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<br /> <br /> <br /> <br /> <br /> <br /> Pete Hoffmann, Chairman <br /> and Members of the County Council <br /> Page 3 <br /> <br /> the developer, Oceanside 1250, to construct a public highway at its expense, from <br /> Napo'opo'o to Keauhou. This Mamalahoa Bypass, in similar form, had been planned <br /> from at least the 1960's, and is included in the County General Plan facilities maps in the <br /> 1971, 1989 and 2005 General Plans. The only intermediate link from the Mamalahoa <br /> Highway to the Bypass was to be Haleki'i Street. The Haleki'i Street connection is <br /> shown on the General Plan facilities map as amended by Ordinance No. 06 153 in 2006. <br /> The developer was also required to construct the extension of Haleki'i Street to the <br /> Mamalahoa Bypass. <br /> <br /> In 1999 and 2000, the Hokuli'a developer, Oceanside 1250, obtained subdivision <br /> approvals for the first two increments of the Hokuli'a project and began to build the <br /> subdivision infrastructure. The developer had also acquired most of the necessary right- <br /> of-way to build the Mamalahoa Bypass Highway from neighboring landowners through <br /> negotiation. <br /> <br /> In late 2000, however, a lawsuit was filed against Oceanside 1250 and some <br /> governmental parties. The lawsuit was eventually amended to include claims that the <br /> project did not conform to the state land use law regarding the use of land in the <br /> agricultural district. The Third Circuit Court, Kona Division issued a decision in 2003 <br /> upholding some of the plaintiffs' claims based on Chapter 205 HRS, and enjoined further <br /> work on the development, including the construction of the Bypass Highway within the <br /> Hokuli'a project. (At that point, the Highway had been completed from Keauhou almost <br /> to the Haleki'i Street intersection within the Hokuli'a project boundaries, so the <br /> injunction effectively stopped further work on the Bypass Highway) The decision was <br /> appealed by Oceanside 1250 and governmental parties, including Hawai'i County. In <br /> 2006, while the case was still on appeal, the plaintiffs and other parties entered into a <br /> <br /> settlement. The settlement allowed the project to continue, with a reduction in the <br /> number of homesites from 730 to 670, and a number of other agreements. <br /> <br /> One landowner with property needed for the Mamalahoa Bypass refused to grant a <br /> right-of-way through negotiations, and condemnation actions were filed to obtain the <br /> property using the County's powers of eminent domain. The property in question borders <br /> the Hokuli'a project to the south and is about 1,000 feet wide where it would be crossed <br /> by the Mamalahoa Bypass. In October, 2007, the Third Circuit Court, Kona Division, <br /> entered ajudgment permitting the County to acquire the right-of-way through the Coupe <br /> property, and setting the amount of compensation. This decision has, however, been <br /> appealed. The timeframe for completing the Bypass to the Napo'opo'o Junction is <br /> therefore uncertain, although the completion is secured by bonds taken out by the <br /> Oceanside 1250 development as a condition of subdivision approval. <br /> Haleki'i Street is currently about 1/2 mile long between its intersection with <br />