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Kealakehe, North Kona District Kona Kai Ola <br /> Island of Hawaii Environmental Impact Statement Preparation Notice <br /> xY <br /> 1.3.Project Objectives and Proposed Action <br /> The State of Hawaii has established a statewide policy to: <br /> 'r ? create and expand income generating uses on state lands, <br /> ? provide income for maintenance of existing facilities, <br /> 'r ? make State lands more fiscally self-sufficient, and <br /> ? provide expanded recreational and commercial options for the surrounding <br /> community. <br /> The 200-acre DHHL parcel (TMK 7-4-08:72) was transferred to DHHL from the State of <br /> Hawaii in February 2001 as part of a 1994 settlement from the State of Hawaii. The land <br /> r <br /> has been identified by DHHL as the only major DHHL parcel with income-generating <br /> potential on the west side of the Island of Hawaii. Its strategic location relative to Queen <br /> Kaahumanu Highway and proximity to the Kona International Airport, Honokohau Small <br /> Boat Harbor, the town of Kailua-Kona, and municipal infrastructure systems render the <br /> site a prime candidate for generating income that will support the mission of this public <br /> trust. This portion of the project site has been previously planned for development as a <br /> civic center and is designated for commercial development in the DHHL Hawaii Island <br /> Plan of May 2002. It is anticipated that project-generated revenue will help finance <br /> DHHL housing programs on other DHHL land that requires expensive infrastructure for <br /> water, sewer and roads. In January 2004, this land was leased to Kona Marina <br /> ~ Development LLC, an affiliate of Jacoby Development Inc. for a commercial, light <br /> industrial, retail/restaurant, hotel, timeshare, and resort recreation development. <br /> Permanent residential development is not allowed under the lease terms with the state. <br /> DLNR acreage adjacent to the Honokohau Small Boat Harbor was identified by DLNR <br /> as the site for expansion of the existing harbor. The project site is strategically located <br /> for commercial development and to generate income for the State of Hawaii while <br /> providing community and statewide economic and social benefits. Since the cost of the <br /> harbor expansion was too high for the State to finance with public funds, DLNR solicited <br /> proposals from interested developers. <br /> y In November 2005, the Board of Land and Natural Resources signed agreements with <br /> r Jacoby Development, Inc, hereafter referred to JDI. The DLNR and DHHL agreements <br /> with JDI provide that, as part of its proposed master development plan, JDI will arrange <br /> to design and construct two major public infrastructure improvements: the 800-slip <br /> r hazbor contiguous to the existing Honokohau Harbor. Kealakehe Parkway improvements <br /> include: <br /> ? a realignment of the road mauka of Queen Kaahumanu Highway <br /> ? anew intersection with Queen Kaahumanu Highway <br /> rr <br /> ~ lone 2006 7 <br /> <br /> r <br /> <br />