy Higa, Chairman and Members of the County Council Page 4 The applicant proposes to provide a mix of 930 single-family and multiple -family residential units. A total of 930 units will be added to the North Kona housing market. The addition of these units will provide an opportunity for residents to locate close to services, facilities, and places of employment within the region. In addition, a minimum of 100 affordable units will be provided on-site. The remaining affordable housing units required by Chapter 11 may also be constructed on-site or off-site. The request would therefore implement the Housing goals of the General Plan by maintaining a housing supply which allows a variety of choices, and attaining a diversity of socio-economic housing mix. The Land Use Pattern Allocation Guide (LUPAG) Map component of the General Plan is a representation of the document's goals, policies, standards and courses of action. It is also a graphic depiction of the physical relationships among the various land uses. The LUPAG Map establishes the basic land use pattern for areas within the County. The LUPAG Map designates the project site as an Urban Expansion Area. This designation allows for a mix of high density, medium density, and low density urban developments, industrial and/or open designations in areas where new settlements may be desirable, but where the specific settlement pattern and mix of uses have not yet been determined. Within areas designated for development as resorts, portions of the resort area may be included in the Urban Expansion Area. High Density allows uses relating to commercial, multiple residential and related services (general and office commercial; multiple residential - up to 87 units per acre). Medium Density allows uses relating to village and neighborhood commercial and residential and related functions (3 -story commercial; residential - up to 35 units per acre). Low Density allows single family residential in character, ancillary community and public uses, and convenience type commercial uses. Resort area include uses such as hotels, condominium -hotels (condominiums developed and/or operated as hotels), and supporting services. The change of zone from Open (0) and Agricultural (A -3a) to Project District (PD) will not result in a substantial adverse impact upon the surrounding area, community or region. The property is bordered by the Queen Kaahumanu Highway on the west and Makalei Estates (A -3a) to the east. Vacant lands to the north are owned by the State and zoned A -5a. State lands to the south zoned A -5a are proposed for the development of the University of Hawaii Center of West Hawaii. On November 21, 2002, the University of Hawaii, which owns approximately 500 acres adjacent to the subject property, entered into a MOU (amended April 16, 2004) with the applicant to consult and discuss joint development opportunities, with the applicant providing critical infrastructure for the University's development. The University selected the adjacent parcel as a suitable site for a permanent UH campus in West Hawaii. The MOU addresses the concept of a University Village. The applicant will develop a residential/commercial community on Stacy Higa, Chairman and Members of the County Council Page 5 its property, with a village town center on both the subject and the University's property. The town center is envisioned as a walking village linking the University's facilities with commercial, recreational and cultural facilities. Initially, the University will lease space from the applicant in the village town center on the applicant's property to relocate from the current campus in Kealakekua. It is expected that the lease agreement will be for a period of five to ten years until the University's facilities can be constructed on its adjacent land. The University supports the joint development because of the unique opportunity to develop a campus with community connection, the ability to lease space to relocate the UH Center, and the significant reduction in the cost of basic infrastructure. All utilities and services are available to the site. The Land Use element of the General Plan states that urban -type uses shall be developed in areas adequately served by essential services and infrastructure. From comments received from agencies, various improvements would be required for the development of this project. Therefore, conditions will be included to assure that services and infrastructure are provided in a timely manner to accommodate the uses proposed in this Project District. According to the applicant, a 12 -inch water line in the main road of the Makalei Estates subdivision, which is part of the County water distribution system, ends just west of the western end of the property. The 12 -inch main through Makalei Estates connects to the existing 12 -inch main in Mamalahoa Highway at the mauka end of Makalei Estates. There are two 0.05 million gallon reservoirs within Makalei Estates and a 0.30 million gallon reservoir approximately 1,800 feet mauka of the Mamalahoa Highway across from Makalei Estates. Two potable wells have been developed at the north and south mauka corners of the Makalei Estates subdivision. Each well has a production capacity of 750,000 gallons per day. Outfitting of the southern well is in the final stages of construction. After completion, the well will provide water to the County Department of Water Supply system. The northern well has been capped and will need to be outfitted to be activated as a source. The applicant, with the Department of Water Supply (DWS) and other major landowners in the area, will participate in the improvements to the DWS infrastructure to provide potable water for the project and other potential projects in the Kona area. The proposed water main connection between the Makalei Estates and the existing DWS reservoir mauka of the Kona International Airport at Keahole Airport Access Road and the Queen Kaahumanu Highway intersection will be a part of those improvements. In a letter dated August 10, 2005, the Department of Water Supply states that a Water Agreement dated June 15, 1999 between K -W Kau, LLC, K -W Kohanaiki, LLC, and the Water Commission of the County of Hawaii provides (the Petitioner) with 343 equivalent units of water at a maximum of 600 gallons per day per equivalent units. Forty-one (41) units have already been granted for Phases I and 11 of the Hiluhilu Development. The DWS further states "the remaining units of water will become Stacy Higa, Chairman and Members of the County Council Page 6 available upon completion of Section 3. 1, 'Conditions to Kau Commitment' as stated in the Water Agreement. Improvements in Section 3.1 include outfitting Well No. 2 with a 700 GPM submersible pump and providing the necessary appurtenances, a transmission line between Well No. 2 and Department of Water Supply's Puukala Tank, and a water system on the property built to the Department of Water Supply's standards." A self-contained private wastewater collection, treatment and disposal system is proposed for the project. The capacity of the wastewater treatment plant (WWTP) will be approximately 850,000 gallons per day. The wastewater treatment plant will produce "R- 1" recycled water in accordance with the Department of Health requirements for golf course irrigation. Recycled water will be the primary source of golf course irrigation water. In a memo dated July 12, 2005, and Department of Environmental Management as stated that no County sewer system is planned for this area. Conditions of approval will be included to mitigate any potential impacts from the development. An Archaeological Inventory Survey was completed by Rechtman Consulting, LLC and finalized in June, 2003. Of the 83 archaeological sites recorded during the study, 12 were recommended for preservation, 30 were recommended for data recovery, and no further work was recommended for the remaining 41 sites. Twenty-two (22) of the eighty-three (83) sites as well as a 65 -acre dryland native forest were proposed for preservation. In its April 5, 2004 letter, the DLNR-HPD stated that there are no known or recorded burials in the proposed Petition Area therefore currently not necessary to comply with Chapter 6E-43. However, the applicant must comply with Chapter 6E-43 if human remains or burials are inadvertently discovered during mitigation. The applicant will be required to develop and implement a Preservation Plan and a Data Recovery Plan. The applicant states that a Data Recovery Plan will be developed and submitted to the Department of Land and Natural Resources Historic Preservation Division (DLNR- SHPD) for review and approval for all sites recommended for data recovery. A Preservation Plan will also be prepared and submitted to the DLNR-HPD. In a letter dated March 10, 2005, the DLNR-HPD has stated that of the 83 sites in the project area, all but two were assessed as significant under Criterion D, and four sites were assessed as significant under Criterion E for their religious/ceremonial association. No burial sites were identified during the inventory survey. Twelve sites will be preserved. Data recovery will be undertaken at 28 pre -contact sites and one historic period site. The SHPD-HPD has accepted the significance assessments/recommended treatments and addendum report. Stacy Higa, Chairman and Members of the County Council Page 7 A Cultural Impact Assessment was completed by Maria Orr on December 11, 2003. No burials were discovered in the Petition Area. According to the assessment, important cultural resources on the site include: • certain habitation and agricultural features • petroglyphs and trail segments • lava tube cave habitation features and caves with evidence of water collection practices • botanical resources important to Hawaiian practitioners including a significant regenerating lama forest containing important native tress and plants • land forms and view planes of geographic features important in this portion of the Kekaha region. While the archaeological study of Dr. Robert Rechtman and the Cultural Impact Assessment by Maria Orr found that no traditional and customary Native Hawaiian rights exercised on the property, the consultants suggested specific measures for protection and management of these resources. The applicant agrees with the consultants' suggestion that the resources should be protected and managed. The applicant has submitted a plan titled, "Integrated Natural Cultural Resource Management Plan (INCRMP)" dated March 2005 to address these issues. The INCRMP addresses preservation, mitigation, management and stewardship measures for the resources at Palamanui. Implementation of the INCRMP is intended to protect and manage preservation areas and the important cultural places and practices in Palamanui. Valuable cave areas and certain view planes will be managed under an Integrated Natural Cultural Resources Management Plan (INCRMP) as part of this project. According to the applicant, the INCRMP will be a framework which protects and provides access to important cultural places and natural resources at the project site and will address preservation, mitigation, management and stewardship measures for the resources at the site. Implementation of the plan is intended to protect and manage the important cultural places and practices. The applicant will initially maintain the INCRMP but will subsequently be maintained by the Palamanui Master Association. A cultural advisory committee consisting of Native Hawaiians, kupuna and other cultural practitioners, will meet with the applicant twice a year or more frequently, if warranted. The North Kona Dryland Forest Working Group which includes natural resource experts, will be consulted regarding preservation efforts of the Dryland Forest Preserve. In addition, a Biological Assessment of the lava tubes in the project area was conducted by Hawaii Biological Survey and completed in December 2003. Five lava tube segments contained significant biological and cultural resources deserving protective management. The assessment recommended the development of a resource management plan to address mitigation measures to minimize the impacts upon the cave ecosystems. Stacy Higa, Chairman and Members of the County Council Page 8 The project will, if developed, generate additional traffic in the area. Thus, the applicant submitted a Final Traffic Impact Analysis Report (TIAR) dated December 7, 2004 conducted by Austin, Tsutsumi and Associates, Inc. Primary vehicular access to the property will be from a new roadway intersection on Queen Kaahumanu Highway. A mauka-makai connector road between the Queen Kaahumanu Highway and the Mamalahoa Highway will be provided, meeting with the approval of the County. The applicant is pursuing an alignment which could connect north of Makalei Drive so that Makalei Drive would not have to be the only point of connection to the Mamalahoa Highway. The applicant proposes to request the County to limit motor vehicle traffic on Makalei Drive. The applicant also proposes to construct a public road connection from Palamanui Village Center and the main project access road to Kaiminani Drive. The Planning Director does not agree with the Department of Public Works' recommendation regarding the road connections to the north of the project site, except for the road that will connect to the Mamalahoa Highway in the future. The General Plan does not support urban expansion to the north, as lands to the north are designated Conservation and Extensive Agriculture in the General Plan. Furthermore, lands to the north are state lands designated Conservation and Agricultural, and development should occur on urban lands towards Kailua-Kona instead of away from Kailua-Kona. The General Plan maps do not show these roads as going past the subject property, and the applicant will be constructing a road from the Queen Kaahumanu Highway north of the airport with connection to the "Mid -Level" and other "K to K" roads. Therefore, a road system parallel to the Queen Kaahumanu Highway to the north of the property is unwarranted at this time. Impacts associated with this project development such as historical, visual, traffic, drainage and design concerns have been assessed through the Environmental Impact Statement which was accepted by the State Land Use Commission on October 7, 2004 and will be mitigated through conditions of approval. Therefore, the request would not unreasonably burden the public agencies to provide roads and streets, sewers, water, drainage, school improvements, and police and fire protection. The proposed change of zone would allow for uses which would complement the uses in this area. The subject request is not contrary to Chapter 205A, Hawaii Revised Statues, relating to Coastal Zone Management. The property is not located in the Special Management Area. The site is located mauka of the Queen Kaahumanu Highway, is not an oceanfront property, and will not be impacted by coastal hazard and beach erosion. There is no record of a designated public access that traverses the property. According the applicants, no valued cultural, historical or natural resources exist on the property and there is no evidence of any traditional and customary Native Hawaiian rights being Stacy Higa, Chairman and Members of the County Council Page 9 practiced on the site. Thus, it is not anticipated that the proposed request will have any adverse impact on cultural or historical resources in the area. In view of the Hawaii State Supreme Court's "PASH" and "Ka Pa'akai O Ka Aina " decisions, the issue relative to native Hawaiian gathering and fishing rights must be addressed in terms of the cultural, historical, and natural resources and the associated traditional and customary practices of the site: Investigation of valued resources: The following information was submitted for review: • Archaeological Inventory Survey of the Kau Development Area, Rechtman Consulting, June, 2003 Biological Reconnaissance, Lands of Kau, North Kona, Hawaii, Patrick Hart, Ph.D. October, 2003 • Biological Assessment of the Lava Tubes of the Hiluhilu Development Area, Kau, North Kona, Hawaii, Francis G. Howarth, David J. Preston, Shelley Anne James, December 2003 • Hiluhilu Cave Fauna Survey (Hawaii Biological Survey, December 2003) • Cultural Impact Study, Maria E. Ka'imipono Orr, December 11, 2003 • Integrated Natural Cultural Resource Management Plan (INCRMP) for Palamanui, March 2005. The valuable cultural historical and natural resources found in the rezoning area: An Archaeological Inventory Survey was completed by Rechtman Consulting, LLC and finalized in June, 2003. Of the 83 archaeological sites recorded during the study, 12 are recommended for preservation, 30 are recommended for data recovery, and no further work is recommended for the remaining 41 sites. Twenty-two (22) of the eighty-three (83) sites, as well as a 65 -acre dryland native forest will be preserved, and valuable cave areas and certain view planes will be managed under an Integrated Natural Cultural Resources Management Plan (INCRMP) as part of this project. The applicant has stated that work will cease and the Planning Department will be notified if any unanticipated archaeological features or sites are discovered during the course of project development. Possible adverse effect or impairment of valued resources: The Final Environmental Impact Statement accepted by the State Land Use Commission on October 7, 2004, addressed probable impacts and mitigative measures as a result of project development. Although the project will have a significant impact on the land, some impacts are positive, and many negative impacts can be mitigated. Established standards and controls that require developers to consider and manage potential negative effects Stacy Higa, Chairman and Members of the County Council Page 10 should effectively limit and mitigate foreseeable long-term impacts. Native plants could be destroyed by construction and ground alteration. However, the applicant is proposing a "Constraints Area", preservation areas which include the dry forest preserve areas and archaeological sites and cave areas. The property does not abut the shoreline, therefore Hawaiian gathering and fishing rights is not an issue. Based on the above findings, approval of the Change of Zone request from Open (0) and Agricultural 3 -acres (A -3a) to Project District (PD) would result in an appropriate land use pattern and further the public benefit. The Commission in making this favorable recommendation neither rejected nor endorsed the concept of the mauka connector through Makalei Estates and requested that the County Council further examine this matter. For your favorable consideration, an amendment to Section 25-8-3 (North Kona Zone Map), of the County Zoning Code is transmitted. We are enclosing copies of the staff Background and Planning Director's Recommendation for your information. Sincerely, . Al eda, Chairman Planning ommission Lhi luhiluxz05-01 OPC2 Enclosures cc: Mr. Guido Giacometti Mr. Lee Sichter/Belt Collins Mr. Roger Harris Mr. F. Guy Lam Department of Public Works Department of Water Supply Planning Department - Kona Department of Land & Natural Resources-HPD/Kona Rodney Haraga, Director/DOT-Highways, Honolulu MiluhiluMdoc-12/13/05 (revised 1/12/06) COUNTY OF HAWAII PLANNING DEPARTMENT BACKGROUND REPORT HILUHILU DEVELOPMENT LLC CHANGE OF ZONE APPLICATION MZ 05-0101 HILUHILU DEVELOPMENT LLC has submitted an application for a Change of Zone from Open (0) and Agricultural 3 -acres (A -3a) to Project District for approximately 725.2 acres of land. The project, referred to as "Palamanui", proposes a master planned community with a mix of single-family and multiple -family residential units (approximately 930 units), commercial spaces, 120 -room University Village Inn, 18 -hole golf course, dry forest preserve, archaeological and cave preserve areas, active and passive parks, a trail system and supporting infrastructure. As part of the request, the applicant requests deviations from the minimum lot size, setback and roadway requirements. The property is located northeast of the Kona International Airport at Keahole, between the Queen Kaahumanu Highway and Makalei Estates Subdivision, Kau, North Kona, Hawaii, TNM: 7-2-5: 1. PROPOSED DEVELOPMENT 1. Request: Change of zone from Open (0) and Agricultural 3 -acres (A -3a) to Project District for a master planned community ("Palamanui") with a mix of uses. (Exhibit 1 - Project District Application) The proposed development includes: A. Approximately 590 single-family residential units on approximately 247 acres. E. Approximately 255 multiple -family residential units on approximately 18 acres. The distribution of the proposed units between residential and mixed use areas will depend upon market conditions. C. Commercial spaces for medical, office, retail, classrooms and health related uses and a University Village Inn on approximately 102 acres. This area includes village and community commercial uses such as village retail and services (approximately 94 acres), village inn (approximately 8 acres), residential mixed -1- ATTACH: Corrm. 687 Bill�� Subdivision and Zoning Codes, Applicant's Figure 2 - Conceptual Character of Town Center/Residential Village Center, Figure 3a - Residential Village Center Alternatives - 4,000 SF Lot, Figure 3b - Residential Village Center Alternatives — 6,000 SF Lot, Figure 4a - Conceptual Plan: Roadway Concepts - Dedicable, Figure 4b - Conceptual Plan: Roadway Concepts - Nondedicable, and Figure 5 - Residential Village Center Alternatives: Zone Lot Line Concepts) 5. Landowner: Hiluhilu Development, LLC. OTHER INFORMATION 6. Chapter 343, HRS: The proposed action initially involved the development of lands in the State Land Use Conservation District. As such, an Environmental Impact Statement was required pursuant to Chapter 343, Hawaii Revised Statutes (HRS), and the Environmental Impact Statement Rules, Title 11, Chapter 200 of the Hawaii Administrative Rules (HAR). The Final EIS was accepted by the State Land Use Commission on October 7, 2004 and notice was provided in the October 23, 2004 bulletin of the Office of Environmental Quality Control. Existing Ordinance: Ordinance No. 93 45 effective May 12, 1993 reclassified approximately 727.8 acres from the Unplanned (U) to the Agricultural (A -3a) district. This ordinance amended the district classification of the subject area zoned A -3a (450.323 acres) as well as the area currently the site of the Makalei Estates Subdivision. As a result of the Project District request, amendments to applicable conditions relating to the Project District area are being considered. (Exhibit 3 - Ordinance No. 93 45) 8. Memorandum of Understanding (MOU): On November 21, 2002, the University of Hawaii, which owns approximately 500 acres adjacent to the subject property, entered into a MOU (amended April 16, 2004) with the applicant to consult and discuss joint development opportunities, with the applicant providing critical infrastructure for the University's development. The University selected the adjacent parcel as a suitable site for a permanent UH campus in West Hawaii. The MOU addresses the concept of a University Village. The applicant will develop a residential/commercial community on its property, with a village town center on both the subject and the University's property. -3- The town center is envisioned as a walking village linking the University's facilities with commercial, recreational and cultural facilities. Initially, the University will lease space from the applicant in the village town center on the applicant's property to relocate from the current campus in Kealakekua. It is expected that the lease agreement will be for a period of five to ten years until the University's facilities can be constructed on its adjacent land. The University supports the joint development because of the unique opportunity to develop a campus with community connection, the ability to lease space to relocate the UH Center, and the significant reduction in the cost of basic infrastructure. (Exhibit 4 - Memorandum of Understanding) STATE AND COUNTY PLANS 9. State Land Use Designation: Urban. By Docket No. A03-744 dated May 19, 2005, the State Land Use Commission approved the redesignation of the property from the Conservation and Agricultural districts to the Urban district subject to conditions. 10. GP LUPAG Map: Urban Expansion Area. 11. County Zoning: Open (0), 274.861 acres and Agricultural 3 -acre (A -3a), 450.343 acres. 12. Project District: The Project District (PD) zone is intended to provide for a flexible and creative planning approach rather than specific land use zone designations. It will also allow for flexibility in location of specific uses and mixes of structural alternatives. The planning approach would establish a continuity in land uses and designs while providing for a comprehensive network of infrastructural facilities and systems. A variety of uses as well as open space, parks, and other project uses are intended to be in accord with each individual Project District objective. A Project District may be established as an amendment to the Zoning Code whenever the public necessity and convenience and the general welfare require that a comprehensive planning approach for an area should be adopted in order to establish a continuity in land uses and designs while providing a comprehensive network of infrastructural facilities and systems. In addition, a Project District may only be established if the proposed district: (1) Is consistent with the intent and purpose of this chapter and the County -a- General Plan; and (2) Will not result in a substantial adverse impact upon the surrounding area, community or region. The minimum land area required for a Project District is fifty acres. (Exhibit 5 - Section 25-640, Project District - Zoning Code) 13. The Keahole to Kailua Development (K to K) Plan: The Keahole to Kailua Development Plan adopted by Resolution No. 296 91 on April 3, 1991 designates the property for residential uses. The lower portion of the property, consisting of a band approximately 4,000 feet wide starting at the Queen Kaahumanu Highway, is designated Open/Recreation. An area within the property is designated as a Village Center. The Plan states that the Lands of Kau could provide housing for the resorts in North Kona and South Kohala, and additional golf courses could be developed in this area 14. Coastal Zone Management, HRS, Chapter 205A: The entire State of Hawaii lies within the Coastal Zone Management area. . 15. Special Management Area (SMA): The project site is located mauka of the Queen Kaahumanu Highway over 1.5 miles from the shoreline, and not in the SMA. The SMA is a part of the Coastal Zone Management Program regulated by the County. DESCRIPTION OF PROJECT SITE AND SURROUNDING AREA 16. Subject Property: Located along the east (mauka) side of the Queen Kaahumanu Highway and the Kona International Airport at Keahole, the project site consists of approximately 725.2 acres of unimproved vacant land within the ahupuaa of Kau, North Kona, Hawaii. The slope varies from 5 to 10 percent on the lower half of the property with 10 to 20 percent slopes on the upper half of the property. The project site was previously used for ranching. -5- 17. Surrounding Zoning and Land Uses: The property is bordered by the Queen Kaahumanu Highway on the west and Makalei Estates (zoned A -3a) to the east. Vacant lands to the north are owned by the State and zoned A -5a. State lands to the south zoned A -5a are proposed for the development of the University of Hawaii Center of West Hawaii. The airport access road is located south and slightly less than one mile from the property. 18. Elevation: The property rises in elevation from approximately 150 feet at its lower elevation to 900 feet at its highest point. 19. U.S.D.A. Soil Type: Punaluu extremely rocky peat (rPYD), Kaimu extremely stony peat (rKED) and Pahoehoe (rLW) and A'a (rLV) lava flows. The Punaluu series consists of well -drained thin organic soils over pahoehoe bedrock. The peat is rapidly permeable, the underlying lava is slowly permeable, runoff is slow and the erosion hazard is slight. Soils of this type are generally used for pasture. The Kaimu series consists of well - drained, thin organic soils over A'a lava. Permeability is rapid, runoff is slow, and the erosion hazard is slight. The Kaimu soil is not suitable for cultivation. The middle portion of the property consists of the Punaluu series with pockets of Na lava flows. The lower area proximate to the Queen Kaahumanu Highway consists of Pahoehoe and A'a lava flows. 20. Land Study Bureau's Productivity Rating: "E" or "Very Poor". 21. ALISH: Unclassified. 22, Flora: A Biological Reconnaissance was conducted by Patrick Hart, Ph.D and completed in October, 2003. Twenty-seven (27) native and thirty-five (35) introduced plant species were detected. Three (3) federally listed endangered species ('aiea, halapepe and uhiuhi) and two (2) species of concern (maiapilo and a'ali'i) were identified. Recommended mitigation measures include the following: Preserve the entire Lowland Dry Forest fragment and develop a sound management plan for the forest. Tree cutting or grubbing should be carried out from September through May to avoid the potential take of Hoary Bats during their breeding season. 0 If grubbing or tree -cutting in forested areas (outside the proposed Dry Forest Preserve) occurs during the Hawaiian Hawk breeding season from March - October, a nest survey should be conducted to avoid potential take of nesting Hawaiian Hawks. If a nest is detected, work in the area should cease. • Preserve as many wiliwili stands as possible. Preserve all maua,'aiea, and uhiuhi trees. Select native species that occur naturally in the area as landscaping elements in areas that will be bulldozed. 23. Fauna: Three species of native birds ('Io, Pueo and Hawaii'Amakihi) and eleven species of introduced birds were identified on the site. Goats, rats and mongoose were found on the site. 24. Groundwater Impact: A water study for the project conducted by Waimea Water Services, Inc. in June, 2003 concluded that there are no bodies of water, including the underlying brackish lens in the vicinity of the project, which might be negatively impacted by the project. The study also concluded that there are no streams or drainageways in the area. 25. Noise Impacts: Construction -related dust and short-term or temporary noise during construction will be generated by site preparation activities for the project. However, existing standard construction practices will be employed to mitigate any impact of dust and noise. 26. Air Quality: Potential impacts to local air quality are expected to be minimal. 27. Rainfall: Annual average rainfall in the area is approximately 25 inches. 28. FIRM: Zone "X", an area outside of the 500 -year flood plain. 29. Coastal Hazards: The property is located mauka of the Queen Kaahumanu Highway and will not affect or be affected by shoreline processes. 30. Recreational Resources: The proposed development will not reduce the size of the coastline or other areas used for public recreational uses. 31. Visual Resources: An 800 -foot setback from the Queen Kaahumanu Highway will be established to maintain the viewplane and open space character of the highway corridor. 7- 32. Archaeological/Historical Resources: An Archaeological Inventory Survey was completed by Rechtman Consulting, LLC and finalized in June, 2003. Of the 83 archaeological sites recorded during the study, 12 were recommended for preservation, 30 were recommended for data recovery, and no further work was recommended for the remaining 41 sites. Twenty-two (22) of the eighty-three (83) sites, as well as a 65 -acre dryland native forest are proposed for preservation. By letter dated April 5, 2004, the DLNR-HPD stated that there are no known or recorded burials in the project site; therefore, currently it is not necessary to comply with Chapter 6E-43. However, the applicant must comply with Chapter 6E-43 if human remains or burials are inadvertently discovered during mitigation. The applicant will be required to develop and implement a Preservation Plan and a Data Recovery Plan. The applicant states that a Data Recovery Plan will be developed and submitted to the Department of Land and Natural Resources Historic Preservation Division (DLNR- SHPD) for review and approval for all sites recommended for data recovery. A Preservation Plan will also be prepared and submitted to the DLNR-HPD. In a letter dated March 10, 2005, the DLNR-HPD has stated that of the 83 sites in the project area, all but two were assessed as significant under Criterion D, and four sites were assessed as significant under Criterion E for their religious/ceremonial association. No burial sites were identified during the inventory survey. Twelve sites will be preserved. Data recovery will be undertaken at 28 pre -contact sites and one historic period site. The SHPD-HPD has accepted the significance assessments/recommended treatments and addendum report. 33. Cultural Resources: A Cultural Impact Assessment was completed by Maria Orr on December 11, 2003. No burials were discovered in the project area. According to the assessment, important cultural resources on the site include: certain habitation and agricultural features petroglyphs and trail segments lava tube cave habitation features and caves with evidence of water collection practices -8- botanical resources important to Hawaiian practitioners including a significant regenerating lama forest containing important native tress and plants land forms and view planes of geographic features important in this portion of the Kekaha region While the archaeological study by Dr. Robert Rechtman and the Cultural Impact Assessment by Maria Orr found that no traditional and customary Native Hawaiian rights were exercised on the property, the consultants suggested specific measures for protection and management of these resources. The applicant agrees with the consultants' suggestion that the resources should be protected and managed. Valuable cave areas and certain view planes will be managed under an Integrated Natural Cultural Resources Management Plan (INCRMP) as part of this project. According to the applicant, the INCRMP will be a framework which protects and provides access to important cultural places and natural resources at the project site and will address preservation, mitigation, management and stewardship measures for the resources at the site. Implementation of the plan is intended to protect and manage the important cultural places and practices. The applicant will initially maintain the INCRMP but will subsequently be maintained by the Palamanui Master Association. A cultural advisory committee consisting of Native Hawaiians, kupuna and other cultural practitioners, will meet with the applicant twice a year or more frequently, if warranted. The North Kona Dryland Forest Working Group which includes natural resource experts, will be consulted regarding preservation efforts of the Dryland Forest Preserve. A biological assessment of the lava tubes in the project area was conducted by Hawaii Biological Survey and completed in December 2003. Five lava tube segments contained significant biological and cultural resources deserving protective management. The assessment recommended the development of a resource management plan to address mitigation measures to minimize the impacts upon the cave ecosystems. 34. Public Access: There is no record of a public access to the mountain or shoreline areas that traverses the property. The applicant states that "Native Hawaiians will be allowed to remove a limited amount of timber from Palamanui for personal, non-commercial use. -9- Any such activity would be subject to conformity with the Integrated Natural Cultural Resource Management Plan". 35. Traffic: The applicant submitted a Final Traffic Impact Analysis Report (TIAR) dated December 7, 2004 conducted by Austin, Tsutsumi and Associates, Inc. The TIAR recommended the following: General Recommendations - Construct Main Street as a two-lane roadway from the project site to Kaiminani Drive to provide a third access roadway to the project site and access for area residents to the Palamanui site without having to use Queen Kaahumanu Highway. Construct a direct access on Mamalahoa Highway north of Makalei Estates Access Road by Phase Il of the project. Construct the Northern Project Access Road - Install a traffic signal system at the Queen Kaahumanu Highway/Northem Project Access Road intersection. Protide an exclusive left -turn lane for the Queen Kaahumanu Highway southbound approach. • Provide a right -tum deceleration lane for the Queen Kaahumanu Highway northbound approach. Provide an exclusive right -tum lane and a separate left -turn lane for the Northern Project Access Road westbound approach. Provide an exclusive right -tum lane and two (2) exclusive left -turn lanes for the Northern Project Access Road westbound approach when Queen Kaahumanu Highway is widened at this intersection. The DPW has provided comments regarding recommended improvements to the proposed streets. (Refer to Exhibit 7 - October 24, 2005 Department of Public Works' memo) ao- PUBLIC UTILITIES AND SERVICES 36. Access: Primary vehicular access to the property will be from a new roadway intersection on Queen Kaahumanu Highway. The access road at Queen Kaahumanu Highway is located north of the existing Queen Kaahumanu Highway/Keahole Airport Road intersection and along the southern border of the property. A public mauka-makai connector road between the Queen Kaahumanu Highway and the Mamalahoa Highway will be provided, meeting with the approval of the County. The applicant proposes to request the County to limit motor vehicle traffic on Makalei Drive. The applicant also proposes to construct a public road connection from Palamanui Village Center and the main project access road to Kaiminani Drive. In a letter dated September 28, 2005, the Department of Transportation has stated that the proposed project has completed several coordinated reviews with their department, with the following understanding: • the applicant will be pursuing the Northern Project Access Road in lieu of the Airport Access Road under Phase 1 of the development. • the applicant will also construct a new two-lane north -south roadway parallel to the Queen Kaahumanu Highway, and connecting the project to Kaiminani Drive in this initial phase. • plans for the Northern Project Access Road and any other work within the State right-of-way will be coordinated with the Highways Division for review and approval. • the applicant will submit an updated Traffic Impact Analysis Report(s) to the DOT for review and approval prior to proceeding with any subsequent phases of its development. 37. Water: There is no existing water system on the property. According to the applicant, a 12 -inch water line in the main road of the Makalei Estates subdivision, which is part of the County water distribution system, ends just west of the western end of the property. The 12 -inch main through Makalei Estates connects to the existing 12 -inch main in Mamalahoa Highway at the mauka end of Makalei Estates. There are two 0.05 million -11- gallon reservoirs within Makalei Estates and a 0.30 million gallon reservoir approximately 1,800 feet mauka of the Mamalahoa Highway across from Makalei Estates. Two potable wells have been developed at the north and south mauka corners of the Makalei Estates subdivision. Each well has a production capacity of 750,000 gallons per day. Outfitting of the southern well is in the final stages of construction. After completion, the well will provide water to the County Department of Water Supply system. The northern well has been capped and will need to be outfitted to be activated as a source. The applicant, with the Department of Water Supply (DWS) and other major landowners in the area, will participate in the improvements to the DWS infrastructure to provide potable water for the project and other potential projects in the Kona area. The proposed water main connection between the Makalei Estates and the existing DWS reservoir mauka of the Kona International Airport at Keahole Airport Access Road and the Queen Kaahumanu Highway intersection will be a part of those improvements. In a letter dated August 10, 2005, the Department of Water Supply states that a Water Agreement dated June 15, 1999 between K -W Kau, LLC, K -W Kohanaiki, LLC (Exhibit 6 Water agreement), and the Water Commission of the County of Hawaii provides the applicant with 343 equivalent units of water at a maximum of 600 gallons per day per equivalent units. Forty-one (41) units have already been granted for Phases I and II of the Hiluhilu Development. The DWS further states, "the remaining units of water will become available upon completion of Section 3. 1, 'Conditions to Kau Commitment' as stated in the Water Agreement. Improvements in Section 3.1 include outfitting Well No. 2 with a 700 GPM submersible pump and providing the necessary appurtenances, a transmission line between Well No. 2 and Department of Water Supply's Puukala Tank, and a water system on the property built to the Department of Water Supply's standards." 38. Wastewater: A self-contained private wastewater collection, treatment and disposal system is proposed for the project. The capacity of the wastewater treatment plant (WWTP) will be approximately 850,000 gallons per day. The wastewater treatment plant will produce "R-1" recycled water in accordance with the Department of Health _t2_ requirements for golf course irrigation. Recycled water will be the primary source of golf course irrigation water. In a memo dated July 12, 2005, and Department of Environmental Management as stated that no County sewer system is planned for this area. 39. Solid Waste: Solid waste will be disposed of by private hauling contractors or individuals to approved transfer stations or the Puuanahulu landfill site. A Solid Waste Management Program will be developed to identify efforts to minimize waste generated by the project. 40. Essential Utilities and Services: Electricity and telephone services are available to the site. Police protection will be provided from the Kealakehe station. The closest fire station is located near the corner of Palani Road and Queen Kaahumanu Highway in Kailua-Kona. The County is also planning a Kalaoa fire station. The Kona Community Hospital is located approximately ten (10) miles south of the project site in Kealakekua. Several private clinics are located in Kailua-Kona. 41. Schools: The proposed University of Hawaii West Hawaii campus will be located adjacent to the property to the south. Kealakehe High School is located at Kealakehe mauka of the Queen Kaahumanu Highway and Kealakehe Elementary and Intermediate School complexes are located along the north side of Palani Road. The applicant will enter into an agreement with the State Department of Education to contribute to school needs in North Kona. 42. Parks: There is no County park facility in the immediate area. The closest complex is located at the Old Kailua Airport in Kailua-Kona. The applicant proposes to incorporate approximately 178 acres of open, park and dry forest preserve within the project area. In a memo dated July 13, 2005, the Department of Parks and Recreation has stated that "there is a shortage of park space in the Kona area", and recommends that there be "a provision in the rezoning to include park space before the occupancy of the first completed home. There should be a 5 -acre park before the I" through 300t' unit is occupied, with another 5 -acre park before the 3015, unit is occupied, and a third 5 -acre park before the 6015' unit is occupied." -13- AGENCIES' AND ORGANIZATIONS' COMMENTS 43. Department of Public Works: Exhibit 7 - October 24, 2005 memo 44. Department of Water Supply: Exhibit 8 - August 10, 2005 memo and applicant's response letter dated August 25, 2005 45. Department of Environmental Management: Exhibit 9 - July 12, 2005 memo 46. Fire Department: Exhibit 10 - July 19, 2005 memo 47. Police Department: Exhibit 11- July 20, 2005 memo and applicant's response letter dated August 25, 2005 48. Civil Defense Agency: Exhibit 12 - August 23, 2005 memo 49. Department of Parks and Recreation: Exhibit 13 - July 13, 2005 memo 50. Department of Health: Exhibit 14 - August 5, 2005 memo and applicant's response letter dated August 25, 2005 51. Department of Transportation: Exhibit 15 - September 28, 2005 letter 52. Kona Traffic Safety Committee: Exhibit 16 - August 8, 2005 letter and applicant's response letter dated September 12, 2005 AGENCIES - NO, RESPONSE 53. Department of Education PUBLIC COMMENTS 54. Exhibit 17 - September 1, 2005 letter from the Makalei Estates Community Association 55. Exhibit 18 - January 9, 2006 email from Allen and Anne Abaya 14- PROJECT DISTRICT APPLICATION COUNTY OF HAWAII PLANNING DEPARTMENT PROJECT NAME: PALAMANUI APPLICANT: HILUHILU DEVELOPMENT LLC P.O. BOX 9007, KAILUA-KONA, HI 96745 LOCATION: KAU AHUPUA`A, NORTH KONA, HAWAII 725.202 ACRES REQUEST: AGRICULTURE 3 AND OPEN ZONE TO MIXED USE PROJECT DISTRICT TMK: 7-2-05:01 BELT COLLINS HAWAII LTD 2153 North King Street, Suite 200 Honolulu, HI 96819 June 2005 EXHIBIT 1 CONTENTS Application Form 2. Project Maps a. Location map b. Palamanui: Ownership and roadway map C. Proposed project district boundary d. Master conceptual plan e. Constraints area f. Palamanui / UH master plan concept g. Palamanui Town Center study 3. Project Summary 4. Background and County Environmental Report Project district report 6. Hawaii State Land Use Commission — May 2005 Decision and Order Conditions State of Hawaii Historic Preservation Division (SHPD) 3/10/05 letter accepting Archaeological Inventory Survey 8. Hawaii State Land Use Commission Order accepting Hiluhilu Development, LLC Final Environmental Impact Statement 9. Metes and bounds description of the property 10. Real property tax clearance 11. List of surrounding property owners Attachment A: The Final Environmental Impact Statement accepted by the State Land Use Commission on October 7, 2004 Attachment B: Integrated Natural Cultural Resource Management Plan (INCRMP) for Palamanui Attachment C: Final Traffic Impact Analysis Report Palamanui, December 7, 11E hiluhiluVe ing\oontents PROJECT DISTRICT APPLICATION COUNTY OF HAWAII PLANNING DEPARTMENT (Type or legibly print the requested information) APPLICANT:. APPLICANT'S SIGNA DATE: P.O. Box 7121 Kamuela. M 96743 LIST APPLICANTS INTEREST IF NOT OWNER: Island Advisors. Inc. is the Owner's Representative LIST PRINCIPAL(S) INCLUDING NAMES OF MAIN OFFICERS: See Next Page PHONE:(Bus.) (808) 523-5866 (Res.) (Fax) (8081882-1925 LANDOWNER SIGNATURE(S): /—�— DATE: 6-/-09 (K9f be by letter) LANDOWNER(S) ADDRESS: P.O. Box 9007. Kailua-Kona HI 96745 REQUEST: Agricultural (A -3a) and Q= (0) TO Project District (Existing zoning) (Proposed Zoning) TAX MAP KEY: 7-2-05:01 STREET ADDRESS OF PROPERTY: Not Available SIZE OF PROPERTY OR AFFECTED AREA(S) TO BE REZONED: 725.202 acres AGENT: Belt Collins Hawaii Ltd. ADDRESS: 2153 North King Street Suite 200 Honolulu HI 96819 TELEPHONE:(Bus.) (808) 521-5361 (Res.) (Fax) (808) 538-7819 Please indicate to whom original correspondence and copies should be sent. Guido Giacometti 1) Lee Sichter Island Advisors, Inc. Belt Collins Hawaii ORIGINAL: P.O. Box 7121, Kamuela, M 96743 COPIES: 2153 N. King St.. #200. Hon.. HI 96819 2) Roger Hams P.O. Box 803, Kamuela, HI 96743 3) F. Guy Lam Hiluhilu Development, LLC P.O. Box 9007, Kailua-Kona, HI 96745 (See Instructions on Reverse Side -t- EMuHD..0 DEVELOPMENT LLC LIST PRINCIPAL(S) INCLUDING NAMES OF MAIN OFFICERS: F. Guy Lam, Member/Manager Charles Schwab, Member Pete Petersen, Manager Alexis Lam, Manager Donna Leialoha, Manager -2- F A n G S / hfA+ 1 K A Af J Q I\_ KALAOP 5 " 0 _ MESr EAo\S � _ A" A� �O 0 M A 2 K 0 N A K A -—- F • ® o zaoo a000 NORTH SCALE IN FEET Figure 1-1 LOCATION MAP Palamanui Project District Application Prepared for: Hiluhilu Development, LLC Prepared by: Belt Collins Hawaii June 2005 \ o ,y F i� NA N A CO RST L _ — STATE PARK 4 \ � FLO Y: 0 t801 e F A n G S / hfA+ 1 K A Af J Q I\_ KALAOP 5 " 0 _ MESr EAo\S � _ A" A� �O 0 M A 2 K 0 N A K A -—- F • ® o zaoo a000 NORTH SCALE IN FEET Figure 1-1 LOCATION MAP Palamanui Project District Application Prepared for: Hiluhilu Development, LLC Prepared by: Belt Collins Hawaii June 2005 20a5.W.311XVD( O-1 e]: POD ACRES U/AC UNITS �� _ -._ 4 , M Drive kalel,' ,_ o Mamal_ahoa Highway ? -- — z - - A 36 3.4 125 B 23 5.4 125 -^W Makalei C 22 3 66f : - -'J j Pion.,_ Estates E 48 5.2 250 F 89 1.3 113 G 50 2.3 114 - — H 47 1.9 84 00 --� H - 1 7 Service 0 J 2 Open 0y -- Total 368 ac. 930 Units - Dwelling - _ -- / F _ _ G z. ¢ o -2, ro 771� E o J \ 006 I -fT1 h \ 1 University of Hawaii— West HawallrCenter m 400 - ,�. Active Park � j 5 acres 40 t LEGEND r J„ Development Area (547x acs)1 Residential Mixed Use/Commercial A B , Village Core Course 1 / Wastewater Treatment Facility Constraint Areas 100 Dry Forest Preserve Areas Archaeological Sites/Cave Areas �' { Queen Kashumanu,Ni Park Areas2 9hw 2 Includes up to 180 aces of golf course area in Open (0). Acreage and location to be determined. Source of plan: Applicant, Jure 2005. is0 400 800 1600 NORTH SCALE IN FEET Figure 2-1 MASTER CONCEPTUAL PLAN Palamanui Project District Application Prepared for: Hiluhilu Development, LLC Prepared by: Belt Collins Hawaii July 2005 2005.33.3100/004) ea.2 - r - Q Makale zk�u TMamaHighway 400 , r , X -g _ 00 D 6 0 - -W _ _ Makalei f' - �ka�R a -. / LEGEND m Preservation Areas dErt_x- X Dry Forest Preserve Areas Archaeological Sites/Caves Areas __ _ c c - Park Areas' Q Infrastructure may Roadway x u`� Powerline i Acreage and location to be determined. ill :x�� Z - - i i Q I 47Quee JI1 n Kan urns U,Nighway � ®0 400 800 1600 ra1� I NORTH SCALE IN FEET I jl m` r i 400 , r 00 t / LEGEND .r--- Preservation Areas _ Dry Forest Preserve Areas Archaeological Sites/Caves Areas - c - Park Areas' Q Infrastructure Roadway u`� Powerline i Acreage and location to be determined. Figure 4-1 CONSTRAINTS AREA Palamanui Project District Application Prepared for. Hiluhilu Development, LLC Prepared by: Bek Collins Hawaii June 2005 P I d t r m m v a 10 ` � i b m N 0. 1 o • I' x v s+ � v cw .. v cd a+ Ir co 0 �z • � I 'ni M I1, , a ,� Y��w ,.."I1 .. I�§g JL"• E3 kb i'•0 y � t0 Rill- I �4 wi LE 1 _ •'� .V s -.o r -'i f i 1 � ���.' � kri- x - - I m /, /rpm '" }' , I � '4 �� -43 '�v .,• ,� �, r 1 m ,� i �1 "• � iii •�° - _ � ' ♦ " i ki P k Ft iCl o_ d w a $ `�z f('c L e �Q�� •. LV / _ A `•A 10 win' �.. ,,,`','• PROJECT SUMMARY Name: PALAMANUI Developer / Land Owner: Hiluhilu Development, LLC Location: Kau Ahupuaa, North Kona, Hawaii Area: 725,202 acres TMK: [3] 7-2-05:01 Palamanui will be a master planned community with a mix of single and multifamily residences (approx. 930) and commercial spaces (medical, office, retail, classrooms and health related). The project will also have an 18 hole golf course (irrigated by brackish and treated wastewater), a 120 room University Village Inn hotel, a lowland native dry forest preserve, archaeological and cave preserve areas, active and passive parks, a trail system and all supporting infrastructure. The project sits on 725 acres at the northern end of the General Plan's urban growth area mauka of the Kona Airport. Adjacent to the site is 500 acres of State land designated University of Hawaii West Hawaii Center (see location maps). UNIVERSITY OF RAWAPI AND PALAMANUI JOINT PLANNING In 1991, the Board of Regents (BOR) selected the 500 acre parcel of vacant land east of the Kona Airport as a suitable site for a permanent UH campus in West Hawaii. However, the development of the site has been hampered by a lack of State capital improvement funds to provide adequate water, roadway and other basic supporting infrastructure, as well as to construct classroom and office buildings. On November 21, 2002, with the BOR's approval, the University entered into a Memorandum of Understanding (MOU) with Hiluhilu Development, LLC, to consult and discuss joint development opportunities for the adjacent properties, with Hiluhilu providing critical infrastructure for the University's development. On April 16, 2004, the Board of Regents approved an amended MOU, which incorporates understandings that have been reached as a result of discussions since November 2002. This MOU discusses potable water, roadway, wastewater treatment and similar infrastructure issues. The MOU also addresses discussions about the concept of a University Village. Hiluhilu will develop a residential/commercial community on its property, with a village town center spanning its lands and the University's property. This town center is envisioned as a walking village, which would link the University's facilities with compatible commercial, recreational and cultural facilities. hiluhilu\ a ing�"jecfsunwwy As stated in the MOU, in the initial stage of this project, the University will lease space from Hiluhilu in the village town center on Hiluhilu's property. Hawaii CC/UH Center, West Hawaii, will relocate from the current campus in Kealakekua to these rented facilities. While the space will be developed to support the UH's programs, the design of the structures will allow Hiluhilu to convert the space into commercial use after the University moves out of the buildings it no longer needs. It is expected that this lease arrangement will continue for a period of 5-10 years until the University's facilities can be built on its own land adjacent to the Hiluhilu land. The University supports the joint development because: (a) it offers a unique opportunity to develop a campus with strong community linkages, both physically and programmatically; (b) the ability to lease space from Hiluhilu will allow the University to relocate the UH Center, West Hawaii to a more central site, within a reasonable time flame, and to serve a wider student population with more efficient educational facilities; and (c) construction of the initial infrastructure systems by Hiluhilu will significantly reduce the amount of basic infrastructure needed by the University for its own lands which will facilitate the construction of the West Hawai'i campus. Specifically, Hiluhilu Development will build and make available to the University and Hawaii Community College 15,000 square feet of multipurpose commercial space suitable for use as classrooms, office, library and related uses. This initial space is intended to allow relocation of the Hawaii Community College operations from 13,500 square feet of space it is currently renting in the Kealakekua Shopping Center. Hiluhilu is committed to renting this space to the community college on terms equal to its current rentals at Kealakekua. Hiluhilu is willing to provide additional space in the commercial village as mutually agreed with the University. It is intended that the commencement of higher education activities at Palamanui will stimulate planning and construction of University uses on the State's 500 acre lands adjacent UHCWH site: INFRASTRUCTURE: Hiluhilu will construct to the UHCWH site: 1. A new public road (the main project access road) from Queen Kaahumanu Highway. The main project access road will also become a public road connection to Mamalahoa Highway. 2. A new two lane public road (main street) from Palamanui Village along the makai edge of the UHCWH 500 acre site to Kaiminani drive. This would be in conformance with the County K to H roadway plan. 3. A new public water line. Hiluhilu will extend the Department of Water Supply's main water lines from Makalei Estates to the makai project areas. Sizing of the system will provide for initial development on the UHCWH land with adequate stub -out to the UHCWH provided by Hiluhilu. 4. Wastewater: Hiluhilu will design the Project's treatment plant and hook- up for the UHCWH to accommodate the initial development on the UHCWH site. 5. Electric/telephone/CATV: Hiluhilu will provide stub outs to the UHCWH land as it provides these utilities to the Palamanui project. hauhauv�us\pmiectsummary 2 In addition to working with the University and community college staff on "hardware" items, a continued relationship on "programs" is anticipated. Input and assistance on the Integrated Natural and Cultural Resources Management Plan, including cultural and archaeological and botanical sites, will allow for linkages between Palamanui and adjacent University educational programs. Positive training and work opportunities are also possible at Palamanui. STATE LAND USE COMMISSION FINDINGS OF FACT CONCLUSIONS OF LAW AND DECISION AND ORDER FOR A STATE LAND USE DISTRICT BOUNDARY AMENDMENT FOR DOCKET NO. A03-744 (PETITIONER HILUHILU DEVELOPMENT, LLQ ADOPTED JUNE 13, 2005 This document provides a detailed summary of the relationship of the project to State and County plans and policies and attaches 29 conditions of approval. Hiluhilu will comply with these conditions. The list of the conditions is attached to the Project District Application. Notable conditions are highlighted here: 1. Affordable Housing: A minimum of 100 affordable housing units will be provided on site: 50 for rent, 50 for sale. Additional affordable housing requirements of the County ordinance will be provided to the satisfaction of the County. 2. School Facilities: In addition to facilitating higher education in West Hawaii through support of UHCWH, Hiluhilu will enter into an agreement with the State Department of Education to contribute to school needs in North Kona. 3. Traffic Mitigation and Roadways: a. A public mauka makai connector road between Queen Kaahumanu and Mamalahoa Highways will be provided to the satisfaction of the County. Hiluhilu is actively pursuing an alignment which could connect north of Makalei Drive so that Makalei Drive would not have to be the only point of connection to Mamalahoa Highway. b. Hiluhilu Development will construct a public road connection from Palamanui Village Center and the main project access road to Kaiminani Drive in conformance with the County K to H road plan. C. Hiluhilu will ask the County to limit motor vehicle traffic on Makalei Drive. 4. Cultural, Archaeological, Botanical and other Natural Resources Protection: Hiluhilu Development will comply with the State Land Use Commission's requirements to implement an "Integrated Natural Cultural Resources Management Plan" (copy of this plan is attached to the Project District Application). hiluhiluV=nin&mjatsummary 5. Native Lowland Dry Forest Preservation: In addition to setting aside the 65 +/- acre Palamanui Dry Forest preserve, Hiluhilu will fund an initial protection effort. Also, Hiluhilu will cooperate with State of Hawaii land area protection efforts just north of the Palamanui Dry Forest. 6. The Integrated Management Plan: Will safeguard any breeding activities of the Hawaiian Hoary Bat and the `Io (Hawaiian hawk) which may occur on the site. 7. Queen Snace Buffer: An 800' setback mauka of the Queen Kaahumanu Highway will be established to maintain the view plane and open space character of the highway corridor. 8. Air Quality and Water Quality Monitoring The applicant will participate in air and near shore water quality monitoring programs as specified by the Department of Health. 9. Water: Hiluhilu will complete improvements to the two potable water wells on Mamalahoa Highway directly mauka of the project and dedicate the systems to the Department of Water Supply and satisfy other requirements of the DWS. (NOTE: Potable water will not be used for golf course irrigation. Brackish water and treated wastewater will be used to irrigate the golf and some common landscape areas.) 10. Water and Energy Conservation: Hiluhilu will incorporate conservation practices and solar energy into project buildings and facilities where feasible. Hiluhilu will use indigenous and drought tolerant plants and rare and valuable native plants in common areas where feasible. 11. Golf Course Management: Hiluhilu will develop and maintain the golf course in accordance with Audubon International's Signature Silver Program standards. Hiluhilu will also comply with the principles of the State Department of Health's guidelines applicable to golf courses in Hawaii. PROJECT DISTRICT ZONE CHANGE REQUEST Hiluhilu Development, LLC is requesting County rezoning of the site to a "Project District" reclassification in accordance with Sections 25-640 through 49 of the County zoning ordinance. This approach "allows for flexibility in location of specific uses and mixes of structural alternatives." The Applicant anticipates educational, commercial, institutional and residential uses of various types to be mixed together in the proposed Palamanui University Village Town Center. This is where density is desirable to encourage walking and interaction. hiluhiluVeronin&mieclsummary 4 The Project District will also specify where the Cultural and Tree preserves are (constraints area: approximately 177 acres) and where the Development Area (approximately 547 acres) are located. Some mixing of uses and housing types in all of the "Development Areas" is requested in order to allow for the most efficient and affordable plan. The primaryre variance request is to allow a 4,000 square foot building site area, would provide flexibility where small, affordable house sites could be located. The project district would allow the 930 housing units to be spread over the 547 acre development area with the higher densities closer to the "Walking Village." Ample sites will be available for neighborhood parks, "work and live," or other commercial and mixed uses. SUMMARY: Palamanui will provide a package of regional improvements to facilitate needed higher education and additional mixed residential uses in conformity with the County General Plan. The Palamanui University Village will allow for shopping, housing, health and recreational uses in reasonable proximity to the employment centers of North Kona and South Kohala. hiluhilu\ a ning\projectsu my THIS PROJECT DISTRICT APPLICATION MUST BE ACCOMPANIED BY THE FOLLOWING: A filing fee offive thousand dollars ($5, 000). Checks shall be made payable to the County Director of Finance. Submitted with this application. 2. An original and twenty (20) copies of this completed application. Submitted with this application. 3. An original and twenty (10) copies of a Background and County Environmental Report to include information as listed on the attached form. Include a description of the open space areas proposed for the agricultural project district, for cultural and/or environmental purposes, including open space areas preserved because of natural hazards. Note: A County Environmental Report shall not be required for an application where an Environmental Impact Statement or Environmental Assessment has been completed and filed with the Office of Environmental Quality Control in compliance with HRS, Chapter 343, Environmental Impact Statements. Submitted with this application are copies of a Palamanui Project District Report, the Palamanui Final Environmental Impact Statement (FEIS) with Appendices. 4. An original and twenty (20) copies of a location map and description of the property in sufficient detail to determine its precise location. The subject property is identified as TMK 7-2-05:01. Refer to Figure 1-1 and 1-2 of the Palamanui Project District Report submitted with this application. Section 1 of the same report describes the subject property. 5. An original and twenty (20) copies of a scale -drawn master conceptual plan of the property with lines and measurements, showing the project district boundaries, the land uses and acreage of land involved; all existing and proposed structures, uses and improvements; proposed subdivision; and reference points such as roadways, shoreline, etc. Refer to Figure 1-2 (Proposed Project District Boundary) and 2-1 (Master Conceptual Plan) of the Palamanui Project District submitted with this application. b. One copy of a full-size (2'x 3 ) scale -drawn master conceptual plan of Item 5 for presentation purposes. Submitted as part of this application. A legal description of the property in map and written form by metes and bounds as certified by a surveyor shall be submitted with this application. This application shall not be considered complete unless the metes and bounds description in map and written form has been received. Submitted as part of this application. 8. A list of the names, addresses and tax map key numbers for those property owners and lessees of record of surrounding properties who are required to receive notice under section 25-2-4 of the County Zoning Code. Submitted as part of this application. 9. A certificate of clearance from the Director of Finance that the real property taxes and all other fees relating to the subject parcels) have been paid; and there are no outstanding delinquencies. Submitted as part of this application. 10. One of the following regarding archaeological resources: An archaeological inventory report containing significance assessments, effect determinations, and proposed mitigation commitments. The report should be completed pursuant to State Department of Land and Natural Resources Historic Preservation Division (DLNR-SHPD) rules. 1. A "no effect" letter from the State DLNR Historic Preservation Division. 3. A copy of a letter written by the applicant to the State DLNR Historic Preservation Division requesting a "no effect" letter, including supporting documentation, to which SHPD has not responded after 30 days (SHPD's time limit under their rules). Refer to the Palamanui FEIS Appendix C ADDENDUM: Archaeological Inventory Survey of the Kau Development Area. The State DLNR Historic Preservation Division acceptance letter is also submitted as part if this application. 11. Any other plans or information relevant to this application may be requested by the Planning Director to facilitate processing of this request. The applicant has included a copy of the Land Use Commission Decision and Order of the Petition for Land Use District Boundary Amendment for Palamanui. FORMS - 8/03 (f.\wp60\fo=\pd\PDApplskg) Background and County Environmental Report (Attachment to Change of Zone, Project District, and Agricultural Project District Applications) Please use this form as a guide for required information to be included in your Change of Zone Project District or Agricultural Project District -Background and County Environmental Report. Applicant's Note: The following responses utilizes both the Project District Report, the Palamanui Final Environmental Impact Statement (FEIS), and the FEIS appendices which are submitted as part of this Project District Application. A. SUBJECT REQUEST Details of Proposed Use/Development a. Project description: The proposed Palamanui Project includes commercial and residential uses, an 18 -hole golf course and related facilities, a dry -land forest preserve area, several archaeological preserve areas, and related accessory uses. The commercial uses include support facilities for both the project residents and the adjacent proposed university campus. See Sections 2 (Description of Master Conceptual Plan), 3 (Proposed Development Area) and 4 (Proposed Constraints Area) of the attached Project District Report. See also Chapter 3.0 (Project Description) of the Palamanui FEIS document. b. Statement of objectives and reasons for the request: The objective is to implement the Palamanui project as a means of accommodating North Kona population growth and the future university campus while protecting the area's important cultural and environmental resources. C. Number of acres/square feet: 725.202 acres d. Proposed units/Iots$oor area of proposed building envelope: The Palamanui Project proposes the following: Background and County Environmental Report Land Use Acreage Units Notes Residential (SF and Up to 265 acres Up to 845 units varying Includes single and MF) from 2-14 units per acres. multiple -family Commercial (Village Up to 102 acres Up to 85 residential units Includes village and Community) in mixed use. and community commercial uses, 120 visitor units in such as village village inn. retail and services, village inn, residential mixed use and industrial mixed use Golf Course Up to 180 acres Includes ancillary facilities such as clubhouse, maintenance area, etc. Subtotal- +/-547 acres Development Area Open, Park, and Up to 177.8 Includes areas to Preservation acres preserve archaeological - cultural and biological resources of the area. TOTAL AREA 725.202 acres 930 residential units in residential and mixed use 120 visitor units in village inn Note: The residential, commercial, and golf course areas are designated in the Master Conceptual Plan as "Development Area." The open, park and preservation areas are designated as "Constraint Areas". e. Time and cost: About 10 years with project cost of over $300 million. Refer to Section 3.3 (Development Schedule and Process on page 3-35) and Section 3.4 (Summary of Estimated Project Costs on page 3-38) in Chapter 3 of the Palamanui FEIS. f. Number of employees and clientele: The Palamanui FEIS estimates about 1,841 jobs in commercial, business, and education activities once the Background and County Environmental Report 2 project is completed. Refer to Table 3-11 of the Palamanui FEIS for an estimate of the project's job creation. g. Parking arrangement: Parking will be provided as required by the County Zoning Code. h. Traffic impacts (assessment of existing traffic conditions, anticipated increase in traffic and traffic impacts from proposed use): Traffic increase from the project is expected to be mitigated by various proposed highway and roadway improvements. Refer to Section 4.15 (Roadway and Traffic) of the Palamanui FEIS. Other related information: The applicant is not aware of any other related information which is required at this time. j. Proposed on-site and off-site infrastructure: The developer proposes to provide a network of roadways to, from, and through the project site. The road network will serve the Palamanui development and support State and County regional roadway plans. The developer will construct a new intersection connection at Queen Ka'ahumanu Highway. This will tie into the project's main mauka-makai roadway which will connect to Mamalahoa Highway. The developer will also construct a lateral road, usually referred to as "Main Street" on the county K to H plan (Keahole to Honaunau Regional Circulation Plan), from the project site south to a tie in with Kai'iminani Drive. This network will provide public roadway access to the project and the adjacent University of Hawai'i West Hawai'i center at no cost to the University or State of Hawai'i. Infiastructure hook-ups for water sewer, electrical, telephone, CATV will be constructed by the developer to service the Palamanui project and the adjacent University land. Refer to Section 3.2.7.1 (Roadway System) of the Palamanui FEIS. k. Note: The total of residential units is 930. Distribution of these units between residential versus mixed use areas will depend upon market conditions. B. CONFORMANCE WITH STATE/COUNTY PLANS 2. State Land Use designation: The site was classified Urban by the State Land Use Commission (SLUC) on May 19, 2005. A copy of the SLUC conditions of approval is included as an appendix for this application. Applicable goals/policies and objectives of the General Plan: The proposed project conforms to and implements the pertinent objectives and policies of the County of Hawai'i General Plan. These policies and objectives include economic development though the visitor industry and retirement industry; historic site Background and County Environmental Report mitigation; view plane protection through setbacks and landscaping; natural resource management and protection; mixed housing development; public utilities development; transportation development; commercial development aligned to community needs; and land use regulations. Refer to Section 5.4.1 (General Plan, pages 5-17 to 5-21) of the Palamanui FEIS. 4. General Plan designation: Urban Expansion 5. Zoning: Open (0) and Agricultural (A -3a) 6. Community Development Plan: The County of Hawai'i has not adopted a community development plan for North Kona. The K to K Plan (Keahole to Kona Plan) prepared by the county in the 1990's serves as the community plan. This plan designates the subject site Urban Expansion and university related uses. Special Management Area: Not within the Special Management Area C. PHYSICAL CHARACTERISTICS AND ENVIRONMENTAL SETTING OF THE PROPERTY AND SURROUNDING AREA Physical Characteristics/Environmental Setting: 8. Description ofsubject property, location, climate, topography, slope, soils (including size, shape, existing structures): The subject property is a 752 acre vacant parcel located within the ahupua'a of Kau in the North Kona District of West Hawai'i, Island of Hawai'i. The area's climate is hot and and with predominant winds from the south. The property, which abuts Queen Ka'ahumanu Highway, extends inland from the 150 -foot elevation up to the 900 - foot elevation. The slope vanes from 5 to 10 percent in the lower half of the property with steeper 10 to 20 percent slopes in the upper half. Refer to Chapter 4 (Environmental Setting) and Sections 4.3(Climate), 4.5(Topography), and 4.8(Soils) of the Palamanui FEIS. 9. Lava Hazard Zone: The property is within Zone 4, indicating a moderate hazard. Refer to Section 4.10 (Drainage, Flood, and Tsunami Hazards) of the Palamnui FEIS. 10. Distance from coastline: The subject parcel is located over 1.5 miles from the coastline, outside the Special Management Area. See Figure 1-1 (Location Map) of Project District Report. 11. Agricultural Lands of Importance to the State of Hawaii (ALISH) designation: According to the Agricultural Lands of Importance in the State of Hawaii (ALISH) Report all of the land of the subject property is designated as having no agricultural importance. Refer to Section 4.8(Soils) of the Palamanui FEIS. Background and County Environmental Report 4 12. U.S.D.A. Natural Resources Conservation District Services Soil Service Report soil type: Soil on the property includes lava flows in the lower areas and some Punalu'u soil series in the upper areas. Refer to Section 4.8(Soils) of Palamanui FEIS. 13. Land Study Bureau soil rating: The Land Study Bureau has rated property's agricultural productivity as class E (lowest productivity rating). Refer to Section 4.8 of Palamanui FEIS. 14. Flood Insurance Rate Map (FIRS designations (Contact Department of Public Works -Engineering Division): The subject property is located within Zone X, which represents areas outside of the 500 year floodplain. 15. Existing drainage ways or improvements: The USGS quadrangle maps (1996) do not indicate any drainage ways or improvements on the subject property. 16. Air/noise/water quality: Air quality is believed to be relatively good, except for periodic volcanic emission -created fog and localized traffic congestion impacts. Refer to Sections 4.4 (Air Quality), 4.9 (Surface and Groundwater Resources) 6. 1.11 (Air Quality), 6.1.12 (Noise), 6.1.3 (Surface Water Quality), 6.1.4 (Groundwater Quality) and 6.1.5 (Coastal Waters). Historic Resources: 17. Existing archaeological, cultural or historic sites on National Register or Hawaii Register (Contact Department of Land and Natural Resources): There areno archaeological, cultural, or historic sites on the subject property which are listed on the National Register or Hawaii Register. However, an updated Archaeological Inventory Survey, a Cultural Impact Assessment, a Biological and Botanical Assessment and a Cave Survey were conducted as the Environmental Impact Statement was prepared. SHPD has approved the Inventory Survey. Refer to Appendices C, D, B, and O of the Palamanui FEIS for complete studies. Twenty-two of the eighty-three archeological sites will be preserved. A significant 65 acre dryland native forest will be preserved; valuable cave areas; and certain view planes are to be managed under an Integrated Natural Cultural Resource Management Plan (INCRMP) as part of this project. Refer to Sections 4.19(Cultural Resources) and 4.20(Archaeological Resources) of the Palamanui FEIS and Attachment B, INCRMP. Natural Resources: 18. Existing floral/faunal resources (any native or exotic plants; any listed or candidate for endangered species): Twenty-seven native plant taxa were detected on a botanical reconnaissance conducted in May and June of 2003. Of these plants, three are federally listed Endangered Species (aiea, halapepe, and uhiuhi) Background and County Environmental Report and two are federally listed Species of Concern (maiapilo and ohe makai). Three species of native birds were detected -one federally listed endangered species (Hawaiian Hawk) and one federally listed Species of Concern (pueo). Five native arthropods were found during a biological reconnaissance in September 2003. Refer to Sections 4.11 (Flora), 4.12 (Fauna), 4.13 (Cave Fauna), Appendix B (Biological Reconnaissance. Lands of Kau. North Kona. Hawai'i), and Appendix O (Hiluhilu Cave Fauna Survey) of the Palamanui FEIS. 19. Scenic or coastal resources: Costal resources will not be affected. The proposed project is located about 1 mile inland from the coast. The visual character of the site is defined by expansive lava lands with clumps of scrub grass, small trees and shrubs appearing as undeveloped land. Refer to Section 4.6(Visual Resources) of the Palamanui FEIS. Social -Economic Characteristics: 20. Social settlement patternfor the area: The project site is located in North Kona, where the population has increased rapidly over the past 30 years. Refer to Section 4.17 (Socio -Economic Conditions) of the Palamanui FEIS. 21. Economic resources of the area: The expanding population in the North Kona District is largely attributed to growth in visitor and resort industry. High technology developments, residential communities, and an array of employment centers in Kailua-Kona and West Hawai'i resorts are within close proximity to the project site. Refer to Section 4.17 (Socio -Economic Conditions) of the Palamanui FEIS. 22. Land Values: For the 2005 assessment year, the County Real Property Tax Office valued the 725.202 acre subject property at $1,887,000 based on its agricultural and open zoning. In the adjoining Makalei Estates subdivision, 3 -acre agricultural lots values were in the $300,000 range. The adjoining State parcels range in value from $30,000 to $9,000,000 depending upon parcel size and zoning. Surrounding lands: 23. Land use: University of Hawaii West Campus Center: Urban; State of Hawaii: Conservation and Agricultural; Privately owned parcels: Conservation and Agricultural 24. Zoning: University of Hawaii West Campus Center: A -5a; State of Hawaii: A -5a and Open; Privately owned parcels: A -3a Background and County Environmental Report 6 D. PUBLIC FACILITIES AND SERVICES 25. Description of access: (paved or unpaved; private, or county, right-of-way and pavement width. !f private road, submit evidence of legal access rights): There are no existing public roadways on the project site. The developer proposes to provide a network of roadways to, from, and through the project site. This network incorporates the planned and committed county roads from the Keahole to Honaunau Regional Circulation Plan. The developer also proposes a mauka- makai connector road though the project site and a mid-level connection with Ka'iminani Drive. Refer to Section 4.15 (Roadways and Traffic) of the Palamanui FEIS. 26. Availability of water: There are no existing potable water systems on the project site. A 12 -inch County water line is located in the right-of-way of the main road of the Makalei Estates subdivision. Two potable wells have been developed on the Makalei Estates subdivision. The developer proposes to provide additional water systems for the project site by extending waterlines and adding reservoirs down the slope which will tie into the county system. Above the Kona Airport area, these water system improvements will be dedicated to the County Department of Water Supply (DWS). Part of this work will entail putting the second Makalei potable water well into service and dedicating it to the DWS. Additionally, two brackish water irrigation wells are planned to be developed on the site for golf course and landscape irrigation. Refer to Section 4.16.2 (Water Supply) of the Palamanui FEIS. 27. Sewage disposal: There are no existing sewer systems on the project site. A self- contained wastewater collection, treatment, and disposal system is proposed. The project site will use recycled water produced by the on-site wastewater treatment plant for golf course irrigation. Refer to Section 4.16.3 (Wastewater Collection, Treatment, and Disposal) and Appendix A (Palamanui Civil Infrastructure) of the Palamanui FEIS. 28. Solid waste: Solid waste will be collected and disposed at approved County solid waste disposal facilities. A recycling program will be encouraged throughout the project including. green waste generated from the golf course and landscape maintenance. Refer to Section 3.2.7.6 (Solid Waste) and Appendix A(—Palamanui Civil Infrustmcturel of the Palamanui FEIS. 29. Police & fre protection: The Hawai'i County Police Department and Hawai'i County Fire Department provide protection and services to the North Kona region. Refer to Section 4.18 (Public and Social Services and Facilities) of the Palamanui FEIS. 30. Schools: The Kona public school system consists of the Konawaena School complex, Ho'okena Elementary/Intermediate, Kahakai complex, and Kealakehe complex. Private schools also serve students in the region. The developer will Background and County Environmental Report contribute a "Fair Share" to the Department of Education in money or in kind, which will enable expansion of school facilities in the Kealakehe Complex service area. Establishment of the Hawaii Community College and University of Hawaii adjacent to Palamanui is a benefit for education in Kona. Refer to Section 4.18 (Public and Social Services and Facilities) of the Palamanui FEIS. 31. Parks: No parks exist on the project site. The developer proposes to incorporate up to 177 acres of open, park, and dry forest preserve within the project site. 32. Other utilities and services (telephone%lectricity): The project site does not currently receive utility services. An overhead 69 kV transmission line runs through a utility easement on the site parallel to Queen Ka'ahumanu Highway. The Keahole Power Plant is located makai of the project site which is adequate to serve the project site. An additional 40,000 kW generating capacity is planned to be installed at Keahole Power Plant in the near future. Hawaii Electric Light Company has confirmed that power is available to support the project. Refer to Section 4.16.5 (Power and Communications) of the Palamanui FEIS. E. ENVIRONMENTAL ASSESSMENT AND ANALYSIS 33. Relationship between local short term uses of environment and maintenance and enhancement of long term productivity: Potential concerns of this relationship are: (1) narrowing the range of beneficial uses of the environment; (2) long-term risks to health and safety; (3) foreclosure of future options; and (4) trade-offs among short-term and long-term gains and losses. The planned improvements are considered to be beneficial uses of the environment. The project is not expected to generate risks to health and safety. The foreclosure of future options is very limited since the range of viable uses is limited. Any potential short-term impacts and long-term impacts are offset by the planned mitigation measures. Refer to Section 6.3.3 (Relationship Between Local Short -Term Uses of the Environment and the Maintenance and Enhancement of Long -Term Productivity) of the Palamanui FEIS. 34. Mitigative measures proposed to avoid, minimize, rectify or reduce impact: The Palamanui project will implement mitigation measures for any negative impacts. Mitigation efforts will be implemented through the Integrated Natural Cultural Resource Management Plan (INCRMP); preservation of significant historic, cultural, and natural resources; monitoring during and after construction; and other measures as adopted as part of the Decision and Order of the Petition for Land use District Boundary Amendment for Palamanui included as part of this application. In terms of community impact mitigation, Hiluhilu will provide a network of roads and infrastructure which will allow the University of Hawai'i West Hawai'i Center to access their 500 acres and begin development. The Kona community has strongly supported the establishment of a higher education complex in wet Background and County Environmental Report Hawai'i. Refer to Section 6.0 (Probable Impacts and Mitigative Measures) of the Palamanui FEIS. 35. Alternatives to the proposed development: Multiple alternatives were considered in the planning of the project. These alternative designs and options include no - action, Makalei Estates expansion, conventional subdivision development without golf course, no linkage with University of Hawai'i, commercial and light industrial complex, alternate location, and no reclassification of the conservation lands. The developer believes the proposed project will benefit the North Kona community and future university site while protecting cultural and environmental resources of the area. Refer to Section 7.0 (Alternatives Considered) of the Palamanui FEIS. 36. Irreversible and irretrievable commitments of natural resources that would be involved if proposed action implemented: Construction and operation of the proposed action will result in the irreversible and irretrievable commitment of certain natural and fiscal resources. Major resource commitments include the land on which the facilities will be constructed as well as money, construction materials, manpower, and energy. Refer to Section 6.3.4 (Irreversible and Irretrievable Commitments of Resources) and 6.3.5 (Adverse Environmental Effects that cannot be Avoided) of the Palamanui FEIS. F. AGENCIES COMMENTS 37. You may consult with the following agencies and include discussion in your report or attach their written comments regarding your proposal: a. Department of Public Works: This agency was consulted in the preparation of the Environmental Impact Statement Preparation Notice (EISPN) and the Draft Environmental Impact Statement (DEIS). Comments from the EISPN and an earlier EIS report were received. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. b. Department of Water Supply: This agency was consulted in the preparation of the EISPN and DEIS. Comments were received from an earlier EIS report. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. C. Police: No comment to date. d. Fire: No comment to date. C. Department of Finance—Real Property Tax Division: No comment to date. Background and County Environmental Report £ State of Hawaii Department of Land and Natural Resources Historic Preservation Division: (If your parcel is in its natural state and has not been cleared previously): This agency was consulted in the preparation of the EISNP and DEIS. Comments from the earlier EIS reports and the DEIS were received. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. State DLNR Historic Preservation Department letter of March 10, 2005 accepted the Archaeological Inventory Survey for this site. A copy of the letter is attached as part of this application. g. State of Hawaii Department of Transportation—Highways Division: (If applicable): This agency was consulted in the preparation of the EISPN. Comments were received from earlier EIS reports. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. h. State of Hawaii Department of Health: This agency was consulted in the preparation of the EISPN. Comments were received from earlier EIS reports. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. i. State of Hawaii Department of Agriculture: This agency was consulted in the preparation of the EISPN and the DEIS. No comments were received. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. j. Community groups/individuals, Civil Defense, Office of Housing and Community Development, Kailua Village Design Commission, State of Hawaii Real Estate Commission, and State of Hawaii Department of Human Services: The following organizations and individuals were consulted in the preparation of the EIS and/or responded with comments from the EIS: Bonnie Bator and Ohana, Eden Pearl, Hawaii Forest Industry Association, Hawaiian Electric Company, Public Access Shoreline Hawaii (PASH) President -Jerry Rothstein, Josephine Keliipio, Jerry Schneyere of Makalei Estates, Natural Energy Laboratory of Hawaii (NELHA), University of Hawai'i, Hawai'i Community College, and others. Refer to Section 11.0 (Agencies and Parties Consulted) of the Palamanui FEIS. k. State of Hawaii, Land Use Commission: On May 19, 2005, the Land Use Commission voted to approve a boundary change for the subject property, placing 725.202 acres into the Urban District. Twenty-nine conditions were adopted as part of the Decision and Order. Hiluhilu Development will comply with these conditions. The list of conditions is attached as part of the application. Background and County Environmental Report 10 PALAMANUI PROJECT DISTRICT REPORT 1. INTRODUCTION 1.1 Purpose of this Document This report has been prepared in support of a Project District application for the proposed Palamanui — a project by Hiluhilu Development. Hereafter in this report, Palamanui Development is referred to as the "proposed Project District' or the "project area." Additional environmental information is contained in the following report submitted with this Project District application: Palamanui — A Project by Hiluhilu Development Final Environmental Impact Statement. 1.2 Applicant and Landowner The applicant and landowner is Hiluhilu Development, LLC. 1.3 Requested Action This report is part of an application to approve a 725.202 -acre Project District for commercial, residential, medical, and research and development uses at Palamanui. 1.4 Project Area Description 1.4.1 Location The project area is located mauka of Queen Ka`ahumanu Highway and makai of Makalei Estates in North Kona on the Island of Hawaii. The project site is located within the Kau Ahupua`a and is situated near the Kona International Airport at Keahole. See Figure 1-1, Location Map. 1.4.2 Access The project area can be access from the west by the adjacent Queen Ka`ahumanu Highway and from the east by Makalei Dr. which runs though Makalei Estates. 1.4.3 Adjacent Use The project area is bounded by the Makalei Estates to the east, the Queen Ka`ahumanu Highway to the west, vacant lots owned by the State of Hawaii to the north, and the proposed University of Hawaii West Hawaii campus site to the south. Palamanui Project District Report 1-2 G i KO NA CO AS'I STATE PARK /1Y q e v F r k A U Island of Hawaii i {q _ (� f W A < M N A' Mq Lf (! �• f - F� = T-8 �. Y K etveFoj r 1.� N A ValN\ A AAG '1K o t f, b Ndua,-y _ -� . M •.� E w A ♦ + N A L q i �j n e,n sss mfi \`4 A A A KAI AOA' OT SJ' .._I O Ai - �� ^Pv I 1 N nAI � � 3 AAl Z C O M A A A h U H ....__ Figure 1-1 LOCATION MAP ®2006 1006 Palamanul Protect Distract Applicatia- J Prepared floc Hiiuhilu Development. LLC ���, Prepared by: Beit Collins Hawat NORTH SCALE IV FEET June 2005 F-. i n � Agricultural (A -3a) to Project District (464.502 Ac.) r r- 1 Y 4. I I Open (0) / to Project / District IQ. c� (260.700 Ac.) I - _ J aahumanu,} ighN,aY ,� J l r i � e o r a D i m ! s r I Agricultural (A -3a) to Project District (464.502 Ac.) r r- 1 Y 4. I I Open (0) / to Project / District IQ. c� (260.700 Ac.) I - _ J aahumanu,} ighN,aY ,� J l r i e - f - o e � �� PROPOSED PROJECT" F " DISTRICT BOUNDARY 725.202 AC. Figure 1-2 PROPOSED PROJECT DISTRICT BOUNDARY ® 0 400 600 1600 Palamanut dfor: Project District meet. tion Prepared for: Hiluhilu Development. LLC iW—" Prepared by, Belt Collins Hawai. NORTH SCALE IN FEET June 2005 � 2 r a ! r X < f e - f - o e � �� PROPOSED PROJECT" F " DISTRICT BOUNDARY 725.202 AC. Figure 1-2 PROPOSED PROJECT DISTRICT BOUNDARY ® 0 400 600 1600 Palamanut dfor: Project District meet. tion Prepared for: Hiluhilu Development. LLC iW—" Prepared by, Belt Collins Hawai. NORTH SCALE IN FEET June 2005 2. DESCRIPTION OF CONCEPTUAL MASTER PLAN 2.1 Statement of Objectives The objective of this plan is to implement Palamanui while protecting the important cultural and environmental resources of the area. 2.2 Master Plan Concept The Master Plan concept of Palamanui is to develop a first class residential community with recreational amenities of a golf course and commercial venues and integrate into the development of the adjacent University of Hawaii Center at West Hawaii. The protection of important cultural and environmental resources was a major consideration in preparing the Project District Plan. These resources are discussed in the draft Inteerated Natural Cultural Resource Management Plan, which is included as Attachment B with this application. In response to these resource protection and planning constraints, the proposed Project District is divided into two major land use areas: the Development Area and the Constraints Area. See Figure 2-1, Master Conceptual Plan. 2.3 Development Area 2.3.1 Intent The Development Area has few resource constraints and therefore provides flexibility for site planning and would permit a range of land use development options. 2.3.2 Land Use and Acreages The Development Area includes +/- 547 acres that would permit a variety of uses including residential, commercial, medical, research and development, golf course and recreations, and open space related to ancillary uses. 2.3.3 Development Standards Standards for the permitted uses would guide the development of individual parcels within the Development Area. In general, the standards would be the same as required under County zoning code. These standards will be augmented after the final design stage through covenants, conditions, and restrictions (CC&R) and design guidelines for the project. Palamanui Project District Report 2-1 2005.33.3100/000-1 V.I. `C—N POO ACRES U3A4c UMTS % / Mak y To Marnalahoa Highway ti z l \\\������ ��'r��'f1 B 23 5.4 125 w �!`" ``-`',Makalei O z i C 22 3 66 $ j Pro `,Estates ,.._.....str•.__.--..� ,\ D 46 1.1 50 ° t'ie9/ • _ "i '��..} E 48 5.2 250 a Rd, T ,E ' F 89 1.3 113 i/ G 50 2.3 114 .:1— .. _ .-.... ...�._. £ �.i.... H 47 1.9 84 '"•- j H I 7 Service 0 J 2 Open 0� Total 368 ac. 930 Units Dwelling i �n Ju `d C.` e' a fE - p - ty` 'r Univereity of Hawaii -. 1 - M" Hawali tenter - f_600 Active Park 5 acres Vim..) " Mata i�� I ,' fear LEGEND Development Area (547: acs)1 Residential k� _ 0 Mixed Use/Commercial A - B V Village Core �, - - -- Golf Course Wastewater Treatment Facility Constraint Areas qaa Dry Forest Preserve Areas Archaeological Sites/Cave Areas Oaeen Kaahumanu,Ni1 �„� Park Areas2 Shwa i. Y 2 Includes up to 780 ecst of golf course area in Open (0). Acreage antl location to be determined. t Source of plan: Applicant, June 2005. Figure 2-1 MASTER CONCEPTUAL PLAN ® 0 400 800 1600 Palamanui Project District Application `1 `�f Prepared for: Hiluhilu Development, LLC i Prepared by: Bah Collins Hawaii NORTH SCALE IN FEET July 2005 2.4 Constraints Area 2.4.1 Intent This area includes important cultural, natural, and archaeological resources. The range of allowed uses and activities is limited. Use of these areas requires careful management and attention. 2.4.2 Land Use and Acreages The Constraints Area includes the dry forest preserve, park areas, archaeological preserves, and infrastructure. These areas are scattered though out the project district totaling +/-178 acres. 2.4.3 Development Standards The Constraints Area will be managed though the implementation of the Integrated Natural Cultural Resource Management Plan (INCRMP). The INCRMP will address preservation, mitigation, management and stewardship measures. Palamanui Project District Report 2-3 3. PROPOSED DEVELOPMENT AREA 3.1 Cultural and Environmental Resources Although much of the natural and cultural environmental resources are contained in the Constraints Area, important resources exist within proximity of the Development Area that may affect the proposed residential, commercial, and recreational uses. Development considerations and standards should be applied towards all proposed uses. From a planning perspective, the resources constitute development constraints and help to define the developable area. 3.2 Proposed Uses and Standards The Table 3-1 shows acreages and number of units for the proposed Development Area. A description of each proposed land use and standards follows. 3.2.1 Residential Use and Multi -family Mixed Use The residential uses will include a mixture of single family and multi -family housing. Units within residential areas include a mixture of condominiums, patio or townhouse units as well as single family detached lots. Multi -family units include apartments, student housing, senior housing, or other appropriate unit types. Multi -family Mixed Use will provide the possibility of multiple - family residential products with commercial use. Ownership will be a mixture of fee, rental, condominium, timeshare, or fractional ownership. Residential developments will have similar standards to the Single -Family (RS) and Multiple -Family Residential (RM) zoning districts with some exceptions. These exceptions include: • Allow golf courses as a permitted use. • Allow 3 -story buildings in the proposed town center. • Allow longer than standard cul-de-sac roads. • Allow flexibility of minimum lot sizes and yard setbacks. See Table 3.2 Development Area Standards Summary for a summary of development standards. 3.2.2 Commercial Use/Mixed Use Commercial use of the Development Area will consist of retail, office, and professional uses, support for the residential uses and the adjacent University of Hawaii West Hawaii campus. Commercial Mixed Use will provide a possibility to integrate residential and other non commercial uses with commercial uses. The core of the commercial activities will be located in the University Village. The University Village will be designed to accommodate a community center to serve personal and business needs of residents and the University. Palamanui Project District Report 3-1 The design standards will be similar to those for the Village Commercial (CV) or General Commercial (CG), with the following exceptions: • Allow flexibility of minimum lot sizes. • Allow no front or rear yard setback. See Table 3.2 Development Area Standards Summary for a summary of development standards. Table 3.1 DEVELOPMENT AREA LAND USE LAND USE UNITS ACRES U/AC COMMENTS/NOTES RESIDENTIAL Single Family 590 *247 2.389 Multi -Family 255 *18 14.167 COMMERCIAL Village Inn 120 *8 15.000 Could include one or more mixed use projects at up to 15 Commercial (with u/ac individual project Mixed Useprojects) 85 *94 1.702 density. Overall residential density 930 residential computation based on total units units divided by developable areas (residential acres + SUBTOTAL: 120 visitor units *367 3.065 commercial acres RECREATIONAL Golf Course 1180 TOTAL -DEVELOPMENT 930 residential AREA (Commercial, units Residential, and Golf Course) 120 visitor units *547 TOTAL -CONSTRAINT AREAS (Open, Park, and Up to Preservation) *178 TOTAL-PALAMANUI PROJECT DISTRICT *725 Palamanui Project District Report 3-2 Table 3.2 DEVELOPMENT AREA STANDARDS SUMMARY Palamanui Project District Design Parameters Development Area Standards Project District land Residential: Provide a range of residential products. use designations and objectives Multiple -Family Mixed Use: Provide a range of multiple -family residential products with the possibility of some commercial and similar uses on the lower floors. Commercial Mixed Use: Provide a range of commercial uses with the possibility of noncommercial uses, e.g. residential, on the upper floors. Golf Course and Open Areas: Provide golf course, parks, and other open space amenities to serve the above commercial and residential activities. Permitted Uses The following permitted uses are to be allowed in the Palamanui Project District within the ±547 -acre Development Area for Residential, Multiple -Family Mixed Use, Commercial Mixed Use, Golf Course, and ancillary related development: Uses permitted in residential (RS, RD, RM) and commercial (CV, CG) zoning districts with the addition of: Golf courses and related golf course uses, including golf driving ranges, golf maintenance buildings and golf club houses, shall be permitted. Dwelling, rental and other units in connection with the operation of any permitted use shall be permitted in the Commercial Mixed Use areas. These units, generally, would be encouraged to locate in the upper floors of a development project with commercial and other non-residential uses on the lower floors. Commercial and other nonresidential uses in connection with the operation of any permitted dwelling units shall be permitted, on a limited basis, in the Multiple -Family Mixed Use Areas. These uses, generally, would be encouraged to locate on the lower floors of a development project with residential and other dwelling units above. Buildings and uses normally considered accessory to the uses Palamanui Project District Report 3-3 Design Parameters Development Area Standards permitted in this section shall also be permitted in the Project District. A list of permitted uses in the residential (RS, RD, and RM) and commercial (CV, CG) districts is attached. Permitted with Use Any uses similar in nature to the above permitted uses shall be Permit permitted upon submittal of a request by the applicant and approved by the Planning Director. Height Limit Residential: 35 feet Multiple Family Mixed Use: 45 feet Commercial Mixed Use: 45 feet Minimum Building 4,000 sq. ft. Site Area Palamanui requests a small lot size for more efficient and affordable housing sites where this density is appropriate and desired. This will give flexibility to project planners. Minimum Building 50 feet minimum requested in lieu of 60 -foot standard. This will Site Width provide flexibility where desirable for efficiency and affordability. Minimum Front and Residential: 15 feet Rear Yards Multiple -Family Mixed Use: 10 feet Commercial Mixed Use: None Minimum Side Residential: 8 feet Yards Multiple -Family Mixed Use: 8 feet Commercial Mixed Use: None. Other Regulations Landscaping for the development shall comply with the Planning Department's Rule No. 17, Landscaping Requirements. Exceptions to the regulations for the Project District regarding heights, building site areas, and yards, may be approved by the director within a planned unit development, or cluster plan development. The minimum off-street parking and loading space requirements for the Palamanui Project District will comply with the minimum standards as required by the Zoning Code, including compliance with the American Disabilities Act (ADA) requirements. 3.2.3 Golf Course and Recreation Palamanui Project District Report 3-4 The Development Area will include the I8 -hole golf course, bike paths, and walking paths. Other recreation amenities include a dry forest preserve, cultural preserves, passive park spaces, and active park spaces will be part of the Constraints Area preserves. 3.3 Infrastructure Requirements Infrastructure facilities to support the development include access and internal circulation roadway networks, a wastewater collection, treatment, and disposal system, a potable water supply and fire protection system, a non -potable water irrigation system and other utility systems. Infrastructure for the proposed development will be built in phases, as appropriate for the gradual development of the site. Each phase of infrastructure development will be designed and constructed to accommodate the proposed University of Hawaii Center at West Hawaii campus development on the adjacent parcel south of the Palamanui parcel. The following discusses the infrastructure design elements of the proposed Project District. Refer to the FEIS for a discussion of projected infrastructure demands. 3.3.1 Roadway System The developer proposes to provide a network of roadways to, from, and through the project site. The road network will serve the Palamanui development and support state and county regional roadway plans, such as the Keahole to Kailua ("K to K") development plan. Hiluhilu Development will reserve the necessary corridor for the planned Midlevel Road, Main Street and Kealaka`a Street Extension right of ways. Main roads will be designed to Hawaii County Public Works Department standards for streets with sidewalks and streets without sidewalks. These standards will apply to the main collector roads within the project, which will be dedicated to the County. As a modification to the standard roadway sections, bicycle paths will be provided to support University -related and other bicycle traffic. Bike paths will also be designed on access roads leading to the proposed development. Right-of-way widths and other details will be adjusted, as needed to comply with applicable County requirements for specific roads. The local roads within the development may remain private and may vary from County standards. Minor roads in the village area will include sidewalks, but minor roads in single-family residential areas and low- density commercial/institutional areas will not include sidewalks or bicycle paths due to the lower volume and speed of traffic these roads will carry. 3.3.2 Storm Drainage System Palamanui Project District Report 3-5 Stormwater runoff from impervious areas will be collected though a system of swales, catch basins, and pipes and transported to stormwater drywells or infiltration areas for disposal. The drywells will be designed as shallow infiltration basins with a horizontal dimension that exceeds basin depth. Permanent structural best management practices (BMPs) will be included during project design, and will primarily target nutrients and pesticides from both golf course and residential activities. Permanent non-structural BMPs will be included in the project's overall stormwater operation and maintenance program. The golf course and landscape management plans will be responsible for minimizing the discharge of fertilizers and pesticides, and selecting appropriate products to minimize stormwater pollution. The storm drainage system will be constructed in conjunction with the development of roads, the golf course, and specific sites within the project. 3.3.3 Water System The Palamanui project will include expansion of the County's potable water system though the public rights-of-way within the project and construction of a non -potable water system for golf course irrigation. Brackish well water will be used to irrigate the golf course in the early years. As treated effluent becomes available, it will supplement the brackish irrigation system. To date, Hiluhilu Development has outfitted and dedicated one of the two potable wells on the Kau property to the Department of Water Supply. Kau Wells 1 and 2 were included in a Water Agreement dated June 15, 1999, between K -W Kau, LLC, K -W Kohanaiki, LLC, and the Water Board of the County of Hawaii. 3.3.4 Sewer A self-contained, wastewater collection, treatment and disposal system is proposed for Palamanui. All wastewater plans will conform to applicable provisions of the Department of Health's Administrative Rules, Chapter 11- 62, "Wastewater Systems," including the Department's guidelines for the treatment and use of recycled water. 3.3.5 Solid Waste Solid waste generated on site will be collected and disposed at approved County solid waste disposal facilities. A solid waste management plan will be developed to reduce the volume generated during construction. A recycling program will be encouraged though out the project. Composting of green waste will be encouraged and landscape maintenance will recycle as much as is practicable. Palamanui Project District Report 3-6 Figure 4-1 CONSTRAINTS AREA ®0 400 600 1600 Palamanui Project District Application == .� Prepared for: Hiluhilu Development, LLC NORTH SCALE IN FEET Prepared by: Belt CollinsJHawaii June 2005 Makalei �--� Drive 1 u,wiuqu 8e.[/.U51 L. alahoa Highway 4 _ ...-To'Mam tiighwa _I. r --�. MakaW 0 X I O .J 0 I _ro 400 s LEGEND Preservation Areas Dry Forest Preserve Areas Archaeological Sites/Caves Areas Park Areas' / / Oueen 100 Q Infrastructure Kaahumanu" " Hf9hway - % �� Roadway Powerline Acreage and location to be determined. Figure 4-1 CONSTRAINTS AREA ®0 400 600 1600 Palamanui Project District Application == .� Prepared for: Hiluhilu Development, LLC NORTH SCALE IN FEET Prepared by: Belt CollinsJHawaii June 2005 5. PROJECT DISTRICT CRITERIA 5.1 Intent and Purpose According to Hawaii County Code, "A project district may be established... whenever the public necessity and convenience and the general welfare require that a comprehensive planning approach for an area should be adopted in order to establish a continuity in land uses and designs while providing a comprehensive network of infrastructural facilities and systems." 5.2 Additional Criteria In addition to the intent and purpose, the Code also states, "...a project district may only be established if the proposed district: (1) Is consistent with the intent and purpose of this chapter and the County general plan; and (2) Will not result in a substantial adverse impact upon the surrounding area community or region." Palamanui Project District Report 5-1 APPENDIX PERMITTED USES FROM COUNTY ZONING CODE RS, Single Family Districts (a) The following uses shall be permitted in the RS district: (1) Adult day care homes. (2) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this Code. (3) Community buildings, as permitted under section 25-4-11. (4) Crop production. (5) Dwellings, single-family. (6) Family child care homes. (7) Group living facilities. (8) Home occupations, as permitted under section 25-413. (9) Meeting facilities. (10) Model homes, as permitted under section 25-4-8. (11) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar neighbor- hood recreational areas and uses. (12) Public uses and structures, as permitted under section 25-4-11. (13) Temporary real estate offices, as permitted under section 25-4-8. (14) Utility substations, as permitted under section 25-4-11. (b) In addition to those uses permitted under subsection (a) above, the following uses may be permitted in the RS district, provided that a use permit is issued for each use: (1) Bed and breakfast establishments as permitted under section 25-4-7. (2) Care homes. (3) Churches, temples and synagogues. (4) Crematoriums. (5) Day care centers. (6) Golf courses and related golf course uses, including golf driving ranges, golf mainte- nance buildings and golf club houses. (7) Hospitals, sanitariums, old age, convalescent, nursing and rest homes. (8) Major outdoor amusement and recreation facilities. (9) Mortuaries. (10) Schools. (11) Telecommunication antennas and towers. (12) Yacht harbors and boating facilities. (c) Buildings and uses normally considered directly accessory to the uses permitted in this section shall also be permitted in the RS district. (1996, Ord. No. 96-160, sec. 2; ratified April 6, 1999.) RD, Double Family Residential Districts (a) The following uses shall be permitted in the RD district: (1) Adult day care homes. (2) Bed and breakfast establishments as permitted under section 25-4-7. (3) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this Code. (4) Community buildings, as permitted under section 25-4-11. (5) Crop production. (6) Dwellings, double -family or duplex. (7) Dwellings, single-family. (8) Family child care homes. Palamanui Project District Report A- 1 (9) Group living facilities. (10) Home occupations, as permitted under section 25-4-13. (11) Meeting facilities. (12) Model homes, as permitted under section 254-8. (13) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar neighbor- hood recr (14) Public uses and structures, as permitted under section 25-4-11. (15) Temporary real estate offices, as permitted under section 25-4-8. (16) Utility substations, as permitted under section 25-4-11. (b) In addition to those uses permitted under subsection (a) above, the following uses may be permitted in the RD district, provided that a use permit is issued for each use: (1) Care homes. (2) Churches, temples and synagogues. (3) Crematoriums. (4) Day care centers. (5) Golf courses and related golf course uses, including golf driving ranges, golf mainte- nance buildings and golf club houses. (6) Hospitals, sanitariums, old age, convalescent, nursing and rest homes. (7) Major outdoor amusement and recreation facilities. (8) Mortuaries. (9) Schools. (10) Telecommunication antennas and towers. Yacht harbors and boating facilities. (c) Buildings and uses normally considered directly accessory to the uses permitted under this section shall also be permitted in the RD district. (1996, Ord. No. 96-160, sec. 2; ratified April 6, 1999.) RM, Multiple Family Residential Districts (a) The following uses shall be permitted in the RM district: (1) Adult day care homes. (2) Bed and breakfast establishments, as permitted under section 25-4-7. (3) Boarding facilities, rooming, or lodging houses. (4) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this Code. (5) Commercial or personal service uses, on a small scale, as approved by the director, provided that the total gross floor area does not exceed one thousand two hundred square feet and a maximum of five employees. (6) Community buildings, as permitted under section 25-4-11. (7) Crop production. (8) Dwellings, double -family or duplex. (9) Dwellings, multiple family. (10) Dwellings, single-family. (11) Family child care homes. (12) Group living facilities. (13) Home occupations, as permitted under section 25-4-13. (14) Meeting facilities. (15) Model homes, as permitted under section 25-4-8. (16) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar neighbor- hood recreational areas and uses. (17) Public uses and structures, as permitted under section 25-4-11. (18) Temporary real estate offices, as permitted under section 25-4-8. (19) Time share units situated in any of the following: Palamanui Project District Report A- 2 (A) Areas designated as resort under the general plan land use pattern allocation guide (LUPAG) map. (B) Areas determined by the director to be within resort areas identified by the general plan land use element, except for retreat resort areas. (C) Areas determined for such use by the council, by resolution. (20) Utility substations, as permitted under section 25-4-11. (b) In addition to those uses permitted under subsection (a) above, the following uses may be permitted in the RM district, provided that a use permit is issued for each use: (1) Care homes. (2) Churches, temples and synagogues. (3) Crematoriums. (4) Day care centers. (5) Golf courses and related golf course uses, including golf driving ranges, golf mainte- nance buildings and golf club houses. (6) Hospitals, sanitariums, old age, convalescent, nursing and rest homes. (7) Major outdoor amusement and recreation facilities. (8) Mortuaries. (9) Schools. (10) Telecommunication antennas and towers. (11) Yacht harbors and boating facilities. (c) Buildings and uses normally considered directly accessory to the uses permitted in this section shall also be pertained in the RM district. (1996, Ord. No. 96-160, sec. 2; ratified April 6, 1999.) CV, Village Commercial Districts (a) The following uses shall be permitted in the CV district: (1) Adult day care homes. (2) Amusement and recreation facilities, indoor. (3) Art galleries, museums. (4) Automobile sales and rentals. (5) Automobile service stations. (6) Bars. (7) Bed and breakfast establishments, as permitted under section 25-4-7. (8) Boarding facilities, rooming, or lodging houses, provided that the maximum density shall be one thousand two hundred fifty square feet of land area per rentable unit or dwelling unit. (9) Business services. (10) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this Code. (11) Churches, temples and synagogues. (12) Commercial parking lots and garages. (13) Community buildings, as permitted under section 25-4-11. (14) Convenience stores. (15) Crop production. (16) Day care centers. (17) Dwellings, double -family or duplex, provided that the maximum density shall be one thousand two hundred fifty square feet of land area per rentable unit or dwelling unit. (18) Dwellings, multiple family, provided that the maximum density shall be one thousand two hundred fifty square feet of land area per rentable unit or dwelling unit. (19) Dwellings, single-family. (20) Family child care homes. Palamanui Project District Report A- 3 (21) Farmers markets. When the vending activity in a farmers market involves more than just the sale of local fresh and/or raw produce, plant life, fish and lovat homegrown and homemade products for more than two days a week, the director, at the time of plan approval, shall restrict the hours of use, maintenance and operations and may require improvements as determined appropriate to ensure its compatibility with the existing character of the surrounding area. (22) Financial institutions. (23) Group living facilities. (24) Home occupations, as permitted under section 25-4-13. (25) Hospitals, sanitariums, old age, convalescent, nursing and rest homes and other similar uses. (26) Hotels, when the design and use conform to the character of the area, as approved by the director. (27) Laboratories, medical and research. (28) Lodges. (29) Manufacturing, processing and packaging light and general, except for concrete or asphalt products, where the products are distributed to retail establishments located in the immediate community, as approved by the director. (30) Medical clinics. (31) Meeting facilities. (32) Model homes, as permitted under section 254-8. (33) Mortuaries. (34) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar neighbor- hood recreational areas and uses. (35) Offices. (36) Personal services. (37) Photography studios. (38) Public uses and structures, as permitted under section 25-4-11. (39) Publishing plants for newspapers, books and magazines, printing shops, cartographing, and duplicating processes such as blueprinting or photostating shops, which are designed to primarily serve the local area. (40) Repair establishments, major, when there are not more than five employees, as approved by the director. (41) Repair establishments, minor. (42) Restaurants. (43) Retail establishments. (44) Schools. (45) Telecommunication antennas, as permitted under section 25-4-12. (46) Temporary real estate offices, as permitted under section 25-4-8. (47) Theaters. (48) Utility substations, as permitted under section 25-4-11. (b) In addition to those uses permitted under subsection (a) above, the following uses may be permitted in the CV district, provided that a use permit is issued for each use: (1) Crematoriums. (2) Golf courses and related golf course uses, including golf driving ranges, golf mainte- nance buildings and golf club houses. (3) Major outdoor amusement and recreation facilities. (4) Yacht harbors and boating facilities. (c) Residential uses in connection with the operation of any permitted uses shall be permitted in the CV district. Palamanui Project District Report A-4 (d) Buildings and uses similar to the permitted uses listed in subsection (a) above shall be permit- ted in the CV district, as approved by the director. (e) Buildings and uses normally considered accessory to the uses permitted in this section shall also be permitted in the CV district. (1996, Ord. No. 96-160, sec. 2; ratified April 6, 1999.) CG, General Commercial Districts (a) The following uses shall be permitted uses in the CG district: (1) Adult day care homes. (2) Amusement and recreation facilities, indoor. (3) Art galleries, museums. (4) Art studios. (5) Automobile service stations. (6) Automobile sales and rentals. (7) Bars, nightclubs and cabarets. (8) Bed and breakfast establishments, as permitted under section 25-4-7. (9) Boarding facilities, rooming, or lodging houses, provided that the maximum density shall be one thousand two hundred fifty square feet of land area per rentable unit or dwelling unit. (10) Broadcasting stations. (11) Business services. (12) Car washing, provided that if it is mechanized, sound attenuated structures or sound attenuated walls shall be erected and maintained on the property lines. (13) Catering establishments. (14) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this Code. (15) Churches, temples and synagogues. (16) Cleaning plants using only nonflammable hydrocarbons in a sealed unit as the cleansing agent. (17) Commercial parking lots and garages. (18) Community buildings, as permitted under section 25-4-11. (19) Convenience stores. (20) Crop production. (21) Day care centers. (22) Display rooms for products sold elsewhere. (23) Dwellings, double -family or duplex, provided that the maximum density shall be one thousand two hundred fifty square feet of land area per rentable unit or dwelling unit. (24) Dwellings, multiple family, provided that the maximum density shall be one thousand two hundred fifty square feet of land area per rentable unit or dwelling unit. (25) Dwellings, single-family. (26) Equipment sales and rental yards, and other yards where retail products are displayed in the open. (27) Family child care homes. (28) Farmers markets. When the vending activity in a farmers market involves more than just the sale of local fresh and/or raw produce, plant life, fish and local homegrown and homemade products for more than two days a week, the director, at the time of plan approval, shall restrict the hours of use, maintenance and operations and may require improvements as determined appropriate to ensure its compatibility with the existing character of the surrounding area. (29) Financial institutions. (30) Group living facilities. (31) Home occupations, as permitted under section 25-4-13. (32) Hospitals, sanitariums, old age, convalescent, nursing and rest homes and other similar uses. Palamanui Project District Report A- 5 (33) Hotels. (34) Ice storage and dispensing facilities. (35) Laboratories, medical and research. (36) Laundries. (37) Light manufacturing, processing and packaging, where the only retail sales outlet for products produced is on the premises where produced. (38) Medical clinics. (39) Meeting facilities. (40) Model homes, as permitted under section 25-4-8. (41) Mortuaries. (42) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar neighbor- hood recreational areas and uses. (43) Offices. (44) Personal services. (45) Photography studios. (46) Public uses and structures, as permitted under section 25-4-11. (47) Printing shops, cartographing and duplicating processes such as blueprinting or photo - stating shops. (48) Repair establishments, minor. (49) Restaurants. (50) Retail establishments. (51) Schools. (52) Telecommunication antennas, as permitted under section 25-4-12. (53) Theaters. (54) Time share units. (55) Utility substations, as permitted under section 25-4-11. (56) Veterinary establishments. (b) In addition to those uses permitted under subsection (a) above, the following uses may be permitted in the CG district, provided that a use permit is issued for each use: (1) Crematoriums. (2) Golf courses and related golf course uses, including golf driving ranges, golf mainte- nance buildings and golf club houses. (3) Major outdoor amusement and recreation facilities. (4) Yacht harbors and boating facilities. (c) Residential uses in connection with the operation of any permitted use shall be permitted in the CG district. (d) Buildings and uses normally considered accessory to the uses permitted in this section shall also be permitted in the CG district. (1996, Ord. No. 96-160, sec. 2; ratified April 6, 1999.) Palamanui Project District Report A- 6 LAND USE COMMISSION DECISION AND ORDER DECISION AND ORDER IT IS HEREBY ORDERED that the Petition Area, being the subject of Docket No. A03-477, filed by Petitioner Hiluhilu Development, LLC, consisting of 725.2 acres of land in the State Land Use Conservation and Agriculture Districts at Kau, North Kona, Island, County and State of Hawai i, identified as Tax Map Key No. (3) 7-5-002: 001 is hereby reclassified into the State Land Use Urban District, and the State Land Use District Boundaries are amended accordingly. Based on the Findings of Fact and Conclusions of Law, it is hereby determined that the valued cultural, historical or natural resources and any customary and traditional native Hawaiian rights and practices within the Petition Area that have been identified herein shall be protected; that the Project shall not significantly affect or impair the continued exercise of those rights and practices; and that the reasonable exercise of those rights and practices shall be protected, to the extent feasible, by the conditions of approval set forth herein. IT IS FURTHER ORDERED THAT the reclassification of the Petition Area from the State Land Use Conservation and Agriculture Districts to State Land Use Urban Districts shall be subject to the following conditions: Affordable Housing. Petitioner shall provide affordable housing opportunities for residents of the State of Hawaii to the satisfaction of the County, acting in accordance with the County's Ordinance No. 05-23, Affordable Housing PolicX For the County of Hawaii. Petitioner shall provide no less than 100 onsite affordable units in accordance with the Petitioner's representations to the Commission or whatever number of affordable units is deemed acceptable by the County in accordance with the County's Ordinance No. 05-23, Affordable Housing Policy For the County of Hawaii, whichever is greater. The location and distribution of the affordable housing units or other provisions for affordable housing shall be under such terms as may be mutually agreeable between the Petitioner and County. 2. Public School Facilities. Petitioner shall contribute to the development,' funding and construction of public school facilities as determined by and to the satisfaction of the DOE. Petitioner shall enter into an agreement with the DOE covering the specific terms of such contribution prior to final subdivision approval and file such agreement with the Commission and the County. 3. Wastewater Facilities. Petitioner shall design and construct its wastewater disposal system in compliance with the requirement of the County and the DOH. 4. Wastewater Agreement for Underground Injection Offsite. Prior to final subdivision approval, Petitioner shall provide the Commission and the County with a copy of the executed agreement to inject wastewater underground offsite and above the UIC line on the adjacent State-owned land to the south of the Petition Area, or with other such landowner and location as approved by DOH. 5. Traffic Impact and Mitigation. Petitioner shall fund, design and construct its share of local and regional transportation improvements as determined by the SDOT and the County, which includes but is not limited to: a. Midlevel Connection with Ka'iminani Drive. Petitioner shall provide at its sole cost and expense a two-lane roadway between the Petition Area and Ka'iminani Drive in an alignment approved by the County and the University and acceptable to any other State agency with a property interest in the land on which the two-lane roadway is located. b. Mauka-Makai Connector Road. A mauka-makai connector road providing public access between Queen Kaahumanu Highway and the Mamalahoa Highway shall be provided at Petitioner's sole cost and expense. Said mauka-makai connector road shall connect to Mamalahoa Highway as Petitioner and the County may agree. C. Right -Of -Way For An Alternative Mauka-Makai Connector Road. Petitioner shall reserve a right-of-way along the east (mauka) portion of the Petition Area to support the possible future connection to the Mamalahoa 191 Highway. Petitioner shall construct at its sole cost and expense all portions of said future road that is within the Petition Area. Any proposed road construction plans and associated utility easements which may impact the Lowland Dry Forest Preserve shall be subject to prior review and approval of the Commission and shall include consultation with the County, such that County engineering standards or other County requirements do not adversely impact the Lowland Dry Forest Preserve. d. Request to Limit Vehicle Traffic on Portions of Makalei Drive. In the event that the mauka-makai connector road connects through Makalei Drive, to promote greater traffic safety, Petitioner shall prior to final subdivision approval, use reasonable efforts to petition the County to limit motor vehicle traffic on Makalei Drive as a through street, as it transverses Makalei Estates, to only those vehicles that have a gross vehicle weight of less than 10,000 pounds. 6. Integrated Natural Cultural Resources Management Plan UNCRMP). Petitioner shall implement the revised INCRMP including completion of all plans (with appropriate approvals), covenants and easements required under the revised INCRMP. Such implementation shall include, but not be limited to the following: a. Preservation of Significant Historic, Cultural, and Natural Resources. Petitioner shall preserve all of the identified significant historic, 4 cultural, and natural resources on the Petition Area as represented by the Petitioner to the Commission. b. Historic Preservation Mitigation Plan. Petitioner shall submit data recovery plans and preservation plans to the SHPD and obtain approval of those plans within one year of the issuance of this Decision and Order. If said plans as approved vary from those incorporated into the revised INCRMP, Petitioner shall amend the revised INCRMP to reflect SHPD's recommendations and submit the amended revised INCRMP to the Commission for its approval prior to final subdivision approval. C. Preservation of Lowland Dry Forest. Petitioner shall permanently protect the Lowland Dry Forest Preserve. Any proposed road construction plans, irrigation well sites and proposed access and utility easements which may impact the Lowland Dry Forest Preserve shall be subject to prior review and approval of the Commission. d. Coordination of Lowland Dzy Forest Preservation Efforts. Petitioner shall use reasonable efforts to coordinate its preservation of the Lowland Dry Forest Preserve with the State of Hawaz i Department of Land and Natural Resources as the Lowland Dry Forest Preserve extends in some places onto the neighboring state-owned property. Such coordination shall include, but not be limited to: sharing information regarding updated biological surveys; coordinating the development of a fire prevention plan; establishing appropriate firebreaks; and exploring contingencies for using the Project's irrigation systems to control brush fires. e. Preservation of Flora Outside of Lowland Dry Forest. Petitioner shall preserve all flora that are federally listed as Endangered Species throughout the Petition Area. Petitioner shall to the extent practicable, preserve flora identified as non -endangered indigenous and Species of Concern by incorporating such plants into the Project's landscaping and exclusionary fenced areas. f. Unidentified Archaeological Finds. If any burials, archaeological or historic sites such as artifacts, marine shell concentrations, charcoal deposits, or stone platforms, pavings or walls are discovered during the course of construction of the Project, then all construction activity in the vicinity of the discovery shall stop until the issuance of an archaeological clearance from the SHPD that mitigative measures have been implemented to its satisfaction. g. Preservation of Native Hawaiian Gathering and Access Rights. Petitioner shall preserve and protect any established Native Hawaiian traditional and customary rights exercised for subsistence, cultural and religious practices on the Petition Area. 0 h. Updated Biological Survey. Petitioner shall submit an updated biological survey of the Petition Area to the Commission before construction of the Project begins. The updated biological survey shall include but not be limited to, detailed information pertaining to any significant invertebrates and Hawaiian Hoary Bats within the Petition Area. L Cultural Monitor for Grubbing and Grading Activities. Petitioner shall retain the services of an appropriate number of qualified cultural monitors such that all grubbing and grading activities within the Petition Area are duly monitored. 7. Oven Space Buffer. Petitioner shall maintain an open space buffer on the Petition Area along Queen Kaahumanu Highway with a minimum width of 800 feet. The only man-made structures allowed in this open space buffer shall be the Northern Project Access Road, the Project's wastewater treatment plant, limited portions of the Project's golf course, and a groundwater monitoring well — as represented by the Petitioner to the Commission. Petitioner shall appropriately screen such uses to maintain the visual continuity of such buffer. 8. Civil Defense. Petitioner shall, on a fair -share basis, fund and construct adequate civil defense measures as determined by the State and County Civil Defense Agencies. 7 9. Air Oualily Monitoring. Petitioner shall participate in an air quality -monitoring program as specified by the DOH. 10. Noise and Avigation Easement. Petitioner shall notify all prospective buyers and future occupants of the Petition Area or portions of the Petition Area that overflights can occur from aircraft using KOA Airport. Petitioner shall grant to the State an avigation (right of flight) and noise easement in the form prescribed by the SDOT on any portion of the Petition Area subject to noise levels exceeding 55 Ldn. 11. Notification of Potential Nuisances - Agricultural. Petitioner shall notify all prospective buyers and future occupants of the Petition Area or portions of the Petition Area of potential odor, noise and dust pollution if there are any lands in the Agricultural District surrounding the Petition Area. 12. Notification of Potential Nuisances — HELCO. Petitioner shall notify all prospective buyers and future occupants of the Petition Area or portions of the Petition Area of the potential noise and air quality impacts associated with the existing use and proposed improvements to Hawaii Electric Light Company, Inc.'s Keahole Generating Station and Airport Substation. 13. Hawaii Right to Fane Act. Petitioner shall notify all prospective buyers and future occupants of the Petition Area or portions of the Petition Area that the Hawaii Right to Farm Act, Chapter 165, HRS, limits the circumstances 1.3 under which pre-existing farm activities may be deemed a nuisance if there are any lands in the Agricultural District surrounding the Petition Area. 14. Drainage Improvements. Petitioner shall fund the design and construction of drainage improvements required as a result of the development of the Petition Area to the satisfaction of the appropriate State and County agencies. 15. Integrated Solid Waste Management Plan. Petitioner shall cooperate with the DOH and the County to conform to the program goals and objectives of Chapter 342G, HRS, and the County's approved integrated solid waste management plans in accordance with a schedule and timeframe satisfactory to the DOH. Petitioner shall, in coordination with appropriate State and County government agencies, assist in the planning and promotion of solid waste recycling facilities for the Project. This condition shall be included in the Project's CC&Rs. 16. Groundwater and Near Shore Water Monitoring. Petitioner shall participate in the coastal water -monitoring program with the SDOT Airports Division. Petitioner shall conduct groundwater monitoring from a monitoring well to be located at the makai end of the Petition Area. Monitoring programs and mitigation measures shall be approved by the DOH. E 17. Water Service. Petitioner shall fund and construct adequate water source, storage, and transmission facilities and improvements as represented to the Commission and as required by the County Department of Water Supply to accommodate the Project. 18. Best Management Practices. Petitioner shall implement best management practices to reduce or eliminate soil erosion and groundwater pollution and implement dust control measures during the development process in accordance with DOH guidelines. 19. Water Conservation Measures. Petitioner shall implement water conservation measures and best management practices, such as use of indigenous and drought tolerant plants and to the extent possible, use Species of Concern and Endangered Species, and incorporate such measures into common areas landscape planning, and shall incorporate low flow fixtures into the construction of all residential and commercial units. 20. Energy Conservation Measures. Petitioner shall incorporate solar energy and energy conservation techniques where feasible into design of all residential and commercial units. 21. Hazardous Materials. Storage and/or disposal of hazardous materials on the Petition Area shall comply with all applicable DOH requirements and all necessary permits shall be obtained. 10 22. Golf Course. Petitioner shall comply with the principles of the DOH's "Guidelines Applicable to Golf Courses in Hawaii' (July 2002, Version 6). Petitioner shall develop and maintain the golf course in accordance with the Audubon International's Signature Silver Program standard. To the extent practicable, the Petitioner will utilize R-1 recycled wastewater to irrigate the golf course. 23. UniversitX Inn and Conference Center. As represented before the Commission, the Project shall include an approximate 120 -unit University Inn and Conference Center, which shall serve as a business hotel and provide accommodations in conjunction with University operations. The University Inn and Conference Center shall not be designed and operated as resort -type hotel or be used for time-share purposes. 24. Compliance with Representations to the Commission. Petitioner shall develop the Petition Area in substantial compliance with the representations made to the Commission. Failure to so develop the Petition Area may result in reversion of the Petition Area to its former classification, or change to a more appropriate classification. 25. Notice of Change of of Ownership. Petitioner shall provide notice to the Commission of any intent to sell, lease, assign, place in trust, or otherwise 11 voluntarily alter the ownership interests in the Petition Area, prior to development of the Petition Area. 26. Annual Reports. Petitioner shall timely provide without any prior notice, annual reports to the Commission, OP and the County in connection with the status of the subject Project proposed for the reclassification area, and Petitioner's progress in complying with the conditions imposed. The annual report shall be submitted in a form prescribed by the executive officer of the Commission. The annual report shall be due prior to or on the anniversary date of the approval of the Petition. 27. Release of Conditions. The Commission may fully or partially release the conditions provided herein as to all or any portion of the Petition Area upon timely motion and upon the provision of adequate assurance of satisfaction of these conditions by the Petitioner. 28. Notice of Imposition of Conditions. Within seven days of the approval date of the Petition, the Petitioner shall (a) Record with the Bureau of Conveyances a statement that the Petition Area is subject to conditions imposed herein by the Commission; and (b) File a copy of such recorded statement with the Commission. 29. Recordation of Conditions. Petitioner shall record the conditions imposed herein by the Commission with the Bureau of Conveyances within sixty 12 days after the receipt of the Decision and Order pursuant to Section 15-15-92, HAR. 13 STATE HISTORIC PRESERVATION DIVISION LETTER ACCEPTING ARCHAEOLOGICAL INVENTORY SURVEY UWA LMM OOyEMM OFMAWAO March 10, 2005 STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES Robert Rechtman, Ph.D. Rechtman Consulting Inc. HC 1 Box 4149 Kea'au, Hawaii 96749 Dear Dr. Rechtman: HISTORIC PRESERVATION DIVISION KAKUHIHEWA BUILDING, ROOM 556 601 KAMOKILA BOULEVARD KAPOLEI, HAWAII 96707 Peru T. roUMD CPVAVW Kw BOACOFLAMD AIC MnWAL FE OUP40 COMM88M OMWATO KIOUCE MAM EM89 DAN DAVOO M DEPT DNECIOM-LAW Tvo T. = DEMDT OBECIOM-WATML AOL"DC BEJOURCo BOATCO AIC OCEAN MECIFATMC MXWW OF COMVETANM CONMESM ON WAIM MOOUM E INIMO&AW CDNIMAODM AIC CONE&L l COMIEBVATMMAND PM UNC0 ENFOACDB ENOOREPWO MNECMTANDMOM MATOMC MEOEIWATLOM KAHp WE *LAW AEBWA COWAMS M LAM BATE PAM LOG NO: 2005.0447 DOC NO: 0503MM02 SUBJECT: Chapter 6E-42 Historic Preservation Review, "ADDENDUM: Archaeological Inventory Survey of the Kau Development Area" (RC -137) (Rechtman etal., March 2004) Ahupus'a of Kau, North Kona District, Hawaii Island Thank you for your cover letter dated March 29, 2004, and a copy of the revised version of this inventory survey for our review comments, which were undertaken in response to our review dated November 5, 2003 (Log No. 2003.1708, Doc No. 0309PM05). Subsequent to your having submitted the revised report, we were asked by your firm to defer review until you could submit further revisions, which we understand were undertaken in response to comments you received from the Office of Hawaiian Affairs (OHA). We have since received your cover letter dated October 15, 2004, with revised site significance evaluations and recommended treatments for sites Within the project area. We apologize for the delay in completing this review and for any inconvenience this may have caused you or your client, Hiluhilu Development, LLC. As we stated in our earlier review, the current report, through an agreement with our division, does not contain all of the historical and archaeological background information that would normally be presented in an archaeological inventory survey report. This information may be found in the earlier approved Ogden inventory survey (Shiltz at al 1991). We also found in our earlier review that the addendum inventory survey of the approximately 725 acre project area fulfilled the previously agreed -to scope of work. A total of 83 sites were found in the survey. The significance assessments and recommended treatments were deemed generally acceptable in the first draft, with the exception that we felt Site 14351, a walled habitatioNagricultural complex, should be preserved in its entirety, rather than as a portion. Some revisions were also requested in the background research, methods, and findings portions oflhe report All of the requested revisions have been adequately addressed. Site 14351 .Will be preserved in its entirety, and we note that the recommended treatment for Site 14375, a pre -contact lava tube habitation complex, has been changed from data recovery to preservation. FfWISIY 43 Robert Rechtman, Ph.D. Page 2 Of the 83 sites within the project area, all but two are assessed as significant under Criterion D. Four sites (14380, 14367, 23882 and 23864) are assessed as significant under Criterion E for their religioustceremonial association. No burial sites were identified during the inventory survey. Twelve sites will be preserved. These include 14351, 14367, 14375, and 23908 (pre -contact habitation lava tubes); 14388, 23862, and 23870 (pre -contact habitation complexes); 14380: (heiau); a portion of 14362: (trail); 14366: (habitation platform); 23884 (pre -contact habitation enclosurs/shrine) and a portion of 23865 (historic road bed). Data recovery will be undertaken at twenty-eight pre -contact sites and one historic period site. These Include 14339, 14346, 14350, 14365, and 14373 (lava tube habitations); 14341, 14371, 14372 and 23909 (habitation platform*); 14342 (agricultural complex); 14343, 14354, and 23902 (habitation terraces); 14344, 14347, 23898, 23899, and 23905 (habitation enclosures); 14345 (habitation ashape); 14357 (a trail); 23888 and 23887 (habitation pavements); 23885, 23894, 23897, and 23902 (habitation complexes); 23895 and 23904 (modified outcrop habitations); and 23907, (an historic habitation complex). For the remainder of the sites, sufficient documentation has been provided in this inventory survey such that no further work is recommended. We can now accept your significance assessments and recommended treatments and consider the addendum report acceptable. Your client may proceed with the preparation of a mitigation plan in consideration of the data recovery and preservation treatments. If you have any questions about this review, please contact MaryAnne Maigret in our Hawaii island office at (808) 327-3690. As%1a Aloha nis . hinen, Administrator State Historic Preservation Division MM:jen c: Christopher Yuen, Hawaii County Planning Department Office of Hawaiian Affairs (OHA) Hiluhiiu Development, LLC P.O. Box 7121, Kamusla, HI 96743 Anthony Ching, Executive Officer, Land Use Commission LAND USE COMMISSION ORDER ACCEPTING FINAL ENVIRONMENTAL IMPACT STATEMENT BEFORE THE LAND USE COMMISSION OF THE STATE OF HAWAII In the matter of the Petition of HILUHILU DEVELOPMENT, LLC To Amend the Land Use District Boundary of Approximately 725.2 acres of Land in the Agricultural District and Conservation District to the Urban District at Kau, North Kona, Hawaii, Tax Map Key No.: (3) 7-2-005:1. DOCKET NO. A03-744 ORDER ACCEPTING PETITIONER'S ENVIRONMENTAL IMPACT STATEMENT FILED ON SEPTEMBER 17, 2004 ORDER ACCEPTING PETITIONER'S ENVIRONMENTAL IMPACT STATEMENT FILED ON SEPTEMBER 17.2004 Correct t the offic�ey�®' w:e ._,fir °� . ,` ;2 ., -4onolulu, JJM44¢y:_ JAN 20'7S' BEFORE THE LAND USE COMMISSION OF THE STATE OF HAWAII In the matter of the Petition ) DOCKET NO. A03-744 of ) ORDER ACCEPTING PETITIONER'S ENVIRONMENTAL HILUHILU DEVELOPMENT, LLC ) IMPACT STATEMENT FILED ON ) SEPTEMBER 17, 2004 To Amend the Land Use District Boundary of Approximately 725.2 acres of Land in the Agricultural District and Conservation District to the Urban District at Kau, North Kona, Hawaii, Tax Map Key No.: (3) 7-2-005:1. ORDER ACCEPTING PETITIONER'S ENVIRONMENTAL IMPACT STATEMENT FILED ON SEPTEMBER 17, 2004 On September 17, 2004, Hiluhilu Development, LLC ("Petitioner') filed its second Final Environmental Impact Statement ("FEIS II") for its proposed 725.2 acre mixed residential and commercial development ("Project"). The FEIS II was submitted subsequent to the Petitioner's April 1, 2004 motion to withdraw the original FEIS from the proceeding. On October 7, 2004, the State Land Use Commission ("LUC" or "Commission") held it's meeting in Hilo, Hawaii, to consider acceptance of FEIS II as Petitioner's Final Impact Statement. The County of Hawaii Planning Department ("County") stated the FES II met the requirements for acceptance of a final environmental impact statement and had no objections to the Commission's acceptance of FEIS II. The State of Hawaii Office of Planning, Department of Business Economic Development and Tourism ("OP") agreed with the County in that the FEIS II met the requirements of a final environmental impact statement. The Commissioners requested that the Petitioner clarify, during the case in chief, the following topics: labeling Project's footprint in relation to archeological sites and include acreage on the master plan; providing information regarding the Project's plan to include senior housing; inserting the updated Level of Service chart for the Traffic Impact Analysis Report, dated January 27, 2004, to the FEIS II; and supplementing Section 6.2.4 of FEIS II regarding probable impacts to groundwater resources and proposed mitigation. On October 7, 2004, at its meeting in Hilo, Hawaii, the Commission accepted Petitioner's FEIS II for the foregoing reasons. CONCLUSIONS OF LAW Pursuant to Chapter 343, HRS, as amended, and Chapter 200 of Title 11, HAR, entitled "Environmental Impact Statement Rules," the Commission concludes that the Petitioner has satisfied the criteria and procedures for acceptance of a Final Environmental Impact Statement and the requirements of Section 11-200-23, HAR. Dodd No. A04-744 Il i100h, Ihvdopmcnl LLC Page 2 ORDER IT IS HEREBY ORDERED that the Final Environmental Impact Statement submitted by Petitioner as FEIS II, under LUC Docket No. A03-744/HILUHILU DEVELOPMENT, LLC, be and the same is hereby accepted pursuant to Chapter 343, HRS, and Chapter 200 of Title 11, HAR; and, the Petitioner shall address the concerns raised by the Commission during the case in chief. At the hearing conducted on October 7, 2004, a Motion to accept Petitioner's FEIS II as presented and deliberated was made and seconded. There being a vote tally of six ayes, the Motion was PASSED, having received the affirmative votes required by Section 15-15-13, HAR. Dated: Honolulu, Hawai'i, APPROVED AS TO FORM: Deputy Attorney General JAN 1 2 2005 LAND USE COMMISSION STATE OF AI'I r By P. Roy Catalani Chairperson and Commissioner Filed and effective on JAN 1 2 2005 Certified by: Executive Offoll Docket No. A04.744 HiluWlu Development LLC Page 3 BEFORE THE LAND USE COMMISSION OF THE STATE OF HAWAII In the matter of the Petition HILUHILU DEVELOPMENT, LLC To Amend the Conservation Land Use District Boundaries into the Urban Land Use District for Approximately 725.2 Acres in Kau, North Kona, Island of Hawaii, Tax Map Key: (3) 7-2-005: 001. DOCKET NO. A04-744 CERTIFICATE OF SERVICE CERTIFICATE OF SERVICE I hereby certify that a copy of the Order Accepting Petitioner's Environmental Impact Statement Filed On September 17, 2004 was served upon the following by either hand delivery or depositing the same in the U. S. Postal Service by regular or certified mail as noted: DEL. MARY LOU KOBAYASHI Office of Planning P. O. Box 2359 Honolulu, Hawaii 96804-2359 JOHN CHANG, Esq. Deputy Attorney General Hale Auhau, Third Floor 425 Queen Street Honolulu, Hawaii 96813 LINCOLN ASHIDA, Esq. Corporation Counsel County of Hawaii 101 Aupuni Street, Suite 325 Hilo, Hawaii 96720 CHRISTOPHER YUEN, Director County of Hawaii, Planning Department Aupuni Center 101 Pauahi Streeet, Suite 3 Hilo, Hawaii 96720 CERT. ALAN M. OKAMOTO, Esq. ROY K. NAKAMOTO JEREL I. YAMAMOTO 187 Kapiolani Street Hilo, Hawaii 96720 Dated: Honolulu, Hawaii, FJAN 1 2 2Q05 ANTHON61J. . CHIN Executive Officer Docket No, A04-744 Hiluhilu Development LLC Page 2 METES AND BOUNDS DESCRIPTION OF PROPERTY PARCEL A OPEN TO PROJECT DISTRICT BEING A PORTION OF ROYAL PATENT 8265, MAHELE AWARD 13-B TO PAALUA (CERTIFICATE OF BOUNDARIES NO. 191) AT KAU, NORTH KONA, ISLAND OF HAWAII, HAWAII Beginning at the northwest comer of this parcel, being also along the east side of Queen Kaahumanu Highway (Project No.: 19 BC -01-71), the coordinates of said point of beginning referred to Government Survey Triangulation Station "AKAHIPUU", being 9,071.21 feet North and 23,751.69 feet West and thence running by azimuths measured clockwise from true South: 1. 291 ° 46 30" 5726.03 feet along the Kukio-Ooma Government Tracts; 2. 17' 56' 2314.09 feet; 3. 115' 03'36" 5449.47 feet along the Government Lands of Makaula; 4. 189' 19'55" 2044.65 feet along the east side of Queen Kaahumsnu Highway (Project No.: 19 BC -01-71) to the point of beginning and containing an area of 274.861 Acres; and SUBJECT, HOWEVER, to Centerline Easement 16 (100 feet wide) for Transmission and Distribution of Electricity, recorded in Liber 12542, page 767; a Grant of Easement to Verizon Hawaii, Inc., recorded in Document No. 2001-082710, dated May 16, 2001 for a perpetual right and non-exclusive easement over said Easement 16 for Utility Purposes; and a Grant of Easement to Time Warner Entertainment Co., a Delaware Limited Partnership (doing business as Sun Cablevision), recorded in Document No. 2002-207540, dated September 9, 2002 for a non-exclusive easement over said Easement 16 for Utility Purposes. 420 ftakamiilo Road Suite 411 Honolulu Hawaii 96817-0941 Telephone 808 8421133 Faa 8088421937 email nmowfl10i­*,,acorrn ��I OR` R. A TOWILL CORPORATION SINCE 1930 Planning Engineering Erwimrmenul Services Photogran-et7 Surveying construction Management Description Prepared by: uCENSEo ' R. M. TOWILL CORPORATION PROFESSIONAL * 1 -ANO SURVEYOR 10744 I1A7J 4/30/06 73-5574 Maiau Street, Suite 11 tiq Wq;�, U, P Ross K. Tanaka Expiration Date Kailua-Kona, Hawaii 96740 Licensed Professional Land Surveyor June 29, 2005 Certificate Number 10744 Planning Engineering Enwimmlental Services Photo"mmetry Strveying Constnlction Management 410 Wawkarnilo Road �I' Suite 411 P`` Honolulu Hawaii 968174941 Telephone8442 will33 R. M. TOWILL CORPORATION email Momlle-onedAm SINCE 1930 Planning Engineering Enwimmlental Services Photo"mmetry Strveying Constnlction Management PARCEL B AG -3 TO PROJECT DISTRICT BEING A PORTION OF ROYAL PATENT 8265, MAHELE AWARD 13-B TO PAALUA (CERTIFICATE OF BOUNDARIES NO. 191) AT KAU, NORTH KONA, ISLAND OF HAWAII, HAWAII Beginning at the northwest comer of this parcel, being also along the south side of Kukio - Oorna Government Tracts, the coordinates of said point of beginning referred to Government Survey Triangulation Station "AKAHIPUU", being 6,947.06 feet North and 18,434.23 feet West and thence running by azimuths measured clockwise from true South: 1. 291' 46'30" 784.96 feet along the Kukio-Goma Government Tracts; 2. 280' 28' 22" 2806.44 feet along the Kukio-Ooma Government Tracts; 3. 290' 55'24" 3323.43 feet along the Kukio-Ooma Government Tracts; 4. 17' 14' 2844.54 feet along Lots 36, 37, 38, 44, 15, 14, 13, 12, 11, 10 an 9 of Makalai Estates - Phase 2 (File Plan 2294); 5. 100' 15'30" 1838.50 feet along the Government Lands of Makaula; 6. 115' 03'36" 5137.19 feet along the Government Lands of Makaula; 7. 197' 56' 2314.09 feet to the point of beginning and containing an area of 450.343 Acres; and SUBJECT, HOWEVER, to Easement W -2-A for Water Meter Purposes and a Grant of Easement to Water Board of the County of Hawaii for a perpetual easement over said Easement W -2-A for Waterline Purposes, recorded in Document No. 2002-082773, dated February 20, 2002. 420ftakamile Road Suite 411 Honolulu Hawaii 968111941 Telephone 808 8621133 Fu 8088421937 email rmtovrilpime.mm Al P0` R. M. TOVAU CORPORATION SINCE 1930 Planning Engineering Ennimnmental Services Photogrammetry Surveying Construction Management Description Prepared by: UPROFESSIONAL R. M. TOWILL CORPORATION ��4/30/06 73-5574 Maiau Street, Suite 11Ross K Tanaka Expiration Date Kailua-Kona, Hawaii 96740 Licensed Professional Land Surveyor June 29, 2005 Certificate Number 10744 Planning Engineering Ermmmuntal Services Photogmmmetry St-WMg Constructm Meriagemem 2- 420 Waiakamilo (toad I II Selte 411 Honolukr Haweii968174M1 T° 808 R. M. 'I wu CORPORATION Fa BOB 812 1937 eMail mnowifiCH ne.mm SINCE 1930 Planning Engineering Ermmmuntal Services Photogmmmetry St-WMg Constructm Meriagemem PETITION AREA DOCKET NO: A03-744 HILUHILU DEVELOPMENT, LLC -PETITIONER TAX MAP KEY: 7-2-05:1(3an Division) A PORTION OF ROYAL PATENT 8265, MAHELE AWARD 13-B TO PAALUA AT KAU, NORTH KONA, ISLAND OF HAWAII, HAWAII Beginning at a spike (fnd) at the northwest corner of this parcel of land, being along the east side of Queen Kaahumanu Highway (Prof. No. 19 BC -01-71), the coordinates of said point of beginning referred to Government Survey Triangulation Station "AKAHIPUU" being 194.43 feet North and 19,564.98 feet West and thence running by azimuths measured clockwise from true South: 1. 291'46'38" 6,510.97 feet along Kukio-Ooma Government Tract to a cut on rock in Ahu (End); 2. 280° 27' 37" 2,806.41 feet along Kukio-Ooma Government Tract to a "+"cut on rock in Abu (find); 3. 290' 55' 47" 3,322.84 feet along Kukio-Goma Government Tract; 4. 17' 14' 2,844.55 feet along Lots 36, 37, 38, 44, 15, 14, 13, 12, 11, 10, and 9 of Makalei Estates - Phase 2 (F.P. 2294) to a 'A" pipe (find); 5. 100' 15'46" 1,838.68 feet along Parcel 10 being a portion of the Government Lands of Makaula to a "+"cut on rock in Ahu (End); —1— 420 Waiakamilo Road All Planning Suite 411 V`` Engineenng Honolulu Hawaii 96817-4941 Environmental Services Telephone 808 8421133 Photogrammetry R. M. TOWILL CORPORATION Fax BOB 842/937 Sunieying Wail rmtoontVi-one.com SINCE 1930 Construction Management 6. 115' 03' 36.511 10,585.72 feet along Parcels 10, 13, 5 (University of Hawaii West Campus, C.S.F. 22,918), 12 and 9, same being portions of the Government IAnds of Makaula to a '/Z" pipe (fnd); 189' 19'55" 2,044.60 feet along the east side of Queen Kaahumanu Highway (Prof. No. 19 BC -01-71) to the point of beginning and containing an area of 725.139 Acres; and SUBJECT, HOWEVER, to the following. Easement "W -2-A" for Water Meter Purposes and a Grant of Easement to Water Board of the County of Hawaii (Doc. No. 2002-082773), a Perpetual Easement Over said Easement "W -2-A" for Waterline Purposes. Easement "16" (100 feet wide) for Transmission and Distribution of Electricity (Liber 12542, Page 767); Grant of Easements to Verizon Hawaii Inc. (Doc. No. 2001-082710) For a Perpetual Right and Non -Exclusive Easement Over Said Easement "1611 for Utility Purposes; and Time Warner Entertainment Co. (Doc. No. 2002- 207540) fora Non -Exclusive Easement Over Said Easement "1611 for Utility Purposes (HTS Plan 313-A). 73-5574 Maiau Street Kailua-Kona, Hawaii 96740 June 29, 2005 420 Waiakamilo Road Suite 411 Honolulu Hawaii 96817-4941 Telephone 809 8421133 Far 809942 1937 Wait rmto.11@i-om.com / % LICENSED I/ PROFESSIONAL * LAND SURVEYOR No. 10741 , Description Prepared by: R. M. TOWILL CORPORATION :+Ij -k JLL_ 4/30/06 Ross K. Tanaka ftxpiration Date Licensed Professional Land Surveyor Certificate Number 10744 %1 R. M. TOWILL CORPORATION SINCE 1930 Planning Engineering Environmental Services Photogrammetry Surveying construction Management � �* b | | !! z � | Harry Kim Mayor 4ri9i 041° 0810 Wgr 41633; $1. K 0MI/M08 William Takaba Fnaace Director County of Hawaii Nancy E. Crawford Deputy Director DEPARTMENT OF FINANCE - REAL PROPERTY TAX Aupuni Center, 101 Pauahi SUM, Suite 4 • Hilo, Hawaii 967204224 a Fax (808) 961-8415 Appraisen (808) 961-8354 a Cleriml (808) 961-8201 • Colkclions (808) 961-8282 75-5706 Kuakini Highway a Suite 112 • Kailua-Kona, Hawei9 96740 a Pax (808) 327-3538 Appraisal (808) 327-3542 a Ckrical (808) 3273540 REAL PROPERTY TAX CLEARANCE (rev. 07/99) Date: April 19, 2005 TMK(s): (3) 7-2-005-001 (Owner of Record:HILUHILU DEVELOPMENT LLC) This is to certify that the real property taxes due to the County of Hawai'i on the parcel(s) listed above have been paid up to and including June 30. 2005. This clearance was requested on behalf of BELT COLLINS HAWAII LTD. for the County Planning Department and is issued for this/these parcel(s) only. qi� &� Shelley Aoki, Tax Collection Assistant REAL PROPERTY TAX DIVISION Hawaii County is an Equal Opportunity Provider and Employer tarry Kim Mayor County of Hawaii William Takaba Finance Director Nancy E. Crawford Deputy Director DEPARTMENT OF FINANCE - REAL PROPERTY TAX 101 Pauahi Street • Suite 4 . Hilo, Hawaii 96720.4679 • Fax (808) 961-8415 Appraism (808) 961-8354 . Clerical (808) 961-8201 • Collections (808) 961.8282 75-5706 Kuakini Highway • Suite 112 • Kailua-Kona, Hawaii 96740 • Fax (808) 327-3538 Appraisers (808) 327-3542 • Clerical (808) 327-3540 ' REAL PROPERTY TAX CLEARANCE Date JUN 0 7 2005 2005 TMKNo. (3) 1- `L - ml�-- " y % (3) This is to certify that FAYM (Owner (s) or Leasee(s) of record) their real property taxes due to the County of Hawaii Real Property Tax Division on the parcel(s) listed above are paid for the tax year 2004-05 upto and including o -Y" 304 Kona Tax Clerk REAL PROPERTY TAX DIVISION Hawaii County is an Equal Opportunity Provider and Employer. TAX MAP KEY` OWNER / LESSEE AND ADDRESS 7-2-005:001 Hiluhilu Development LLC P.O. Box 9007 Kailua-Kona, HI 96745 7-2-005:008 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 7-2-005:999 Road 7-2-015:049 Stuffs, Jerry Tom P.O. Box 2909 Kailua-Kona, HI 96745 7-2-015:050 Mardian, Blair Anthony / Carrol Ann 27022 Mill Pond Capistrano Beach, CA 92624 7-2-015:051 Hahn, Brad L / Carolyn 6041 Bristol Anchorage, AK 99516 7-2-015:052 Bartlett, Gregory W / Devorah R 76-6296 Kololia Kailua-Kona, HI 96740 7-2-015:053 Yamada, Masaaki / Jo Ann M 72 Fleming Way Princeton, NJ 08540 7-2-015:054 Dadlani, Johnny / Kumiko 600 Kahlau Loop Honolulu, HI 96821 7-2-015:055 Lau, Keung Fu TR / Katherine Jean TR P.O. Box 1348 Honokaa, HI 96727 7-2-015:078 Wright, Mia Ellen c/o Ciccarelli, Chester / Denise TR Hualalai Resort P.O. Box 1596 Kailua-Kona, HI 96745 7-2-015:079 Chang, Tony H / Amy L 72-4126 Awalua Place Kailua-Kona, HI 96740 TAX MAP KEY OWNER / LESSEE AND ADDRESS' 7-2-015:080 Embernate, Franklin Paul 73-1328 Nawahie Street Kailua-Kona, HI 96740 Embernate, Franklin Paul / Leilani Pauline c/o HOMEQ:LN# 0322136904 P.O. Box 13909 Durham, NC 27709 7-2-015:086 Hiluhilu Development LLC P.O. Box 9007 Kailua-Kona, HI 96745 7-3-010:032 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 7-3-010:042 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 7-3-010:044 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 7-3-010:045 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 7-3-010:046 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 7-3-043:002 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 TAX MAP KEY OWNER ! LESSEE AND ADDRESS 7-3-043:003 State of Hawaii Land Management Division Dept. of Land and Natural Resources P.O. Box 621 Honolulu, HI 96809 Keahole Airport "Master" 7-3-043:999 Road 2005.33.3100/0033 ".5.051 I �A 0. raj M r Ei 2005.33.310MI U 2 ".6.0.51 FfM m m 1 K pier �� [0 lYll � f{�17 • 3 + 7 p + + a ! f 4 & tl. ;711 �, ` tl ` ♦� 71 e l �- ji E 3 O A'\\ `��.• it E+• Oi fA l�pj/ A x FfM m m November 21, 2005 2005.33.3100 / 05P-389 Mr. Norman Hayashi Planning Department County of Hawaii 101 Pauahi Street, Suite 3 Hilo, HI 96720-3043 Dear Mr. Hayashi: Variance Requests Palamanui Project District Application (REZ 05-010) TMK 7-2-5:01 At the request of Hiluhilu Development, LLC, we are writing to respond to your requests during our telephone conversation on Wednesday, November 2, 2005. It is our understanding that you and Chris Yuen met with representatives of Hiluhilu that morning to discuss agency comments on the above application. During our conversation, you asked that we provide you with more detailed information describing the various variance requests we submitted to you by letter on September 9, 2005. Specifically, you requested that we identify which roads on the property would be dedicated Honolulu and where on the property the variances would be required. Guam Hong Kong To address these requests, we have revised three of the figures we sent you (Figures 2, 3, Philippines Seattle and 4) to clarify how the requested variances relate to the proposed development site. We have also Singapore revised the table listing the variances to Include a new column that links each variance request to a Thailand location on the map. Finally, at the request of our client, we have added an additional variance request to the table. Specifically, Hiluhilu is now requesting that zero lot line development be permitted on the residential lots ranging in size from 4,000 square feet to 6,000 square feet. Should you have any questions about the information we are providing you, please call me at (808) 521-5361 or contact Mr. Roger Harris at 987-5182. Very truly yours, BELT COLLINS HAWAII LTD. Lee W. Sichter Principal Planner LWS:If Attachments cc: Roger Harris (via email) �(� Belt Collins Hawaii Ltd. E X / H� I B I T v ®Yt 912 2153 North King Street, Suite 200 . Honolulu, Hawaii 96819 USA t / !! T/808 521 5361 a F/808 538 7819 . honolulu@beitcollins.com . www.beitcollins.com L--• Bell Collins Hawaii is an Equal Opportunity Employer - B \ - \ \FL \ \ $7( }/! { / } j \ - ® - k k k k ! ! LU - ; e _ � k b § LU - . _f § \ )( § I - % } E |¥ 2 ; E |! ! | | §! ! !Z 2 ! . -2_/_/- E a¥s,z, If 7flf !!e!a! IL 7 { § © fEE k J ,> § ;k! %) § . 0 ff \ { .8go \ 0 \ \\ f! 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'm U c (i� N c N p 03 9 o o 5 4 oZl� f �„�. tk ¢1! � �' IN cc W cc Ly Ci cc W cc Ly Ci Ci COUNTY OF HAWAII•; STATE OF HAWAII BILL NO. ORDINANCE NO. 93 45 47 (Draft 3) AN ORDINANCE AMENDING SECTION 25-87 (NORTH KONA ZONE MAP), ARTICLE 3, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE, RELATING TO MODIFICATIONS OF CONDITIONS OF ORDINANCE NO. 850, AND FURTHER AMENDED BY ORDINANCE NO. 88-23, WHICH RECLASSIFIED 727.8 ACRES OF LANDFROM UNPLANNED (U) TO AGRICULTURAL (A -3a) AT KAU, NORTH KONA, HAWAII, COVERED BY TAX MAP KEY 7-2-05:PORTION OF 1. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Ordinance NO. 88-23 is amended as follows: "SECTION 1. Section 25-87, Article 3, Chapter 25 (Zoning Code) of the Hawaii County Code, is amended to change the district classification of property described hereinafter as follows: The district classification of the following area situated at Kau, North Kona, Hawaii, shall be Agricultural (A -3a):. Beginning at the Northeast corner of this parcel of land, on the westerly side of Hawaii Belt Road, F. A. P. No. F-10 (5), the coordinates of which referred to Government Survey Triangulation Station "AKAHIPUU" BEING 5,574.46 feet South and 2,650.51 feet West and running by azimuths measured clockwise from True South: 1. 11" 08' 1,630.12 feet along the westerly side of Hawaii Belt Road, F. A. P. No. F-10 (5); 2. 91' 30' 25.16 feet along Government Land; 3. 103' 19' 117.11 feet along Lot 1 of Makaula Subdivision, Unit 1; EXHIBIT 3 4. 105" 29' 45" 154.26 feet along Lot 3 of Makaula Subdivision, Unit 1; 5. 97" 42' 38" 190.95 feet along Lots 3 and 7-A of Makaula Subdivision, Unit 1; 6. 2" 00' 65.18 feet along Lot 7-A of Makaula Subdivision, Unit 1; 7. 93" 42' 20" 2,828.95 feet along Grant 3741 to W. H. Kailiino to a cut on ahu; 8. 98" 06' 2,069.50 feet along Government Land of Makaula to a "+" cut on ahu; 9. 100" 15' 30" 2,018.50 feet along Government Land of Makaula to a cut on stone; 10. 115' 04' 5,166.71 feet along Government Land of Makaula; 11. 198' 10' 2,312.70 feet along remainder of L. P. 8265, Mahele Award 13-B to Paalua (Certificate of Boundaries No. 191); 12. 291" 46' 30" 800.00 feet along Government Land of Puukala to a "+" cut on rock with ahu named "Kekuakakawahie"; 13. 280' 26' 30" 2,814.00 feet along Government Land of Puukala to a cut on rock on ahu; 14. 2900 58' 30" 5,603.00 feet along Government Land of Puukala to a "+" cut in Pahoehoe; -2- 15. 286° 08' 20" 844.61 feet along Grant 3968 to P. M. Pahukula to a pipe in concrete; 16. 286° 19' 30" 1,522.38 feet along Lots 78, 73, 69, 65, 61, 57, 53, 49, 45, 39, 31 and 25 of Kona Ocean View Properties (File Plan 637) to a pipe in concrete; 17. 286° 21' 621.96 feet along Grant 3968 to P. M. Pahukula to the point of beginning and containing an area of 727.8 Acres. All as shown on the map attached hereto, marked Exhibit "A" and by reference made a part hereof. "SECTION 2. This change in district classification is conditioned upon the following: (A) that the [petitioners, or their authorized representative, ]applicant, successor or assigns shall be responsible for complying with all of the stated conditions of approval; (B) that a drainage system in accordance with the standards of the Department of Public Works shall be installed; (C) that the property shall be developed on an incremental basis. There shall be no more than [five (5)] three (3) increments of which the first [three (3)] two 2 shall consist of [49] no more than 100 lots each; (D) that the zoning for Increment I shall not become effective unless and until there are legal and financial assurances satisfactory to the Department of Water Supply that water for domestic and -3- agricultural use for Increment I will be available; [provided, however, that the zoning for Increments II through V shall not become effective until adequate water for domestic and agricultural use meeting with the approval of the Department of Water Supply is available at the property line of that increment. Should the legal and financial assurance described above fail, the Council shall take action to rezone the property back to its original zoning; (E) that the zoning for the second and successive increments shall be effective upon the establishment of agricultural use on fifty (50) percent of the lots in the preceding increment. Agricultural use is defined as the planting of crops on minimum of two (2) acres of the respective lot; (F) that the zoning for the second and successive increments shall be effective upon the Council approval of performance reports containing information on the status of compliance of conditions (D) and (E). The performance reports shall be submitted by the petitioner to the County Council;] (E) that the zoning for the second and third increments shall be effective upon the establishment of adequate water for domestic and agricultural use meeting with the approval of the Department of Water Supply at the property line of that increment, provided however that the final subdivision approval shall not be granted until it is demonstrated to the satisfaction of the Planning Director that substantial agricultural activity is being conducted on fifty (50) percent of the lots in the first increment and on at least ME two-thirds of the land of each lot comprising that minimum of fifty (50) Dercent, For the purpose of this condition, "agricultural" shall be defined as the cultivation of crops including but not limited to flowers vegetables, foliage, fruits forage and timber• game propagation• raising of livestock including but not limited to poultry, bees, fish or other animal or aquatic life that are propagated for economic or personal use An agricultural activity will be considered substantial• (1) if it provides a major source of income to the Person(s) who resides on the property• or (2) if the property is dedicated for agriculture uses in accordance with applicable Deva-tment of Finance. Real Property Tax Division's procedures This condition shall be incorporated in each of the deeds for the proposed lots and shall be duly recorded with the State Bureau of Conveyances and a copy shall be filed with the Planning Devartme t within one year of the date of final subdivision approval of the lots; [(H)I(F) that the final subdivision approval of the first increment shall be secured [within one year from the effective date of this amendment] by January 31 1994 and that subdivision plans for the subsequent increments shall be submitted within one (1) year from the date of receipt of final subdivision approval of the previous increment(s); (G) that [the] A proposed 80 -foot wide right-of-way and its improvements shall be extended to the Queen Kaahumanu Highway if and.when any development occurs -5- within the existing Conservation District portion of the parcel identified as TMK: 7-2-5:1; (H) that to insure Prover regional road system development. the applicant shall Participate in the implementation of the County's Keahole to Kailua Sub-Regional Plan All Portions of Kau Drive University Drive Kealakaa Street Waena Drive and the mid-level arterial that traverse the subiect parcel shall be constructed and dedicated incrementally with the subdivision buildout Roadway and intersection Plans shall be reviewed and approved by the Department of Public Works and Department of Transportation [(I) that restrictive deed covenants for each lot shall be recorded with the Bureau of Conveyances together with any recordation of the final subdivision plat maps. The covenants shall-include mandatory participation by each lot owner in the agricultural co-op; and that the co-op shall have the authority and responsibility for the cultivation, harvesting and marketing of all crops planted in conjunction with the development of the subdivision. Other documentation as deemed necessary by the Corporation Counsel shall be recorded or filed to meet the intent of establishing an agricultural cooperative with the full responsibility and control over the proposed agricultural park; and) M that a Solid Waste Management Plan meeting with the approval of the Department of Public Works shall be submitted prior to final subdivision approval of the first increment• (J) that the applicant shall install a wastewater t atment system meeting with the reguirements of the Department of Health and Department of Public Works; (K) that all construction wastes shall be prohibited from the LandfillKailua landfill and all transfer stations island -wide until t) new West Hawaii •}• in operation, responsibleConstruction wastes may be brought to the Hilo Landfill. however. the contractor will be . Provide all labor,necessary .. ..- landfill any L• : the deeds all the vroposed lots shall Prohibit the construction of a second dwellina unit on each lot, A copyLProposed • -rprorded wi : the Bureau of Conveyances}, Prior to final subdivision anyroval. A covy of the avvroved covenant shall• _ recited f an instrumentexecuted • } - applicant and the County and recorded with the Bureau of Conveyances li- - Prior to final subdivision approval: M should any unidentified sites or remains such as artifacts. ials. rock or corm } . • - • • • - • • S alignments. navings or walks be encountere . work in the imm" vartment shall•- liately notified, Subseguent work shall proceed . • } an findsarchaeologic I clearance from the Plannina Department when it sufficient• _ measures have been taken: [(J)I(N) that all other applicable rules, regulations and -7- requirements shall be complied with[, and): (0) should the Council adopt a Unified Impact Fees ordinance settina forth criteria for the imposition of exactions or the assessment of impact fees..conditions included herein shall be credited towards the requirements of the Unified Impact Fees Ordinance* (P) that an annual progress report shall be submitted to the Planning Director prior to the anniversary date of the effective date of the amended ordinance 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 Plannina Director acknowledges that further reports are not required; and [(K)](0) that an initial extension of time for the performance DI conditions within the ordinance may be granted by the Planning Director upon the following circumstances: a) 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; b) granting of the time extension would not be contrary to the general plan or zoning code; c) granting of the time extension would not be contrary to the original reasons for the granting of the change of zone; d) 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 am extended for up to one additional year); and e) 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 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 adoption. INTRODUCED BY: CO NCIL MEMBE , COUNTT OF HAWAII Hilo, Hawaii Date of Introduction: April 21, 1993 Date of 1st Reading: April 21, 1993 Date of 2nd Reading: May 5, 1993 Effective Date: May 12, 1993 APPROVED AS TO FORM AND LEGALITY: TUTY CO RATION COUNSEL DATED: -9- F uN�_w Ncc 'u) TRUE N�RThi �-•t > cne I AIL" UNPL.ANNFD (U) TO A%R1C_ULTURAL (A -3v) i ARCA • 7E7. W -ACRES uwPUAl.,wac !u: i cPc+w u N' OPEN "O L r / g1j2t Ncra 'cl •,er 422 ONGIVV.NGE MJaELF ESO PORV jl� Clw T' VMO �CJNCR ^JC�CF,(�TI�N ��I1 CF L ztwQ CwhNGLf1 A'mO- r- 'I � / I i / l I I YNnIANNLLI • v � � �� f I �/ UNPL.ANNFD (U) TO A%R1C_ULTURAL (A -3v) i ARCA • 7E7. W -ACRES uwPUAl.,wac !u: i cPc+w u N' OPEN "O L r / g1j2t Ncra 'cl •,er 422 ONGIVV.NGE MJaELF ESO PORV jl� Clw T' VMO �CJNCR ^JC�CF,(�TI�N ��I1 CF L ztwQ CwhNGLf1 A'mO- A -ID - c (+LN •OI AMENDMENT _TO THE ZCNING COGi AMENDMENT NO. 61 TO SECTION -xwe (THE NORTH KONA ZONE MAP) ARTICLE 2. CHAPTER H (ZONING CODE) OF THE HAWAII COUNT-' CODE, AS AMaHOEO, BY CHANCING THC - DISTRICT CLASSIFICATION FIQONI UNPLANNEO (U) TO AGRICULTURAL (A-30) AT K.Au, NORTH ttONA, HAWP.11. DATL. o}= PU6LIC )-fEAril r:3 DE'C. 3• t981 * JAN. 14, 19Bz !-'FF�CTIVC= GATE PCO. IM, 'MOB OROfN ANCE NUME3,MTR 350 PREPARED B-' ' CLAN NTNG OE ^11 NT COUNT? OF MAriA11 TMIc 7-2.OS' 1 IF -OR) MARCH 2s, I^JE2 EXHIBIT "A" r- 'I IA Mi _I \� I' I I YNnIANNLLI • v � � �� f I E A -I- L I _ 1 UNpLiNN=.^.� Q Z A -ID - c (+LN •OI AMENDMENT _TO THE ZCNING COGi AMENDMENT NO. 61 TO SECTION -xwe (THE NORTH KONA ZONE MAP) ARTICLE 2. CHAPTER H (ZONING CODE) OF THE HAWAII COUNT-' CODE, AS AMaHOEO, BY CHANCING THC - DISTRICT CLASSIFICATION FIQONI UNPLANNEO (U) TO AGRICULTURAL (A-30) AT K.Au, NORTH ttONA, HAWP.11. DATL. o}= PU6LIC )-fEAril r:3 DE'C. 3• t981 * JAN. 14, 19Bz !-'FF�CTIVC= GATE PCO. IM, 'MOB OROfN ANCE NUME3,MTR 350 PREPARED B-' ' CLAN NTNG OE ^11 NT COUNT? OF MAriA11 TMIc 7-2.OS' 1 IF -OR) MARCH 2s, I^JE2 EXHIBIT "A" UNIVERSITY OF HAWAII CENTER: WEST HAWAII AMENDED AND RESTATED MEMORANDUM OF UNDERSTANDING April 16, 2004 i Preamble The University of Hawaii West Hawaii Center was among the centers established by the Board of Regents action in June 1996. The West Hawaii Center is a vehicle for delivering programs and services from all parts of the University of Hawaii system to West Hawaii. Goal E of the University of Hawaii Center: West Hawaii Development Plan 1998-2007 provides that the goal was to: "Develop the infrastructure of the Center, including provision of basic facilities, equipment and support personnel to facilitate the delivery of quality programs and services." One of the factors limiting the West Hawaii program was the location of the Center in Kealakekua, and the lack of adequate facilities and infrastructure. The University of Hawaii identified a 500 acre parcel of vacant land east of the Keahole Airport (within Tax Map Key parcel [3] 7-3-10-42) as a suitable site for a permanent campus for the West Hawaii Center. The development of this site has been hampered by a lack of capital improvement funds to provide adequate potable water, roadway and other basic supporting infrastructure and to allow construction of classroom and office buildings. Hiluhilu Development, LLC ("Hiluhilu') owns the parcel of land (TMK [3] 7-2- 5-1) adjacent to the north boundary of the University of Hawai`i's 500 acre site. Hiluhilu expressed its willingness to coordinate its development with that of the West Hawaii campus and to cooperate by providing supporting infrastructure for the West Hawaii Center. On November 21, 2002, the University of Hawaii and Hiluhilu entered into a Memorandum of Understanding to begin discussions on the development of a University Village and providing critical infrastructure for the University's initial relocation of the West Hawai `i Center. Since that time, representatives of the University of Hawaii and Hiluhilu have continued discussions on these subjects and Hiluhilu has been in discussion EXHIBIT �J (_J with its consultants, the County Department of Water Supply, the State Department of Land and Natural Resources, the Department of Hawaiian Home Lands, and the Department of Transportation. The parties to this Memorandum wish to incorporate certain understandings that have been reached as a result of those discussions into an updated memorandum which will provide the key principles which will be used to guide the parties in future discussions directed toward producing formal legally binding commitments. The University of Hawai'i wishes to explore further the specifics of its ability to relocate from its present leased facilities at Kealakekua, Hawaii to the University Village using its existing budget to cover the cost of using the new facilities on a midterm basis of 5 to 10 years until the University's facilities can be built on its own land adjacent to the Hiluhilu land. For the convenience of the parties, this document contains all of the terms that the parties have agreed upon. This Amended and Restated Memorandum of Understanding restates the provisions relating to the substantive courses of action in the November 2002 Memorandum of Understanding and, in light of these courses of action, outlines the key principles that will guide future discussions directed toward producing formal legally binding commitments between the parties. Statement of Understanding I. Initial Courses of Action. The substantive courses of action as identified in the November 2002 Memorandum of Understanding were: 1. The parties to this Memorandum shall consult on the location and general site plan for the initial phase of an area to be developed for a University Village for the West Hawaii Center. The University Village area will extend across the University land and across the Hiluhilu land and will be master planned to provide classrooms, office, living accommodations, food service and supporting commercial facilities for the West Hawai'i Center. 2. The parties to this Memorandum shall consult and cooperate in identifying critical infrastructure required for the initial relocation of the University's operations to the University Village. The infrastructure will include providing potable water, wastewater treatment and internal roadway access. 3. Hiluhilu will include in its development planning provisions to allow the West Hawaii Center to share roadway access from the Queen Kaahumanu Highway to the site of the University Village. The parties will discuss the routing of such access, including the possibility that a portion of said roadway system may be located within the State land. 4. Hiluhilu, in planning for potable water units for its development, shall use its best efforts to obtain potable water for the first phase of University Village and will coordinate its efforts with the University to obtain additional potable water for later phases of the West Hawaii Center. 5. Hiluhilu will include in its development plans provisions to allow the University Village to connect to the private wastewater treatment system which Hiluhilu will build. The plans will include provisions to allow expansion of the facilities as additional capacity is needed. 6. The parties to this Memorandum will discuss the feasibility of relocating to the University Village site with Hiluhilu having buildings constructed for lease by the University for the initial phase of the West Hawaii Center. II. Key Principles to Use for Legally Binding Obligations. 1. The parties now wish to identify the key principles which Hiluhilu will use to present specific improvements of benefit to the University. Future discussions between the parties and formal legally binding commitments will be made in context of these principles. All obligations of the University stated in this document are aspirations, and are not legally binding or enforceable. To become legally enforceable and binding, the Regents of the University of Hawaii must approve those obligations, and sufficient funds must be available to the University to allow it to perform any such obligations. 2. Potable water. Hiluhilu and the University will both participate in the County Department of Water Supply planning for this area so that the lands of both Mluhilu and the University can obtain adequate potable water for development. The University shall decide whether its participation will be done in conjunction with the Department of Land and Natural Resources or otherwise. In this regard, it is understood that Mluhilu is responsible for obtaining water commitments for any buildings constructed on its land, including any buildings thereon leased to the University. 3. Roadway. Hiluhilu will develop any roadway that it builds to connect to the Queen Kaahumanu Highway so that the University will be able to use it for access to its land. Hiluhilu and the University will coordinate efforts to develop a mutually acceptable roadway to Queen Kaahumanu Highway, including consultation with the Department of Land and Natural Resources, the Department of Transportation and the Department of Hawaiian Home Lands. Except for that portion of the roadway that extends into the University land, the University will not participate in the cost of such roadway. 4. Wastewater Treatment Plant and Related Improvements. The private wastewater treatment plant and related improvements that Hiluhilu will build for its land will be designed to handle all of the wastewater being generated in conjunction with the Hiluhilu land. This capacity will include wastewater from buildings on the Hilubilu land that will be leased to the University. The obligations of the University with respect to the cost of wastewater disposal from those leased facilities will be as a tenant to pay for a share of those costs as part of common area expenses. MIuhilu expects that the wastewater treatment plant and related improvements will be operated by a separate legal entity which will process wastewater from the buildings on the Hiluhilu land. It is expected that the entity will be subject to State PUC regulation on various phases of its business, including rates to be charged to customers and future plant expansion. Hiluhilu will consult with the University on the location and design of the wastewater treatment facilities. If the University is interested in having the wastewater from improvements on its own land processed by this entity, Hiluhilu will have its initial wastewater treatment system designed to allow it to be expanded as needed to handle the wastewater from the University land and will provide the means by which the separate entity will enter into discussion for expansion of the wastewater treatment system to handle the wastewater from University land. As a part of this process, the University may be asked to provide land area for the entity suitable for 4 wastewater treatment improvements. Any actual agreement regarding such expansion would require the agreement of the entity operating the wastewater treatment system as well as that of the University and Hiluhilu. 5. Architectural and Use Controls. Hiluhilu and the University will jointly develop a set of design standards and use controls covering a University Village area that will partly be located on Hiluhilu land and partly on University land. The precise extent of the University Village will be defined in the future. The concept of the University Village is to create a pedestrian oriented corridor approximately feet in length. For the Hiluhilu land, these standards and controls shall be incorporated into the appropriate restrictive covenants that will run with the land. For the University land, the University shall establish such policies and controls that will allow it to undertake future construction in conformance with the standards and controls. The architectural standards will focus upon creating improvements whose exterior appearance will be compatible with a traditional rural Hawaii community. Structures will be designed to preserve existing views, especially those for pedestrians. The designs used will emphasize natural ventilation, building insulation and landscaping to create energy efficient structures. Use controls will focus on allowing mixes of compatible educational and commercial uses within the University village. Uses that could conflict with the educational uses would be conditioned and restricted to minimize such conflicts. 6. Initial Building Improvements for University. The University shall provide Hiluhilu with its initial estimate for the classrooms, office space and related improvements it needs to allow it to relocate its present West Hawaii operations to the University Village area. Hiluhilu shall prepare a proposal under which it would construct the improvements on its land and lease the same to the University. The design of the structures and the related improvements would allow Hiluhilu to convert them to a non - University use after the expiration of the lease to the University. The term of the leases will be by mutual agreement. While this memorandum does not limit either party from proposing any term, the general range being contemplated would be an initial term of 5 to 10 years with one comparable option period. The lease form will be a standard real estate lease form. Depending on the specific needs of the University, the leased areas may be space within a building or may be the entire buildings (with appropriate rights to common areas such as parking lots, pedestrian walkways, service and maintenance areas). The lease form would not involve conveying any equity interest in the underlying land, nor would the terms include a financing lease under which a portion of the lease payments would be applicable to purchase of the leased property. Hiluhilu would design spaces for use by the University which would be suitable for general office or classroom purposes. As a guiding principle, the design of such spaces should be such as to allow Hiluhilu to convert those spaces on termination of the lease with the University into space for commercial tenants without extraordinary renovations to the buildings such as having to remove load bearing walls. 5 f.J ( J The rent shall be in an amount as agreed by the University and Hiluhilu. The rent being contemplated would be within the range that the University would pay for comparable facilities elsewhere in the Kona area. As a guiding principle, the objective of the parties is to create classroom and office space that is functionally equal or better to that currently in use by the University in Kona within the University's budget for space in Kona over the period that the lease with Hiluhilu would cover. In this context, the parties expect that the leased areas would allow the University to at least have the classroom capacities that it now has. To the extent possible, the parties will work towards the objective of providing additional capacity to allow for expansion of University programs. The parties will review various alternatives, including providing more floor area for larger classrooms, providing more classrooms and designing classroom space so it can be easily divided or combined to suit enrollment and program needs. The University would cover the cost of improvements that would have specific uses for educational programs and would not be usable by a commercial tenant. For improvements constructed on Hiluhilu land and leased to the University, the University is not expected to contribute to the associated capital costs. Hiluhilu will cooperate with the University in reviewing any proposal to construct improvements on the University land. In such case, however, one element in such construction would be the responsibility for the cost of related capital improvements on the State land required to support such improvements. 0 III. Conditions, Duration of Memorandum 1. Although the parties to this Memorandum hope to implement the results of the development planning to be undertaken under this Memorandum, such implementation is conditioned upon the parties being able to obtain funding, water units, permits and other governmental authorizations. In the case of Mluhilu, implementation will also depend on the financial feasibility of various parts of its development. 2.. With respect to the efforts of the parties to obtain funding, water units, permits and other governmental authorizations, the parties to this Memorandum will cooperate with each other in providing information and reasonable support for the fiutherance of the University Village pursuant to mutually acceptable development plans. 3. If the parties to this memorandum are able to agree upon the development plans for the University Village, they will enter into negotiations to establish mutually acceptable terms for such items as operating costs of common infrastructure and lease terms. Hiluhilu expects that it can solely bear the cost of certain capital infrastructure such as shared roadways and infrastructure required for the initial phase of the University Village as part of its contribution to the community for development impacts. It is expected that other capital infrastructure costs which are solely of benefit to the University would be the responsibility of the University. The parties will discuss the terms for other infrastructure costs which are of mutual benefit to both of them. 4. This agreement expires automatically twenty four (24) months after the date of this agreement unless extended by mutual written agreement. Either party may terminate this agreement at any time prior to the expiration date for any reason, upon thirty (30) days notice to the other party. 5. This agreement to consult with each other and discuss joint development opportunities for the adjoining parcels identified in the Preamble is not an exclusive agreement. Either party may explore other development options. Signed on this day: OF HAWAII HILUHILU DEVELOPMENT, LLC '9v—an S. Dobelle Its Manager Its President (b) No person shall advertise or represent to the public that a permit to construct ohana welling unit is transferable with the sale of the property on which the permit h een granted. Sec 25-6-39.4. Pending applications. (a) A ending applications for ohana dwellings filed with the director rior to May 4, 1996 shall be pr ssed in accordance with this division, with the exception the filing fee. The director may ire the applicant to submit additional information t omply with this division. Section 25-6-J$.. Illegally constructed ohana dwellings. n the event that an ohana dwelling unit is construed ntrary to the provisions of this div' ton, with or without a permit therefor having be6p iss d, the ohana dwelling unit, s 11 be considered unlawful and a public nuisance, and actio or p ceedings for abatement emoval and enjoinment of the unlawful ohana dwelling shal e " tely be commenc in accordance with this chapter. Section 25-6-39.6. Rev ation an ohana ening permit. (a) The director may initis proce ings t evoke a permit for an ohana dwelling unit if: (1) The applicant intenttinall epresei application, including all attachments; or (2) The applicant trans e r attem d by the director prior to completion e coritction o approval by the chief engineer; (b) The director shall a written notice of the I by registered or certified m ' with return receipt. (c) The applican ay, within thirty days after .� notice, appeal the rev tion notice to the board of appeal County charter and ctions 25-2-20 through 25-2-24 of tl of appeals shall y the provisions of the director's order M ard of aope s. n 25-6-39.7. Appeals. Any person aggrieved by the decision of th irec of an ohana dwelling permit decision, except for a decision regarding th t under section 25-6-39.2, may appeal the director's action to, the board of ap ce with this chapter, within thirty days after the date of the director's written the of a a material fact in the permit an ohana dwelling unit permit issued tie ohana dwelling unit and final revocation on the applicant ipt of the roposed revocation as provide section 5-6.3 of the \chapter. Anveal to the board ending the final oXision of the in Division 4. Project Districts (PD) Section 25-640. Purpose and applicability. The project district (PD) development is intended to provide for a flexible and creative planning approach rather than specific land use designations, for quality developments. It will also allow for flexibility in location of specific uses and mixes of structural alternatives. The planning approach would establish a continuity in land uses and designs while providing for a comprehensive network of infrastructural facilities and systems. A variety of uses as well as open space, parks, and other project uses are intended to be in accord with each individual project district objective. A project district is an amendment to this chapter which changes the district boundaries in accordance with the individual project district. Section 25-641. Criteria for establishing a project district. A project district may be established as an amendment to this chapter whenever the public necessity and convenience and the general welfare require that a comprehensive planning approach for an area should be EXHU31T 97 adopted in order to establish a continuity in land uses and designs while providing a comprehensive network of infrastructural facilities and systems. In addition, a project district may only be established if the proposed district: (1) Is consistent with the intent and purpose of this chapter and the County general plan; and (2) Will not result in a substantial adverse impact upon the surrounding area, community or region. Section 25-642. Minimum land area required. The minimum land area required for a project district shall be fifty acres. Section 25-643. Permitted uses. Any uses permitted either directly or conditionally in the RS, RD, RM, RCX, CN, CG, CV or V districts shall be permitted in a project district; provided, that each of the proposed uses and the overall densities for residential and hotel uses shall be contained in a master plan for the project district and in the project district enabling ordinance. Section 25-6-44. Application for project district; requirements. (a) An application for a project district may be filed by a property owner or any other person with the property owner's consent. The application shall be on a form prescribed for this purpose by the director and shall be accompanied by: (1) A filing fee of $5,000. (2) A description of the property in sufficient detail to determine its precise location. (3) A master conceptual plan of the property, showing the project district boundaries and the land uses and acreage of land involved. (4) A description of the proposed project district, including land uses, densities, infrastructural requirements, and development standards. (5) A description of each of the open space areas proposed for the project district for cultural and/or environmental purposes, including those open space areas preserved because of natural hazards. (6) A metes and bounds description of the property prepared by a surveyor. (7) A list of the names, addresses and tax map key numbers for those property owners and lessees of record of surrounding properties who are required to receive notice under section 25-2-4. (8) A county environmental report; provided that a county environmental report shall not be required where an environmental impact statement or an environmental assessment and negative declaration have been prepared and issued in compliance with chapter 343, Hawaii Revised Statutes, as amended. (9) Any other plans or information required by rules adopted by the director in accordance with chapter 91, Hawaii Revised Statutes. (b) Within ten days after filing an application for a project district, the applicant shall serve notice of the application on surrounding owners and lessees of record as provided by section 25-2-4. (c) Within one hundred twenty days after a project district application has been accepted by the director, the director shall forward the application to the commission, together with the director's recommendation on the proposed project district, and together with a proposed project district ordinance which establishes the project district and provides project district standards and conditions, including permitted land uses, accessory uses, densities, heights, setbacks, and variances from the requirements of this chapter, and from chapter 23 (subdivision control), if applicable, as contained in the master conceptual plan for the project district. (d) The commission shall review any. project district application and shall forward its recommendation on the application to the council through the mayor for the council's consideration and action. (1) In reviewing the application, the commission shall hold at least one public hearing in the district in which the proposed project district is located. The commission shall provide reasonable notice of the date of the hearing to the applicant. The commission shall also publish notice of the hearing in accordance with the requirements of this chapter. (2) Within ten days after receiving notice of the date of the public hearing, the applicant shall serve notice of the hearing on surrounding owners and lessees of record as provided by section 25-2-4. The applicant shall also serve notice on owners and lessees of record of interests in other properties which the commission may find to be directly affected by the proposed project district. (3) Within ninety days after receipt of the application from the director, unless a longer period is agreed to by the applicant, the commission shall transmit the proposed project district ordinance together with its recommendation thereon through the mayor to the council. The commission shall recommend approval in whole or in part, with or without modifications, or rejection of such proposal. Section 25-645. Conditions imposed on project district. (a) The council may impose conditions on the use of the property subject to the project district, provided the council finds that the conditions are: (1) Necessary to prevent circumstances which may be adverse to the public health, safety and welfare; or (2) Reasonably conceived to fulfill needs directly emanating from the land uses proposed with respect to protection of the public from the potentially deleterious effects of the proposed uses, or fulfillment of the need for public service demands created by the proposed uses. (b) In addition to the conditions described in subsection (a), the council shall include the following conditions in any project district ordinance: (1) A description of each of the uses proposed in the project district; (2) The overall densities for the residential and hotel uses established in the project district; (3) Any infrastructure requirements for the project district; and (4) Any open space requirements for the project district. Section 25-646. Review and approval of site plans. (a) After adoption of a project district enabling ordinance, the applicant shall submit to the director detailed site plans for the project district development. The site plans shall conform to the project district enabling ordinance and shall include the following: (1) Plans for required infrastructure improvements; (2) All items required for a plan approval application, as provided by section 25-2-72; and (3) Any other information required by rules adopted by the director in accordance with chapter 91, Hawaii Revised Statutes. M (b) Within sixty days after acceptance of the site plans, the director shall either deny or approve the plans. (c) The director may approve site plans for a project district only if the applicant has complied with all of the conditions contained in the project district enabling ordinance and the site plans conform to the standards contained in the project district enabling ordinance. The director may approve the site plans subject to conditions, or the director may approve the site plans subject to certain changes when, in the director's opinion, such conditions or changes are necessary to carry out the purposes of the project district, this chapter and the considerations contained in section 25-6-47. (d) If the director fails to render a decision on the site plans within the prescribed period, the site plans shall be considered approved without further certification by the director. Section 25-647. Review criteria and conditions of approval. In reviewing site plans for a project district, the director shall consider the proposed development and uses in relation to the surrounding properties, improvements, streets, traffic, community characteristics, and natural features, and may require conditions or changes to assure: (1) Adequate light and air, proper siting and arrangements of all structures and improvements are provided; (2) Existing and prospective traffic movements will not be hindered; (3) Proper landscaping is provided that is commensurate with the development or use and its surroundings; (4) Unsightly areas are properly screened or eliminated; (5) Adequate off-street parking is provided to serve the development or use; (6) Access to the parking areas will not create potential accident hazards; and (7) Within reasonable limits, any natural and man-made features of community value are preserved. Section 25-6-48. Construction in conformity with approved site plans. Every structure, development and use contained in site plans for a project district approved by the director shall be constructed and developed in accordance with the terms, specifications and conditions of approval for those site plans. Section 25-6-49. Plan approval issued by approval of site plans. Plan approval shall be considered issued when site plans for a project district are approved by the director, as provided by sections 25-6-46 and 25-6-47, and no further action is required for the issuance of plan approval under this chapter. Section 25-649.1. Amendments. Any amendment to the conditions and standards contained in a project district enabling ordinance shall be processed in the same manner as the project district enabling ordinance, unless the council in the project district enabling ordinance authorizes the amendments to be made by the director. A request for any amendment shall be submitted in writing to the director, in lieu of the application required for a project district. The request shall be accompanied by a filing fee of $250. Section 25-6-49.2. Appeal of director's actions on project district site plans. Any person aggrieved by the decision of the director in the issuance of a decision regarding project district site plans may appeal the director's action to the board of appeals, in accordance with its rules, within thirty days after the written decision is issued by the director. E0 WATER AGREEMENT THIS AGREEMENT, made this day ofy U N E 1999, by and between K -W KAU, LLC, a California limited liability company, whose address is 9601 Wilshire Boulevard, Suite 200, Beverly Hills, California 90210 ("K -W Kau"), K -W KOHANAIKI, LLC, a California limited liability company, whose address is 9601 Wilshire Boulevard, Suite 200, Beverly Hills, California 90210 ("K -W Kohanaiki"), and the WATER COMMISSION of the COUNTY OF HAWAII, whose address is 25 Aupuni Street, Room 103, Hilo, Hawaii 96720 (the "Commission"); WITNESSETH: WHEREAS, K -W Kau is the owner of that certain parcel of land located at Kau, North Kona, County of Hawaii, State of, TMK (3) 7-2-5-1 (the "Kau Property"); and WHEREAS, Nansay Hawaii, Inc., a Hawaii corporation, is the current owner, and K -W Kohanaiki is the current first mortgagee, of that certain parcel of land located at Kohanaiki, North Kona, County of Hawaii, State of Hawaii, TMK (3) 7-3-9-3 and 16 (the "Kohanaiki Property"); and WHEREAS, the Commission desires to obtain wells in the North Kona area for the -development of potable water as well as the land upon which such wells are located; and WHEREAS, K -W Kau or its predecessor in title has completed the drilling, casing and testing of two (2) wells for the development of potable water, designated as Well No. 1 (State No. 4458-01) ("Well No. 1") located on the portion of the Kau Property shown on Exhibit "A" attached hereto and incorporated herein by this reference (the "Well No. 1 Well Site") and Well No. 2 (State No. 4458-02) ("Well No. 2") located on the portion of the Kau Property shown on said Exhibit "A" ("Well No. 2 Well Site")( Well No. 1 and Well No. 2 being hereinafter collectively referred to as the "wells", and Well No. 1 Well Site and Well No. 2 Well Site being collectively referred to as the "Well Sites"); and . WHEREAS, the key dimensions and other relevant data and a chemical analysis of the Wells is attached hereto as Exhibit "B"; and EXHIBIT A:\xn28WIN1.AGJ\i WHEREAS, K -W Kau and K -W Kohanaiki intend to develop the Kau Property (the "Kau Development") and the Kohanaiki Property (the "Kohanaiki Development"), respectively, including but not limited to K -W Kau subdividing the Well Sites into separate legal lots, and in connection therewith, will construct a water system, including the Wells, meeting the requirements of the Rules and Regulations and Water System Standards ("Standards") of the Department of Water Supply ("DWS"), which are incorporated herein by reference, to facilitate domestic water service and fire protection for the Kau Property and the Kohanaiki Property, which water system, land and necessary easements will be conveyed to the Commission; and WHEREAS, in connection with the Kau Development and the Kohanaiki Development, K -W Kau and K -W Kohanaiki desire to obtain from the Commission water commitments for the Kau Propebty and the Kohanaiki Property; and WHEREAS, in exchange for the water commitments for the Kau Property and the Kohanaiki Property, K -W Kau and K -W Kohanaiki desire to convey to the Commission fee simple title to the Wells and the Well Sites; NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. CONVEYANCE OF WATER SYSTEMS. 1.1. KAU WATER SYSTEM. K -W Kau hereby agrees, to the extent that it then owns any interest in the Kau Water System as hereinafter defined, to convey to the Commission, with customary warranties of title, the fee simple title to Well No. 2, the Well No. 2 Well Site, and the improvements described in paragraphs 3.1.1.a, 3.1.1.b and 3.1.1.c, in a condition reasonable satisfactory to the Commission, subject to the encumbrances set forth in Exhibit "C" attached hereto and incorporated herein by this reference (collectively the "Kau Water System"), upon completion of the subdivision of the Well Sites and the Kau Water System. 1.2. KOHANAIKI WATER SYSTEM. K -W Kohanaiki agrees, to the extent that it then owns any interest in the Kohanaiki Well - 2 - A:\NATe"ANI.AGJ\] System, as hereinafter defined, to convey to the Commission, with customary warranties of title, the fee simple title to Well No. 1, the Well No. 1 Well Site, and the improvements described in paragraph 4.1.1, in a condition reasonable satisfactory to the Commission, subject to the encumbrances set forth in said Exhibit "C" (collectively the "Kohanaiki Water System"), upon completion of the subdivision of the Well Sites and the Kohanaiki Water System. 2. WATER COMMITMENTS. 2.1. KAU COMMITMENT. The Commission hereby agrees that, upon the execution of this Agreement by the Commission and K -W Kau, K -W Kau shall be entitled to and the Commission shall issue a water commitment in the amount of three hundred forty- three (343) equivalent units ("EU"), at six hundred (600) gallons per day per EU (the "Kau Commitment"), which Kau Commitment shall be allocated to and appurtenant to the Kau Property; provided that there shall be no right to have water distributed to the Kau Property until the Kau Water System is conveyed to the Commission as set forth in paragraph 1 above. 2.2. KOHANAIKI COMMITMENT. The Commission agrees that, upon the execution of this Agreement by the Commission and K -W Kohanaiki, K -W Kohanaiki shall be entitled to and the Commission shall issue a water commitment in the amount of One Thousand Nine Hundred Seven (1,907) EU, at six hundred (600) gallons per day per EU (the "Kohanaiki Commitment"), which Kohanaiki Commitment shall be allocated to and appurtenant to the Kohanaiki Property and any contiguous parcels that may be acquired and developed as part of the Kohanaiki Development; provided that there shall be no right to have.water distributed to the Kohanaiki Property until the Kohanaiki Water System is conveyed to the Commission as set forth in paragraph 1 above. 2.3 EXPIRATION OF COMMITMENTS. The Kau Commitment and the Kohanaiki Commitment shall each continue in effect for a period of twenty years from the execution date of this Agreement, subject to the terms of this Agreement, and shall expire, unless extended as set forth herein, without any further notice or action by the parties in the event that the Kau Water System with respect to the Kau Commitment and the Kohanaiki Water System with respect to the Kohanaiki Commitment are not completed at the end of such twenty year period. If K -W Kau or K -W Kohanaiki, or their respective successors, desire to extend the life of the 3 A:\NA2'6RIMS.A 3\3 unused Kau Commitment and/or the Kohanaiki Commitment, such commitments may be extended on an annual basis by paying a deposit in an amount equal to that required under the terms of the prevailing DWS Water Commitment Guidelines Policy generally in effect at that time and comply with all then currently applicable DWS Water Commitment Guidelines Policy not inconsistent with this Agreement. Any deposit paid shall be credited to the Facilities Charges. 3. KAU COMMITMENT. The Kau Commitment shall be utilized by K -W Kau for the Kau Development. 3.1. CONDITIONS TO KAU COMMITMENT. 3.1.1. CONSTRUCTION OF IMPROVEMENTS. K -W Kau hereby agrees that it shall construct or cause to be constructed the following improvements: a. Well No. 2 will be outfitted with a 700 GPM submersible pump and motor (including motor controls, telemetry, chlorination, control building and other appurtenances designed and constructed to the DWS's Standards) designed to deliver water to the DWS's existing 0.30 MG Puukala tank located as shown on Exhibit "D" attached hereto and incorporated herein by this reference. b. A 12 -inch dedicated transmission line will be installed from Well No. 2 to the Puukala tank. C. The water system on the Kau Property, consisting of two storage tanks, pipelines and PRV stations, shall be designed and constructed to DWS's Standards. 3.1.2. CONVEYANCE OF IMPROVEMENTS. The Kau Water System above, together with any pertinent easements, shall be dedicated to the Commission, upon completion of the subdivision of the Well Sites and the Kau Water System. 3.1.3. BONDING OF IMPROVEMENTS. Within one hundred eighty days of the execution date of this Agreement, K -W - 4 - A:\NASB l.A 2\4 Kau, or the purchaser of the Kau Property upon sale of the Kau Property, shall obtain a bond guaranteeing the completion of the Kau Water System, in a form substantially similar to the form attached hereto as Exhibit "E" and in an amount reasonably satisfactory to the Commission, from a bonding company qualified and licensed to do business in the State of Hawaii with a rating of not less than B+. Said bond shall name the Commission as an obligee. 3.2. FACILITIES CHARGES; CAPITAL ASSESSMENT FEE. The Kau Commitment shall be provided by the Commission without payment of any Facilities Charges in exchange for the conveyance to the Commission of the Kau Water System. The Capital Assessment Fee is waived because of the development of the water source by K -W Kau. 3.3. KAU GOLF COURSE. The Commission hereby -agrees that a portion of the Kau Commitment may be used as a supplemental source of irrigation supply for the golf course to be constructed on the Kau Property and that water for golf course irrigation shall be purchased from the Commission at its highest block rate. At the end of the first five (5) full years of operating the golf course, the Commission and the golf course operator shall re-evaluate the use of potable water for golf course irrigation and shall establish a permanent allocation of a portion of the Kau Commitment for golf course irrigation at the Kau Property. 4. KOHANAIKI COMMITMENT. The Kohanaiki Commitment shall be utilized by K -W Kohanaiki for the Kohanaiki Development. 4.1. CONDITIONS TO KOHANAIKI COMMITMENT. The Kohanaiki Commitment shall be subject to the following conditions: 4.1.1. CONSTRUCTION OF IMPROVEMENTS. K -W Kohanaiki hereby agrees that it shall construct or cause to be constructed the following improvements: a. Construction of a water system, meeting the DWS's Standards, to provide domestic water service and fire protection to the Kohanaiki Property, including without limitation the outfitting of Well No. 1 with a 700 GPM submersible pump -s- and motor (including motor controls, telemetry, chlorination, control building and other appurtenances designed and constructed to the DWS's Standards) designed to deliver water to the DWS's existing 0.30 MG Puukala tank located as shown on Exhibit "D" attached hereto; and b. Construction of improvements, meeting the DWS's Standards, to transmit water to the Kohanaiki Property by one of the following routes: i. HINALANI DRIVE. Construction of improvements from DWS's Puukala tank south along Mamalahoa Highway to Hinalani Drive, but bypassing the Kalaoa booster station. This route requires additions to the mauka-to-makai transmission system along Hinalani Drive which are the obligations of third parties who are not parties to this Agreement, but also must be completed. ii. QUEEN KAAHUMANU HIGHWAY. Construction of improvements through the Kau Property to a storage tank near the makai end of the Kau Property at an elevation specified by the Commission, and extension of a pipeline from the storage tank down to and along Queen Kaahumanu Highway to the DWS water system. This route requires easements and rights over and across the Kau Property. 4.1.2. CONVEYANCE OF IMPROVEMENTS. The Kohanaiki Water System above, together with any pertinent easements, shall be dedicated to the Commission, upon completion of the subdivision of the Well Sites and the Kohanaiki Water System. 4.1.3. WELL NO. 2. 782 EU of the Kohanaiki Commitment will be immediately available for use upon the outfitting of Well No. 2 described in paragraph 3.1.1.a above and - 6 - A:\MATHR1d1_AG3\b the completion of the improvements described in paragraph 4.1.1 above to the reasonable satisfaction of the Commission. 4.1.4. WELL NO. 1. 1,125 EU of the Kohanaiki Commitment is allocated from Well No. 1. In the event Well No. 1 has not been outfitted at the time K -W Kohanaiki requests use of this portion of the Kohanaiki Commitment, the Commission, at its discretion, may require K -W Kohanaiki to outfit Well No. 1 in conformance with the DWS's Standards in order to receive use of that portion of the Kohanaiki Commitment. Upon the satisfactory outfitting of Well No. 1 and the completion of the improvements described in paragraph 4,1.1 above, to the reasonable satisfaction of the Commission, K -W Kohanaiki shall be entitled to receive the applicable waivers from the prevailing Facilities Charges for that portion,of the Kohanaiki Commitment for facilities contributed by K -W Kohanaiki. 4.1.5. USE OF WATER COMMITMENTS WITHOUT WELLS. Subject to the Commission's prior approval and the availability of water from other DWS sources, K -W Kohanaiki may in addition obtain water commitments from other sources provided there is transmission capacity in the DWS water system, as determined by the Commission in its reasonable discretion, for the delivery of water from other sources to the Kohanaiki Property and K -W Kohanaiki pays the prevailing Facilities Charges. 4.2. FACILITIES CHARGES; CAPITAL ASSESSMENT FEE. K -W Kohanaiki shall pay the Facilities Charges for the Kohanaiki Commitment at the Commission's then prevailing rates with a twenty-two percent (22*) waiver for drilling and casing of wells, which have been completed, and, except as specifically provided in paragraph 4.1.5. above, any other applicable waiver for facilities contributed by K -W Kohanaiki. The Capital Assessment Fee is waived because of the development of the water source by K -W Kohanaiki. 4.3. KOHANAIKI GOLF COURSE. The Commission hereby agrees that up to 500 EU, or 300,000 GPD, of the Kohanaiki Commitment may be used as a supplemental source of irrigation supply for a golf course to be constructed on the Kohanaiki Property and that water for golf course irrigation shall be purchased from the Commission at its highest block rate. At the end of the first five (5) full years of operating the golf course, the Commission and the golf course operator shall re-evaluate the use of potable water for golf course irrigation and shall - 7 - A:\MAS 1.A 3\7 establish a permanent allocation of a portion of the Kohanaiki Commitment for golf course irrigation at the Kohanaiki Property. 5. RIGHT OF FIRST REFUSAL AND OPTION TO COMPLETE WELLS. 5.1. COMMISSION'S OPTION TO COMPLETE WELLS. 5.1.1. WELL NO. 2. In the event that the Commission has a bona fide desire to complete the installation of equipment and facilities to render Well No. 2 fully operational, the Commission shall first give written notice by registered mail to K -W Kau and K -W Kohanaiki stating the Commission's bona fide desire or intention to so complete Well No. 2 (the "Notice"). Upon receipt of the Notice, K -W Kau and K -W Kohanaiki shall have the first right, privilege and option to complete Well No. .2, at its cost and expense. K -W Kau and/or K -W Kohanaiki must exercise their right by written notice to the Commission within 'thirty (30) days after their receipt of the Notice from the Commission, whereupon K -W Kau and/or K -W Kohanaiki shall have the exclusive right to complete Well No. 2, and the Commission shall not have the right to complete Well No. 2. In the event that K -W Kau and/or K -W Kohanaiki shall fail to deliver its written notice to the Commission within such 30 -day period, their rights under this Paragraph 5.1.1 shall expire and be of no further force or effect, and K -W Kau shall convey Well No. 2 and the Well No. 2 Well Site to the Commission. 5.1.2. WELL NO. 1. In the event that the Commission has a bona fide desire to complete the installation of equipment and facilities to render Well No. 1 fully operational, the Commission shall first give written notice by registered mail to K -W Kohanaiki stating the Commission's bona fide desire or intention to so complete Well No. 1 (the "Notice"). Upon receipt of the Notice, K -W Kohanaiki shall have the first right, privilege and option to complete Well No. 1, at its cost and expense. K -W Kohanaiki must exercise its right by written notice to the Commission within thirty (30) days after its receipt of the Notice from the Commission, whereupon K -W Kohanaiki shall have the exclusive right to complete Well No. 1, and the Commission shall not have the right to complete Well No. 1. In the event that K -W Kohanaiki shall fail to deliver its written notice to the Commission within such 30 -day period, its rights under this Paragraph 5.1.2 shall expire and be of no further .force or effect, and K -W Kohanaiki shall convey Well No. 1 and. the Well No. 1 Well Site to the Commission. - e - A: \NAi6RICM1. AGl\8 5.2. K -W KAU'S AND K -W KOHANAIKI'S OPTION TO COMPLETE WELLS. 5.2.1. WELL NO.2. At any time before receipt of the Commission's Notice, K -W Kau and/or K -W Kohanaiki shall have the option to complete the installation of the equipment and facilities to render Well No. 2 fully operational, by giving written notice to the Commission of their election to do so. In such event, K -W Kau and/or K -W Kohanaiki shall have the exclusive right to complete Well No. 2, at their cost and expense, and the Commission shall not have the right to complete Well No. 2 as set forth in paragraph 5.1.1 above. K -W Kau's and K -W Kohanaiki's rights under this paragraph 5.2.1 are in addition to, and not in substitution of, their rights set forth in paragraph 5.1.1 above. 5.2.2. WELL N0.1. At any time before receipt of the Commission's Notice, K -W Kohanaiki shall have the option to complete the installation of the.equipment and facilities to render Well No. 1 fully operational, by giving written notice to the Commission of its election to do so. In such event, K -W Kohanaiki shall have the exclusive right to complete Well No. 1, at its cost and expense, and the Commission shall not have the right to complete Well No. 1 as set forth in paragraph 5.1.2 above. K -W Kohanaiki's rights under this paragraph 5.2.2 are in addition to, and not in substitution of, its rights set forth in paragraph 5.1.2 above. 5.3 COMPLETION OF IMPROVEMENTS. In the event that K -W Kau and/or K -W Kohanaiki exercise said option to complete Well No. 2 and/or Well No. 1 upon receipt of the Notice, K -W Kau with respect to Well No. 2 and K -W Kohanaiki with respect to Well No. 1 shall commence the planning for such improvements within ninety days of the date of exercise of said option and shall proceed with due diligence to complete the planning and construction of such improvements. Performance bonds shall be obtained for any construction contracts entered into by K -W Kau or K -W Kohanaiki for such improvements. The Commission shall be a named obligee under such performance bonds, which shall have a rating of not less than B+. If K -W Kau or K -W Kohanaiki shall fail to commence the planning or complete such planning and improvements after exercising the option as set forth above, the Commission shall have the right to exercise its rights under the performance bonds or take such other commercially reasonable action to complete such planning and construction. In the event - 9 A:\NATE l.A 3\9 that the Commission completes the improvements as aforesaid, K -W Kau or K -W Kohanaiki, respectively, shall cooperate fully to effect the subdivision of the Well Sites and conveyance of the Wells and Well Sites and any necessary easements. In the event that the Commission completes the improvements as aforesaid, K -W Kau or K -W Kohanaiki, respectively, shall not be excused from paying Facilities Charges at the then prevailing rates for the use of the commitments associated with the Wells but shall be entitled to a twenty-two (22k) waiver for drilling and casing of wells but no other waivers. 6. REDUCTION OF PUMPING CAPACITY. If, at any time before ten thousand (10,000) hours of pumping of either Well No. 1 or Well No. 2 (as determined by the respective Running Time Meters located on the Wells), the chloride level increases to a level greater than 180 parts per million or the quality of the water in Well No. 1 and/or Well No. 2 otherwise deteriorates oris otherwise deemed unacceptable by the Commission, based on the primary and secondary contaminant levels specified by the U.S. Environmental Protection Agency and the State of Hawaii Department of Health (the "Standard Water Quality Level"), the Commission shall so notify K -W Kau and K -W Kohanaiki of such a decrease in the water quality of Well No. 1 and/or Well No. 2 in a writing containing certified results of a water quality test or study (performed according to customary industry standards). In such event, the amount of the Commitment shall be reduced in proportion (taking both Wells into consideration) to the reduction in well pumping capacity necessary to maintain an acceptable quality of water pumped by the particular well. For example, if the water quality of Well No. 1 decreases such that only 500,000 gallons (rather than 1,000,000 gallons) can be pumped from Well No. 1 in order to maintain the water quality level at the Standard Water Quality Level, and 1,000,000 gallons can be pumped from Well No. 2 which is unaffected, then a total of 1,500,000 gallons can be pumped (rather than 2,000,000 gallons) and the Kau Commitment and the Kohanaiki Commitment will each be reduced by one-fourth. If the Commission reasonably deems it necessary, K -W Kau and/or K -W Kohanaiki, as applicable, shall at their expense modify or replace the pump bowl assembly at the applicable well in order to produce water at the reduced flowrate. Notwithstanding the foregoing, K -W Kau and/or K -W Kohanaiki may propose treatment of the water or provision of another water source and/or system acceptable to the Commission to maintain all or a greater amount of the affected portion of the Commitment. If A: \NAS6R]LW1.AG3\10 approved by the Commission, there shall be no reduction in the flowrate of the Wells and K -W Kau and/or K -W Kohanaiki, as applicable, shall at their expense design, construct and undertake such alternate treatment or provision and shall convey all additional facilities to the Commission. 7. ASSIGNABILITY. The rights and water commitments under this Agreement may be transferred as follows: 7.1. K -W Kau and K -W Kohanaiki shall have the right, upon written notice to but without the approval or consent of the Commission, to assign their respective rights and interests, or portions thereof, in the Kau Commitment and/or the Kohanaiki Commitment and this Agreement to the extent related thereto, to their respective successors in interest in the Kau Property (and the Kau Development) and the Kohanaiki Property (and the Kohanaiki Development), including without limitation the individual purchasers of lots or other interests in the Kau Property or the Kohanaiki Property, and have such successors assume the obligations with respect to such assigned rights and interests, in which event K -W Kau and/or K -W Kohanaiki shall be released from such obligations; provided, however, that this Agreement and the Commitment may be assigned only for the benefit of, and used only in connection with the Kau Property, the Kohanaiki Property, parcels developed as part of the Kohanaiki Development and the property described in Exhibit "F", except as provided in Paragraph 7.2 below. 7.2. Notwithstanding anything to the contrary stated in paragraph 7.1 above, K -W Kohanaiki, and its successors, shall have the right, after completion of the Kau Water System and the Kohanaiki Water System, upon written notice to but without the approval or consent of the Commission, to transfer any unused portion of the Kohanaiki Commitment to other properties within the areas identified by cross -hatching on the map attached hereto as Exhibit "F", provided that K -W Kohanaiki, or the transferee of such portion of the Kohanaiki Commitment, completes all transmission lines and storage reservoirs necessary to provide adequate pressure and delivery for domestic service and fire protection to such other properties in accordance with DWS's Standards. K -W Kohanaiki, or its successor, shall be entitled to charge transferees of portions of the Kohanaiki Commitment no more than a prorata portion of the Total Development Cost. The Total Development Cost shall include, but not be limited to, the cost of purchasing the Wells and Well Sites, constructing improvements, A: \MAiHR1LM1.AGl\ 11 marketing costs and financing costs (which financing costs shall not exceed the prime rate of the Bank of Hawaii, or its successor, at the time of transfer plus ten percent). The prorata portion of Total Development Cost shall be determined by dividing the Total Development Cost by 1,907 EU units. The Transferor shall make available to the Commission records of any transfers of the Kohanaiki Commitments for purposes of verifying the aforesaid charges. 7.3. Notwithstanding anything to the contrary stated in this Agreement, in the event K -W Kau fails to complete the outfitting of Well No. 2 and the other improvements described in paragraph 3.1 above, K -W Kohanaiki shall have the option, but not the obligation, upon written notice to the Commission, to complete such improvements on behalf of K -W Kau under the same terms and conditions of this Agreement that would apply to K -W Kau. 7.4. The Commission shall not have the right to assign or otherwise transfer this Agreement, or the Commission's rights hereunder, without the prior written consents of K -W Kau and K -W Kohanaiki which consents shall not be unreasonably withheld or delayed. 8. AMENDMENT. The terms of this Agreement may be amended only by a written instrument executed by K -W Kau, K -W Kohanaiki and the Commission which sets forth the amendments. 9. APPLICABLE LAW. This Agreement shall be governed by the laws of the State of Hawaii and applicable federal statutes and rules both as to interpretation and performance. 10. ARBITRATION. The parties hereby consent in advance that, at the election of any party in writing, any dispute arising out of or connected with this Agreement, or any alleged breach thereof, including any dispute as to any amount owed, any act of performance or nonperformance or any interpretation under this Agreement, shall be settled by arbitration in accordance with the rules then prevailing of the American Arbitration Association for Commercial Disputes. The results of any arbitration shall be final and binding upon the parties, and judgment thereunder may be entered in any court of competent jurisdiction in accordance with Chapter 658, Hawaii Revised Statutes, as amended. - 12 - A:\MATE 1.AG3\12 11. BINDING EFFECT. Upon its execution by each party, this instrument shall become binding and enforceable according to its terms. The rights and obligations of each party named in this instrument shall bind and inure to the benefit of each party and their respective successors and assigns. 12. COOPERATION. The parties shall cooperate with each other in every way and will exercise their best efforts in carrying out the transactions contemplated herein, in obtaining all required approvals, authorizations, and clearances, and in executing and delivering in recordable form all documents, instruments, or copies thereof or other information deemed reasonably necessary or useful by the other parties. 13. ENFORCEMENT COSTS. .If any legal action or other proceeding, including arbitration, is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys' fees, court costs and all expenses even if not taxable as court costs, incurred in such action or proceeding, in addition to any other relief to which such party or parties may be entitled. 14. ENTIRE AGREEMENT. This Agreement embodies the entire agreement of the parties and supersedes all other agreements or understandings with respect to the subject matter hereof that may ever have existed between the parties. 15. JURISDICTION; VENUE. The jurisdiction and venue for any and all arbitrations or lawsuits if any, shall be the Island and County of Hawaii, State of Hawaii. 16. SUPERSEDES PRIOR AGREEMENT. This Agreement replaces and supersedes the Water Agreement dated April 23, 1996, made by and between Nansay, Makalei Plantations, Inc., and the Commission regarding water commitments for the Kau Property. 17. COUNTERPARTS; FACSIMILE COPIES. This document may be executed in counterparts. Each counterpart shall be executed by one or more of the parties to this document and the several counterparts shall constitute one document to the same effect as though the signature of all the parties were upon the same document. Facsimile copies shall be deemed to be originals. - 13 - A:\MI.IBAANI.AG]\1] 18. CONDITION PRECEDENT. This Agreement is subject to the condition precedent that both the sale of the Kau Property by K -W Kau to Hiluhilu Development LLC or its assignee close and the consent to this Agreement be executed by Nansay Hawaii, Inc. on oz before June 30, 1999. If such condition precedent is not satisfied, and is not waived by K -W Kau and K -W Kohanaiki, then this Agreement shall terminate, unless the Commission and K -W Kau agree in writing otherwise. Upon termination, this Agreement shall be of no force and effect and each party shall be discharged from any further liability hereunder. - 14 - A:\MATSRRMl.u3\14 IN WITN SS WHLRLCF, the parties hereto have executed these presents on the day and year first above written. Its Member Its Member WATER COMMISSION of the COUNTY OF HAWAII 5y !/ s APPROVED AS TO FORM AND LEGALITY Deputy C6--p6i�at_on-�r-ounsel APPROVAL sy Dep a -toren o Water Supply DEPARTMENT OF PUBLIC WORKS COUNTY OF HAWAII HILO, HAWAII DATE:October 24, 2005 TO Christopher J. Yuen, Planning Director Planning Department FROM Galen M. Kuba, Division Chief [ V .,Engineering Division SUBJECT Change of Zone Application (REZ 05-010 ) Applicant: Hiluhilu Development, LLC Location: Kau, N. Kona, HI TMK: 3 / 7-2-005:001 We reviewed the subject application and our comments are as follows: DRAINAGE All development generated runoff shall be disposed of on-site and shall not be directed toward any adjacent properties. 2. The applicant shall be informed that if they include drywells in the subject development, an Underground Injection Control (UIC) permit may be required from the Department of Health, State of Hawaii. 3. A drainage study shall be prepared, and the recommended drainage system shall be constructed meeting with the approval of DPW. EARTHWORK All earthwork and grading shall conform to Chapter 10, Erosion and Sediment Control, of the Hawaii County Code. 2. 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. m TRAFFIC DPW reviewed the Traffic Impact Analysis Report (TZAR) dated July 11, 2005. We take no exceptions with the recommended improvements and defer to the TZAR and the Department of Transportation for locations of and required improvements to intersections on Queen Kaahumanu Highway and Mamalahoa Highway (subject to Hawaii County is an Equal Opportunity Provider and Employer b I- 1 q CS Memo to PD -RF105-010 October 24, 2005 P. 2 of 5 DPW review of the County street connections). However, we are concerned that the alternate routes (Mid-level Arterial and other north south collectors) recommended by the Keahole to to Kailua Development Plan and the Keahole to Honaunau Regional Circulation Plan and the Hawaii Long Range Transportation Plan are presumed be completed by "others." Environmental studies have not been done and they are yet to be programmed. ROADWAYS All roadways within the proposed development shall follow the guidelines incorporated in the Hawaii Statewide Uniform Design Manual for Streets and Highways or A Policy on Geometric Design of Highways and Streets. These roadways shall also meet the requirements of DPW. Concrete curbs, gutters, and sidewalks should be required in areas of pedestrian traffic. Install street lights, signs and markings meeting with the approval of the DPW, Traffic Division. 2. Vehicular access to the individual lots shall not be from any major collector or arterial roadways. 3. The applicant should design and construct; all roadways in conformance with the Keahole to Kailua Development Plan (K to K Plan) as adopted by Council Resolution 296-91, and the County General Plan as adopted by Council Ordinance 05.25. These roadways shall be open to public traffic and be dedicated to the County upon request. 5. Any utility poles in the road right-of-way shall be installed as shown on DPW Standard Detail R-35 (Revised). The applicant shall provide any necessary easements for installation of such utilities. According to Hawaii County Code Section 25-6-45(b), the project district ordinance must include the required infrastructure as conditions of approval. The applicant should be required to develop a street plan consistent as practicable with the K to K Roadway Plan and the Hawaii County General Plan. The applicant's Master Plan, as shown, conflicts with the K to K plan in various ways including nomenclature and alignment. For all required on and offsite roadway improvements, the applicant should provide assurance to the extent practicable, that roadways as planned can be provided in conformance to State Land Use Commission Decision and Order, the Federal Environmental Impact Study, the recommendations of an updated Traffic Impact Analysis Report (if required) and a street plan approved by the Planning Director in consultation with the Department of Public Works, prior to approval of the subject zoning amendment. We have the following comments on the application as submitted with suggested conditions of approval. Since the Project District Application contains no discussion of phasing, we defer to the Planning Director on the programming of the required Hawaii County is an Equal Opportunity Provider and Employer Memo to PD -REZ 05-010 October 24, 2005 P. 3 of 5 improvements, assuming conformance with an (updated) TZAR and the Federal Environmental Impact Study: The K to K plan recommends the Mid-level arterial and collector streets be planned for multiple lanes to provide for future transportation demands through the subject property. The applicant should provide the necessary right-of-way to accommodate the future lane needs with bike lanes and any additional tum lanes at intersections and access points (or provide the stated uniform right-of-way width). Utility corridors and easements, exclusive of the right-of-way may be needed, depending on the timing of installation. Applicant's Proposed Main Street/Ane Keohokalole Highway (K to K Plan Mid - Level Arterial) -Arterial The Mid Level Arterial is a 120- foot wide divided 4 to 6 -lane street in the K to K Plan. The application proposes to construct a 2 -lane public road to serve as a north -south collector from Kaiminani Drive to the subject parcel. Main Street as shown on the applicant's Master Conceptual Plan (Figure 4-1) and Palamanui/UH Master Plan, terminates at the project's southern boundary with a T -intersection, is offset makai and then continues through the subject property. The through street is shown approximately 1000 feet makai of the alignment proposed in the K to K and K to H Plans for Mid -Level Road (Ane Keohokalole Highway). We have concerns about the proposed makai offset through the Palamanui site. The alignment shown in the subject application is not desirable for an arterial. The offsite alignment will cost more to connect and complete in the future because of the added length. The applicant's Main Street/Ane Keohokalole Highway (K to K Plan Mid -Level Arterial) shall be graded to a dedicable 120 -foot wide cross section through the subject property to subgrade at a location and alignment meeting with the approval of the Planning Director in consultation with the Department of Public Works. The applicant shall construct the mauka half -street section (60 -foot wide cross section) within a 120 -foot wide right-of-way for extension of Ane Keohokalole Highway to dedicable standards from Kaiminani Drive to and through subject property meeting with the approval of the Department of Public Works. Applicant's Midlevel Road/Kapuahi Street Extension (K to K Plan Waena Drive) Collector The Midlevel Road as depicted in the applicant's Master Conceptual Plan, is Waena Drive in the K to K Plan and will connect (by others) to Kapuahi Street from Kona Palisades Subdivision. Waena Drive in the K to K Plan is an 80 -foot wide collector Street. The applicant's Midlevel Road/Kapuahi Street Extension/(Waena Drive per K to K) collector shall be improved to a dedicable 88- foot wide cross-section with two travel lanes, a median and concrete curb and gutter and sidewalk meeting with the approval of the DPW. Kea/akae Extension - Collector Street Hawaii County is an Equal Opportunity Provider and Employer Memo to PD -REZ 05-010 October 24, 2005 P. 4 of 5 Kealakaa Extension could serve as both the north -south Kealakaa Extension collector and/or an alignment for University Drive (K to K Plan) alternate connector to Mamalahoa Highway. The applicant's Kealakaa Street Extension Collector shall be graded to a dedicable 88 - foot wide right-of-way cross-section improved as required with two travel lanes, a median and concrete curb and gutter and sidewalk meeting with the approval of the DPW. Applicant's Mauka-Makai Connector Road -Collector Street Our comments are based on the assumption the Mauka-Makai Connector Road is intended to serve as K to K Plan University Drive. The Mauka-Makai Connector Road does not appear in the Master Conceptual Plan of the application to have the appropriate alignment of a major collector as University Drive. The applicant's Mauka-Makai connector shall be constructed from Queen Kaahumanu Highway to Kealakaa Extension, with a required 88 -foot wide dedicable section with curb gutter and sidewalk, on an alignment meeting with the approval of the Planning Director. The street grade should not exceed ten percent. Should the project district street plan provide for an equivalent public mauka-makai pedestrian route or multi -use path, paved shoulders and swales could be considered in lieu of curb and gutter and sidewalk. Access to Mamalahoa Highway -Collector Street Existing Makalei Drive is proposed by the applicant to serve as the mauka-makai connection to Mamalahoa Highway. Makalei Drive was not designed or approved as a collector street. It has 18 percent grades, a fifty -foot wide right-of-way and individual lots taking direct access from it. During the subdivision process Makalei Drive was downgraded to a minor street and should not serve as a collector. We also have some doubts about the feasibility of designing an intersection at the immediate end of Makalei Drive which presently dead ends on a 15.7 percent grade. The Traffic Impact Analysis Report (TZAR) assumes access to Mamalahoa Highway will be by a new connector road to the north, bypassing Makalei Drive to be provided with Phase II of the subject development. The Project Summary states that such connection is being "actively pursued." At a minimum, the alignment should be studied and secured as a feasible connection prior to approving this project district ordinance. The right-of- way should be a minimum of 88 feet to qualify as University Drive in the K to K Plan, but the studied alignment should be wide enough to account for cut and fill slopes. Street Variances We reviewed proposed street variances presented in an a amendment to the application dated September 16, 2005. It is not made clear in the list of variances requested when compared to the conceptual roadway plans to which streets they are to be applied. The applicant states in the original application that the collector streets are to be dedicated. Further there seems to be some inference some of the variances are intended for the collector streets. The application of all variances is not explained. We Hawaii County is an Equal Opportunity Provider and Employer Memo to PD -REZ 05.010 October 24, 2005 P. 5 of 5 would need more information in order to offer specific comments. Therefore we offer the following general comments: In general, DPW is opposed to landscaped areas within dedicable street rights -of way because of the additional maintenance. In addition, street trees and other landscaping can create obstructions to sight distance and may be hazardous. Our experience with grassed swales is that they are difficult to establish and maintain on steep slopes such as exist on portions of the subject site. 2. DPW opposes sidewalks on one side of the street when both sides of the street are developed with residences or would otherwise serve as practical pedestrian routes. It is our policy to require concrete curb gutter and sidewalk when the density is equal to or greater that one unit per 10,000 sq. feet. 3. DPW opposes pedestrian walkways within the right-of-way which are not grade separated or protected from vehicles by a curb or other barrier. (See definition of sidewalk Hawaii County Code Section 22-1.2 (15). 4. DPW opposes streets which do not allow for on street parking in residential areas where adequate offstreet parking is not provided for, such as that proposed with reduced lot areas. Vertical and horizontal street alignments (grades and curves) are a function of appropriate design speed and shall be according to,sound engineering practices as found in the AASHTO Policy on the Geometric Design of Highways and Streets. Building Code Buildings shall conform to all requirements or codes and statue pertaining to building construction. The applicant should consult with our Building Division regarding setbacks, wall openings and projections. 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 Hawaii County is an Equal Opportunity Provider and Employer DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII 345 KEKOANAO'A STREET, SUITE 20 HILO, HAWAII 96720 TELEPHq E(801b9fi1.,9�50 • FAX (808) 961-8657 Aug TO: Mr. Christopher J. Yuen, Planning Director Planning Department FROM: Milton D. Pavao, Manager SUBJECT: CHANGE OF ZONE APPLICATION (REZ 05-010) REQUEST: OPEN AND A -3A TO PROJECT DISTRICT APPLICANT - HILUHILU DEVELOPMENT, LLC TAX MAP KEY 7-2-005:001 We have reviewed the subject application for the proposed Change of Zone Application and our comments are as follows. A Water Agreement dated June 15, 1999, between K -W Kau, LLC, K -W Kohanaiki, LLC, and the Water Board (formerly known as the Water Commission) of the County of Hawaii provides the Hiluhilu Development 343 equivalent units (EU) of water at a maximum of 600 gallons per day, per EU. Forty-one (4 1) units have already been granted for Phases I and II of the Hiluhilu Development. The remaining units of water will become available upon completion of Section 3. 1, "Conditions to Kau Commitment," as stated in the Water Agreement. Improvements in Section 3.1 include outfitting Well No. 2 with a 700 GPM submersible pump and providing the necessary appurtenances, a transmission line between Well No. 2 and Department of Water Supply's (DWS) Puukala Tank, and a water system on the property built to DWS's Standards. Should there be any questions, please contact Ms. Shari Komata of our Water Resources and Planning Branch at 961-8070, extension 252. S cer ly yours, Mil n . Pavao, P.E. M age SHK: sco copy - Mr. Guido Giacometti, Island Advisors, Inc. Mr. Lee Sichter, Belt Collins Hawaii s, y�1�.�°.,yam Mr. Roger Harris EXHIBIT' Mr. F. Guy Lam, Hiluhilu Development, LLC ... Water briny) rroyreJJ... g The Department of Water Supply is an Equal Opportunity provider and employer. To file a complaint of discrimination, writeUSDA, Director, Office o1 Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington DC 20250-9410. Or call (202) 720-5964 (voice and TDD) Beldofts Mr. Christopher J. Yuen, Director Planning Department County of Hawaii 101 Pauahi Street, Suite 3 Hilo, HI 96720 Dear Mr. Yuen: August 25, 2005 2005.33.3100 / 05P-297 Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development LLC Request: Open and A -3a to Project District TMK: 7-2-005:001 Response to Department of Water Supply Comments This is in response to the Department of Water Supply's (DWS) comments in a memorandum dated August 10, 2005 regarding the Palamanui Project District development: "A Water Agreement dated June 15, 1999, between K -W Kau, LLC, K -W Kohanaiki, LLC, and the Water Board (formerly known as the Water Commission) of the County ofHawai'i provides the Hiluhilu Development 343 equivalent units (EU) of water at a maximum of 600 gallons per day, per EU Forty-one (41) units have already been granted for Phases I and II of the Hiluhilu Development. The remaining units of water will become available upon completion of Section 3. 1, "Conditions to Kau Commitment, " as stated in the Water Agreement. Improvements in Section 3.1 including ou�fltting Well No. 2 with a 700 GPM submersible pump and providing the necessary appurtenances, a transmission line between Well No. 2 and Department of Water Supply's (DWS) Puukala Tank, and a water system on the property built to DWS Standards. " In response to the comments, Applicant has met with DWS and with the Rutter Group (successor to K -W Kohanaiki) on several occasions to discuss the specifics of the water system (including waterlines and storage tanks) to be built to DWS Standards, the amendment of the Water Agreement with respect to water units for this Project and the relative responsibilities for completion of Kau Well 1 and the water system as between Applicant and Rutter. As a result of those discussions, DWS has provided guidance on the specific desired water system improvements, which will result in tying the Kau Wells to the northern portion of the DWS system. Applicant continues to work with DWS and the Rutter Group on finalizing the terms under which the agreement can be modified. oe4/_ IT Belt Collins Hawaii Ltd. 2153 North King Street, Suite 200 . Honolulu, Hawaii 96819 USA T/808 521 5361 . F1808 538 7819 . honolulu@beltcollins.com . www.beltcollins.com Belt Collins Hawaii is an Equal Opportunity Employer Honolulu Guam Hong Kon Philippine: Seattle Singapore Theilantl Mr. Christopher J. Yuen August 25, 2005 2005.33.3100 / 05P-297 Page 2 Thank you for the comments and the opportunity to respond to them. Very truly yours, BELT COLLINS HAWAII LTD. Lee W. Sichter Principal Planner EK:lf cc: Milton D. Pavao, Manager - Dept. of Water Supply Harry Kim Mayor ^7 &Tunfv of �txiunii Barbara Bell Director Nelson Ho Deputy Director DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 25 Aupuni Street, Room 210 • Hilo, Hawaii 967204252 (808) 9614083 • Fax (808) 961-8086 MEMORANDUM Date July 12, 2005 To CHRISTOPHER YUEN, Plannin it for From BARBARA BELL, Direct ,1 Subject Change of Zone Applicata n (REZ 05-010) Applicant: Hiluhilu Development, LLC Request: Open and A -3a to Project District TMX: 7-2-5:1 We have reviewed the subject application and offer the following recommendations: DEPARTMENT COMMENTS: WASTEWATER COMMENTS: ( ) No comments ( ) Require connection of existing and/or proposed structures to the public sewer in accordance with Section 21-5 of the Hawaii County Code. ( ) Require Council Resolution to approve sewer extension in accordance with Section 21-26.1 of the Hawaii County Code. Complete D.E.M. Sewer Extension Application. ( ) Require extension of the sewer system to service the proposed subdivision in accordance with Section 23-85 of the Hawaii County Code. ( ) Other: A.4. I lre 4 iCA7 TECHNICAL SERVICES COMMENTS: / SOLID WASTE COMMENTS: ( ) No comments () Commercial operations, State and Federal agencies, religious entities and non-profit organizations may not use transfer stations for disposal. ,�>4) Aggregates and any other construction/demolition waste should be responsibly reused to its fullest extent. �) Ample room should be provided for implementation of a recycling program. () Greenwaste may be transported to the green waste sites located at the Kailua and Hilo transfer stations, or other suitable diversion programs. K) Construction and demolition waste is prohibited at all County Transfer Stations. Submit Solid Waste Management Plan in accordance with attached guidelines.4:y 42 L' Other: (�:11i� l (1G) �—<.e��.�,-.�t> ��sr GG c. „�.•��n,.�• � ca-, �Y�s,� r H 60u rz �v ,0^ N n,. i+L S' ")( SWD, WWD, TSS IEiCHIBIT Hawaii County is an equal opportunity provider and employer. Harry Kim Mayor Barbera Bell Director Michael Dworsky P.E. Solid Waste Division Chief County of Hawaii DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 25 Anpaai ffircet, Room 210 a Hoo, Hawal'i 967204252 (808) 961 -SM • Fax (808) 9614086 October 13, 2003 SOLID WASTE MANAGEMENT PLAN Guidelines INTENT AND PURPOSE This is to establish guidelines for reviewing solid waste management plans, for which special conditions are placed on developments. The solid waste management plan will be used to: (1) encourage recycling and recycling programs, (2) predict the waste generated by the proposed development to anticipate the loading on County transfer stations, landfills and recycling facilities, and (3) predict the additional traffic being generated because of waste and recycling transfers. REPORT The consultants report will contain the following: 1. Description of the project and the potential waste it may be generating: i.e. analysis of anticipated waste volume and composition. This includes waste generated during the construction and operational phases. Greenwastes will be included in this report for both construction grubbing and future operational landscape maintenance. 2. Description and location of the possible sites for waste disposal or recycling. We will not allow the use of the County transfer stations for any commercial development; commercial development as defined under the policies of the Department of Environmental Management, Solid Waste Division. 3. Since the Department of Environmental Management promotes recycling, indicate onsite source separation facilities by waste stream; i.e. source separation bins of glass, metal, plastic, cardboard, aluminum, etc. 4. Identification of the proposed disposal site and transportation methods for the various components of the waste disposal and recycling system, including the number of truck traffic and the route that truck will be using to transport the waste and recycled materials. Solid Waste Management Plan Guidelines Page 2 of 2 5. The report will include any impacts to County waste and recycling facilities, and the appropriate mitigation measures. All recommendations and mitigation measures will be addressed. 6. Description of the waste reduction component that analyzes techniques to be employed to achieve a reduction goal. Analysis will be based on the highest potential use or zoning of the development. REQUIREMENTS AND CONDITIONS A solid waste management plan will be done for all commercial developments, as defined under the policies of the Department of Environmental Management, Solid Waste Division. 2. We will require the developer to provide or resolve all recommendations and mitigation measures as outlined in the report; besides any conditions placed on the applicant by the Department of Environmental Management. 3. A licensed environmental or civil engineer will draft and certify the solid waste management plan. CONCUR: Barbara Bell DIRECTOR Harry Kim Mayor ei'.. 1rj O1•NN�P (Couutp of 'Waivai`i FIRE DEPARTMENT 25 Aupuni Street a Suite 103 • Hilo, Hawai'i 96720 (808)961-8297 • Fax(808)961-8296 July 19, 2005 TO: CHRISTOPHER J. YUEN, PLANNING DIRECTOR FROM: DARRYL OLIVEIRA, FIRE CHIEF SUBJECT: CHANGE OF ZONE APPLICATION (REZ 05-010) APPLICANT: HILUHILU DEVELOPMENT, LLC REQUEST: OPEN AND A -3a TO PROJECT DISTRICT TAX MAP KEY: 7-2-5:1 Darryl J. Oliveira Fire Chief Desmond K. Wary Deputy Fire Chief In regards to the above-mentioned Change of Zone application, the following shall be in accordance: Fire apparatus access roads shall be in accordance with UFC Section 10.207: "Fire Apparatus Access Roads "Sec. 10.207. (a) General. Fire apparatus access roads shall be provided and maintained in accordance with the provisions of this section. "(b) Where Required. Fire apparatus access roads shall be required for every building hereafter constructed when any portion of an exterior wall of the first story is located more than 150 feet from fire department vehicle access as measured by an unobstructed route around the exterior of the building. "EXCEPTIONS: 1. When buildings are completely protected with an approved automatic fire sprinkler system, the provisions of this section may be modified. "2. When access roadways cannot be installed due to topography, waterways, nonnegotiable grades or other similar conditions, the chief may require additional fire protection as specified in Section 10.301 (b). EXIIHIIBIT —0, Navai'i County is an Equal Opportunity Provider and Employer. Christopher J. Yuen July 19, 2005 Page 2 "3. When there are not more than two Group R, Division 3 or Group M Occupancies, the requirements of this section may be modified, provided, in the opinion of the chief, fire -fighting or rescue operations would not be impaired. "More than one fire apparatus road may be required when it is determined by the chief that access by a single road may be impaired by vehicle congestion, condition of terrain, climatic conditions or other factors that could limit access. "For high -piled combustible storage, see Section 81.109. "(c) Width. The unobstructed width of a fire apparatus access road shall meet the requirements of the appropriate county jurisdiction. "(d) Vertical Clearance. Fire apparatus access roads shall have an unobstructed vertical clearance of not less than 13 feet 6 inches. "EXCEPTION: Upon approval vertical clearance may be reduced, provided such reduction does not impair access by fire apparatus and approved signs are installed and maintained indicating the established vertical clearance. "(e) Permissible Modifications. Vertical clearances or widths required by this section may be increased when, in the opinion of the chief, vertical clearances or widths are not adequate to provide fire apparatus access. "(f) Surface. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be provided with a surface so as to provide all- weather driving capabilities." (20 tons) "(g) Turning Radius. The taming radius of a fire apparatus access road shall be as approved by the chief" (45 feet) "(h) Turnarounds. All dead-end fire apparatus access roads in excess of 150 feet in length shall be provided with approved provisions for the turning around of fire apparatus. "(i) Bridges. When a bridge is required to be used as access under this section, it shall be constructed and maintained in accordance with the applicable sections of the Building Code and using designed live loading sufficient to carry the imposed loads of fire apparatus. "(j) Grade. The gradient for a fire apparatus access road shall not exceed the maximum approved by the chief." (15%) Christopher J. Yuen July 19, 2005 Page 3 "(k) Obstruction. The required width of any fire apparatus access road shall not be obstructed in any manner, including parking of vehicles. Minimum required widths and clearances established under this section shall be maintained at all times. "(1) Signs. When required by the fire chief, approved signs or other approved notices shall be provided and maintained for fire apparatus access roads to identify such roads and prohibit the obstruction thereof or both." Water supply shall be in accordance with UFC Section 10.301(c): "(c) Water Supply. An approved water supply capable of supplying required fire flow for fire protection shall be provided to all premises upon which buildings or portions of buildings are hereafter constructed, in accordance with the respective county water requirements. There shall be provided, when required by the chief, on-site fire hydrants and mains capable of supplying the required fire flow. "Water supply may consist of reservoirs, pressure tanks, elevated tanks, water mains or other fixed systems capable of providing the required fire flow. "The location, number and type of fire hydrants connected to a water supply capable of delivering the required fire flow shall be protected as set forth by the respective county water requirements. All hydrants shall be accessible to the fire department apparatus by roadways meeting the requirements of Section 10.207. JCP:lpc irry Kim Mayor July 20, 2005 County of Hawaii POLICE DEPARTMENT 349 Kapiolani Street • Hilo, Hawaii 96720-3998 (808) 935-3311 • Fm(808)961-2389 TO CHRISTOPHER J. YUEN, PLANNINC3 DIRECTOR FROM ONALD T. NAKAMICHI, ASSISTANT POLICE CHIEF, AREA II OPERATIONS SUBJECT Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development, LLC Request: Open and A -3a to Project District Tax Map Key: 7-2-5:1 Lawrence K. Mahan Police Chief Staff has reviewed the above -referenced application and submits the following. Harry S. Kubojiri Deputy Police Chief As previously commented regarding development, the Department supports the County's proposed policy on the principle of concurrency. Staff has recommended and continues to recommend that the north -to -south traffic issues be strongly addressed in consideration of this proposed development. Staff also recommends consideration be given regarding an upper connector road to the makai ends of Coast View Subdivision, Wonderview Subdivision, and Kona Highlands. Should you have any questions, please contact Major John Dawrs, Area II Operations, at 326-4646, extension 299. EXHIBIT "Hawai'i County is an Equal Opportunity Provider and Employer" f '' 5 Be1tCoBins I j August 25, 2005 2005.33.3100 / 05P-295 Mr. Christopher J. Yuen, Director Planning Department County of Hawaii 101 Pauahi Street, Suite 3 Hilo, HI 96720 Dear Mr. Yuen: Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development LLC Request: Open and A -3a to Project District TMK: 7-2-005:001 Response to Police Department Comments Honmulu This is in response to the comment letter from the Police Department regarding the above Guam zoning application: Hong Kon` Philippine: Seattle 1) Staff has recommended and continues to recommend that the north -to -south traffic Singapore issues be strongly addressed in consideration of this proposed development. Thailand The main project access is a new signalized intersection at Queen Ka`ahumanu Highway. Palamanui also includes a new north -south connection ("Main Street") that will become a part of the region -serving Midlevel Roadway. 2) Staff'also recommends consideration be given regarding an upper connector road to the makai ends of Coast View Subdivision, Wonderview Subdivision, and Kona Highlands. The County's Road Plan calls for a Kealaka`a Drive extension which crosses the mauka portion of the Palamanui property. The corridor will be set aside and the road will be constructed by Palamanui during the development of the Palamanui project. To address more short-term concerns, Palamanui has already constructed an extension of Kauwila Street, which is stubbed out at the southern property boundary of Makalai Estates. Belt Collins Hawaii Ltd. 2153 North King Street, Suite 200. Honolulu, Hawaii 96819 USA T/808 521 5361 is F/808 538 7819. honolulu@beltcollins.com . www.beltcollins.com Belt Collins Hawaii is an Equal Opportunity Employer Mr. Christopher J. Yuen August 25, 2005 2005.33.3100 / 05P-295 Page 2 Thank you for the opportunity to respond. Should you have any questions, please contact us at Belt Collins Hawaii. Very truly yours, BELT COLLINS HAWAII LTD. Lee W. Sichter Principal Planner EK:lf cc: Ronald T. Nakamichi, Assistant Police Chief, Area II Operations Harry Kim Mayor TO: FROM: DATE: Vi'llunfu of'afunii CIVIL DEFENSE AGENCY 920 Ululani Street • Hilo, Hawai'i 96720-3958 (808) 935-0031 • Fax(808)935-6460 Christopher Yuen, Director, Department of Planning Attention: Norman Hayashi Lanny T. Nakano, Acting Administrator August 23, 2005 SUBJECT: Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development, LLC Request: Open and A -3a to Project District Tax Map Key: 7-2-5:1 Troy M. Kindred Administrator Lanny T. Nakano Assistant Administrator We have reviewed the above application in regards to hazards and wish to transmit the following comment: The developer states that the project district would allow 930 housing units to be spread over the 547 acre development. For the size of the development, we highly recommend that the developer install a minimum of three (3) outdoor warning sirens using solar power with 121 dbc, omni -directional speaker array, and be compatible with the existing civil defense warning system. The sirens should be equally spaced within the project site. State Civil Defense technicians and planners are available to assist and answer any questions the developer may have regarding this issue. • Although the proposed project lies within Zone 4 of the Hazards Zones for Lava Flows, the property is located on the 1801 lava flow that originated from the northwest rift zone of Hualalai volcano. According to the U.S. Geological Survey scientists at the Hawaiian Volcano Observatory, Hualalai is much older than Kilauea and Mauna Loa, and its eruptions occur far less frequently (see attached U.S.G.S. Hawaiian Volcano Observatory Fact Sheets). However, should an eruption occur, the 930 property owners must be able to evacuate the area immediately. Should this development be approved, it is recommended that, the developer construct two (2) major roadways (ingress/egress) from Queen Ka'ahumanu Highway into the project to accommodate such an evacuation should it be necessary. Furthermore, should one of the major roadways become. impassable, the second major roadway will serve as an alternate escape route. EXHIBIT CD Hawai'i County is an equal opportunity provider and employer 005368 p 1- Christopher Yuen Page 2 August 23, 2005 • Should the neighboring properties north and south of this project remain undeveloped, the rapid spreading of fountain grass will increase the potential threat of wildfires similar to the recent Waikoloa brushfire. At the present, we have Royal Gardens Subdivision in the Puna district, which is adjacent to and downslope from the east rift zone of Kilauea volcano, that has been inundated by the Kilauea lava flows since 1983 to the present. The other subdivisions in Kalapana (Kalapana Gardens, Kalapana Homesteads, Keone and Kalapana Shores), have also been inundated by the Kilauea lava flows. Leilani Estates Subdivision, also in the Puna district, is situated on the east rift zone of Kilauea (Lava Zone 1) and is extremely vulnerable to inundation by an eruption. The Hawaiian Ocean View Estates subdivision in the Ka'u district is also adjacent to and downslope from the southwest rift zone of Mauna Loa and the northeast portion lies on the rift zone (Lava Zone 1), which is highly vulnerable to inundation by an eruption from Mauna Loa. I strongly feel that Hiluhilu Development will be another subdivision vulnerable to inundation by an eruption from Hualalai, and should not be approved. The developer may consult with the USGS scientists at the Hawaiian Volcano Observatory. Thank you very much for the opportunity to review and comment. If you have any questions, please call Neil Gyotoku or me at 961-8229 Harry Kim Mayor Zountp of 'Wamai' f DEPARTMENT OF PARKS AND RECREATION 101 Pauahi Street, Suite 6 • Hilo, Hawaii 96720 (808) 961-8311 • Fax (808) 961-8411 MEMORANDUM July 13, 2005 Patricia G. Engelhard Director Pamela N. Mizuno Deputy Director TO: Chris Yuen Planning Directoo A��� FROM: Pat Engelhard a SUBJECT: Change of Zone Application - Hiluhilu Development LLC - TMK 7-2-5:1 We note that there is a potential for 930 housing units in this development and that there will be land set aside for parks. We also note that there will be a golf course on the site. Although some and perhaps all family members will golf, they will also use other park amenities. There is a shortage of park space in the Kona area, as evidenced by the crowded conditions and constant use during afternoons, evenings and weekends at the existing parks in North Kona. Therefore, we would ask that there be a provision in the rezoning to include park space before the occupancy of the first completed home. There should be a 5 -acre park before the first through three hundredth unit is occupied, with another 5 -acre park before the three hundred first unit is occupied, and a third 5 -acre park before the six hundred first unit is occupied. Although fair share fees are acceptable, the Kona community would be better served with three 5 -acre park sites strategically located throughout the developed area, including the following amenities: 1) Baseball/softball diamond large enough to accommodate adult games, with fencing, bleachers and dugouts. 2) Soccer space large enough to accommodate a full sized field, with fencing, bleachers and covered benches. 3) A restroom/pavilion. 4) Paved on-site parking for 25 including 2 stalls for the disabled, with a closing pipe gate. 5) Accessible sidewalks from the nearest right of way to and between the parking lot and all on- site amenities. 6) Landscaping, irrigation and drainage for the entire site. 7) Children's playground structures with concrete base and poured -in-place rubberized coating surrounding the structures, as determined by the wants of the community. If we were provided with the above park sites and amenities, the County would be willing to take over and maintain the site(s) as soon as they were completed and landscaping was established to the satisfaction of the County's inspector. Thank you for allowing our input. Our staff is available to answer any questions you may have. C: James Komata EXHi8M`�� Hawai'i County is an Equal Opportunity Employer and Provider 1-3 Y LINDA LINGLE GOVERNOR STATE OF HAWAII DEPARTMENT OF HEALTH P.O. Box 916 - HILO, HAWAII 96721-0916 MEMORANDUM DATE: August 5, 2005 TO: Christopher J. Yuen Planning Director, County of Hawaii FROM: Aaron A. Ueno t District Environmental Health Program Chief SUBJECT: Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development, LLC Request: Open and A -3a to Project District TMK: 7-2-5:1 CHIVOME L. FUKINO, M.D. DIRECTOR OF HEALTH Underground Injection Systems (Ph. 586-4258) which receive wastewater or storm run- offs from the proposed development need to address the requirements of Chapter 23, Hawaii State Department of Health Administrative Rules, Title 11, "Underground Injection Control." The applicant would need to meet the requirements of our Department of Health Air Pollution Rules, Chapter 60. 1, Title 11, State of Hawaii for fugitive dust control. If there is need to discuss these requirements, please contact our Clean Air Branch staff Ph. 933-0401. The Department of Health's Safe Drinking Water Branch authority on drinking water quality is based on the definition of a "public water system." A "public water system" means a system which provides water for human consumption through pipe or other constructed conveyance if such system has fifteen (15) service connections or regularly serves an average of at least twenty-five (25) individuals daily at least sixty (60) days out of the year. All public water systems are regulated by the Department of Health and shall be in compliance with the Hawaii Administrative Rules, Title 11, Chapter 20. Recommend the subdivision lots be connected to an existing public water system. Concerns on water quality for lead, copper, algae and microbiological and chemical contaminations in private water systems have identified the need for self monitoring. The EXHIBIT l °- l ,� � Planning Director, County of Hawaii Page 2 August 5, 2005 I reparhnent of I-lenlih does nit support the use oi'thcse private rain caichnnert systeins I, n drinb uil, purposes Mince the quality piny not nir of potable water standards. the Department offealth (Doll), Clenn Water Branch (CW13), acknowledges receipt of dire subject document on July 11. 2005. The CWB has reviewed the limited iniiirmation r onlauned in the subject document and offers the following comments: The Army Corps of Engineers should be contacted at (808) 438-9258 for this project. Pursuant to Federal Water Pollution Control Act (commonly known as the "Clean Water Act' (CWA)), Paragraph 401(a)(1), a Section 401 Water Quality Certification (WQC) is required for "[ajny applicant for Federal license or permit to conduct any activity including, but not limited to, the construction or operation of facilities, which may result in any discharge into the navigable waters...". The term "discharge" is defined in CWA, Subsections 502(16), 502(12), and 502(6); Title 40, Code of Federal Regulations, Section 122.2, and Hawaii Administrative Rules (HAR). Chapter 11-54. In accordance with 1IAR. Sections 11-55-04 and 11-55-34.05, the Director off [ealth may rcyuire the submittal of an individual permit application or it Notice of Intent (NOI) lire general permit coverage authorized under the National POIIIIIIIIII DIschingr' f�Ilimhatiorr System (NPDESI. a. An application for an NPDES individual permit is to be submitted at least 180 days before the commencement of the respective activities. The NPDES application forms may also be picked tip at our office or downloaded from our website at htlp-.//w�vw.hawaii gov/health/enviromnenial/water/cleanwter/forms/i ndiv-inclex.html. b. An NOI to be covered by an NPDES general permit is to be submitted at least 30 days before the commencement of the respective activity. A separate NOI is needed for coverage under each NPDES general permit. The NOI forms may be picked up at our office or downloaded from our website at: httn://www.hawt i.gov/health/environmental/water/cleanwater/forms, enl- index. html. Storm water nssncinled with industrial activities, as delined in "Title 40, Code o1 Federal Regulations, Sections Planning Director, County of Hawaii Page 3 August 5, 2005 ii. 122.26(b)(14)(i) through 122.26(b)(14)(ix) and 122.26(b)(14)(xi). [HAR, Chapter 11-55, Appendix B] iii. Construction activities, including clearing, grading, and excavation, that result in the disturbance of equal to or greater than one (1) acre of total land area. The total land area includes a contiguous area where multiple separate and distinct construction activities may be taking place at different times on different schedules under a larger common plan of development or sale. An NPDES permit is required before fhc commencement of the construction activities. [HAR, Chapter 11-55, Appendix C] iv. Discharges of treated effluent from leaking underground storage tank remedial activities. [HAR, Chapter 11-55, Appendix D] V. Discharges of once through cooling water less than one (I ) million gallons per day. [HAR., Chapter 11-55, Appendix E] vi. Discharges of hydrotesting wat. r. [1 -[AR, Cliapter l l -55, Appendix F] vii. Discharges of construction dewatering effluent. [HAR, Chapter 11-55, Appendix G] viii. Discharges of treated effluent from petroleum bulk stations and terminals. [HAR, Chapter 11-55, Appendix H] ix. Discharges oftreated effluent from well drilling activities. 11 [AR, Cbapler 1 1-'i5, Appendix I] Discharges of treated effluent from recycled water distribution systems. [HAR, Chapter 11-55, Appendix J] xi. Discharges of storm water from a small municipal separate storm sewer system. [HAR, Chapter 11-55, Appendix K] xii. Discharges of circulation water from decorative ponds or tanks. [HAR, Chapter 11-55, Appendix L] Planning Director, County of Hawaii Page 4 August 5, 2005 In accordance with HAR, Section 11-55-38, the applicant for an NPDES permit is requited to either submit a copy of the new NOI or NPDES permit application to the State Department of Land and Natural Resources, State Historic Preservation Division (SHPD), or demonstrate to the satisfaction of the DO) I that the project, activity, or site covered by the NOl or application has been or is being reviewed by SLIPD. If applicable, please submit a copy of the request for review by SHPD or SI -]PD's determination letter for the project. 4. Any discharges related to project construction or operation activities, with or without a Section 401 WQC or NPDES permit coverage, shall comply with the applicable State Water Quality Standards as specified in HAR, Chapter 11-54. Hawaii Revised Statutes, Subsection 342D -50(a) requires that "[n]o person, including any public body, shall discharge any water pollutants into state waters, or cause or allow any water pollutant to enter state waters except in compliance with this chapter, rules adopted pursuant to this chapter, or a permit or variance issued by the director." If you have any questions, please contact Mr. Alec Wong, Supervisor of the Engineering Section, CWB, at (808) 586-4309. Construction activities must comply with the provisions of Hawaii Administrative Rules, Chapter 1 1-46, "Community Noise Control." a. The contractor must obtain a noise permit if the noise levels From the construction activities are expected to exceed 1 he allowable levels of the rules. b. Construction equipment and on-site vehicles requiring an exhaust of gas or air must be equipped with mufflers. C. The contractor must comply with the requirements pertaining to construction activities as specified in the rules and the conditions issued with the permit. Should there be any questions on this matter, please contact the Department of Health at 933-0917. The subject project is located within the proposed new wastewater sewer system. All wastewater generated shall be disposed into the proposed new sewer system. WokD.R BZ. 05-010 at Beffobs August 25, 2005 2005.33.3100 / 05P-298 Mf. Christopher J. Yuen, Director Planning Department County of Hawaii 101 Pauahi Street, Suite 3 Hilo, HI 96720 Dear Mr. Yuen: Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development LLC Request: Open and A -3a to Project District TMK: 7-2-005:001 Response to Department of Health Comments Honolulu Guam This is in response to the comment memorandum dated August 5° p 2005 from the Department Hong Philippipin p ge Philippine., of Health regarding the above zoning application: Seattle Singapor[ 1. Underground Injection Systems: The applicant will comply with the UIC rules. Thaland 2. Clean Air Branch: The applicant will comply with the requirements for fugitive dust control. 3. Safe Drinking Water Branch: The applicant will work with the State and County to provide water service for residents and businesses at Palamanui. The anplicant will comply with the department's rules. 4. Clean Water Branch: The applicant will comply with this requirement. 5. Community Noise Control: The applicant will request that contractors comply by obtaining a noise permit. ()04296 Balt Collins Hawaii ltd. 2153 North King Street, Suite 200 . Honolulu, Hawaii 96819 USA T/808 521 5361 . F/808 538 7819 . honolulu@beltcollins.com . www.beltcollins.com Balt Collins Hawaii is an Equal Opportunity Employer Mr. Christopher J. Yuen August 25, 2005 2005.33.3100 / 05P-298 Page 2 Thank you for the opportunity to respond. Very truly yours, BELT COLLINS HAWAII LTD. Lee W. Sichter Principal Planner EK:lf cc: Aaron Ueno, District Environmental Health Program Chief Department of Health .INDA LINGLE GOVERNOR Mr. Christopher J. Yuen Director Planning Department County of Hawaii 101 Pauahi Street, Suite 3 Hilo, Hawaii 96720-3043 Dear Mr. Yuen: STATE OF HAWAII DEPARTMENT OF TRANSPORTATION 869 PUNCHBOWL STREET HONOLULU, HAWAII 96813-5097 September 28, 2005 Subject: Palamanui by Hiluhilu Development, LLC Change of Zone Application (REZ 05-010) Thank you for the opportunity to review the subject application for the proposed project. RODNEY K. HARAGA DIRECTOR Deputy Directors BRUCE Y. MATSUI BARRY FUKUNAGA BRENNON T. MORIOKA BRIAN H. SEKIGUCHI IN REPLY REFER TO. STP 8.1906 This project has gone through several iterations of coordinated reviews with the DOT staff. The following is our understanding of the latest recommendations: 1. The developer will be pursuing the Northern Project Access Road in lieu of the Airport Access Road under Phase 1 of their development. The developer will also be constructing a new two-lane north -south roadway, parallel to Queen Kaahumanu Highway, and connecting the project to Kaiminani Drive in this initial phase. 2. Plans for this northern access and any other work within our rights-of-way will be coordinated with our Highways Division for review and approval. 3. The developer will submit updated Traffic Impact Analysis Report(s) to the DOT for review and approval prior to proceeding with any subsequent phases of its development. This is critical because of the impacts anticipated from the full buildout of the area, including development plans by adjacent land owners and the University of Hawaii. 0665 EXNJH3IT E� Mr. Christopher J. Yuen Page 2 September 28, 2005 We appreciate the opportunity to provide our comments. Very truly yours, t�•\ ROD�IE t 4pt�a A Director Tranion c: Galen Kuba, Hawaii County Department of Public Works STP 8.1906 75-344 Nani Kailua Dr., Kailua-Ko17a;,M19$740. (808) p1g0441 August 8, 2005 Chris Yuen, Director Hawaii County Department of Planning 25 Aupuni Street, Hilo, Hawaii 96720 Re: Change of Zone Application (REZ 05-010) for Palamanui Applicant: Hiluhilu Development LLC Dear Mr. Yuen: The Kona Traffic Safety Committee has carefully reviewed the subject application for change of zone from Ag 3 and Open to a Mixed Use Project District to permit development of a community with approximately 930 single and multifamily residential units, commercial spaces (medical, office, retail, classrooms and health-related), an 18 - hole golf course, and a 120 -room hotel on 725 acres mauka of Hwy 11 and north of Kona International Airport, adjacent to the State land designated for the University of Hawaii's West Hawaii Center. We have the following comments and concerns. Access From Queen Ka ahumanu Hwy (Hwy 11) The developer proposes to construct a new (signalized) intersection connection at Hwy 11, which will result in yet another intersection only a few hundred feet north of the existing signalized intersection on Hwy 11, a "limited access highway," at the Airport Road. We urge that the developer be required to construct an access road from the Airport Road, and not create another intersection on Hwy 11 We also recommend that the developer be required to construct a grade separation at the Airport Road/Hwy 11 intersection, which will eliminate the existing signal, increase safety and reduce congestion. The Airport Road should run under Hwy 11, and the overpass should be landscaped to enhance the attractiveness of the area. Access From Mamalahoa Hwy (Hwy 190) The developer states that it is "actively pursuing an alignment which (sic) could connect north of Makalei Drive so that Makalei Drive would not have to be the only point of connection to (Hwy 190)." The developer also proposes to limit use of Makalei Drive to vehicles weighing less than 10,000 lbs. Although connectivity between Makalei Estates and Palamanui is desirable because it could provide alternate access to Hwy 11 for Makalei Estates residents, thereby lessening traffic volume on Hwy 190 and Kaiminani Drive, we urge that the county require the developer to provide Prima access from Hwy 190 north of Makalei Drive before occupancy is permitted, and to lower the weight restriction on Makalei Drive, which is too steep to serve as a connector road, to 8000 lbs. In the interest of safety, the primary access road should be designed to comply with grade restrictions applicable to connector roads. EXHIBIT 16 Other Roadways We=ecknowledge and appreciate the developer's offer to construct a lateral public road ("Main Street") from the Palamanui Village Center to Kaiminani Drive, which will provide connectivity and reduce traffic on Hwy 11, to provide bicycle paths on access roads to the development to support University related and other bike traffic, and to include sidewalks on minor roads in the village area. Affordable Housing The developer proposes a total of 100 affordable housing units (50 rental and 50 for sale), which is only 10.6% of the 930 residential units to be built. Because the existence of affordable housing on site is essential to achieve the desired traffic mitigation, we urge that the county require strict conformance with the requirements of the affordable housing ordinance, i.e., that the developer earn at least 190 affordable housing credits, and that the housing be on site. TIAR Shortcomings Although the TIAR is quite thorough, it is based on traffic counts taken in April 2003, which precedes the installation of traffic signals at the Hwy 11/Hina Lani Street, and Hwy 11/Police Station Road intersections, both of which have resulted in increased congestion on Hwy 11 and low levels of service at those intersections. We urge, therefore, that the developer be required to update the TIAR and assess the effect of the development on those intersections in particular, and Hwy 11 in general, assuming compliance with the recommendations contained herein. Thank you for the opportunity to comment. Sincerely yours, Joel E. Gimpel Chair, Public Affairs Cc: Pete Hoffman Angel Pilago Members, Kona Traffic Safety Committee Belflollins Mr. Christopher J. Yuen, Director Planning Department County of Hawaii 101 Pauahi Street, Suite 3 Hilo, HI 96720 Dear Mr. Yuen: ' I! September 12, 2005 2005.3,3.3100 / 05P-319 Change of Zone Application (REZ 05-010) Applicant: Hiluhilu Development LLC Request: Open and A -3a to Project District TMK: 7-2-005:001 Response to Kona Traffic Safety Committee Comments We are writing on behalf of Hiluhilu Development, LLC in response to the August 8, 2005 letter from the Kona Traffic Safety Committee to you. Addressing the North Kona traffic situation will require a cooperative effort between the County agencies, State DOT, and the various landowners. Hiluhilu Development, LLC ("Hiluhilu Development' or "Hiluhilu") will continue to actively participate in that effort and will do its part in addressing the impacts from its development. The responses below follow the heading format of the comment letter. Access From Queen Ka`ahumanu Hwy (Hwy 111 The developer proposes to construct a new (signalized) intersection connection at Hwy 11, which will result in yet another intersection only a few hundred feet north of the existing signalized intersection on Hwy 11, a "limited access highway, " at the Airport Road. We urge that the developer be required to construct an access road from the Airport Road, and not create another Intersection on Hwy 11. We also recommend that the developer be required to construct a grade separation at the Airport Road/Hwy 11 intersection, which will eliminate the existing signal, increase safety and reduce congestion. The Airport Road should run under Hwy 11, and the overpass should be landscaped to enhance the attractiveness of the area. Belt Collins Hawaii Ltd. 2153 North King Street, Suite 200 a Honolulu, Hawaii 96819 USA T/808 521 5361 a F/808 538 7819 a honolulu@beltcollins.com a www.beitcollins.com Belt Collins Hawaii is an Equal Opportunity Employer Honolulu Guam Hong Kon, Philippines Seattle Singapore Thailand Mr. Christopher J. Yuen September 12, 2005 2005.33.3100 / 05P-319 Page 2 RESPONSE: Hiluhilu Development asked its traffic engineers at Austin Tsutsumi Associates to conduct a traffic study, evaluate alternatives in connecting to Queen Ka`ahumanu Highway and to make appropriate recommendations. The alternatives considered were to connect directly to Queen Ka`ahumanu Highway using Hiluhilu's permitted access along the highway and to connect via a new road that would go from Palamanui, across State land, to the Keahole Airport intersection to form a four-way intersection instead of the current "T" intersection. Hiluhilu discussed the alternatives with the Department of Land and Natural Resources, the Department of Hawaiian Home Lands, and the Department of Transportation Highways Division and Airports Division. While there were benefits to the new airport access road, the traffic analysis showed that creating the four-way intersection at the existing intersection location would worsen the through traffic flow on Queen Ka`ahumanu Highway because of the time required for the eight -way signal system to process left -turn traffic through that intersection. The direct connection to Queen Ka`ahumanu Highway with the intersection improvements recommended by Austin Tsutsumi Associates proved to be a better means of handling the through traffic flow so Hiluhilu accepted the recommendations of its traffic engineers to seek approval of the direct connection. Although this would involve an additional signal at the Palamanui intersection, the distance from the Keahole Airport intersection of over a mile allows enough distance so that the additional light will not result in a backlog of through traffic. Hiluhilu's traffic engineers discussed the analysis and conclusions with the State Department of Transportation before finalizing the TIAR. The traffic impacts of Palamanui alone would not justify a grade -separated interchange at the existing airport intersection and there appear to be a number of factors which weigh against such an approach at this time. Although the Airports Division has raised the possibility of a grade -separated interchange for the airport intersection, that was at a more northerly location than the current Keahole airport intersection and would require reconfiguration of the airport road system as well as establishing the connectors on the mauka side of Queen Ka`ahumanu Highway. As far as we could determine, there is no target date for this improvement. Establishing a grade -separated intersection at the existing airport road access also raises a number of unresolved issues concerning the impacts on the DLNR and DHHL land in that area. The Kona community has expressed strong concerns about visually intrusive improvements in this area as evidenced by the reaction to the improvements to the HELCO facility just mauka of the existing intersection and a grade separated interchange would be a large, visually -intrusive feature. Given these uncertainties, we would not have expected the DOT Highways Division to establish a grade -separated interchange at the present airport intersection location. The Highways Division has, in fact, concurred with the direct connection of Palamanui to Queen Ka`ahumanu Highway. Mr. Christopher J. Yuen September 12, 2005 2005.33.3100 / 05P-319 Page 3 Access From Mamalahoa Hwy (Hwy 190) The developer states that it is "actively pursuing an alignment which (sic) could connect north of Makalei Drive so that Makalei Drive would not have to be the only point of connection to (Hwy 190). " The developer also proposes to limit use of Makalei Drive to vehicles weighing less than 10, 000 lbs. Although connectivity between Makalei Estates and Palamanui is desirable because it could provide alternate access to Hwy 11 for Makalei Estates residents, thereby lessening traffic volume on Hwy 190 and Kaiminani Drive, we urge that the county require the developer to provide primary access from Hwy 190 north of Makalei Drive before occupancy is permitted, and to lower the weight restrictions on Makalei Drive, which is too steep to serve as a connector road, to 8, 000 lbs. In the interest of safety, the primary access road should be designed to comply with grade restrictions applicable to connector roads. RESPONSE: Hiluhilu Development has discussed the proposed new connection to Mamalahoa Highway with representatives of the owners of the private land to the north of the project site, the Department of Land and Natural Resources, the Department of Public Works, and members of your staff. Hiluhilu Development asked its traffic engineer to assist in evaluating the situation. There is a consensus that a new connection to Mamalahoa Highway should be part of the public road system in this part of Kona. While Hiluhilu will do its part in making this possible, the need for this road system goes far beyond the traffic impacts of any one project. Hiluhilu will continue to participate in the discussions over the routing for the road connection to do its share in the development of this part of the road system. Hiluhilu will construct the portions of the roads through Palamanui. As required by the County and the rezoning ordinance for Makalei Estates, Hiluhilu is completing the final punchlist items and will submit the road for dedication proceedings. Hiluhilu will request that the County restrict through vehicle traffic on Makalei Drive to vehicles of not more than the 10,000 pounds GVW. Other Roadways We acknowledge and appreciate the developer's offer to construct a lateral public road ("Main Street') from the Palamanui Village Center to Kaiminani Drive, which will provide connectivity and reduce traffic on Hwy 11, to provide bicycle paths on access roads to the development to support University related and other bike traffic, and to include sidewalks on minor roads in the village area. Mr. Christopher J. Yuen September 12, 2005 2005.33.3100 / 05P-319 Page 4 RESPONSE: The construction of this portion of Main Street, as well as the mauka-makai connector road and the development of neighborhood commercial facilities, will provide critical infrastructure support for the University and provide nearby residents with the option of shopping at those facilities instead of driving to Kailua on Palani Road or Queen Ka`ahumanu Highway. Palamanui will also provide public park areas (including active recreational facilities), public play on the golf course, and trails which will provide nearby residents with recreational opportunities in their neighborhood. The Main Street road will provide ready access to those facilities without further burdening the state highways. Affordable Housing The developer proposes a total of 100 affordable housing units (50 rental and 50 for sale), which is only 10.6% of the 930 residential units to be built. Because the existence of affordable housing on site is essential to achieve the desired traffic mitigation, we urge that the county require strict conformance with the requirements of the affordable housing ordinance, i. e., that the developer earn at least 190 affordable housing credits, and that the housing be on site. RESPONSE: Hiluhilu will comply with the current affordable housing requirements. It will have at least 100 of the affordable housing units within Palamanui. The remaining units may be within Palamanui or be located within the radius allowed under the current affordable housing ordinance. TIAR Shortcomines Although the TIAR is quite thorough, it is based on traffic counts taken in April 2003, which precedes the installation of traffic signals at the Hwy 11/Hina Lani Street and Hwy I1/Police Station Road intersections, both oj'which have resulted in increased congestion on Hwy 11 and low levels of service at those intersections. We urge, therefore, that the developer be required to update the TIAR and assess the effect of the development on those intersections in particular, and Hwy 11 in general, assuming compliance with the recommendations contained herein. RESPONSE: Hiluhilu traffic engineers discussed the traffic study at length with DOT before finalizing the TIAR. Hiluhilu will be updating the traffic study as its development proceeds. With respect to an update to cover the Police Station Road intersection, the DOT has scheduled the first phase of the road widening construction work which includes this section of Kaahumanu Highway as of July. The widened four -lane configuration will resolve traffic congestion along this section of Queen Ka`ahumanu Highway. Mr. Christopher J. Yuen September 12, 2005 2005.33.3100 / 05P-319 Page 5 The Hina Lani Street intersection is to the north of the scheduled phase I road widening work on Queen Ka`ahumanu Highway and therefore falls within the phase 2 work which will widen the highway to the airport intersection. Because DOT does not have funding for that section, the TIAR could not assume that the phase 2 improvements would be done within the TIAR's study period. However, DOT has made it clear in numerous public meetings that both phases 1 and 2 are priority projects for DOT. DOT has concluded that the road widening to a four -lane configuration to the airport intersection is needed and the TIAR supports that conclusion. Given DOT's conclusions regarding the need to widen Queen Ka`ahumanu Highway out to the airport intersection, an update of traffic data within that section of the highway does not appear to provide any practical benefit. Thank you for the comments and the opportunity to respond. Sincerely, BELT COLLINS HAWAII LTD. ' r Lee W. Sichter Principal Planner LWS:lf cc: Joel E. Gimpel, Chair, Public Affairs Kona Traffic Safety Committee September 1, 2005 Mr. Chris Yuen, Planning Director County of Hawaii, Planning Department Aupuni Center 101 Pauahi Street, Suite 3 Hilo, HI 96720 RE: Makalei Drive Dear Chris Thank you for Meeting with us this past Tuesday. We hope you will find the information we presented, along with the documents on the disc to be of value. Our position is that Makalei Drive does not satisfy the developer's obligation under Ordinance 93-45, Section G. The Ordinance requires that "a (not the) proposed 80 -foot wide right-of-way and its improvements shall be extended to the Queen Kaahumanu Highway if and when any development occurs within the existing Conservation District ...", or the area they now wish to develop as Palamanui. An 80 -foot wide right-of-way would be an "arterial' road, defined in the Hawaii County Code Section 23-3, (2) as ... a street of considerable continuity, which is primarily a traffic artery for intercommunication between or through large areas." As the road required under the ordinance has not been built, it of course cannot be "extended". Your predecessor, Virginia Goldstein, after the effective date of the Ordinance, specifically allowed the developer to build another road, not in place of that required under the Ordinance but in addition to it, with a 50 -foot right-of-way, an 18% grade, and direct individual lot access only if it would "not be a major mauka-makai connection between Mamalahoa Highway and Queen Kaahumanu Highway". In addition, it was stated the road would be private and eventually Makalei Estates Community Association Managed by Augustine Realty Po Box 2662 EXHIBIT Kailua- Kona, HI 96745 C1 4567 c . 808-326-7770 0 I 0 ' pass into the hands of the homeowners association. Furthermore, it was specifically designated as a "minor road", defined under the Hawaii County Code Section 23-3, (29) (F), as one "intended exclusively for access to abutting property". We do not contend that a minor road cannot connect to larger roads. Indeed, roads must connect to allow a roadway system. Makalei. Drive presently connects at the top with Mamalahoa Highway. However, if it connects to an 80 - foot right-of-way road below Makalei Estates that does not connect with the upper road as required under the Ordinance, it will then become "a major mauka- makai connection". This specifically violates the conditions granted, as well as the County Code. You stated during our meeting that, ... the position of the Public Works Department is the same as yours". This was true of the prior administration as well. Reading the correspondence in the County file, it is quite apparent Makalei Drive was never intended by the developer, the Planning Department, nor the Public Works Department to be the road required under the Ordinance, and it was neither designed nor constructed to serve that function. It therefore cannot serve that function now, even on a temporary basis. Perhaps further consideration should be given to the requirement that Makalei Drive be dedicated to the County and releasing the Irrevocable Standby Letter of Credit No. P13-285753. As Makalei Drive is clearly not the road required under the Ordinance, the County would appear to be in a favorable position to negotiate with the developer. And, accepting the road and releasing the bond for a road that doesn't exist, might not be in the County's best interests. We all recognize the need for more and better roads. However, those roads must be designed and constructed for their intended use. Makalei Drive was designed and built as a private, minor road and was specifically allowed only if it was not a mauka-makai connector. We look forward to your response. Sincerely, irryScneyer President, Makalei Estates Community Association Cc: Councilman Angel Pilago, the Makalei Estates Community Association Board of Directors Makalei Estates Community Association Managed by Augustine Realty PO Box 2002 Kailua- Kona, HI 96745 808-326-7170 )riginal Message ----- t: aabaya [mailto:poki_lani@hotmail.com] : Monday, January 09, 2006 4:52 PM qlago, K. Angel; phoffman@co.hawaii.hi.us; Yuen, Chris; McClure, Bruce; cohmayor@interpac,net; Eoff, Karen; Hayashi, mn ioki_lani@holmail.com ect: Makalei Drive to, vay of this email, we are joining with Jerry Schneyer, President of the Makalei Estates ieowners Association and our fellow homeowners in voicing our objection to any plan that allows ;nlei Drive to become the major mauka-makai connecting road to the proposed Palamanui slopment. As Mr. Schneyer has stated, we are not against the Palamanui development. But we are nst Makalei Drive becoming the connector road because it does not comply with Ordinance 93-45 'ounty Code and goes against agreements made by the former Planning Director, the Department ublic Works and the developer. Schneyer, along with our board of directors and other homeowners, has provided testimony and iments that show that Makalei Drive was not designed or constructed to standards and that it was :r intended to become a major connecting road. Rather, it was designed and intended to be a ate road, dedicated to the Makalei Estates Homeowners Association. If it were to become a ka-makai connector, it would be in clear violation of the Ordinance and County Code and against >e prior agreements. ing the upcoming meeting on January 20th, we respectfully ask that the law and prior agreements :allowed and that necessary action is taken to prevent Makalei Drive from becoming a major iecting road to Polamanui. nk you very much for your time and attention. n A Anne Abaya ,alei Estates, Lot 24 4129 Awalua Place >-/06 EXHIBIT 16 RHi1uhi1uPD.dm-12/13/05 (revised 1/12/06) COUNTY OF HAWAII PLANNING DEPARTMENT RECOMMENDATION MLUNFLU DEVELOPMENT LLC CgAMg.OFZM APPLICATION (REZ 05-0101 Upon careful review of the request, the Planning Director proposes that a favorable recommendation for a Project District request 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 on additional information presented at the public hearing. This favorable recommendation is based on the following findings: The applicant requests a change of zone from Open (0) and Agricultural 3 acres (A -3a) to Project District for a master planned community ("Palamanui") with a mix of uses. The proposed development includes: 1. Approximately 590 single-family residential units on approximately 247 acres. 2. Approximately 255 multiple -family residential units on approximately 18 acres. The distribution of the proposed units between residential and mixed use areas will depend upon market conditions. 3. Commercial spaces for medical, office, retail, classrooms and health related uses and the University Village Inn on approximately 102 acres. This area includes village and community commercial uses such as village retail and services, village inn, residential mixed use and industrial mixed use. A maximum of 85 of the proposed 930 residential units are planned for mixed use with an additional 120 visitor units in the University Village Inn. 4. 18 -hole golf course on approximately 180 acres. The golf course will be developed and maintained in accordance with Audubon International's Signature Silver Program standards. 5. Active and passive parks (Open, Park and Preservation) on approximately 177.8 acres. This "Constraints Area' includes the 65 -acre dry forest preserve, 4- archaeological sites/cave and park areas. 6. Trail system. 7. Minimum of 100 affordable housing units on-site; 50 for rent and 50 for sale. An estimated 1,841 jobs will be created in commercial, business and education activities upon project completion. The project will be developed in three phases taking approximately 10 years at over $300,000,000.00. Phase I involves infrastructure improvements; Phase II - residential improvements and Phase III - Multiple Family and commercial improvements. The applicant's overall objective is to develop a master planned community with a mix of uses. The applicant also requests variances from Chapter 23 (Subdivision Code) and Chapter 25 (Zoning Code). The proposed project follows a guiding design principle generally referred to as "New Urbanism", which emphasizes a pedestrian orientation in a village setting. The proposed variances fall into two general categories: 1) those that that facilitate development of the higher density town and residential center, and 2) those that maximize the development of the lower density golf -oriented residential lots. The applicant states that the variances relating to minimum block size, residential lot size, residential lot width and street frontage, street right-of-ways, street lighting, and the request to allow alleys in a residential development area all necessary to implement the New Urbanism philosophy. By Docket No. A03-744 dated May 19, 2005 the State Land Use Commission approved the redesignation of the property from the Conservation and Agricultural districts to the Urban district. In order to consider an area for any type of zoning designation, the applicable goals, policies and standards of the General Plan must be adequately addressed. It is only through such a comprehensive policy analysis approach that evaluations and decisions can be made to better time and stage developments to achieve growth determined by the General Plan and related planning documents. The implications of these evaluations and decisions must be also considered as they may have an impact on similar areas in the County. The Project District (PD) development is intended to provide for a flexible and -2- creative planning approach rather than specific land use designations. It will also allow for flexibility over time in the location of specific uses and mixes of structural alternatives. The planning approach would establish a continuity in land uses and designs while providing for a comprehensive network of infrastructural facilities and systems. A variety of uses as well as open space, parks, and other project uses are intended to be in accord with each individual Project District objective. A Project District is an amendment to Chapter 25, Zoning Code, which changes the district boundaries in accordance with the individual Project District. A Project District may be established whenever the public necessity and convenience and the general welfare require that a comprehensive planning approach for an area should be adopted in order to establish a continuity in land uses and designs while providing a comprehensive network of infrastructural facilities and systems. In addition, a Project District may only be established if the proposed district: (1) Is consistent with the intent and purpose of the Zoning Code and the County General Plan; and (2) Will not result in a substantial adverse impact upon the surrounding area, community or region. The Change of Zone Application from Open (0) and Agricultural 3 acres (A - 3a) to a Project District (PD) zoned district is consistent with the intent and purpose of the goals, policies and standards of the General Plan Land Use and Economic Elements. The proposed development conforms to the Land Use, Single Family and Multi Family Residential and commercial sub elements, and Housing goals, policies, and standards of the General Plan. In addition, this proposed development is consistent with the Economic element of the General Plan in that the proposed development will provide additional and expanded employment opportunities for the residents of the area, as well as the entire island as a whole. The employment opportunities from the proposed development as a result of this zoning request will generate both short-term (construction) and long-term (operational) employment. The applicant proposes to provide a mix of 930 single-family and multiple -family residential units. A total of 930 units will be added to the North Kona housing market. The addition of these units will provide an opportunity for residents to locate close to -3- services, facilities, and places of employment within the region. In addition, a minimum of 100 affordable units will be provided on-site. The remaining affordable housing units required by Chapter 11 may also be constructed on-site or off-site. The request would therefore implement the Housing goals of the General Plan by maintaining a housing supply which allows a variety of choices, and attaining a diversity of socio-economic housing mix. The Land Use Pattern Allocation Guide (LUPAG) Map component of the General Plan is a representation of the document's goals, policies, standards and courses of action. It is also a graphic depiction of the physical relationships among the various land uses. The LUPAG Map establishes the basic land use pattern for areas within the County. The LUPAG Map designates the project site as an Urban Expansion Area. This designation allows for a mix of high density, medium density, and low density urban developments, industrial and/or open designations in areas where new settlements may be desirable, but where the specific settlement pattern and mix of uses have not yet been determined. Within areas designated for development as resorts, portions of the resort area may be included in the Urban Expansion Area. High Density allows uses relating to commercial, multiple residential and related services (general and office commercial; multiple residential - up to 87 units per acre). Medium Density allows uses relating to village and neighborhood commercial and residential and related functions (3 -story commercial; residential - up to 35 units per acre). Low Density allows single family residential in character, ancillary community and public uses, and convenience type commercial uses. Resort area include uses such as hotels, condominium -hotels (condominiums developed and/or operated as hotels), and supporting services. The change of zone from Open (0) and Agricultural (A -3a) to Project District (PD) will not result in a substantial adverse impact upon the surrounding area, community or region. The property is bordered by the Queen Kaahumanu Highway on the west and Makalei Estates (A -3a) to the east. Vacant lands to the north are owned by the State and zoned A -5a. State lands to the south zoned A -5a are proposed for the development of the University of Hawaii Center of West Hawaii. On November -4- 21, 2002, the University of Hawaii, which owns approximately 500 acres adjacent to the subject property, entered into a MOU (amended April 16, 2004) with the applicant to consult and discuss joint development opportunities, with the applicant providing critical infrastructure for the University's development. The University selected the adjacent parcel as a suitable site for a permanent UH campus in West Hawaii. The MOU addresses the concept of a University Village. The applicant will develop a residential/commercial community on its property, with a village town center on both the subject and the University's property. The town center is envisioned as a walking village linking the University's facilities with commercial, recreational and cultural facilities. Initially, the University will lease space from the applicant in the village town center on the applicant's property to relocate from the current campus in Kealakekua. It is expected that the lease agreement will be for a period of five to ten years until the University's facilities can be constructed on its adjacent land. The University supports the joint development because of the unique opportunity to develop a campus with community connection, the ability to lease space to relocate the UH Center, and the significant reduction in the cost of basic infrastructure. All utilities and services are available to the site. The Land Use element of the General Plan states that urban -type uses shall be developed in areas adequately served by essential services and infrastructure. From comments received from agencies, various improvements would be required for the development of this project. Therefore, conditions will be included to assure that services and infrastructure are provided in a timely manner to accommodate the uses proposed in this Project District. According to the applicant, a 12 -inch water line in the main road of the Makalei Estates subdivision, which is part of the County water distribution system, ends just west of the western end of the property. The 12 -inch main through Makalei Estates connects to the existing 12 -inch main in Mamalahoa Highway at the mauka end of Makalei Estates. There are two 0.05 million gallon reservoirs within Makalei Estates and a 0.30 million gallon reservoir approximately 1,800 feet mauka of the Mamalahoa Highway across from Makalei Estates. Two potable wells have been developed at the north and -5- south mauka corners of the Makalei Estates subdivision. Each well has a production capacity of 750,000 gallons per day. Outfitting of the southern well is in the final stages of construction. After completion, the well will provide water to the County Department of Water Supply system. The northern well has been capped and will need to be outfitted to be activated as a source. The applicant, with the Department of Water Supply (DWS) and other major landowners in the area, will participate in the improvements to the DWS infrastructure to provide potable water for the project and other potential projects in the Kona area. The proposed water main connection between the Makalei Estates and the existing DWS reservoir mauka of the Kona International Airport at Keahole Airport Access Road and the Queen Kaahumanu Highway intersection will be a part of those improvements. In a letter dated August 10, 2005, the Department of Water Supply states that a Water Agreement dated June 15, 1999 between K -W Kau, LLC, K -W Kohanaiki, LLC, and the Water Commission of the County of Hawaii provides (the Petitioner) with 343 equivalent units of water at a maximum of 600 gallons per day per equivalent units. Forty-one (41) units have already been granted for Phases I and II of the Hiluhilu Development. The DWS further states "the remaining units of water will become available upon completion of Section 3. 1, 'Conditions to Kau Commitment' as stated in the Water Agreement. Improvements in Section 3.1 include outfitting Well No. 2 with a 700 GPM submersible pump and providing the necessary appurtenances, a transmission line between Well No. 2 and Department of Water Supply's Puukala Tank, and a water system on the property built to the Department of Water Supply's standards." A self-contained private wastewater collection, treatment and disposal system is proposed for the project. The capacity of the wastewater treatment plant (W WTP) will be approximately 850,000 gallons per day. The wastewater treatment plant will produce "R- 1 " recycled water in accordance with the Department of Health requirements for golf course irrigation. Recycled water will be the primary source of golf course irrigation water. In a memo dated July 12, 2005, and Department of Environmental Management as stated that no County sewer system is planned for this area Conditions of approval will be included to mitigate any potential impacts from the development. 1512 An Archaeological Inventory Survey was completed by Rechtman Consulting, LLC and finalized in June, 2003. Of the 83 archaeological sites recorded during the study, 12 were recommended for preservation, 30 were recommended for data recovery, and no further work was recommended for the remaining 41 sites. Twenty-two (22) of the eighty-three (83) sites as well as a 65 -acre dryland native forest were proposed for preservation. In its April 5, 2004 letter, the DLNR-HPD stated that there are no known or recorded burials in the proposed Petition Area therefore currently not necessary to comply with Chapter 6E-43. However, the applicant must comply with Chapter 6E-43 if human remains or burials are inadvertently discovered during mitigation. The applicant will be required to develop and implement a Preservation Plan and a Data Recovery Plan. The applicant states that a Data Recovery Plan will be developed and submitted to the Department of Land and Natural Resources Historic Preservation Division (DLNR- SHPD) for review and approval for all sites recommended for data recovery. A Preservation Plan will also be prepared and submitted to the DLNR-HPD. In a letter dated March 10, 2005, the DLNR-HPD has stated that of the 83 sites in the project area, all but two were assessed as significant under Criterion D, and four sites were assessed as significant under Criterion E for their religious/ceremonial association. No burial sites were identified during the inventory survey. Twelve sites will be preserved. Data recovery will be undertaken at 28 pre -contact sites and one historic period site. The SHPD-HPD has accepted the significance assessments/recommended treatments and addendum report. A Cultural Impact Assessment was completed by Maria Orr on December 11, 2003. No burials were discovered in the Petition Area. According to the assessment, important cultural resources on the site include: • certain habitation and agricultural features • petroglyphs and trail segments • lava tube cave habitation features and caves with evidence of water collection practices • botanical resources important to Hawaiian practitioners including a significant regenerating lama forest containing important native tress and plants • land forms and view planes of geographic features important in this portion of the Kekaha region While the archaeological study of Dr. Robert Rechtman and the Cultural Impact Assessment by Maria Orr found that no traditional and customary Native Hawaiian rights exercised on the property, the consultants suggested specific measures for protection and management of these resources. The applicant agrees with the consultants' suggestion that the resources should be protected and managed. The applicant has submitted a plan titled, "Integrated Natural Cultural Resource Management Plan (INCRMP)" dated March 2005 to address these issues. The INCRMP addresses preservation, mitigation, management and stewardship measures for the resources at Palamanui. Implementation of the INCRMP is intended to protect and manage preservation areas and the important cultural places and practices in Palamanui. Valuable cave areas and certain view planes will be managed under an Integrated Natural Cultural Resources Management Plan (INCRMP) as part of this project. According to the applicant, the INCRMP will be a framework which protects and provides access to important cultural places and natural resources at the project site and will address preservation, mitigation, management and stewardship measures for the resources at the site. Implementation of the plan is intended to protect and manage the important cultural places and practices. The applicant will initially maintain the INCRMP but will subsequently be maintained by the Palamanui Master Association. A cultural advisory committee consisting of Native Hawaiians, kupuna and other cultural practitioners, will meet with the applicant twice a year or more frequently, if warranted. The North Kona Dryland Forest Working Group which includes natural resource experts, will be consulted regarding preservation efforts of the Dryland Forest Preserve. In addition, a Biological Assessment of the lava tubes in the project area was conducted by Hawaii Biological Survey and completed in December 2003. Five lava tube segments contained significant biological and cultural resources deserving protective N! management. The assessment recommended the development of a resource management plan to address mitigation measures to minimize the impacts upon the cave ecosystems. The project will, if developed, generate additional traffic in the area. Thus, the applicant submitted a Final Traffic Impact Analysis Report (TIAR) dated December 7, 2004 conducted by Austin, Tsutsumi and Associates, Inc. Primary vehicular access to the property will be from a new roadway intersection on Queen Kaahumanu Highway. A mauka-makai connector road between the Queen Kaahumanu Highway and the Mamalahoa Highway will be provided, meeting with the approval of the County. The applicant is pursuing an alignment which could connect north of Makalei Drive so that Makalei Drive would not have to be the only point of connection to the Mamalahoa Highway. The applicant proposes to request the County to limit motor vehicle traffic on Makalei Drive. The applicant also proposes to construct a public road connection from Palamanui Village Center and the main project access road to Kaiminani Drive. The Planning Director does not agree with the Department of Public Works' recommendation regarding the road connections to the north of the project site, except for the road that will connect to the Mamalahoa Highway in the future. The General Plan does not support urban expansion to the north, as lands to the north are designated Conservation and Extensive Agriculture in the General Plan. Furthermore, lands to the north are state lands designated Conservation and Agricultural, and development should occur on urban lands towards Kailua-Kona instead of away from Kailua-Kona. The General Plan maps do not show these roads as going past the subject property, and the applicant will be constructing a road from the Queen Kaahumanu Highway north of the airport with connection to the "Mid -Level" and other "K to K" roads. Therefore, a road system parallel to the Queen Kaahumanu Highway to the north of the property is unwarranted at this time. Impacts associated with this project development such as historical, visual, traffic, drainage and design concerns have been assessed through the Environmental Impact Statement which was accepted by the State Land Use Commission on October 7, 2004 and will be mitigated through conditions of approval. Therefore, the request would not -9- unreasonably burden the public agencies to provide roads and streets, sewers, water, drainage, school improvements, and police and fire protection. The proposed change of zone would allow for uses which would complement the uses in this area. The subject request is not contrary to Chapter 205A, Hawaii Revised Statues, relating to Coastal Zone Management. The property is not located in the Special Management Area. The site is located mauka of the Queen Kaahumanu Highway, is not an oceanfront property, and will not be impacted by coastal hazard and beach erosion. There is no record of a designated public access that traverses the property. According the applicants, no valued cultural, historical or natural resources exist on the property and there is no evidence of any traditional and customary Native Hawaiian rights being practiced on the site. Thus, it is not anticipated that the proposed request will have any adverse impact on cultural or historical resources in the area. In view of the Hawaii State Supreme Court's "PASH" and "Ka Pa'akai O Ka Aina" decisions, the issue relative to native Hawaiian gathering and fishing rights must be addressed in terms of the cultural, historical, and natural resources and the associated traditional and customary practices of the site: Investigation of valued resources: The following information was submitted for review: • Archaeological Inventory Survey of the Kau Development Area, Rechtman Consulting, June, 2003 • Biological Reconnaissance, Lands of Kau, North Kona, Hawaii, Patrick Hart, Ph.D. October, 2003 • Biological Assessment of the Lava Tubes of the Hiluhilu Development Area, Kau, North Kona, Hawaii, Francis G. Howarth, David J. Preston, Shelley Anne James, December 2003 • Hiluhilu Cave Fauna Survey (Hawaii Biological Survey, December 2003) • Cultural Impact Study, Maria E. Ka'imipono Orr, December 11, 2003 • Integrated Natural Cultural Resource Management Plan (INCRMP) for Palamanui, March 2005 51#11 The valuable culturaL historical and natural resources found in the rezoning area: An Archaeological Inventory Survey was completed by Rechtman Consulting, LLC and finalized in June, 2003. Of the 83 archaeological sites recorded during the study, 12 are recommended for preservation, 30 are recommended for data recovery, and no further work is recommended for the remaining 41 sites. Twenty-two (22) of the eighty-three (83) sites, as well as a 65 -acre dryland native forest will be preserved, and valuable cave areas and certain view planes will be managed under an Integrated Natural Cultural Resources Management Plan (INCRMP) as part of this project. The applicant has stated that work will cease and the Planning Department will be notified if any unanticipated archaeological features or sites are discovered during the course of project development. Possible adverse effect or impairment of valued resources: The Final Environmental Impact Statement accepted by the State Land Use Commission on October 7, 2004, addressed probable impacts and mitigative measures as a result of project development. Although the project will have a significant impact on the land, some impacts are positive, and many negative impacts can be mitigated. Established standards and controls that require developers to consider and manage potential negative effects should effectively limit and mitigate foreseeable long-term impacts. Native plants could be destroyed by construction and ground alteration. However, the applicant is proposing a "Constraints Area", preservation areas which include the dry forest preserve areas and archaeological sites and cave areas. The property does not abut the shoreline, therefore Hawaiian gathering and fishing rights is not an issue. Based on the above findings, approval of the Change of Zone request from Open (0) and Agricultural 3 -acres (A -3a) to Project District (PD) would result in an appropriate land use pattern and further the public benefit. The accompanying draft bill to amend Section 25-8-3 (North Kona Zone Map) is provided for your favorable consideration. Please note the proposed conditions of approval attached to the draft bill. -11- CHi1uhi1uREZ-draft2. doc-12/13/05 (revised 1/12/06) HILUHILU DEVELOPMENT LLC CHANGE OF ZONE APPLICATION (REZ 05-010) CONDITIONS OF APPROVAL A. The applicant, successors or assigns shall be responsible for complying with all of the stated conditions of approval. B. The applicant shall comply with all conditions of approval of the State Land Use Commission's Decision and Order (Docket No. A03-744) dated May 19, 2005. C. The applicant shall comply with the conditions as set forth in the Water Agreement between K -W Kau, LLC and the Water Commission of the County of Hawaii dated June 15, 1999. D. The project shall consist of a maximum of 725.2 acres for single-family and multi -family residential, commercial uses, hotel, 18 -hole golf course, dry forest preserve, archaeological and cave preserve areas, active and passive parks, a trail system and supporting infrastructure. E. The maximum number of residential units allowed shall be 1,116 units, including the on-site affordable housing units. F. The maximum number of hotel rooms shall be 120. G. Commercial spaces for medical, office, retail, classrooms and health related uses and hotel shall be limited to 102 acres. H. Active and passive parks (Open, Park and Preservation) shall be developed on a minimum of 177.8 acres. A "Constraints Area" which includes the 65 -acre dry forest preserve, archaeological sites/cave and park areas, shall be set aside in the project area. I. The uses allowed in the Project District shall be all permitted uses allowed by right in the RS, RM, CN and CV zoned districts, and a golf course and related facilities. Uses allowed by Use Permit in the CV district may be allowed. J. A detailed Master Plan of the Project District, which includes the location and number of residential lots and units, hotel, commercial uses, parking, golf course, open space and recreational areas and other related improvements on the property, shall be submitted to the Planning Director within two (2) years from the effective date of the Project District Ordinance or prior to submission of plans for plan approval or subdivision approval, whichever occurs first. K. Substantial construction of the proposed development shall commence within five (5) years from the effective date of the Project District Ordinance. "Substantial construction" means the actual start of construction of project infrastructure under a bona fide contract of not less than ten million dollars ($10,000,000.00). Prior to construction, the applicant, successors or assigns shall secure Final Plan Approval for the proposed development from the Planning Director in accordance with Section 25-2-70, Chapter 25 (Zoning Code), Hawaii County Code, prior to the commencement of construction of the proposed uses. Plans shall identify proposed structures, fire protection measures, paved accesses and parking stall, and other improvements associated with the proposed uses. L. The following design standards shall apply: 1. Landscaping for the development shall comply with the Planning Department's Rule No. 17, Landscaping Requirements. 2. The height limit for structures within the project area shall not exceed the following: a. Single-family residential development: 35 feet b. Multiple -family residential and hotel developments: 45 feet C. Office and retail commercial development: 40 feet. 3. The minimum off-street parking and loading space requirements of Chapter 25, Hawaii County Code shall be complied with, including compliance with the American Disabilities Act (ADA) requirements. M. The variances from Chapters 23 (Subdivision) and 25 (Zoning), Hawaii County Code, as presented in Planning Department Exhibit 2 (Applicant's November 21, 2005 letter with attached Tables pages 1 to 6 related to Variance Requested from Sections in Subdivision and Zoning Codes, and Applicant's Figure 2 - Conceptual Character of Town Center/Residential Village Center, Figure 3a - Residential Village Center Alternative: 4,000 SF Lot, Figure 3b - Residential Village Center Alternatives: 6,000 SF Lot, Figure 4a - Conceptual Plan: Roadway Concepts - -2- Dedicable, Figure 4b - Conceptual Plan: Roadway Concepts - Nondedicable, and Figure 5 - Residential Village Center Alternatives: Zone Lot Line Concepts) shall be allowed under the Project District. The applicant shall submit detailed plans to the Planning Director showing street designs and cross-sections, and adjacent building designs, with the Master Plan. The Planning Director may require modifications to the street sections to provide sufficient on -street parking where the plans do not provide adequate off-street parking (such as the 4,000 -square foot lots with a one -car garage and insufficient setbacks to allow parking in driveways), and may require further changes necessary for public safety and convenience. All roads built with the variances allowed under this condition will be non-dedicable. With regard to the requested zero line building setbacks, the applicant shall conform to the Uniform Building Code requirements (1991 Edition). As part of the Master Plan, the applicant shall submit plans for pedestrian movement through the project district, which shall identify areas where sidewalks will be included to permit safe pedestrian access to the Town Center and other important points in the development. N. To ensure that the project is developed according to its stated goal of creating a mixed use residential community, the project must include residential development. The project shall have at least one residential unit for every 600 square feet of nonresidential development (under roof). Space used by the University shall not be included in the calculation of nonresidential space. There is no minimum requirement for the nonresidential development. O. The permitted hotel, designated as the "University Inn and Conference Center," shall function as a business hotel and in conjunction with University operations. It shall not be operated under a time-share plan or other arrangement that provides for shared ownership of individual units on the basis of time intervals, or club membership allowing periodic use. P. Occupancy of the hotel shall not be granted until the construction of the Queen Kaahumanu Highway, Phase II widening improvements to four lanes from Kealakehe Parkway to the Kona International Airport at Keahole has been -3- secured by the state entering into a construction contract for the improvements, or by the University commencing operations on the Palamanui property or adjacent state property, whichever occurs first. Q. No retail commercial structures may be located closer than 1,500 feet from the Queen Kaahumanu Highway right-of-way. R. To ensure that the commercial development corresponds with the applicant's representations regarding neighborhood -scale commercial development, no single retail establishment shall have more than 45,000 square feet of developed area under roof. S. Total retail space shall not exceed 45,000 square feet under roof until the construction of the Queen Kaahumanu Highway, Phase II widening improvements to four lanes from Kealakehe Parkway to the Kona International Airport at Keahole has been secured by the state entering into a construction contract for the improvements. The square footage of improvements leased to the University of Hawaii shall not count against this limit. T. The golf course shall be developed on a maximum of 180 acres. As represented, the applicant shall register its course with Audubon International and use its best efforts to obtain and keep Audubon International certification at the "Silver" level for the golf course development. The applicant shall prepare an integrated golf course management plan ("IGCMP") for the review and approval of the Planning Director. The IGCMP shall address the design, construction, maintenance, and operation of the golf course. The design, construction, maintenance, and operation of the golf course shall be in compliance with the IGCMP. The IGCMP shall contain specific best management practices (BMPs) for the golf course. The goal of the IGCMP will be to: 1) minimize the off-site transport of nutrients, sediments, herbicides, and pesticides; 2) minimize the use of fertilizers, herbicides, and pesticides through integrated pest management, fertility testing, and proper course design; 3) implement surface and groundwater conservation; and 4) operate safely considering the public usage in the vicinity. The IGCMP shall contain, at the minimum, the following requirements: -4- 1. Operator shall develop and implement an integrated pest management plan with the intent of minimizing use of herbicides and pesticides. The operator shall use the least toxic chemical control at the lowest effective dosage, and shall use spot application wherever feasible. The integrated pest management plan shall be reviewed by an IPM certified specialist. 2. A qualified golf course superintendent shall control the fertilization and use of agricultural chemicals. 3. All fertilizers, pesticides, and herbicides shall be stored in a covered maintenance area designed to contain any spill with structural barriers. 4. Equipment wash area shall be set up so that oil and grease can be removed before it enters the storm drainage system. U. The applicant shall set aside a "Constraints Area" including the 65 -acre dry forest preserve, archaeological sites/cave and park areas on the project site. V. The applicant shall develop one five -acre active park site prior to the occupancy of the first residential unit on the property; a second five -acre park site prior to the occupancy of the 301" home, and a third five -acre park site prior to the occupancy of the 601't home. Each park site shall be developed with an active play field, such as a soccer or baseball field, restrooms, and parking area, with the specific improvements to be determined in consultation with the Department of Parks and Recreation. Such parks shall be dedicable to the County. W. There shall be an 800 -foot setback from the Queen Kaahumanu Highway. No structures, other than those allowed under Condition No. 7 of the Land Use Commission's Decision and Order, shall be allowed within the 800 -foot setback area. A copy of the metes and bounds description for this open space area, and proposed covenant(s) shall be submitted to the Planning Director for review and approval prior to receipt of Final Plan Approval or land alteration activities, whichever occurs first. The approved covenant(s) shall be recorded in the Bureau of Conveyances prior to the issuance of Final Plan Approval, or land alteration activities, whichever occurs first. A copy of the recorded covenant(s) shall be provided to the Planning Department. -5- X. All project utilities shall be underground. Y. The applicant shall construct the following roads to access other properties and the regional road system: 1. Main project access road from the Queen Kaahumanu Highway to the eastern boundary of the project. (Road "1" on attached map Exhibit "B"): The main project access road shall intersect with the Queen Kaahumanu Highway at a location approved by the State Department of Transportation, and shall connect with Makalei Drive at the eastern (mauka) end. The road shall be constructed on an 88 -foot wide right-of- way, as a two-lane road, to county-dedicable standards as a collector road, except that design standards shall be varied to permit the connection with Makalei Drive without encroaching into the Lowland Dry Forest Preserve. The connection with Makalei Drive shall be designed to not encroach into the Lowland Dry Forest Preserve. The grade shall not exceed 10%, except near the connection with Makalei Drive. At the Queen Kaahumanu Highway, the intersection shall be improved as required by the Department of Transportation, but shall include, at a minimum, a deceleration and an acceleration lane on Queen Kaahumanu Highway, a left -tum lane on Queen Kaahumanu Highway, a refuge lane for vehicles turning left into Queen Kaahumanu Highway, and a dedicated right -turn and left -turn lane from the main project access road to Queen Kaahumanu Highway. If warranted, at the request of Department of Transportation, the applicant shall install traffic signals and a second left -turn lane from the main project access road to the Queen Kaahumanu Highway. 2. "Mid -Level Road" from the main project access road to Kaiminani Drive (Road "2" on Exhibit "B"): The applicant shall construct the mauka half - section of a 120 -foot wide right-of-way to county-dedicable standards as a collector road. The applicant shall construct the intersection at Kaiminani Drive meeting with the approval of the Department of Public Works, but the intersection shall include a left -turn lane on Kaiminani Drive. -6- 3. A north -south collector road at approximately the 600 -foot elevation (Road "3" on Exhibit "B'): The north -south collector road shall be designed to function as a portion of a future collector road (Road "4") connecting Highway 190 with the main project access road and the Queen Kaahumanu Highway. Road "3" shall be constructed to county-dedicable standards as a collector road with an 88 -foot right-of-way. The applicant shall construct the intersection between Road "3" and the main project access road meeting with the approval of the Department of Public Works. 4. The applicant shall participate in the cost of constructing a road from the north end of Road "3" to Highway 190 (Road "4" on Exhibit "B"). If another private developer is required to participate in building Road "4" as a condition of land use approvals, the applicant's share shall be limited to any portion of the road on state land between the other private developer and the applicant's property, and shall be one-half the cost of that portion. If Road "4" is constructed with public funds without the participation of another private developer, the applicant's share shall be one-third of the entire cost. The design standards and maximum grade of Road "4" shall be determined by the Director of Public Works after consultation with the Planning Director. 5. A road to connect south to the future extension of Holoholo Street - Nana Street (Road "5" on Exhibit "B"): The applicant shall build Road "5" within the project area to county-dedicable standards as a minor street, and it shall intersect with the main project access road (Road "1"). 6. The Planning Director may require other local streets_ within the project to provide local connections to the adjoining property to the north and south as a condition of subdivision approval or plan approval. At the western (makai) end of Makalei Drive, the applicant shall provide safety improvements necessary to make a safe transition to the Palamanui section, which may include, but are not limited to, rumble strips and -7- establishing superelevation for the curve, as required by the Department of Public Works. 8. The following road improvements shall be completed before a certificate of occupancy is issued for any portion of the subject property: (a) the main project access road (Road "I"), at least from the Queen Kaahumanu Highway to the intersection with the Mid -Level Road (Road "2"); (b) the intersection of the main project access road with the Queen Kaahumanu Highway; and (c) the Mid -Level Road (Road "2) from the main project access road to Kaiminani Drive, and the Kaiminani Drive intersection. 9. The following road improvements shall be secured by bond or other surety meeting with the approval of the Planning Director to guarantee their completion within two (2) years after the issuance of a certificate of occupancy for any portion of the subject property: (a) the remaining portion of Road "I", including any necessary improvements to the lower portion of Makalei Drive; (b) Road "3", and (c) Road "5". Z. There shall be no direct access from individual lots to collector street. AA. Construction vehicles shall not utilize Makalei Drive. BB. All development generated runoff shall be disposed of on-site and shall not be directed toward any adjacent properties. A drainage study shall be prepared and submitted to the Department of Public Works prior to issuance of Final Plan Approval. Drainage improvements shall be constructed, meeting with the approval of the Department of Public Works, prior to issuance of a certificate of occupancy. CC. A Solid Waste Management Plan shall be prepared and submitted for approval to the Department of Environmental Management prior to submitting plans for Plan Approval review. Approved recommendations and mitigation measures shall be -8- implemented in a manner meeting with the approval of the Department of Environmental Management. DD. A wastewater treatment system shall be constructed, meeting the approval of the State Department of Health and/or Department of Environmental Management, whichever is applicable. All wastewater shall be treated at an approved wastewater treatment plant, to a minimum of secondary treatment, with R-1 effluent, unless a greater level of treatment is required by the Department of Health. Wastewater shall be used for irrigation of landscaping or other beneficial reuse to the maximum extent feasible. EE. The applicant shall allow the University of Hawaii to connect with its wastewater and water supply systems on terns consistent with the April 16, 2004 Memorandum of Agreement, or any subsequent amendments. FF. An Emergency Response Plan shall be submitted to the Civil Defense Agency for review and approval, prior to the issuance of a certificate of occupancy. GG. 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 Administrator of the Office of Housing and Community Development prior to receipt of Final Plan Approval and/or Final Subdivision Approval, whichever occurs first. The reduction in minimum lot sizes and the increase in density permitted by Section 11-8, Hawaii County Code, for affordable housing built on-site shall not apply to this project district because the reduction in minimum lot sizes has already been incorporated into the conditions of this project district zoning, and the limit on residential units stated is meant to include affordable units built on-site. HH. Should any unidentified sites or remains such as artifacts, shell, bone, or charcoal deposits, human burials, rock or coral alignments, pavings or walls be encountered, work in the immediate area shall cease and the Department of Land and Natural Resources -Historic Preservation Division (DLNR-HPD) shall be immediately notified. Subsequent work shall proceed upon an archaeological -9- clearance from the DLNR-HPD when it is found that sufficient mitigation measures have been taken. H. The applicant shall implement the Integrated Natural Cultural Resource Management Plan (INCRMP) dated May 19, 2005, for the Lowland Dry Forest Preserve (Exhibit "D" and "F" to the INCRMP). Preservation actions, with fire control as a priority, shall begin no later than six months after the effective date of this ordinance. JJ. The applicant shall protect all uhiuhi and `aiea trees, and shall use best efforts to preserve the major stands of wiliwili trees. KK. The applicant shall implement the INCRMP for the cave areas (Exhibit "E" to the INCRMP). LL. The applicant shall implement the Archaeological Preservation Plan (Exhibit "C" to the INCRMP), along with any amendments and modifications thereto as approved by the State Historic Preservation Division. MM. The Planning Director may approve modifications to the INCRMP conforming to the general purposes of the INCRMP, after consultation with the DLNR- DOFAW. NN. To ensure that the property will be developed as an integrated project, the applicant shall establish covenants to all deeds to any parcels, except parcels to be conveyed to individual residents, that require a master association to administer the development of the project district in accordance with the conditions of land use approvals. The covenants shall give notice that the various parcels are subject to an overall zoning that requires coordinated development. Until the master association is formed, the applicant shall be responsible for ongoing duties such as the management of the Dry Forest Preserve Area and other stewardship duties, and for contingent project responsibilities such as contributing to the construction of Road "4". After the formation of the master association, those responsibilities shall be transferred to the master association. 00. The applicant shall make its fair share contribution to mitigate the potential regional impacts of the property with respect to parks and recreation, fire, police, -to- solid waste disposal facilities and roads. The fair share contribution shall become due and payable prior to receipt of Final Plan Approval. The fair share contribution for each lot shall be based on the actual number of residential units developed. The fair share contribution in a form of cash, land, facilities or any combination thereof shall be determined by the County Council. The fair share contribution may be adjusted annually beginning three years after the effective date of this ordinance, based on the percentage change in the Honolulu Consumer Price Index (HOPI). The fair share contribution shall have a maximum combined value of $6,411.25 per multiple family residential unit ($9,991.20 per single family residential unit). The total amount shall be determined with the actual number of units according to the calculation and payment provisions set forth in this condition. The fair share contribution per multiple family residential unit (single family residential units) shall be allocated as follows: 1. $3,162.49 per multiple family residential unit ($4,817.93 per single family residential unit) to the County to support park and recreational improvements and facilities; 2. $99.95 per multiple family residential unit ($232.42 per single family residential unit) to the County to support police facilities; 3. $307.46 per multiple family residential unit ($459.06 per single family residential unit) to the County to support fire facilities; 4. $137.04 per multiple family residential unit ($200.98 per single family residential unit) to the County to support solid waste facilities; and 5. $2,704.31 per multiple family residential unit ($4,280.82 per single family residential unit) to the County to support road and traffic improvements. In lieu of paying the fair share contribution, the applicant may contribute land and/or construct 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 review and recommendation of the Planning Director, upon consultation with the appropriate agencies and approval of the County Council. The applicant's cost of constructing the Mid -Level Road (Road "2") and the applicant's share of constructing Road "4", shall be credited against any fair share assessment for roads. PP. Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for imposition of exactions or the assessment of impact fees, conditions included herein shall be credited towards the requirements of the Unified Impact Fees Ordinance. QQ. Comply with all other applicable County, State and Federal laws, rules, regulations and requirements. RR. An annual progress report shall be submitted to the Planning Director prior to the anniversary date of the approval of this Project District Ordinance. The report shall include, but not be limited to, the status of the development and the extent to which the conditions of approval are being satisfied. This condition shall remain in effect until all of the conditions of approval have been satisfied and the Director acknowledges that further reports are not required. SS. An initial extension of time for the performance of conditions within the ordinance may be granted by the Planning Director upon the following circumstances. The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant, 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. Granting of the time extension would not be contrary to the original reasons for the granting of the Project District. 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). 5. If the applicant should require an additional extension of time, the Planning Department shall submit the applicant's request to the County Council for appropriate action. Should any of the conditions not be met or substantially complied with in a timely fashion, the Planning Director may initiate rezoning of the subject area to its original or more appropriate designation. -13- COUNTY OF HAWAI`,i� ORDINANCE NO. STATE OF HAWAII BILL NO. (PLANNING DEPT) AN ORDINANCE AMENDING SECTION 25-8-3 (NORTH KONA ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE 1983 (2005 EDITION), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL (A -3a) AND OPEN TO PROJECT DISTRICT (PD) AT KAU, NORTH KONA, HAWAII, COVERED BY TAX MAP KEY 7-2-5:1. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Section 25-8-3, Article 8, Chapter 25 (Zoning Code) of the Hawaii County Code 1983 (2005 Edition), is amended to change the district classification of property described hereinafter as follows: The district classification of the following areas situated at Kau, North Kona, Hawaii, shall be Project District (PD): PARCEL "A": Beginning at the northwest corner of this parcel, being also along the east side of Queen Kaahumanu Highway (Project No.: 19 BC -01-71), the coordinates of said point of beginning referred to Government Survey Triangulation Station "AKAHIPUU", being 9,071.21 feet North and 23,751.69 feet West and thence running by azimuths measured clockwise from true South: 1. 2910 46' 30" 5726.03 feet along the Kukio-Goma Government Tracts; 2. 170 56' 2314.09 feet; 3. 1150 03' 36" 5449.47 feet along the Government Lands of Makaula; -I- 4. 1890 19' 55" 2044.65 feet along the east side of Queen Kaahumanu Highway (Project No.: 19 BC - 01 -71) to the point of beginning and containing an area of 274.861 Acres. PARCEL "B": Beginning at the northwest corner of this parcel, being also along the south side of Kukio-Ooma Government Tracts, the coordinates of said point of beginning referred to Government Survey Triangulation Station "AKAHIPUU", being 6,947.06 feet North and 18,434.23 feet West and thence running by azimuths measured clockwise from true South: 1. 2910 46' 30" 784.96 feet along the Kukio-Goma Government Tracts; 2. 2800 28' 22" 2806.44 feet along the Kukio-Goma Government Tracts; 3. 2900 55' 24" 3323.43 feet along the Kukio-Goma Government Tracts; 4. 170 14' 2844.54 feet along Lots 36, 37, 38, 44, 15, 14, 13, 12, 11, 10 and 9 of Makalai Estates — Phase 2 (File Plan 2294); 5. 1000 15' 30" 1838.50 feet along the Government Lands of Makaula; 6. 1150 03' 36" 5137.19 feet along the Government Lands of Makaula; 7. 1970 56' 2314.09 feet to the point of beginning and containing an area of 450.343 Acres. All as shown on the map attached hereto, marked Exhibit "A" and by reference made apart hereof. SECTION 2. In accordance with Section 25-2-44, Hawaii County Code 1983 (2005 Edition), the County Council finds the following conditions are: (1) Necessary to prevent circumstances which may be adverse to the public health, safety and welfare; or -2- (2) Reasonably conceived to fulfill needs directly emanating from the land use proposed with respect to: (A) Protection of the public from the potentially deleterious effects of the proposed use, or (B) Fulfillment of the need for public service demands created by the proposed use. SEE ATTACHED CONDITIONS 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. SECTION 4. This ordinance shall take effect upon its approval. Hawai `i Date of Introduction: Date of 1 st Reading: Date of 2nd Reading: Effective Date: INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII -3- EXHIBIT 11/11 (HILUHILU DEVELOPMENT, LLC:1168) . II. e ll. Il. I t I n^ 1 I' , I OPEN 4' A 59a 1 `1 jL _.MIMI ±AGRICULTURAL 000.� o TO PROJECT DISTRICT (!D 450.343 ACRLZS og Pts S- d.• d 115{111L5 4 •�i- _ x1111111•. A 5a `11111iSe'i t ' 111.1 ..niillul' n 1111 IIx 1 �- =1111ii,I`iiun„Innl`•,xxxn� OPEN IIIISIIIIIIIIIIIIMI ����� r� Jui %4i1I i•• .11•lS�! 11pp.�iipiill:i.9�1�'_.•-- ��.�JI Ln u��¢+f � f 44 .II%/Ii/ \ OIIIII IInMI•`I�111 �.�'i.��l�- .. .• 1-•L � � 1 .1 IS•��I IM 11111111111 1 a � •`'yliS.�liiri i::i1 :. II•n Ann rt:S'1•z2�_in,.0 ..: R Tulbt^�,:'. l?.,na•13 ni::`a=.:_: r��L;�-11 .112 1 nnm ` � •' 1► s L• te ” I'nttAW 1 , •r. L ` n nn nnnnn n l l ` 'r ul. _ i • 'T111141;,� ' 111 .111111111.111�1111�:I�JICJJ1111'.P �� lot n, 1�Y OPEN II . I I II ..11 •11 11 . 1 AMENDING SECTION 25-8-3 (NORTH KONA ZONE MAP) ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE 1983 (2005 EDITION), BY CHANGING THE DISTRICT CLASSIFICATION FROM • • AND •' • TO •'• 'D AT ••KONA, HAWAII BY: PLANNING DEPARTMENT COUNTYPREPARED OF 7-2-005:001Date: / 2005 EXHIBIT 11/11 (HILUHILU DEVELOPMENT, LLC:1168) EXHIBIT "B" (HILUHILU DEVELOPMENT, LLC) V � I = _ v \ o r m m O m � , a) coy- �T�� IIS mss-a�J r T7,1 0 0.5 1 Miles 2 3 ROADWAY ALIGNMENTS - CONCEPTUAL Date- January 11, 2006 EXHIBIT "B" (HILUHILU DEVELOPMENT, LLC)