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TESTIMONY IN SUPPORT OF RESOLUTION 383-06 BY DAVID TARNAS, MARINE AND COASTAL SOLUTIONS INTERNATIONAL, INC. PLANNING CONSULTANT TO JACOBY DEVELOPMENT, INC. AUGUST 1, 2006 Aloha Thank you for this opportunity to testify in support of Resolution 383-06, which is to direct the Planning Director to study the feasibility of amending the General Plan for the makai lands of Kealakehe to include "Urban Expansion Area," "Resort," and "Open." This feasibility study is needed so that due consideration will be given to the plans of the landowners, DLNR and DHHL, and their partner, Jacoby Development, Inc. for the mixed-use development project on these lands, which would include retail, commercial, hotel and timeshare, marina support industrial, as well as an expanded harbor, a major connector road, a major shoreline park, community and open space. The plan is to create a harbor-front commercial village for residents and visitors alike. This master planned development, including the transient accommodations component of this mixed-use project, is essential to be able to finance these major public infrastructure improvements that are needed for this area of North Kona, such as the connector road to relieve traffic congestion on Queen Kaahumanu Highway, and the new harbor facility. For the success of this state-initiated project, the General Plan designation for this area needs to allow for transient accommodations, and the different land uses proposed in this mixed-use development. As the Kona Community Development Plan process has indicated, the idea of a mixed-use development project where people can live, work and play is preferred. DHHL and DLNR are working with Jacoby Development to plan a mixed-use development project for these lands. Because there is no permanent residential use allowed on these lease lands under the terms of the agreements with the State, transient accommodations are included. Potentially, the permanent residential area for worker housing would be mauka in the same or adjacent ahupua'a, and connected by a shuttle service to the makai lands. In this way the ahupua'a is the area where people can live, work, play and learn. This mix of uses will also provide a stable employment base close to residential growth areas planned for Kona. While these mix of land uses may be allowed in an area designated only as "Urban Expansion Area," as was discussed in yesterday's hearing before the Planning Committee, a "Resort" designation may be more appropriate. This is why it is important to do this feasibility study DLNR and DHHL both went through a formal multi-year process of gathering community input, publishing Requests for Proposals, and competitively selecting the preferred developer. Both state agencies chose Jacoby Development, Inc, and agreed that their adjacent parcels of land could be developed in a master-planned mixed-use project. This process culminated in a master lease with DHHL in January 2004 and a development agreement with DLNR in November 2005. As per these agreements, a master development plan, a core infrastructure plan and a draft EIS are due in November. 39.3$ Tarnas testimony on Res. 383-06 on August 1, 2006 Comm. No. C4 Ref. Topes Ref. Date AUG 0 1 7(ID6