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COM 0766.021 2004-2006
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COM 0766.021 2004-2006
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Last modified
5/12/2008 8:42:17 AM
Creation date
5/9/2008 12:05:29 AM
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Communications
Communications - Type
COM
Communications - Council Term
2004-2006
Communication
0766
Point
021
Author
Richard A. Wheelock, SCD Kona 108 LLC
Communications - Referred To
COUNCIL
Comments
Council: Close file - 11/15/06 Council: Postponed - 10/31/06
Document Relationships
AGE COUNCIL 10/31/2006 2004-2006
(Related)
Path:
\Council Records\Agendas\2004-2006\Council
AGE COUNCIL 11/15/2006 2004-2006
(Related)
Path:
\Council Records\Agendas\2004-2006\Council
BIL 251 Draft 02 2004-2006
(Related)
Path:
\Council Records\Bills\2004-2006
COM 0766.000 2004-2006
(Related)
Path:
\Council Records\Communications\2004-2006
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<br /> <br /> <br /> time, and no objections were raised by them at the time. By the time HDC started construction of the <br /> Lowes site in 2001, many more homes had been built in MG and some of the residents were upset that <br /> a Lowes was going to be near their homes. In spite of the County of Hawaii's requirements that the <br /> roadway from QKH and the planned mid-level road be connected to adjoining projects (see attached <br /> documentation related to the MG PUD approval), and in spite of the State DOT's policy of limited <br /> access to QKH and their plan to have all the adjoining properties use this access, and in spite of legal <br /> obligations allowing use of this lower roadway built on a 60 foot wide County standard roadway lot to <br /> dedicable standards, some residents formed a committee called The Concerned Citizens of Malulani <br /> Gardens and went to Judge Ronald Ibarra's court to attempt to stop "their" roadway from being used by <br /> others. <br /> <br /> The case was sent into Mediation, overseen by a judge acting as Mediator and attended by Committee <br /> members; Lowes personnel; the insurance company which has an $11,000,000 insurance policy <br /> assuring access on this lower section of road, now known as Malulani Drive ("MD"); Brian Cook; and <br /> HDC. After one and a half days of productive negotiations, the mediation was terminated when the <br /> Committee demanded $10,000,000 in damages. <br /> <br /> The case was sent into binding arbitration, where the Committee and their attorney Michael Matsukawa <br /> argued that the road was owned by the Homeowners Association of Malulani Gardens, or that at least <br /> the Associations' approval of use by others of the road was required. The judge acting as arbitrator in <br /> that case ruled against the Committee and in favor of HDC/Lowes' position, which was that the <br /> Kanuha ohana's parcel and the Lowes and KCE parcels all had the right to use that road. <br /> The Committee then raised new arguments, saying that use of the road should be restricted to <br /> "residential" users only, and not be able to be used by any "commercial" users, and also that the road <br /> can not be dedicated to the County without approval by the Association. These matters were sent to a <br /> different binding arbitration, and heard by a different judge sitting as arbitrator. This judge also ruled <br /> against the Committee's position, and ruled that the road can be used by all and dedicated without the <br /> Association's approval, and that the Committee can not interfere with said dedication. The road is now <br /> in the process of being dedicated to the County of Hawaii. The road has been completed but is not open <br /> as a "through road" yet as the County administration will not allow the barricades to be removed until <br /> the traffic signal at Malulani Drive and QKH is complete, a process that has been lengthened by the <br /> State DOTH decision to add another northbound lane and widen QKH at Malulani Drive. <br /> <br /> The County Administration encouraged HDC to work with MG residents to plan the remaining 108 <br /> acres of land above Lowes, and HDC held a series of meetings with MG residents in April of 2004 <br /> (attended by 32 residents); July of 2004 (attended by 25 residents); and August 2004 (attended by 20 <br /> residents). These meetings determined that HDC was not going to get any support for additional <br /> commercial land; affordable housing; multi-family housing; or even higher-density middle-income <br /> housing from the MG residents attending the meetings, so HDC decided to sell the land to Stanford <br /> Carr and myself, acting as SCD Kona 108 LLC (SCD Kona). <br /> <br /> SCD Kona had meetings with the residents and explained that SCD Kona intended to build a low- <br /> density, large-lot subdivision with either a Salvation Army site and a small number of multi-family <br /> affordable units or no Salvation Army site but a larger number of multi-family units. Based on a vote <br /> taken by MG residents, SCD Kona proceeded to design and plan the KCE project to include a 5-acre <br /> Salvation Army site plus 16 units of affordable housing plus 57 large lots, as SCD Kona had agreed to <br /> do with MG residents. <br /> <br /> It appears that many MG residents have changed their position since then, based on the oral and written <br /> testimony opposing the project, and based on the petitions asking the Council to deny the re-zoning. In <br />
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