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<br /> <br /> <br /> <br /> <br /> <br /> <br /> Steven S.C. Lim <br /> Carlsmith Ball LLP <br /> 121 Waianuenue Ave. <br /> P.O. Box 686 <br /> Hilo, Hawaii 96721 <br /> <br /> March 25, 2008 <br /> <br /> In Re: Kohala LLC Property <br /> <br /> Dear Steve, <br /> <br /> You have asked that I review certain documents, memoranda and <br /> correspondence in connection with the proposed development by Kohala LLC of a 50-lot <br /> single-family home development on a parcel containing approximately 37 acres in the <br /> County of Hawaii. I understand that the State Land Use Commission has classified the <br /> land in the urban district and the County has classified the land in the RS-15 Single <br /> Family Residential district, but that the County, at the insistence of the County Planning <br /> Director, may soon reclassify the parcel as RA-5a, Residential and Agricultural district. <br /> The result would be to reduce the number of allowable single-family lots from at least <br /> 501 to 7. I further understand that Kohala LLC purchased the subject parcel shortly after <br /> it was rezoned to its present classification, and that the parcel is being reclassified <br /> ostensibly because of the lapse - nearly 5 years ago - of a zoning condition requiring the <br /> landowner to obtain final subdivision approval for the proposed 50-lot residential <br /> development within five years of the said rezoning. Lastly, I further understand that the <br /> applicable plans for said parcel are virtually unchanged from the date - more than 10 <br /> years ago - that the County reclassified the parcel to its present zoning district, that the <br /> principle reasons given by the Planning Director (besides the lapse of the subdivision <br /> condition) have mainly to do with open space, view preservation and natural beauty, but <br /> that the County Planning Commission found that the proposed 50-lot development would <br /> "not have any adverse environmental or ecological effect" nor any "substantial adverse <br /> impacts on the surrounding area" and would in fact be "consistent with the objectives and <br /> policies of Chapter 205A, HRS, relating to Coastal Zone Management" during the <br /> course of evaluating - and granting - a request for a coastal zone special management <br /> area permit, also approximately 10 years ago. <br /> There are at least two principle problems with the proposed downzoning <br /> which decreases the allowable residential density by over 85%: the downzoning raises (1) <br /> serious partial regulatory taking issues under the 5`h Amendment to the U.S. Constitution, <br /> and (2) serious substantive due process of law issues under the 14`h Amendment to the <br /> U.S. Constitution. The documents you provided also indicate that the County's actions <br /> with respect to Kohala LLC may give rise to grave procedural due process issues under <br /> <br /> ' Although approximately 107 lots would be pemtined on the 38-acre property under RS-15 zoning, <br /> I understand that the actual pemnitted density under Ordinance 97-102 and SMAP No. 379 is 50 lots. <br /> <br /> <br /> <br /> EXHIBIT A <br />