HomeMy WebLinkAboutCOM 0495.000 2008-2010William P. Kenoi
Mayor
August 14, 2009
County of Hawaii
891 Ululani Street • Hilo, Hawaii 96720-3982 • (808) 961-8211 • Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suite 103 • Kailua-Kona, Hawaii 96740
(808) 329-5226 . Fax (808) 326-5663
William T. Takaba
Managing Director
Wally Lau
Deputy Managing Director
Honorable J Yoshimoto, Chairman
and Members of the County Council
County of Hawaii
333 Kilauea Avenue
Hilo, HI 96720
Dear Chairman Yoshimoto and Members:
c
Change of Zone Application (REZ 09-000095)
-
Applicant: Dr. Virgil Place
Request: A -20a to FA -3a
Tax Map Key: 5-9-5:4 and 5CIO
Change of Zone Application (REZ 09-000094)
Applicant: Palamanui Global Holdings LLC
Request: Project District to MCX-20
Tax Map Key: 7-2-5:portion 1
Amendment to Change of Zone Ordinance No. 06-105 (REZ 05-010)
Applicant: Palamanui Global Holdings LLC
Tax Map Key: 7-2-5:portion 1
As required by Chapter 4, Sec. 6-4.3(C), Hawaii County Charter, transmitted herewith for the
County Council's consideration and action are the Planning Commission's letters and enclosures
regarding the above -referenced requests.
Sinceer`elly,
lllia>n enoi
Mayor
Enclosures
cc: Planning Department
l 2 Hawaii County is an Equal Opportunity Provider and Employer Comm. \�1No:
� Ref. Da
1 Ref. Date AUG 18 2009
County of Hawaii
PLANNING COMMISSION
Aupuni Ccnter • 101 Pauahi Street, Suite 3 • Hilo, Hawaii 96720
Phone(908)961-8288 • Fax(808)961-8742
August 14, 2009
The Honorable J Yoshimoto, Chairman
and Members of the County Council
County of Hawaii
333 Kilauea Avenue, 2nd Floor
Hilo, HI 96720
Dear Chairman Yoshimoto and Council Members:
Amendment to Change of Zone Ordinance No. 06-105 (REZ 05-010)
Applicant: Palamanui Global Holdings LLC
Tax Map Key: 7-2-5:portion 1
The Leeward Planning Commission reviewed the above -referenced request at public hearings on
June 30, 2009 and July 24, 2009. At the July 24, 2009 hearing, the Commission voted to
recommend for your approval the proposed legislative bill for an amendment to various
conditions of Ordinance No. 06 105, which rezoned 725.2 acres from Agricultural — 3 acre
(A -3a) to Open (0) and Project District. The property, which is referred to as the Palamanui
Development, is located northeast of the Kona International Airport at Keahole, between Queen
Ka`ahumanu Highway and Makalei Estates Subdivision, Ka`u, North Kona, Hawaii.
The Commission concurs with the following Planning Director's reasons for recommending
favorable consideration of the request:
The applicant requests amendments to Conditions D, G, N, Q, S, X, EE, PP, TT
and UU of Ordinance No. 06 105.
llatvai'i County is an Equal Opportunity Provider and Employer
h
c
CID
c.
r�
cn
The Leeward Planning Commission reviewed the above -referenced request at public hearings on
June 30, 2009 and July 24, 2009. At the July 24, 2009 hearing, the Commission voted to
recommend for your approval the proposed legislative bill for an amendment to various
conditions of Ordinance No. 06 105, which rezoned 725.2 acres from Agricultural — 3 acre
(A -3a) to Open (0) and Project District. The property, which is referred to as the Palamanui
Development, is located northeast of the Kona International Airport at Keahole, between Queen
Ka`ahumanu Highway and Makalei Estates Subdivision, Ka`u, North Kona, Hawaii.
The Commission concurs with the following Planning Director's reasons for recommending
favorable consideration of the request:
The applicant requests amendments to Conditions D, G, N, Q, S, X, EE, PP, TT
and UU of Ordinance No. 06 105.
llatvai'i County is an Equal Opportunity Provider and Employer
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 2
Various conditions under Ordinance No. 06 105 required the applicant to assist
the University of Hawaii in establishing the West Hawaii Center on the adjacent parcel
to the south of the subject site. Improvements required under the conditions include the
construction of the first University building, roads, public water, electrical and waterline
improvements to support the University. The applicant states that current economic
conditions have stalled the planned financing for the initial phases of the project, as the
financing was dependent on a strong market for residential units. The lack of demand has
necessitated the applicant to move forward with the commercial and residential
component to generate the necessary cash flow for the initial financing of the project.
The applicant further states that "some of the conditions intended as security for
performance of conditions have impaired its ability to obtain financing." Amendments to
the requirements will allow the applicant to proceed with the project as well as to support
the university.
In summary, further referenced below, the applicant states/requests:
• Changes in acreages to reflect the 29.92 -acre portion of the property to be
rezoned from Project District to the Industrial -Commercial Mixed district.
• Construction of the initial road ("Road IA") will be completed prior to
issuance of a Certificate of Occupancy for any building within Palamanui.
• Roads to be designated Roads 113, IC, 3A and 5 will be completed as the
project develops.
• Remove the restriction to connect Road IC to Makalei Drive until Road 4
is constructed.
• Road 2 will be completed before occupancy of the first single-family
residential unit.
• Road 4 - modify bonding requirement, add a provision to continue
preparatory work for Road 4, including acquisition of right-of-way and
procuring the centerline of Road 4. Construct Road 4 on the earlier of a)
when the County has the right-of-way for Road 4 and when the applicant
receives the 600'h single-family residential permit; or (b) when third party
funding is provided for at least 50% of the construction cost for the
segment of Road 4 located on private property and after the applicant
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 3
receives the 400'h single-family residential building permit.
• Delete Condition UU, as it unnecessary when the above changes are
approved.
• The public park will be constructed prior to the issuance of a building
permit for the 101" single-family dwelling unit instead of occupancy of the
first residential unit.
The applicant proposes the following amendments to Ordinance No. 06 105:
(material to be deleted is bracketed/struck through, material to be added is
underscored).
Amend Condition D:
"The project shall consist of a maximum of [725.2] 695.282 acres for
single-family and multi -family residential, commercial uses, hotel,
university and public school facilities, dry forest preserve, archaeological
and cave preserve areas, active and passive parks, a trail system and
supporting infrastructure."
Amend Condition G:
"Commercial spaces for medical, office, retail, classrooms and health
related uses and hotel shall be limited to [442] 72.08 acres."
Delete Condition
"[Te enstire that the ffejeet is developed aeeerding to it stated goal of
residential Elevelepffient. The ffE�eet shall have at least one residential
.. .
uafe feet of nonfesidential develop
Spaee used by the University shall not be, inel-ded- in the ealetilation of
f the
Delete Condition Q in its entirety: (Applicant requests deletion of this condition
as Condition No. 7 of Docket No. A03-744 and Condition V of Ordinance No. 06
105 requires an 800 -foot open space buffer from the Queen Ka`ahumanu
Highway)
e
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 4
Amend Condition S:
"The Applicant shall develop one 20 -acre park site prior to [cetne3 of
] the issuance of the 101" building
permit for a single-family residence within the Project. The 20 -acre active
park site shall include two playing fields which may be one baseball field
and one soccer field or two baseball fields or two soccer fields, parking lot
and restrooms, with the specific requirements to be determined in
consultation with the Department of Parks and Recreation. The 20 -acre
active park shall be constructed to county-dedicable standards, and the
county shall accept dedication."
Amend Condition X1, X2, X3, X5, X7, X8; add new 9 and 13: (The current
language requires both offsite and onsite roads at Palamanui to be bonded and
constructed early in the project development. The applicant requests
modifications to the condition to allow installation of the roads as needed.)
"The applicant shall construct the following roads to access other
properties and the regional road system:
1. Project access road from the Queen Ka`ahumanu Highway to the
eastern boundary of the project. (Road "1A, 1B and 1C" on
attached map Exhibit "B"): Road "1 A, 1B and 1C" shall intersect
with the Queen Ka`ahumanu Highway at a location approved by
the State Department of Transportation, and shall connect with
Makalei Drive at the eastern (mauka) end. The road shall be
constructed on an 88 -foot wide right-of-way, as a two-lane road, to
county-dedicable standards as a collector road, from the Queen
Ka`ahumanu Highway to the intersection with Road "3A". From
Road "3A" to the intersection with Makalei Drive, Road "1C" shall
be constructed to county-dedicable standards as a minor street,
except that design standards shall be varied to permit the
connection with Makalei Drive without encroaching into the
Lowland Dry Forest Preserve. The connection with Makalei Drive
shall be designed to not encroach into the Lowland Dry Forest
Preserve. The grade shall not exceed 10%, except near the
connection with Makalei Drive. At the Queen Ka`ahumanu
Highway, the intersection shall be improved in accordance with
one of the following two options:
(a) If a grade separated interchange is available to connect
Road "I A" to Queen Ka`ahumanu Highway when
Applicant is ready to construct Road "IA", Applicant will
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 5
connect Road "1 A" to such interchange and in such case,
Applicant will contribute $1,500,000 to the Department of
Transportation.
(b) If a grade separated interchange is not available to connect
Road "IA" to Queen Ka`ahumanu Highway when
Applicant is ready to make the connection, Applicant shall
improve the intersection at its expense as required by the
Department of Transportation, but shall include, at a
minimum, a deceleration and an acceleration lane on Queen
Ka`ahumanu Highway, a left -turn lane on Queen
Ka`ahumanu Highway, and a dedicated right -turn and left -
turn lane from Road "I A" to Queen Ka`ahumanu Highway.
If warranted, at the requests of Department of
Transportation, the applicant shall install traffic signals and
a second left -turn lane from the main project access road to
the Queen Ka`ahumanu Highway.
2. "Mid -Level Road" from Road "IA" to Kaiminani Drive (Road "2"
on Exhibit `B"): The applicant shall construct the mauka half -
section of a 120 -foot wide right-of-way to county-dedicable
standards as a collector road. The applicant shall construct the
intersection at Kaiminani Drive meeting with the approval of the
Department of Public Works, but the intersection shall include a
left -turn lane on Kaiminani Drive.
3. A north -south collector road at approximately the 600 -foot
elevation (Road "3A" on Exhibit "B"): The north -south collector
road shall be designed to function as a portion of a collector road
(Road "4") connecting Highway 190 with Road "1 A and I B" and
the Queen Ka`ahumanu Highway. Road "3A and 3B" shall be
constructed to county-dedicable standards as a 60 -foot wide
collector road with an 88 -foot wide right-of-way. The applicant
shall construct the intersection between Road "3A and 313" and
Road "I B" meeting with the approval of the Department of Public
Works.
4. New Connector Road to Mamalahoa Highway Project (Road "4 on
attached Map Exhibit "B"). Applicant shall construct Road "4", at
its sole expense, as a two-lane 60 -foot wide county-dedicable
collector road, including shoulders and swales, within an 88 -foot
right-of-way. The final design and maximum grade of Road "4"
shall be determined by the Director of Public Works after
consultation with the Planning Director. Applicant shall not be
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 6
required to install streetlights, except at the intersection with
Highway 190, or utilities. If another private developer is required
to participate in building Road "4" as a condition of land use
approvals, Applicant's share shall be limited to the portion of Road
"4" on Applicant's property and on State land. The County shall
obtain the necessary right-of-way outside of Applicant's property.
5. A road to connect south to the future extension of Holoholo Street
- Nana Street (Road "5" on Exhibit `B"): [The appheafif shall
build Read "5" within the pizaj ledieable
ot....,1....,J...«A it shall . .al. D,..,A urn
The Applicant must reserve the right of way for Road "5" for
future use as a County road. The Applicant must construct the
road to County dedicable standards as a minor street at its sole
expense and dedicate it to the County of Hawaii when a
connection at the southerly boundary of the Project is open.
6. The Planning Director may require other local streets within the
project to provide local connections to the adjoining property to the
north and south as a condition of subdivision approval or plan
approval.
7. At the western (makai) end of Makalei Drive, the applicant shall
provide safety improvements necessary to make a safe transition to
Road "1C", which may include, but are not limited to, rumble
strips and establishing superelevation for the curve, as required by
the Department of Public Works
8. The following road improvements shall be completed before a
certificate of occupancy is issued for any portion of the subject
property, or completion of any single-family homes, whichever
comes first:
(a) Road "IA", at least from the Queen Ka`ahumanu Highway
to the intersection with the Mid -Level Road (Road "2");
and
[(b) the ii}teFseeti ne n3ain prejeet aeeess ,...a ...:t,4 tile
]
[e] (b)the Mid -Level Road (Road "2") from the main project
access road to Kaiminani Drive, and the Kaiminani Drive
intersection.
9. Road "I C" shall be constructed on the earlier of the following
events:
whenever Road "4" is required to be built under other
conditions of this ordinance; and
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 7
prior to the issuance of the 2501 residential building permit
within the Project.
[9-.] 10. The following road improvements shall be secured by bond or
other surety meeting with the approval of the Planning Director to
guarantee that the improvements will be completed within two (2)
years after the issuance of a certificate of occupancy for any
portion of the subject property, or completion of any single-family
homes, whichever comes first:
(a) the remaining portion of Road "I", including any necessary
improvements to the lower portion of Makalei Drive;
(b) Road "3", and
(c) Road "5"
[4&] 1 ] .
date of tl.iq e«.1:....,,ee a ept a y be allowed
RRA "42 by bend ef ether seetirity aeeepted by the Plaflning
Difvete.- ..e later than the :...,,,a„„e of ....e.rt: f: ,...te of eee..paney fe«
an), building, other thafl the UfiiN,ersity eF the State Depaftfflefit e
subdivisien ereating single family residential lots. Gertifieate a
eeeupaney fe« any building et4e« t14An tl.e t niye«S:t)' Of DO'
building shall net be issued, and And -I silh-division approval faf an)
..1.diyisie.. ,. eating single fiam:1., residential lets shall not be
granted, until the fieeessafy Fight ef way fef Read "42 has been
°,tamed f_em an), ether private landewfie. ] Roads "113, 3A and
313” shall be built on the earlier of the following events:
(a) whenever Road "4" is required to be built under other
conditions of this ordinance; and
(b) development of a portion of the Property that requires a
collector road that must be connected to Road "I A".
[44-.112. Makalei Drive is a "minor road" and will not be open to the public
until the collector Road 4 is open for public use.
13. Applicant shall continue preparatory work for design of Road "4"
including working with the County of Hawaii to secure the right
of way for Road "4" across State of Hawaii lands and providing
information necessary for the County of Hawaii to arrange the
right of wayprivately owned lands. As part of the preparatory
work, Applicant will, after obtaining necessary approvals from the
affected landowner "pioneer the center -line" of Road "4" on the
ground no later than June 1, 2011. Applicant shall complete Road
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 8
permit for residences in the Project. If third party fundingfor or at
least 50% of the construction cost for the segment of Road "4" that
is not within the State of Hawaii land is then available. Applicant
will fund the remainder of the construction cost and complete Road
"4" before the building permit for the 401" residential unit in the
Project is issued. The improvements for Road "4" shall be secured
by a $10,000,000 bond or other surety meeting with the approval of
the Planning Director to guarantee that the improvements will be
completed as required by this ordinance. The bond or other surety
shall be made prior to issuance of Final Subdivision Approval for
any subdivision in the Project containing a single family residential
lot.
g. Amend Condition EE, 1
1. "Connectivity with the University of Hawaii 500 acre site:
applicant shall allow the University of Hawaii to connect with its
wastewater and water supply systems. Applicant shall also allow
the University of Hawai `i to connect electrical and
telecommunication systems to facilities installed within the project.
These connectivity sites shall be to the University's satisfaction
and located along its northern boundary on Road "I A".
h. Amend Condition PP:
"The applicant shall make its fair share contribution to mitigate the
potential regional impacts of the property with respect to parks and
recreation, fire, police, solid waste disposal facilities and roads. The fair
share contribution shall become due and payable on the sale or lease of
residential units subject to such contribution. The fair share contribution
shall have a maximum combined value of $6,411.25 per multiple family
residential unit ($9,991.20 per single family residential unit). The total
amount shall be determined with the actual number of units according to
the calculation and payment provisions set forth in this condition. The fair
share contribution per multiple family residential unit (single family
residential units) shall be allocated as follows:
I . $3,162.49 per multiple family residential unit ($4,817.93 per single
family residential unit) to the County to support park and
recreational improvements and facilities;
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 9
2. $99.95 per multiple family residential unit ($232.42 per single
family residential unit) to the County to support police facilities;
3. $307.46 per multiple family residential unit ($459.06 per single
family residential unit) to the County to support fire facilities;
4. $137.04 per multiple family residential unit ($200.98 per single
family residential unit) to the County to support solid waste
facilities; and
5. $2,704.31 per multiple family residential unit ($4,280.82 per single
family residential unit) to the County to support road and traffic
improvements.
The fair share contribution shall be waived for the affordable housing
units. in lieu of paying the fair share contribution, the applicant may
contribute land and/or construct improvements/facilities related to fire,
police, and solid waste disposal facilities within the region impacted by the
proposed development, subject to the review and recommendation of the
Planning Director, upon consultation with the appropriate agencies and
approval of the County Council. With respect to the fair share
contribution for parks and recreation, that contribution for all residential
units will be satisfied when Applicant completes and offers for dedication
all of the land facilities for the active use park described in Condition "U"
above. The fair share contribution for roads will be satisfied upon
completion of the Mid -Level Road (Road "2"), Road "3A and 313", Road
"5" and Road "4".
Amend Condition TT:
"An initial extension of time for the performance of conditions within the
ordinance [ ,] may be
granted by the Planning Director upon the following circumstances.
1. The non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant, successors
or assigns, and that are not the result of their fault or negligence.
2. Granting of the time extension would not be contrary to the
General Plan or Zoning Code.
3. Granting of the time extension would not be contrary to the
original reasons for the granting of the Project District.
4. The time extension granted shall be for a period not to exceed the
period originally granted for performance (i.e., a condition to be
performed within one year may be extended for up to one
additional year).
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 10
5. If the applicant should require an additional extension of time, the
Planning Department shall submit the applicant's request to the
County Council for appropriate action.
Should any of the conditions not be met or substantially complied with in
a timely fashion, the Planning Director may initiate rezoning of the subject
area to its original or more appropriate designation."
j. Delete Condition UU:
"[The Planning Direeter RiEty permit an e3aensiefi ef the six year time limif
to eamplete ._
ad -4" in GRnd_4*Rn X. 10, pres,ided that the requirements e
eempletion ef an), building, inekiding sifigle family residential buildiHgs,
OtheF thafi the University building ar the DOE building.]"
The non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant, successors or
assigns, and are not the result of their fault or negligence. Comprising
approximately 725.224 acres, the Palamanui Project area was reclassified from the
Agricultural (A -3a) and Open district to Project District under Ordinance No. 06
105. Various conditions under Ordinance No. 06 105 required the applicant to
assist the University of Hawaii in establishing the West Hawaii Center on the
adjacent parcel to the south of the subject site. Improvements required under the
conditions include the construction of the first University building, roads, public
water, electrical and waterline improvements to support the University. The
applicant states that financing for the project was dependent on a strong demand
for residential units; however, with changes in economic conditions, the financing
of the initial phases of the project became unavailable. In the absence of funds,
the applicant seeks to proceed with the commercial and residential component of
the project to generate the necessary cash flow to support the initial financing.
The applicant further states that "some of the conditions intended as security for
performance of conditions have impaired its ability to obtain financing."
Amendments to the requirements will allow the applicant to proceed with the
project as well as to support the University.
The Planning Director supports the amendments requested by the
applicant, with the exception to proposed new Condition X 13, for the request to
include the amount of $10,000,000 as a bonding requirement for Road "4". The
Director recommends that the existing wording be retained without the dollar
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 11
amount specified, due to the difficulty in forecasting an exact dollar amount to be
applied in the future. (Due to the late receipt of comments from DPW, the
requested changes were addressed at the hearing.)
After the June 30, 2009, Leeward Planning Commission meeting, the Planning
Department and the Director of Public Works (DPW) met to review the DPW comments
articulated in its June 19, 2009 memorandum. The Planning Department also reviewed
the draft hearing transcript to address some of the concerns expressed by the
Commissioners and members of the public who presented oral and written testimony.
The Planning Department also worked with the applicant in addressing the concerns
expressed at the hearing. The major concerns expressed related to the following:
Timing for the development of the 20 -acre park (original Condition U, new
Condition S): The Planning Department has determined that the applicant's
request to amend this condition by deferring the development of the 20 -acre park
until building permits are issued for 101 single-family residential units is
reasonable. The original'language of this condition required the 20 -acre park to
be developed prior to the occupancy of the first residential unit within the project.
2. Proposed roadways (original Condition X - new Condition V): This condition
was rearranged to make it more organized. The roadways are now identified by
names and numbers as reflected in the Kona Community Development Plan's
official concurrency map (Figure 4-3).
A. One of the concerns expressed related to the timing or lack of timing for
the construction of the roadways. The revised Condition V incorporates
the timing as to when these roadways are required to be constructed. For
example, the new Connector Road (Road 1 Kona CDP), which will
traverse through State and private properties and connect to Highway 190,
should be constructed no later than six (6) years after the entire right-of-
way beyond the applicant's property has been obtained by the County.
Another example, is Kamanu Street from the applicant's property to
Kaiminani Drive should be constructed prior to the first building for the
University of Hawaii is constructed on the adjacent property.
B. Another concern expressed related to the funding for the construction of
the Connector Road (Road 1). The applicant initially requested an
amendment that would require that the improvements for Road 1 be
secured by a $10 million bond or other surety. The Planning Director feels
that an amount should not be included in this ordinance since the amount
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 12
of improvements could be greater than $10 million. The Planning
Director, therefore, feels that the wording as proposed in Condition VA. is
adequate. This condition states, in part, the following:
".....completion of Road I will be secured by bond or other
security meeting the approval of the Planning Director to guarantee
that improvements will be completed by the deadline specified..."
C. Makalei Drive: Residents of Makalei Estates expressed concerns that
Makalei Drive will become a through -street if the Connector Road (Road
1) is not constructed in a timely manner. This will not be the case since
the original Condition X states that Makalei Street will not be open to the
public as a through -street until Road 1 is opened for public use. This
condition is not required to be amended.
Besides the amendments to the 20 -acre park and roadway conditions cited
above, the following conditions are proposed to be amended:
• Condition D - change in acreage from 725.2 to 695.282 acres to reflect the
approximately 29.92 acres from Project District to MCX-20.
• Condition G - change in acreage from 102 to 72.08 acres to reflect the
approximately 29.92 acres from Project District to MCX-20.
• Original Condition N - delete in entirety, in agreement with the applicant
that the timing of this condition will affect the sales absorption of the
commercial property.
• Original Condition Q - delete in entirety; as this condition is already
specified in Condition No. 7 of Docket No. A03-744 and Condition T of
Ordinance No. 06 105 requires an 800 -foot open space buffer from the
Queen Ka`ahumanu Highway.
• Original Condition S - applicant to develop a 20 -acre park prior to the
issuance of the 101" building permit for a single-family residence in the
project instead of the occupancy of the first residential unit.
• Original Condition V - roadways to be referenced as identified in the
General Plan and the Kona CDP Official Concurrency Map. Thus, Road 1
refers to the new connector mauka-makai roadway through the project;
Road 2 is University Drive; Road 3 is Kamanu Street, Road 6 is the Ane
Keohokalole Highway, and Road 7 is the Kealakaa Street Extension.
• Condition CC.2 - reference to University Drive as Road 2.
• Condition NN - updated figures for Fair Share; Fair Share contribution to
be satisfied upon completion of Kamanu Street Extension, Ane
Keohokalole Highway, Kealakaa Street Extension, and Road 1.
The Honorable J Yoshimoto, Chairman
and Members of the County Council
Page 13
For your favorable consideration, an amendment to Ordinance No. 06 105, of the County Zoning
Code is transmitted.
We are enclosing copies of the staff Background and Planning Director's Recommendation for
your information. We have also enclosed transcripts of the hearings; the Planning Department's
Additional Information dated July 21, 2009; the Kona CDP Figure 4-3, Official Concurrency
Map (colored); roadway alignments -conceptual map; Planning Department powerpoint
presentation; DPW Engineering Division comments dated June 19, 2009; and the applicant's
summary of requested amendments.
Sincerely, /
Rodney Wafanabe, Chairman
Leeward Planning Commission
LpalamanuiREZ05-01 OPC2
Enclosures
cc: Mr. F. Guy Lam
Mr. Roger Harris
Alan Okamoto, Esq.
Department of Public Works
Department of Water Supply
Department of Land & Natural Resources -HPD
DOT -Highways, Honolulu
Lincoln Ashida, Esq., Corporation Counsel
Walammui.doc6/23/09
COUNTY OF HAWAII PLANNING DEPARTMENT
BACKGROUND REPORT
PALAMANUI GLOBAL HOLDINGS LLC
CHANGE OF ZONE APPLICATION (REZ 05-10)
PALAMANUI GLOBAL HOLDINGS LLC has submitted a request to amend various
conditions in Ordinance No. 06 105 which rezoned 725.2 acres from Agricultural 3 -acre (A -3a)
and Open (0) to a Project District. The property, which is referred to as the Palamanui
Development, is located northeast of the Kona International Airport at Keahole, between the
Queen Ka`ahumanu Highway and Makalei Estates Subdivision, Kau, North Kona, Hawaii,
TMK: 7-2-5: Por. of 1.
PROPOSED ACTION
Request: The applicant requests amendments to Conditions D, G, N, Q, S, X, EE, PP,
TT and LTU of Ordinance No. 06 105. (Planning Department Exhibit 1- Applicant's
March 13, 2009 letter, June 2009 summary and supporting documents)
2. Reasons for the Request: Various conditions under Ordinance No. 06 105 required the
applicant to assist the University of Hawaii in establishing the West Hawaii Center on the
adjacent parcel to the south of the subject site. Improvements required under the
conditions include the construction of the first University building, roads, public water,
electrical and waterline improvements to support the University. The applicant states that
financing for the project was dependent on a strong demand for residential units; however,
with changes in economic conditions, the financing of the initial phases of the project
became unavailable. In the absence of funds, the applicant seeks to proceed with the
commercial and residential component of the project to generate the necessary cash flow
to support the initial financing.
The applicant further states that "some of the conditions intended as security for
performance of conditions have impaired its ability to obtain financing." Amendments to
the requirements will allow the applicant to proceed with the project as well as to support
ATTACH: Calm. 495
Bill 137
the university. The applicant requests the following:
• Changes in acreages to reflect the 29.92 -acre portion of the property to be
rezoned from Project District to the Industrial -Commercial Mixed district
• Construction of the initial road (Road "W) will be completed prior to
issuance of a Certificate of Occupancy for any building within Palamanui
• Roads to be designated Roads 113, 1C, 3A and 5 will be completed as the
project develops
• Remove the restriction to connect Road IC to Makalei Drive until Road 4
is constructed
• Road 2 will be completed before occupancy of the first single-family
residential unit
• Road 4 - modify bonding requirement, add a provision to continue
preparatory work for Road 4, including acquisition of right-of-way and
procuring the centerline of Road 4. Construct Road 4 on the earlier of a) when
the County has the right-of-way for Road 4 and when the applicant receives
the 600'hsingle-family residential permit; or (b) when third party funding is
provided for at least 50% of the construction cost for the segment of Road 4
located on private property and after the applicant receives the 400'' single-
family residential building permit.
• Delete Condition W, as it unnecessary when the above changes are
approved
• The public park will be constructed prior to the issuance of a building
permit for the 101" single-family dwelling unit instead of occupancy of the first
residential unit
Requested amendments to conditions under Ordinance No. 06 105: (material to be
deleted is bracketed/struck through, material to be added is underscored)
a. Amend Condition D:
"The project shall consist of a maximum of [72-5.4] 695.282 acres for
single-family and multi -family residential, commercial uses, hotel, university
-2-
and public school facilities, dry forest preserve, archaeological and cave
preserve areas, active and passive parks, a trail system and supporting
infrastructure."
b. Amend Condition G:
"Commercial spaces for medical, office, retail, classrooms and health
related uses and hotel shall be limited to [ice] 72_08 acres."
C. Delete Condition N in its entirety: (Condition N requires residential and
commercial units with a requirement of one residential unit per 600 square foot of
commercial building. Applicant requests deletion of this condition, as the timing of
this condition will affect the sales absorption of the commercial property given the
weak residential market)
"[Tensure h Y J Y h � developed .. ,.riling to is stated goal of
l
or -eating a nixed use residential eemmimity, the pr-ejeet must inelud
residential developmefft. The ffejea shall have at least ene "dential u
for ever -y 600 squafe feet of neF&esidenfial development (under reef).
Spaee used by the University shall ne4 be ineluded in the ealeulatien of
nenfesldentxaSpaee. Thefe is no "' for the
]"
d. Delete Condition Q in its entirety: (Applicant requests deletion of this condition as
Condition No. 7 in Docket No. A03-744 and Condition V of Ordinance No. 06
105 requires an 800 -foot open space buffer from the Queen Ka`ahumanu
Highway)
"[No retail eenmner-eial stmetures may be leeated eleser than 1,500 fi�et
from the Queen Kaahuraanu Highway right of ]"
e. Amend Condition S:
"The Applicant shall develop one 20 -acre park site prior to [eeeapaney of
the first fesidenti a tirtit on the Yrepe t . ] the issuance of the 101" building
permit for a side -family residence within the Project. The 20 -acre active
park site shall include two playing fields which may be one baseball field
-3-
and one soccer field or two baseball fields or two soccer fields, parking lot
and restrooms, with the specific requirements to be determined in
consultation with the Department of Parks and Recreation. The 20 -acre
active park shall be constructed to county-dedicable standards, and the
county shall accept dedication."
Amend Condition Xl, X2, X3, X5, X7, X8; add new 9 and 13: (The current
language requires both offsite and onsite roads at Palamanui to be bonded and
constructed early in the project development. The applicant requests modifications
to the condition to allow installation of the roads as needed)
"The applicant shall construct the following roads to access other
properties and the regional road system:
Project access road from the Queen Ka`ahumanu Highway to the
eastern boundary of the project. (Road "IA- 1B and 1C" on
attached map Exhibit `B"): Road "IA.1B and 1C" shall intersect
with the Queen Ka`ahumanu Highway at a location approved by the
State Department of Transportation, and shall connect with
Makalei Drive at the eastern (mauka) end. The road shall be
constructed on an 88 -foot wide right-of-way, as a two-lane road, to
county-dedicable standards as a collector road, from the Queen
Ka`ahumanu Highway to the intersection with Road "3A". From
Road "3 A" to the intersection with Makalei Drive, Road "1C" shall
be constructed to county-dedicable standards as a minor street,
except that design standards shall be varied to permit the
connection with Makalei Drive without encroaching into the
Lowland Dry Forest Preserve. The connection with Makalei Drive
shall be designed to not encroach into the Lowland Dry Forest
Preserve. The grade shall not exceed 10%, except near the
connection with Makalei Drive. At the Queen Ka`ahumanu
Highway, the intersection shall be improved in accordance with one
-4-
of the following two options:
(a) If a grade separated interchange is available -to connect
Road "1 A" to Queen Ka`ahumanu Highway when Applicant
is ready to construct Road "IA", Applicant will connect
Road "IA" to such interchange and in such case, Applicant
will contribute $1,500,000 to the Department of
Transportation.
(b) If a grade separated interchange is not available to connect
Road "IA" to Queen Ka`ahumanu Highway when Applicant
is ready to make the connection, Applicant shall improve the
intersection at its expense as required by the Department of
Transportation, but shall include, at a minimum, a
deceleration and an acceleration lane on Queen Ka`ahumanu
Highway, a left -tum lane on Queen Ka`ahumanu Highway,
and a dedicated right -turn and left -turn lane from Road
"1A" to Queen Ka`ahumanu Highway. If warranted, at the
requests of Department of Transportation, the applicant
shall install traffic signals and a second left -tum lane from
the main project access road to the Queen Ka`ahumanu
Highway.
"Mid -Level Road" from Road "IA" to Kaiminani Drive (Road "2"
on Exhibit `B"): The applicant shall construct the mauka half -
section of a 120 -foot wide right-of-way to county-dedicable
standards as a collector road. The applicant shall construct the
intersection at Kaiminani Drive meeting with the approval of the
Department of Public Works, but the intersection shall include a
left -turn lane on Kaiminani Drive.
A north -south collector road at approximately the 600 -foot
elevation (Road "3A" on Exhibit `B"): The north -south collector
-5-
road shall be designed to function as a portion of a collector road
(Road "4") connecting Highway 190 with Road "IA and 1B" and
the Queen Ka`ahumanu Highway. Road "3A and 313" shall be
constructed to county-dedicable standards as a 60 -foot wide
collector road with an 88 -foot wide right-of-way. The applicant
shall construct the intersection between Road "3A and 313" and
Road "1B" meeting with the approval of the Department of Public
Works
4. New Connector Road to Mamalahoa Highway Project (Road "4 on
attached Map Exhibit "B"). Applicant shall construct Road "4", at
its sole expense, as a two-lane 60 -foot wide county-dedicable
collector road, including shoulders and swales, within an 88 -foot
right-of-way. The final design and maximum grade of Road "4"
shall be determined by the Director of Public Works after
consultation with the Planning Director. Applicant shall not be
required to install streetlights, except at the intersection with
Highway 190, or utilities. If another private developer is required
to participate in building Road "4" as a condition of land use
approvals, Applicant's share shall be limited to the portion of Road
"4" on Applicant's property and on State land. The County shall
obtain the necessary right-of-way outside of Applicant's property.
A road to connect south to the future extension of Holoholo Street
- Nana Street (Road "5" on Exhibit `B"): The applicant [shall -build
rnineF stmet, and it _ti_„ ifAerseet __, h Dead "1".] must reserve the
right of wgy for Road 5 for future use as a County road. Applicant
must construct the road to County dedicable standards as a minor
street at its sole expense and dedicate it to the County of Hawaii
when a connection at the southerly boundary of the Project is open.
1.1
6. The Planning Director may require other local streets within the
project to provide local connections to the adjoining property to the
north and south as a condition of subdivision approval or plan
approval.
7. At the western (makai) end of Makalei Drive, the applicant shall
provide safety improvements necessary to make a safe transition to
Road "1C", which may include, but are not limited to, rumble strips
and establishing superelevation for the curve, as required by the
Department of Public Works.
The following road improvements shall be completed before a
certificate of occupancy is issued for any portion of the subject
property, or completion of any single-family homes, whichever
comes first:
(a) Road "lA", at least from the Queen Ka`ahumanu Highway
to the intersection with the Mid -Level Road (Road "2");
and
[(b) the interseetiene fth . -- r -, et aeeess read ,-Ah the
•
[e] (W the Mid -Level Road (Road "2") from the main project
access road to Kaiminani Drive, and the Kaiminani Drive
intersection.
9. Road "1C" shall be built on the earlier of the following events:
(a) whenever Road 4 is required to be built under other
conditions of this ordinance, and
(b) prior to the issuance of the 250'b residential building
permit within the Project.
[97] 10. The following road improvements shall be secured by bond or other
surety meeting with the approval of the Planning Director to
guarantee that the improvements will be completed within two (2)
-7-
years after the issuance of a certificate of occupancy for any portion
of the subject property, or completion of any single-family homes,
whichever comes first:
(a.) the remaining portion of Road "1", including any necessary
improvements to the lower portion of Makalei Drive;
(b) Road "3", and
(c) Road "5".
[4,0 -JILL"
to effee&e date of this er-dinance, eEeept . may be ell. ea , nder
r a "UU' n pplieant .,hall assure the , mpletieft erRead
rr r
"4" by bond or other seeufity aeeepted by the Plaffffing Directer tie
later than the issuanee of a ceftifieate of eeettpaney for
building, other than the U*iversity or the C—e Depanffl . of
Edueation TIAL) building, R«esubdivisionrol f
�� ly
1.dior-eating..le f rill , residential lots Gert:Reate a
eeeupaney for any bt6lding, other than the Uriversity OF DOE—
building shall riet be issued, and final subdMsienappfeval�
u »
granAede
ufAil the neeessary right ef way for Read4has bee
obtained from a ether private landowner.] Roads "1B. 3A and
3B" shall be built on the earlier of the following events:
(a) whenever Road 4 is required to be built under other
conditions of this ordinance; and
(bl development of a portion of the Property that requires a
collector road that must be connected to Road "lA".
[4 -] 12.Makalei Drive is a "minor road" and will not be open to the public
until the collector Road 4 is open for public use.
13. Applicant shall continue preparatory work for design of Road "4"
including working with the County of Hawaii to secure the right
EE
of way for Road "4" across State of Hawaii lands and providing
information necessary for the County of Hawaii to arrange the
right of way over privately owned lands As part of the preparatory
work Applicant will after obtaining necessarapprovals from the
affected landowner "pioneer the center -line" of Road "4" on the
ground no later than June 12011 Applicant shall complete Road
"4" by the later of the date that the County obtains the right of way
for Road "4" and the date that Applicant receives the 600h building
permit for residences in the Project If third party fundingfor or at
least 50% of the construction cost for the segment of Road "4" that
is not within the State of Hawaii land is then available. Applicant
will fund the remainder of the construction cost and complete Road
"4" before the building Permit for the 401' residential unit in the
Project is issued The improvements for Road "4" shall be secured
by a $10,000,000 bond or other surety meeting with the approval of
the Planning Director to guarantee that the improvements will be
completed as required by this ordinance. The bond or other surety
shall be made prior to issuance of Final Subdivision Approval for
M subdivision in the Project containing a single family residential
lot.
g. Amend Condition EEL
"Connectivity with the University of Hawaii 500 acre site:
applicant shall allow the University of Hawaii to connect with its
wastewater and water supply systems. Applicant shall also allow
the University of Hawaii to connect electrical and
telecommunication systems to facilities installed within the project.
These connectivity sites shall be to the University's satisfaction and
located along its northern boundary on Road "I X'.
MI
h. Amend Condition PP:
"The applicant shall make its fair share contribution to mitigate the
potential regional impacts of the property with respect to parks and
recreation, fire, police, solid waste disposal facilities and roads. The fair
share contribution shall become due and payable on the sale or lease of
residential units subject to such contribution. The fair share contribution
shall have a maximum combined value of $6,411.25 per multiple family
residential unit ($9,991.20 per single family residential unit). The total
amount shall be determined with the actual number of units according to
the calculation and payment provisions set forth in this condition. The fair
share contribution per multiple family residential unit (single family
residential units) shall be allocated as follows:
I . $3,162.49 per multiple family residential unit ($4,817.93 per single
family residential unit) to the County to support park and
recreational improvements and facilities;
2. $99.95 per multiple family residential unit ($232.42 per single
family residential unit) to the County to support police facilities;
3. $307.46 per multiple family residential unit ($459.06 per single
family residential unit) to the County to support fire facilities;
4. $137.04 per multiple family residential unit ($200.98 per single
family residential unit) to the County to support solid waste
facilities; and
5. $2,704.31 per multiple family residential unit ($4,280.82 per single
family residential unit) to the County to support road and traffic
improvements.
The fair share contribution shall be waived for the affordable housing units.
In lieu of paying the fair share contribution, the applicant may contribute
land and/or construct improvements/facilities related to fire, police, and
solid waste disposal facilities within the region impacted by the proposed
-10-
development, subject to the review and recommendation of the Planning
Director, upon consultation with the appropriate agencies and approval of
the County Council. With respect to the fair share contribution for parks
and recreation, that contribution for all residential units will be satisfied
when Applicant completes and offers for dedication all of the land facilities
for the active use park described in Condition "U" above. The fair share
contribution for roads will be satisfied upon completion of the Mid -Level
Road (Road "2"), Road "3A and 313", Road "5" and Road "4".
Amend Condition TT:
"An initial extension of time for the performance of conditions within the
ordinance [emeept for w 'yef time lirpiit in r nd tion v 10, j may be
granted by the Planning Director upon the following circumstances.
1. The non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant, successors
or assigns, and that are not the result of their fault or negligence.
2. Granting of the time extension would not be contrary to the
General Plan or Zoning Code.
Granting of the time extension would not be contrary to the original
reasons for the granting of the Project District.
4. The time extension granted shall be for a period not to exceed the
period originally granted for performance (i.e., a condition to be
performed within one year may be extended for up to one
additional year).
If the applicant should require an additional extension of time, the
Planning Department shall submit the applicant's request to the
County Council for appropriate action.
Should any of the conditions not be met or substantially complied with in a
timely fashion, the Planning Director may initiate rezoning of the subject
area to its original or more appropriate designation."
j. Delete Condition UU
Y:T•7.7
ET.!!e'T.'a
�reT-
sera^.c++rr-z-c:;•z::�
............:._: _...-___.—, .
"4"
is not more than twe (2) years after the eemplefion
F any b 'IA' - > I di b single family resideother than r
University or the DOE
Jn
BACKGROUND INFORMATION
4. May 12, 1993: Effective date of Ordinance No. 93 45 which reclassified approximately
727.8 acres from the Unplanned (U) to the Agricultural (A -3a) district. The ordinance
amended the district classification of the area zoned A-3 a (450.323 acres) as well as the
Makalei Estates Subdivision.
November 21, 2002: The University ofHawai`i, which owns approximately 500 acres
adjacent to the subject property, entered into a MOU (amended April 16, 2004) with the
applicant to discuss joint development opportunities, with the applicant providing critical
infrastructure for the University's development. The University selected the adjacent
parcel as a suitable site for a permanent UH campus in West Hawaii. The MOU
addresses the concept of a University Village. Under the agreement, the applicant will
develop a residential/commercial community on its property, with a village town center on
both the Palamanui project area and the University's property.
6. October 23, 2004: Notice of the Final EIS was provided in the October 23, 2004 OEQC
bulletin. The Palamanui Project initially involved the development of lands in the State
Land Use Conservation District. As such, an Environmental Impact Statement was
required pursuant to Chapter 343, Hawaii Revised Statutes (HRS), and the
Environmental Impact Statement Rules, Title 11, Chapter 200 of the Hawaii
Administrative Rules (HAR).
7. June 13, 2005: The State Land Use Commission approves Docket No. A03-744 for the
redesignation of the Palamanui property from the Conservation and Agricultural districts
to the Urban district.
-12-
8. July 17, 2006: Effective date of Ordinance No. 06 105, which reclassified approximately
725.224 acres from the Agricultural (A -3a) and Open district to Project District. (Exhibit
2 - Ordinance No. 06 105)
9. February 2, 2009: Tentative subdivision approval granted for Palamanui Subdivision
(SUB 07-695).
AGENCIES' AND ORGANIZATIONS' COMMENTS
10. Department of Public Works: Planning Department Exhibit 3 - June 19, 2009
memo
11. Department of Water Supply: P.D. Exhibit 4 - June 9, 2009 memo
12. Department of Environmental Management: P.D. Exhibit 5 - May 27, 2009 memo
13. Office of Housing and Community Development: P.D. Exhibit 6 - May 20, 2009
memo
14. DLNR Historic Preservation Division: P.D. Exhibit 7 - May 27, 2009 letter
15. DLNR Land Division: P.D. Exhibit 8 - May 21, 2009 letter
16. DBEDT Office of Planning: P.D. Exhibit 9 - May 26, 2009 letter
17. Department of Health: P.D. Exhibit 10 - May 21, 2009 letter
18. Department of Education: P.D. Exhibit 11- May 21, 2009 letter
19. United States Department of the Interior Fish and Wildlife Service: P.D. Exhibit 12
- June 10, 2009 letter
AGENCIES - NO COMMENTS OR OBJECTIONS
20. Police Department
AGENCIES - NO RESPONSE
21. Fire Department, Civil Defense Agency, Department of Parks and Recreation, Department
of Transportation, Kona Traffic Safety Committee, Makalei Community Association
PUBLIC COMMENTS
22. P.D. Exhibit 13 - June 10, 2009 letter from Mark Van Pernis. Mr. Van Pernis has
stated that he was not notified of the amendment request. His property (TMK: 7-2-015:
039) is not within 300 feet of the subject property; therefore, he was not notified by mail.
91911
PALAtv]ANUI
March 13, 2009
Bobbie Jean Leithead-Todd
Acting Deputy Planning Director
County of Hawaii
Aupuni Center
101 Pauahi Street, Suite 3
Hilo, Hawaii 96720
Re: Amendment of Certain Conditions to Ordinance 06-105
Application for Rezoning for Portion of TMK [3] 7-2-005: 001 (29.92 acres) from
PD to MCX
Dear Director Leithead-Todd:
We are submitting the following for concurrent processing: (1) this request to amend
certain conditions of Ordinance 06-105 as more specifically described below; (2) Change
of Zone Application with attachments for a portion of this property that was designated
for commercial use under Ordinance 06-105 to MCX.
Request to Amend Certain Conditions of Ordinance 06-105.
Palamanui is committed to assisting the University of Hawaii in establishing the West
Hawaii Center as part of its commitment to the community. In order to do so, Palamanui
must not only build the first University building, but must also build the roads, public
water, electrical and waterline improvements to support the University. Changes in
economic conditions have made the planned financing for the initial phases of this project
unavailable. That financing was dependent on a strong demand for residential units. In
the absence of such demand, Palamanui must be able to proceed with commercial and
residential components of this project to generate the cash flow needed to support initial
financing.
Palamanui has also found that some of the conditions that were intended as security for
performance of conditions have impaired its ability to obtain financing. Modifying these
requirements will make it possible to move forward with the improvements needed to
support the University and get the overall project moving.
We are asking for amendment of conditions in three areas to allow us to move forward:
Planning Dept.
P.O. 9ox 9007 - lodua-',m3. I imafl 96145 - Numw WS) 3:: iMCD - F ,hA.. tBCn) 44Ik70I i Exhibit
A. Commercial Condition Items:
1. Condition "N" mandates a mix of residential and nonresidential units
developed with a requirement of one residential unit per 6001sf of commercial
building. We are requesting deletion of this condition, as the timing of such a
condition is problematic.to. sales absorption of commercial property given the
weak residential market.
2. Condition "Q" reads as follows: No retail commercial structures may be
located closer than 1,500 feet from the Queen Kaahumanu Highway right-of-
way. We are requesting deletion of this condition as Palamanui has an 800 -
foot buffer fronting Queen Kaahumanu Highway, which will effectively
protect the open space ambiance of the region.
3. The County Zoning Codes does not permit creation of a Project District with
broader commercial uses than allowed in CV and CN districts. We are
requesting in the Change of Zone Application that 29.92 acres of the 102 -acre
business park be removed from the Project District and placed in the MCX
district, which allows wholesaling and distribution uses.
B. Road Conditions (Present Condition X; Deletion of Conditions N and Q will cause
this Condition to become new Condition V)
The current ordinance language requires both offsite and onsite roads at Palamanui to be
"bonded" and constructed by the developer early in the project schedule. Palamanui is
requesting this condition be modified to allow installation of the roads when they are
needed:
1. Construction of the initial road (to be designated Road la) will be completed prior
to issuance of a Certificate of Occupancy for any building within Palamanui.
2. Roads to be designated Roads lb, lc, 3a, and 5 will be completed as Palamanui
develops.
3. Remove the restriction on correcting Road le to Makalei Drive until Road 4 is
built.
Road 2 will be completed before occupancy of the first Palamanui single family
residential home.
5. Road 4: Modify the condition on a bond or other to secure construction of Road
4. Require adding a provision requiring Palamanui to continue with preparatory
work for Road 4 including acquisition rights of way and procuring the centerline
of Road 4. Provide that Palamanui will construct Road 4 on the earlier of: (a)
when the County has the right of way for Road 4 and when Palamanui receives
the 600'h residential building permit; or (b) when third party funding is provided
for at least 50% of the construction cost for the segment of Road 4 located on
P.O. Pct %Xre • Y. AuAum. I lm..,ri 0745 • PWS MLSl IIWIM • F.r.Inuk, WN) 143Q0I
Y
private property and after Palamanui receives the 400t1i residential building
permi t.
6. Delete Condition UU as it is unnecessary once the above changes are made.
C. Public Park.
1) Replace the requirement in present Condition U for development of the 20 -acre
active park site by occupancy of the first residential unit on the properly with a
requirement that the development be done prior to issuance of the 10151 single
family residence building permit.
The language which would be needed to make the requested changes is provided in the
redlined version of Ordinance 06-105 which is enclosed with this letter. The redlined
version contains a revised site map for Exhibit A showing the exclusion of the proposed
MCX area. The redlined version also contains a revised Exhibit B to the ordinance
showing the redesignation of the roads to match the proposed changes in the ordinance
concerning development of those roads.
Other security for Road 4.
It is also essential that we have an understanding of an alternative security arrangement
for Road 4 instead of the bonding. Enclosed is a sheet that describes the points for a
second mortgage to secure our obligations on Road 4 that we believe will work.
Please contact either of the following persons at Palantanui Global Holding LLC for
further information and/o• questions;
Roger Harris, tel. 987-5182 or 325-0700 (email rharris rCi dtaltawaii,net)
Guy Laui, tel. 960-1483 or 325-0199 (entail gliniQpalamanui.com)
Aloha,
Palamanui Global Holdings LLC
By Its Member Palantanui LLC
Manager Hawaii Renaissance Builders, LLC
Steven Colon
Its Manager
Manager F.G.L. LLC
F. Guy.Laty'/ /
Its Manager
RU. IL-•Rr• Kdk r'C".4. 1 h,A-W F•1'6'1z LS'M niN N• I.i.•Im:L: VAII I nOA4
1114[. AIN 22 AIM 01. 3101
June 2009
Summary of Palamanui°s Requested Amendments
to County Zoning Conditions
Palamanui is committed to assisting the University of Hawaii in establishing the West
Hawaii Center as pail of its commitment to the community. In order to do so, Palamanui
must not only build the first University building, but must also build the roads, public
water, electrical and waterline improvements to support the University. Changes in
economic conditions have made the planned financing for the initial phases of this project
unavailable. That financing was dependent on a strong demand for residential tmits. In
the absence of such demand, Palamanui must be able to proceed with commercial as well
as residential components of the project to generate the cash flow needed to support
initial financing.
Palamanui has also found that some of the conditions that were intended as security for
performance of conditions have impaired its ability to obtain financing. Modifying these
requirements will make it possible to move forward with the improvements needed to
support the University and get the overall project moving.
We are asking for the following amendment of conditions to allow us to move forward:
Application i is a request for amendment to certain condition language contained in
Palamanui's current "Project District" zoning Ordinance No. 06-105, which was adopted
by the Hawaii County Council in 2007. (REZ 05-010)
A. Commercial Condition Items:
1. Condition "N" mandates a mix of residential and nonresidential units
developed with a requirement of one residential unit per 600/sf of
commercial building. We are requesting deletion of this condition, as the
timing of such a condition is problematic to sales absorption of
commercial property given the weak residential market.
2. Condition "Q" reads as follows: "No retail commercial structures may be
located closer than 1,500 feet from the Queen Kaahumanu Highway right-
of-way." We are requesting deletion of this condition as Palamanui has an
800 -foot buffer fronting Queen Kaahumanu Highway, which will
effectively protect the open space "ambiance of the region.
CU. Fio\900i Kailua-Kona, Haoaii 06743 (BOS) 37i-0;0�� - Poc�imilc IPSA$1 i4 �-0�01 SCANNED
4 7
B. Road Conditions.
The current ordinance language requires both offsite and onsite roads at
Palamanui to be "bonded" and constructed by the developer early in the project
schedule. Palamanui is requesting this condition be modified to allow installation
of the roads when they are needed:
1. Construction of the initial road (to be designated Road IA) will be
completed prior to issuance of a Certificate of Occupancy for any building
within Palamanui.
2. Roads to be designated Roads 113, IC, 3A, and 5 will be completed as
Palamanui develops.
3. Road 2 will be completed before occupancy of the first Palamanui single-
family residential home.
4. Road 4: Modify the condition as follows:
Applicant, Palamanui, shall continue preparatory work for design of Road
4 including working with the County of Hawaii to secure the right-of-way
for Road 4 across State of Hawaii lands and providing information
necessary for the County of Hawaii to arrange the right-of-way over
privately owned lands. As part of the preparatory work Applicant will,
after obtaining necessary approvals from the affected landowner, "pioneer
the center -line" of Road 4 on the ground no later than June 1, 2011.
Applicant shall complete Road 4 by the later of the date that the County
obtains the right-of-way for Road 4 and the date that Applicant receives
the 6001h building permit for the residences in the Project. Tf third party
funding for at least 50% of the construction cost for the segment of Road 4
that is not within the State of Hawaii land is then available, Applicant will
fund the remainder of the construction cost and complete Road 4 before
the building permit for the 401" residential unit in the Project is issued.
The improvements for Road 4 shall be secured by a $10,000,000.00 bond
or other surety meeting with the approval of the Planning Director to
guarantee that the improvements will be completed as required by this
ordinance. The bond or other surety shall be made prior to issuance of
Final Subdivision Approval for any subdivision in the Project containing a
single-family residential lot.
Palamanui is not requesting a change to ordinance condition X-11 which
states: "Makalei Drive is a "minor road" and will not be open to the
public until the Collector Road 4 is open for public use."
C. Public Park.
1. Replace the requirement in present Condition U for development of the
20 -acre active park site by occupancy of the first residential unit on the
property with a requirement that the development be done prior to
issuance of the 101" single-family residence building permit.
Application I1 is a request for change of zoning in the Makai section of Palamanui (see
attached maps). Within the 70 acres, which we are calling the "Palamanui Business
Park", we are asking that 29.920 acres be changed from Project District (PD) zoning to
MCX-20. This change, if approved, would allow a portion of the Business Park to be
occupied by distribution and wholesale uses in addition to the mix of commercial uses
permitted under the overall Project District zoning. (REZ 09-000094)
In these tough times approval of these requested changes will allow Palamanui to proceed
with the construction of the University of Hawaii West Hawaii Center and infrastructure
to support it.
For further information contact:
Roger Harris, ph: 987-5182 or 325-0700 (email: rharrisadtnhawaii.net)
Guy Lam, ph: 960-1483 or 325-0199 (email: felam(a�alolra.net)
Thank you
Maps attached
al
�� I ♦ + III ,Iv
� e
;I■.� \� ,ry LIouwu.m`"_N—l-/mpp/
m IOlIMu aV mw I ua.pa WN9
L, �., • Iln I' NW�IS'�
Ilflli:INlwuliillmnul�jmm�i�m,I11Wr:. Mf'�� rmw'�.�r ^mann c ro
W� ��--• �„•-_gym—nTC o.�-- •�^^,��,..e,a:1
SWR
•
FXHIRIT "A'
Roadway Alignments
Conceptual
2009
2005.33.3100/001-1 86.6.05 9
Figure 1-1
LOCATION MAP
®Palamanui Project District Application
0 2000 4000 Prepared for. Hiluhilu Development, LLC
f ��� Prepared by: Belt Collins Hawaii
NORTH SCALE iN FEET June 2005
I
McF.I k \ - � \9 •.
I zXd NA CO AST.
� H•
��
e
of 1 4 r
>
Island of Hawaii
-- L�
_
'� I
.1c0 YJ�1 u 1n�„4 tCir
�I'x
� �i= �s+t `1%] i1�k�� iLY �`�'^dYS4! h t \ eL t( [ti'���, ✓h ..
3 U ,K
i m • H � L 1, \"' '�`�S*�y �„f. 'ti- -' r � �� ��j E3 `,
IV
1
44-/64-
kA1
i C 3t 1
� 6ALA0
f i, S
A
5.1
5 ..�.]+-.
i �i•
x�t 7
OOMA II.OMES
11
�
\ t
Figure 1-1
LOCATION MAP
®Palamanui Project District Application
0 2000 4000 Prepared for. Hiluhilu Development, LLC
f ��� Prepared by: Belt Collins Hawaii
NORTH SCALE iN FEET June 2005
Palamanui Security for Completion of Road 4.
1. One means of satisfying the security requirement for completion of
Road 4 improvements will be by mortgage acceptable to the Planning
Director as described below.
2. Upon approval by the Planning Director, the mortgage shall be
recorded in the Bureau of Conveyances.
3. The mortgage shall apply against a portion or portions of the
Palamanui Land TMK [3] 7-2-005: 001 designated for development.
4. The Applicant shall establish to the satisfaction of the Planning
Director that the value of the mortgaged property is not less than
$10,000,000.00.
5. The mortgaged property may be subject to a mortgage provided to a
lender used by Applicant to furnish funds for development of the
Palamanui Land TMK [3] 7-2-005: 001, but in such case, the amounts
i
secured by the mortgage to that lender shall be taken into account in
determining the value of the property mortgaged to the County of
Hawaii.
6. From time to time, Applicant may request that the Planning Director
consent to partial releases of the County of Hawaii mortgage, but in
such case, Applicant shall provide additional Palamanui Land
designated for development to maintain the value of the collateral at
not less than $10,000,000.00.
7. The Applicant shall be responsible to provide to the Planning Director
real estate appraisals from independent real estate appraisers to support
the values of the properties to be mortgaged and any replacement
property for mortgaged property that is being released.
8. The Planning Director may reduce the mortgage amount at such time
and to such amount that Applicant's share of the cost of Road "4" is
less than the mortgage amount described above.
9. The Planning Director shall release the mortgage upon completion of Road "4: '
Miles
p Q.6 1 2 3
ROADWAY ALIGNMENTS ® CONCEPTUAL
91 Y7 iffS� n aoo1T 14• „rnv99scn�
COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HAWAII
BILL NO. 224
Draft 9
AN ORDINANCE AMENDING SECTION 25-8-3 (NORTH KONA ZONE MAP), ARTICLE 8,
CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE 1983 (2005 EDITION),
BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL (A -3a) AND
OPEN TO PROJECT DISTRICT (PD) AT KAU, NORTH KONA, HAWAII, COVERED BY
TAX MAP KEY 7-2-5:1.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Section 25-8-3, Article 8, Chapter 25 (Zoning Code) of the Hawaii County
Code 1983 (2005 Edition), is amended to change the district classification of property described
hereinafter as follows:
The district classification of the following areas situated at Kau, North Kona,
Hawaii, shall be Project District (PD):
PARCEL "A":
Beginning at the northwest corner of this parcel, being also along the east side of
Queen Kaahumanu Highway (Project No.: 19 BC -01-71), the coordinates of said point of
beginning referred to Government Survey Triangulation Station "AKAHIPUU", being
9,071.21 feet North and 23,751.69 feet West and thence running by azimuths measured
clockwise from true South:
1. 2910
46' 30"
5726.03
2. 170
56'
2314.09
3. 1150
03' 36"
5449.47
feet along the Kukio-Goma Government
Tracts;
feet;
feet along the Government Lands of Makaula;
4. 1890 19' 55" 2044.65 feet along the east side of Queen Kaahumanu
Highway (Project No.: 19 BC -01-71) to the
point of beginning and containing an area of
274.861 Acres.
PARCEL "B":
Beginning at the northwest corner of this parcel, being also along the south side of
Kukio-Ooma Government Tracts, the coordinates of said point of beginning referred to
Government Survey Triangulation Station "AKAHIPUU", being 6,947.06 feet North and
18,434.23 feet West and thence running by azimuths measured clockwise from true South:
1. 2910 46' 30" 784.96 feet along the Kukio-Goma Government
Tracts;
2. 2800 28' 22" 2806.44 feet along the Kukio-Ooma Government
Tracts;
3. 2900 55' 24" 3323.43 feet along the Kukio-Ooma Government
Tracts;
4. 170 14' 2844.54 feet along Lots 36, 37, 38, 44, 15, 14, 13, 12,
11, 10 and 9 of Makalai Estates — Phase 2
(File Plan 2294);
5. 1000 15' 30" 1838.50 feet along the Government Lands of Makaula;
6. 1150 03' 36" 5137.19
7. 1970 56' 2314.09
Less the following described area:
feet along the Government Lands of Makaula;
feet to the point of beginning and containing
an area of 450.343 Acres.
DESCRIPTION OF LAND LOCATED IN PALAMANUI SUBDIVISION
AMMENDMENT TO THE ZONING
PROJECT DISTRICT (PD) (ORD 06-105) TO INDUSTRIAL -COMMERCIAL
MIXED DISTRICT (MCX)
All of that certain parcel of land being a portion of the land described in and
covered by Royal Patent 8265 and Mahele Award 13-B to Paalua, Certificate of
Boundaries 191 lying and being at Kau District of North Kona, Island and
County of Hawaii State of Hawaii and described as follows:
Beginning at a point being the Northwest corner of this parcel of land the
coordinates of said point of beginning referred to Government Survey
Triangulation Station "AKAHIPUU" being 109.49 feet South and 18,804.22 feet
West and running by azimuths measured from true South:
2
1 291046'30" 1149 40 feet along_ Kukio - Ooma Government
Tracts;
2 9019'55" 282.64 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
3 279019'55" 9.06 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
Thence along a curve to the right with a
radius of 239.00 feet, the chord azimuth and
distance being:
4 324019'55" 338.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
5 9019'55" 446.09 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
6 279019'55" 485.02 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191•
7 9032'52" 500.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191•
8 99019'55" 421.14 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
9 189019'55" 301.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
10 99019'55" 62.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
Thence along a curve to the right with a
radius of 20.00 feet, the chord azimuth and
distance being:
is
8265 and Mahele Award 13-B
Certificate of Boundaries 191;
12. 99019'55" 197.96 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
Thence along a curve to the left with a
radius of 301.00 feet, the chord azimuth and
distance being:
13. 75003'55" 247.41 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
14 50047'55" 103.47 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
Thence along a curve to the right with a
radius of 20.00 feet, the chord azimuth and
distance being:
15. 95047'55" 28.28 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
16. 140047'55" 199.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191•
17. 230047'55" 357.90 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
18. 140047'55" 218.83 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
Thence along a curve to the right with a
radius of 239.00 feet, the chord azimuth and
distance being:
19 240048'29" 65.26 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
20 158039'19" 269.52 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
21 190057'06" 40.03 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191•
22 103012'19" 39.52 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
23 102046'39" 49.05 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
24 116009'35" 45.79 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
25 112002'29" 43.66 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
26 189019'55" 199.24 feet alone the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191•
26 99019'55" 114.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
Thence along a curve to the left with a
radius of 20.00 feet, the chord azimuth and
distance being:
27 54019'55" 28 28 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
28 99019'55" 62.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua
Certificate of Boundaries 191;
29 189019'55" 13.00 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
30 99019'55" 297.97 feet along the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191;
31 189019'55" 537.31 feet alone the remainder of Royal Patent
8265 and Mahele Award 13-B to Paalua,
Certificate of Boundaries 191to the point of
beginning containing an area of 29.92 acres,
more or less.
for a net area for Parcels "A" and `B" of 695.282 acres.
All as shown on the map attached hereto, marked Exhibit "A" and by reference
made a part hereof.
SECTION 2. In accordance with Section 25-2-44, Hawaii County Code 1983 (2005
Edition), the County Council finds the following conditions are:
(1) Necessary to prevent circumstances which may be adverse to the public
health, safety and welfare; or
(2) Reasonably conceived to fulfill needs directly emanating from the land use
proposed with respect to:
(A) Protection of the public from the potentially deleterious effects of the
proposed use, or
(B) Fulfillment of the need for public service demands created by the
proposed use.
0
A. The applicant, successors or assigns shall be responsible for complying with all of
the stated conditions of approval.
B. The applicant shall comply with all conditions of approval of the State Land Use
Commission's Decision and Order (Docket No. A03-744) dated May 19, 2005.
C. The applicant shall comply with the conditions as set forth in the Water Agreement
between K -W Kau, LLC and the Water Commission of the County of Hawaii dated
June 15, 1999.
D. The project shall consist of a maximum of [725.2] 695.282 acres for single-family
and multi -family residential, commercial uses, hotel, university and public school
facilities, dry forest preserve, archaeological and cave preserve areas, active and
passive parks, a trail system and supporting infrastructure.
E. The maximum number of residential units allowed shall be 1,116 units, including
the on-site affordable housing units.
F. The maximum number of hotel rooms shall be 120.
G. Commercial spaces for medical, office, retail, classrooms and health related uses
and hotel shall be limited to [ 102] 72_08 acres.
H. Active and passive parks (Open, Park and Preservation) shall be developed on a
minimum of 177.8 acres. A "Constraints Area" which includes the approximately
55 -acre dry forest preserve, archaeological sites/cave and park areas, shall be set
aside in the project area.
I. The uses allowed in the Project District shall be all permitted uses allowed by right
7
in the RS, RM, CN and CV zoned districts, and related facilities. Uses allowed by
Use Permit in the CV district, other than golf courses, may be allowed by use
permit.
J. A detailed Master Plan of the Project District, which includes the location and
number of residential lots and units, hotel, university and public school facilities,
commercial uses, parking, open space and recreational areas and other related
improvements on the property, shall be submitted to the Planning Director within
two (2) years from the effective date of the Project District Ordinance or prior to
submission of plans for plan approval or subdivision approval, whichever occurs
first.
K. Substantial construction of the proposed development shall commence within five
(5) years from the effective date of the Project District Ordinance. "Substantial
construction" means the actual start of construction of project infrastructure under a
bona fide contract of not less than ten million dollars ($10,000,000.00). Prior to
construction, the applicant, successors or assigns shall secure Final Plan Approval
for the proposed development from the Planning Director in accordance with
Section 25-2-70, Chapter 25 (Zoning Code), Hawaii County Code. Plans shall
identify proposed structures, fire protection measures, paved accesses and parking
stall, and other improvements associated with the proposed uses.
L. The following design standards shall apply:
Landscaping for the development shall comply with the Planning
Department's Rule No. 17, Landscaping Requirements. Landscaping rules,
such as the screening of single-family residential from commercial areas,
shall be applied according to the actual uses.
The height limit for structures within the project area shall not exceed the
following:
a. Single-family residential development: 35 feet
b. Multiple -family residential and hotel developments: 45 feet
C. Office and retail commercial development (not more than three
stories): 45 feet.
3. The minimum off-street parking and loading space requirements of Chapter
25, Hawaii County Code shall be complied with, including compliance with
the American Disabilities Act (ADA) requirements.
M. The variances from Chapters 23 (Subdivision) and 25 (Zoning), Hawaii County
Code, as presented in Planning Department Exhibit 2 (Applicant's November 21,
2005 letter with attached Tables pages 1 to 6 related to Variance Requested from
Sections in Subdivision and Zoning Codes, and Applicant's Figure 2 - Conceptual
Character of Town Center/Residential Village Center, Figure 3a - Residential
Village Center Alternative: 4,000 SF Lot, Figure 3b - Residential Village Center
Alternatives: 6,000 SF Lot, Figure 4a - Conceptual Plan: Roadway Concepts -
Dedicable, Figure 4b - Conceptual Plan: Roadway Concepts - Nondedicable, and
Figure 5 - Residential Village Center Alternatives: Zone Lot Line Concepts) shall
be allowed under the Project District. The applicant shall submit detailed plans to
the Planning Director showing street designs and cross-sections, and adjacent
building designs, with the Master Plan. The Planning Director may require
modifications to the street sections to provide sufficient on -street parking where the
plans do not provide adequate off-street parking (such as the 4,000 -square foot lots
with a one -car garage and insufficient setbacks to allow parking in driveways), and
may require further changes necessary for public safety and convenience. All roads
built with the variances allowed under this condition will be non-dedicable. With
regard to the requested zero line building setbacks, the applicant shall conform to
the current Hawaii County Building Code requirements. As part of the Master
Plan, the applicant shall submit plans for pedestrian movement through the project
district, which shall identify areas where sidewalks will be included to permit safe
pedestrian access to the Town Center and other important points in the
development.
[N. To ensure that the project is developed according to its stated goal of creating a
mixed use residential community, the project must include residential development.
The project shall have at least one residential unit for every 600 square feet of
nonresidential development (under roof). Space used by the University shall not be
included in the calculation of nonresidential space. There is no minimum
requirement for the nonresidential development.]
[O.]'N. The permitted hotel, designated as the "University hm and Conference Center,"
shall function as a business hotel and in conjunction with University operations. It
shall not be operated under a time-share plan or other arrangement that provides for
shared ownership of individual units on the basis of time intervals, or club
membership allowing periodic use.
[P.] O. Occupancy of the hotel shall not be granted until the construction of the Queen
Kaahumanu Highway, Phase II widening improvements to four lanes from
Kealakehe Parkway to the Kona International Airport at Keahole has been secured
by the State entering into a construction contract for the improvements, or until
construction has commenced on the 20,000 square foot University building, or the
building's completion has been assured by bond or other security acceptable to the
Planning Director, whichever comes first.
[Q. No retail commercial structures may be located closer than 1,500 feet from the
Queen Kaahumanu Highway right-of-way.]
[R.] P. To ensure that the commercial development corresponds with the applicant's
representations regarding neighborhood -scale commercial development, no single
retail establishment shall have more than 45,000 square feet of developed area
10
under roof.
[S.] Q Total retail space (not including restaurants) shall not exceed 75,000 square feet
under roof until the construction of the Queen Kaahumanu Highway, Phase II
widening improvements to four lanes from Kealakehe Parkway to the Kona
International Airport at Keahole has been secured by the state entering into a
construction contract for the improvements. The square footage of improvements
leased or given to the University of Hawaii shall not count against this limit.
[T.] R. The applicant shall set aside a "Constraints Area" including the approximately 55 -
acre dry forest preserve, archaeological sites/cave and park areas on the project site.
[U.] S. The applicant shall develop one 20 acre active park site prior to [occupancy of the
first residential unit on the property] the issuance of 10151 building permit for a
single family residence within the Project. The 20 acre active park site shall
include two playing fields which may be one baseball field and one soccer field, or
two baseball fields or two soccer fields, parking lot and restrooms, with the specific
requirements to be determined in consultation with the Department of Parks and
Recreation. The 20 acre active park shall be constructed to county-dedicable
standards, and the county shall accept dedication.
[V.] T. There shall be an 800 -foot setback from the Queen Kaahumanu Highway. No
structures, other than those allowed under Condition No. 7 of the Land Use
Commission's Decision and Order, shall be allowed within the 800 -foot setback
area. A copy of the metes and bounds description for this open space area, and
proposed covenant(s) shall be submitted to the Planning Director for review and
approval prior to receipt of Final Plan Approval or land alteration activities,
whichever occurs first. The approved covenant(s) shall be recorded in the Bureau
of Conveyances prior to the issuance of Final Plan Approval, or land alteration
activities, whichever occurs first. A copy of the recorded covenant(s) shall be
11
provided to the Planning Department.
[W.] U. All project utilities shall be underground.
[X.] V. The applicant shall construct the following roads to access other properties and the
regional road system
1. Project access road from the Queen Kaahumanu Highway to the eastern
boundary of the project. (Road "lA, 1B and 1C" on attached map Exhibit
"B"): Road "IA, 1B and 1C " shall intersect with the Queen Kaahumanu
Highway at a location approved by the State Department of Transportation,
and shall connect with Makalei Drive at the eastern (mauka) end. The road
shall be constructed on an 88 -foot wide right-of-way, as a two-lane road, to
county-dedicable standards as a collector road, from the Queen Kaahumanu
Highway to the intersection with Road "3A". From Road "3A" to the
intersection with Makalei Drive, Road "1C" shall be constructed to county-
dedicable standards as a minor street, except that design standards shall be
varied to permit the connection with Makalei Drive without encroaching
into the Lowland Dry Forest Preserve. The connection with Makalei Drive
shall be designed to not encroach into the Lowland Dry Forest Preserve.
The grade shall not exceed 10%, except near the connection with Makalei
Drive. At the Queen Kaahumanu Highway, the intersection shall be
improved in accordance with one of the following two options:
(a) If a grade separated interchange is available to connect Road "1A" to
Queen Kaahumanu Highway when Applicant is ready to construct Road
"IA", Applicant will connect Road "lA" to such interchange and in such
case, Applicant will contribute $1,500,000 to the Department of
Transportation.
12
(b) If a grade separated interchange is not available to connect Road
"IA" to Queen Kaahumanu Highway when Applicant is ready to make the
connection, Applicant shall improve the intersection at its expense as
required by the Department of Transportation, but shall include, at a
minimum, a deceleration and an acceleration lane on Queen Kaahumanu
Highway, a left -turn lane on Queen Kaahumanu Highway, a refuge lane for
vehicles turning left into Queen Kaahumanu Highway, and a dedicated
right -turn and left -turn lane from Road "lA" to Queen Kaahumanu
Highway. If warranted, at the request of Department of Transportation, the
applicant shall install traffic signals and a second left -turn lane from the
main project access road to the Queen Kaahumanu Highway.
2. "Mid -Level Road" from Road "IA" to Kaiminani Drive (Road "2" on
Exhibit `B"): The applicant shall construct the mauka half -section of a 120 -
foot wide right-of-way to county-dedicable standards as a collector road.
The applicant shall construct the intersection at Kaiminani Drive meeting
with the approval of the Department of Public Works, but the intersection
shall include a left -turn lane on Kaiminani Drive.
A north -south collector road at approximately the 600 -foot elevation (Road
"3A" on Exhibit `B"): The north -south collector road shall be designed to
function as a portion of a collector road (Road "4") connecting Highway
190 with Road "IA and 113"and the Queen Kaahumanu Highway. Road
"3A and 313" shall be constructed to county-dedicable standards as a 60 -foot
wide collector road with an 88 -foot wide right-of-way. The applicant shall
construct the intersection between Road "3A and 313" and Road "113"
meeting with the approval of the Department of Public Works.
4. New Connector Road to Mamalahoa Highway Project (Road "4" on
attached Map Exhibit "B"). Applicant shall construct Road "4", at its sole
13
expense, as a two-lane 60 -foot wide county-dedicable collector road,
including shoulders and swales, within an 88 -foot right-of-way. The final
design and maximum grade of Road "4" shall be determined by the Director
of Public Works after consultation with the Planning Director. Applicant
shall not be required to install streetlights, except at the intersection with
Highway 190, or utilities. If another private developer is required to
participate in building Road "4" as a condition of land use approvals,
Applicant's share shall be limited to the portion of Road "4" on Applicant's
property and on State land. The County shall obtain the necessary right-of-
way outside of Applicant's property.
5. A road to connect south to the future extension of Holoholo Street - Nana
Street (Road "5" on Exhibit `B"): The applicant [shall build] must reserve
the right of way for Road "5" [within the project area] for future use as a
County road Applicant must construct the road to [county-] County
dedicable standards as a minor street[,] at its sole expense and dedicate it
[shall intersect with Road "F] to the County of Hawaii when a connection
at the southerly boundary of the Project is open.
6. The Planning Director may require other local streets within the project to
provide local connections to the adjoining property to the north and south as
a condition of subdivision approval or plan approval.
7. At the western (makai) end of Makalei Drive, the applicant shall provide
safety improvements necessary to make a safe transition to Road "1C",
which may include, but are not limited to, rumble strips and establishing
superelevation for the curve, as required by the Department of Public
Works.
8. The following road improvements shall be completed before a certificate of
14
occupancy is issued for any portion of the subject property, or completion of
any single-family homes, whichever comes first:
(a) Road "lA", at least from the Queen Kaahumanu Highway to the
intersection with the Mid -Level Road (Road "2"); and
[(b) the intersection of the main project access road with the Queen
Kaahumanu Highway; and]
[(c)](b)the Mid -Level Road (Road "2) from the main project access road to
Kaiminani Drive, and the Kaiminani Drive intersection.
9. Road "1C" shall be built on the earlier of the following events:
(a) whenever Road 4 is required to be built under other conditions of
this ordinance; and
prior to the issuance of the 2501h residential building_ permit within
the Project.
[9.] 1O.The following road improvements shall be secured by bond or other surety
meeting with the approval of the Planning Director to guarantee that the
improvements will be completed within two (2) years after the issuance of a
certificate of occupancy for any portion of the subject property, or
completion of any single-family homes, whichever comes first:
(a) the remaining portion of Road "1", including any necessary
improvements to the lower portion of Makalei Drive;
(b) Road "Y', and
15
(c) Road "5."
[10.] 11. Applicant shall complete Road "4" no later the six (6) years after the
effective date of this ordinance, except as may be allowed under Condition
"UU". Applicant shall assure the completion of Road "4" by bond or other
security accepted by the Planning Director no later than the issuance of a
certificate of occupancy for any building, other than the University or the
State Department of Education (DOE) building, or final subdivision
approval for any subdivision creating single-family residential lots.
Certificate of occupancy for any building, other than the University or DOE
building shall not be issued, and final subdivision approval for any
subdivision creating single-family residential lots shall not be granted, until
the necessary right-of-way for Road "4" has been obtained from any other
private landowner.] Roads "113 3A and 313" shall be built on the earlier of
the following events:
(a) whenever Road 4 is required to be built under other conditions of
this ordinance; and
development of a portion of the Property that requires a collector
road that must be connected to Road "1A"
[ 11.]12Makalei Drive is a "minor road" and will not be open to the public until the
collector Road 4 is open for public use.
13. Applicant shall continue preparatory work for design of Road "4" including
working with the County of Hawaii to secure the right of way for Road 4
across State of Hawaii lands and providing information necessary for the
County of Hawaii to arrange the right of way over privately owned lands.
IV
As part of the preparatory work, Applicant will, after obtaining necessary
approvals from the affected land owner "pioneer the center -line" of Road 4
on the ground no later than June 1, 2011. Applicant shall complete Road
114" by the later of the date that the County obtains the right of way for Road
4 and the date that Applicant receives the 600`n building permit for
residences in the Proiect. If third party funding for at least 50% of the
construction cost for the segment of Road 4 that is not within the State of
Hawaii land is then available, Applicant will fund the remainder of the
construction cost and complete Road 4 before the building permit for the
401'` residential unit in the Project is issued.The improvements for Road 4
shall be secured by a $10,000,000.00 bond or other surety meeting with the
approval of the Planning Director to guarantee that the improvements will
be completed as required by this ordinance. The bond or other surety shall
be made prior to issuance of Final Subdivision Approval for any subdivision
in the Project containing a single family residential lot;
[Y.]W. There shall be no direct access from individual lots to collector streets.
[Z.]X. Construction vehicles shall not utilize Makalei Drive.
[AA.]Y. No vehicular security gate shall be installed within sixty (60) feet of any proposed
county road and a turnaround gate shall be provided within the private road or
property on the county road side of the gate.
[BB.]Z. All development generated runoff shall be disposed of on-site and shall not be
directed toward any adjacent properties. A drainage study shall be prepared and
submitted to the Department of Public Works prior to issuance of any construction
permit. Drainage improvements shall be constructed, meeting with the approval of
the Department of Public Works, prior to issuance of a certificate of occupancy for
any buildings, or final subdivision approval for any subdivision creating single-
family residential lots.
17
[CC.]AA. A Solid Waste Management Plan shall be prepared and submitted for approval to
the Department of Environmental Management prior to submitting plans for Plan
Approval review. Approved recommendations and mitigation measures shall be
implemented in a manner meeting with the approval of the Department of
Environmental Management.
[DD.]BB. A wastewater treatment system shall be constructed, meeting the approval of the
State Department of Health and/or Department of Environmental Management,
whichever is applicable. All wastewater shall be treated at an approved wastewater
treatment plant, to a minimum of secondary treatment, with R-1 effluent, unless a
greater level of treatment is required by the Department of Health. Wastewater
shall be used for irrigation of landscaping or other beneficial reuse to the maximum
extent feasible.
[EEJCC. University of Hawaii Condition. Applicant shall provide the following to relocate
the University of Hawaii operations:
1. Connectivity with the University of Hawaii 500 acre site. Applicant shall allow
the University of Hawaii to connect with its wastewater and water supply systems.
Applicant shall also allow the University of Hawaii to connect electrical and
telecommunication systems to facilities installed within the project. These
connectivity sites shall be to the University's satisfaction and located along its
northern boundary on Road "1A".
Build Applicant's wastewater treatment system to handle the wastewater from the
initial University of Hawaii building and design the wastewater treatment system
to accommodate future expansion for wastewater from future expansion of the
University of Hawaii operations.
OM
Design and construct an initial classroom and administration building of 20,000
square feet, with associated parking, at Applicant's expense. If the University of
Hawaii's design results in the cost of design and constructing of the building and
associated parking exceeding $5,000,000, Applicant shall be responsible for the
first $5,000,000 and the University shall be responsible for the balance. The
building shall be constructed on the State land designated for University use.
Construction on the building shall commence as soon as the University has required
the necessary consents and approvals. If the necessary consents and approvals
cannot be obtained by the State, the University shall have the right to lease from
Applicant appropriate space to house University of Hawaii at West Hawaii until
the necessary consents and approvals are obtained at comparable lease rates now
being paid by the University of Hawaii until the 20,000 square foot building can be
constructed on the State land at Applicant's expense. Applicant shall commence
construction of the building, or assure its construction by a bond or other security
accepted by the Planning Director and the Chancellor of Hawaii Community
College, before the issuance of a certificate of occupancy for any building, other
than the DOE building, or final subdivision approval for any subdivision creating
single-family residential lots. Applicant shall complete construction of the
University building no later than two (2) years after the issuance of a certificate of
occupancy for any building, other than the DOE building, or final subdivision
approval for any subdivision creating singe -family residential lots. The location
and design of the building (interior and exterior) and related improvements will be
on terms determined by the University of Hawaii. The University of Hawaii shall
consult on design of said building with Applicant.
[FF.]DD. Applicant shall enter into an agreement with the DOE, in accordance with the terms
of the State Land Use Decision and Order (Docket No. AO3-744) dated May 19,
2005. If Applicant's agreement with the DOE is later amended, Applicant shall file
a copy of such amendment with the Planning Department and shall comply with the
terms of the amended agreement. Applicant shall contribute to the DOE an 8,000
19
square foot building within the project site to use for a period of twenty (20) years,
subject to the following conditions:
No rent or common area maintenance fees will be charged to the DOE.
2. The building will be used as instructional and office space for the school
complexes located in West Hawaii.
The building will meet DOE facility standards, with finished classrooms,
workshops and offices.
4. Applicant will collaborate with the DOE on the requirements of the building in
order to develop building plan subject to DOE approval.
5. The finished building will be available to the DOE within two (2) years of the
issuance of a certificate of occupancy for any multifamily residential building,
or within two (2) years from the completion of any single-family residential
building within the development, whichever comes first.
6. Following the initial twenty (20) year period when the building will be made
available to the DOE, the building will be made available to the DOE for
additional years, at the prevailing rental rates.
If the DOE and Applicant determine that despite good efforts, a building cannot
be provided, or the DOE no longer needs the facility and its design has not been
completed, Applicant will make an equivalent school fair -share cash
contribution in an amount to be determined by the DOE. This cash contribution
shall be expressly reserved for use within the Kealakehe complex of schools.
8. The value of the building and its use is meant to be credited against any DOE
20
requirements under the State Land Use Decision and Order.
[GG.]EE. An Emergency Response Plan shall be submitted to the Civil Defense Agency for
review and approval, prior to the issuance of a certificate of occupancy.
[HH.]FF. To ensure that the Goals and Policies of the Housing Element of the General Plan
are implemented, the applicant shall comply with the requirements of Chapter 11,
Article 1, Hawaii County Code, relating to Affordable Housing Policy. This
requirement shall be approved by the Administrator of the Office of Housing and
Community Development prior to receipt of Final Plan Approval and/or Final
Subdivision Approval for any subdivision creating single-family residential lots,
whichever occurs first. The reduction in minimum lot sizes and the increase in
density permitted by Section 11-8, Hawaii County Code, for affordable housing
built on-site shall not apply to this project district because the reduction in
minimum lot sizes has already been incorporated into the conditions of this project
district zoning, and the limit on residential units stated is meant to include
affordable units built on-site. Applicant shall satisfy its affordable housing
requirements by on-site construction of units, and not utilize any affordable housing
credits generated off-site.
[II.]GG. Should any unidentified sites or remains such as artifacts, shell, bone, or charcoal
deposits, human burials, rock or coral alignments, pavings or walls be encountered,
work in the immediate area shall cease and the Department of Land and Natural
Resources -Historic Preservation Division (DLNR-HPD) shall be immediately
notified. Subsequent work shall proceed upon an archaeological clearance from the
DLNR-HPD when it is found that sufficient mitigation measures have been taken.
[JJ.]HH. The applicant shall implement the Integrated Natural Cultural Resource
Management Plan (INCRMP) dated May 19, 2005, for the Lowland Dry Forest
Preserve (Exhibit "D" and "F" to the INCRMP). Preservation actions, with fire
21
control as a priority, shall begin no later than six months after the effective date of
this ordinance.
[KK.]II. The applicant shall protect all uhiuhi and `aiea trees, and shall use best efforts to
preserve the major stands of wiliwili trees.
[LL.]JJ. The applicant shall implement the INCRMP for the cave areas (Exhibit "E" to the
INCRMP).
[MM.]KK. The applicant shall implement the Archaeological Preservation Plan (Exhibit "C" to
the INCRMP), along with any amendments and modifications thereto as approved
by the State Historic Preservation Division.
[NN.]LL. The Planning Director may approve modifications to the INCRMP conforming to
the general purposes of the INCRMP, after consultation with the DLNR-DOFAW.
[00.]MM.To ensure that the property will be developed as an integrated project, the applicant
shall establish covenants to all deeds to any parcels, except parcels to be conveyed
to individual residents, that require a master association to administer the
development of the project district in accordance with the conditions of land use
approvals. The covenants shall give notice that the various parcels are subject to an
overall zoning that requires coordinated development. Until the master association
is formed, the applicant shall be responsible for ongoing duties such as the
management of the Dry Forest Preserve Area and other stewardship duties, and for
contingent project responsibilities. After the formation of the master association,
those responsibilities, except for offsite infrastructure requirements, shall be
transferred to the master association.
[PR]NN. The applicant shall make its fair share contribution to mitigate the potential regional
impacts of the property with respect to parks and recreation, fire, police, solid waste
22
disposal facilities and roads. The fair share contribution shall become due and
payable on the sale or lease of residential units subject to such contribution. The
fair share contribution shall have a maximum combined value of $6,411.25 per
multiple family residential unit ($9,991.20 per single family residential unit). The
total amount shall be determined with the actual number of units according to the
calculation and payment provisions set forth in this condition. The fair share
contribution per multiple family residential unit (single family residential units)
shall be allocated as follows:
1. $3,162.49 per multiple family residential unit ($4,817.93 per single family
residential unit) to the County to support park and recreational
improvements and facilities;
2. $99.95 per multiple family residential unit ($232.42 per single family
residential unit) to the County to support police facilities;
3. $307.46 per multiple family residential unit ($459.06 per single family
residential unit) to the County to support fire facilities;
4. $137.04 per multiple family residential unit ($200.98 per single family
residential unit) to the County to support solid waste facilities; and
5. $2,704.31 per multiple family residential unit ($4,280.82 per single family
residential unit) to the County to support road and traffic improvements.
The fair share contribution shall be waived for the affordable housing units. In lieu
of paying the fair share contribution, the applicant may contribute land and/or
construct improvements/facilities related to fire, police, and solid waste disposal
facilities within the region impacted by the proposed development, subject to the
review and recommendation of the Planning Director, upon consultation with the
23
appropriate agencies and approval of the County Council. With respect to the fair
share contribution for parks and recreation, that contribution for all residential units
will be satisfied when Applicant completes and offers for dedication all of the land
facilities for the active use park described in Condition "U" above. The fair share
contribution for roads will be satisfied upon completion of the Mid -Level Road
(Road "2"), Road "3A and 3131', Road "5" and Road "4".
[QQJOO. Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for
imposition of exactions or the assessment of impact fees, conditions included herein
shall be credited towards the requirements of the Unified Impact Fees Ordinance.
[RRJPP. Comply with all other applicable County, State and Federal laws, rules, regulations
and requirements.
[SS.IQQ. An annual progress report shall be submitted to the Planning Director prior to the
anniversary date of the approval of this Project District Ordinance. The report shall
include, but not be limited to, the status of the development and the extent to which
the conditions of approval are being satisfied. This condition shall remain in effect
until all of the conditions of approval have been satisfied and the Director
acknowledges that further reports are not required.
[TTJRR. An initial extension of time for the performance of conditions within the ordinance,
[except for the six-year time limit in Condition X.10,] may be granted by the
Planning Director upon the following circumstances.
The non-performance is the result of conditions that could not have been
foreseen or are beyond the control of the applicant, successors or assigns,
and that are not the result of their fault or negligence.
24
2. Granting of the time extension would not be contrary to the General Plan or
Zoning Code.
Granting of the time extension would not be contrary to the original reasons
for the granting of the Project District.
The time extension granted shall be for a period not to exceed the period
originally granted for performance (i.e., a condition to be performed within
one year may be extended for up to one additional year).
5. If the applicant should require an additional extension of time the Planning
Department shall submit the applicant's request to the County Council for
appropriate action.
Should any of the conditions not be met or substantially complied with in a timely
fashion, the Planning Director may initiate rezoning of the subject area to its
original or more appropriate designation.
[UU.]SS. [The Planning Director may permit an extension of the six-year time limit to
complete Road "4" in Condition X.10, provided that the requirements of
Condition "TT" are met, and, in addition, the new deadline for the completion of
Road "4" is not more than two (2) years after the completion of any building,
including single-family residential buildings, other than the University building or
the DOE building.]
SECTION 3. In the event that any portion of this ordinance is declared invalid, such
invalidity shall not affect the other parts of this ordinance.
OR
SECTION 4. This ordinance shall take effect upon its approval.
Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
26
a
COUNTY OF HAWAII ". STATE OF HAWAII
BILL NO. 224
Draft 9
ORDINANCE NO. 46 105
AN ORDINANCE AMENDING SECTION 25-8-3 (NORTH KONA ZONE MAP), ARTICLE 8,
CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE 1983 (2005 EDITION),
BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL (A -3a) AND
OPEN TO PROJECT DISTRICT (PD) AT KAU, NORTH KONA, HAWAII, COVERED BY
TAX MAP KEY 7-2-5:1.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAPI:
SECTION 1. Section 25-8-3, Article 8, Chapter 25 (Zoning Code) of the Hawaii County
Code 1983 (2005 Edition), is amended to change the district classification of property described
hereinafter as follows:
The district classification of the following areas situated at Kau, North Kona,
Hawaii, shall be Project District (PD):
PARCEL "A":
Beginning at the northwest comer of this parcel, being also along the east side of
Queen Kaahumanu Highway (Project No.: 19 BC -01-71), the coordinates of said point of
beginning referred to Government Survey Triangulation Station "AKAHIPUU", being
9,071.21 feet North and 23,751.69 feet West and thence running by azimuths measured
clockwise from true South:
1. 2910
46' 30"
5726.03
2. 170
56'
2314.09
feet along the Kukio-Goma Government
Tracts;
feet;
3. 1150 03' 36" 5449.47 feet along the Government Lands of Makaula;
4. 1890 19' 55" 2044.65 feet along the east side of Queen Kaahumanu
Highway (Project No.: 19 BC -01-71) to the
point of beginning and containing an area of
274.861 Acres.
Planning Dept.
Exhibit
PARCEL "B":
Beginning at the northwest corner of this parcel, being also along the south side of
Kukio-Goma Government Tracts, the coordinates of said point of beginning referred to
Government Survey Triangulation Station "AKAHIPUU", being 6,947.06 feet North and
18,434.23 feet West and thence running by azimuths measured clockwise from true South:
1. 2910 46' 30" 784.96 feet along the Kukio-Goma Government
Tracts;
2. 2800 28' 22" 2806.44 feet along the Kukio-Goma Government
Tracts;
3. 2900 55' 24" 3323.43 feet along the Kukio-Goma Government
Tracts;
4. 170 14' 2844.54 feet along Lots 36, 37, 38, 44, 15, 14, 13, 12,
11, 10 and 9 of Makalai Estates — Phase 2
(File Plan 2294);
5. 1000 15' 30" 1838.50 feet along the Government Lands of Makaula;
6. 1150 03' 36" 5137.19 feet along the Government Lands of Makaula;
7. 1970 56' 2314.09 feet to the point of beginning and containing
an area of 450.343 Acres.
All as shown on the map attached hereto, marked Exhibit "A" and by reference .
made a part hereof.
SECTION 2. In accordance with Section 25-2-44, Hawaii County Code 1983 (2005
Edition), the County Council finds the following conditions are:
(1) Necessary to prevent circumstances which may be adverse to the public
health, safety and welfare; or
(2) Reasonably conceived to fulfill needs directly emanating from the land use
proposed with respect to:
(A) Protection of the public from the potentially deleterious effects of the
proposed use, or
(B) Fulfillment of the need for public service demands created by the
proposed use.
01
A. The applicant, successors or assigns shall be responsible for complying with all of
the stated conditions of approval.
B. The applicant shall comply with all conditions of approval of the State Land Use
Commission's Decision and Order (Docket No. A03-744) dated May 19, 2005.
C. The applicant shall comply with the conditions as set forth in the Water Agreement
between K -W Kau, LLC and the Water Commission of the County of Hawaii dated
June 15, 1999.
D. The project shall consist of a maximum of 725.2 acres for single-family and multi-
family residential, commercial uses, hotel, university and public school facilities,
dry forest preserve, archaeological and cave preserve areas, active and passive
parks, a trail system and supporting infrastructure.
E. The maximum number of residential units allowed shall be 1,116 units, including
the on-site affordable housing units.
P. The maximum number of hotel rooms shall be 120.
G. Commercial spaces for medical, office, retail, classrooms and health related uses
and hotel shall be limited to 102 acres.
H. Active and passive parks (Open, Park and Preservation) shall be developed on a
minimum of 177.8 acres. A "Constraints Area" which includes the approximately
55 -acre dry forest preserve, archaeological sites/cave and park areas, shall be set
aside in the project area.
1. The uses allowed in the Project District shall be all permitted uses allowed by right
in the RS, RM, CN and CV zoned districts, and related facilities. Uses allowed by
Use Permit in the CV district, other than golf courses, may be allowed by use
permit.
A detailed Master Plan of the Project District, which includes the location and
number of residential lots and units, hotel, university and public school facilities,
commercial uses, parking, open space and recreational areas and other related
improvements on the property, shall be submitted to the Planning Director within
two (2) years from the effective date of the Project District Ordinance or prior to
submission of plans for plan approval or subdivision approval, whichever occurs
first.
K. Substantial construction of the proposed development shall commence within five
(5) years from the effective date of the Project District Ordinance. "Substantial
construction" means the actual start of construction of project infrastructure under a
bona fide contract of not less than ten million dollars ($10,000,000.00). Prior to
construction, the applicant, successors or assigns shall secure Final Plan Approval
for the proposed development from the Planning Director in accordance with
Section 25-2-70, Chapter 25 (Zoning Code), Hawaii County Code. Pians shall
identify proposed structures, fire protection measures, paved accesses and parking
stall, and other improvements associated with the proposed uses.
L. The following design standards shall apply:
1. Landscaping for the development shall comply with the Planning
Department's Rule No. 17, Landscaping Requirements. Landscaping Hiles,
such as the screening of single-family residential from commercial areas,
shall be applied according to the actual uses.
2. The height limit for structures within the project area shall not exceed the
following:
4
a. Single-family residential development: 35 feet
b. Multiple -family residential and hotel developments: 45 feet
c. office and retail commercial development (not more than three
stories): 45 feet.
3. The minimum off-street parking and loading space requirements of Chapter
25, Hawaii County Code shall be complied with, including compliance with
the American Disabilities Act (ADA) requirements.
M. The variances from Chapters 23 (Subdivision) and 25 (Zoning), Hawaii County
Code, as presented in Planning Department Exhibit 2 (Applicant's November 21,
2005 letter with attached Tables pages 1 to 6 related to Variance Requested from
Sections in Subdivision and Zoning Codes, and Applicant's Figure 2 - Conceptual
Character of Town Center/Residential Village Center, Figure 3a - Residential
Village Center Alternative: 4,000 SF Lot, Figure 3b - Residential Village Center
Alternatives: 6,000 SF Lot, Figure 4a - Conceptual Plan: Roadway Concepts -
Dedicable, Figure 0 - Conceptual Plan: Roadway Concepts - Nondedicable, and
Figure 5 - Residential Village Center Alternatives: Zone Lot Line Concepts) shall
be allowed under the Project District. The applicant shall submit detailed plans to
the Planning Director showing street designs and cross-sections, and adjacent
building designs, with the Master Plan. The Planning Director may require
modifications to the street sections to provide sufficient on -street parking where the
plans do not provide adequate off-street parking (such as the 4,000 -square foot lots
with a one -car garage and insufficient setbacks to allow parking in driveways), and
may require further changes necessary for public safety and convenience. All roads
built with the variances allowed under this condition will be non-dedicable. With
regard to the requested zero line building setbacks, the applicant shall conform to
the current Hawaii County Building Code requirements. As part of the Master
Plan, the applicant shall submit plans for pedestrian movement through the project
district, which shall identify areas where sidewalks will be included to permit safe
pedestrian access to the Town Center and other important points in the
development.
N. To ensure that the project is developed according to its stated goal of creating a
mixed use residential community, the project must include residential development.
The project shall have at least one residential unit for every 600 square feet of
nonresidential development (under roof). Space used by the University shall not be
included in the calculation of nonresidential space. There is no minimum
requirement for the nonresidential development.
q. The permitted hotel, designated as the "University Inn and Conference Center,"
shall function as a business hotel and in conjunction with University operations. It
shall not be operated under a time-share plan or other arrangement that provides for
shared ownership of individual units on the basis of time intervals, or club
membership allowing periodic use.
P. Occupancy of the hotel shall not be granted until the construction of the Queen
Kaahumanu Highway, Phase lI widening improvements to four lanes from
Kealakehe Parkway to the Kona International Airport at Keahole has been secured
by the State entering into a construction contract for the improvements, or until
construction has commenced on the 20,000 square foot University building, or the
building's completion has been assured by bond or other security acceptable to the
Planning Director, whichever comes fust.
Q. No retail commercial structures may be located closer than 1,500 feet from the
Queen Kaahumanu Highway right-of-way.
To ensure that the commercial development corresponds with the applicant's
representations regarding neighborhood -scale commercial development, no single
retail establishment shall have more than 45,000 square feet of developed area
under roof.
Total retail space (not including restaurants) shall not exceed 75,000 square feet
3 under roof until the construction of the Queen Kaahumanu Highway, Phase 11
widening improvements to four lanes from Kealakehe Parkway to the Kona
International Airport at Keahole has been secured by the state entering into a
construction contract for the improvements. The square footage of improvements
leased or given to the University of Hawaii shall not count against this limit.
T. The applicant shall set aside a "Constraints Area" including the approximately 55 -
acre dry forest preserve, archaeological sites/cave and park areas on the project site.
U. The applicant shall develop one 20 acre active park site prior to occupancy of the
first residential unit on the property. The 20 acre active park site shall include two
playing fields which may be one baseball field and one soccer field, or two baseball
fields or two soccer fields, parking lot and restrooms, with the specific requirements
to be determined in consultation with the Department of Parks and Recreation. The
20 acre active park shall be constructed to county-dedicable standards, and the
county shall accept dedication.
V. There shall be an 800 -foot setback from the Queen Kaahumanu Highway. No
structures, other than those allowed under Condition No. 7 of the Land Use
Commission's Decision and order, shall be allowed within the 800 -foot setback
area. A copy of the metes and bounds description for this open space area, and
proposed covenant(s) shall be submitted to the Planning Director for review and
approval prior to receipt of Final Plan Approval or land alteration activities,
whichever occurs first. The approved covenant(s) shall be recorded in the Bureau
of Conveyances prior to the issuance of Final Plan Approval, or land alteration
activities, whichever occurs first. A copy of the recorded covenant(s) shall be
provided to the Planning Department.
W. All project utilities shall be underground.
X. The applicant shall construct the following roads to access other properties and the
regional road system:
Project access road from the Queen Kaahumanu Highway to the eastern
boundary of the project. (Road "1" on attached map Exhibit "B"): Road "1"
shall intersect with the Queen Kaahumanu Highway at a location approved
by the State Department of Transportation, and shall connect with Makalei
Drive at the eastern (mauka) end. The road shall be constructed on an 88 -
foot wide right-of-way, as a two-lane road, to county-dedicable standards as
a collector road, from the Queen Kaahumanu Highway to the intersection
with Road "3". From Road "3" to the intersection with Makalei Drive, Road
"I" shall be constructed to county-dedicable standards as a minor street,
except that design standards shall be varied to permit the connection with
Makalei Drive without encroaching into the Lowland Dry Forest Preserve.
The connection with Makalei Drive shall be designed to not encroach into
the Lowland Dry Forest Preserve. The grade shall not exceed 101/o, except
near the connection with Makalci Drive. At the Queen Kaahumanu
Highway, the intersection shall be improved in accordance with one of the
following two options:
(a) If a grade separated interchange is available to connect Road "1" to
Queen Kaahumanu Highway when Applicant is ready to construct Road
"1", Applicant will connect Road "1" to such interchange and in such case,
Applicant will contribute $1,500,000 to the Department of Transportation.
(b) If a grade separated interchange is not available to connect Road "1"
to Queen Kaahumanu Highway when Applicant is ready to make the
connection, Applicant shall improve the intersection at its expense as
required by the Department of Transportation, but shall include, at a
minimum, a deceleration and an acceleration lane on Queen Kaahumanu
Highway, a left -tum lane on Queen Kaahumanu Highway, a refuge lane for
vehicles turning left into Queen Kaahumanu Highway, and a dedicated
right -tum and left -turn lane from Road "1" to Queen Kaahumanu Highway.
If warranted, at the request of Department of Transportation, the applicant
shall install traffic signals and a second left -tum lane from the main project
access road to the Queen Kaahumanu Highway.
2. "Mid -Level Road" from Road "1" to Kaiminani Drive (Road "2" on Exhibit
"B"): The applicant shall construct the mauka half -section of a 120 -foot
wide right-of-way to county-dedicable standards as a collector road. The
applicant shall construct the intersection at Kaiminani Drive meeting with
the approval of the Department of Public Works, but the intersection shall
include a left -tum lane on Kaiminani Drive.
3. A north -south collector road at approximately the 600 -foot elevation (Road
"3" on Exhibit `B"): The north -south collector road shall be designed to
function as a portion of a collector road (Road "4") connecting Highway
190 with Road " 1 "and the Queen Kaahumanu Highway. Road "3" shall be
constructed to county-dedicable standards as a 60 -foot wide collector road
with an 88 -foot wide right-of-way. The applicant shall construct the
intersection between Road "3" and Road "I" meeting with the approval of
the Department of Public Works.
4. New Connector Road to Mamalahoa Highway Project (Road "4" on
attached Map Exhibit "B"). Applicant shall construct Road "4", at its sole
expense, as a two-lane 60 -foot wide county-dedicable collector road,
including shoulders and swales, within an 88 -foot right-of-way. The final
design and maximum grade of Road "4" shall be determined by the Director
of Public Works after consultation with the Planning Director. Applicant
shall not be required to install streetlights, except at the intersection with
Highway 190, or utilities. If another private developer is required to
participate in building Road "4" as a condition of land use approvals,
Applicant's share shall be limited to the portion of Road "4" on Applicant's
property and on State land. The County shall obtain the necessary right-of-
way outside of Applicant's property.
5. A road to connect south to the future extension of Holoholo Street - Nana
Street (Road "5" on Exhibit `B"): The applicant shall build Road "5"
within the project area to county-dedicable standards as a minor street, and
it shall intersect with Road "1 ".
6. The Planning Director may require other local streets within the project to
provide local connections to the adjoining property to the north and south as
a condition of subdivision approval or plan approval.
7. At the western (makai) end of Makalei Drive, the applicant shall provide
safety improvements necessary to make a safe transition to Road 9 ", which
may include, but are not limited to, rumble strips and establishing
superelevation for the curve, as required by the Department of Public
Works.
8. The following road improvements shall be completed before a certificate of
occupancy is issued for any portion of the subject property, or completion of
any single-family homes, whichever comes first:
(a) Road "1 ", at least from the Queen Kaahumanu Highway to the
intersection with the Mid -Level Road (Road' 2");
10
(b) the intersection of the main project access road with the Queen
Kaahumanu Highway; and
(c) the Mid -Level Road (Road "2) from the main project access road to
Kaiminani Drive, and the Kaiminani Drive intersection.
9. The following road improvements shall be secured by bond or other surety
meeting with the approval of the Planning Director to guarantee that the
improvements will be completed within two (2) years after the issuance of a
certificate of occupancy for any portion of the subject property, or
completion of any single-family homes, whichever comes first:
(a) the remaining portion of Road "I", including any necessary
improvements to the lower portion of Makalei Drive;
(b) Road "3", and
(c) Road "5."
10. Applicant shall complete Road "4" no later the six (6) years after the
effective date of this ordinance, except as may be allowed under Condition
"UU". Applicant shall assure the completion of Road "4" by bond or other
security accepted by the Planning Director no later than the issuance of a
certificate of occupancy for any building, other than the University or the
State Department of Education (DOE) building, or final subdivision
approval for any subdivision creating single-family residential lots.
Certificate of occupancy for any building, other than the University or DOE
building shall not be issued, and final subdivision approval for any
subdivision creating single-family residential lots shall not be granted, until
11
the necessary right-of-way for Road "4" has been obtained from any other
private landowner.
11. Makalei Drive is a "minor road" and will not be open to the public until the
collector Road 4 is open for public use.
Y. There shall be no direct access from individual lots to collector streets.
Z. Construction vehicles shall not utilize Makalei Drive.
AA. No vehicular security gate shall be installed within sixty (60) feet of any proposed
county road and a turnaround gate shall be provided within the private road or
property on the county road side of the gate.
BB. All development generated runoff shall be disposed of on-site and shall not be
directed toward any adjacent properties. A drainage study shall be prepared and
submitted to the Department of Public Works prior to issuance of any construction
permit. Drainage improvements shall be constructed, meeting with the approval of
the Department of Public Works, prior to issuance of a certificate of occupancy for
any buildings, or final subdivision approval for any subdivision creating single-
family residential lots.
CC. A Solid Waste Management Plan shall be prepared and submitted for approval to
the Department of Environmental Management prior to submitting plans for Plan
Approval review. Approved recommendations and mitigation measures shall be
implemented in a manner meeting with the approval of the Department of
Environmental Management.
DD. A wastewater treatment system shall be constructed, meeting the approval of the
State Department of Health and/or Department of Environmental Management,
whichever is applicable. All wastewater shall be treated at an approved wastewater
12
treatment plant, to a minimum of secondary treatment, with R-1 effluent, unless a
greater level of treatment is required by the Department of Health. Wastewater
shall be used for irrigation of landscaping or other beneficial reuse to the maximum
extent feasible.
EE. University of Hawai'i Condition. Applicant shall provide the following to relocate
the University of Hawai'i operations:
Connectivity with the University of Hawaii 500 acre site. Applicant shall allow
the University of Hawai'i to connect with its wastewater and water supply systems.
Applicant shall also allow the University of Hawaii to connect electrical and
telecommunication systems to facilities installed within the project. These
connectivity sites shall be to the University's satisfaction and located along its
northern boundary on Road "I ".
2. Build Applicant's wastewater treatment system to handle the wastewater from the
initial University of Hawai'i building and design the wastewater treatment system
to accommodate future expansion for wastewater from future expansion of the
University of Hawai'i operations.
3. Design and construct an initial classroom and administration building of 20,000
square feet, with associated parking, at Applicant's expense. If the University of
Hawaii's design results in the cost of design and constructing of the building and
associated parking exceeding $5,000,000, Applicant shall be responsible for the
first $5,000,000 and the University shall be responsible for the balance. The
building shall be constructed on the State land designated for University use,
Construction on the building shall commence as soon as the University has required
the necessary consents and approvals. If the necessary consents and approvals
cannot be obtained by the State, the University shall have the right to lease from
Applicant appropriate space to house University of Hawai'i at West Hawai'i until
13
the necessary consents and approvals are obtained at comparable lease rates now
being paid by the University of Hawaii until the 20,000 square foot building can be
constructed on the State land at Applicant's expense. Applicant shall commence
construction of the building, or assure its construction by a bond or other security
accepted by the Planning Director and the Chancellor of Hawaii Community
College, before the issuance of a certificate of occupancy for any building, other
than the DOE building, or final subdivision approval for any subdivision creating
single-family residential lots. Applicant shall complete construction of the
University building no later than two (2) years after the issuance of a certificate of
occupancy for any building, other than the DOE building, or final subdivision
approval for any subdivision creating singe -family residential lots. The location
and design of the building (interior and exterior) and related improvements will be
on terms determined by the University of Hawaii. The University of Hawaii shall
consult on design of said building with Applicant.
FF. Applicant shall enter into an agreement with the DOE, in accordance with the terms
of the State Land Use Decision and Order (Docket No. A03-744) dated May 19,
2005. If Applicant's agreement with the DOE is later amended, Applicant shall file
a copy of such amendment with the Planning Department and shall comply with the
terms of the amended agreement. Applicant shall contribute to the DOE an 8,000
square foot building within the project site to use for a period of twenty (20) years,
subject to the following conditions:
No rent or common area maintenance fees will be charged to the DOE.
2. The building will be used as instructional and office space for the school
complexes located in West Hawaii,
3. The building will meet DOE facility standards, with finished classrooms,
workshops and offices.
14
4. Applicant will collaborate with the DOE on the requirements of the building in
order to develop building plan subject to DOE approval.
5. The finished building will be available to the DOE within two (2) years of the
issuance of a certificate of occupancy for any multifamily residential building,
or within two (2) years from the completion of any single-family residential
building within the development, whichever comes first.
6. Following the initial twenty (20) year period when the building will be made
available to the DOE, the building will be made available to the DOE for
additional years, at the prevailing rental rates.
If the DOE and Applicant determine that despite good efforts, a building cannot
be provided, or the DOE no longer needs the facility and its design has not been
completed, Applicant will make an equivalent school fair -share cash
contribution in an amount to be determined by the DOE. This cash contribution
shall be expressly reserved for use within the Kealakehe complex of schools.
8. The value of the building and its use is meant to be credited against any DOE
requirements under the State Land Use Decision and Order.
GG. An Emergency Response Plan shall be submitted to the Civil Defense Agency for
review and approval, prior to the issuance of a certificate of occupancy.
HH. To ensure that the Goals and Policies of the Housing Element of the General Plan
are implemented, the applicant shall comply with the requirements of Chapter 11,
Article 1, Hawaii County Code, relating to Affordable Housing Policy. This
requirement shall be approved by the Administrator of the Office of Housing and
Community Development prior to receipt of Final Plan Approval and/or Final
W1
Subdivision Approval for any subdivision creating single-family residential lots,
whichever occurs first. The reduction in minimum lot sizes and the increase in
density permitted by Section 11-8, Hawaii County Code, for affordable housing
built on-site shall not apply to this project district because the reduction in
minimum lot sizes has already been incorporated into the conditions of this project
district zoning, and the limit on residential units stated is meant to include
affordable units built on-site. Applicant shall satisfy its affordable housing
requirements by on-site construction of units, and not utilize any affordable housing
credits generated off-site.
II. Should any unidentified sites or remains such as artifacts, shell, bone, or charcoal
deposits, human burials, rock or coral alignments, pavings or walls be encountered,
work in the immediate area shall cease and the Department of Land and Natural
Resources -Historic Preservation Division (DLNR-HPD) shall be inunediately
notified. Subsequent work shall proceed upon an archaeological clearance from the
DLNR-HPD when it is found that sufficient mitigation measures have been taken.
JJ. The applicant shall implement the Integrated Natural Cultural Resource
Management Plan (INCRMP) dated May 19, 2045, for the Lowland Dry Forest
Preserve (Exhibit "D" and "F" to the INCRMP). Preservation actions, with fire
control as a priority, shall begin no later than six months after the effective date of
this ordinance.
KK. The applicant shall protect all uhiuhi and 'aiea trees, and shall use best efforts to
preserve the major stands of wiliwili trees.
LL. The applicant shall implement the INCRMP for the cave areas (Exhibit `B" to the
INCRMP).
MM. The applicant shall implement the Archaeological Preservation Plan (Exhibit "C" to
16
the INCRMP), along with any amendments and modifications thereto as approved
by the State Historic Preservation Division.
NN. The Planning Director may approve modifications to the INCRMP conforming to
the general purposes of the INCRMP, after consultation with the DLNR-DOFAW.
00. To ensure that the property will be developed as an integrated project, the applicant
shall establish covenants to all deeds to any parcels, except parcels to be conveyed
to individual residents, that require a master association to administer the
development of the project district in accordance with the conditions of land use
approvals. The covenants shall give notice that the various parcels are subject to an
overall zoning that requires coordinated development. Until the master association
is formed, the applicant shall be responsible for ongoing duties such as the
management of the Dry Forest Preserve Area and other stewardship duties, and for
contingent project responsibilities. After the formation of the master association,
those responsibilities, except for offsite infrastructure requirements, shall be
transferred to the master association.
PP. The applicant shall make its fair share contribution to mitigate the potential regional
impacts of the property with respect to parks and recreation, fire, police, solid waste
disposal facilities and roads. The fair share contribution shall become due and
payable on the sale or lease of residential units subject to such contribution. The
fair share contribution shall have a maximum combined value of $6,411.25 per
multiple family residential unit ($9,991.20 per single family residential unit). The
total amount shall be determined with the actual number of units according to the
calculation and payment provisions set forth in this condition. The fair share
contribution per multiple family residential unit (single family residential units)
shall be allocated as follows:
17
$3,162.49 per multiple family residential unit ($4,817.93 per single family
residential unit) to the County to support park and recreational
improvements and facilities;
2. $99.95 per multiple family residential unit ($232.42 per single family
residential unit) to the County to support police facilities;
$307.46 per multiple family residential unit ($459.06 per single family
residential unit) to the County to support fire facilities;
4. $137.04 per multiple family residential unit ($200.98 per single family
residential unit) to the County to support solid waste facilities; and
5. $2,704.31 per multiple family residential unit ($4,280.82 per single family
residential unit) to the County to support road and traffic improvements.
The fair share contribution shall be waived for the affordable housing units. In lieu
of paying the fair share contribution, the applicant may contribute land and/or
construct improvements/facilities related to fire, police, and solid waste disposal
facilities within the region impacted by the proposed development, subject to the
review and recommendation of the Planning Director, upon consultation with the
appropriate agencies and approval of the County Council. With respect to the fair
share contribution for parks and recreation, that contribution for all residential units
will be satisfied when Applicant completes and offers for dedication all of the land
facilities for the active use park described in Condition "U" above. The fair share
contribution for roads will be satisfied upon completion of the Mid -bevel Road
(Road "2"), Road "3", Road "5" and Road "4".
QQ. Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for
imposition of exactions or the assessment of impact fees, conditions included herein
18
shall be credited towards the requirements of the Unified Impact Fees Ordinance.
RR Comply with all other applicable County, State and Federal laws, rules, regulations
and requirements.
SS. An annual progress report shall be submitted to the Planning Director prior to the
anniversary date of the approval of this Project District Ordinance. The report shall
include, but not be limited to, the status of the development and the extent to which
the conditions of approval are being satisfied. This condition shall remain in effect
until all of the conditions of approval have been satisfied and the Director
acknowledges that further reports are not required.
TT. An initial extension of time for the performance of conditions within the ordinance,
except for the six-year time limit in Condition X.10, may be granted by the
Planning Director upon the following circumstances.
I The non-performance is the result of conditions that could not have been
foreseen or are beyond the control of the applicant, successors or assigns,
and that are not the result of their fault or negligence.
2. Granting of the time extension would not be contrary to the General Plan or
Zoning Code.
3. Granting of the time extension would not be contrary to the original reasons
for the granting of the Project District.
4. The time extension granted shall be for a period not to exceed the period
originally granted for performance (i.e., a condition to be performed within
one year may be extended for up to one additional year).
W
5. If the applicant should require an additional extension of time the Planning
Department shall submit the applicant's request to the County Council for
appropriate action.
Should any of the conditions not be met or substantially complied with in a timely
fashion, the Planning Director may initiate rezoning of the subject area to its
original or more appropriate designation.
LTU. The Planning Director may permit an extension of the six-year time limit to
complete Road "4" in Condition X.10, provided that the requirements of
Condition "TT" are met, and, in addition, the new deadline for the completion of
Road "4" is not more than two (2) years after the completion of any building,
including single-family residential buildings, other than the University building or
the DOE building.
SECTION 3. In the event that any portion of this ordinance is declared invalid, such
invalidity shall not affect the other parts of this ordinance.
SECTION 4. This ordinance shall take effect upon its approval.
Hilo , Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
June 5, 2006
June 21, 2006
July 7, 2006
July 17, 2006
REFERENM Cantu: U :9 5
20
14 -- A -SOA
OPEN 7 A -5e � � -�`�
a•u
a PEN(0)TO A-5' S
W PROD CT DISTRICT PO \ c
4.661 ACRES \— —
S / A-50Da I
9,071.21 N ! A•508
23,751.69 W A3a ,,� A•1q/
A -So A•SOt
"AKAHIPUU'•'.-""•
OPEN 10,434.23 W _
"AKAHIPUU" - `
aS�a'�aa 4=¢ ; a
r ��C'"-)�F yyYYjjI! �qI 1 .F :,`:!, l 1
--. �TS9154i'3d1."li-1
4!0'4�ri'4 F ... .xn... A,
OPENual":T !'4 rpt k!Wfi! °+ ' r. Fhc".:ii wra'�.�%� A-Ift
A -5a
A•59
A•So
I1 wiwr'TI
Ivisil
®��
3, I 1� _ D v M BBDO _ _ 9900 13]00 18
AMENDMENT TO THE ZONING CODE
AMENDING SECTION 25-8-3 (NORTH KONA ZONE MAP)
ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE
1983 (2005 EDITION), BY CHANGING THE DISTRICT CLASSIFICATION
FROM AGRICULTURAL (A -3a) AND OPEN (0)
TO PROJECT DISTRICT (PD)
AT KAU, NORTH KONA, HAWAII
PREPARED BY: PLANNING DEPARTMENT
COUNTY OF HAWAII
5:001
A.,
Date: Nm n*er 30, 2005
(HILUHILU DEVELOPMENT, LLC -1166)
Milan
0 0.5 1 2 3
ROADWAY ALIGNMENTS - CONCEPTUAL
Date: January 11, 2006
EXHIBIT "B" lrnwn,w vcvcw mo.,, 1
OFFICE OF THE COUNTY CLERK
County of Hawaii
Hilo, Hawaii
Introduced By:
Stacy K. Higa
Date Introduced:
June 5, 2006
First Reading:
June 21, 2006
Published:
June 30, 2006
REMARKS:
June 5, 2006 -Drafts 1,2,& 3 postponed
to June 21, 2006 Council Meeting
Second Reading: Juiy
7, 2006
To Mayor:
July
11,
2006
Returned:
July
17,
2006
Effective:
July
17,
2006
Published:
July
21,
2006 _
REMARKS:
rn,fr qt
��?^R ,ItL
AYE
LVOTE
NOBg EX
Arakaki
Arakaki
X
Higa
X
Hoffmann
Hoffmann
X
X
Holschuh
X
Isbell
Ikeda
X
X
Isbell
X
Safarik
Jacobson
X
Pilago
X
Safarik
X
8
1 0 0
rn,fr qt
1 DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as
indicated above.
APPROVED AS TO
1=71AND LEGALITY:
COUNCIL CHAIRMAN
D P CORPORATION (O SEL 114 e
COUNTY OF HAWAII
COUNTY CLERK
Date
JUL 14 7106
229 (Draft 9)
Bill No.:
C-687.95/PC-73
pprove rsapprovedthis j? day Reference:
Ord No.: 06 i05
VY
WI 20—
T OF HAWAI `1
ROLL CALL VOTE
AYESNOES ABS EX
Arakaki
X
Higa
X
Hoffmann
X
Holschuh
X
Ikeda
X
Isbell
X
Jacobson
X
Pilago
X
Safarik
X
6 2 1 0
1 DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as
indicated above.
APPROVED AS TO
1=71AND LEGALITY:
COUNCIL CHAIRMAN
D P CORPORATION (O SEL 114 e
COUNTY OF HAWAII
COUNTY CLERK
Date
JUL 14 7106
229 (Draft 9)
Bill No.:
C-687.95/PC-73
pprove rsapprovedthis j? day Reference:
Ord No.: 06 i05
VY
WI 20—
T OF HAWAI `1
�f;sf
DEPARTMENT OF PUBLIC WORKS
COUNTY OF HAWAII A`5,07E? a+ c f ? ; rc
HILO, HAWAII
DATE: June 19, 2009
Memorandum
TO: B.J. Leithead-Todd, Acting Deputy Planning Director
Planning Department
FROM: Galen M.:Kuba, Division Chief'
&Zngineering Division
SUBJECT: Amendment to Change of Zone Ordinance No. 06-105 (REZ 05-010)
Applicant: Palamanui Global Holdings LLC
Location:' Kau, N. Kona, HI
TMK: 3/ 7-2-005:001
We reviewed the subject application and our comments are as follows:
ROADWAYS
We defer to the Planning Department the applicants responsibility to construct
the required street infrastructure according to the Kona Community Development
Plan (KCDP).
2. We should not allow phased development with no guarantee that required future
infrastructure is technically feasible and environmentally cleared for construction.
Prior to subdivision approval for any phase of the subject development, all
required Countydedicable right-of-ways should be secured and graded to their
full build -out width, exclusive of cut and: fill slopes. In addition, those County
dedicable roads that are dead -ended for future connections (roads 3B and 5)
should have preliminary engineering for technical feasibility and be
environmentally cleared for construction, a minimum of 500 feet from the subject
property boundary into the adjacent property.
3. Condition V2 (X2) should include the condition to grade the entire right of way
and add, "unless a roundabout is provided, meeting with the approval of the
DPW.'.
4. We do not concur with the amendment to V5 (X5) that delays the developer's
obligation to construct Road 5 indefinitely and includes no surety. At minimum,
the obligation to complete Road 5 should be included with new condition V9
Planning Dept.. SCANNED
Exhibit 0
s
Memo to PD- Amend. Ord. 06-105 (REZ 05-010)
June 19, 2009
Page 2 of 2
which sets a schedule for construction of Road 1C. Neither do we concur with the
classification of Road 5 as a "minor street". Please see KCDP figure 4-2a which
classifies this road as a "minor collector." We concur with the KCDP.
classification.
5. We question the applicant's amendment in.Condition V8 (X8) to omit the
condition to construct the intersection of the main project road with the Queen
Kaahumanu Highway.
6. Replacement of Condition X9 with new condition V9 deletes the requirement to
bond the improvements for Roads 3 and 5 to assure construction within a
specified period of time. However, the applicant replaces that condition with new
conditions V9 and V10, and obligates construction of Roads 1 B, 3A and 3B with
the timing for Road 4, or concomitant with adjacent development,_ without the
requirement for bonding. See comment 5 above for our discussion on this
change for Road 5. At minimum, the obligation to complete Road 5 should be
included with new condition V9 which sets a schedule for construction of Road
1C.
7. Inclusion of the qualifier "collector" in the applicant's new proposed Condition
V10 (b) may be unclear.
8. The applicants proposed Condition V11 and the corresponding deletion in
proposed Condition RR (TT) allows delay of construction of Road 4 indefinitely.
The applicant should be required to submit justification for the bond amount of
$10M in Condition V11.
9. We find no requirement to dedicate Roads 1,213, 4, or 5.(1A, 1 B, 1 C, 2, 3A, 36, 4
or 5) in this ordinance. We assume this is an oversight that should be corrected.
In addition, Condition NN (PP) should add the words "and dedication" after
"completion" in the second paragraph.
TRAFFIC
Unless superseded by prescriptive KCDP concurrency requirements, the applicant
should be required to submit an.updated.Traffic Impact Analysis Report (TIAR)
prepared by a licensediprofessional traffic engineer, and provide all improvements in
compliance with the Hawaii County Code Section 25-2-46 - concurrency requirements,
for any phase of development.
Should there be any questions concerning this matter, please feel free to contact Kiran
Emler of our Kona Engineering Division office at 327-3530.
KE
copy: ENG-HILO
PLNG-HILO/KONA
Hawaii County is an Equal Opportunity Provider and Employer
DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWA141'-?`-
345 KEKDANAO`A STREET, SUITE 20 • HILO, HAWAII 96720 r'
TELEPHONE (808) 961-8050 • FAX(808)961-8657 h Fs
June 9, 2009
tO
Zal
TO: Ms. BJ Leithead Todd, Planning Director
Planning Department
FROM: Milton D. Pavao, Manager
SUBJECT: AMENDMENT TO CHANGE OF ZONE ORDINANCE NO. 06-105 (REZ 05-010)
APPLICANT — PALAMANUI GLOBAL HOLDINGS LLC
TAX MAP KEY 7-2-005:PORTION 001
We have reviewed the subject application and have the following comments and conditions.
Water will only be available subject to the applicant complying with the requirements of the Water Agreement.
The Department requests that the applicant submit a water system master plan for review to ensure the current
proposed water system has adequate capacity within each of the service zones. Any changes in land use and
demand may require changes in the proposed water system design including, but not limited to, the storage and
line sizes.
Should there be any questions, please contact Mr. Ryan Quitoriano of our Water Resources and Planning Branch
at 961-8070, extension 256.
RQ:dfg
copy — Palamanui Global Holdings LLC
yours,
Pavao, P.E.
@ SC� N
Planning Dept.
J
ExhibitifN�
... Water 4ivtcg6 procyrem...
The Department of Water Supply is an Equal Opportunity provider and employer. To file a complaint of discrimination, write: USDA. Director. Office of Civil
William Kenoi
Mayor
LonoA.Tyson
reclor
i).e iFtt F fait :_r r
Ivan M. Torigoe
Devon, Director
wtiltnt II 'Ahtfuai'l
DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Street • Hilo, Hawaii 96720
(808) 961-8083 - Fax (808) 961-8086
httpJ/co.hawaii.hi.us/directory/dir envmn¢ htm
MEMORANDUM c,
Date : /"l"(f .17. YDa/
To . BJ LEITHEAD TODD, Planning Director
From: LONO A. TYSON, Director
Subject: Change of Zone Application (REZ 09-000094)
Request: Project District to MCX-20
Amendment to Change of Zone Ordinance No. 06-105 (REZ 05-010)
Applicant: Palamanui Global Holdings LLCD
TMK: 7-2-5:portion 1
We have reviewed the subject application and offer the following recommendations:
DEPARTMENT COMMENTS: 10 (r gh� t3Eqjc�w
WASTEWATER COMMENTS:
( ) No comments
( ) Require connection of existing and/or proposed structures to the public sewer in accordance with Section 21-5
of the Hawaii County Code.
( ) Require Council Resolution to approve sewer extension in accordance with Section 21-26.1 of the Hawaii
County Code. Complete D.E.M. Sewer Extension Application.
( ) Require extension of the sewer system to service the proposed subdivision in accordance with Section 23-85
of the Hawaii County Code.
(Other: pK, r1- iJ W -7�
SOLID WASTE COMMENTS:
f%c')
No comments
Commercial operations, State and Federal agencies, religious entities and non-profit
organizations may not use transfer stations for disposal.
Aggregates and any other construction/demolition waste should be responsibly reused to
its fullest extent.
Ample and equal room should be provided for rubbish and recycling.
Green waste may be transported to the green waste sites located at the Kailua and Hilo transfer stations, or
other suitable diversion programs.
Construction and demolition waste is prohibited at all County Transfer Stations.
Submit Solid Waste Management Plan in accordance with attached guidelines.
Existing Solid Waste Management Plan is to be followed. Provide update to the department on current status.
Other:
cc: SWD> WWD Exhibit
County of Hawaii is an Equal Opportunity Provider and Employer.
moi` 1,
Iwt322.0
WdhnIbfPKenoi' --
M6yor
May 20, 2009
MEMORANDUM
Qcoatttp of =off
OFFICE OF HOUSING AND
COMMUNITY DEVELOPMENT
50 Wailuku Drive • Hilo, Hawaii 96720-2484
Vfrr (808) 961-8379 • FAX (808) 961-8685
TO: BJ Leithead Todd
Planning Department
FROM: P he epJ. Arnett
1 Housing Administrator
SUBJECT: Change of Zone Application (REZ 09-000094)
Request: Project District to MCX-20
Amendment to Change of Zone Ordinance No. 06-105
Applicant: Palamanui Global Holdings LLC
Tax Map: (3)7-2-005:portion 001
Pursuant to Hawaii County Code, Chapter 11, Housing, are
applicable to the request.
Thank you for the opportunity to comment.
G:\PLANNING\1781pasr.doc
Stephen J. Arnett
Housing Administrator
I SCANNE 9
Planning Dept.qa
Exhibit
EQUAL HOUSING OPPORTUN ITY
"HAWAI'I COUNTY IS AN EQUAL OPPORTUNITY
PROVIDER ANn FMPI nVFP"
LpVUA LNGLE
/i!] JUly ` i iii 1z:
Ism' -
u, m STATE OF HAWAII
DEPARTMENT OF LAND AND NATURAL RESOURCES
STATE HISTORIC PRESERVATION DIVISION
601 KAMOKILA BOULEVARD, ROOM 555
May 27, 2009 KAPOLEI, HAWAII 96707
Bobby Jean Leithead-Todd, Planning Director
County of Hawaii Planning Department
101 Pauahi Street, Suite 3
Hilo, Hawaii 96720-4224
Dear Ms. Leithead-Todd:
WUM N THIELEN
CHAIRPERSON
BOARD OF LANO ANO NATURAL RESOURCES
COMMISSION ON WATER RESOURCE MANAGEMENT
RUSSELLY TSU.0
HRST DEPUTY
KEN C. KAWAHARA
NUNTY DIRECTOR. WATER
AQUATIC REI.N.3
MAN
BOATO O OCEAN,£CREATION
RUREAUOFCONVEYA Fl
COMMISSIONON WATER RESOOR[E MANAGEMETIT
CONEERYATION AND COASTAL LWOS
CONSEF.FETN ANO REEOURCEE ENFORCEMENT
ENDMEERMG
FORESTRY AND FFUTLIFE
msroem PREssavanoN
RAH OLAWEISLANDRESERVECOMMISSION
STATEFARRS
LOG NO: 2009.1498
DOC NO: 0905TD19
Archaeology
SUBJECT: Chapter 6E-42 Historic Preservation Review —
Change of Zone Application (REZ 09-000094) & Amendment to Change of Zone
Ordinance No. 06-105 (REZ 05-10)
Kau Ahupua'a, North Kona District, Island of Hawai i
TMK: (3) 7-2-05: 01
Thank you for the opportunity to comment on the subject request for zoning ordinance changes, which
was received in our office May 1, 2009. The requested changes apply to certain conditions that were
attached to Ordinance 06-105 regarding commercial uses, roads, and the public park.
Our office has previously reviewed and approved an inventory survey, a data recovery plan and an
interim preservation plan for this development; and mitigation field work has been completed (Log No
2006.1582, Doc No. 0605JT14; Log No. 2008.0041, Doc No. 0802TS22). We have also reviewed a long-
term preservation plan and are currently awaiting revisions (Log No. 2008.3195, Doc No. 0807TD31).
We have also reviewed and commented on the revised preliminary subdivision plat map for the project
area (Log No. 2008.4575, Doc No. 0810TD20).
We believe that no historic properties will be affected by the proposed changes and amendments, with
the following conditions, which were also recommended in our subdivision review:
I. All permanent site preserves are depicted on final subdivision plats and tax maps of development
areas and on construction grading plans;
2. Interim preservation buffers are demarcated with construction fencing for sites within or near
construction areas;
3. The revised long-term preservation plan is submitted for review and approved, and long-term
preservation measures are implemented for all sites during build -out or prior to sale;
4. The report on data recovery is submitted for review and approval in a timely manner.
Please contact Theresa Donham at (808) 987-5001 if you have any questions or concerns regarding this
letter.
Aloha,
Nancy McMahon, Deputy SHPO/State Archaeologist
And Historic Preservation Manager �,������
State Historic Preservation Division Planning Dept.
Exhibit_ JUN 01 200fl
x®53304
LINDA LINGLE
GOVERNOR OF HAWAII
STATE OF HAWAII
DEPARTMENT OF LAND AND NATURAL RESOURCES
LAND DIVISION
County of Hawaii
Planning Department
101 Pauahi Street Suite 3
Hilo, Hawaii 96720
Attention: Mr. Norman Hayashi
Ladies and Gentlemen:
POST OFFICE BOX 621
HONOLULU, HAWAII 96809
May 20, 2009
Subject: Change of Zone Application (REZ 09-000094)
LAURA H. THIELEN
CHAIRPERSON
BOARD OF LANG AIJp NANRAL RESOURCES
Thank you for the opportunity to review and comment on the subject matter. The
Department of Land and Natural Resources' (DLNR), Land Division distributed or made
available a copy of your report pertaining to the subject matter to DLNR Divisions for their
review and comment.
Other than the comments from Division of Aquatic Resources, Engineering Division,
Land Division -Hawaii District, the Department of Land and Natural Resources has no other
comments to offer on the subject matter. Should you have any questions, please feel free to call
our office at 587-0433. Thank you.
Sincerely,
Morris M. Atta
Administrator
MAY 2.
053042
Planning Dept.
Exhibit 8'
LWDA LINGLE
OOOERNOR OF HAWAII
MEMORANDUM
STATE OF HAWAII
DEPARTMENT OF LAND AND NATURAL RESOURCES
LAND DIVISION
POST OFFICE BOX 621
HONOLULU, HAWAII 96809
May 1, 2009
LAURA H. THIELEN
CHAIM RSON
BOAR OF LANA An NATURAL RFSOIN u
COMA JON ON WATER RESONRCE MANAGEMENT
TO: DLNR Agencies:
_Div. of Aquatic Resources
hofB tlao ng! -&-Ocean Recreation
Engineering Division .
res ry c Wildlife
_Div. of State Parks
_Commission on Water Resource Management
_Office of Conservation & Coastal Lands
x Land Division -Hawaii District/Gary Martin
N
FROM:orris M. Attahc�-
m
SUBJECT: hange of Zone Application
LOCATION: North Kona, Hawaii ;y C=)
APPLICANT: Palamanui Global Holdings LLC`
�.=c D
in{"
;
Transmitted for your review and comment on the above referenceMocum jt.
We would
appreciate your comments on this document. Please submit any comments by May 22, 2009.
If no response is received by this date, we will assume your agency has no comments. If
you have any questions about this request, please contact my office at 587-0433. Thank you.
Attachments
( ) We have no objections.
( ) We have no comments.
(�() Comments are attached.
Signed:
Date: $ Lo
DEPARTMENT OF LAND AND NATURAL RESOURCES
ENGINEERING DIVISION
LD/MorrisAtta
Ref.: AmendConditionsRezoningPalamanui
Hawaii.434
COMMENTS
O We confirm that the project site, according to the Flood Insurance Rate Map (FIRM), is located in
Flood Zone _
(X) Please take note that the project site, according to the Flood Insurance Rate Map (FIRM), is
located in Flood Zone X. The Flood Insurance Program does not have any regulations for
development within Flood Zone X.
() Please note that the correct Flood Zone Designation for the project site according to the Flood
Insurance Rate Map (FIRM) is _
O Please note that the project must comply with the rules and regulations of the National Flood
Insurance Program (NFIP) presented in Title 44 of the Code of Federal Regulations (44CFR),
whenever development within a Special Flood Hazard Area is undertaken. If there are any
questions, please contact the State NFIP Coordinator, Ms. Carol Tyau-Beam, of the Department of
Land and Natural Resources, Engineering Division at (808) 587-0267.
Please be advised that 44CFR indicates the minimum standards set forth by the NFIP. Your
Community's local flood ordinance may prove to be more restrictive and thus take precedence
over the minimum NFIP standards. If there are questions regarding the local flood ordinances,
please contact the applicable County NFIP Coordinators below:
() Mr. Robert Sumimoto at (808) 768-8327 or Mr. Mario Sin Li at (808) 768-8098 of the
City and County of Honolulu, Department of Planning and Permitting.
O Mr. Kelly Gomes at (808) 961-8327 (Hilo) or Mr. Kiran Emler at (808) 327-3530 (Kona)
of the County of Hawaii, Department of Public Works.
() Mr. Francis Cerizo at (808) 270-7771 of the County of Maui, Department of Planning.
() Mr. Mario Antonio at (808) 241-6620 of the County of Kauai, Department of Public
Works.
The applicant should include project water demands and infrastructure required to meet water
demands. Please note that the implementation of any State-sponsored projects requiring water
service from the Honolulu Board of Water Supply system must first obtain water allocation credits
from the Engineering Division before it can receive a building permit and/or water meter.
The applicant should provide the water demands and calculations to the Engineering Division so it
can be included in the State Water Projects Plan Update.
( X) Additional Comments: We do not have any objections to amend certain conditions to
Ordinance 06-105 and to apply for rezoning for portion of TMK (3) 7-2-005:001
(29.92 acres) from PD to MCX.
O Other:
Should you have any questions, please call Suzie S. Agraan of the Planning Branch at 587-0258.
Signed:
ERI HIRBd I , CHIEF ENGINEER
Date: / O /
LINDA LINGLE
GOVERNOR
THEODORE E. LIU
DIRECTOR
MARK K. ANDERSON
DEPARTMENT OF BUSINESS, RA DEIr�i.- rA, GEPGrrD R
ABBEY SETH MAPEAVER
ECONOMIC DEVELOPMENT & Tf3l'1`F lSli ALA ";I° DIRECTOR
OFFICE OF PLANNING
OFFICE OF PLANNING -I' JI t•;Aj 28 AN 8:(;4 Telephone: (808) 587-28: 18081 587-2822 4
4
235 South Barataria Street, 6th Floor, Honolulu, Hawaii 96813
Mailing Address: P.O. Box 2359, Honolulu, Hawaii 96804
Ref. No. P-12581
May 26, 2009
Ms. Bobby -Jean Leithead Todd, Planning Director
Planning Department, County of Hawaii
Aupuni Center
101 Pauahi Street, Suite 3
Hilo, Hawaii 96720
Attn: Norman Hayashi
Dear Ms. Leithead Todd:
Subject: Change of Zone Application (REZ 09-000094)
Request: Project District to MCX-20
Amendment to Change of Zone Ordinance No. 06-105 (REZ05-010)
Application: Palamanui Global Holdings LLC
TMK: (3) 7-2-005:001 portion
Kailua Kona, Hawaii
Thank you for the opportunity to review and comment upon the change of zone
application for Palamanui Global Holdings, LLC. The subject property (LUC Docket No.
A03-744) consisting of approximately 725.2 acres was reclassified from the Conservation and
Agricultural District to the Urban District by a State Land Use Commission Decision and Order
dated June 13, 2005, subject to twenty-nine conditions.
The Office of Planning has no comments at this time. in so stating, the Office offers no
judgment of either the adequacy of the application itself or the merits of the proposed project.
If you have any questions, please contact the Land Use Division at 587-2842.
Sip erely
Abbey Seth Mayer
Director
Planning Dept.
Exhibit q
,,A NE -
0`5 3'21111
LINDA LINGLE o :�
Sf 1,� 8 Y ei kt'3
GOVERNOR
r8, 3
STATE OF HAWAII
DEPARTMENT OF HEALTH
P.O. BOX 916
HILO, HAWAII 96721-0916
MEMORANDUM
DATE: May 21, 2009
TO: BJ Leithead Todd
Planning Director, County of Hawaii
FROM: Newton Inouye r%�-
Acting District Environmental Health Program Chief
SUBJECT: Change of Zone Application (REZ 09-000094)
Request: Project District to MCX-20
CHIYOME L. FUKINO, M.D.
Director of Health
Amendment to Change of Zone Ordinance No. 06-105 (REZ 05-010)
Applicant: Palamanui Global Holdings LLC
Tax Map Key: 7-2-5:portion 1
The Department of Health does not have any objections to the proposed change in land uses.
However, existing or planned land use activities adjacent to the proposed residential area should
be compatible with a residential neighborhood.
We recommend that you review all of the Standard Comments on our website:
http://hawaii.gov/health/environmental/env-planninWIanduse/landuse.html. Any comments
specifically applicable to this project should be adhered to.
The Wastewater Branch granted the Palamanui Wastewater Treatment Plant an approval to
construct on July 23, 2007. If it is determined that the plans needs to be revised based on the
zoning change, a revised basis of design, engineering report and construction plans for the
facility will need to be submitted for our review and approval. Plans shall be prepared in
accordance with Hawaii Administrative Rules, Chapter 11-62, Wastewater System.
WORD. REZ 09-000094.at
Planning Dept.
Exhibit l0
A N N E D
'y'... 511® 9
LINDA LINGLE
GOVERNOR
e ya
STATE OF HAWAH
DEPARTMENT OF EDUCATION
P.O. BOX 2360
HONOLULU, HAWAII 96804
OFFICE OF THE SUPERINTENDENT
May 21, 2009
Ms. BJ Leithead Todd, Planning Director
County of Hawaii Planning Department
101 Pauahi Street, Suite 3
Hilo, Hawaii 96720
Dear Ms. Leithead:
Subject: Change of Zone Application, Palamanui, Kau
North Kona, Hawai i, TMK: 3-7-2-05:01, (REZ 09-000094)
PATRICIA HAMAMOTO
SUPERINTENDENT
The Department of Education (DOE) has no concern regarding Palamanui Global Holding
LLC's request for zoning ordinance changes. The requested changes appear to have no impact
on the agreed upon plan for the developers of Palamanui to provide the required infrastructure,
parking and building structure to the DOE for instructional and office space for West Hawaii
school complexes.
If you have any questions, please call Heidi Meeker of the Facilities Development Branch at
(808)377-8301.
Very truly yours, ,
Patricia Hamamoto
Superintendent
PH:jmb
Randolph Moore, Assistant Superintendent, OSFSS
Art Souza, CAS, Honokaa/Kealakehe/Kohala/Konawaena Complex Areas
Planning Dept.
Exhibit
AN AFFIGAAATI\/F Ar.TInNI Amn Fni w OPPr)PT1 IINIITV FPAPI OVFP
1f S- '.
�Ir�; .i�T �i s13°:.
y •,, '
3 < <. 00
,®5309
-_:.v: a_savc o...kawaonwww..uw.enB
In Reply Refer To:
2009 -TA -0260
I A fI Vii, N% iia-r
P-,`^� ; Mr} F
R v=.
United States Department of the In�eia4]y1 A3
FISH AND WILDLIFE SERVICE
Pacific Islands Fish and Wildlife Office TAKE Pette®
300 Ala Moana Boulevard, Room 3-122, Box 50088 INAMFIRICA
Honolulu, Hawaii 96850
B. J. Leithead Todd
Planning Director
County of Hawaii Planning Department
Aupuni Center
101 Aupuni Street, Suite 3
Hilo, Hawaii 96720
JUN 0 12009
Subject: Amendment of Certain Zoning Conditions to Ordinance 06-105 Application for
Rezoning for Portion of 29 acres (TMK [3] 7-2-005:001) in North Kona from PD
to MCX
Dear Ms. Leithead Todd:
Thank you for your April 27, 2009, letter requesting our comments on a change of zone
application for a 29 -acre (12 -hectare) parcel in North Kona from PD to MCX. Based on the
information you provided and pertinent information in our files, the following listed species have
been observed in the vicinity of the proposed project: (1) endangered Blackburn's sphinx moth
(Manduca blackburni); and (2) endangered Hawaiian hoary bat (Lasiurus cinereus semotus). In
addition, the proposed project is located in a dry area of West Hawaii where wildland fires
interdependent with the proposed project may affect listed upland species. As plans are
developed for this project, we recommend you assess the potential for these listed species to be
directly or indirectly impacted by your proposed activities. We recommend the following
measures be incorporated into the Change of Zone Ordinance to minimize potential impacts to
listed species These recommendations do not alleviate your responsibilities pursuant to the
Endangered Species Act of 1973, as amended, if a listed species may be affected by the proposed
action.
Blackburn's sphinx moth may occur in the project area. The adult moth feeds on nectar
from native plants including beach morning glory (Ipomoea pes-caprae), iliee (Plumbago
zeylanica), maiapilo (Capparis sandwichiana), and the larvae feed upon non-native tree
tobacco (Nicotiana glauca) and the native aiea (Nothocestrum brevis forum). All of these
species may occur on the project site. We recommend you survey the site for the
presence of Blackburn's sphinx moth host plants and if host plants are found, contact our
office for further assistance.
Planning Dept.
Exhibit /--?-
SCANNED
--?-
11 k d
.�E
t
Ms. Leithead Todd 2
To minimize impacts to the endangered Hawaiian hoary bat, woody plants greater than
4.6 -meters (15 -feet) tall will not be removed or trimmed during the bat birthing and pup
rearing season (May 15 through August 15).
• A number of recent human -caused wildland fires have escaped containment by the
available interagency initial attack fire suppression forces, resulting in significant impacts
to listed species and critical habitat in dry areas of Hawaii County. The proposed project
enables increased development, which may also result in an increased fire risk to listed
resources in West Hawaii. Measures to minimize fire risk to listed resources should be
incorporated into the project. The Service is partnering with the West Hawaii Wildlfire
Management Organization, the Division of Forestry and Wildlife, the Hawaii County Fire
Department, the National Park Service, the Federal Highway Administration, the USDA
Natural Resource Conservation Service, the U.S. Forest Service, and the Army to develop
fuelbreaks, water sources for firefighting, fire prevention projects, and an increased fire
suppression response to minimize the impact of human -caused wildfires to listed species
and critical habitat in West Hawaii. We recommend you coordinate with Hawaii County
Fire Department's wildland fire management specialists to ensure any wildland fire risk,
interdependent with the proposed development, is minimized.
If you have questions regarding this letter, please contact Dr. Jeff Zimpfer, Fish and Wildlife
Biologist at (808)792-9400.
Sincerely,
(� Patrick Sousa
1Da` Field Supervisor
V all 1 Ll%-1 V 113 - W Lyi'1 i,11J Attorneys at Law, A Law t.orporanon
M A R K V a n P E R N
I S [shervsv@hawaii.rr.coml - G A R Y W. V A N C I L
[vsv@hu?"ii.rr.c
R.
HERMANN HEIMGARTNER [hhvsv@hawaii.rr.coml
75.167F
Hualalai Road, Suite B, Kailua-Kona, Hawaii 96740-1714
Phone (808) 329-3551 Fax (808) 329-6185
June 10, 2009
s
Hawaii County Council
333 Kilauea Avenue
Hilo, Hawaii 96720
Hawaii County Leeward Planning Commission
75-5706 Kuakini Highway, Suite 109
Kailua-Kona, Hawaii 96740
Re: Draft 9 of Bill No. 234 aa�
Please accept the following as my written testimony concerning the proposed revisions of
Draft 9 of Bill No. 234 entitled AN ORDINANCE AMENDING SECTION 25-8-3 (NORTH
KONA ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI'I
COUNTY CODE 1983 (2005 EDITION), BY CHANGING THE DISTRICT
CLASSIFICATION FROM AGRICULTURAL (A -3a) AND OPEN TO PROJECT DISTRICT
(PD) AT KAU, NORTH KONA, HAWAII, COVERED BY TAX MAP KEY 7-2-5:1, in
opposition to portions of it.
1. I am an owner of Makalei Estates Lot 39, TMK(3)7-2-015:039, where I reside with
my family. I was not provided with any notice by the applicant of the proposed revisions of Draft
9. It has a direct effect on my property and its access, Makalei Drive. It is my understanding that
the'developer has not provided notice to all Makalei lot owners, although all are directly and
negatively affected by the proposed revisions. This may comply with technical requirements, but
fails to inform everyone directly affected, and thus the good faith of the developer must be
questioned.
2. This is an exceptional and massive proposed development that has been extensively
debated and negotiated by the developer, the County and the public over a long time. The resulting
agreement is a pact well known and relied upon by the public and nearby landowners. Now, the
developer wants to breach that pact by seeking substantial changes, for its financial benefit, with no
corresponding benefit for the public. Instead, public loss, as well as severe detriment to Makalei lot
owners, would result. The loss of the developer's credibility and the breach of trust by the County
would also result.
3. An election (new administration) and a change in the economy is not grounds for a
breach of trust, public loss and detriment. A change in the agreement for increased public benefit
would not be asked for or imposed upon the developer if its income increased due to a better
economy. It is the developer's predictions of economic benefits so blinding, like Oceanside 1250,
that the County will sacrifice itself and its citizens for the developer's benefit?
4. A road parcel appears to be deleted. What road is that? It is assumed that it is the
critical main connector road.
5. Draft 9's section X.[V.113 presents a very serious problem. This proposed revision
gives the developer the opportunity and incentive to avoid its obligation to construct the critical
connector road, the need for which its development generates. This would be a huge..tittan�ia
Planning Dept. i S ANNED 'I
I
Exhibit 43
Hawaii County Council
Hawaii County Leeward Planning Commission
June 10, 2009
Page Two
benefit for the developer, while providing nothing in exchange for the public. This deletion road
was critical for the acceptance of this massive project by the public and by the County. To void this
obligation is a capitulation to the developer, a breach of trust and a massive sacrifice of the
County's and tax
payers' purses.
The results of such capitulation, breach, and sacrifice is the making of Makalei Drive into a
defacto primary connector road, even though it is totally substandard. It would also: 1) violate the
agreement of the developer that Makalei would not be a connector road under any circumstances;
2) expose the County to liability to Makalei lot owners for defacto condemnation of their road, as
well as liability for the substandard condition of Makalei Drive as to public users; 3) make the
prohibition of construction vehicles on Makalei Drive unenforceable see section 8 below); and
4) Support Makalei lot owners claims against sellers and developers for misrepresentation as to
the future status of Makalei Drive. As confirmed by County Engineer Mr. Kubo's previous report
to you, Makalei Drive has excessive grades of 15 to 20%, only a 50 feet right of way, and many,
many individual lots taking direct access from it. In addition, the road is presently private and not
dedicated, and might be gated in the future because of problems currently being incurred by the
subdivision.
The proposed revisions would make Makalei Drive the permanent defacto connector road,
with all its liability issues, and Makalei subdivision destroyed, when the developer doesn't perform
a promise for one reason or another to build a connector road.
6. Section X.[V.]5. is also of great negative consequence. Allowing for the avoidance
of construction of the road infrastructure requirements is a serious breach of good faith. The
proposed language of this section allows the abandonment of a promise and casts doubt that this
infrastructure will ever be built. Without that road, there are no prospects for its much needed
connections and extensions. Without the developer building that road, there is a great likelihood
that it will never be built except at County/tax payer expense.
Where will the developer be if and when called upon to build the promised roads? What
assurance is there that the developer will exist or have preserved adequate funds for such future
obligations? The Oceanside 1250 promised road is precedent. Fifteen yours ago some
knowledgeable people suspected that the County had been gullible and misled, i.e. the promised
road would never be built by Oceanside 1250, and the bond just a device to later shift the burden to
the County. That suspicion now is fact. All the litigation masked the fact that Oceanside 1250 did
not intend to and never would construct the whole road.
7. Here, the developer wants to exchange real benefits and infrastructure for indefinite
promises it may never keen. The exchange is for a vague "bond or other security" that does not
provide for increased security as costs increase with time. And lengthy delay is likely to be
involved. Lengthy deferral, with the developer's assets and worth being dissipated, results, as with
Oceanside 1250, with no road and the bond inadequate for the County to do it.
8. Section [Z.]x. is so vague as to be worthless, and appears to be written with that
intent. It states "Construction vehicles shall not use Makalei Drive," with no definition of
"construction vehicles," and no statement of who is bound and for how long. Does this mean
heavy equipment only?; tractor -trailers?; trucks of any size?; construction workers vehicles?;
Hawaii County Council
Hawaii County Leeward Planning Commission
June 10, 2009
Page Three
construction vehicles of the developer only or its infrastructure contractors only?; construction
vehicles of those who purchase or lease the developer's lots? It is so vague as to be questionable
whether this provision has any enforceability at all, publicly or privately, which may be why it was
stated in that manner. So the developer is proposing to avoid its promise and obligation for a
connector road, and make private Makalei Drive a defacto connector road, used for construction
vehicles and greatly increased traffic, avoiding maintenance problems which will follow, with no
defined and enforceable protection of Makalei Drive.
9. Section [U]S. has the effect of allowing a delay of the park until after substantial
development. The effect is to allow massive commercial development and some residential
development, without the promised park, despite the need concurrent with such development. This
provision should be deleted.
10. Section [TT.]RR. This project is massive and of overwhelming significance
to the County and West Hawaii. It is far too important to, in the future, be modified and
postponed in the dark by a single person (the Planning Director in Hilo), who may be
subject to political pressure and subjective economic arguments, while being totally
outmanned and overwhelmed by the developer and its representatives. This massive and
exceptional project should not be treated like a minor development with this usual
provision. The provision should be eliminated in this exceptional case, and the Planning
Commission and/or the County Council designated as the authority for deciding
important delays and modifications. Anything less would be an abdication of
responsibility.
The overall impression of the proposed revisions are that they are intended to postpone and
provide opportunity for avoidance of the developer's infrastructure obligations for its massive
project, which itself generates the needs for the infrastructure, despite past negotiation and
agreement. Thus the public loss of infrastructure benefits and shifting to the County/tax payers of
the burden of that infrastructure is much more likely. Thus it appears that past agreements are
being abandoned, which serves the developers' interests at the expense of the public and the
County. Who is responsible for this shift for the benefit of the developer at the expense of the
public?
Feel free to contact me regarding the above.
Thank you for your consideration of this written testimony.
Please do the right thing now for all of those you represent.
Sincerely,
VAN PERNIS — VANCIL
By
MVP/sam M q VAN IJ RNIS
C. Palamanui LLC C
Makalei Association
Hawaii County Planning Dept.
i
MARK Van PERNIS [shervsv@hawaii.rr.com] - GARY W. V A N C I L (]vSvitawgt r"e;4l9i
n+rr;cgm]
R. HERMANN HEIMGARTNER [hhvsv@hawaii.rr.com]
75-167F Hualalai Road, Suite B, Kailua-Kona, Hawaii 96740-1714>ft =,? a fs'7
Phone (808) 329-3551 Fax (808) 329-6185
June 12, 2009
Hawaii County Council
333 Kilauea Avenue
Hilo, Hawaii 96720
Hawaii County Leeward Planning Commission
75-5706 Kuakini Highway, Suite 109
Kailua-Kona, Hawaii 96740
Re: Draft 9 of Bill No. 224
Please note the following correction to my letter/testimony dated June 10, 2009. All
references to Bill No. 234 should be to Bill No. 224.
MVP/sam
C. Palamanui LLC
Makalei Association
Hawaii County Planning Dept.
Sincerely,
VAN PERNIS — VANCIL
By
MARK VAN PERNIS
FSC�7ANNED
RPalammui0510.doc-6/23/09
COUNTY OF HAWAII PLANNING DEPARTMENT
RECOMMENDATION
PALAMANUI GLOBAL HOLDINGS LLC
CHANGE OF ZONE APPLICATION (REZ 05-10)
Upon careful review of the request, the Planning Director proposes that a favorable
recommendation for the request to amend various conditions in Ordinance No. 06 105 be
forwarded to the County Council. Since this recommendation is made without the benefit of
public testimony, the Director reserves the right to modify and/or alter this position based on
additional information presented at the public hearing. This favorable recommendation is based
on the following findings:
The applicant requests amendments to Conditions D, G, N, Q, S, X, EE, PP, TT
and UU of Ordinance No. 06 105.
Various conditions under Ordinance No. 06 105 required the applicant to assist the
University of Hawaii in establishing the West Hawaii Center on the adjacent parcel to the
south of the subject site. Improvements required under the conditions include the
construction of the first University building, roads, public water, electrical and waterline
improvements to support the University. The applicant states that current economic
conditions have stalled the planned financing for the initial phases of the project, as the
financing was dependent on a strong market for residential units. The lack of demand has
necessitated the applicant to move forward with the commercial and residential
component to generate the necessary cash flow for the initial financing of the project.
The applicant further states that "some of the conditions intended as security for
performance of conditions have impaired its ability to obtain financing." Amendments to
the requirements will allow the applicant to proceed with the project as well as to support
the university.
In summary, further referenced below, the applicant states/requests:
• Changes in acreages to reflect the 29.92 -acre portion of the property to be
ee
rezoned from Project District to the Industrial -Commercial Mixed district
• Construction of the initial road ("Road lA') will be completed prior to
issuance of a Certificate of Occupancy for any building within Palamanui
• Roads to be designated Roads IB, 1C, 3A and 5 will be completed as the
project develops
• Remove the restriction to connect Road IC to Makalei Drive until Road 4
is constructed
• Road 2 will be completed before occupancy of the first single-family
residential unit
• Road 4 - modify bonding requirement, add a provision to continue
preparatory work for Road 4, including acquisition of right-of-way and
procuring the centerline of Road 4. Construct Road 4 on the earlier of a) when
the County has the right-of-way for Road 4 and when the applicant receives
the 600a' single-family residential permit; or (b) when third party funding is
provided for at least 50% of the construction cost for the segment of Road 4
located on private property and after the applicant receives the 400"' single-
family residential building permit.
• Delete Condition W, as it unnecessary when the above changes are
approved
• The public park will be constructed prior to the issuance of a building
permit for the 101` single-family dwelling unit instead of occupancy of the first
residential unit
The applicant proposes the following amendments to Ordinance No. 06105:
(material to be deleted is bracketed/struck through, material to be added is
underscored)
a. Amend Condition D:
"The project shall consist of a maximum of [725.2] 695.282 acres for
single-family and multi -family residential, commercial uses, hotel, university
and public school facilities, dry forest preserve, archaeological and cave
M
preserve areas, active and passive parks, a trail system and supporting
infrastructure."
b. Amend Condition G:
"Commercial spaces for medical, office, retail, classrooms and health
related uses and hotel shall be limited to [4-02172.08 acres."
C. Delete Condition N in its entirety:
d. Delete Condition Q in its entirety: (Applicant requests deletion of this condition as
Condition No. 7 of Docket No. A03-744 and Condition V of Ordinance No. 06
105 requires an 800 -foot open space buffer from the Queen Ka`ahumanu
I
..
Queenfrom the Kaahummm -
e. Amend Condition S:
"The Applicant shall develop one 20 -acre park site prior to [eeetwmy-ef
t_. p fir -qt regidential upAt on the prepeA5�-] the issuance of the 101' building .
permit for a single-family residence within the Project The 20 -acre active
park site shall include two playing fields which may be one baseball field
and one soccer field or two baseball fields or two soccer fields, parking lot
and restrooms, with the specific requirements to be determined in
consultation with the Department of Parks and Recreation. The 20 -acre
active park shall be constructed to county-dedicable standards, and the
county shall accept dedication."
-3-
Amend Condition X1, X2, X3, X5, X7, X8; add new 9 and 13: (The current
language requires both offsite and onsite roads at Palamanui to be bonded and
constructed early in the project development. The applicant requests modifications
to the condition to allow installation of the roads as needed)
"The applicant shall construct the following roads to access other
properties and the regional road system:
Project access road from the Queen Ka`ahumanu Highway to the
eastern boundary of the project. (Road "IX 1B and 1C" on
attached map Exhibit `B"): Road "I A, 1B and 1C" shall intersect
with the Queen Ka`ahumanu Highway at a location approved by the
State Department of Transportation, and shall connect with
Makalei Drive at the eastern (mauka) end. The road shall be
constructed on an 88 -foot wide right-of-way, as a two-lane road, to
county-dedicable standards as a collector road, from the Queen
Ka`ahumanu Highway to the intersection with Road "3A". From
Road "3A" to the intersection with Makalei Drive, Road "IC" shall
be constructed to county-dedicable standards as a minor street,
except that design standards shall be varied to permit the
connection with Makalei Drive without encroaching into the
Lowland Dry Forest Preserve. The connection with Makalei Drive
shall be designed to not encroach into the Lowland Dry Forest
Preserve. The grade shall not exceed 10%, except near the
connection with Makalei Drive. At the Queen Ka`ahumanu
Highway, the intersection shall be improved in accordance with one
of the following two options:
(a) If a grade separated interchange is available to connect
Road "1A" to Queen Ka`ahumanu Highway when Applicant
is ready to construct Road "IN', Applicant will connect
Road "IA" to such interchange and in such case, Applicant
151
will contribute $1,500,000 to the Department of
Transportation.
(b) If a grade separated interchange is not available to connect
Road "IA" to Queen Ka`ahumanu Highway when Applicant
is ready to make the connection, Applicant shall improve the
intersection at its expense as required by the Department of
Transportation, but shall include, at a minimum, a
deceleration and an acceleration lane on Queen Ka`ahumanu
Highway, a left -turn lane on Queen Ka` ahumanu Highway,
and a dedicated right -turn and left -turn lane from Road
"IA" to Queen Ka`ahumanu Highway. If warranted, at the
requests of Department of Transportation, the applicant
shall install traffic signals and a second left -turn lane from
the main project access road to the Queen Ka`ahumanu
Highway.
2. "Mid -Level Road" from Road "1A" to Kaiminani Drive (Road "2"
on Exhibit `B"): The applicant shall construct the mauka half -
section of a 120 -foot wide right-of-way to county-dedicable
standards as a collector road. The applicant shall construct the
intersection at Kaiminani Drive meeting with the approval of the
Department of Public Works, but the intersection shall include a
left -turn lane on Kaiminani Drive.
3. A north -south collector road at approximately the 600 -foot
elevation (Road "3A" on Exhibit `B"): The north -south collector
road shall be designed to function as a portion of a collector road
(Road "4") connecting Highway 190 with Road "IA and 1B" and
the Queen Ka`ahumanu Highway. Road "3A and 313" shall be
constructed to county-dedicable standards as a 60 -foot wide
collector road with an 88 -foot wide right-of-way. The applicant
52
shall construct the intersection between Road "3A and 313" and
Road "113" meeting with the approval of the Department of Public
Works.
4. New Connector Road to Mamalahoa Highway Project (Road "4 on
attached Map Exhibit `B"). Applicant shall construct Road "4", at
its sole expense, as a two-lane 60 -foot wide county-dedicable
collector road, including shoulders and swales, within an 88 -foot
right-of-way. The final design and maximum grade of Road "4"
shall be determined by the Director of Public Works after
consultation with the Planning Director. Applicant shall not be
required to install streetlights, except at the intersection with
Highway 190, or utilities. If another private developer is required
to participate in building Road "4" as a condition of land use
approvals, Applicant's share shall be limited to the portion of Road
"4" on Applicant's property and on State land. The County shall
obtain the necessary right-of-way outside of Applicant's property.
5. A road to connect south to the future extension of Holoholo Street
- Nana Street (Road "5" on Exhibit `B"): [The applieant shall build
Read "52
fr�iner street, a it sMU interseet • h Read `I"] The Applicant
must reserve the right of way for Road "5" for future use as a
Court road The Applicant must construct the road to County
dedicable standards as a minor street at its sole expense and
dedicate it to the County of Hawaii when a connection at the
southerly boundaa of the Project is open
6. The Planning Director may require other local streets within the
project to provide local connections to the adjoining property to the
north and south as a condition of subdivision approval or plan
approval.
0
7. At the western (makai) end of Makalei Drive, the applicant shall
provide safety improvements necessary to make a safe transition to
Road "1C", which may include, but are not limited to, rumble strips
and establishing superelevation for the curve, as required by the
Department of Public Works
8. The following road improvements shall be completed before a
certificate of occupancy is issued for any portion of the subject
property, or completion of any single-family homes, whichever
comes first:
(a) Road "lA", at least from the Queen Ka`ahumanu Highway
to the intersection with the Mid -Level Road (Road "2");
and
[(b) the inter-see4ion of the main pr-ejec4 aeeess ead with thee
[e] (b) the Mid -Level Road (Road "2") from the main project
access road to Kaiminani Drive, and the Kaiminani Drive
intersection.
9. Road "1C" shall be constructed on the earlier of the following
events:
(a) whenever Road "4" is required to be built under other
conditions of this ordinance; and
(>� prior to the issuance of the 250"' residential building permit
within the Project.
[9-] 10. The following road improvements shall be secured by bond or
other surety meeting with the approval of the Planning Director to
guarantee that the improvements will be completed within two (2)
years after the issuance of a certificate of occupancy for any portion
of the subject property, or completion of any single-family homes,
whichever comes first:
e►e
(a) the remaining portion of Road "I", including any necessary
improvements to the lower portion of Makalei Drive;
(b) Road "3", and
(c) Road "5"
subdivision or -eating si4e Aff* residential lots shall net be
gmAed, unfil the neeessafy right of w f for- Read 'A" has bee
• •..
3B" shall be built on the earlier of the following events:
(a) whenever Road "4" is required to be built under other
conditions of this ordinance. and
(b) development of a portion of the Property that requires a
collector road that must be connected to Road "lA".
[44-]12. Makalei Drive is a "minor road" and will not be open to the public
until the collector Road 4 is open for public use.
13. Applicant shall continue reparatory work for design of Road "4"
including working with the County of Hawaii to secure the right of
way for Road "4" across State of Hawaii lands and providing
information necessary for the County of Hawaii to arrange the
right of wgy over privately owned lands As part of the preparatory
MI
work Applicant will after obtaining necessary approvals from the
affected landowner "pioneer the center -line" of Road "4" on the
ground no later than June 1 2011 Applicant shall complete Road
"4" by the later of the date that the County obtains the right of way
for Road "4" and the date that Applicant receives the 600`" building
permit for residences in the Project If third party funding for at
least 50% of the construction cost for the segment of Road "4" that
is not within the State of Hawaii land is then available. Applicant
will fund the remainder of the construction cost and complete Road
"4" before the building permit for the 401' residential unit in the
Proiect is issued The improvements for Road "4" shall be secured
by a $10,000,000 bond or other surety meeting with the approval of
the Planning Director to guarantee that the improvements will be
completed as required by this ordinance. The bond or other surety
shall be made prior to issuance of Final Subdivision Approval for
any subdivision in the Project containing a singgle family residential
lot.
g. Amend Condition EE, 1:
"Connectivity with the University of Hawaii 500 acre site:
applicant shall allow the University of Hawaii to connect with its
wastewater and water supply systems. Applicant shall also allow
the University of Hawaii to connect electrical and
telecommunication systems to facilities installed within the project.
These connectivity sites shall be to the University's satisfaction and
located along its northern boundary on Road "I A".
h. Amend Condition PP:
"The applicant shall make its fair share contribution to mitigate the
potential regional impacts of the property with respect to parks and
recreation, fire, police, solid waste disposal facilities and roads. The fair
0
share contribution shall become due and payable on the sale or lease of
residential units subject to such contribution. The fair share contribution
shall have a maximum combined value of $6,411.25 per multiple family
residential unit ($9,991.20 per single family residential unit). The total
amount shall be determined with the actual number of units according to
the calculation and payment provisions set forth in this condition. The fair
share contribution per multiple family residential unit (single family
residential units) shall be allocated as follows:
$3,162.49 per multiple family residential unit ($4,817.93 per single
family residential unit) to the County to support park and
recreational improvements and facilities;
2. $99.95 per multiple family residential unit ($232.42 per single
family residential unit) to the County to support police facilities;
3. $307.46 per multiple family residential unit ($459.06 per single
family residential unit) to the County to support fire facilities;
4. $137.04 per multiple family residential unit ($200.98 per single
family residential unit) to the County to support solid waste
facilities; and
5. $2,704.31 per multiple family residential unit ($4,280.82 per single
family residential unit) to the County to support road and traffic
improvements.
The fair share contribution shall be waived for the affordable housing units.
In lieu of paying the fair share contribution, the applicant may contribute
land and/or construct improvements/facilities related to fire, police, and
solid waste disposal facilities within the region impacted by the proposed
development, subject to the review and recommendation of the Planning
Director, upon consultation with the appropriate agencies and approval of
the County Council. With respect to the fair share contribution for parks
and recreation, that contribution for all residential units will be satisfied
-10-
when Applicant completes and offers for dedication all of the land facilities
for the active use park described in Condition "U" above. The fair share
contribution for roads will be satisfied upon completion of the Mid -Level
Road (Road "2"), Road "3A and 313' Road "5" and Road "4".
Amend Condition TT:
"An initial extension of time for the performance of conditions within the
ordinance [ maybe
granted by the Planning Director upon the following circumstances.
The non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant, successors
or assigns, and that are not the result of their fault or negligence.
2. Granting of the time extension would not be contrary to the
General Plan or Zoning Code.
3. Granting of the time extension would not be contrary to the original
reasons for the granting of the Project District.
4. The time extension granted shall be for a period not to exceed the
period originally granted for performance (i.e., a condition to be
performed within one year may be extended for up to one
additional year).
5. If the applicant should require an additional extension of time, the
Planning Department shall submit the applicant's request to the
County Council for appropriate action.
Should any of the conditions not be met or substantially complied with in a
timely fashion, the Planning Director may initiate rezoning of the subject
area to its original or more appropriate designation."
Delete Condition UU:
-11-
„
eofn letien of Read
is net more than two (2) years after4he-c�fi
of any building, ineluding single mily r-esi lential buildings, other than the
Univers ty building or the DOE )„
The non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant, successors or
assigns, and are not the result of their fault or negligence. Comprising
approximately 725.224 acres, the Palamanui Project area was reclassified from the
Agricultural (A -3a) and Open district to Project District under Ordinance No. 06
105. Various conditions under Ordinance No. 06 105 required the applicant to
assist the University of Hawaii in establishing the West Hawaii Center on the
adjacent parcel to the south of the subject site. Improvements required under the
conditions include the construction of the first University building, roads, public
water, electrical and waterline improvements to support the University. The
applicant states that financing for the project was dependent on a strong demand
for residential units; however, with changes in economic conditions, the financing
of the initial phases of the project became unavailable. In the absence of funds, the
applicant seeks to proceed with the commercial and residential component of the
project to generate the necessary cash flow to support the initial financing. The
applicant further states that "some of the conditions intended as security for
performance of conditions have impaired its ability to obtain financing.”
Amendments to the requirements will allow the applicant to proceed with the
project as well as to support the University.
The Planning Director supports the amendments requested by the
applicant, with the exception to proposed new Condition X13, for the request to
include the amount of $10,000,000 as a bonding requirement for Road "4". The
Director recommends that the existing wording be retained without the dollar
amount specified, due to the difficulty in forecasting an exact dollar amount to be
applied in the future. Due to the late receipt of comments from DPW, the
requested changes will be addressed at the hearing.
-12-
Based on the above findings, the proposed amendments to Ordinance No.
06 105 are not contrary to the original reasons for approval of the Change of
Zone. The Planning Director recommends that existing conditions in the ordinance
be revised to reflect the current standard language for conditions of approval and
recommends that a favorable recommendation be forwarded to the County Council
with the following changes (material to be deleted is bracketed and struck through;
material to be added is underscored):
A. The applicant, successors or assigns shall be responsible for complying with
all of the stated conditions of approval.
B. The applicant shall comply with all conditions of approval of the State
Land Use Commission's Decision and Order (Docket No. A03-744) dated
May 19, 2005.
C. The applicant shall comply with the conditions as set forth in the Water
Agreement between K -W Kau, LLC and the Water Commission of the
County of Hawaii dated June 15, 1999.
D. The project shall consist of a maximum of [72-54] 695.282 acres for single-
family and multi -family residential, commercial uses, hotel, university and
public school facilities, dry forest preserve, archaeological and cave
preserve areas, active and passive parks, a trail system and supporting
infrastructure.
E. The maximum number of residential units allowed shall be 1,116 units,
including the on-site affordable housing units.
F. The maximum number of hotel rooms shall be 120.
G. Commercial spaces for medical, office, retail, classrooms and health related
uses and hotel shall be limited to [4&2] 72_08 acres.
H. Active and passive parks (Open, Park and Preservation) shall be developed
on a minimum of 177.8 acres. A "Constraints Area" which includes the
approximately 55 -acre dry forest preserve, archaeological sites/cave and
park areas, shall be set aside in the project area.
IN
I. The uses allowed in the Project District shall be all permitted uses allowed
by right in the RS, RM, CN and CV zoned districts, and a golf course and
related facilities. Uses allowed by Use Permit in the CV district may be
allowed.
J. A detailed Master Plan of the Project District, which includes the location
and number of residential lots and units, hotel, commercial uses, parking,
golf course, open space and recreational areas and other related
improvements on the property, shall be submitted to the Planning Director
within two (2) years from the effective date of the Project District
Ordinance or prior to submission of plans for plan approval or subdivision
approval, whichever occurs first.
K. Substantial construction of the proposed development shall commence
within five (5) years from the effective date of the Project District
Ordinance. "Substantial construction" means the actual start of
construction of project infrastructure under a bona fide contract of not less
than ten million dollars ($10,000,000.00). Prior to construction, the
applicant, successors or assigns shall secure Final Plan Approval for the
proposed development from the Planning Director in accordance with
Section 25-2-70, Chapter 25 (Zoning Code), Hawaii County Code Plans
shall identify proposed structures, fire protection measures, paved accesses
and parking stall, and other improvements associated with the proposed
uses.
L. The following design standards shall apply:
Landscaping for the development shall comply with the Planning
Department's Rule No. 17, Landscaping Requirements.
Landscaping rules, such as the screening of single-family residential
from commercial areas, shall be applied according the actual uses.
2. The height limit for structures within the project area shall not
exceed the following:
-14-
a. Single-family residential development: 35 feet
b. Multiple -family residential and hotel developments: 45 feet
C. Office and retail commercial development: 45 feet.
The minimum off-street parking and loading space requirements of
Chapter 25, Hawaii County Code shall be complied with, including
compliance with the American Disabilities Act (ADA)
requirements.
M. The variances from Chapters 23 (Subdivision) and 25 (Zoning), Hawaii
County Code, as presented in Planning Department Exhibit 2 (Applicant's
November 21, 2005 letter with attached Tables pages 1 to 6 related to
Variance Requested from Sections in Subdivision and Zoning Codes, and
Applicant's Figure 2 - Conceptual Character of Town Center/Residential
Village Center, Figure 3a - Residential Village Center Alternative: 4,000
SF Lot, Figure 3b - Residential Village Center Alternatives: 6,000 SF Lot,
Figure 4a - Conceptual Plan: Roadway Concepts - Dedicable, Figure 4b -
Conceptual Plan: Roadway Concepts - Nondedicable, and Figure 5 -
Residential Village Center Alternatives: Zone Lot Line Concepts) shall be
allowed under the Project District. The applicant shall submit detailed
plans to the Planning Director showing street designs and cross-sections,
and adjacent building designs, with the Master Plan. The Planning Director
may require modifications to the street sections to provide sufficient on -
street parking where the plans do not provide adequate off-street parking
(such as the 4,000 -square foot lots with a one -car garage and insufficient
setbacks to allow parking in driveways), and may require further changes
necessary for public safety and convenience. All roads built with the
variances allowed under this condition will be non-dedicable. With regard
to the requested zero line building setbacks, the applicant shall conform to
the current Hawaii County Building Code requirements. As part of the
Master Plan, the applicant shall submit plans for pedestrian movement
15-
through the project district, which shall identify areas where sidewalks will
be included to permit safe pedestrian access to the Town Center and other
important points in the development.
s developed aeeer-difig to its stated goal e
[e] N. The permitted hotel, designated as the "University Inn and Conference
Center," shall function as a business hotel and in conjunction with
University operations. It shall not be operated under a time-share plan
or other arrangement that provides for shared ownership of individual
units on the basis of time intervals, or club membership allowing
periodic use.
[JO. Occupancy of the hotel shall not be granted until the construction of
the Queen Kaahumanu Highway, Phase lI widening improvements to
four lanes from Kealakehe Parkway to the Kona International Airport
at Keahole has been secured by the State entering into a construction
contract for the improvements, or until improvements construction has
commenced on the 20,000 square foot University building, or the
building's completion has been assured by bond or other security
acceptable to the Planning, Director, whichever comes first..
[� N retail eenffnereial 7. ,...,a ,.te «tl. SOO feet
]
[I7] P. To ensure that the commercial development corresponds with the
applicant's representations regarding neighborhood -scale commercial
development, no single retail establishment shall have more than 45,000
16-
square feet of developed area under roof.
[S-] Q. Total retail space (not including restaurants) shall not exceed 75,000
square feet under roof until the construction of the Queen Ka` ahumanu
Highway, Phase II widening improvements to four lanes from
Kealakehe Parkway to the Kona International Airport at Keahole has
been secured by the state entering into a construction contract for the
improvements. The square footage of improvements leased to the
University of Hawaii shall not count against this limit.
[-T-. ] R. The applicant shall set aside a "Constraints Area" including the
approximately 55 -acre dry forest preserve, archaeological sites/cave
and park areas on the project site.
[U] S. The Applicant shall develop one 20 -acre park site prior to [eeeupaney
o thP first fesidential • rdt on the .epeft,-] the issuance of the 101"
building permit for a sing -le -family residence within the Project. The
20 -acre active park site shall include two playing fields which may be
one baseball field and one soccer field or two baseball fields or two
soccer fields, parking lot and restrooms, with the specific requirements
to be determined in consultation with the Department of Parks and
Recreation. The 20 -acre active park shall be constructed to county-
dedicable standards, and the county shall accept dedication.
[V-] T. There shall be an 800 -foot setback from the Queen Kaahumanu
Highway. No structures, other than those allowed under Condition
No. 7 of the Land Use Commission's Decision and Order, shall be
allowed within the 800 -foot setback area. A copy of the metes and
bounds description for this open space area, and proposed covenant(s)
shall be submitted to the Planning Director for review and approval
prior to receipt of Final Plan Approval or land alteration activities,
whichever occurs first. The approved covenant(s) shall be recorded in
the Bureau of Conveyances prior to the issuance of Final Plan
-17-
Approval, or land alteration activities, whichever occurs first. A copy
of the recorded covenant(s) shall be provided to the Planning
Department.
[W-. ] U. All project utilities shall be underground.
[X-. ] V. The applicant shall construct the following roads to access other
properties and the regional road system:
1. Project access road from the Queen Kaahumanu Highway to the
eastern boundary of the project. (Road "IA. 1B and 1C" on
attached map Exhibit `B"): Road "IA. 1B and 1C" shall intersect
with the Queen Ka`ahumanu Highway at a location approved by the
State Department of Transportation, and shall connect with
Makalei Drive at the eastern (mauka) end. The road shall be
constructed on an 88 -foot wide right-of-way, as a two-lane road, to
county-dedicable standards as a collector road, from the Queen
Ka`ahumanu Highway to the intersection with Road "3A". From
Road "3 A" to the intersection with Makalei Drive, Road "IC" shall
be constructed to county-dedicable standards as a minor street,
except that design standards shall be varied to permit the
connection with Makalei Drive without encroaching into the
lowland Dry Forest Preserve. The connection with Makalei Drive
shall be designed to not encroach into the Lowland Dry Forest
Preserve. The grade shall not exceed 10%, except near the
connection with Makalei Drive. At the Queen Ka`ahumanu
Highway, the intersection shall be improved in accordance with one
of the following two options:
(a) If a grade separated interchange is available to connect
Road "1A" to Queen Ka`ahumanu Highway when Applicant
is ready to construct Road "I N', Applicant will connect
Road "IA" to such interchange and in such case, Applicant
9n
will contribute $1,500,000 to the Department of
Transportation.
(b) If a grade separated interchange is not available to connect
Road "IA" to Queen Ka`ahumanu Highway when Applicant
is ready to make the connection, Applicant shall improve the
intersection at its expense as required by the Department of
Transportation, but shall include, at a minimum, a
deceleration and an acceleration lane on Queen Ka`ahumanu
Highway, a left -turn lane on Queen Ka`ahumanu Highway,
a refuge lane for vehicles turning left into Queen
Ka`ahumanu Highway, and a dedicated right -turn and left -
turn lane from Road "lA" to Queen Ka`ahumanu Highway.
If warranted, at the request of Department of
Transportation, the applicant shall install traffic signals and
a second left -turn lane from the main project access road to
the Queen Ka`ahumanu Highway.
2. "Mid -Level Road" from Road "IA" to Kaiminani Drive (Road "2"
on Exhibit `B"): The applicant shall construct the mauka half -
section of a 120 -foot wide right-of-way to county-dedicable
standards as a collector road. The applicant shall construct the
intersection at Kaiminani Drive meeting with the approval of the
Department of Public Works, but the intersection shall include a
left -tum lane on Kaiminani Drive.
3. A north -south collector road at approximately the 600 -foot
elevation (Road "3A" on Exhibit `B"): The north -south collector
road shall be designed to function as a portion of a future collector
road (Road "4") connecting Highway 190 with Road "lA and 1B"
and the Queen Ka`ahumanu Highway. Road "3A and 313" shall be
constructed to county-dedicable standards as a collector road with
SO
an 88 -foot wide right-of-way. The applicant shall construct the
intersection between Road "3A and 3B" and Road "113" meeting
with the approval of the Department of Public Works.
4. New Connector Road to Mamalahoa Highway Project (Road "4"
on Exhibit `B"). Applicant shall construct Road "4", at its sole
expense, as a two-lane 60 -foot wide county-dedicable collector
road, including shoulders and swales, within an 88 -foot right-of-
way. The final design and maximum grade of Road "4" shall be
determined by the Director of Public Works after consultation with
the Planning Director. Applicant shall be not required to install
streetlights, except at the intersection with Highway 190, or
utilities. If another private developer is required to participate in
building Road "4", as a condition of land use approvals, Applicant's
share shall be limited to the portion of Road "4" on Applicant's
property and on State land. The County shall obtain the necessary
right-of-way outside of Applicant's property.
5. A road to connect south to the future extension of Holoholo Street
- Nana Street (Road"5" on Exhibit `B"): [
«„
fniner street, a it shah interseet with Dead «,,, ] The Applicant
must reserve the right of way for Road "5" for future use as a
CounU road The Applicant must construct the road to County
dedicable standards as a minor street at its sole expense and
dedicate it to the County of Hawaii when a connection at the
southerly boundary of the Project is open.
6. The Planning Director may require other local streets within the
project to provide local connections to the adjoining property to the
north and south as a condition of subdivision approval or plan
approval.
bd1II
At the western (makai) end of Makalei Drive, the applicant shall
provide safety improvements necessary to make a safe transition to
Road "1C", which may include, but are not limited to, rumble strips
and establishing superelevation for the curve, as required by the
Department of Public Works.
8. The following road improvements shall be completed before a
certificate of occupancy is issued for any portion of the subject
property, or completion of any single-family homes, whichever
comes first:
(a) Road "IN', at least from the Queen Ka`ahumanu Highway
to the intersection with the Mid -Level Road (Road "2");
and
[(0] b) the Mid -Level Road (Road "2") from the main project
access road to Kaiminani Drive, and the Kaiminani Drive
intersection.
9. Road "1C" shall be constructed on the earlier of the following
events:
(�a whenever Road 'A" is required to be built under other
conditions of this ordinance: and
(b) prior to the issuance of the 25& residential building permit
within the Project.
[9-] 10. The following road improvements shall be secured by bond or other
surety meeting with the approval of the Planning Director to
guarantee that the improvements will be completed within two (2)
years after the issuance of a certificate of occupancy for any portion
of the subject property, or completion of any single-family homes,
whichever comes first:
-21-
(a) the remaining portion of Road "1", including any necessary
improvements to the lower portion of Makalei Drive;
(b) Road "3", and
(c) Road "Y'
[Applieant shall eemplete Read " 4 " no later than
Condition TJU' A 3pheant shall assefe the 1 - CD...,d
u »
by bond or other- seettrity aeeepted by the P!--
1atpr than the issuanee C a eei4ifieate ofe ^yam
Roadsi 3 and
3B" shall be built on the earlier of the followin events:
vents:
(a) whenever Road "4" is required to be built under other
conditions of this ordinance; and
(b) development of a portion of the Property that requires a
collector road that must be connected to Road "lA".
[44-J12. Makalei Drive is a "minor road" and will not be open to the public
until the collector Road 4 is open for public use.
13. Applicant shall continue prgparatory work for design of Road "4"
including working with the CoupU of Hawaii to secure the right of
way for Road "4" across State of Hawaii lands and providing
information necessary for the County of Hawaii to arrange the
right of way over privately owned lands As part of the preparatory
-22-
work. Applicant will after obtaining necessary approvals from the
affected landowner "pioneer the center -line" of Road "4" on the
ground no later than June 1 2011 Applicant shall complete Road
"4" by the later of the date that the County obtains the right of way
for Road "4" and the date that Applicant receives the 600" building
permit for residences in the Project If third party funding for at
least 50% of the construction cost for the segment of Road "4" that
is not within the State of Hawaii land is then available. Applicant
will fund the remainder of the construction cost and complete Road
"4" before the building permit for the 401" residential unit in the
Project is issued The improvements for Road "4" shall be secured
by a bond or other surety meeting with the approval of the Planning
Director to guarantee that the improvements will be completed as
required by this ordinance The bond or other surety shall be made
prior to issuance of Final Subdivision Approval for any subdivision
in the Project containing a single family residential lot.
[Y—.] W. There shall be no direct access from individual lots to collector
streets.
[I] X. Construction vehicles shall not utilize Makalei Drive.
[ASA-] Y. No vehicular security gate shall be installed within sixty (60) feet of
any proposed county road and a turnaround gate shall be provided
within the private road or property on the county road side of the
gate.
[lam] Z. All development generated runoff shall be disposed of on-site and shall
not be directed toward any adjacent properties. A drainage study
shall be prepared and submitted to the Department of Public Works
prior to issuance of any construction permit. Drainage improvements
shall be constructed, meeting with the approval of the Department of
Public Works, prior to issuance of a certificate of occupancy for any
-23-
buildings, or final subdivision approval for any subdivision creating
single-family residential lots.
[C -C-1. AA. A Solid Waste Management Plan shall be prepared and submitted for
approval to the Department of Environmental Management prior to
submitting plans for Plan Approval review. Approved
recommendations and mitigation measures shall be implemented in a
manner meeting with the approval of the Department of
Environmental Management.
[DD] BB. A wastewater treatment system shall be constructed, meeting the
approval of the State Department of Health and/or Department of
Environmental Management, whichever is applicable. All wastewater
shall be treated at an approved wastewater treatment plant, to a
minimum of secondary treatment, with R-1 effluent, unless a greater
level of treatment is required by the Department of Health.
Wastewater shall be used for irrigation of landscaping or other
beneficial reuse to the maximum extent feasible.
[€E-] CC. University of Hawaii Condition. Applicant shall provide the following
to relocate the University of Hawaii operations:
Connectivity with the University of Hawaii 500 -acre site.
Applicant shall allow the University of Hawaii to connect
with its wastewater and water supply systems. Applicant
shall also allow the University of Hawaii to connect
electrical and telecommunication systems to facilities
installed within the project. These connectivity sites shall be
to the University's satisfaction and located along its
northern boundary on Road "I S'.
2. Build Applicant's wastewater treatment system to handle
the wastewater from the initial University of Hawaii
building and design the wastewater treatment system to
-24-
accommodate future expansion for wastewater from future
expansion of the University of Hawaii operations.
Design and construct an initial classroom and administration
building of 20,000 square feet, with associated parking, at
Applicant's expense. If the University of Hawaii design
results in the cost of design and construction of the building
and associated parking exceeding $5,000,000, Applicant
shall be responsible for the first $5,000,000 and the
University shall be responsible for the balance. The building
shall be constructed on the State land designated for
University use. Construction on the building shall
commence as soon as the University has required the
necessary consents and approvals. If the necessary consents
and approvals cannot be obtained by the State, the
University shall have the right to lease from Applicant
appropriate space to house University of Hawaii at West
Hawaii until the necessary consent and approvals are
obtained at comparable lease rates now being paid by the
University of Hawaii until the 20,000 square foot building
can be constructed on the State land at Applicant's expense.
Applicant shall commence construction of the building, or
assure its construction by a bond or other security accepted
by the Planning Director and the Chancellor of Hawaii
Community College, before the issuance of a certificate of
occupancy for any building, other than the DOE building, or
final subdivision approval for any subdivision creating
single -family residential lots. Applicant shall complete
construction of the University building no later than two (2)
years after the issuance of a certificate of occupancy for any
-25-
building, other than the DOE building, or final subdivision
approval for any subdivision creating single-family
residential lots. The location and design of the building
(interior and exterior) and related improvements will be on
terms determined by the University of Hawaii. The
University of Hawaii shall consult on design of said
building with Applicant.
[FF-] DD. Applicant shall enter into an agreement with the DOE, in
accordance with the terms of the State Land Use Decision and
Order (Docket No. A03-744) dated May 19, 2005. If Applicant's
agreement with the DOE is later amended, Applicant shall file a
copy of such amendment with the Planning Department and shall
comply with the terms of the amended agreement. Applicant shall
contribute to the DOE an 8,000 square foot building within the
project site to use for a period of twenty (20) years, subject to the
following conditions:
No rent or common area maintenance fees will be charged
to the DOE.
The building will be used as instructional and office space
for the school complexes located in west Hawaii.
The building will meet DOE facility standards, with finished
classrooms, workshops and offices.
Applicant will collaborate with the DOE on the
requirements of the building in order to develop building
plan subject to DOE approval.
5. The finished building will be available to the DOE within
two (2) years of the issuance of a certificate of occupancy
for any multifamily residential building, or within two (2)
years from the completion of ay single-family residential
drl
building within the development, whichever comes first.
6. Following the initial twenty (20) year period when the
building will be made available to the DOE, the building will
be made available to the DOE for additional years, at the
prevailing rental rates.
7. If the DOE and Applicant determine that despite good
efforts, a building cannot be provided, or the DOE no
longer needs the facility and its design has not been
completed, Applicant will make an equivalent school fair -
share cash contribution in an amount to be determined by
the DOE. This cash contribution shall be expressly reserved
for use within the Kealakehe complex of schools.
The value of the building and its use is meant to be credited
against any DOE requirements under the State Land Use
Decision and Order.
[C&] EE. An Emergency Response Plan shall be submitted to the Civil
Defense Agency for review and approval, prior to the issuance of a
certificate of occupancy.
[94] FF. To ensure that the Goals and Policies of the Housing Element of
the General Plan are implemented, the applicant shall comply with
the requirements of Chapter 11, Article 1, Hawaii County Code,
relating to Affordable Housing Policy. This requirement shall be
approved by the Administrator of the Office of Housing and
Community Development prior to receipt of Final Plan Approval
and/or Final Subdivision Approval for any subdivision creating
single-family residential lots, whichever occurs first. The reduction
in minimum lot sizes and the increase in density permitted by
Section 11-8, Hawaii County Code, for affordable housing built
on-site shall not apply to this project district because the reduction
-27-
in minimum lot sizes has already been incorporated into the
conditions of this project district zoning, and the limit on residential
units stated is meant to include affordable units built on-site.
Applicant shall satisfy its affordable housing requirements by on-site
construction of units, and not utilize any affordable housing credits
generated off-site.
[IL] GG. Should any unidentified sites or remains such as artifacts, shell,
bone, or charcoal deposits, human burials, rock or coral alignments,
pavings or walls be encountered, work in the immediate area shall
cease and the Department of Land and Natural Resources -Historic
Preservation Division (DLNR-HPD) shall be immediately notified.
no
Subsequent work shall proceed upon an archaeological clearance
from the DLNR-HPD when it is found that sufficient mitigation
measures have been taken.
[Ad ] HH.
The applicant shall implement the Integrated Natural Cultural
Resource Management Plan (INCRMP) dated May 19, 2005, for
the Lowland Dry Forest Preserve (Exhibit "D" and "F" to the
INCRMP). Preservation actions, with fire control as a priority,
shall begin no later than six months after the effective date of this
ordinance.
[KK—] IL.
The applicant shall protect all uhiuhi and `aiea trees, and shall use
best efforts to preserve the major stands of wiliwili trees.
[L -L—] JJ.
The applicant shall implement the INCRMP for the cave areas
(Exhibit "E" to the INCRMP).
[}O4-1 KK.
The applicant shall implement the Archaeological Preservation Plan
(Exhibit "C" to the INCRMP), along with any amendments and
modifications thereto as approved by the State Historic
Preservation Division.
[NN-.] LL.
The Planning Director may approve modifications to the INCRMP
no
conforming to the general purposes of the INCRMP, after
consultation with the DLNR-DOFAW.
[98-] MM. To ensure that the property will be developed as an integrated
project, the applicant shall establish covenants to all deeds to any
parcels, except parcels to be conveyed to individual residents, that
require a master association to administer the development of the
project district in accordance with the conditions of land use
approvals. The covenants shall give notice that the various parcels
are subject to an overall zoning that requires coordinated
development. Until the master association is formed, the applicant
shall be responsible for ongoing duties such as the management of
the Dry Forest Preserve Area and other stewardship duties, and for
contingent project responsibilities. After the formation of the
master association, those responsibilities, except for offsite
infrastructure requirements, shall be transferred to the master
association.
[P -R-] NN. The applicant shall make its fair share contribution to mitigate the
potential regional impacts of the property with respect to parks and
recreation, fire, police, solid waste disposal facilities and roads.
The fair share contribution shall become due and payable on the
sale or lease of residential units subject to such contribution. The
fair share contribution shall have a maximum combined value of
[$6,411.25 $7,383.36 per multiple family residential unit
([$9A94-.-20] $11,506.13 per single family residential unit). The
total amount shall be determined with the actual number of units
according to the calculation and payment provisions set forth in this
condition. The fair share contribution per multiple family
residential unit (single family residential units) shall be allocated as
follows:
-29-
[Sa,462-.49] $3.642.00 per multiple family residential unit
([$4,917-.93] $5.548.46 per single family residential unit) to
the County to support park and recreational improvements
and facilities;
2. [$99.95] $115.11 per multiple family residential unit
([$232.42] $267.66 per single family residential unit) to the
County to support police facilities;
[$307.46] $354.08 per multiple family residential unit
([$459:96] $528.66 per single family residential unit) to the
County to support fire facilities;
4. [$1304] $157.81 per multiple family residential unit
([$290:98] $231.45 per single family residential unit) to the
County to support solid waste facilities; and
5. [$ter] $3,114.36 per multiple family residential unit
([$4,280:82] $4,929.90 per single family residential unit) to
the County to support road and traffic improvements.
The fair share contribution shall be waived for the affordable
housing units. In lieu of paying the fair share contribution, the
applicant may contribute land and/or construct
improvements/facilities related to fire, police, and solid waste
disposal facilities within the region impacted by the proposed
development, subject to the review and recommendation of the
Planning Director, upon consultation with the appropriate agencies
and approval of the County Council. With respect to the fair share
contribution for parks and recreation, that contribution for all
residential units will be satisfied when Applicant completes and
offers for dedication all of the land facilities for the active use park
described in Condition [" Imo] "T" above. The fair share
contribution for roads will be satisfied upon completion of the Mid-
-30-
-31-
Level Road (Road "2"), Road "3A and 313", Road "5" and Road
"4":
[QQ ] 00.
Should the Council adopt a Unified Impact Fees Ordinance setting
forth criteria for imposition of exactions or the assessment of
impact fees, conditions included herein shall be credited towards the
requirements of the Unified Impact Fees Ordinance.
[RR-] PP.
Comply with all other applicable County, State and Federal laws,
rules, regulations and requirements.
[&S-.] QQ._
An annual progress report shall be submitted to the Planning
Director prior to the anniversary date of the approval of this Project
District Ordinance. The report shall include, but not be limited to,
the status of the development and the extent to which the
conditions of approval are being satisfied. This condition shall
remain in effect until all of the conditions of approval have been
satisfied and the Director acknowledges that further reports are not
required.
[3=T-] RR.
An initial extension of time for the performance of conditions within
the ordinance, [ ]
may be granted by the Planning Director upon the following
circumstances.
1. The non-performance is the result of conditions that could
not have been foreseen or are beyond the control of the
applicant, successors or assigns, and that are not the result
of their fault or negligence.
2. Granting of the time extension would not be contrary to the
General Plan or Zoning Code.
3. Granting of the time extension would not be contrary to the
original reasons for the granting of the Project District.
-31-
4. The time extension granted shall be for a period not to
exceed the period originally granted for performance (i.e., a
condition to be performed within one year may be extended
for up to one additional year).
5. If the applicant should require an additional extension of
time, the Planning Department shall submit the applicant's
request to the County Council for appropriate action.
Should any of the conditions not be met or substantially complied
with in a timely fashion, the Planning Director may initiate rezoning
of the subject area to its original or more appropriate designation.
[LvJ-.] SS. [The Planning Difeeter may pem3it an extension of the -si�ne
«>,•
-con&ien X. W, pfep�rided that the
requir-emefAs of Condition "W" afe fnet, and, in addition, the ae-vO
d-e-Rd-lins for emplefien of Read «»•
s not mere than two (2)
years after the tieft of
building, ineluding-si��
r +
Fes'.7 1 buildings, T T.. h than the city buil.7;.. F the T)O
-32-
RPalamanui051 Wuly.do -7/21/09
COUNTY OF HAWAII PLANNING DEPARTMENT
PALAMANUI GLOBAL HOLDINGS LLC (REZ 05-10)
ADDITIONAL INFORMATION
JULY 21, 2009
After the June 30, 2009 Leeward Planning Commission meeting, the Planning
Department and the Director of Public Works (DPW) met to review the DPW comments
articulated in its June 19, 2009 memorandum. The Planning Department also reviewed
the draft hearing transcript to address some of the concerns expressed by the
Commissioners and members of the public who presented oral and written testimony.
The Planning Department also worked with the applicant in addressing the concerns
expressed at the hearing. The major concerns expressed related to the following:
Timing for the development of the 20 -acre park (original Condition U, new
Condition S): The Planning Department has determined that the applicant's
request to amend this condition by deferring the development of the 20 -acre park
until building permits are issued for 101 single-family residential units is
reasonable. The original language of this condition required the 20 -acre park to
be developed prior to the occupancy of the first residential unit within the project.
2. Proposed roadways (original Condition X - new Condition V): This condition
was rearranged to make it more organized. The roadways are now identified by
names and numbers as reflected in the Kona Community Development Plan's
official concurrency map (Figure 4-3).
A. One of the concerns expressed related to the timing or lack of timing for
the construction of the roadways. The revised Condition V incorporates
the timing as to when these roadways are required to be constructed. For
example, the new Connector Road (Road la Kona CDP), which will
traverse through State and private properties and connect to Highway 190,
should be constructed no later than six (6) years after the entire right-of-
way beyond the applicant's property has been obtained by the County.
Another example, is Kamanu Street from the applicant's property to
Kaiminani Drive should be constructed prior to the first building for the
University of Hawaii is constructed on the adjacent property.
B. Another concern expressed related to the funding for the construction of
the Connector Road (Road 1). The applicant initially requested an
amendment that would require that the improvements for Road 1 be
secured by a $10 million bond or other surety. The Planning Director feels
that an amount should not be included in this ordinance since the anlount
of improvements could be greater than $10 million. The Planning
Director, therefore, feels that the wording as proposed in Condition V.4. is
adequate. This condition states, in part, the following:
".....completion of Road 1 will be secured by bond or other
security meeting the approval of the Planning Director to guarantee
that improvements will be completed by the deadline specified..."
C. Makalei Drive: Residents of Makalei Estates expressed concerns that
Makalei Drive will become a through -street if the Connector Road (Road
1) is not constructed in a timely manner. This will not be the case since
the original Condition X states that Makalei Street will not be open to the
public as a through -street until Road 1 is opened for public use. This
condition is not required to be amended.
3. Besides the amendments to the 20 -acre park and roadway conditions cited
above, the following conditions are proposed to be amended:
Condition D - change in acreage from 725.2 to 695.282 acres to reflect the
approximately 29.92 acres from Project District to MCX-20.
Condition G - change in acreage from 102 to 72.08 acres to reflect the
approximately 29.92 acres from Project District to MCX-20.
Original Condition N - delete in entirety, in agreement with the applicant
that the timing of this condition will affect the sales absorption of the
commercial property.
-2-
Original Condition Q - delete in entirety; as this condition is already
specified in Condition No. 7 of Docket No. A03-744 and Condition T of
Ordinance No. 06 105 requires an 800 -foot open space buffer from the
Queen Ka`ahumanu Highway.
Original Condition S - applicant to develop a 20 -acre park prior to the
issuance of the 10151 building permit for a single-family residence in the
project instead of the occupancy of the first residential unit.
Original Condition V - roadways to be referenced as identified in the
General Plan and the Kona CDP Official Concurrency Map. Thus, Road 1
refers to the new connector mauka-makai roadway through the project;
Road 2 is University Drive; Road 3 is Kamanu Street, Road 6 is the Ane
Keohokalole Highway, and Road 7 is the Kealakaa Street Extension.
Condition CC.2 - reference to University Drive as Road 2.
Condition NN - updated figures for Fair Share; Fair Share contribution to
be satisfied upon completion of Kamanu Street Extension, Ane
Keohokalole Highway, Kealakaa Street Extension, and Road 1.
Based on the above discussion, the Planning Director is recommending the
proposed changes to Ordinance No. 06 105 (material to be deleted is bracketed
and struck through; material to be added is underscored). The revised condition is
reflected in Exhibit 14.
-3-
Palamanui Development, LLC
Ordinance No. 06 105
Planning Director's Revised Conditions of Approval
July 21, 2009
A. The applicant, successors or assigns shall be responsible for complying
with all of the stated conditions of approval.
B. The applicant shall comply with all conditions of approval of the State
Land Use Commission's Decision and Order (Docket No. A03-744) dated
May 19, 2005.
C. The applicant shall comply with the conditions as set forth in the Water
Agreement between K -W Kau, LLC and the Water Commission of the
County of Hawaii dated June 15, 1999.
D. The project shall consist of a maximum of [745-.2] 695.282 acres for
single-family and multi -family residential, commercial uses, hotel,
university and public school facilities, dry forest preserve, archaeological
and cave preserve areas, active and passive parks, a trail system and
supporting infrastructure.
E. The maximum number of residential units allowed shall be 1,116 units,
including the on-site affordable housing units.
F. The maximum number of hotel rooms shall be 120.
G. Commercial spaces for medical, office, retail, classrooms and health
related uses and hotel shall be limited to [ 02] 72_08 acres.
H. Active and passive parks (Open, Park and Preservation) shall be
developed on a minimum of 177.8 acres. A "Constraints Area" which
includes the approximately 55 -acre dry forest preserve, archaeological
sites/cave and park areas, shall be set aside in the project area.
I. The uses allowed in the Project District shall be all permitted uses allowed
by right in the RS, RM, CN and CV zoned districts, and a golf course and
related facilities. Uses allowed by Use Permit in the CV district may be
allowed.
A detailed Master Plan of the Project District, which includes the location
1 - Planning DeVa
ExhibitL—
and number of residential lots and units, hotel, commercial uses, parking,
golf course, open space and recreational areas and other related
improvements on the property, shall be submitted to the Planning Director
within two (2) years from the effective date of the Project District
Ordinance or prior to submission of plans for plan approval or subdivision
approval, whichever occurs first.
K. Substantial construction of the proposed development shall commence
within five (5) years from the effective date of the Project District
Ordinance. "Substantial construction" means the actual start of
construction of project infrastructure under a bona fide contract of not less
than ten million dollars ($10,000,000.00). Prior to construction, the
applicant, successors or assigns shall secure Final Plan Approval for the
proposed development from the Planning Director in accordance with
Section 25-2-70, Chapter 25 (Zoning Code), Hawaii County Code Plans
shall identify proposed structures, fire protection measures, paved accesses
and parking stall, and other improvements associated with the proposed
uses.
L. The following design standards shall apply:
Landscaping for the development shall comply with the Planning
Department's Rule No. 17, Landscaping Requirements.
Landscaping rules, such as the screening of single-family
residential from commercial areas, shall be applied according the
actual uses.
2. The height limit for structures within the project area shall not
exceed the following:
a. Single-family residential development: 35 feet
b. Multiple -family residential and hotel developments: 45
feet
C. Office and retail commercial development: 45 feet.
3. The minimum off-street parking and loading space requirements of
Chapter 25, Hawaii County Code shall be complied with, including
2-
compliance with the American Disabilities Act (ADA)
requirements.
M. The variances from Chapters 23 (Subdivision) and 25 (Zoning), Hawaii
County Code, as presented in Planning Department Exhibit 2 (Applicant's
November 21, 2005 letter with attached Tables pages 1 to 6 related to
Variance Requested from Sections in Subdivision and Zoning Codes, and
Applicant's Figure 2 - Conceptual Character of Town Center/Residential
Village Center, Figure 3a - Residential Village Center Alternative: 4,000
SF Lot, Figure 3b - Residential Village Center Alternatives: 6,000 SF Lot,
Figure 4a - Conceptual Plan: Roadway Concepts - Dedicable, Figure 4b -
Conceptual Plan: Roadway Concepts - Nondedicable, and Figure 5 -
Residential Village Center Alternatives: Zone Lot Line Concepts) shall be
allowed under the Project District. The applicant shall submit detailed
plans to the Planning Director showing street designs and cross-sections,
and adjacent building designs, with the Master Plan. The Planning
Director may require modifications to the street sections to provide
sufficient on -street parking where the plans do not provide adequate off-
street parking (such as the 4,000 -square foot lots with a one -car garage
and insufficient setbacks to allow parking in driveways), and may require
further changes necessary for public safety and convenience. All roads
built with the variances allowed under this condition will be non-
dedicable. With regard to the requested zero line building setbacks, the
applicant shall conform to the current Hawaii County Building Code
requirements. As part of the Master Plan, the applicant shall submit plans
for pedestrian movement through the project district, which shall identify
areas where sidewalks will be included to permit safe pedestrian access to
the Town Center and other important points in the development.
fN Toensure that the p eet in developed accordingstated ♦e itstatedge l of
LL ranting n mixed . sidpgtinl n n t insludi.,
mresidential de. elepmenr The .proem shAl h2ye, rat leant e n:Aentinl
unit for every 600 squafe feet of nefifesidefitial development (tindef feef).
-3-
Spaee used by the University shall not be ineluded in the ealeulatien e
non esidential space. There is no mininium requirement f r r4,o
nonresidential development.]
[0-.] N. The permitted hotel, designated as the "University Inn and Conference
Center," shall function as a business hotel and in conjunction with
University operations. It shall not be operated under a time-share plan
or other arrangement that provides for shared ownership of individual
units on the basis of time intervals, or club membership allowing
periodic use.
[P.]0. Occupancy of the hotel shall not be granted until the construction of
the Queen Ka`ahumanu Highway, Phase II widening improvements to
four lanes from Kealakehe Parkway to the Kona International Airport
at Keahole has been secured by the State entering into a construction
contract for the improvements, or until improvements construction has
commenced on the 20,000 square foot University building, or the
building's completion has been assured by bond or other security
acceptable to the Planning, Director, whichever comes first..
[� N retail eenimereial ,.t«„et..«es . be lcccted clecer than 1,500 feet
f am the Queen Kann..« anu 14igy,ay. fight of way.]
P. To ensure that the commercial development corresponds with the
applicant's representations regarding neighborhood -scale commercial
development, no single retail establishment shall have more than
45,000 square feet of developed area under roof.
Q. Total retail space (not including restaurants) shall not exceed 75,000
square feet under roof until the construction of the Queen Ka`ahumanu
Highway, Phase II widening improvements to four lanes from
Kealakehe Parkway to the Kona International Airport at Keahole has
been secured by the state entering into a construction contract for the
improvements. The square footage of improvements leased to the
University of Hawaii shall not count against this limit.
[T-. ] R. The applicant shall set aside a "Constraints Area” including the
-4-
approximately 55 -acre dry forest preserve, archaeological sites/cave
and park areas on the project site.
[U-.1 S. The Applicant shall develop one 20 -acre park site prior to [may
of l First residential unit an the property.] the issuance of the 101"
building permit for a single-family residence within the Project. The
20 -acre active park site shall include two playing fields which may be
one baseball field and one soccer field or two baseball fields or two
soccer fields, parking lot and restrooms, with the specific requirements
to be determined in consultation with the Department of Parks and
Recreation. The 20 -acre active park shall be constructed to county-
dedicable standards, and the county shall accept dedication.
N-1 T. There shall be an 800 -foot setback from the Queen Ka`ahumanu
Highway. No structures, other than those allowed under Condition
No. 7 of the Land Use Commission's Decision and Order, shall be
allowed within the 800 -foot setback area. A copy of the metes and
bounds description for this open space area, and proposed covenant(s)
shall be submitted to the Planning Director for review and approval
prior to receipt of Final Plan Approval or land alteration activities,
whichever occurs first. The approved covenant(s) shall be recorded in
the Bureau of Conveyances prior to the issuance of Final Plan
Approval, or land alteration activities, whichever occurs first. A copy
of the recorded covenant(s) shall be provided to the Planning
Department.
[WL] U. All project utilities shall be underground.
[X-. ] V [Tl ««lieant shall e nstn.et the 011ewi"b .,., roads to eess eche
Y «e. -ties and the regional read s ,.rtem-
z1. Project aeeess read From the Queen Vaal unia«.. Highway t..
the eastern he..«da.y of the projeet (Dead "1"e attaehed
.. Exhibit "B"): Dead "I" Shall intersect iyith the Queer,
rIa'ahuma«., Highway at e loe..tien approved by the State
Department of Transportation, and shall a eet with Makalei
-5-
' 6 -
..
,'!,,to
AeA:eateA
....ht
Ka'..h...«,.«..
t..«.
..«A left t...« le«e
High..,..., T0...n.
from
Dead
Queen
faiiteA
at
the feEittest
««1:,.n«t
oFTI„«...+.«e«4
..1,..11 install
of Tfans«eAatie«
t«,.ff... signals and
n seee«.1
the
left
theQueen
t..«.
1....e 401
v..'ah...,,,.«.,
e«pfoje.
u:..h...e..
..A to
2. "TTA
T
e .el
Road"
fom- Road
"1"4..
Kaim:«n«: Tfiye
( ead—
"'1"
half
AeAieable
«
;eetim
h4hlhlt
"Q"):
of a 120
The
food
elleete«
.. «live«r
wide
fight
shall .. nstfuet
of way toe
The e««l:en«r
the...n..Ln
«t..
eati..t«..et
approval
«terseetion
standards
the
of
:«te...e,.4:e.h
the De«...+.«e«t
shall :«elide
as a
..t
e
TI..:.«
of
left
D..hl:e
tuFn
read
: TI.-: fneeti«...
Workshad rhe
e
lane afi Kai4hh:.h,.«:
shall
:th the
TI«:..e
3. A north
elevation
se..th
(PRAA
ealleete.-foad
"Z"
on Exhibit
at n
"TZ"):
.«..tel. the
The fiai4h se.dh
600
fee
..ileetor
f..tufe
...;leetef
road
shell
read
be designed
(Read
"A")
to
..
F.«..tie« as a ««.rt:..«
eer:«.. High..,e.,
l
of e
0l1 ,..:th
RRnd-
shell
"1"
he
and
,. «..tFdeteA
the
!Lave« Ka'..h..«
to e ...t..
AeA:enhle
anu High.......
stn«dafds
Road
as
"3"
P.A-Ilep.tar
«1:..
road
«t shall
with
e
an 88 foot
st«..et the
:«terseeti..«
wide
fight of .......
between
Tl.e
Road
"1"
an
Road
D..1.1:e
"1"meeting
WE)fk-..
...:th the
approval
of the Te«aAme«t
a
4. Tale..
re««e..4e«
Exhibit
44
And t TA
t
h Highway v_
Read
:e t
'A",
(Read
its
on
nTAPP::eanE
s
a eens#n-lst
at
..leexpense,
as ..
two 1..«e
60
foot
wide e «t.. AeA:,...hle
,.11eetor
feet
road
ineluding
sh....1Ae.-..and
The fifial
design
s ...1e.. within
an 44
De..A
..fie...
right
"A"
of
,;hell
..Ration,.,:rh
way.
be
Aere.-nineA
the
Dle««:«..
by
and mwiiffitifli
the Direetor of D..hl:e
Direrte.- A««11..,.«t
grade
o
lII afics
he not
required
to
install streeN:ehts
«t at the
e
:«terseetie«
shall
with
Highway
inn o
utilities
1F another
private
de..elone«is-
to
in building
Road
"A'
eF
required
participate
condition
land
Annllea...t's
shall
be
limited
to the
use
appfa.als
share
portion
of Road
"4"
on Applieafit's
property
and
on State land.
The
Applicant's
County
shall
prape.-t.
obtain
the
neoessa«.r
fight
of way
outside
5 A rea.]
Ct«
et
to eefffleet
Nana
setith
Street
to
/Deal
the futtife
"c"
extension
n Exhibit
"1]"\.
FLT l h l
The nl:.. nt
shall
build
Dead
"C'
with:..
the
projeeta
a
to eount.
d d'
hl
d dsas
a miner
street
0
ditshallinterseet
with
Dene
6. Th
The
t�[c-pc$rJ'2crcvFrs'�noviw�vcmzoicncccro�[S
thet
DI@II�Z�
to
1N�GGco[
ride
may
laeal
icvlu
n
oche:
tion
to
[o
leeal
the
P
st:
ad'o
c .. j......:pfob
ots .::thin
ne«t.r
appfavnl
'] At the..
hall
to the
o plan
esters
no«th
n
/maLn:\
safet.,
and
,al
end
improvements
south
of MaLale:
as a .,dation
n
Tl«:.re
..
of
then
to make_assafe-
subdivision
nl:.. ant
fe
provide
tv
Doud "1"
but
li..m.ted
trlrS}tIVI
transition
Z
�
rhi2hr`aT
ricicd
afc
i'et
t rdmble
PJTI.�il2LG4'O'�cTIG
S. Th
W-lowing
st«:ns
«ed b..
and
the De..a«tment
OG"PQLSSZIGIILVI
ad improvements
establishing
of
s
Dnhl:e
I POIIG
shall
.ele.watien
TT/o«Ls
hen
•. v..iu.
nleted
C «the e
before »
ee#ifieate
prenett.,
scoemsicn-'ivy
f
o completion
oeettpaftey
is
of
issued
any
C «afty
single
family
ne.w:on
hemes
of the snh:eet
..rh;ehe.re.-
Road
"1'
least
G[om-the
Va'Phmmmrnn
(a)
Highway
to
$t
the 1nte.seetion
Queen
the
,el
Mid Level
Dead
/Dead
"7").
with
M\
nvPv�xcoa�cT
the :nte.seetion
of the main
n
eet
neeess and
..with
the
Vatah..man..
High..
a.s and
Queen
/e\
the Mid
Level
rel Dead
/Dead
"2"\
from
the m
ai
pfojeet
aecess
and
to Va:m:nan:
Tl«:. n nd the
M
n. The following ead
ther curety meeting
tog ..tee that the
two M\ years after
Cr an).....rt:.... of
the
improvements
with the
im
the :sstieAiee
....h:eetp
approval
e..t,...:ll
of
..e.rt..e
shall be
of
a ee.tif.....te
..letien
.............7
the
he e
by bond
Planning Dire.to
..lete.l within
of eee.....,ney
..
of .,...sin,
.le family home..
.. h:..he.
e eemes
A.st
......-tie..
Road
"1»
.
.....1..A:....
(a) the remaining
Hle.,t..
of
t,. the
16.,,e.-
e any
pel4:8., 0
TT AakaleiDrive;
lhV Dead
Read
Q" ...1
(b)
a.�
\/e\ Read "5'
�T
10. A..«7:......t shall e
..lete D,....1
"n"
no later-
th....six
(6) .
asI.—
allowed under Condition "W". Applieant shall assufe th
the Planning Dir-eeter no later than the issuance of a eertificat-e
of E)eeupaney for any building, other than the Univefsity er th
State ■(DOE) building, ar final
subdivision approval for an), subdivision efeating single family
residential lats. Gei4ifieate of oeetfpaney for an), ttilding,
other than the University of ■■_ building
;3nd- final subdivision approval for any subdivision ereatin
single family fesidential lots shall not be granted, until the
neeessary right of way for- .. been ebtained
14. Malcalei ■
publie until the ealleeter Read .
constructThe Uplicant shall • •wing roads and improvements
within and outside of its property as identified in the Hawaii Count
General Plan • the Kona• •• D'
Official Concurrency Map, Figure 4-3, adopted as Ordinance No. 08
131 effective September 25, 2008:
University Drive (Road 2 - Kona CDP Map, Figure 4-3) within
the property from the Queen Ka`ahumanu Highway to Makalei
Drive:
a. From the Queen Ka`ahumanu Highway intersection to
the proposed Ane Keohokalole Highway (Road 6A -
Kona CDP Map, Figure 4-3), University Drive (2) shall
consist of an 88 -foot right-of-way with two lanes
constructed to County-dedicable standards. This
roadway shall be dedicated to the County upon its
completion. The section of this roadway from the
Queen Ka`ahumanu Highway to Kamanu Street (Road
3A - Kona CDP) shall be completed prior to the
opening of the first building constructed on the State
land for the University of Hawaii or before a
Certificate of Occupancy is issued for any portion of
the subject property or the completion of any single-
family residential homes, whichever occurs first. The
remaining section of this roadway from the Kamanu
Street (3A) to Makalei Drive shall be constructed and
dedicated to the County upon its completion.
From the proposed Ane Keohokalole Highway (6A) to
Makalei Drive, the road shall be constructed to County-
dedicable standards as a minor street, except that design
standards shall be varied to permit the connection with
Makalei Drive without encroaching into the lowland
Dry Forest Preserve. The connection with Makalei
Drive shall be designed to not encroach into the
Lowland Dry Forest Preserve. The grade shall not
-10-
exceed ten (10) percent, except near the connection
with Makalei Drive.
C. At the Queen Kaahumanu Highway, the intersection
shall be improved in accordance with one of the
following two options:
1) If a grade separated interchange is available to
connect to Queen Kaahumanu Highway when
the applicant is read to construct the lower
section of University Drive (2), the applicant
will connect to such interchange and in such
case, applicant will contribute $1,500,000 to the
Department of Transportation.
2) If a grade separated interchange is not available
to connect University Drive (2) to Queen
Kaahumanu Highway when the applicant is
ready to make the connection, applicant shall
improve the intersection at its expense as
required by the Department of Transportation,
but shall include, at a minimum, a deceleration
and an acceleration lane on Queen Kaahumanu
Highway, a left -turn lane on Queen
Kaahumanu Highway, and a dedicated right -
turn and lei -turn lane from University Drive (2)
to Queen Kaahumanu Highway. If warranted,
at the request of the Department of
Transportation, the applicant shall install traffic
signals and a second left -turn lane from
University Drive (2) to the Queen Kaahumanu
Highway.
3) The intersection improvements with the Queen
Kaahumanu Highway shall be completed prior
- 11 -
to the opening of the first building constructed
on the State land for the University of Hawaii
or before a Certificate of Occupancy is issued
for any portion of the subject property or the
completion of any single-family residential
homes, whichever occurs first.
2. Kamanu Street (Road 3A - Kona CDP) from University Drive
(2) to Kaiminani Drive:
The applicant shall construct the mauka half -section of a 120 -
foot wide right-of-way to County-dedicable standards as a two-
lane road. The applicant shall construct the intersection at
Kaiminani Drive meeting with the approval of the Department
of Public Works. The intersection shall include a left -turn lane
on Kaiminani Drive. The intersections at the northern and
southern end of this road shall have illumination. This road
shall also be provided with a utility trench suitable for
installation of future street lights by the Department of Public
Works or the State Department of Transportation when such
illumination is determined to be necessary. The construction of
this roadway shall be completed prior to the opening of the first
building on the State land for the University of Hawaii.
3. Ane Keohokalole Highway (Road 6A - Kona CDP):
The portion of Ane Keohokalole Highway (6) within the
property shall have a right-of-way width of 120 feet. The
applicant shall construct a half -section, two-lane road, within
this 120 -foot right-of-way to County-dedicable standards. This
roadway shall be designed to function as a portion of a future
12-
road (Road 1 - Kona CDP) connecting Highway 190 with
University Drive and the Queen Ka`ahumanu Highway. The
applicant shall construct the intersection of University Drive
and the Ane Keohokalole Highway meeting with the approval
of the Department of Public Works. This roadway shall be
dedicated to the County when the County requires it to connect
with Road 1 (Kona CDP). Ane Keohokalole Highway (6A),
which is dead -ended for future connections, shall have
preliminary engineering for technical feasibility
environmentally cleared for construction, a minimum of 500
feet from the subject property boundary into the adjacent
properties.
4. New Connector Road (Road 1 - Kona CDP):
The right-of-way width of Road 1 within the State lands shall
be 120 feet. The section of Road 1 from the State property to
Highway 190 within the private properties shall have a right-
of-way width of 88 feet. Applicant shall construct Road 1, at
its sole expense as a two-lane County-dedicable collector road,
including shoulders and swales. The final design and
maximum grade of Road 1 shall be determined by the Director
of Public Works after consultation with the Planning Director.
The applicant shall continue preparatory work for the design of
Road 1, including working with the County of Hawaii to secure
the right-of-way for Road 1 across State of Hawaii lands and
providing information necessary for the County of Hawaii to
arrange the right-of-way ver privately owned lands.
Applicant shall not be required to install utilities or streetlights,
except that streetlights shall be installed by the applicant at the
intersection with Highway 190. The County shall obtain the
necessary right-of-way outside of applicant's property.
- 13 -
Completion of Road 1 will be secured by bond or other
security meeting the approval of the Planning Director to
guarantee that improvements will be completed by the deadline
specified in this condition. The bond or other security shall be
provided prior to the granting of final subdivision approval on
the property containing single family lots.
The applicant shall complete Road 1 no later than six (6) years
after the entire right-of-way is acquired.
The time extension provisions of Condition RR shall also apply
to Road 1.
5. Kealakaa Street Extension (Road 7 on Kona CDP
The applicant shall reserve an 88 -foot right-of-way for the
Kealakaa Street Extension within its property for future use as
a County road. The applicant shall construct the road to
County-dedicable standards as a minor collector road at its sole
expense and dedicate it to the County of Hawaii when a
connection at the southerly boundary of the project is opened.
Kealakaa Street (7), which is dead -ended for future
connections, shall have preliminary engineering for technical
feasibility and environmentally cleared for construction, a
minimum of 500 feet from the subject property boundary into
the adjacent property.
6. At the western (makai) end of Makalei Drive, the applicant
shall provide safety improvements necessary to make a safe
transition to University Drive (2), which may include, but not
limited to, rumble strips and establishing super -elevation for
the curve, as required by the Department of Public Works.
14-
Makalei Drive is a "minor road" and will not be open to the
public as a through street until Road 1 is opened for public use.
[Y-.] W. There shall be no direct access from individual lots to collector streets.
[Z-. ] X. Construction vehicles shall not utilize Makalei Drive.
[Atm] Y. No vehicular security gate shall be installed within sixty (60) feet of
any proposed county road and a turnaround gate shall be provided
within the private road or property on the county road side of the gate.
[ham-.] Z. All development generated runoff shall be disposed of on-site and shall
not be directed toward any adjacent properties. A drainage study shall
be prepared and submitted to the Department of Public Works prior to
issuance of any construction permit. Drainage improvements shall be
constructed, meeting with the approval of the Department of Public
Works, prior to issuance of a certificate of occupancy for any
buildings, or final subdivision approval for any subdivision creating
single-family residential lots.
[CC-]. AA. Solid Waste Management Plan shall be prepared and submitted for
approval to the Department of Environmental Management prior to
submitting plans for Plan Approval review. Approved
recommendations and mitigation measures shall be implemented in
a manner meeting with the approval.of the Department of
Environmental Management.
[DD:] BB. A wastewater treatment system shall be constructed, meeting the
approval of the State Department of Health and/or Department of
Environmental Management, whichever is applicable. All
wastewater shall be treated at an approved wastewater treatment
plant, to a minimum of secondary treatment, with R -I effluent,
unless a greater level of treatment is required by the Department of
Health. Wastewater shall be used for irrigation of landscaping or
other beneficial reuse to the maximum extent feasible.
[E -E-.] CC. University of Hawaii Condition. Applicant shall provide the
- 15 -
following to relocate the University of Hawaii operations:
1. Connectivity with the University of Hawaii 500 -acre site.
Applicant shall allow the University of Hawaii to connect
with its wastewater and water supply systems. Applicant
shall also allow the University of Hawaii to connect
electrical and telecommunication systems to facilities
installed within the project. These connectivity sites shall
be to the University's satisfaction and located along its
northern boundary on [R Rad University Drive (2).
2. Build Applicant's wastewater treatment system to handle
the wastewater from the initial University of Hawaii
building and design the wastewater treatment system to
accommodate future expansion for wastewater from future
expansion of the University of Hawaii operations.
3. Design and construct an initial classroom and
administration building of 20,000 square feet, with
associated parking, at Applicant's expense. If the
University of Hawaii design results in the cost of design
and construction of the building and associated parking
exceeding $5,000,000, Applicant shall be responsible for
the first $5,000,000 and the University shall be responsible
for the balance. The building shall be constructed on the
State land designated for University use. Construction on
the building shall commence as soon as the University has
required the necessary consents and approvals. If the
necessary consents and approvals cannot be obtained by the
State, the University shall have the right to lease from
Applicant appropriate space to house University of Hawaii
at West Hawaii until the necessary consent and approvals
are obtained at comparable lease rates now being paid by
the University of Hawaii until the 20,000 square foot
16-
building can be constructed on the State land at Applicant's
expense. Applicant shall commence construction of the
building, or assure its construction by a bond or other
security accepted by the Planning Director and the
Chancellor of Hawaii Community College, before the
issuance of a certificate of occupancy for any building,
other than the DOE building, or final subdivision approval
for any subdivision creating single-family residential lots.
Applicant shall complete construction of the University
building no later than two (2) years after the issuance of a
certificate of occupancy for any building, other than the
DOE building, or final subdivision approval for any
subdivision creating single-family residential lots. The
location and design of the building (interior and exterior)
and related improvements will be on terms determined by
the University of Hawaii. The University of Hawaii shall
consult on design of said building with Applicant.
[RL] DD. Applicant shall enter into an agreement with the DOE, in
accordance with the terms of the State Land Use Decision and
Order (Docket No. A03-744) dated May 19, 2005. If Applicant's
agreement with the DOE is later amended, Applicant shall file a
copy of such amendment with the Planning Department and shall
comply with the terms of the amended agreement. Applicant shall
contribute to the DOE an 8,000 square foot building within the
project site to use for a period of twenty (20) years, subject to the
following conditions:
No rent or common area maintenance fees will be charged
to the DOE.
The building will be used as instructional and office space
for the school complexes located in west Hawaii.
The building will meet DOE facility standards, with
-17-
finished classrooms, workshops and offices.
4. Applicant will collaborate with the DOE on the
requirements of the building in order to develop building
plan subject to DOE approval.
5. The finished building will be available to the DOE within
two (2) years of the issuance of a certificate of occupancy
for any multifamily residential building, or within two (2)
years from the completion of ay single-family residential
building within the development, whichever comes first.
6. Following the initial twenty (20) year period when the
building will be made available to the DOE, the building
will be made available to the DOE for additional years, at
the prevailing rental rates.
7. If the DOE and Applicant determine that despite good
efforts, a building cannot be provided, or the DOE no
longer needs the facility and its design has not been
completed, Applicant will make an equivalent school fair -
share cash contribution in an amount to be determined by
the DOE. This cash contribution shall be expressly
reserved for use within the Kealakehe complex of schools.
The value of the building and its use is meant to be credited
against any DOE requirements under the State Land Use
Decision and Order.
[G&.] EE. An Emergency Response Plan shall be submitted to the Civil
Defense Agency for review and approval, prior to the issuance of a
certificate of occupancy.
[#N-.] FF. To ensure that the Goals and Policies of the Housing Element of
the General Plan are implemented, the applicant shall comply with
the requirements of Chapter 11, Article 1, Hawaii County Code,
relating to Affordable Housing Policy. This requirement shall be
approved by the Administrator of the Office of Housing and
-18-
-19-
Community Development prior to receipt of Final Plan Approval
and/or Final Subdivision Approval for any subdivision creating
single-family residential lots, whichever occurs first. The
reduction in minimum lot sizes and the increase in density
permitted by Section 11-8, Hawaii County Code, for affordable
housing built on-site shall not apply to this project district because
the reduction in minimum lot sizes has already been incorporated
into the conditions of this project district zoning, and the limit on
residential units stated is meant to include affordable units built on-
site. Applicant shall satisfy its affordable housing requirements by
on-site construction of units, and not utilize any affordable housing
credits generated off-site.
[I] GG.
Should any unidentified sites or remains such as artifacts, shell,
bone, or charcoal deposits, human burials, rock or coral
alignments, pavings or walls be encountered, work in the
immediate area shall cease and the Department of Land and
Natural Resources -Historic Preservation Division (DLNR-HPD)
shall be immediately notified. Subsequent work shall proceed
upon an archaeological clearance from the DLNR-HPD when it is
found that sufficient mitigation measures have been taken.
[J1.] HH.
The applicant shall implement the Integrated Natural Cultural
Resource Management Plan (INCRMP) dated May 19, 2005, for
the Lowland Dry Forest Preserve (Exhibit "D" and "F" to the
INCRMP). Preservation actions, with fire control as a priority,
shall begin no later than six months after the effective date of this
ordinance.
[KX--.] lI.
The applicant shall protect all uhiuhi and `aiea trees, and shall use
best efforts to preserve the major stands of wiliwili trees.
[U—.] JJ.
The applicant shall implement the INCRMP for the cave areas
(Exhibit "E" to the INCRMP).
[MM-.] KK.
The applicant shall implement the Archaeological Preservation
-19-
Plan (Exhibit "C" to the INCRMP), along with any amendments
and modifications thereto as approved by the State Historic
Preservation Division.
[lam] LL The Planning Director may approve modifications to the INCRMP
conforming to the general purposes of the INCRMP, after
consultation with the DLNR-DOFAW.
[9&.] MM. To ensure that the property will be developed as an integrated
project, the applicant shall establish covenants to all deeds to any
parcels, except parcels to be conveyed to individual residents, that
require a master association to administer the development of the
project district in accordance with the conditions of land use
approvals. The covenants shall give notice that the various parcels
are subject to an overall zoning that requires coordinated
development. Until the master association is formed, the applicant
shall be responsible for ongoing duties such as the management of
the Dry Forest Preserve Area and other stewardship duties, and for
contingent project responsibilities. After the formation of the
master association, those responsibilities, except for offsite
infrastructure requirements, shall be transferred to the master
association.
[P?-.] NN. The applicant shall make its fair share contribution to mitigate the
potential regional impacts of the property with respect to parks and
recreation, fire, police, solid waste disposal facilities and roads.
The fair share contribution shall become due and payable on the
sale or lease of residential units subject to such contribution. The
fair share contribution shall have a maximum combined value of
[$6,411g] $7,383.36 per multiple family residential unit
([$9,°�9°1.20] $11,506.13 per single family residential unit). The
total amount shall be determined with the actual number of units
according to the calculation and payment provisions set forth in
this condition. The fair share contribution per multiple family
-20-
residential unit (single family residential units) shall be allocated
as follows:
1. [$3,162.49] $3,642.00 per multiple family
residential unit ([$4,Q�� °93] $5,548.46 per single
family residential unit) to the County to support
park and recreational improvements and facilities;
2. [$99:95] $115.11 per multiple family residential
unit ([$232.42] $267.66 per single family residential
unit) to the County to support police facilities;
3. [$307:46] $354.08 per multiple family residential
unit ([$459:06] $528.66 per single family residential
unit) to the County to support fire facilities;
4. [$137:04] $157.81 per multiple family residential
unit ([$200981 $231.45 per single family residential
unit) to the County to support solid waste facilities;
and
5. [$2,704.31] $3,114.36 per multiple family
residential unit ([$4,28082] $4,929.90 per single
family residential unit) to the County to support
road and traffic improvements.
The fair share contribution shall be waived for the
affordable housing units. In lieu of paying the fair share
contribution, the applicant may contribute land and/or
construct improvements/facilities related to fire, police, and
solid waste disposal facilities within the region impacted by
the proposed development, subject to the review and
recommendation of the Planning Director, upon
consultation with the appropriate agencies and approval of
the County Council. With respect to the fair share
contribution for parks and recreation, that contribution for
all residential units will be satisfied when Applicant
-21-
completes and offers for dedication all of the land facilities
for the active use park described in Condition [] "S"
above. The fair share contribution for roads will be
satisfied upon completion of the [Acrid Level Road D ^
"2") A "3 Road "5" and Road "^"] Kamanu Street
Extension (3A)Ane Keohokalole Highway (6A), Kealakaa
Street Extension (7), and Road 1:
[QQ] 00. Should the Council adopt a Unified Impact Fees Ordinance setting
forth criteria for imposition of exactions or the assessment of
impact fees, conditions included herein shall be credited towards
the requirements of the Unified Impact Fees Ordinance.
[RR.] PP. Comply with all other applicable County, State and Federal laws,
rules, regulations and requirements.
[S&.] QQ. An annual progress report shall be submitted to the Planning
Director prior to the anniversary date of the approval of this
Project District Ordinance. The report shall include, but not be
limited to, the status of the development and the extent to which
the conditions of approval are being satisfied. This condition shall
remain in effect until all of the conditions of approval have been
satisfied and the Director acknowledges that further reports are not
required.
[T—T-.] RR. An initial extension of time for the performance of conditions
within the ordinance, [..xeeptfor the six ear time limit on
condition ,".1 O�] may be granted by the Planning Director upon the
following circumstances.
The non-performance is the result of conditions that
could not have been foreseen or are beyond the
control of the applicant, successors or assigns, and
that are not the result of their fault or negligence.
2. Granting of the time extension would not be
contrary to the General Plan or Zoning Code.
-22-
3. Granting of the time extension would not be
contrary to the original reasons for the granting of
the Project District.
4. The time extension granted shall be for a period not
to exceed the period originally granted for
performance (i.e., a condition to be performed
within one year may be extended for up to one
additional year).
If the applicant should require an additional
extension of time, the Planning Department shall
submit the applicant's request to the County Council
for appropriate action.
Should any of the conditions not be met or substantially
complied with in a timely fashion, the Planning Director
may initiate rezoning of the subject area to its original or
more appropriate designation.
-23-
n
A
a
a
C
0
Legend
Concurrency Zone* Proposed Roads*
A Status
y
ConceptKailua
4 ThNk >
••
fay*,-, s♦5.. +<`1x yi:�F 41 -Nit{'
F Neighborhood
G Regional Center
-WV'-
H Kona Urban Area*
!!P
Rural Town TODs*
i
Existing Roadway
K=: pp �4.
�pyy5.i2Y
1 S,l+'hF Yak f:,
y '
1
Policy
e
F
a
EEE=� Miles
y
1 inch equals�
Source:•
\
41
CountyThe of • Department
is the repository of the official map.
Kona Community Development Plan
Figure 4-3
Official Concurrency Map
O
O
Legend
Concurrency Zone' Proposed Roads*
..� A Status
EM --a —(fit
G — Ne -q
p— Fl.
Jim LJ E TOO
F Q NegMwMetl
f 't G Q FeCpr�N Cenlar
�M OkO°°U.pan Nea•
Q� Q ILval lttvn TOOs'
( S � —EuaNM P4sEvaY
N
I� L
M
`Policy Layer
� W Miles
0 0.5 1 2
1 inch equals 1 miles
Source: County of Hawaii.
The County of Hawaii Planning Departmer
is the repository of the official map.
Ni
Keauhou
Rona community u veuwuvi t hart
Figure 4-3
Official Concurrency Map
i
y..
i rtE
k.
Keauhou
Rona community u veuwuvi t hart
Figure 4-3
Official Concurrency Map
O
MAes
ROADWAYLI EN�d�`S CONCEPTUAL
c®+
Sl
f.1- "N'
%
TIN
I "b7lb.
iw�—
U
DA
I
1
R
CD
CD
�•
CD
C
�
�
n
nV
O
O
DA
I
1
R
CD
CD
[07
n
c �
O � N
ooPCD�
¢ CD CD
CDl✓. �®
o cr
0
t k�° i ?if T,- h Vis
DEPARTMENT OF PUBLIC WORKS
COUNTY OF HAWAII 71,99 JIM [ 9 PH LI: 26
HILO, HAWAII
DATE: June 19, 2009
Memorandum
TO: B.J. Leithead-Todd, Acting Deputy Planning Director
Planning Department
FROM: Galen M. Kuba, Division ChiZ/
Engineering Division
SUBJECT: Amendment to Change of Zone Ordinance No. 06-105 (REZ 05-010)
Applicant: Palamanui Global Holdings LLC
Location: Kau, N. Kona, HI
TMK: 3/ 7-2-005:001
We reviewed the subject application and our comments are as follows:
ROADWAYS
We defer to the Planning Department the applicant's responsibility to construct
the required street infrastructure according to the Kona Community Development
Plan (KCDP).
2. We should not allow phased development with no guarantee that required future
infrastructure is technically feasible and environmentally cleared for construction.
Prior to subdivision approval for any phase of the subject development, all
required County dedicable right-of-ways should be secured and graded to their
full build -out width, exclusive of cut and fill slopes. In addition, those County
dedicable roads that are dead -ended for future connections (roads 3B and 5)
should have preliminary engineering for technical feasibility and be
environmentally cleared for construction, a minimum of 500 feet from the subject
property boundary into the adjacent property.
3. Condition V2 (X2) should include the condition to grade the entire right ofw y_-�---
and add, "unless a roundabout is provided, meeting with the approval of the
DPW."
4. We do not concur with the amendment to V5 (X5) that delays the developer 5
4 Z
obligation to construct Road 5 indefinitely and includes no surety. At minim z
the obligation to complete Road 5 should be included with new condition V9 r
Memo to PD- Amend. Ord. 06-105 (REZ 05-010)
r f June 19, 2009
Page 2 of 2
which sets a schedule for construction of Road 1 C. Neither do we concur with the
classification of Road 5 as a "minor street". Please see KCDP figure 4-2a which
classifies this road as a "minor collector." We concur with the KCDP
classification.
5. We question the applicant's amendment in Condition V8 (X8) to omit the
condition to construct the intersection of the main project road with the Queen
Kaahumanu Highway.
6. Replacement of Condition X9 with new condition V9 deletes the requirement to
bond the improvements for Roads 3 and 5 to assure construction within a
specified period of time. However, the applicant replaces that condition with new
conditions V9 and V10, and obligates construction of Roads 1 B, 3A and 3B with
the timing for Road 4, or concomitant with adjacent development, without the
requirement for bonding. See comment 5 above for our discussion on this
change for Road 5. At minimum, the obligation to complete Road 5 should be
included with new condition V9 which sets a schedule for construction of Road
1 C.
Inclusion of the qualifier "collector' in the applicant's new proposed Condition
V10 (b) may be unclear.
8. The applicants proposed Condition V11 and the corresponding deletion in
proposed Condition RR (TT) allows delay of construction of Road 4 indefinitely.
The applicant should be required to submit justification for the bond amount of
$10M in Condition V11.
9. We find no requirement to dedicate Roads 1,2,3, 4, or 5 (1A, 1 B, 1 C, 2, 3A, 313, 4
or 5) in this ordinance. We assume this is an oversight that should be corrected.
In addition, Condition NN (PP) should add the words "and dedication" after
"completion" in the second paragraph.
TRAFFIC
Unless superceded by prescriptive KCDP concurrency requirements, the applicant
should be required to submit an updated Traffic Impact Analysis Report (TZAR)
prepared by a licensed professional traffic engineer, and provide all improvements in
compliance with the Hawaii County Code Section 25-2-46 - concurrency requirements,
for any phase of development.
Should there be any questions concerning this matter, please feel free to contact Kiran
Emler of our Kona Engineering Division office at 327-3530.
KE
copy: ENG-HILO
PLNG-HILO/KONA
Hawaii County is an Equal Opportunity Provider and Employer
June 2009
Summary of Palamanui's Requested Amendments
to County Zoning Conditions
Palamanui is committed to assisting the University of Hawaii in establishing the West
Hawaii Center as part of its commitment to the community. In order to do so, Palamanui
must not only build the first University building, but must also build the roads, public
water, electrical and waterline improvements to support the University. Changes iu
economic conditions have made the planned financing for the initial phases of this project
unavailable. That financing was dependent on a strong demand for residential units. In
the absence of such demand, Palamanui must be able to proceed with commercial as well
as residential components of the project to generate the cash flow needed to support
initial financing.
Palamanui has also found that some of the conditions that were intended as security lot-
performance
orperformance of conditions have impaired its ability to obtain financing. Modifying these
requirements will make it possible to move forward with the improvements needed to
support the University and get the overall project moving.
We are asking for the following amendment of conditions to allow us to move forward:
Application I is a request for amendment to certain condition language contained in
Palarnauui's current "Project District" zoning Ordinance No. 06-105, which was adopted
by the Hawaii County Council in 2007. (REZ 05-010)
A. Commercial Condition Items
1. Condition "'N" mandates a mix of residential and nonresidential units
developed with a requirement of one residential unit per 600/sf of
commercial building. We are requesting deletion of this condition, as the
timing of such a condition is problematic to sales absorption of
commercial property given the weak residential market.
2. Condition "Q" reads as follows: "No retail commercial structures may be
located closer than 1,500 feet from the Queen Kaahumanu FIighway right-
of-way." We are requesting deletion of this condition as Palamanui has an
800 -foot buffer fronting Queen Kaahumanu Highway; which will
effectively protect the open space ambiance of tile region.
t „9 Ku,hm.K, i Ihi% 94 "1'I�on�: ._'•!i. u.itl::r t i�? �'
B. Road Conditions.
The current ordinance language requires both offsite and onsite roads at
Palarnanui to be "bonded" and constructed by the developer early in the project
schedule. Palamanui is requesting this condition be modified to allow installation
of the roads when they are needed:
1. Construction of the initial road (to be designated Road IA) will be
completed prior to issuance of a Certificate of Occupancy for any building
within Palamanui.
2. Roads to be designated Roads 1B, 1C, 3A, and 5 will be completed as
Palamanui develops.
3. Road 2 will be completed before occupancy of the first Palamanui single-
family residential home.
4. Road 4: Modify the condition as follows:
Applicant, Palamanui, shall continue preparatory work for design of Road
4 including working with the County of Hawaii to secure the right-of-way
for Road 4 across State of Hawaii lands and providing information
necessary for the County of Hawaii to arrange the right-ot=way over
privately owned lands. As pail of the preparatory work Applicant will,
after obtaining necessary approvals from the affected landowner, "pioneer
the center -line" of Road 4 on the ground no later than June 1, 2011.
Applicant shall complete Road 4 by the later of the date that the County
obtains the right-of-way for Road 4 and the date that Applicant receives
the 600'' building permit for the residences in the Project. If third party
funding for at least 50% of the construction cost for the segment of Road 4
that is not within the State of Hawaii land is then available, Applicant will
fund the remainder of the construction cost and complete Road 4 before
the building permit for the 401S1residential unit in the Project is issued.
The improvements for Road 4 shall be secured by a $10,000,000.00 bond
or other surety meeting with the approval of the Planning Director to
OL that the improvements will be completed as required by this
ordinance. The bond or other surety shall be made prior to issuance of
Final Subdivision Approval for any subdivision in the Project containing a
single-family residential lot.
Palamanui is not requesting a change to ordinance condition X-1 1 which
states: "Makalei Drive is a "minor road" and will not be open to the
public until the Collector Road 4 is open for public use."
C. Public Park.
1. Replace the requirement in present Condition U for development of the
20 -acre active park site by occupancy of the first residential unit on the
property with a requirement that the development be done prior to
issuance of the 101` single-family residence building permit.
Application II is a request for change of zoning in the Makai section of Palamanui (see
attached maps). Within the 70 acres, which we are calling the "Palamanui Business
Park", we are asking that 29.920 acres be changed from Project District (PD) zoning to
MCX-20. This change, if approved, would allow a portion of the Business Park to be
occupied by distribution and wholesale uses in addition to the mix of commercial uses
permitted under the overall Project District zoning. (REZ 09-000094)
In these tough times approval of these requested changes will allow Palamanui to proceed
with the construction of the University of Hawaii West Hawaii Center and infiastructure
to support it.
For further information contact:
Roger Harris, ph: 987-5182 or 325-0700 (email: rharris mdtnhawaii net)
Guy Lam, ph: 960-148; m 325-0199 (email: lamlh)aloha.net)
Thank you
Maps attached
194.42 FT. NORM
1956501 FT. HEST om
OPS, 8EP: 'ANAP1PVU' A-500a
y 109.49 FT. 11041N /
18804.22 FT. N£ST / A-SIXb A °
R� uArrPUU' INDUSTRIAL—COMMERC I
tdIXED DISTRICT MCX
/ 29.920 Acres
� A-SOAK
1
no
m WEN
a 1 _
de G
a o
PROJECrT DISTRICT PD I th ". /
695.282 'Acres I _ i—
OFcEV Afs�r / J/ a-.w E�.
c-Tol ( M1NgNr
'.a-5° "Lu
t C bcq
cpfN
A s
OPEN A-5o
AMENDMENT TO THE ZONING CODE
AMENDING SECTION 25-8-3 (NORTH KONA ZONE MAP)
ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE
9983 (2005 EDITION), BY CHANGING THE DISTRICT CLASSIFICATION
FROM
PROJECT DISTRICT (PD)
TO
INDUSTRIAL-COMMERCIAL MIXED DISTRICT (MCX)
AT KAU, NORTH KONA, HAWAII
PREPARED BY:
PATTISON LAND SURVEYING, INC.
73-5618 Maiau Street, Unit 6104 . Kallua Kana, Hawaii 96740
TMK: 3 7-2-005:001 or. Phone 327-9439 • Fax 327-9443 • Cell 960-4005
O P DATE: FEB 18, 2009
Roadway Alip meals
Conceptual
2009
LEEWARD PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
JUNE 30, 2009
A regularly advertised hearing on the applications of PALAMANUI GLOBAL HOLDINGS
LLC (REZ 09-94 and REZ 05-010) was called to order at 10:00 a.m. in the Sheraton Keauhou
Bay Resort and Spa, Keauhou Ballroom, 78-128 ' Ehukai Street, Kailua-Kona, Hawaii with
Chairman Rodney Watanabe presiding.
PRESENT: Rodney Watanabe
Brandi Beaudet
Lani Bowman
Geraldine Giffin
Frederic Hensel
Wayne lokepa
Warren Lee, Public Works Director— Ex Officio Member
Bill Brilhante, Deputy Corporation Counsel
BJ Leithead Todd, Planning Director
Jeff Darrow, Staff Planner
Maija Cottle, Staff Planner
Bennett Mark, Planning Program Manager, Kona Office (left at 12:10 p.m.)
Deanne Bugado, Planner, Kona Office
Merrick Nishimoto, Engineering Division, Department of Public Works
And approximately 30 people from the public in attendance
APPLICANT: PALAMANUI GLOBAL HOLDINGS LLC (REZ 09-94)
Change of Zone from Project District to Industrial -Commercial Mixed — 20,000 square feet
(MCX-20) district for 29.92 acres. The property is part of the proposed Palamanui development
located northeast of the Kona International Airport at Keahole, between Queen Ka'ahumanu
, Hawaii, TMK: 7-2-S:portion
Highway and Makalei Estates Subdivision, Kau, North Kona
of 1.
APPLICANT: PALAMANUI GLOBAL HOLDINGS LLC (REZ 05-010)
Amendment to various conditions of Ordinance No. 06 105, which rezoned 725.2 acres from
Agricultural 3 -acre (A -3a) and Open (0) to a Project District. The property, which is referred to
the Palamanui Development, is located northeast of the Kona International Airport at Keahole,
between Queen Ka`ahumanu Highway and Makalei Estates Subdivision, Kau, North Kona,
Hawaii, TMK: 7-2-5:1.
WATANABE: Moving along we have Agenda Item No. 3, and Agenda Item No. 3 is very
much related to Agenda Item No. 4. It's Palamanui Global Holdings LLC, one is a change of
zone request, REZ 09-94; the other is Palamanui Global Holdings LLC, REZ 05-010, where
there is a request for amendments to some of the conditions. And what we are proposing today
is, since they are so related, that we discuss both the agenda items together. However, we will
obviously make a decision separately on these agenda items. And that should make it a lot easier
for those from the public who have cane to testify; it gives you a little broader range. With that,
let me turn it over to Mr. Darrow.
DARROW: Thank you, Mr. Chairman. Good morning, Members of the Planning
Commission. I'd like to welcome our new members. Commissioner Beaudet and Commissioner
lokepa, welcome. Thank you.
If I can direct your attention to our presentation map. The agenda item No. 3, our applicant is
Palamanui Global Holdings LLC. They are requesting a change of zone from Project District to
Industrial -Commercial Mixed 20,000 square feet for 29.92 acres of land. The location of the
application is within North Kona District. More specifically we are looking at in the area of the
Keahole Airport, which is located to the west of the project site. We have Kaiminani Drive that
is to the south of the project site. The actual project site itself is identified with a black outline,
and has a purple color for the zoning of Project District. Just to the east of the project, or mauka,
we have Makalei Estates Subdivision, and it is identified as Agricultural 3 -acre zoning. We have
Queen Ka`ahumanu Highway that is running in a north -south direction, that is located on the
west side of the area. The actual 29.92 acres is located in this area on the Project District area
that's owned by Palamanui. This is the area that the applicant is asking for the change of zone
from PD to MCX. The applicant is requesting this rezoning, which is part of the 70 -acre area
titled "Palamanui Business Park" under their Project District designation. The reasons for the
request is that they want to be able to allow wholesaling and distribution uses, which the Project
District does not permit as part of its permitted uses. The Project District will, the project will
consist of 35 lots ranging in size from 20,000 to 62,000 square feet, and they will sell or develop
into uses permitted under the MCX zoning. Additionally, it will consist of distribution and
wholesale uses as well as retail and office uses on this site. Lastly, it will be a mix of buildings
from 5,000 square feet to 40,000 square feet; these are the sizes anticipated.
The Director is recommending that a favorable recommendation be forwarded with conditions to
the Hawaii County Council. If we can go ahead, we can go right into -.
WATANABE: Please.
DARROW: Item No. 4. If you could give me just one minute. Thank you, Maija.
Agenda Item No. 4, our applicant is again Palamanui Global Holdings LLC. They are asking for
an amendment request to various conditions in Ordinance No. 06 105, which originally rezoned
the area, rezoned 725.2 acres from Agricultural 3 acres and Open to a Project District. Again,
the location is identified by a black outline, and this borders Queen Ka`ahumanu Highway to the
west as well as Makalei Estates Subdivision to the east.
The applicant has submitted an overall project map, which gives us a general layout of the
Project District. Up on the upper portion of the map we have a dry land forest preserve. There is
a road connection to Makalei Estates Subdivision to the mauka side of the Project District that
runs through; this is identified currently as Road 1, but as we get into the amendment, there are
some changes to the name of this particular road. Additionally, there're residential villages
2
M
identified. There's the University of Hawaii West Hawaii Center to the south side of the
Project District, and it's a part of this actual project. The town center is located just about the
middle of it, the Project District. There is a community park planned for this project, and it's
identified in the conditions. The 70 -acre, approximately 70 -acre Business Park is located to the
makai side of the project, and again the connection to Queen Ka`ahumanu Highway on the makai
side of the project.
Here is an aerial photo map. It's a little stretched out, but it maybe a little easier to see. We
have Makalei Estates up there to the mauka side. We have Queen Ka`ahumanu on the bottom.
The main reason for this map is to show, identify the different roads that are being requested in
the amendments. A little closer view of those roads. And we'll be probably referring to these as
we continue on.
The reason for the request is that conditions within the ordinance have impaired the applicant's
ability to obtain financing for the project and to support the University of Hawaii. The applicant
is not requesting the following amendment: an amendment to Condition XI 1, which states
"Makalei Drive is a `minor road' and will not be open to the public until the collector Road 4 is
open for public use"; this is not being requested as an amendment. The applicant is requesting
amendments to Ordinance 06 105 to allow a change in the timing of construction for the
Palamanui project including the development of the commercial component before the
residential units, construction of roadways as the project develops, inclusion of $10,000,000 in
bonding requirement for Road No. 4.
The Planning Director's recommendation is a favorable recommendation to the Hawaii County
Council, except for the $10,000,000 bonding requirement for Road 4 as proposed in a new
condition X 13. The Planning Director recommends retention of the existing language with no
specific dollar amount. Thank you.
WATANABE: Thank you. Yes, something to add?
LEITHEAD TODD: Yeah, there was one other thing, is that I think in our communications to
you indicated that the comments from the Department of Public Works were not received in time
for us to incorporate into our recommendations, so those recommendations have been
transmitted to you. And Mr. Lee is here as well as an engineer from Public Works, so when we
actually get to the subject matter, we would want to incorporate some of those comments from
Public Works into the conditions.
WATANABE: Thank you.
DARROW: Mr. Chairman?
WATANABE: Yes, Mr. Darrow.
DARRO W: Thank you. Including the comments from the Department of Public
Works, we have received an update to the updated Traffic Impact Analysis Report; this was just
submitted on June 23, 2009, from Austin Tsutsumi & Associates Inc. civil engineers. All these,
the following should have been passed out to the Commissioners: the Public Works comment
R
letters for both the change of zone and the amendments to the Project District. We've received
comment letters from the public from Mike Fujimoto, Virginia Isbell, Richard Fucik, Stephen
Lopez and the Kona Kohala Chamber of Commerce, which we just received this morning, and
again those all should have been passed out to the Commissioners. Thank you.
WATANABE: Thank you. Fellow Commissioners, do we have any questions of staff? It
doesn't look like it. So may I call up the representatives for Palamanui? Before we begin with
your testimony, let me swear all of you in, please. So would you raise your right hand? Do you
swear or affirm to tell the truth now before the Planning Commission?
APPLICANTS: 1 do.
WATANABE: Thank you. And would you all introduce yourselves? We need your full
name and address for the record, please, and then we can begin the discussions.
OKAMOTO: Okay. Good morning, Mr. Chairman and the members of the
Commission. My name is Alan Okamoto. I'm the attorney for Palamanui Global. My address
is 187 Kapi`olani Street, Hilo. And with me today are Mr. Roger Harris, the project planner -.
HARRIS: Yes. Roger Harris. My address is 66-1452 Ko Uka Place, Kamuela,
Hawaii.
OKAMOTO: And also with us are the, is Mr. Guy Lam, principal of Palamanui, and Mr.
Steven Colon who is representing the other principal, Hunt Development.
LAM: Guy Lam. Lot 2, Waiki`i Ranch.
COLON: Steve Colon. 115 Kaapuni Drive, Kailua.
WATANABE: Thank you. Okay. So who's going to be speaking? You would be
speaking first, Alan?
OKAMOTO: Yes, I will speak first. And since that aerial is up, then I'll also begin with
the aerial to orient the Commission as far as the roads and what we are specifically requesting.
As I understand it, we are addressing both Agenda Items 3 and 4. So I'll be speaking for a while.
And the objective is when you look at the words in the ordinance, they're hard to follow. I
understand that. We had a struggle getting this done. So what I'm going to try to do is tie what
we wish to do with the words in the ordinance. But initially I think we need to set a little
background for this Commission. We are asking for the changes to the ordinance because what
we have is an unprecedented situation as far as the residential real state market. It's very weak.
It will not, it doesn't resemble anything we looked at when the zoning was first done. So what
we are trying to do is work something so that we can begin the construction of the initial
improvements for this project. Because of the way we've set the project up, we believe this will
benefit the West Hawaii community.
And one of the things that is involved is, this is proceeding to make possible the relocation of the
University of Hawai`i's West Hawaii Center. What is part of the plan -. And please understand
V
the university site is being developed as a University of Hawaii project; Palamanui is supportive
of it, but this is a university site. It is State land. We will contribute to putting a building up, but
the University is in charge. In order to do that, well, I'm sorry, by doing this we're going to
allow the University to relocate from Kealakekua into hopefully two buildings, which will have a
lot more room than they have now in Kealakekua. The location as the University has identified
is also a much better location for their operations. The zoning ordinance requires, and we are
fine with it, that Palamanui contribute $5,000,000 to the initial building for the site. I understand
the University — and Chancellor Freitas is here today — has secured some additional funding, so
they can go further than we had thought back in 2006. In order to make that possible, we need to
put in new roads and infrastructure which will service both Palamanui and the university.
One of the major items, Palamanui is participating with another owner to develop a water
system. It starts up in Makalei Estates, which is actually above that map area, will come down
through this project, will cross -connect to service the university, keep going down until we
connect with the north end of the Water Supply system on Queen Ka`ahumanu Highway. This
will give the Water Department a lot more flexibility. It will make possible the completion and
occupancy of the university buildings. Right now we are looking at $6,500,000 to do that
component alone. That is Palamanui share; the other owner is picking up another half, roughly,
of that cost.
The sewage treatment plant will be located on the Palamanui site. It will service the university
buildings as well as the Palamanui project. Initial cost is $1,000,000.
And then we end up having to build roads, initially 1 A and Road 2, if this request goes through.
And that's another $9,700,000. So at this level Palamanui has a minimum commitment just for
these roads, not the ones to create the subdivided lots, that commitment is $22,200,000. And if
we can proceed, this is going to provide some much needed jobs in West Hawaii. This
construction is slated, if we can get the amendments. We'd like to start this year and keep going
for a couple years until it's done.
And we weren't quite sure how to address this. I know there have been a lot of questions about
the road, but I'd like to talk a little bit about the MCX zone property first cause that, that really is
the heart of our request. Right now the demand for residential property is very, very weak. That
was what we had counted on when this whole project was planned. There is a demand for
commercial property, but part of that demand involves wholesaling and distribution activities, as
Mr. Darrow referred to in the staff report. Those activities are not permitted uses under any use
in the Project District. They are permitted in the MCX district, and that's why we've asked for
this change. The 29.9 -acre area is within the 70 acres down there; we are not asking for any
additional commercial uses. We just want that reclassified from a PD to an MCX zone, so we
can market those units to businesses here.
Now, as far as the road situation is concerned, what we started with initially were five numbered
roads — I through 5. No. 1, as you can see on the map, actually has become three segments. But
it ran from Queen Ka`ahumanu Highway on the makai end and eventually comes up and would
connect to the Makalei Drive, the Makalei Estates Subdivision road. Road 2 is a connector from
Road I in the university area, and then goes south until it connects with Kaiminani Drive. Road
3, up there where Roger has a pointer, is a lateral road within Palamanui that is going to connect
5
I-
to Road 4. Road 4 is off this property; it's on State land and on land that is now owned by the
Gramercy Corporation. That will proceed mauka until it connects to Mamalahoa Highway.
Road 5 is a short connector that extends from Road I C over until the State land. There is a
parcel of vacant land there that is actually up above the University of Hawaii site, the 500 acres.
As I understand it, there are no current plans to develop that State land up there, but there is a
requirement for that connector road to be in place so that it can connect up to Road IC in the
future. So if we look at what we've got there, what's happening now is, what we would like to
do is construct Road IA and Road 2, a two-lane road going out. Part of that construction
involves the intersection of 1 A with Queen Ka`ahumanu Highway and also an intersection, of
course, with Road 2 with Kaiminani Drive. Those connections will give access to the project
and to the university without forcing traffic through the airport intersection. And as you know,
that's become kind of a critical intersection in Kona right now. The Kaiminani connection will
also allow local traffic to come from mauka down into the University and back without having to
get on Queen Ka`ahumanu.
Under the changes we're requesting Road IB would be constructed once Palamanui starts with
residential construction in that area or when anything above it is developed; in other words we'll
have connectivity right down to Queen Ka`ahumanu and Kaiminani. And for roads above Lot
1 B that is 1 C, 3A, 313, 4, the critical conditions, what we look at is what happens with Road 4.
For Lot IC, there're rally two things going on: That road has to be built when Road 4 must be
built to maintain the connectivity, and it has to be built before the 250`" residential building
permit. That change reflects our reality; we need to have some cash flow in order to make all of
these improvements.
As Mr. Darrow noted, we are not asking for the deletion of the condition that says that Makalei
Drive connection is not to be open until Road 4 is open. That condition I think is now X12, and
that should remain in the ordinance. So for Road 4 Palamanui will continue with design work,
and work with the County on the acquisition of rights-of-way for Road 4. As we said, the mauka
segment of that is privately owned. It was owned by Lynch Investments and that was foreclosed,
and so the current owner is Gramercy. And there have been discussions with Gramercy about
the acquisitions of rights-of-way and what they intend to do with the property. Our request for
the new deadline for the completion of Road 4 is after the County has the right-of-way and by
the time Palamanui has its 600`h building permit. This project allows just over 1,100 units, so
that's a little bit passed the half way point as far as this project is concerned. Alternatively, if
there is funding, let's say the Gramercy people come forward with at least 50 percent of the
construction cost for the road within the Gramercy property, then Palamanui is going to have to
make its share by the 400`x' building permit because we'll have less cost we'll have to absorb for
that road.
Okay, now, we had also requested a little more certainty in the bonding and surety requirement;
we had asked that we just set the amount at $10,000,000. As Mr. Darrow has indicated, the
Department has concerns about that, and we can understand the concerns. What is critical to us
is that we would be able to work on providing some reasonable way to give the security, and we
are prepared to work with the Planning Department on that.
6
The changes I've described don't involve the County releasing Palamanui from any of the
conditions. These are really, for the roads, these have to do with getting the deadlines tied to
residential development, which is really the heart of this project.
We have submitted an updated traffic report. Until we can get Road 4 in place, we have ample
capacity on the road connectors to handle this project. By the time we hit the 600`x' unit, we're
still going to have that capacity to provide adequate access in and out of the project. Our traffic
analysis has not relied at all on any access through Makalei Drive. So in terms of the project up
to 600, we should be okay as far as access is concerned.
We have requested that some conditions be removed that would effectively prevent us from
proceeding with the MCX zone property because those were tied to building permits for the
residentials. Those, we know, must be removed or we can't market those lots down below, and
that is really the cash flow we need to show that we have the ability to take care of the financing
that we need to start this project.
And I believe that's what I have for the initial presentation.
WATANABE: Okay. Mr. Harris, do you want to add to that?
HARRIS: Yeah, I would just like to add one, a little bit of clarification. The project
is the same project that's been since we had the zoning three years ago. Our problem -. And
we've been working diligently on our engineering plans. We have a full roll of plans for the
university complex and the first building that we're going to build. The residential component is
the key, and we are going ahead with the residential component. The reason we want the mixed
condition deleted, Condition N, is that it's just a kind of a practical, technical problem. We have
for instance a market that wants to go in in the village center, right, near the university building;
once we get Road 1 A and Road 2 built, the circulation will be good in there. The condition — is
that M, it's N — says that we need, that's a 20,000 -square foot market, it says we need 30 houses
built at the time before we can build that 20,000 -square foot grocery store; that, we can't promise
that we will have 30 houses built then. So that's the, you know, the link -up that we, it's an
escrow kind of a killer, a lawyer issue, and we need to get rid of that. And the same is true down
in the Business Park; we have a hardware store that would like to go in there, but they can't build
their building unless we have so many houses. And a solar supply store. And a number of other
people who are interested in are mostly local businesses. So we would, you know, we are not
trying to wiggle out of building housing — the key to this project is a mixture of housing,
affordable and all types —but we are just trying to remove those onerous conditions. And the
addition of MCX is the same thing; it allows us to put distribution wholesaling in the Business
Park.
The last point I'll make is that there has been talk that we are asking for changes in setback on
Queen K. Highway, which is not correct. We're just, it's the 800 -foot buffer open space; that'll
remain. The Business Park, as you can see there, the first 70 acres, all we're asking for is that if
you are in there -. For instance, the guy with the solar supply store, he has mostly distribution
and wholesaling; however, he has a good retail business as well as a hardware store, and so for
him to have to push back an additional 700 feet from the 800 and to be retail, that puts him at
1,500, and it's just complicates it for the real world. Basically, it's a business park, it's a mixed
7
use community; there're going to be a mix of commercial and housing programs going on here
and higher education. And we just, since, you know, no developer wants to come and ask for
changes, but since we have to ask for some changes, we are asking to clean up those items as
well. We'll be happy to answer any questions, and thank you.
WATANABE: Does that pretty much conclude your presentation then? And you'll be
open to questions now?
OKAMOTO: Yes, sir.
WATANABE: Okay, thank you. Well, fellow Commissioners, do we have any questions
of the applicant or the representatives?
HOUSEL: Mr. Chair?
WATANABE: Mr. Housel
HOUSEL: Yes. Just to clarify, we are talking about two issues here, or two requests:
one to rezone the part of the Business Park, and the second we've talked about the roads and
everything concerning with the university. In your documentation you are changing the amount
of acres in the Project District, and I just want to clarify that you're removing the 29 acres that
you want to place in the mixed use area, is that correct?
OKAMOTO: That's correct. It's not new acreage; it's part of the Business Park. The
zoning changes from Project District to MCX, but the total acreage is the same.
HOUSEL: Right, right. Now the, I want to understand this carefully that there are in
the original agreement some conditions that you're committed to, to build roads and other things
in the Project District, which were contingent upon getting certificates of occupancy for other
areas. Does that, does this, what you are proposing, remove that business area from those
contingencies now; i.e. if you get, if you build buildings in the business district, do those, and
you get certificates of occupancy, do those, are those contingent on the Project District or
separate?
HARRIS: The overall Project District is 725 acres. The zone change down below,
we were allowed in the Project District 102 acres of mixed commercial. The balance was either
open space or public space and residential, the 1,100 residential. So the conditions that provide
that we need to have a road completed before certificate of occupancy, those remain in effect for
the whole, the whole area and -.
HOUSEL: The whole project.
HARRIS: Yes, and would apply to the MCX as well.
HOUSEL: Okay. So if a certificate of occupancy is issued for any of the buildings
that you build in the Business Park, it will apply to the conditions of the overall project design, is
that correct?
HARRIS: Correct
HOUSEL: Okay.
HARRIS: You know, the Planning Director may want to say something about that,
but basically we have to build Road I and Road 2 before we can get final subdivision approval
or certificate of occupancy in the project, the whole project. Now, of course, for instance if we
want a market in there, we have to have a lot we can put the market on and get a permit,
occupancy for the market.
HOUSEL: Right. What's the current status of the project now?
HARRIS: The current status is we got the zoning three years ago, the Project District
zoning, and we have been working on engineering. We have many grading permits. We've
graded about 100 acres, rough graded, getting it ready for development. We spent virtually the
majority of the last three years working on the plans. We have the plan for the community
college, which is, you know, a condition; we're required to do the plans and build the building,
the first complex. And then the same thing with our engineer for our public park, our roadways.
Road 2, we just got a grading permit issued for that. Anyway, a lot of detail planning and
engineering, and then economic planning, trying to come up with a scheme that makes this fly;
because as we sit here now, we are basically saying we are ready to spend $20,000,000. But we
can't bond and spend in three years from now all the money for Road 4; we've got to defer that,
which is, we can't see that we'll have income to pay ourselves back anyway.
HOUSEL: Is there any utility infrastructure in place now?
HARRIS: There is just a temporary waterline and some temporary roads. But the
plans, the water plans are signed for what we call first package; second and third packages are
just about done.
HOUSEL: I see. Okay, now, you mentioned that you want to develop some of the
residential units first. There're approximately, it looks like, maybe seven or eight residential
areas. Where would you plan to start to build?
HARRIS: What we call the town center, that area adjacent to the community college
building, this area, there's some commercial, the market as I said, and then nearby would be
initial residential.
HOUSEL: Okay. And do you have a time frame that you're planning to do that?
HARRIS: I would say when the, we're working on the plans right now. We have
many different options. When the university is sticking up in the air, we think that'll stimu-, and
the roads are ready to open, we'll build some improvements to our central, central plaza and the
town center, and we think that'll stimulate traffic to come in and look at our residential pads and
models. And when people start buying, we'll keep going.
LAM: Our timing is the first quarter of '11, is what we are looking at
HOUSEL: Okay, for, to -.
LAM: To try and start some residential. You know, we're monitoring the market
all the time to see if, you know, what things are looking like out there, and we're hoping things
will be better by the first quarter of '11.
HOUSEL: Will Roads I A and 2 be complete by then?
LAM: Yeah, they will be under construction and nearly complete.
HOUSEL: Okay, and usable at that time -?
LAM: Yeah, we have to have those roads in to be able to sell the real estate in
that area. That residential area, that yellow right next to IB there, there's about 138 residences in
that area, and that's where we hope to do our first phase.
HOUSEL: 1 see, okay. Regarding the, 1 remember going to some of the Palamanui
presentations back in 2006 when you were asking for your rezoning, and at that time I recall —
and correct me if I'm wrong — that we anticipated that the university building would be available
for classes in fall of 2010, is that correct?
LAM: Initially, we're still, we're still on that schedule right at this moment. But
we are here for these changes because there are just things that we, we, you know, we're making,
asking for these ordinance changes because we really, really need them to be able to proceed
with the university.
HOUSEL: So is it likely that will happen?
LAM That's our, that's our plan.
HOUSEL: Okay, by fall of 2010.
LAM: Well, we hope to start construction in the first quarter of '10, and probably
available for classes in the mid -'I 1.
HOUSEL: I see. Okay. Thank you very much.
WATANABE: Okay. Any further questions? Ms. Bowman.
BOWMAN: I have a couple of questions. Are you aware, the University isn't kind of
providing housing because it's more of a day -? Do you have any idea?
HARRIS: Yeah, the University has lots of land and many things could go there in the
future. But the initial plan is just to move the student operation that's up at the Kealakekua
10
Shopping Center rental space, and move it down into this permanent facility that we're going to
build and then expand from there.
BOWMAN: So commuter, commuter classes. They will be commuters -.
HARRIS: Yes.
BOWMAN: Okay. And my other question just in Road 4 just for the future when it
connects, the land above, is you said — I can't remember — Gramercy, is that the owner, the other
owners?
HARRIS: Yeah, this is old Huihui Ranch land, and that became then Makalei Golf
Course and surrounding land. And the land on the ocean side, the makai side of Mamalahoa
Highway across from the Makalei Golf Course entry road, that's the private, formerly Huihui,
then it went to Makalei, then it went to Lynch, then it went to Lynch's lender, Gramercy. So
we're communicating with Gramercy. They've been here.
BOWMAN: Yeah, I'm just looking at the map with the connector all the way to
Mamalahoa, and so they own basically all that land; they are the other major landowners. Just
for clarification -.
HARRIS: Correct. There is some State land. If you look at those lines, there's a -.
BOWMAN: Okay. Yeah, there is something here but I cannot read it. I think it -. So
they, you and those landowners would be responsible for that connector road.
HARRIS: Yes. And what happens, this is State land right here and State land here.
This is the Gramercy fee simple land. This for instance, Road 2 goes over State land as well. So
we, we, you know, the master plan and the Kona Community Development Plan call for those
roads to be built.
BOWMAN: Okay. And just one more, I guess, comment. I don't know if you
received it, but we just got a letter from PATH regarding bicycle, and I just looked at it, you
know, access, public access, and I know if it's going to be University area, I'm just thinking this
would be really nice to include, if some of your idea is maybe the housing, I don't know if you
have multi -residential housing near there that would be good to have these bike paths.
HARRIS: We have bike paths everywhere. This is a huge trail friendly -. We've
dropped a golf course and picked up the trails and bike paths.
BOWMAN: Okay, thank you.
WATANABE: Any further questions from Commissioners? Well, I'd like to thank you
for clearing up some of the maybe controversial issues with regard to the timing, what you are
trying to get out of; mainly that is being, you know, the tying to the residential and commercial
units, yeah, and the fact that, you know, you will be building IA and Road 2 almost immediately,
right? I think that that certainly helps. And also the Makalei issue cause I'm sure we're going to
11
have some testimony along those lines. And with that, maybe what we can do, if there are no
further questions from the Commissioners, you may be sea-.
HOUSEL: Mr. Chair?
WATANABE: Yes, Mr. Housel.
HOUSEL: I have a couple of more questions. Sorry to interrupt you.
WATANABE: Sure. Mr. Housel.
HOUSEL: The, the State said you're building around 1,100 homes or little more than
that, is that correct?
HARRIS: Right. Yes, sir.
HOUSEL: Now how many of those will be single family?
HARRIS: We are not sure, but around two thirds probably -.
HOUSEL: Two thirds would be -.
HARRIS: A little, 50 percent to two thirds.
HOUSEL: Okay. One of the conditions is the completion of a single family home, so
would you typically start to build single family homes or would -?
HARRIS: Yes. We're going to start with single family and attached, both, both, and
we will have -. The condition says the approval of a subdivision containing single family lots.
That's a real big, big phrase in our ordinance. And what it means is really any residential
development, well, it means a single family lot; however, you have to, we have to create a
residential lot to put, say, a four-plex up as well.
HOUSEL: Right. I'm looking through the conditions here and I'm not sure I see .
where, where Condition, excuse me, Road 1B will be completed.
HARRIS: It's generally described as development is, as required, but it's still, we
have to complete IB before we can work on 1 C, and 1 C has to be completed by building permit
No. 250.
HOUSEL: Right. Does Roadway IA go beyond Road 2, the intersection?
HARRIS: It goes just a little bit passed up to cover the back entrance to the
community college basically.
HOUSEL: I see.
12
WATANABE: Mr. Housel. I think, and maybe you can correct me, Mr. Harris, but I
think in order, by what they described where the location of the first residential development, it's
above Road 1 A, so 1 B would have to be done before they could actually start selling any
residential lots -.
HOUSEL: Right.
WATANABE: Is that correct? Pretty accurate?
HARRIS: Actually there is a connection right here into the residential and
commercial that could service the first residential. So IA goes up to the back entrance to the
community college, and just gets us to a corner of residential. So it opens up, when we build
Road 2 and Road IA, we have opened up some commercial property and residential property,
and that's the intent.
HOUSEL: Okay.
HARRIS: And then Road 2, or Road 1B in going up will just open up more.
HOUSEL: Right. Well, it almost seemed like you have to do 1B to open up that
residential area.
HARRIS: Yeah, if they really get going, we do.
HOUSEL: Right, right, right. Now, is your plan, if this is approved to — you have
demand to build in the Business Park area — is your plan to do those, build concurrently in the
Business Park and the residential?
HARRIS: Yes, sir, absolutely.
HOUSEL: Okay, okay, along with the roadways I A and 2 at the same time.
HARRIS: Yes, sir.
HOUSEL: Okay. Is the building for the university, is the plan complete for that? Is
the design complete for the building -?
HARRIS: No, it's not complete. But it is, after many, many months, the footprint
plan, the floor plan and the phasing plan is complete. We have a set here. We have a -. And
Chancellor Freitas is here. He and Guy Lam are the key owner reps on the architecture team.
And it's going to be an energy efficient building.
LAM: Right now, the University is looking to do a LEED Platinum building,
which is going to be the only second one in the United States. We had meetings recently with
the consultants. In Honolulu today they are having a big LEED seminar on the project. We have
requested that the architect have the plans ready for a building permit by the first of September.
13
So we will submit for a building pennit by the first of September, and as I said, we hope to get
going before the end of the year.
HOUSEL: So it is ready as soon as -.
LAM; It's, it's in progress.
HOUSEL: Okay.
LAM: They've been contracted and daily they are working on the plans.
HOUSEL: Okay, thank you very much.
WATANABE: Is that it? Any further questions of the applicants? If not, then you may
be seated. And we'll go into public testimony. You know, there are quite a few people signed
up for this. Maybe what we can do is take five minutes, and then we will reconvene for the
public testimony. So let's take a break now.
RECESSED The Chair called a recess at 10:45 a.m
RECONVENED The meeting reconvened at 11:00 a.m.
WATANABE: We are now on the public testimony section. I have three lists here. Let
me remind you that we are combining the discussions for Agenda Items No. 3 and 4. So there's
some redundancy in that some people signed up for 3 and then signed again for No. 4, but I'm
going to only call up on you once, yeah? And I'll just call them up in the order that we have
them that the people signed up. And I'm going to ask you, because we have quite a few people
who want to testify and, you know, we are also going to have the Commissioners, afford the
Commissioners an opportunity to ask you questions, I'm going to ask you to please be concise,
keep your testimony to approximately three minutes, so that we can get everyone through this.
And I do want to remind you that we do plan to break for lunch, yeah, today.
Now, there was some confusion earlier because Mr. Darrow I guess mentioned that there were
letters that were circulated this morning; and I believe there are some people from the public in
the audience that felt that maybe their earlier submittals were not included within our material.
But I want to assure you that we did get all of the communications that had come up prior to this
as well as those that came up only recently. So we do have all of the communications.
With that, maybe we can call up — let's see — Jeff Sucher, Pete Hoffmann, Rockne Freitas and
,Tim Lally. Would the four of you come up, please? I'd like to swear you all in. Please raise
your right hand. Do you swear or affirm to tell the truth now before the Planning Commission?
TESTIFIERS: Yes, I do.
WATANABE: Okay, I guess we can start in this end. And before you provide your
testimony, would you for the record provide your full name and address. Could you speak into
the mike, sir? Thank you.
14
LALLY: Yes, my name is Jim Lally, and I live at 68-1050 Mauna Lam Point, D304,
Kamuela, Hawaii.
WATANABE: Thank you. You may begin your testimony, Mr. Lally.
LALLY: Okay. I haven't done a testimony like this before, so I'm a little bit
nervous; so 1 thought I would just tell you that. I'm here speaking on behalf of the Hawaii
Community College at Palamanui. So I'm here to speak in support of the amendments that were
requested by Palamanui. And I think many of the people here are responsible for the
development of the community college plan over the last X number of years, and I'd just like to
thank everybody here in the room and everyone in the community who's helping to work on
getting our community college built for us here.
And most of you are aware of the impact that a 13`' year of education has on a student or a
resident of the community. And this was a study that was done by the federal government, and
was very, very well summarized by Earl Bakken and Sharon Vitousek in terms of the impact.
And in summary, to keep things brief, basically it says that if someone goes a 10th, or a 13`h year
of college, they'll make 30 percent more money during their lifetime; that's sort of an expected
result as far as I can tell that you should expect to make more money, if you go to school. But an
unexpected result is that you actually live seven years longer; so the life expectancy of a person
that goes to a 13`h year of school is seven years longer than it is without it. So you can get an
appreciation for how incredibly important just a 13`h year of education is for our keiki. And if
you look at the statistics for us here in West Hawaii, basically eight percent of our students go
onto a 13`h year of education. And for the State, it's significantly above 25 percent. And you
can see that there is a huge discrepancy between us here in West Hawaii and the rest of the
State. And it's strictly because of the accessibility of a community college. So it's a vital
importance to us here in West Hawaii to make sure that the community college is built. And
Palamanui, the commercial development, was the spark plug that re -ignited the community
college development plan. I've been working, and really not getting much acceptance in terms
of having the community college plan move ahead. So for 15 years it's basically been dormant
until the spark plug Palamanui came along. Rockne and Palamanui together worked out an
arrangement where they would help finance the construction of the first building and putting in
the infrastructure for the community college. And that's the spark plug that got everything
moving; nothing at all was happening. And so what's transpired is we made, we've really made
great strides in terms of getting the community college planned. The community college itself is
going to be a beacon for us here in West Hawaii; it's not going to just service the students but
it's going to be a beacon for West, for all of us here in West Hawaii.
In terms of environmental sensitivity, as Guy Lam pointed out, it's going to be a Platinum LEED
building. It's going to be beyond that, though; it's going to be a Platinum LEED campus. And
that's the second one, the second Platinum LEED campus in the country. And we are actually
taking a step beyond that, and we are committed to snake it a zero carbon footprint campus. And
being a zero carbon footprint campus it'll be the first one on the planet in terms of showing the
way in terms of what has to happen with educational construction in the 2010`h. So I'm very,
very pleased with what's happened in that area.
15
But even more important, even more important to me than that is the heart of the campus, and
part of the fundraising that we are doing right now is to raise funds to make sure there won't be a
single student or a single person in West Hawaii that doesn't go to the community college
because of a financial problem. And so by that what I mean is that we are going to pay the
tuition for anybody that can't afford it, and that applies to every single person in West Hawaii
that wants to go to the Hawaii Community College at Palamanui. So I think that the, that the
campus, the college, the whole concept is, is so important for us here.
As I said, we've made great strides over the last 18 months in terms of getting the campus plans
and programs together. We've raised over $12,000,000, and we need roughly $14,500,000 to
complete the first building. So we only need $2,500,000 to complete the construction of the first
building. And in terms of the fund raising that I'm working on with the business community, the
permanent residents and the part-time residents here, it's really a slam dunk in my opinion for
that to raise that amount of money to complete construction of the first building. But all of that
is contingent upon the infrastructure being put into the campus by Palamanui. So we are wholly
dependent upon that infrastructure in terms of what has to happen for power, sewage, water and
so on, as well as the roads. So if Palamanui doesn't move ahead with the infrastructure
development, we won't have our community college in the time frame that we are looking for,
and that's 2010. We are planning to start construction in the first quarter of 2010, hopefully even
sooner, and have occupancy in 2011. So the time frame is very important. And your approval
on the requested amendments will allow Palamanui to move ahead and put the infrastructure in
probably two to two and a half years before they are able to do any commercial development,
any commercial sales of residential or commercial properties.
So I apologize for taking so long. It's really, really important. Thank you
WATANABE: Thank you. Fellow Commissioners, do we have any questions of Mr.
Lally? Thank you, sir. Mr. Hoffmann.
HOFFMANN: Thank you, Mr. Chairman. I'm also nervous speaking, so please — I'm
sorry. Ladies and gentlemen, thank you for allowing me the opportunity to speak today. My
name is Pete Hoffmann. I live at 68-1783 Lua Kula Place in Waikoloa. I'd like to address just a
few things, and probably preface any comments that I make with the idea of please remember
you may be actually getting something you may not really wish to see happen. You may regret
what you are wishing for.
Here we are again. This is not the first time that we've been treated to the specter of a very good
plan that suddenly becomes perhaps a little bit infeasible because of the economy. There is a
problem with funding. We've heard that from the developers. And I agree. There should be
some changes to this particular effort; we should move forward. But under no circumstances
should we decide to do the extensive changes I think that are indicated in this amendment.
Here is what we have before us. We have a request for a zoning change. The economy is bad
but we want to go ahead anyway, we were told. We don't wish to get out of anything, but we
wish to defer action on more significant items of our plan that deal directly with the community.
Now, we want to defer action on the much needed connector road — obviously Road 4 here. And
we're going to key that in some way shape a form to the idea of the number of residential or
16
units being permitted and built and occupied. We want to expand our commercial area; clearly
that is going to draw us some money. But we're not going to do many of the upgrades that we
need for the community as far as the infrastructure is concerned. And that's understandable in a
way. I'm not particularly opposed to any of those changes necessarily; it's just the timing that I
think needs to be done. Now, we understand the need for the community to have a park facility,
but we wish to defer that. And of course that'll be dependent on the number of single family
residential homes that will be built, and then maybe we'll get around to that. Although you did
hear, of course, that maybe the residential family market would not exactly bounce back anytime
quickly.
Now, I bet you thought I was talking about Palamanui, didn't you? I'm not. History will show
you that approximately twelve years ago Parker Ranch provided the same type of explanation for
their development in Waimea. Take a look at the different zoning changes and ordinances that
were proposed for the Parker Ranch development; and they were almost identical. In fact, it's,
it's scary to see the similarity in this particular application. The result, of course, for the Waimea
community has been some difficulty. We now have construction of the first connector road
allocated in that particular zoning ordinance. But only after an individual resident, a private
citizen, had to drag the County and Parker Ranch into court. And that's only two thirds or one
half of one of the connector roads. And if memory serves me right, since I live in that general
community, we're just now identifying the location for that much needed park facility.
Ladies and gentlemen, my problem is not with the fact that Palamanui is trying to find changes at
this particular time. Changes are needed, I believe. But if we are going to subdivide this
particular development into a commercial and residential aspect or two different portions and
components, and we are going to move full bore on the commercial aspect of this development, I
suggest to you that at least there should be some allocation for the community, some
infrastructure that the community should have. I'm strongly opposed to Palamanui deciding that
they want to defer that park facility for the 101" single family residence. Let's face it, folks; we
may never see that the 100`h and one single family dwelling. We certainly won't see it anytime
soon. Now, we can do better. Please remember what you are wishing for. I don't have, as I say,
much problem with the idea that changes need to be made. But the scale and scope of changes
that Palamanui is asking for clearly is inconsistent with good development with concurrency and
with the community effort. They want to maximize their bottom line. So do I, if I were in their
shoes. I have no problem in seeing that type of expansion, if they will for their commercial
development. But I do have a problem when any development tries to limit, defer, or completely
perhaps eliminate into the distant future needed infrastructure changes for the community. A
great American orator has said before, "It's deja vu all over again." And ladies and gentlemen,
that's exactly what we have here. Don't let this happen. You have a responsibility, as I see it, to
make certain that these changes before they are brought before the County Council are at least
examined in detail and referred and reviewed adequately. I would insist that Palamanui continue
this park facility. Lord knows Kona needs recreational facilities. And it should not be dependent
on single family residential units in that particular development; it has nothing to do with that. It
has to do with the needs of the community. And it's time we finally said, look, this was your
plan in the first place, we want to go ahead and we want to make sure that we are doing the best
job we can. Changes need to be made, but the changes that Palamanui is asking for at this
particular time far exceed those that are reasonable and that should be acceptable to this
community. I'm open for any questions that you happen to have. Thank you very much.
17
WATANABE: Well, fellow Commissioners, any questions of Mr. Hoffmann? I guess
not. Thank you for your testimony.
BOWMAN: I have a question.
WATANABE: I'm sorry. Yes, Ms. Bowman.
BOWMAN: I understand your desire for the community recreational facility and
services. I'm, I'm just wondering, if the park is built prior to residential building and maybe the
connector roads, who would be utilizing that park in your estimation.
HOFFMANN: First of — thank you, Ms. Bowman — first of all, park is not, as I see it,
dependent upon any of the individuals living in that particular area.
BOWMAN: Okay.
HOFFMANN: Kona is so underserved with park facilities particularly in the Kailua-Kona
area. Any park that would be constructed, particularly north of Kailua-Kona, would serve a huge
number of people in North Kona as well as in South Kohala. For instance, just to give you an
idea, I travel almost all the time into Kona to the Old Airport to try to do my recreation with a
softball team. We don't have to do that anymore, if we have that. We cut down on traffic
coming into the community, coming into Kona, and we have a facility that services the much
needed area of North Kona where no such park facility exists.
BOWMAN: Thank you.
WATANABE: Any other questions? It doesn't look like it. Thank you.
HOFFMANN: Thank you.
SACHER: Jeff Sacher. 59-209 Laninui Drive, Kamuela. Good morning,
Commissioners.
A West Hawaii Today article said that the "developer wants changes that would put off building
a connector road between Mamalahoa Highway and its project just above Queen Ka`ahumanu
Highway indefinitely." A spokesman for the developer said, "It's a deferral, not an elimination."
I ask you, how long is this deferral? What guarantees do we have this road will be built? This
road should have been the first thing to go in.
The developer also wants to change zoning of about 30 acres, reduce the setback from Queen
Ka`ahumanu Highway by 700 feet and eliminate the requirement that one residential unit be built
for every 600 square feet of commercial building.
These are all major changes to what was otherwise agreed.
18
The reason given for the change to the residential requirement is that the real estate market won't
support that rate of building new houses. We're told that the developer can't control the exact
pace of commercial versus residential development. The developer says that the time the
conditions were agreed to "the housing market was so strong."
What kind of business plan did this developer have, and what kind of due diligence did the
developer and did you folks perform? Anyone who plans anything with the hope that life will go
according to plan and that the economy will remain stable is a risk. The developer says they
should have made objections back when the housing requirements were put into play because in
this economy those kinds of restrictions become monkey wrenches. Was this agreement made
just to get a foot in the door? What other changes will come? Does this developer not know the
economy goes in cycles?
Apparently, an additional request in the initial letter to the Planning Department to connect roads
within Palamanui to Makalei Drive before the completion of the connector road was accidentally
included. Accidentally included? A project this big accidentally included this? How well
thought out was this plan? What other mistakes are going to show up? Mauka-makai connector
roads are badly needed. And wasn't it known by the developer that this road was going to have
to go in by 2012? Were the financial backers of this development not told of this?
The company says it "doesn't have the financing necessary to build the roads, construct the one
required University of Hawaii at West Hawaii Center building and related infrastructure, and
get started on development to sell all at once. The economy isn't strong enough to drive
significant residential sales." Again, what kind of business plan was there? Who, especially on
a project of this scale, plans on everything going according to plan and the economy staying
vibrant? And in Hawaii no less.
Investors and developers come here to make money. But these ventures are a gamble. They take
their chances. We should not be penalized for their poor planning or unrealistic expectations.
Granted, times are tough. But everyone has to deal with the times through cutbacks, delays and
any other means of staying afloat.
I am against all of these changes because I believe this plan and the financing were not well
thought out, but knowing that we have to work together to make things happen for the best I
believe some strict and unchanging deadlines need to be put into place.
First, because all roads should have been the first things to go in, including the mauka-makai
connector road, that should not be taken off the table. That is a necessity.
Second, the amount of the rezoning that is being requested from Project District to Commercial
Industrial is okay, but it should be a smaller portion than what is being requested.
Third, the public needs to know, and have the opportunity to comment on, the reason for the
reduction in setback from Queen Ka`ahumanu Highway.
19
And finally, since the reason for eliminating the current residential requirement seems to be due
to the economy, it seems fair to extend any current completion dates for the already -agreed -to
number of residential units based on an upswing in the economy.
This developer made a commitment to this county and received permits based on that
commitment, or received the permits to go ahead. A few concessions on our part seem fair, but
total forgiveness on that commitment is one-sided and unacceptable. Mahalo.
WATANABE: Do we have any questions of Mr. Sacher? Seeing none, thanks for your
testimony. Mr. Freitas?
FREITAS: Chairman Watanabe, Director Leithead, Members of the Commission,
Aloha kakou.
COMMISSIONERS: Aloha.
FREITAS: My name is Rockne Freitas. I'm the chancellor of Hawaii Community
College and the University of Hawaii Center in Kealakekua. I'm here to present testimony in
support of Palamanui's request for amendments.
Let me state from the beginning. It is not about several developers making this request; it is
about our partnership making this request. The University of Hawaii has known for a number
of years that tertiary educational opportunities is sorely lacking in West Hawaii. So back in
1982 we offered the first classes here. In '96 the University of Hawaii Center was founded and
housed in Kealakekua. In 2003 the Mitsunaga plan was completed that would have brought
75,000 square feet of educational space to Palamanui. In 2004 I became chancellor, and we also
entered into a formal partnership via an MOA with Palamanui. Now in 2009 we are finalizing
our plans and design for a world-class community college at Palamanui. As you heard earlier,
these buildings will be LEED Platinum and they will also house zero carbon footprint — this is
the first on this planet.
In the interest of time I'd like to summarize. Please support their request. It is not about trying
to get out of an obligation, but due to economic conditions they are asking for reshuffling of the
priorities, so they can move forward to build our infrastructure. And then we can complete our
campus. A vote in support of Palamanui's request is a vote for your community college.
Mahalo.
WATANABE: Thank you, Mr. Freitas. Do we have a -? Yes, Mr. Hensel.
HOUSEL: Chancellor Freitas -.
FREITAS: Yes, sir.
HOUSEL: We certainly share all your concerns about the need for a community
college in West Hawaii. One of my big concerns is the timing of when this community college
will be available, and if the economy does not improve in the near future, how much of a delay it
may cause this community to lose their community college. Do you share those concerns also?
20
FREITAS: On behalf of the Palamanui people, I share those concerns. But we have
secured legislative appropriations to handle our end of the development. Now, that money has to
be released by the Governor as well, but we have secured the legislative appropriations. We do
not have money for the infrastructure, and that's basically what I'm worried about. Now, our
appropriations are only good for three years, and then it'll lapse. And the last thing we want to
do is have money lapse, especially in the down economy; we want to spend the money, we want
to provide jobs for everybody. So if it's not over here, we're going to have to spend it someplace
else.
HOUSEL: Yes. Do you feel comfortable that Palamanui can deliver on your
schedule?
FREITAS: Absolutely.
HOUSEL: Okay, thank you.
FREITAS: Thank you.
WATANABE: Any further questions of Mr. Freitas? Thank you for your testimony. You
all may be seated. And let me go ahead and call up the next four who signed up to testify. I
have Shane Quirit, Steve Hempel, Steven Hempel, Charles Flaherty and Kristine Van Perris. So
will those four individuals come up, please? May I swear you in? Would you raise your right
hand? Do you swear or affirm to tell the truth now before the Planning Commission?
TESTIFIERS: I do.
WATANABE: Okay, thank you. And then maybe we can start with you, Mr. Quirit.
Let's see, please, again for all of you, name and address first prior to your testimony, yeah?
QUIRIT: Shane Quirit. Address 73-1429 Kahakea Place -.
SAUER: One moment, please.
WATANABE: They are trying to adjust the volume on your mike, that's why.
QUIRIT: Shane Quirit. I live at 73-1429 Kahakea Place, Kailua-Kona. I work for
Keauhou Kona Construction. I've been working up at Palamanui, working on the roads, and
going through things with the County. And right now, you know, we had to cut back over, you
know, more than a half of our employees due to slow times, and right now we're just asking, you
know, we get records that they are losing their homes because they are unemployed, getting hard
times on unemployment, just can't make it. So we're asking for your support in some of the
changes that we are asking.
WATANABE: Okay, thank you, Mr. Quirit. Do we have any questions of Mr. Quirit?
Seeing none, thanks for your testimony. I'm sorry, I'm not familiar with your name. Name and
address, please.
21
HEMPEL: Steve Hempel. 72-4084 Ke Ana Wai, Kailua-Kona. My wife and I live in
Makalei Estates, and we've lived there for over four years now. I first want to state we have no
desire to slow down the project, Palamanui. I wish them best of luck and quick success.
Anything that can be done to get them to, people back to work and stimulate the project, I think
that's a good idea. It needs to be investigated and thought through thoroughly. I did submit a
four-page letter over a week ago, which I believe that you all have copies of and been able to
read about my concern about the timing of the project. Obviously the economy has taken a
downturn and they're requesting an extension of some of the requirements. I believe a time
extension is within reason from the standpoint things aren't going as well. I do believe that the
conditions set forth should remain as were agreed upon by everybody. That's why the project
has been in existence and has been able to get to the stage that it has.
My main concern now is how the project will be affecting Makalei Estates and the traffic. That
was a major issue three years ago when it was approved, and the construction of Road 4, the
connector, was a major importance. I appreciate the fact that Palamanui has come forth and
stated that Makalei Drive will not be connected to Palamanui until Road 4 is accepted; that's a
major relief. However, you know, with the history of what's happened around here, I think we'd
feel better with some reassurance as to keep the road closed until such time as those requirements
have been met. And by that, one of the phases for the development for Palamanui is to continue
the water system down. The water system, there're two tanks that are going to be built within
Makalei Estates and the transmission line, so there will be tearing apart of Makalei Drive in
order to build the project. The water is a requirement, I believe, for the university and for other,
you know, necessary facilities. Now, when you run a water transmission line through an area,
Water Department is going to require a paved road over it to service their road. Now, they stated
today that they weren't planning in building Road I C until a later time, which, that is good, you
know, cause that helps give a break between Makalei Estates and the connector until the
connector is done. But by putting the waterline down the road and they will be paving that, that
will provide physical access for people to use to get from upper highway to lower — not a legal
one but a physical one. So we're -. How do we stop that from becoming the router traffic for
people anyway? It's already been proven in the previous testimony three years ago that Makalei
Drive with its 18 percent grades is not safe for any large amount of traffic of trucks. It's,
anyway, I don't need to go down that road. But anyway, I would like to see, the Water
Department will probably require a gate to keep people off the 10 -foot wide road at the bottom
between Makalei, the boundary between Makalei and Palamanui. I would like to see a gate put
at the top of Makalei Drive as a temporary measure for the next, well, if it takes them two years
just to get the tanks done at least that period, it might be four, six, eight more years until the
connector roads are done — maybe ten. But to keep the traffic out of Makalei and the future
possibility of public opinion stating, well, you have a road there, let's use it and let's remove the
barriers, I'd like to see more barriers put there to stop that from happening in the future until they
can follow a plan that's been approved. And that would be a gate at the top and the bottom.
When the roads are done, and then the gates get removed without a tremendous amount -.
Makalei, just due to the nature of seclusion, has had a lot of crime and vandalism and burning of
tires and drug trafficking and you name it; it's been happening. It's an isolated place. The police
don't come there very often. We are, you know, in middle of nowhere. By putting some gates
on there you can at least curtail those activities and lessen the necessity of police presence. And
when the time comes, when the road is open, and then there is a normal amount of traffic or the
22
fire station built across the street as there's been talk about doing, then the problems go away and
it's a community as planned. That's the gist of what my letter said with more detail and backup
data, but let's keep Hawaii safe and until such time as proper to open it up.
WATANABE: Thank you. Fellow Commissioners, does anyone have any questions?
No? Well, thank you for your testimony. Ms., Mrs. Van Pernis?
VAN PERNIS: 'Hi. My name is Kristi Van Pernis. I live at 72-1163 Ho`opai Street in
Makalei Estates. And I have been asked to read into testimony a letter from our former State
Representative, Virginia Isbell, and she was also on the County Council at the time Palamanui
was approved.
My name is Virginia Isbell — speaking for her — and I've asked that my testimony be read as I
will be off island at this time. I wish to speak in opposition to the request by the Palamanui
developer to delay the building of Road 4 while continuing with the planned development
permitting of 600 homes.
I was a member of the County Council in 2006 when this project was brought before us. I am
very familiar with the Makalei Subdivision and its extremely steep roadway. I also made it clear
that Makalei Drive Subdivision was not to be used as a mauka-makai connector road and was to
be opened only after all the agreed -to requirements were met.
I supported the Palamanui project in 2006 because the developer agreed to the following: that the
developer shall build a new mauka-makai connector road through State land, north of Makalei
Subdivision, up to Mamalahoa; Makalei Drive is not to be opened until the mauka-makai
connector road through State land is completed; and in addition, create a mid-level road to
Kaiminani roadway through State land dedicated for the Hawaii University; plus construct a
20,000 -square foot building for the proposed university.
The developers of this massive project, Palamanui, must put the mauka-makai connector road in
as their very first priority.
Any road from Queen Ka`ahumanu Highway mauka becomes heavily used, and a road this close
to Kona International Airport is a no-brainer when it comes to getting to and from the airport
mauka. It will get used and the traffic will be enormous.
The decision you make today as a recommendation to the County Council must send the
message loud and clear: No compromise on this mauka-makai roadway as promised, and agreed
to, by the developer in 2006. This road must be, and shall be, built first.
I appreciate the opportunity to provide testimony on this important project.
WATANABE: Thank you. I don't believe there are any questions. Mr. Flaherty?
FLAHERTY: Good morning, Chairman Watanabe and Members of the Planning
Commission and Planning Director Leithead Todd. I really appreciate it just, the testimony that
Ms. Van Pernis just presented from Virginia Isbell. I have a stack of newspaper articles that date
23
back from that time. And it was very clear, this was the time that Cliftos' was being proposed
and was, had a huge outpouring of opposition. And because of that, that project was vetoed by
the Mayor, and the County Council sustained that veto. So there's an article here from the
Honolulu Advertiser in which Mr. Giacometti of Palamanui's, Giacometti said the Palamanui
developers are well aware of public concerns about traffic from Kailua to the airport and said
that the existing zoning for Palamanui property requires the developer to build a mauka-makai
road from Mamalahoa Highway to Queen Ka`ahumanu Highway. The new road should help.
And Giacometti said the developer hopes the Palamanui project will be better received than
Cliftos' was. When this project was proposed there were hours of community testimony in
opposition to this project. The only reason that it was approved in its present form was because
of the conditions that are contained within it, as Mrs. Isbell pointed out, as Mr. Hoffman pointed
out.
Yes, this is a difficult time for everyone. However, everyone has got to take their due. The
principals involved in this project are very, very akamai financial individuals. And this really,
there have been a number of deals that have been conceived and put together that very much
resembled the hooks that hooked the community in saying that, you know, we're going to give
you this if you allow us to move forward to make hundreds of millions of dollars for ourselves.
The university is a hook. The mauka-makai connector is a hook. And I will, as Mr. Hoffman
referred to a development, I'll refer to the situation that occurred at Hokuli`a where a mauka-
makai connector at Haleki`i Street was supposed to the barricaded until the entire highway was
built. That was another reason why that rezoning was approved. The residents of that area did
not want their community to have to deal with mauka-makai traffic until the entire bypass was
completed. And, of course, because of unavoidable circumstances we had a situation now where
Haleki`i Street is now opened to traffic on a temporary basis, but it's very clear that it is working.
So it's very likely this is going to be a permanent mauka-makai major connector.
With regard to the university, I just want to point out that the University has already signed an
agreement with campus developers — let's see if I can find that — campus developers, an Atlanta
based company, to develop. And this is from minutes from a meeting that was held on February
23, 2007 at King Kamehameha Hotel with the Regents of the University, said, Director
Kawamura said she was informed that the 500-acre parcel set aside for educational purposes in
West Hawaii, only 25 acres are to be developed into the West Hawaii Community College; the
remaining acres would be used for commercial development which would fund the construction
of the campus; if revenues exceed the cost of construction, the excess will be shared with East
Hawaii. According to Director Kawamura, the Governor was concerned that the West Hawaii
Community had this information. So, yes, there has been a deal struck with Palamanui in which
the zoning condition requires $20,000,000 worth of improvements, to include $5,000,000 for a
20,000 square foot facility on UH land and supporting infrastructure. But to say that the college
is completely dependent on Palamanui, I don't think, is an accurate reflection of a fact. I mean I
can go through and name a number of other instances in here where it's very clear that we've got
a situation where these changes should not be allowed.
I want to point also to an August 2007 article where partner Guy Lam said it was a move to
target more of the middle market, although there will be some ocean view estates. Lam said the
slowing residential market was not a factor, however; and he estimates the sales value of
$650,000,000. So back in 2007 in August they had already started to note that there was a
24
slowing residential market; and yet there was always hope that that was not going to impact the
development.
So I don't want to take any more of your time, but I encourage you to at least go on line and do a
google for news stories seeking, get caught up with the sort of information, with the concerns
that the public had at that time and the fact that it really is not okay that this bait and switch is
being pulled, regardless of the financial circumstances that exist at this time. I think that the
financial commitment should be made, or the free market should reign otherwise. Thank you
very much.
WATANABE: Any questions for Mr. Flaherty? Doesn't look like it. Thank you for your
testimony. You all may be seated. I have five more individuals who have signed up to testify.
So that we don't have one individual up here by themselves, why don't I call up the first three. 1
have a Laura — oh, we can call up all five then, we have five chairs now — Laura Dierenfield,
Mark Van Perris, Lionel Kutner, Kevin Balog and Arthur Mahi. There's one more individual.
Are you Laura?
LEITHEAD TODD: Lionel Kutner is the one missing
WATANABE: Oh. Is Lionel here?
PUBLIC: No.
WATANABE: I guess he left. Okay, may I swear you in? Would you raise your right
hand, please? Do you swear or affirm to tell the truth now before the Planning Commission?
TESTIFIERS: 1 do.
WATANABE: Thank you. Then I guess we can begin with you, Laura. So would you
state your name and address? Oh, please speak into the mike, yeah, and state your name and
address, and you may begin your testimony.
DIERENFIELD: Good morning. My name is Laura Dierenfield and my address is 64-5253
White Road in Waimea, Kamuela. Thank you very much for the opportunity to testify. I'm
speaking on behalf of PATH, which is a 500 -plus member organization dedicated to creating
bicycling and walking facilities for the island. And we just want to briefly state that we feel it's
important that this development include public access trails and pathways, as Mr. Harris has said
that that is a strong desire for residential developments, exceeding the desires for golf courses
and other amenities. So while there are some adjustments that have been asked for, we would
urge the applicant as well as the Commissioners to retain the planning and design of trails,
pathways, bikeways with the project as quickly as possible so that those types of facilities can
move forward, and when capital is available for the other major infrastructure that that can come
on as well. But again just to keep that planning and design component alive, we also, as was
mentioned, there are some rather steep grades, and to really create a multi -modal desirable
community that I think we all would like to see there, multi -modal facilities at a grade of 5
percent or less are required. So we'd like to see a meandering shared use path along the mauka-
25
makai roadways and other major roadways within the development and, again, meandering
landscape to accommodate those steep grades.
And as an offset to the loss of open space, I think we all love to see these wide open plains of
lava — I grew up in Kona and appreciate seeing open space — but as an offset to the loss of an
open space, we would love to see a dream of our organization that was conceived over 15 years
ago called Ka`apuni O Hawaii, a trail that circles the island, in that study commissioned by
PATH in 1997, those done by Townscape, we envisioned a shared use path along the utility
corridor. And Palamanui has been kind enough to let us come and see their lands. And the
opportunity to include a shared use path throughout that utility corridor is very exciting to us;
and we'd love to see that be part of the project. Obviously if the utility corridor as it exists now
41 is not feasible, that some kind of relocation of that linear corridor be accommodated that would
hook up with the rest of the utility corridor to the north and south along the State parcels.
And we just really would like to see an environmentally and economically viable project
continue here and would like to state our support for finding the best solution possible to create a
truly multi -modal desirable community in North Kona. Thank you.
WATANABE: Do we have any questions for Laura? Doesn't look like it. Thank you for
your testimony. Mr. Van Pernis.
VAN PERNIS: My name is Mark Van Pemis. I live at 72-1163 Ho`opai Road. I am an
attorney. I have 33 years experience here in Kona in real estate and construction law primarily.
Many people work long and hard for west side Leeward Planning Commission to better deal
with the west side's needs, particularly public infrastructure, concurrency. And with apologies to
my friend Ms. Leithead Todd, and to counter the fact that the Planning Department was Hilo -
based and often didn't know what Kona's needs were, this is a big opportunity for you as the
Leeward Planning Commission to stand up for Kona and to avoid business as usual — business
like Hokuli`a, business like Waimea as Mr. Hoffman talked about, business like La`aloa.
You've heard some mighty pleasant things here from the developers — university, solar dealers.
And you've heard some bad things — financing is impaired. But I don't see anything to back that
up, other than hearing from that, on the university. I don't hear, I don't see any proof of
financial impairment. I don't see any proof of what commitments or lack of commitments they
have from prospective occupancy years down the line. I don't think you've done your job till
you have that sort of information. Let's talk about a cash flow projection, let's talk about a
business plan. Where are all these things? Are you going to just take their word for it, business
as usual?
And in regards to the university, as Mr. Freitas indicated, there are no funds available at this
time. And under the State's sparse budget at this time, my information is that the funds will not
be released in the foreseeable future. You've heard the developer say, well, this is the same
project. It's not the same project. It's the same project for them but it's not the same project for
the community. The community loses almost all of the infrastructure that it was going to get. In
exchange for the feel -good university infrastructure, they're giving up all the other infrastructure
they promised — the roads, primarily the connector road.
26
The millions and millions of dollars they received in benefits from the County in terms of the
rezoning and their pern- its was to be a trade-off for the millions and millions of dollars for your,
the community was to get. Now they're saying, well, we want to keep our millions but we want
you to give up your millions as the County, the people, to give up their millions, and where you
want to do it on our representation without proofs that we have financial difficulty or financial
impairment in our $600,000,000 cash flow project. They say we would like to start at certain
times on certain activities but there's no requirement that they start, nothing from you folks.
Let me remind you about Hokuli`a. There are many of us who thought back in 1998 that the
road that they promised, the bypass road, would never be built and that all the litigation has just
been a good spin or cover to avoid that reality. Why do I say that the road was never to be built?
Because they proposed what has been taking place on other projects, including now this one,
we're going to put up a bond for the road. The bond that they put up in Hokuli`a was
$8,000,000. The cost of building that road now is approximately $16,000,000. Who's going to
build it? The County? It will never get built. Where's the money coming from?
Mr. Hoffman talked about Waimea. I'll give you the example of La`aloa, another connector road
that was supposed to be built by the developer during good times; when the time came to build
the road, the developer was not to be found. He had taken his money and gone. And now
there's no developer of roads and the County is going to have to put it in themselves or we'll
never have it. They proposed a $10,000,000 bond for the road here. The $10,000,000 won't
build that road. And after they remove themselves from the project or there are subsequent
entities that take over, where is that road going to be? They are asking for, as I said, millions of
dollars in benefits to the County be waived because times are bad. What about when times get
good again? Are we going to get some benefits back? Do you have the ability to say, well,
when the economy rises to a certain level you will have to pay us additional benefits or provide
us with additional benefits? It's a one-way street they're asking for. Give us the benefit. You'll
get no benefit regardless of how the County, economy of the nation or economy may change in
the future.
Now there was a pact made, an agreement made. Ms. Isbell's testimony talks about -
WATANABE: Mr. Van Pernis, time. You want to wrap up?
VAN PERNIS: I'll wrap up. There are things you can do. You can put time requirements
on their performance. Instead of just waiving it and making it 600 permits or whatever you can,
you can put time requirements, as when this number of permits are issued or by this time,
whichever comes first, you are not to give the County its benefits depending on the profit margin
of these folks.
Let me try to conclude on the issue of the connector road by saying the following: Bond means
no road or the opportunity for no road. Six hundred permits mean no road or the possibility of
no road. There's no security for that road. There is no way you can mortgage that road without
a, unless you subordinate this to all other financing. There is no other developer who's going to
come in and pay for that road as they want. These are all excuses or all opportunities to give
them, to avoid having a road.
27
Let me conclude by saying that you can impose time limits, you can reduce the permit numbers
that they're asking for. There's a large number of things you can do, rather than just rubber
stamp what is being put before you. And I would ask you to take this matter under a deferment
and ask for more information before you make such an important decision to the detriment of our
community. Thank you.
WATANABE: Thank you. Do we have any questions of Mr. Van Pernis? Doesn't look
like it. Let's see, Kevin Balog.
BALOG: Aloha, Chairman Watanabe, Planning Director Leithead Todd. My name
is Kevin Balog. I live in Pa`auilo on the Big Island. My address is PO Box 368, 96776. I'm
here today two -fold, as a personal interest for myself and also for the companies that I work for.
I submitted written testimony. And I hope you've had a chance, I submitted it this morning, and
had some to read it. If not, please go over it. I don't want to rehash what's in there.
When you sit on the Planning Commission, I believe it's always hard to pick something and
throw a dart at it and come up with the right answer. It's like being a developer. At the time you
make a decision, and same like our County Council who enacts ordinances, they make the
decision based on the best information they have at the time. At the time this project was
originally proposed, a lot of the stuff that they had was the best information that they had at that
time. Myself, as well as our company, and a lot of the construction industry depends on projects
like Palamanui going forward. Is it a perfect project today with all the information you have?
I'd like to hope so. 1 hope they never have to come back in front of the Planning Commission
and then go in front of the Council. If it's not and there needs to be adjustments made and it
doesn't affect the final outcome, whether you're moving pieces from completion date or a
number of units, that should be okay because no one can predict three, five, ten years into the
future. I sat on the Planning Commission when changes were made to Parker Ranch; and I felt
kind of funny when I heard our Councilman Hoffman discuss that, well, this was done, this was
done, and these changes were made, and nothing has happened. Well, I think I've lived in the
Hamakua and Waimea community longer than Mr. Hoffman. Our company actually has mining
rights from Parker Ranch. And Parker Ranch at no time during their process ever came in front
of the Commission and said, well, you know what, we lied to you. They're not. That's a fallacy.
For Charles Schwab, Guy Lam and the Hunt Brothers to come in front of you today and say we
want to spend $20,000,000 to $30,000,000 on infrastructure that doesn't let us, that really they
aren't planning to build one house but they're putting that money up to get access to a university
site to build a West Hawaii Campus. Is that a carrot? Yeah. Is that a goal? Right. So if all of
these changes happen, we get access off Queen K, we get some roads built, infrastructure in, and
the West Hawaii Campus moves to that site, and they don't sell one house in the next three to
five years. Is that a benefit to the community? The answer is yes. Was a change necessary for
them to do it? Yes. Did they need an opportunity to put commercial businesses in their area that
could service the university? That's a great idea. Think about it. You have businesses in your
development that can serve a university complex. That will grow. I lived in Hilo when there
was no university, it was a community college, and they had to fight for a university. That's
what we're doing here on the west side.
There have been discussions about cycles of the economy. There are cycles of economy. There
are cycles of politics. And there's also cycles of what supports an economy. On this island at
28
one time we had agriculture, viable agriculture that created jobs. Where.is the viable agriculture
today? I know cause the last viable agriculture that was developed was in Hdinakua that planted
trees. And our company, when the economy was in a downturn, to keep their employees
employed had to go work to Prue Timber. There's no viable economy going on in this island
right now. It's construction. Our unemployment rate is at about 10.4 in April. When they
release the June results, it will probably be around 12 percent; and it's going to get worse. We
haven't hit the bottom, and people are willing to spend money.
Our company supplies projects all over this island out of Waimea. We employ people from Hilo,
Hamakua, Kona, Kohala. And you know what? It's not good. There are only, out of 20 projects
we're supplying, 19 are government, government — County, State, Federal, and one is the Parker
Ranch bypass that has just started — private. If you want to know why people aren't building,
there isn't an upside market because even the people who have money can't go get a loan and
build a $5,000,000 home, unless they have their own money. The small guy who wants to buy a
house can't get a house loan because the money market, the banks have dried up.
So I know my time is up, Mr. Chairman. So just to wrap it up, I want you guys to understand
that this project right now is asking you for changes to not benefit themselves first. They'll
benefit in the long run. The benefit is starting a West Hawaii campus; and we need it. And we
need jobs. Ourjobs right now on this island are drying up faster than anyone can speak. Thank
you.
WATANABE: Thank you. Do we have any questions for Mr. Balog? No? Then, Mr.
Mahi.
MAHL• Mahalo. My name is Arthur Makele Mahi, Kupuna. I live right above
Palamanui. And all this talking about money and all that, you putting the horse in front of the
cart. Let's be real. I live here. We need the school. But before we talk about school, we need
malama our iwi, our kupuna iwi. Everybody talk about everything but don't know about the
kupuna iwi. I get my grandparents all buried around the land. If you go vertical, you know,
straight up and down the road, you don't cut, because there's ahupua`a alanui in between two
land divisions, that Hamanamana (phonetic) or Haleiuiu (phonetic). You get one road from
there, from the mountain to the ocean. You wouldn't mistake if you think about that.
Everybody think about money. Money, yeah. You pay your tax, you pay the road tax — that's
the one suppose to take care of the road. For the building tax, well, negotiate with your
government now because they get most of the apau. But we need that school, we need all the
building over there, people need houses, low income especially so you can live. Nowadays you
pay 51300 a month. Who can pay that? Nowadays the job going down. We need guys to get
job and so that we can make the land provide for itself. How they provide? You plant stuff, you
live on what you get. Don't steadily go to Taniguchi, like how we all do. Your fast food as they
call it, yeah, McDonald's and all that, that's where you lose more of your money. Because if you
live off the land, you plant your own, you have no problem.
And vertical, 1 don't think mostly about vertical because, you know, our grandparents when they
die on their land that's their land. They put the body over there. They bury them in the land that
they lived on, that's their land. But everybody say my land and all this. No, ke akua own the
29
land, not us. You mean I stay over here, my grandparents own the land? But ke akua own the
land. We are only a caretaker. When you go, you cannot take the land with you. You, the land
is the owner of you. Everybody say how they do that? You get your culture, man, you
understand. You put your house, you live on the land. The tax, I don't know where it go.
Suppose to go for the land but everybody getting but you.
But the food you put in the land, that's what keep you going until you die, then you go back to
the land. You throw in the ocean? No you destroying my fish then, my food. That's what we
calling Hawaiian icebox. You see when we wear this, like this, it's not for good look, it means
something. This rocky, yeah, belong for the `aina. This one here is takahuku (phonetic), it
belong for the ocean. You know, you guys think it's only good look on top here, no. It's the
value of your life and the way of your living. Right now you're learning the Hawaiian culture.
We not go around for, you know, brag over here. That's our life, Hawaiian people life. They
live with all what they have. Because we never had store we used to give somebody something
and they give something. So I no see what the change have to do with all this. When people
need house, and over here going be low income where you can get affordable house. But we
need our college for educating our children. We don't have to go all the way mainland. And the
kids send poi or anything what they don't have up there. So when you think about it, this is for
us here in Hawaii. We don't have to be like McDonald's every day. Think about it. Mahalo
everybody.
WATANABE: Thank you. Do we have any questions for Mr. Mahn? Okay, thank you
for your testimony. You may be seated. That concludes all of those who have signed up to
testify. It's a little after 12:00 now so I think what we'll do is recess for lunch, and reconvene at
about 1:30. How's that?
RECESSED The Chair called a lunch recess at 12:10 p.m.
RECONVENED The meeting reconvened at 1:45 p.m.
WATANABE: Leeward Planning Commission come back to order, please. And now that
we've completed the public testimony, if I can call up the applicants, Mr. Okamoto, Mr. Harris.
Well, you've heard the public testimony. And obviously there're still some concerns. Would
you care to address some of these with regard, I guess, to the timing probably of Roadway 4 and
some of the other issues that came up while we are at it? I guess Mr. Hoffmann brought up the
park and things of that nature.
OKAMOTO: The basic problem is we do not have a residential market we can use to
make this project go forward. If we load up on the park and load up on Road 4 at this point, we
can't do it.
WATANABE: Yeah.
OKAMOTO: So the only other option then is we do nothing. And that's our reality, the
economics of it.
WATANABE: Okay.
30
OKAMOTO: And I think that the Commission understands the basic situation.
LAM: You know, we -.
WATANABE: Mr. Lam.
LAM: We carefully went through all the ordinances to see the affect on the
project, you know. Like people say, well, we didn't do our homework; we've done cash flows,
analysis, market studies. And we are in an environment in economy nationwide we've never
seen before. And we are nearly end of depression. So when we put a burden of Road 4 on there,
it's approximately $10,000,000. What is required is a band. To get a bond we have to have a
set-aside letter from the bank. And top of that the bonding comes with a 30 percent letter of
credit in the amount of like $3,000,000 personally from the owners because the bonding
companies are so gun-shy of people, you know, not banks going under not being able to get the
money. So it's a financing problem. And the timing with the cash flow, I mean, there's, the
university we are committed to do, that's $5,000,000. We have another $17,000,000
infrastructure just to be able to put the university. We haven't built any roads inside the project
yet. We haven't built the subdivision roads. We haven't built the roads into the commercial
center. We haven't built the roads into the town center. That's another $20,000,000. And we
have to have some sales. We are not asking for these changes because, you know, we just need
them; we need them, need them to happen.
WATANABE: Yeah, I understand. Don't get me wrong; it's not like I'm saying it's
impossible. Okay? However, you know, we still do have to address the concerns of the
community. And along those lines I think you also need to recognize that we do value the input
of all of the various departments that we request comments from, one of which would be Public
Works. Now it doesn't necessarily mean we always agree with, you know, the proposals or
recommendations, but we do value their input. And along those lines we only recently got the
TIAR, yeah, the Traffic Impact. And maybe 1 should turn it over to Mr. Lee, so he can share
with us on whether they can endorse the traffic impact study or not. Would you care to respond
to that, Warren?
LEE: Let me -. Am I on? Good afternoon. So the question for, 1 guess,
Palamanui is that the comments that were submitted by the Department of Public Works to the
Planning Department through the memorandum dated June 19`h, and the first question is if the
representatives of Palamanui have a chance to review the memorandum or the comments that
were submitted.
HARRIS: Yes, we did.
LEE: And what, do you have any feedback, or -?
HARRIS: They are okay -.
LEE: Any objections?
31
HARRIS: Number 3 comment is asking for that we grade the entire right-of-way
Road 2 over to Kaiminani. And we have a grading permit now, you know, for the mauka half,
and that's what our condition says now. We would strenuously oppose adding that on. This is a
120 -foot right-of-way and -. We want to build that road, but you know, the pavement thickness
just went up, the cost went up in the last month, and adding more grading to it, we oppose. The
other conditions, we think, are workable.
WATANABE: Do you have some follow-up, Mr. Lee?
LEE: Yeah, well, I'm taking this down just for my own personal information. 1
know we're going to have a transcript. Okay, so certainly I think we need to have some
discussion on that item 3 in our memorandum. Also the concern that, we did get the letter from
your consultant -.
HARRIS: Yes.
LEE: This morning as a matter of fact, and we really haven't had a chance to
review that. So we would, Mr. Chairman, like the opportunity to have the discussion with the
representatives of the Palamanui development.
WATANABE: Does that, does that sound reasonable?
HARRIS: Well, we'd love you to vote today -.
WATANABE: Yeah.
HARRIS: But if you are saying you want more time, you want to talk now or later?
WATANABE: I think those discussions, because it sounds like you are in a situation
where we really need to negotiate with you. Obviously we would love to have you build out all
of the infrastructure before you even build a single home; that, however, is not possible. I would
agree that obtaining financing is very difficult now. But you know, you also have some other
issues because, well, just now Mr. Lam indicated that even the bonding may be an issue. The
requirement as put forward right now requires bonding, although it doesn't state a specific
amount. I think in your proposal it was a $10,000,000 bond. So maybe we have some issues
that need to be worked out between the various county departments, yeah, Public Works as well
as the Planning Department. So if you guys can come up with some kind of agreement on -.
Well, can we really live with the bond? And also getting the two agreement about whether Road
IA is sufficient to handle the traffic. You picked out, I believe, it was two tiers; 250 units and
600 units. I think Mr. Lee has to have an opportunity to look at the traffic studies and see
whether he concurs or not, whether that is sufficient. And maybe it's not 600, maybe it's 450 or
whatever — I don't know, I'm not an expert in that area. But I would think those things would be
things that you would want to work in private, yeah, with the various department heads?
HARRIS: Well, we hear you and appreciate your -. I guess give us any more qualms
you have, or are there any burning issues that we should talk about in this intervening time?
32
WATANABE: Mr. Lee, do you have any others?
LEE: I think one of the questions that we would want to work out with you is on
Road 4 that seems to be very high, item of high interest based on the comments that I heard this
morning. And I think the way the amendment is proposed is that the Road 4 be built after the
County acquires the right-of-ways and the 600"' unit is committed or sold. So I think there may
be something we may want to discuss around those issues. Because if it's an "and" versus an
"or," you know, when is the 600°i, when is the trigger accomplished? So I think that is a concern
that I have in trying to bring certainty to how the County, DPW would need to negotiate with
their respective landowners to be able to build the Road No. 4.
HARRIS: Well, we would certainly want to participate with you on that.
WATANABE: Yeah, fellow Commissioners, are there any other burning issues, so that,
you know, when we do reconvene on this matter we will have all the, hopefully all the response
that we need? Mr. Housel.
HOUSEL: Yeah, I had one question. Maybe you can clarify this for me. You
indicated earlier that by rezoning the 29 acres, or almost 30 acres, in the industrial area would
help generate financing for the project. Is that, would that be sufficient to finance the, you know,
the roads, 1 A and 2 roads, or are those dependent on the residential market coming back?
HARRIS: Well, the addition of wholesale in the little rezoning down in the Business
Park would be very helpful in just making, you know, making that more hospitable and more
able for other businesses to come in and buy lots from us basically. But that alone would not be
sufficient to support, to give us the money to start building Roads 1 A and 2 and the university.
Road 4 is the whole thing. I mean if we are obligated to, you know, the condition says now we
bond it next year and we build it by 2012, that no matter what else happens; now that is just,
there is no way we can do that. Nobody will put money into a project unless they have a view in
the future that there's, you know, people are going to buy your t -shirts and pretty soon you can
pay off your, you know, pay the guy back and put the money in. Just to pay him back you've got
to have some revenue intent and possibility. So that's, we have to put off Road 4 and we have to
put off, you know, to a reasonable surety on Road 4. And that's -.
LAM: I want to make it real clear. We're not trying to get out of Road 4.
HARRIS: Yeah.
LAM: We're not trying to get out of Road 4; we are just trying to, we just need to
have some time so we can make our project viable.
WATANABE: Yeah, I, I -. May I jump in a second? I've never been in of the impression
that you were trying to get out of Road 4. However, you know, like I mentioned earlier, one of
the conditions was a requirement for bonding, right? Is that right?
LEITHEAD TODD: It's not a requirement for bonding per se; it's a requirement for security.
And in the past we've done bonds, we've done certificates of deposit, you know; with the QLT, I
33
think they basically had some securities that they put on the side that were with the value of their
improvements that they couldn't sell or trade without County approval. So there have been
various different types of securities that we've accepted for bond requirements. Bonding
basically means that you have to provide some type of security that insures that the construction
of the improvements will occur. But it has been in the past different types of security that have
been offered including letters of credit.
WATANABE: Okay. Now maybe I can get a response from you, Mr. Lam. Do you feel
that there is any way you could provide that, some assurance that -?
LAM: We can work, we can work with the Planning Director and come up with
some security that makes the County comfortable, then we'll perform.
WATANABE: Yeah, and that's -.
LAM: There is, there is something that we would, we hope that we'll work
something out. 1 mean that's the issue that there is a guaranty the road gets built someday. So
we'll work that out with the Planning Director.
WATANABE: Yeah, okay, okay. That sounds good. Yes, would you like to comment'?
GIFFIN: Yes, I would, Mr. Chairman. So if I understand Mr. Lam correctly and
Bobby Jean also — correct me if I'm wrong — if we can get some sort of verbal commitment
today from Guy Lam that would satisfy the County, would it be possible for us to proceed?
WATANABE: Uh, well, your, she is addressing you, though.
LEITHEAD TODD: Chair, it's a little, it's complicated because in the first place one of the
reasons i asked that the $10,000,000 reference be removed is that I need some reassurance that
that in fact is the amount that it would -.
GIFFIN: Cost
LEITHEAD TODD: Cost to build Road 4; and so that's why 1 asked that specific dollar amount
be removed. And I wanted the existing language to remain in there, and then we would try to
meet with the developer and figure out exactly what is the cost, the proposed cost of that. And
it's not just Road 4 because we have to have some guaranties that, you know, they are able to
build the other infrastructure as time goes through.
GIFFIN: More than IA and 2?
LEITHEAD TODD: Well, ultimately you have to be talking to them about all of their
subdivision.
GIFFIN: Right
34
LEITHEAD TODD: And it's not just roads; you are talking water, sewer. They have to show
you that they are able to deliver. So those are issues. But what we are trying to do is
accommodate their request in terms of the mixed-use, mixed industrial commercial so that they
have some sales that would help -.
GIFFIN: Right.
LEITHEAD TODD: Proceed. My understanding is that they have a current commitment of
about $20,000,000 or $22,000,000 that they could proceed with, if some of these conditions are
met, so that they can actually start construction on IA and 2 and the West Hawaii Community
College within the next year, so that the projection of completion of the college is 2011, if I
understood the testimony of both the Community College as well as the applicant. And I think
the road issues can probably be worked out, you know. Mr. Lee wants to have his staff look at
the TIAR and see whether that report is adequate; I don't think that that is a big issue. We are
looking at the intersection. But there's still language in the ordinance that requires
improvements; but those are meeting with the requirements of the State Department of
Transportation because it's a State highway. I think the addition of an additional requirement for
the full grading of Road 2 is in addition to what's already there, because right now there, the
existing condition is only to do the mauka section, or a half of that 120 -foot road right-of-way.
So this would be an additional requirement that Public Works is now asking for, and I think that
that adds additional cost to the project — I don't know how much. That's something I think that,
you know, they need to be talking to Mr. Lee about.
And I am a little concerned in terms of time line that, you know, I'd like to see them get going on
the construction. And so you know, the Commission may want to take a look at whether there
should be some requirements on the start of construction for the West Hawaii campus — I don't
know. You know, that's something that you may want to discuss with them. But ultimately if
this is deferred, because we only meet once a month with Leeward, then it's end of July. That
means, given time to transmit and stuff, that it won't come up on the Council's committee
agenda till probably the second meeting in August, and then it would take another two meetings,
assuming that, you know, this went along without any deferrals at the Council, that would be two
readings in September. But that's assuming that, you know, there weren't any deferrals there. I
would assume that if there is a deferral here, you probably see a deferral at the Council. And I
assume that all of that pushes back construction and probably pushes back the anticipated
construction dates on the community college. And perhaps the developers might want to speak
to that.
GIFFIN: Right. And you are talking just, basically its start dates, right?
LEITHEAD TODD: Yeah.
GIFFIN: Wow.
WATANABE: Well, Mr. Lam, do you want to respond?
LAM: Well, concerns with Public Works, if we could work that out, you know, if
we could get passed today and work that out, it's still going to go to the Council. So you know,
35
we have plenty of time to work out whatever concerns of theirs, cause no matter what the
Planning Commission does, I think the Council will still have to approve at the Council level.
So it's a timing issue and we'll defer to the Council, the Commission, excuse me.
WATANABE: Okay, if no one else -. Mr. Hensel.
HOUSEL: Yeah, I had one concern. You know, I think I just heard some new
information that you do have funding available — I think I heard $20,000,000. Would it be
possible to document that? That's, that's, the biggest thing that makes me the most nervous is
how soon is it going to get started and if you have proper, adequate financing at this stage, or if
we have to wait until you start selling homes before anything can get started. I would like some
reassurance that you can meet your targeted schedule, and that this is not so open-ended.
COLON: My name is Steve Colon, and I'm with the Hunt Development Group, or
one of the financial backers of this project, and we're also a co -developer with Guy Lam. The
venture right now has a capital that's been committed to it by Mr. Schwab and by the Hunt
organization to put in, go through the entire water system, which is our first major infrastructure
project, and we're looking to start on that project later this summer as soon as we can finish
securing all of our approvals. So the remaining, the remaining funding for most of the items that
we've been focusing on with the exception of Road IA, Road 2 and the university associated
infrastructure, funding for that is going to have to come from the combination of our owners'
capital, as well as we hope, we hope to see that there will be some render funding that you'll
actually be able to maybe go out and get a loan, you know, later this year. So that's why our
strategy right now what we are working on is to get all of these approvals that, you know, Roger
and Guy have been talking about, we have to have all of these approvals so that we can actually
go forward. So I think the short answer to your question is the venture is adequately funded right
now to continue with our infrastructure goals and plans, and then we are going to be going back
to the owners in the fall to secure the additional funding so that we can put in the remaining
infrastructure as well as the university.
WATANABE: Okay. Yes, Ms. Bowman.
BOWMAN: I just have a quick question. So the remaining infrastructure would be -
LAM: That would be Road IA, the intersection on the highway, Road 2, the
Kaiminani which is required to put in and the university. The money that Steve is talking about
that's committed is $6,500,000 towards the water system; that money is committed and being
funded monthly for plans. So that is committed.
COLON: I'd like to also add that in addition to going back to the owners with, you
know, the fact that we have these approvals, we now are in the position that we are ready to go
forward, we are also hoping to go back with some evidence that the real estate market has come
back in a way that we can now go to our owners and say, look, this is, this is a viable project. So
that's why we are looking to get our Business Park activated and start putting together some
letters of intent with prospective purchasers of the Business Park, which is why this, you know,
untying the Business Park sales to the residential sales is so important, because I think we all
believe that the residential market is a ways off while we think the demand is there right now for
36
the Business Park. And if we can activate the Business Park as a working tool, show the
evidence that there really is a demand there, then that's going to bolster our ability to show the
owners that we do have a viable project, and we can get going sooner than later.
WATANABE: Any other comments?
BOWMAN: I do.
WATANABE: Ms. Bowman
BOWMAN: In regards to Road 4, I have, maybe I need a little enlightenment on this,
because if there is — how can I say this — the need for Road 4, that the people that I've heard that
have objections are the people that live in Makalai, and that they don't want this to be a collector
road to feed, you know, and I can understand that. But I cannot understand how much traffic
will be created by building that road until A) you have your residential or the university.
LAM: Well, the Makalei Estates road by when we build that subdivision by
ordinance we are required to dedicate that road at some time. The agreement with the Makalei
people that Road 4, which bypasses so people don't have to go down Makalei -. Makalei is very
steep, it's over 15 percent grade; it is not a safe road, so really it should not be a collector road,
you know, quite frankly. Road 4 is really a regional road. Our development does not affect
Road 4 very much. Road 4 is people coming from Waimea, you can imagine going to Waimea
or the airport, that's the quickest way down; it alleviates the regional traffic, you know, traffic
problems. We don't believe that -. You know, there'd have to be an awful lot of people at
Makalei, I mean, Palamanui living there before -. And you know, that would be people -.
Where are they going? They're going up to Waimea, I mean, they're not going into town. So
and the timing issue, you know, the County also has leverage on the building permits, you know
— after 600, no permit, we can't go any further. And we'll have to sell 600 units to keep the
project going and pay for all this infrastructure. I wouldn't say there's a net profit by 600 units.
So, I mean, when the developer might make some money is out in the last 200 or 300 units. So I
mean quite frankly, if you ask any developers, there's a lot of upfront cost, there's a lot of
staying power that's required to do a project of this size. And fortunately I have really good
partners between Mr. Schwab and the Hunts, and they are committed to the project. And Mr.
Schwab especially is committed to the university; he's told me personally that that's going to get
built one way or the other. And he met with the Mayor and told him the same thing. So that's
pretty much our position.
BOWMAN: Thank you. Because, and again, you are not responsible for the entire
Road 4.
LAM: Well, technically, the way the ordinance is written, we are. Now if the
other owner there wants to develop his property, I would imagine the County would make him
pay his share. We are paying for the intersection at the top and about 17,000 lineal feet of road.
There is more road offsite than within our project.
BOWMAN: Thank you.
37
WATANABE: Okay. If there are no other comments, let me give you my take on this.
As I indicated earlier, we do appreciate the comments from and consider the comments from the
various departments. So with regard to Road 4 and TIAR, I'd really like to hear comments from
Public Works, and this is one of the reasons I'm requesting that we would be able to continue
this. I can tell you right now I don't have a problem with untying the commercial to the
residential units. I don't have a problem with the 299 acres reclass to I think it was CSV (sic),
etc. I think, I think you are committed to, you know, the university section. And I can see where
Road IA and Road 2,1 mean, you wouldn't be able to develop anything or sell anything without
having that in place, and that provides the connectivity for the university site, the 500 acres there.
By what you've stated so far it looks like you've got $6,500,000 or so that's already committed
for the water, so it looks like the water is coming in. You know, the only other infrastructure
really that the university needs is the sewer, and so I would guess that if you are putting in 1 A,
the sewer isn't going to be that much more. So I think all of those things will come about. There
was a concern about the park. I'm not as concerned about the 20 -acre park. Because I think, you
know, water is a scarce resource, and that's said, the best, most efficient way of watering the
park would be with effluent, but you are not going to have the effluent until you have housing.
So if the park comes a little later, that's fine. But again, I do value the input of Public Works,
and so I would hope that you all be able to work out something satisfactory and come back with
those agreements, not to mention some way of satisfying the Planning Director whether it be by
bond or some other means that Road 4 and the other infrastructure will actually be built. It
doesn't necessarily have to be the bond, as we heard earlier. And so from my standpoint that is
what I would like to see you would be able to address. And I guess if there is nothing else to
add, the real question is, do you think we can, is it reasonable to say we can meet next month on
this, schedule it for next month?
GIFFIN: Mr. Chairman, excuse me.
WATANABE: Yes, Ms. Giffin.
GIFFIN: Ijust have a suggestion to consider. Is there anyway that we could word
our motion with the aid of our legal counsel and with the assurance from our Planning Director
that these certain conditions be met, that it would be in our motion today, so that we can -?
WATANABE: Pass it on?
GIFFIN: . Yes.
WATANABE: I'm a little, personally— everyone else can comment on this — I'm a little
leery of just passing it on. I want to make sure that they don't, the funding doesn't dry up, either,
though, yeah? But I'm a little leery -.
GIFFIN: That's my concern, too -.
WATANABE: Yeah, yeah -
GIFFIN: And the timing, right -?
38
WATANABE: But I'm a little leery of just passing it on because in my mind I'm saying,
okay, if we are just going to punt to the Council, then why would the Council ever consider
anything, any recommendation we make in the future — that's the problem I'm having with it.
And if we haven't looked at -.
GIFFIN: I don't think that we have looked at this issue in that way. I think that we
have — at least I have, and I'm sure the other members of this Commission, too — have spent time
pondering, reading the background information, reading the recommendations and all of the
information that has been presented to us. But I just see time as a major issue. And I really
value Mr. Lee's input and his department's input. But I just wondered if there was a way that we
could word motion to include all of that and satisfy the Planning Director and of course with Mr.
Lee's input and with the help of our legal counsel here today.
WATANABE: Well -
HOUSEL: I have a -
WATANABE: Mr. Hensel
HOUSEL: I have a comment. We certainly have spent a lot of time, Commissioner
Giffin, on the, you know, all the information that's been provided to us. However, personally I
feel that there is a lot more we need to know; I don't think we have all the information to be able
to make a decision today. And I've just learned a little more about the financing contingencies,
which I would like to be very clear about before we make a vote. And so I would request that we
get some additional information from the applicant to give us a clear understanding what the
contingencies are and what the approximate timing is, so that we are very clear about that before
we decide to approve this or not.
WATANABE: Anyone else wish to comment? So what -. Well, let me ask you this.
This obviously is a delay; I know you prefer that we just act on this right now. But is this going
to jeopardize your funding?
LAM: No, we are okay with deferral. I mean there are things to work out with
Public Works, and it's probably better to work it out before the Council. So we are okay with it.
WATANABE: Okay, okay. So if you are okay with that, then let me return to the
question I had originally. Is it reasonable to say that we could meet on this and schedule this for
the next Leeward Planning Commission meeting, which would be in the second half of July?
LAM: At the end of July, right? Yeah, absolutely.
WATANABE: Yeah, okay, okay. Good, good, good. Cause we are just as anxious as
you are. With that, Mr. Hensel, would you care to make a motion to continue this to the next
meeting?
HOUSEL: Okay. I'd like to make a motion to continue this one — let me get the title
right here — this would be both the change of zone, right -?
39
WATANABE: Right, right.
HOUSEL: And the change in the conditions of the application. I'd like to make a
motion to continue that till our next meeting.
WATANABE: Yes, so that will be for both Agenda Items 3 and, the rezoning, and -.
HOUSEL: That's correct, yes -.
WATANABE: Changing conditions -.
HOUSEL: Three and 4, yes -.
WATANABE: Do I have a second on that?
lffel"A%UVNI\ ' a 11
WATANABE: Thank you, Ms. Bowman. Do we need any further discussion on this?
Then -.
GIFFIN: Excuse me.
WATANABE: Yes.
GIFFIN: Jeff, could you give us the date of that meeting?
DARROW: I believe it is July 24"i. But we need to confirm that, if you could give us a
moment.
GIFFIN: Okay, thank you.
DARROW: Thank you. It is confirmed it is July 24`h.
GIFFIN: Twenty-fourth. Thank you.
WATANABE: Okay, very good, then. So, call for the vote, Mr. Darrow?
DARROW: Thank you, Mr. Chainnan. The motion before us is to continue Item,
Agenda Items No. 3 and 4 until our next Kona meeting scheduled for July 24`x'. With that, I'll
take the motion. Commissioner Housel?
HOUSEL: Aye.
DARROW: Commissioner Bowman?
BOWMAN: Aye.
40
DARROW: Commissioner Beaudet?
BEAUDET: Aye.
DARROW: Commissioner Giffin?
GIFFIN: Aye.
DARROW: Commissioner Iokepa?
IOKEPA: Aye.
DARROW: And Mr. Chairman?
WATANABE: Aye
DARROW: The motion passes, six to zero.
WATANABE: Okay. So I guess we'll see you back on the 24th then. And I hope you are
able to work it out with all the parties concerned.
LAM: Thank you.
WATANABE: Thank you.
COLON: Thank you, Mr. Chairman.
The discussion ended at 2:20 p.m.
Respectfully submitted,
/s/ Noriko Sauer
Noriko Sauer, West Hawaii Secretary
41
LEEWARD PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
JULY 24, 2009
A regularly advertised hearing on the applications of PALAMANUI GLOBAL HOLDINGS
LLC (REZ 09-94 and REZ 05-010) was called to order at 10:15 a.m. in the King
Kamehameha's Kona Beach Hotel, Ballroom IV, 75-5660 Palani Road, Kailua-Kona, Hawaii
with Chairman Rodney Watanabe presiding.
PRESENT: Rodney Watanabe
Brandi Beaudet
Lam Bowman
Geraldine Giffin
Frederic Hensel
Wayne lokepa
Warren Lee, Public Works Director — Ex Officio Member
Brandon Gonzalez, Deputy Corporation Counsel
BJ Leithead Todd, Planning Director
Margaret Masunaga, Deputy Planning Director
Norman Hayashi, Planning Program Manager
Jeff Darrow, Staff Planner
Maija Cottle, Staff Planner
Kiran Emler, Engineering Div., Department of Public Works (left at 12:38
And approximately 40 people from the public in attendance
APPLICANT: PALAMANUI GLOBAL HOLDINGS LLC (REZ 09-94)
Change of Zone from Project District to Industrial -Commercial Mixed —20,000 square feet
(MCX-20) district for 29.92 acres. The property is part of the proposed Palamanui development
located northeast of the Kona International Airport at Keahole, between Queen Ka`ahumanu
Highway and Makalei Estates Subdivision, Kau, North Kona, Hawaii, TMK: 7-2-5:portion of 1.
APPLICANT: PALAMANUI GLOBAL HOLDINGS LLC (REZ 05-010)
Amendment to various conditions of Ordinance No. 06 105, which rezoned 725.2 acres from
Agricultural 3 -acre (A -3a) and Open (0) to a Project District. The property, which is referred to
the Palamanui Development, is located northeast of the Kona International Airport at Keahole,
between Queen Ka`ahumanu Highway and Makalei Estates Subdivision, Kau, North Kona,
Hawaii, TMK: 7-2-5:1.
WATANABE: Okay, as we did in last month's meeting, may I suggest that we discuss
Agenda Item Nos. 3 and 4 together, but obviously we're going to vote on this or act upon these
separately, yeah? But since they are directly related, if there are no objections, we'll go ahead
and address that or discuss it together. And so the applications that we'll be addressing now are
Palamanui Global Holdings LLC., there's a change of zone, REZ 09-94, and also Palamanui
Global Holdings LLC, amendment of various conditions in REZ 05-010. Mr. Hayashi?
HAYASHI: Thank you, Mr. Chair. Noriko is passing out several correspondence and
testimonies that were presented this morning. So perhaps if I could ask the Commission to
perhaps take a five-, ten-minute recess to read those correspondences.
WATANABE: I think that will be appropriate.
HAYASHI: Thank you.
WATANABE: But we'll, we'll be in recess for a few minutes.
RECESSED The Chair called a recess at 10:16 a.m.
RECONVENED The meeting reconvened at 10:26 a.m.
WATANABE: Mr. Hayashi?
HAYASHI: Thank you, Mr. Chair. Since all of you were here at the last meeting and
the presentation was done regarding the orientation of the property as well as the proposed
requests, there are basically two requests.
The first one we're considering today is a change of zone from a Project District, which is part of
the Palamanui overall Project District and taking a portion of that which is approximately 29
acres into the MCX zoned district. And the basic reason for that is that within the Project
District industrial type uses are not permitted, and the plan now by Palamanui is trying to come
up with some mixture of commercial/industrial uses. That is why they are coming in for this
MCX zoned district for this particular area.
The second request is the amendment to Ordinance 06-105, and that is relating to the Project
District that was granted back in 2006 by the County Council. The applicant is requesting
several conditions to be amended. And at the last hearing there were some concerns expressed
by the Commission as well as the public regarding the proposed amendment to the, amendments
to the conditions. We also requested that the hearing be continued in order that the Department
would have an opportunity to review the comments from the Department of Public Works and to
try to incorporate, work with them and incorporate some of their comments into a revised
recommendation. The Planning Department did work with Mr. Lee, the Director of the
Department of Public Works, to come up with revised conditions. After that was done we
transmitted a copy of the draft revised conditions to the applicant for their review and to find out
whether they have any concerns or suggestions for changes to the revised conditions. It is my
understanding that both Mr. Lee as well as the applicants are in accord with the proposed
amendment that has been presented to you, which is dated July 21, 2009.
Basically, I'd just like to go over the, some of the concerns that were expressed. And one was
the timing for the development of the 20 -acre park. According to the current ordinance, the
requirement is to have a 20 -acre park developed when the first single-family dwelling is
constructed. The applicant had requested that that be deferred until the issuance of building
permits for 101 single-family residential units.
The second is the proposed roadways which were originally Condition X and is now Condition
V under the proposed amendment. For your information, this condition was basically, as far as
the Department was concerned, it was kind of confusing when you read the initial ordinance and
the conditions. So we tried to reorganize it, and rearrange it so that it's more presentable and
readable and understandable, hopefully, for all parties concerned. One of the concerns expressed
related to the timing was the timing or lack of timing for the construction of the roadways. The
revised condition, Condition V, incorporates the timing as to when these roadways are required
to be constructed. For example, the new collector road which is -. And if I can bring up the
map, if you can bear with me for a second, we need to change these slides.
WATANABE: Okay, uh -.
HAYASHI: Anyway, basically, we needed to take a look at some of the timing
requested by the applicant as well as whether these, some of the other conditions of the roadway.
Okay, first I'll refer to this map. This is a project roads map that was submitted by the applicant
with the amendment. if you can go back to the next -. Okay. So this is the map that was
submitted as an exhibit for the amendment request to Condition, the roadway conditions. And
basically I'll discuss the roadways as we are amending. This roadway here is identified as
Roadway 4 or Connector Roadway 4 on the applicant's exhibit; we are now calling, referring
that to Roadway 1. It's the new connector road. And, basically, what we're doing is taking the
roadways established or identified in the Kona CDP. So hereafter we'll make references to the
roadways as noted in the Kona CDP. So this particular road which is a connector road is the new
connector road going up to Highway 190 that is being referred to as Roadway 1. We also have
this section of the roadway which is Roadways 3A and 3B on this particular map. And that
particular section of the map will be referred as Roadway 6A as identified in the Kona CDP map.
And that would be the Ane Keohokalole Road, Highway, and down the roadway -.
BOWMAN: I'm sorry, can you tell me, again, which, that's 1C, B?
HAYASHI: This is, no, 3A and 3B.
BOWMAN: Okay.
HAYASHI: This is called the mid-level road -.
BOWMAN: Okay.
HAYASHI: Or the Ane Keohokalole Road, okay, or Highway. And I presented this
just for identification purposes at this time. Roadways IA, 1B and 1C would be referred to now
as University Drive or Road 2 as noted in the Kona CDP. We also have this particular road
which is the Kamanu Street extension from Ka`iminani Street to the subject property, and that
particular road would be referred to as Road 3A, excuse me, Road 2, Kamanu Street.
3
And, finally, there is another section of a proposed roadway; and that's Roadway 5 on this
particular map. And that particular road would be referred to as Roadway 7, which is the
Kealaka`a Street extension. So if you look at this particular map, this is the Kona CDP
concurrency map; and the identification, again, this would be the subject property. This
particular road going mauka-makai up to Makalei Drive is the University Avenue. This
particular roadway running north -south identified as Road 3A is the Kamanu Street extension.
This particular road through the subject property extending beyond to the south, that would be
the mid-level road or Ane Keohokalole Highway. And this particular roadway would be an
extension of Ane Keohokalole Highway going north, then from there, extending to Highway
190, and that would be referred to as Roadway 1 as depicted on the Kona CDP Map. And
finally, the section of Kealaka`a extension is at this location — that's Roadway 7.
Now as far as the changes, after working with the Department of Public Works and the
Department of, excuse me, the applicant, we have come up with the proposed amendments to the
ordinance; and that is reflected as Exhibit 14 that was distributed to you. And that, the heading
for that is "Palamanui Development, LLC, Ordinance No. 06 105, Planning Director's Revised
Conditions of Approval, July 21, 2009." So basically there are several changes done.
First is Condition D which reduces the amount of the Project District area from 725 acres to 695
acres. And the reason for that is we took out 30 acres or 29 acres for the MCX area.
The next Condition G we also reduced that particular condition from 102 acres to 72 acres.
Again, that is because of the, placing 30 acres into the MCX zoned district.
On Condition N basically that was to, relating to the condition that said, "The project shall have
at least one residential unit for every 600 square feet of nonresidential development (under
root)." Basically the applicant requested that this condition be deleted, and we are in
concurrence with that particular request.
Condition Q states that "No retail commercial structures may be located closer than 1,500 feet
from the Queen Ka`ahumanu Highway right-of-way." And that is the applicant's request, and
we do concur with that. And the reason for that is the State Land Use Commission had amended
their decision and order to reflect an 800 -foot building structural setback from Queen K Highway
to, within the subject property.
And Condition S basically stated, again, regarding the construction of one single family dwelling
before the 20 -acre park site is developed; and we concurred with the applicant's request to defer
that until 101 single family building permits are issued.
And the Condition V which was Condition X under the current ordinance made, what we did
was we deleted that whole section and instead to organize it in a better format and to incorporate
some of the changes that we worked out with the applicant as well as the Department of Public
Works; and those are reflected on Page 5 through Page 15. And basically those are the changes
that we made to the proposed ordinance. Are there any questions?
WATANABE: Thank you.
A!
HAYASHI: I can go into the specific, if you have any questions, then I can address the
specific questions relating to the roadway and the timing and that kind of stuff.
WATANABE: Okay. Just for clarification purposes, we do note that the MCX zoning
change request did change it from the building, the commercial building area from a 1,500 -foot
setback to 800 -foot setback. But for clarification that 800 -foot setback was the original setback
set by the State and so we're not encroaching any further on Queen K Highway, are we?
HAYASHI: That is correct.
WATANABE: Yeah, yeah, yeah. And I just wanted to clarify, for the connector road
area, you know, that I believe you stated that was Roadway ] now which previously was
Roadway 4. Am I correct in that you have since negotiated a wider easement on that?
HAYASHI: Yes. Basically what it is is that since this section of the roadway will be
basically an extension of the Queen, excuse me, Ane Keohokalole Highway, through the State
property, we've decided to increase the right-of-way in that section to 120 feet.
WATANABE:
HAYASHI
WATANABE:
Yeah, from the -?
Okay, yeah.
Previous 88 -foot -?
HAYASHI: Correct, and the 88 feet would continue from this private, from this
particular location all the way to Highway 190. And just to let you know that as far as the
proposed condition, the timing for development of that roadway would be after the right-of-way
is acquired for both the State lands and the private lands, then the applicant would have six years
in which to complete construction of that particular roadway, connector roadway.
WATANABE: Okay, thank you. Fellow Commissioners? Mr. Housel, it looks like you
have some questions.
HOUSEL: Yeah.
HAYASHI: And one other thing I just wanted to point out, there were concerns from
the Makalei Estates Community Association regarding the connection of University Avenue
connecting to Makalei and becoming a through street. That would not occur until such time that
Road I is completed. So there is a condition that was in the previous ordinance, I mean, the
current ordinance 06 105 and also in the amended ordinance which is portion of Condition V.6
that states that that roadway will not be open as a public through street until such time as Road 1,
which is the connector road, is completed.
WATANABE: Thank you. Mr. House].
HOUSEL: Well, first of all, I'd like to really congratulate you, Norman, and Bobby
Jean and Warren, for going back and revising all the conditions and putting this all together. It
makes it so much easier to understand now. I really appreciate all the work you put into that. I
did have one question. The Kona CDP Map shows University Drive as a contiguous roadway
whereas the proposal showed it as two separate junctions with the mid-level road. Is this
correct?
HAYASHI: You're talking about this particular road?
HOUSEL: Yes, right. Does University Drive go straight through there?
HAYASHI: Yes.
HOUSEL: Okay.
HAYASHI: That is the same alignment as Roadway IA, B, and C that the applicant
had noted on his exhibit.
HOUSEL: Okay. On the other drawing it showed them as separate -.
HAYASHI: No, that would be the same.
HOUSEL: Same?
HAYASHI: Same roadway.
HOUSEL: Okay, okay. Thank you. And University Drive does go to the makai, link
with Makalei Drive, is that correct?
HAYASHI: At this particular -.
HOUSEL: That's all University Drive?
HAYASHI: Right there?
HOUSEL: Yes.
HAYASHI: Yes.
HOUSEL: That's University Drive all the way?
HAYASHI: Yeah.
HOUSEL: Okay. Okay, thank you.
WATANABE: Any further -? Ms. Bowman.
BOWMAN: I just have a question on the deletion of N. And is that, could you just
explain why? Is it because there are other contingencies as far as the residential development?
6
WATANABE: Oh, okay. Ms. Bowman, maybe I can-. That was a request by the
developer. And basically what they had stated was that the housing market, residential housing
market, has slowed down. So they're not changing the overall plan or number of homes to be
built. They're just changing the timing or requesting a change in the timing so that they could
then build out some of the, or subdivide some of these properties in that 30 -acre or so portion -.
BOWMAN: Right, I understand.
WATANABE: As-. Yeah.
BOWMAN: But I guess because then later we say like with the park development that
it's after 101, so this ensures that there will be residential development.
WATANABE: Uh -.
BOWMAN: Okay.
WATANABE: Yeah.
BOWMAN: Thank you.
HAYASHI: And what you were referring to is the Condition N in the original
ordinance.
BOWMAN: Right.
WATANABE: Any further questions? Okay, thank you, Mr. Hayashi. Since this is a
continued hearing — you know, ordinarily we would have the applicant come up at this time — but
I do have a number of people from the public who have signed up to testify, and so I'm thinking
that if we switch the order of this and have public testimony first, then that may save us some
time in that the developer, the applicant would be able to come up and address whatever
concerns they may have as well as other concerns that may come up from the public at this time.
Otherwise, 1'd have to call you up again. And if that's okay with you, then may we proceed that
way?
OKAMOTO: Mr. Chairman, that's fine with the applicant.
WATANABE: Thank you. So, let's see, we have four seats up here and I'll call them in
the order that they have signed up. I have Janice Palma-Glennie, Mike Reimer, Marni Herkes
and Steve Lopez. Would the four of you come up, please?
HAYASHI: Mr. Chair?
WATANABE: Yes.
HAYASHI: Also, Ijust want to include that all of the testimony and written, the letters
that came in today will be made a part of the official record.
WATANABE: Thank you, thank you. Okay, so if I could swear you all in. Would you
please raise your right hand? Do you swear or affirm to tell the truth now before the Planning
Commission?
TESTIFIERS: I do.
WATANABE: And maybe we'll start on this side. For each of you, would you state your
name and address prior to providing your testimony? And we'll begin with you, sir.
LOPEZ: Steve Lopez, 72-1167 Makalei Drive, Kona.
WATANABE: You may begin your testimony.
LOPEZ: Thank you, thank you. May I ask a question of what I just heard?
WATANABE: Sure.
LOPEZ: Okay. I heard the recommendation was to begin the Roadway 4 — I'm still
going to call it Roadway 4 because that's the -.
WATANABE: Oh, okay, but Roadway 1, the connector, and so you're -.
LOPEZ: Thank you. That was six years from the, after the time of the right-of-
ways were secured, but there was not any indication of a timeline to secure the rights-of-way. Is
there one?
WATANABE: That would be rather difficult -.
LOPEZ: So this could go on -.
WATANABE: To establish.
LOPEZ: So this could go on indefinitely then, potentially.
WATANABE: Potentially.
LOPEZ: Okay.
WATANABE: But I would assume that your concern would be the connector to Makalei
Subdivision. And if that is your concern, that was addressed.
LOPEZ: No, my concern is -.
WATANABE: Oh, your concern is strictly for a mauka-makai connector?
LOPEZ: Is the mauka-makai connector, yes.
WATANABE: Okay, okay.
y
LOPEZ: All right. First I want to thank you for the consideration of the stated
agenda items, Items 3 and 4. I thank you very much for the earlier vote to postpone until more
information may be gathered. As you know, it's a lot of detail and the devil really is in the
detail. And when I first was presented this in the presentation by Palamanui to few members of
the Makalei Estate, it seemed pretty benign. But as you start to dig in, some things came to light.
I request your vote to deny this change of zone request and require that Palamanui demonstrate
reasonable efforts that they will complete Road 4, now Road 1, prior to hearing any request for
changes to Ordinance 06-105 or zoning changes.
It doesn't appear that there have been due diligence applied in three years for that collector road
to be, to grant the, excuse me, to seek right-of-way or any progress made at all on that behalf.
It's been three years since the law was passed.
It would appear that history may be repeating itself. And I cite the 2006, I believe it's the 6, it
might have been 5, Clifto's request for rezoning of O`oma project. In that rezoning request,
Clifto advertised their property for sale, contrary to their outward message to provide affordable
housing, with conditions that required zoning changes. And this was before any approval for
their zoning request was approved by County Council. Fortunately then Mayor Harry Kim
vetoed the approval after much public outcry. His rationale was that we cannot put more traffic
burden on our roadways before improvements were complete, specifically the widening of the
Queen Ka`ahumanu Highway. As a side bar I just learned this morning that additionally in 1992
there was a, Parker Ranch connector road was required to go before any commercial or
residential occupancy. In 1996 the developer asked for a change. And it wasn't until legal
proceedings in 2006 that that roadway is under construction now and due to be done next May.
So it took legal action to bring that to case, after the developer said they would do it and then
postpone for a change. So we're really in history potentially here.
Today, Palamanui is seeking a change in zoning to improve their profit position, not in itself a
derogatory remark, but, and to delay the commitment to the people of Hawaii County for a
sorely needed mauka-makai connector. As recently as Monday, July 20`h, which incidentally is
no longer on line, in loopnet.com there was an offering to lease these 70 acres at Palamanui
called the Trade Center. And the complete text of that ad, which you cannot find online any
longer, is cut and pasted into this document that I presented you. What really struck out to me
was that in this offering they're saying that there's an access, future access granted, access to
Mamalaboa Highway and Makalei Drive. There's never any reference to a collector road, Road
1, Road 4 or anything else.
The Palamanui petition being heard has yet to even have a preliminary decision but yet they are
advertising the Trade Center for access to Makalei Drive. What about Road 4 and what about
Makalei Drive being designated a minor road? We can only project that our history indicates
they have no intention of building Road 4 and will later seek to overturn all critical aspect of
Ordinance 06-105. This advertisement further explains their desire to change commercial zoning
to allow warehouse and distributor buildings, commercial building closer to the highway, and
delete the requirement of more than one home for every 600 square feet of building space
constructed. The proximity to the airport and this zoning change for multi -use will result in
another industrial park within short miles of others — Kohanaiki, NELHA, and Costco. This is
contrary to the "retail center" that was sold to us all. All this serves to exacerbate existing traffic
9
problems on the highway and surely creates a serious hazard and County liability with use of
Makalei Drive for these purposes.
I urge you to look carefully and keep the needs of West Hawaii citizens foremost in your
decision making. We have been a mushroom far too long and there remain too many
unanswered questions of why three years have passed with no effort on the part of Palamanui to
honor their agreed commitment in exchange for concessions made by Hawaii County citizens.
Difficulty in obtaining financing was hardly a sound reason three years ago and we are not so
ignorant to know that projects of this size are now planned and funding arranged years in
advance.
In a recent meeting with Palamanui representative Roger Harris, he was reminded of Ordinance
06-105 Condition Z that construction vehicles should not utilize Makalei Drive. His reply, he
felt he didn't, this did not apply to Palamanui's need to cross the lower boundary for upgrading
the water system in Makalei that is needed for the Palamanui project. Is he the one who decides
when the law is applicable and to whom?
Representing myself, mahalo nui for the opportunity to be heard and your attention to this
testimony. Thank you.
WATANABE: Thank you. Fellow Commissioners, do we have any questions of Mr.
Lopez? Seeing none, thank you for your testimony. I failed to mention this earlier but, you
know, we do have a fairly significant amount of people that are going to testify. So before we
move on, let me make this clear. Please let's not be redundant and try to be concise; and I'm
going to contain you to three minutes, okay, of testimony. Otherwise, the proceedings can
extend significantly. And with that, maybe I'll turn it over to you, Mami.
HERKES: Thank you very much, Mr. Chair. I'm Mami Herkes, Post Office Box
571, Holualoa 96725, and I will be short. You have a copy of my testimony. As usual you have
a copy of everybody else's. I am speaking in support of the Palamanui development with which
I am familiar. And I admit to some disappointment that this development is unable to unfold in
the manner in which it was planned. I look forward to a new paradigm for electricity, a new
paradigm for waste disposal, parks, roads, and commercial, although on the road section I must
say that we are overloaded right now because everybody is out of work. So if we need more
roads, we're going to have to put more people to work because our roads are empty, our parking
lots are empty, and our stores are empty. This was going to be the first development that
exemplified the Kona Regional Plan Transit Oriented Development but other things intruded,
like a failed economy.
I must admit that this is not the only disappointment this economy has delivered: a retirement
that was pitiable in the good days and now is even more so; a car dealer with whom I still have a
maintenance contract but has disappeared; restaurants closing; no super ferry to ride and two
sons out of work. So I am impacted as well as developers by this economy.
But I like to look on the bright side of things; and there are some good things also. Some bright
horizon happenings that give me hope are Target opening in Kona; Thirty Meter Telescope
choosing Hawaii; the Kona Regional Plan being implemented, and that was wonderful the day
10
that this has all changed around to fit the plan; Kailua Village Improvement District moving
forward; Kona Heritage Corridor being the first scenic byway in the state; I forgot to add Hotel
King Kamehameha renovation; the 50 -year Billfish Tournament which is going on now; Saddle
Road, another segment of Saddle Road dedicated in August; the County building the mid-level
road with stimulus money; the master plan for the County Civic Center TOD has begun; Forrest
City moving ahead with their TOD and affordable housing; Pelekane Watershed improvements
funded with stimulus money; and, amazingly enough, a developer that is willing to invest
$23,000,000 in the Kona community which will result in the first phase of a Hawaii Community
College, Kona campus. This appears to begin the completion of a dream a lot of us have had for
20, 30 years at least. We want to move out of the Foodland buildings. We may move the
college out and then we move the County out; and, who knows, Foodland may come back with a
bigger store. This appears to begin that beginning. And I really did not think I would see that in
my lifetime which is getting shorter and shorter. So we need to do something soon.
However, this is one phase of this development that can be funded right now and I encourage
you to clear the way asfar as you can. We need the jobs the construction will bring but even
more we need this kind of uplift that this investment brings. And it's all good.
I'm also going to say that in the hearings to come, the industrial area along Queen Ka`ahumanu
Highway needs to look good; and it needs to look not like Kaloko and not like Nimitz Highway.
I'm aware of the fact that the plans for the airport, which is going to be across the street, will
come out to Queen Ka`ahumanu; and that also needs to look less industrial. Because it is a
major highway, we want to keep that major highway as beautiful as we can. I sat through hours
of Planning Commission hearings trying to keep Kaloko beautiful and keep it a highway that
wasn't lined by industrial. And they built a berm which we thought was great but then they built
the buildings up over the berm. And I'll never forgive Sidney Fake for that, and he knows it.
However, we're going to watch you guys to keep that, and the County Council. Thank you very
much. I see your fingers, Norman. Thank you very much.
WATANABE: Okay, Marni. Fellow Commissioners, do we have any questions of Ms.
Herkes? No? Thank you for your testimony. You must be Mr. Reimer?
REIMER: Yes. Thank you for the opportunity to testify today. I will keep this short
as I agree much with the two previous speakers, so I will say I'll donate the balance of my time
to the two previous speakers. Today I want to testify from the heart. I was really thrilled to see
this development go in that was so consistent with the desires and please of the people of the
County. And I do express my disappointment to see that there are now major changes proposed.
1, we've been down this road before where things have been promised, then they have been
changed for whatever reason. And Ijust want to ask you to keep this a two-way street and don't
think of just today, think of the future. Yes, the roads and the parking lots seem to be empty
today, but they weren't before and they won't be tomorrow. So I don't see your responsibility is
to help make a private enterprise a profit; but your responsibility is to the people. And I ask you,
I plead with you, to get guarantees and not just live on promises. Thank you.
WATANABE: Thank you. Do we have any questions of Mr. Reimer? No? Thank you
for your testimony. Janice.
PALMA-GLENNIE: Aloha. My name is Janice Palma-Glennie and I reside here in Kona. And
I'm sorry I have written testimony and I don't know how to make it three minutes at the moment.
Anyway, I'll do my best. It remains unclear to me as to whether a project like Palamanui, which
was approved before the Kona CDP took effect, has legal requirements that amendments made
after the CDP became law, on whether they must follow those guidelines. I've been closely
involved in the CDP process since its inception, and feel that the answer to this question is
paramount to Commissioners, the public and developers in understanding how to proceed when
the situation arises.
Specifically, my concern is that CDP concurrency requirements be strictly adhered to. I don't
believe the concession should be made in creating viable sustainable communities dependent
upon a landowner's or developer's shifting financial situations. The excuses that the things are
so good economically that there's not enough time to follow requirements or things are so bad
that there's not enough money are exactly those that have left Kona so bereft of infrastructure
and public facilities.
Widening easements is not a replacement for providing adequate numbers of roadways to and
from a project and in the region which must support the project. Additionally, facilities like
parks, Section S, that are integral to creating a balanced project and community once delayed
often never come to fruition, which has been the case of the YMCA which was promised to
support the Kona community's recreational needs as well as hugely expanded residential
development. The subdivisions, Alii Heights and Keauhou View Subdivision have now long
existed -. Excuse me, I can wait until you -. I can wait -.
WATANABE: No, I'm sorry.
PALMA-GLENNIE: Cause I don't have written testimony to give to you.
WATANABE: No, go ahead
PALMA-GLENNIE: Thanks, thank you. I'm sorry but I'm taking work off and I've spent a lot
of time thinking about this. This subdivision has now long existed with no YMCA in sight.
Fears that outsiders to the Palamanui development will use the promised 20 -acre park show a
disregard for the needs of the wider community and the park which all stakeholders must share in
their commitments to the community's well being.
Removal of Section N is also disturbing, especially when so many other concessions are being
asked for by this developer. Mixed-use language and its existence are by, are key to adherence
to CDP guidelines.
Last, it's more than unnerving to see a developer put units of their project up for sale before
proper permitting is in place. Makalei and University Heights immediately come to mind. And
certainly Hokuli`a is an example which this community recognizes as an economic and political
fiasco largely related to jumping the permitting gun.
I hope that this committee will respond to its mandate to change business as usual and to
business that serves the future needs of the community. Mahalo for denying this zoning request
until concurrency and community benefit issues are firmly resolved. Thank you very much.
12
WATANABE: Thank you. Fellow Commissioners, do we have any questions?
BOWMAN: I do.
WATANABE: Yes, Ms. Bowman.
BOWMAN: Thank you for your testimony. And because I don't live in Kona, I'm not
familiar with all the parks that are here. But if, I've seen Airport Park and I know that, you
know, I've driven by a lot of times, and it's not used much; but there are seasons when it's used a
lot. And, you know, I do have concerns for a park, especially where I live. And i look at the
location of the park and, until there are other residential or the university, I'm just wondering if
people from Kona, and this is just for my information, would drive out to utilize the park that's
so far away. I could understand it once the residential units are built and certainly the university.
So maybe you could just shed some light on that. Thank you.
PALMA-GLENNIE: I used to live in Kalaoa, I don't now. But I always felt that there was an
extreme lack of park facilities and open green space that was accessible in the Kalaoa area. I do
believe that people that are driving to, you know, even Higashihara Park or, I mean there are
people that I do think would use that park. My greatest fear is that that park will not happen.
And I just have been here too long and gone through this so many times, I think as Steve was
mentioning, to see how these plans are, look really nice and it looks like after 100 homes are
built that there will be a park. But it just doesn't happen. The YMCA, as soon as, I mean that
was supposed to be built in Alii Heights Subdivision, Keauhou View, as I was saying. I mean
there is no, I haven't heard of anything happening with that. And there were a lot of people who
were really counting on that, and I don't know how that's ever going to be resolved. When the
property owners nearby now say that they don't want to have it there, what will happen with
Palamanui? Will the same thing happen? They'll say, well, now there's going to be too much
traffic, even though they bought into the area knowing that there would be that park. That's the
kind of thing that holds it up. And then if it's financial or whatever it is -. I mean I just feel like
this developer got their permits with these restrictions, everyone went back home saying, okay,
you know, I got this, you got this. And this is a typical thing where here we are again discussing
the concessions that they want to have because, you know, the bottom line isn't going to be as
rosy as it was going to be. I just, I just have a lot of fears about that based on past experience
and what's existing right now.
BOWMAN: Thank you, thank you.
PALMA-GLENNIE: Thanks for the question.
REIMER: May 1 briefly respond to your question?
WATANABE: Generally we don't go back, but I'll allow it if it's very short.
REIMER: Yes, yes, it is. To answer your question, 1 live in a condominium complex
that is very child unfriendly. And as far as going to parks we actually have some organized
parents who will carpool kids to various parks. So we have nothing close and therefore people
will probably from outside of the area use that park.
13
WATANABE: Okay, thank you. If there are no further questions, then the four of you
may be seated and I'll proceed with the next testifiers. I have Denny Coffman, William Trask,
Bo Kahm and Walter Kunitake. So would those four individuals please come up? Okay, may I
swear you in? So would you raise your right hand, please? Do you swear or affirm to tell the
truth now before the Planning Commission?
TESTIFIERS: 1 do.
WATANABE: Okay. And, again, as a reminder, please state your frill name and address
prior to providing your testimony. And shall we begin with you, sir?
COFFMAN: Yes, so my name is Denny Coffman. I live at 77-258 Ho`oka`ana Street
here in Kailua-Kona. And I'm the State House representative for District 6 but I'm not here in
that official capacity. I'm here as a citizen. And before I begin I want to, again, these are my
opinions about development -. 1 believe in developers going into an area and what we as
community members give them, we give them zoning changes which changes the value of that
land; and for that privilege and that zoning change we agree to public infrastructure, fair share
items. Okay? And I'm saying that because 1 see several items tied into these documents that
talk about occupancy. There is nothing that requires a developer to build anything. They can
sell all the land off. And I see everything tied to subdivision approval. So that's kind of my
basic theme here. And part of that is is that we the citizens should not be part and parcel to their
risk. The developers look at the land, if they can get this zoning, this many lots, it's their risk to
be able to sell that land; and if they're going to build houses on it, that's a secondary risk. So all
we're doing is trading off zoning and they owe us the infrastructure that we've agreed to.
Having said that, my specific recommendations, I can agree with, you know, pulling out that
29.92 acres and allowing the commercial, MCX-20 zoning. I think that's a fair request on their
part. But as a condition of that, I think they need to start construction; and this gets a little
confusing. And if you take a look at the Road 2, from Queen Ka`ahumanu up to the intersection
of Kamanu Street, which is, which would take you to the university -.
WATANABE: The lateral connector?
COFFMAN: Yes. They need to build that. And they need to build a portion of the
Kamanu Street that takes you into where the university -. The university land is 72 acres of the
500 acres. All we need is development for that first section when they -. And this will all be
predicated upon once they get subdivision approval for that 29 acres. In other words, they have
the right to start selling land. But 1 see it has a fair tradeoff. And also part of the condition is
that $5,000,000 towards as much of a building, the first community college building, they can
build. So 1 think that's a fair tradeoff. They get commercial property they can sell. And if you
look at the condition for occupancy, they may build some commercial space in there. But I think
they'll, if I were them, I'd be looking to sell that land to various companies for development.
Regarding the Section U, the 20 -acre park, again, the same theme here. I think construction
needs to start with the approval of the first residential subdivision in that development. And that
park needs to be completed either within two years from the start of construction or possibly with
the first occupancy permit, whichever -.
14
And then regarding the conditions for Road 1, I found this interesting that we even get into an
agreement that the developer can't, is not, cannot be responsible for. I mean we've got right-of-
ways within State land and we've got right-of-ways in private development. I think that's
problematic. And what 1 think I would set up and make is a condition that at the point in time, if
you take Road 3A, excuse me, 6A on that map, if they start residential subdivision approval
above 6A, then they have a requirement to start building Road 1. And, of course, the conditions
there, if there are no right-of-ways available from the State or that private developer, then I think
we need -. And I put a number in my recommendation, I know this is with the fair share value,
of $10 million in lieu of building that road; and they just give that to the County who I would
hope would put it into an escrow account to build that road when they get the right-of-ways. If
this, if only the State portion of the right-of-way is available for them, then they build on that
portion of it up to where the private developer owns the land; and then they pay a, again, this is a
number I pulled out of the air, and that's what the fair share value would be, but say $5 million to
put into this escrow account; the developer is free to go forward. If we have right-of-ways all the
way to the top then the developer would build the road all the way to the top.
And the reason I'm saying all this is that I've seen too many developments around here where
you put these funny conditions that can never be met. I mean the developer can sell all their land
and go away and we're sitting there with, we the public don't have our facilities. So I think we
need to tie these things all down. Commissioners, I thank you for your time.
WATANABE: Thank you. Fellow Commissioners, do we have any questions of Mr.
Coffman? Doesn't look like it. Share the mike. Would you state your name and address, please,
for the record?
TRASK: Yes. William Kaluakini Trask, 79-7224 Mamalahoa Highway, Holualoa,
Hawaii 96725.
I'm president of the American Culinary Federation Kona Kohala Chefs Association. Our
organization has over 70 members comprised of resort chefs, cooks, restaurant owners, food
lovers, culinary students, educators, culinary industry suppliers, agricultural specialists and food
producers.
The Kona Kohala Chefs Association is committed to raising $1,000,000 in monies and/or
equipment, kitchen equipment, for the Culinary Arts program at the new Palamanui West Hawaii
Community College.
The Chefs Association feels that further delay of construction of this campus would be highly
detrimental to the economic and educational well being of our community. By now, you, the
Planning Commission should realize that this project, especially the West Hawaii Community
College, is a very positive move in the direction of establishing economic stability with jobs for
our construction work force and business for our building suppliers.
Further benefits of establishing a first rate, self-sustaining ecologically responsible Culinary Arts
program in West Hawaii would definitely upgrade the caliber of food service professionals
sorely needed in our hotels and restaurants at present.
15
The Kona-Kohala resort area has become an international culinary destination because of the
establishment of our Hawaiian regional cuisine by our local chefs and the world-wide trained
chefs being brought in by all the high-end resorts and restaurateurs.
Add to the fact that as of a week ago, the #1 Student Culinary Team in the United States is a
product of the University of Hawaii Community College System. The Kapi`olani Community
College Student Culinary Team on Oahu received gold medals and were named American
Culinary Federation 2009 National Student Team Champions at the National Chefs Convention
in Florida. Palamanui will also be a Community College that will be able to produce such a
team.
As to those in the community who are saying that "if we give into all these concessions now,
they will not be put in at a later date," well, Palamanui Global Holdings has a contractual and
obligatory responsibility to the community to complete their development per their agreement
with the County of Hawaii. Besides, Planning Commission meetings like this will keep them in
check and give the public opportunities to voice their concerns as needed
Requiring, at this time, Palamanui Global Holdings to put in an upper access road or a park,
when the housing has not of yet been built, seems to be a bit ludicrous. It's time for the
Commission to think of the well being of West Hawaii community and agree to the changes
being requested by Palamanui.
Thank you for your time and positive consideration of this matter.
WATANABE: Thank you. Do we have any questions of Mr. Trask? Doesn't look like it
Bo Kahui.
KAHUI: Aloha.
COMMISSIONERS: Aloha.
KAHUI: My name is Bo Kahru. I live at 74-5146 Halealono Place in the Kaniohale
Community Homestead within the villages of Lai`opua.
I submitted my testimony in support of the changes with respect to the conditions of Ordinance
No. 06-105. Now having said that, you have my written testimony.
Someone earlier said that they wanted to speak from the heart. Well, us guys, us native
Hawaiians, we speak from the na`au, so I'd like to speak from na`au.
I'm the only person in my family that has graduated from the University of Hawaii. And for
many years when you look at the demographics and the education of Hawaiians, we oftentimes
forget how to serve that community, or how to build that community up with respect to their
educational future. The proposal you have before you today in effect will help accelerate the
building of that community college. And as a native Hawaiian and a leader of our community,
we need to get that community college started. It's long overdue. When you look at the regional
demographics in particular, the urbanization of Kealakehe, Keahuolu, Palamanui, and all of the
West Hawaiian region starting from Palani Highway across the west region, you've got to start
16
today, not tomorrow. We need to find a way to provide an educational institution in which we
can begin to break this whole cycle of non -education, particularly for our native people.
So when I, when I think about a park, I just went, spent three days with Mr. Kane, uh, Mr.
Kunitomo at the regional airport charrette, three days we hung out, tried to figure out what we're
going to do with a park, you know, how can we address the parks in our region, if not to make
more parks. But ultimately we said we'll go over there where the golf course was, cause nobody
over there. The County owns that land. And we signed a petition, gave it to the Governor and
the Governor agrees, although I think now it's in the County's hand. And so I urge the County,
and Bobby Command is in the house, to accelerate that plan so that we can offer our
communities better opportunities in the recreation area.
Now, don't misunderstand me. I mean I think Palamanui is obligated to provide that community
park for that community; and that should not go away. But should we build the park now? Then
for whom? Do we need the park, the regional park, on 200 acres in Kealakehe? I say, I say yes.
When you look in terms of what's happening in Kealakehe and Keahuolu, 5,000 units are
coming, 5,000. That's 20,000 people if you average that out at 4 people per household. We've
got Hawaiian families living in our garages because of the economy. And, likewise, for
Palamanui when we look at the economy and you cannot sell these homes, I mean, you know,
these are high market homes. So delaying the park, I don't believe it's an unreasonable request.
But when we look in terms of what we need today about bringing to fruition our institution, or
our educational institution, the community college, that needs to start right away. And the
connectivity to which this region is going to have through Ane Keohokalole Highway, is more
critical because access to that is going to enable our communities from the south to go north to
Palamanui. So we encourage this Commission, or at least I will, to approve and support this
petition by Palamanui, so that we can start to look at a brighter future for our kids, yeah, with
respect to the building of the community college. Mahalo.
WATANABE: Thank you. Fellow Commissioners, any questions? Does not look like it.
Thank you, sir. Mr. Kunitake?
KUNITAKE: My name is Walter Kunitake. My address is P. O. Box 365 Holualoa,
Hawaii 96725. Thank you for this opportunity for me to appear here to make comment. I fully
support the application for the deferrals and the amendments that is being requested.
I am the former UH West Hawaii director. And the community worked very hard for about,
from 20 years ago to get this 500 acres that's over at the Kalaoa site next to the Palamanui
property. And as you know, for many years it's always been a very hard press to get funds to get
any project of this magnitude started, and I think we are very fortunate that we have Palamanui
that came on board as a neighbor who supports the university, community college in this case, to
get started. You may have heard how hard pressed we were in the Foodland building up at
Kealakekua, and we still are there all crammed up in small classrooms and hard -to -access place.
So I think we are looking forward to this new site.
Being a little selfish, you know, I don't see any of the amendments and deferrals that will impact
negatively on the start of the college. In terms of the earlier comments about Roadway 1, the one
that's connected up to 190, you know, I strongly suggest to the developer that as we heard from
prior testimonies, that we have kind of lost trust in some of the prior developments, and I think
17
developers have to be part of the community and come through. So when we say it's a deferral,
that the deferral should not be indefinite. So they should come through and set a good example
in the community that says developers are good guys, too. So in that way I support some of the
earlier comments about the connector road up to 190, that it should be done in a reasonable time.
We are not subject to no access to this place because we do have Ka`iminani and the roadway
that comes down to Costco. And in terms of clarification -. Well, I'll make a comment first.
My understanding is that the commitment by Palamanui is that they will provide the
infrastructure that goes across from the University Avenue out to Ka`iminam and I think it's in
orange right now, not the mid-level road but the one below that — that part of the commitment to
this development is that they will provide all the infrastructure includes the roadway, the sewer,
the water, that goes clearly, clear across to Ka`iminani, which means that we have access to this
area from Ka`iminani — it's really above the letter `B", capital `B", that orange one that goes
across — and also from Queen Ka`ahumanu. So in that regard, we do have connector roads that
will access this place from two sides. And as far as I understand the application, that it does not
change any of the earlier commitments on that infrastructure development coming from Queen K
and Ka`iminani. So as Bo had indicated earlier, that we are trying very hard to get the
community college to get going. And we understand the realities of hard economies. So I think
it's a reasonable request to adjust a little here and not to basically adjust in a way that they are
reneging on the original contract.
One further comment, and this is really kind of off the agenda, the community as a whole
worked very, very hard to get the 500 acres. And we know we are talking about 70 -plus acres
here for the university. But whoever is in the room including the Planning Commission here,
please don't lose sight of the 500 acres because I think we are looking for the long haul here. So
whoever has the powers to retain this 500 acres and not lose the 500 acres, we are moving on
with this 70 -plus acres, but please do not forget the 100 acres (sic) because it was a long battle to
get this 500 acres and it was a rare opportunity. We got it, please keep it. Thank you very much.
WATANABE: Thank you, Mr. Kunitake. Do we have any questions for Mr. Kunitake?
Does not look like it. Thank you for your testimony. You may be seated. Let me call on the
next four. This would be Jim Lally, Mark Van Perris, Carl Carlson and Bucky Leslie.
GIFFIN
WATANABE:
Mr. Chairman?
Yes.
GIFFIN: While you are seating the next four testifiers, could I ask what our
schedule is, like, are we going to have a recess soon?
WATANABE: Can we -?
GIFFIN: I can wait for these four, but I do want to know -.
WATANABE: Okay, why don't we, okay, good. Why don't we take a recess after these
four testifiers?
GIFFIN: Fine.
18
WATANABE: Okay? Okay, let's see, can 1 swear you in then? Would you raise your
right hand, please? Do you swear or affirm to tell the truth now before the Planning
Commission?
TESTIFIERS: Yes.
WATANABE: And as previously requested, would you state your name and address prior
to providing your testimony? We'll begin with you, sir.
VAN PERNIS: I'm Mark Van Pernis, and I live on Ho`opai Road in Makalei Subdivision.
First, before I start the testimony, I intended and I want to respond to Commissioner Bowman
who, you know, I was flabbergasted to hear from her that she thought the Old Airport Park was
lightly used. I think if she checks with the County, she'll find that it's one of the most intensely
used parks in the county. I know I can't get baseball games and soccer games scheduled there
because they are always booked up for weeks and months in advance. And if you go there,
you'll see it's a very intensely used park. And the regional park that was mentioned by a
previous speaker, I've been in Kona 30 -some years, it's been on the agenda for 30 -some years,
it's not closer now than it was then. And it's funded by the State, and I don't think, I'm not
optimistic I'll see it in my lifetime. And I think it's a situation where parks provided as
infrastructure contributions by developers are absolute necessities.
First of all you may recall that at the prior hearing here on this matter the developer said it was a
mistake that their application for revisions called for the use of Makalei Drive as a quasi -
connector road. Now I assume they'll say it was a mistake that they were advertising to lease,
sell or flip the property, which was recently reported in the newspaper, and that it was a mistake
that they, in that advertising that Makalei Drive was mentioned as a connection to Mamalahoa
Highway. Upon direct request by the Makalei Owners Association whether they would support
the Association's gating of the part for Makalei Drive to insure that it wouldn't become
Palamanui's de facto connector road, we received only a non -committal platitude in response. I
think it just demonstrates a need for specific time conditions to avoid any uncertainty or base
adjustment in the future. I think the proposal before you should be amended to, so that it states
specifically that Makalei Drive should not be available for access to and from the development
prior to the completion and opening, and opening, of the connector road. I think there should be
an amendment to require the construction of the park. I think you've heard general spark from
the testifiers here. I think what's very important also is that the bond or security deposited in
escrow, whatever the security arrangement is going to be for the connector road, must have an
escalator such as a consumer price index to provide for escalating cost over time of the connector
road. This is an absolute necessity, if you and the rest of the County are not going to be gullibly
flimflammed again with promises of infrastructure from the developer that never gets delivered,
like Waimea, like Hokuli`a, so that the County is left holding the bag, an only half-filled bag. In
other words, just like in, it was Hokuli`a who I don't believe will ever build that road all the way
through; the bond that they put up is based on 1998 prices, there is not enough money to
complete the road. And we well know what Hokuli `a's financial condition is at the moment.
Now this particular developer promised to provide public infrastructure in exchange for millions
and millions of increased value provided by the County permits and approvals. Now they seem
to be interested in being bad neighbors to the community generally — they still have the hook of
the community college — by asking for a waiver and a reduction of all of these benefits that they
19
promised in exchange for the increase in the value of the property that they received. They do
this because they represented they can't get the financing they want, but I don't see any proof of
that and 1 don't even know what financing that they are asking for. When economic conditions
improve, such as they realize greater profits and income, are they making any commitments to
return some of the benefits that they are asking you to waive and defer now? Of course not.
Once these benefits are waived or deferred, that's permanent; it's a one-way street. You're being
asked to join their team to relieve them of the promises to the community while keeping all their
benefits, and in fact get more, all at the public's expense. I would just ask you to think about
whom do you represent. Thank you.
WATANABE: Okay, thank you. Do we have any questions for Mr. Van Perris?
BOWMAN: Mr. Chair?
WATANABE: Ms. Bowman.
BOWMAN: Am I -? Is it on? Under the new Condition 6, 1 guess, it states that
"Makalei ... is a `minor road' and will not be open to the public as a through street until Road
I," and it says "is opened for public use." Does that equate for you that it will be -.
VAN PERNIS: I would ask the condition to be more specific, that the connector road be
completed and opened to public use -.
BOWMAN: That's what is says -.
VAN PERNIS: Before Makalei Drive can be utilized. And in that respect Makalei Drive
is being proposed to be used for -.
WATANABE: No, Mr. Van Pernis, with all due respect, actually it does state that right
now — the revised, not the original that you looked at at the prior -.
VAN PERNIS: If, if I could finish my statement here. There is also condition that
Makalei Drive not be used for construction vehicles; I would ask that that specific requirement
be made more specific by saying construction vehicles not only of Palamanui, their contractors,
also their grantees and lessees, because we have a situation where it's not enforceable. This
condition is not enforceable, if they for instance lease property or sell property to someone and
then they start running their construction vehicles up and down Makalei. There has been
discussion about, well, Makalei can be used for water construction or water improvement
constructions. We need specific requirements that no construction vehicles be utilized on
Makalei no matter, in relation to this project not just the, not just binding on Palamanui because
otherwise we are in a situation where -. What are we to do when these trucks are gliding up and
down on our 18 percent grade road? Call the police? We need something specific that we can
refer to.
WATANABE: Okay, Director -.
BOWMAN: Condition X states, "Construction vehicles shall not utilize Makalei
Drive."
20
VAN PERNIS: What, whose construction vehicles, ma'am?
BOWMAN: It says "construction." So I think it's even maybe more inclusive because
we are not necessarily talking about -.
LEITHEAD TODD: Mr. -.
VAN PERNIS: Well, I'm in a legal business -.
BOWMAN: Okay, thank you.
WATANABE: Okay -.
VAN PERNIS: I'm in a legal business and what I'm saying is that -.
WATANABE: Ms., Ms. Bowman -.
VAN PERNIS: That's not enforceable against anybody other than the parties to this
particular document, and that means Palamanui -.
WATANABE: Okay.
VAN PERNIS: If, if, and I would ask that no construction vehicles of Palamanui or any of
its contractors, lessees or grantees. I would ask for that clarification.
WATANABE: Okay.
BOWMAN: Thank you.
WATANABE: Madam Director.
LEITHEAD TODD: Mr. Van Perris, is, is, if I'm understanding you correctly, you are saying
that if they have to do water improvements, which have to be done on Makalei Drive in order to
bring water down to their project, you are saying that you don't want to have any of that work
done on Makalei Drive -.
VAN PERNIS: No, I'm not saying, I'm not saying that because I think the understanding
is that water improvements will be constructed using Makalei Drive. But when you have a
vague and unenforceable provision that says "no construction vehicles" in an ordinance, that's
only going to be binding on Palamanui, not their contractors, not their lessees, not their grantees.
When these other folks are using Makalei Drive and start going through the gate at the bottom,
then, which is controlled by an entity of Palamanui, then we are in a situation where we have no
enforceability.
LEITHEAD TODD: So if I understand your concern, it's that any construction vehicles that are
headed for construction activities on the Palamanui property would be prohibited from using
Makalei as an access to the Palamanui property.
21
VAN PERNIS: That's correct. And not only Palamanui but any of its grantees, lessees,
anyone in that category. Without that, we have an unenforceable provision. Your ordinance
doesn't bind anybody but Palamanui and the County.
WATANABE: Okay, well, thank you for your comments. Name and address, please, sir.
CARLSON: My name is Carl Carlson. I reside at 73-1515 Apela Place, Kailua-Kona.
I was born on Maui, have been on the Big Island since 1968, and moved to West Hawaii in '69
to be the manager at Huehue Ranch. Palamanui is formerly Huehue Ranch Land. And although
they sold the land prior to my being there, we used to run cattle there and I hiked the area; I
know the land intimately.
My passion, however, really is education. And I'm here to speak on behalf of Palamanui for
deferral, just for the deferral of their timing. And I'm doing so for a number of reasons.
University of Hawaii had started a program here in Kona as a community college level back in
1983. My wife along with two other women were the first graduates of that program. Then they
went on to University of Hawaii at Hilo and commuted and graduated in 1998. In the '70's and
early ' 80's 1 was a member of the Board of Regents of University of Hawaii. I currently am
serving again as a member of the Board of Regents of University of Hawaii. I realize the value
of education and importance of education to this part of the island. Under the strategic plan of
the University of Hawaii, it is pointed out that one of the goals is to provide greater access to
native Hawaiians, and it also points out that West Hawaii is the second most underserved area in
the State of Hawaii with regard to education. In my case I'll admit to be selfish; I'm willing to
make a tradeoff timing of construction of Roadway 1 so that we can get timing of getting the
community college built. The stars are aligned right now. We have a public-private partnership
where we have State monies, University monies, individual monies, developer monies and
private fund raising going on. We have the land available. We have the heart to do it. And we
want to do it. And I'm here to support that and ask your support of that. This is for the kids of
West Hawaii and for those who need to retool their education in these tough economic times.
Now is the time that people go back to school. We currently serve over 400 kids up at
Kealakekua; we can serve many more, if we have a campus down here. And so I'm here
requesting a time extension for them. I'm happy to answer any questions you might have.
WATANABE: Thank you. Well, fellow Commissioners, do we have any questions of
Mr. Carlson? Seeing none, would you state your name and address, sir?
LALLY: My name is Jim Lally. My address is 68-1050 Mauna Lam Point,
Kamuela. And I'm here also to speak in favor of Palamanui because of the community college.
This is the second Planning Commission meeting that I've attended, and I'm quite struck by the
diversity of opinions that I've heard throughout this meeting as well as the prior meeting. And
it's got to be really difficult, I think, to try and sort through all those different inputs. But if we
can all step back and look at the picture from the standpoint of what our community goals are
totally, even with all those widely divergent views, I think there are several things that we can all
agree on. And as I was thinking about those things, the economic realities of today are very
different than they were in 2007, and investment capital is more difficult to come by. And what
that means to us is that we're all going to have to just work a little bit harder but we're going to
have to work a lot more together to accomplish our common goals because of the environment
22
that we are in right now. And one of the most significant common goals that I think that we have
as a community is a community college. We don't have a, as we all know, we don't have a
community college. We don't have access for our kids here in West Hawaii to a community
college. And the statistics that I'm going to quote right now, I think, are the most striking
statistics that I've heard. And if we look at the fact that 24 percent of our kids in East Hawaii,
those are our kids in East Hawaii, 24 percent of them go to a 13`h year of school. That's not a
number to really be proud of But if you contrast that number to the fact that eight percent of our
kids in West Hawaii go to a 13`h year of school, that's a horrifying statistic — absolutely
horrifying. And the fact that we are depriving our kids in West Hawaii from that opportunity is
something that we need to correct. So if we are looking at two groups of kids, one group of that
subset of kids from East Hawaii who do have the opportunity to go to school, looking at that
group, 16 out of 25 of our kids are making 30 percent less money and living seven years less —
the life expectancy of those kids. And those are statistics from going to a 13`' year of school.
That's why I'm so passionate about the need for a community college here.
As soon as we decided about two years ago that we were going to build a community college
here in West Hawaii and not wait for someone to build it for us, we started to make incredible
progress in terms of getting the college put together. We have, as Carl has just mentioned, we
have support from the State. We have the land now. We have support from the State. We have
money from the State—$2,000,000 to help do the planning. We have commitments from
University of Hawai `i — $4,000,000 a year to provide operating funds for the community college.
We have support from Palamanui — the $5,000,000 contribution toward the cost of the first
building. So we've made incredible progress. We've raise a total of $13,000,000. And we need
an additional only $2,000,000 to complete the first building. So we are poised for victory. We
are poised to build the campus after 15, after the hard work of many people for almost 15 or 20
years. And we do need the infrastructure that Palamanui is putting in place in order to complete
the construction of those buildings. And that's why I feel it's so important that we support
Palamanui at this point in time to get the campus built. And so I humbly request that you support
Palamanui, which supports our community college that we need so desperately for the kids here.
Thank you.
WATANABE: Thank you. Fellow Commissioners, do we have any questions of Mr.
Lally?
HOUSEL: Yeah, I had one -.
WATANABE: Yes.
HOUSEL: One question. Just to understand the math, you said that $13,000,000 is
available for the first building. Does that include Palamanui's $5,000,000 contribution?
LALLY: That includes Palamanui's $5,000,000.
HOUSEL: Okay.
LALLY: That includes $2,000,000 from the State, $4,000,000 from the University,
$5,000,000 from Palamanui, $2,000,000 from the business community and $1,000,000 so far
from the residents.
23
HOUSEL: Okay.
LALLY: And so we just need to raise an additional $2,000,000, which we are
committed to get done before the end of the year. And I'm confident that we'll do that.
HOUSEL: Very good. Thank you.
WATANABE: Any further questions? Thank you for your testimony. Mr. Leslie?
LESLIE: Good morning, Mr. Chairman and Members of the board. Kudos to all of
you to put up with all the hearing of positives and negatives. I'm sure you're going to end up
with headaches after this. I'm in the positive mode for the -.
WATANABE: Mr. Leslie, sorry -.
LESLIE: Oh, I'm sorry.
WATANABE: But your address, please.
LESLIE: Bucky Leslie aka Gene Leslie. 75-5815 Mamalahoa, Holualoa.
WATANABE: Thank you.
LESLIE: You want my phone number? Anyway, going back to this, I'm in the
positive mode for the Palamanui construction and move on. We do realize that there are a lot of
us here in the community that are not working and need to get on to work. A lot of our families
are being in poverty stricken by these so called not -working. So you have my testimony report
here with nothing else better to say you can read. I won't bore you with what everybody else is
boring you with. So thank you for having us here today.
WATANABE: Thank you very much. Yes -.
HOUSEL: Mr. Chair, I'm sorry.
WATANABE: Mr. House].
HOUSEL: l had one question I wanted to follow up.
WATANABE: Sure.
HOUSEL: I want to ask Mr. Lally -
WATANABE: Oh, okay, sure.
HOUSEL: If I could, just a second here. The funds, the donations and everything
that's been set aside for the first university building, in case there is a delay of building that
building for whatever reason, are there any problems with losing any of that money?
24
LALLY: Yes.
HOUSEL: Okay.
LALLY: People, people will not go ahead and live up to their pledges and
commitments, if the construction of the campus is delayed.
HOUSEL: Okay. is there a limit on what you think the limit might be of risk of
losing that money?
LALLY: I wouldn't, I would hate to prognosticate on what that would be, but if we,
as far as I can see, we are, there is no reason to delay the campus. If we delay the campus for
one year, that's probably 200 kids that are going to be deprived of an education. If we delayed
for two years, it's probably 500 kids. We just need to do it.
HOUSEL: Yes, okay, thank you.
WATANABE: Okay. Do we have any questions for Mr. Leslie? Seeing none, thank you
for your testimony. You may be seated. Let's take a 10 -minute break here because I think some
of us need a restroom break.
RECESSED The Chair called a recess at 11:50 a.m.
RECONVENED The meeting reconvened at 12:06 p.m.
WATANABE: Will the Leeward Planning Commission meeting please come back into
order? This is the general plan. We have by my count four more individuals from the public
who have signed up to testify. We'd like to provide them with the time to testify now prior to
lunch. I'm sure that the deliberations will be time-consuming and lively. So what we plan to do
is after these four individuals testify, then break for lunch and reconvene to deliberate on Agenda
Item Nos. 3 and 4. I believe that will probably be the most appropriate thing to do. So that's
said, may I call the four remaining people to testify? I have Shannon Rudolph, Greg Ogin, Rick
Vidgen and Cheryl Holdcroft. So would those four individuals please come up? There ought to
be another -. Cheryl Holdcroft? That's you? Okay. Then, Shannon Rudolph? Is there a
Shannon Rudolph here present? Okay. So may I swear you in? Would you raise your right
hand, please? Do you swear or affirm to tell the truth now before the Planning Commission?
TESTIFIERS: I do.
WATANABE: Thank you. And as previously requested, would each of you state your
name and address prior to beginning of your testimony? And we can maybe begin with you,
Shannon.
RUDOLPH- Aloha. Thank you for coming.
COMMISSIONERS: Aloha.
25
RUDOLPH: My name is Shannon Rudolph. My address is Post Office Box 243
Holualoa, Hawaii 96725. And I feel somewhat ill-prepared; I didn't write a testimony. I just
assume from what I read in the paper that this was pretty much already a done deal. I'm really
concerned as a Kona resident that so many developments that have gone before us, developers —
not that I'm against development, I'm not — but so many times developers have come in and
promised us the moon, and then those promises don't materialize. I'm concerned that everyone
seems to say, oh, we want to have a university; of course we want to have a university, but I'm
really not sure we're really going to get a university out of this. We've been fooled many times
before here in Kona. And as far as the saying that the economy is down, we need jobs — of
course we do — but I don't believe that the economy is going to be down all that long. And I
know that we are sitting out here in the jewel of the Pacific where everyone wants to live, and I
know that the traffic will come back like it was before, probably much, much worse. And I'm
just trying to look ahead to the future a little more to not fall for promises as we have in the past
of things that don't actually materialize. And I just think that this is not the right time to do this,
and 1 ask that you deny this request because they've already made commitments of what they are
going to do. And now it seems like, which has happened a lot of times, we were promised the
moon and then things don't turn out that way for some reason. And as a resident, we don't quite
understand how a developer makes these commitments and then can back out of them. So I'm
just really concerned about that. Thank you.
WATANABE: Thank you. Fellow Commissioners, do we have any questions for Ms.
Rudolph? Okay, thank you. Mr. Ogin?
OGIN: My name is Greg Ogin. 77-340 Nohealani Street, Kailua-Kona, Hawaii.
I'm here in support of the project. But more importantly I'm here to confess on the situation that
occurred in the paper yesterday. It was reported that Palamanui was, I guess, aggressively
pursuing the sale of the lots. And my company has been working with Palamanui over the past
years, so and we have been looking at various ways of making the commercial component
viable. I would say over the past year we started to look at the industrial lots, and have been
working with Palamanui to create a plan to sell those lots. It was to my dismay yesterday to see
that article in the paper. And the issue of us having a link on line was true. And the reason it
was there is one of my associates was given direction to update one of our databases and did so
quite effectively; and what he didn't understand is that there are two databases — one is in-house
and one is on the Internet. And unfortunately, the Palamanui information wound up on the
Internet. It is no longer there. It did not have any sale information other than the project
overview, and there was some reference to leasing, which was totally inappropriate. But it was a
mistake on behalf of our company; it was not Palamanui. What I will state is that in working
with Palamanui we have been, they have been very concerned about us having the right,
following the right procedure. It's in our contract. It is also an issue with us, with my license,
you know; we are not allowed to put anything on the market unless it has gone through the
proper zoning, and we were very aware of that. So I just wanted to appear before you and let
you know that it was not under the direction of Palamanui that that appeared on the Internet; it
was a mistake by our company. Thank you.
WATANABE: Oh, thank you for clearing that up. Do we have any further questions of
Mr. Ogin? None? Mr. Vidgen?
26
VIDGEN: Good afternoon. My name is Rick Vidgen. I'm, I've been before -. I live
at 78-630 Ihilani Place, Kailua-Kona 96740. 1 happened to be on the Board of the Chamber of
Commerce. I'm on, unfortunately for me, I'm on the State Hospital Board yet again. And I'm
the Chair of the Governor's Advisory Committee. But today I'm here just as a private citizen. I
have recently got involved very heavily with the project called Big Island Carbon up in
Kawaihae, and in that role I'm possibly a little selfish with appearing here to support
Palamanui's request and to support Jim Lally and Carl Carlson and all the other people that
spoke in favor of this.
I'm relatively a new comer to the community having being here since 1991, but I've been
involved in an ad hoc committee looking at the UH West Hawaii or Hawaii Community
College for the last three or four years. And mostly I did that because Ijust had my daughter
graduate last year from Chapman University, and I got to understand two things, I suppose,
which are very important. First of all how very few options she had, living in West Hawaii.
There were very few options. Going to Hilo was an option, of course, but that's traveling all the
time, not living there. And I'm also very aware, of course, of how costly it was for her to go to
college. I'm a newbie also in what's been, I believe, a 20- to 30 -year process to get this far. You
heard Walter Kunitake talk about the efforts that were put in in the past. However, to me HCC
West Hawaii is probably the most single important issue for West Hawaii. I mean I know we
need employment —that's obvious. I know we need roads, we need jobs. But most of allwe
need education because that's thinking about the future and it's not thinking about right here
today.
With Big Island Carbon 50 percent through its development I suppose, as I said, my interest is
somewhat more selfish. We need an educated technical workforce, and right now they mostly
have to be imports. We'll be employing as many local people as we can, but there are going to
be people who were educated elsewhere because there is no way for them to be educated here.
HCC is critical and without Palamanui it'll be another 30 years before anything happens. Let's
face it. That will be the way it is.
I appreciate that they want some concessions. But these are generally for timing only. And I
believe we have a much better system in the county these days for managing that, and certainly
we have a number of people in the, and a number of newspapers that will make sure that it gets
managed property. So I don't think that's a real issue.
I love the thought of new parks, and I actually much enjoy when I drive home the view of
Pualani Estates Park being used an awful lot by organized and casual people, and it's really a
joyous thing to see. However, you've got to remember it's surrounded by significant housing,
and that, I'll suggest, is the reasons for its use; thinking that Palamanui before it gets housing
will get the same use is a bit of a stretch.
A connector road up to the top road may be useful sometime in the future for Waimea people
who want to get to the airport quickly, and if there're a lot of golfers at the Palamanui Estates,
they can get up to Makalei Estates. Apart from that I don't think it's going to be much used. I
think it's that simple.
Very simply we need Hawaii Community College. We'd like a park when there is housing in
place; obviously I think that's a very good thing and will happen. And sometime way in the
27
future we probably benefit from a connector road. Aside from that it just needs to go ahead,
otherwise we'll be still sitting here in 30 years debating the need for further education in West
Hawaii. Thank you.
WATANABE: Thank you. Fellow Commissioners, any questions for Mr. Vidgen?
Seeing none, ma'am? Cheryl Holdcroft, right?
HOLDCROFT: Hi, my name is Cheryl Holdcroft. I live at, well, Post Office Box 1449
Kailua-Kana, Hawaii. I'm here today as a citizen of West Hawaii. And I live in Kona
Palisades. And I'm here to talk about the benefit that I think Palamanui will bring to the people
who live in North Hawaii, in the north part of West Hawaii near Palisades who have no
services. And I look at Palamanui as a great way to provide services for those of us who have to
fight traffic to get into town for childcare, for shopping, for physician's appointments and for all
of those things. We are really underserved, yet we're a rapidly growing area in the area.
As a little reminder, you know, the north -south, the south, excuse me, the south -north migration
over the last 30 years for Kailua-Kona has been astounding. To think that we didn't have a stop
light in Kona 30 years ago is so amazing for those of us who've only lived here ten years. And I
really think that that migration is going to continue, and that we can't deny that. But what we
can do is we can embrace this development, which after a close study of this development I think
is one of the most elegant, well-planned, kama`aina developments that I've seen presented here
for the entire State of Hawaii. We're talking a college, which our kids desperately need. We're
talking the potential for medical services, which we desperately need in the Palisades area.
We're talking about some retail; we're talking about being able to shop a little bit closer to our
homes. And we're also talking about a multi -range of housing options, which again are so
difficult for people here in Kona.
I've looked at the partners behind Palamanui, and I have to say that they are so well respected.
They have a presence in the community, a presence here in Hawaii; they are trusted business
leaders. There is nothing in any way that makes me think that these are fly-by-night, let's get
what we can out of this development and not take care of our promises to the community. This
is not the caliber of people that we're working with on this project. Also, if you go look at
Palamanui and you see the magnitude of this project, you realize that the small compromises,
public'promi-, private compromises we're making are so small in comparison with what our
community is going to gain in the next five, ten, 20 years. Public-private partnerships are the
future; they are the future on the mainland, they need to be the future here.
The fact that we now have a leeward planning board illustrates that our county is maturing as our
projects and the needs of our citizens are maturing as Kailua-Kona changes. I'm sure that the
leeward planning board realizes it's their responsibility and the County Council's responsibility
to monitor ongoing projects, that's what you do, and so that we don't revisit problems of the
past, which so many people testifying have talked about.
In closing what I want to say is that fear of the past and fear of past mistakes should not keep us
from embracing our future. Palamanui, the community college, the services that will provide are
our future. And it's so important that we work together to make sure this happens. Speaking
specifically for the community college, I'm raising two high school daughters and 1 can't say
enough about how our young people here need these educational opportunities. I've been
28
involved in helping with the fundraising for this college; people are so excited and so thrilled that
we might get this college that they can't wait to donate money for the cause — from a $25
donation from a grandmother to $100,000 donation from an influential business person. So
please understand. I support this development, and I say let's move forward in a positive way.
Thank you.
WATANABE: Thank you. Fellow Commissioners, any questions? None? You all may
be seated. I have a last-minute person that signed up. Jeff Sacher?
SACHER: So you know I had, I did it this morning with the other one. Somebody -.
WATANABE: Yeah, I guess we, we may have gotten confused and thought we put you
on the wrong sheet -.
SACHER: Thought you just don't like me.
WATANABE: No. No, no, no. How come we do not like you? You've already been
sworn in and you've already stated your address, so you know -.
SACHER: Okay.
WATANABE: Go ahead with your testimony.
SACHER: Well, I was here at the last hearing you had, and I do thank you folks for
postponing it so that you can get more information — I appreciate that. 1 think that's what the
Commission is here to do. And as I said the last time, everyone has had to deal with the
economic downturn. To me this is a major developer that should have planned better. We can't
have developers coming in and then ask to change the rules once the game has started. We have
plenty of retail, industrial and commercial areas already, and they are having trouble. We don't
need more. I have many concerns that have been already voiced and probably will be voiced in
the future. But my main concern is the road, and that's something that's come up. We have this
all over the island. I don't care if it's residential, I don't care if it's commercial, the roads are
needed. This should be a standard requirement of the Planning Commission that all roads are in
prior to any buildings being constructed for this and any other development.
The only other thing that has got me this afternoon, and hopefully someone could put my mind at
rest, is I heard everybody talk about the college. And I must be under misconception and
hopefully you folks can square that away for me. I was told that part of Palamanui getting their
permits was that they were going to build a temporary structure for the college until the State got
funding at which time the State was then going to build the campus, and it may be on Palamanui
or it may be on adjacent land, and then once that was done and that was built, the building will
go back to Palamanui. So if I'm wrong, you know, please point that out because I've heard a lot
of people are concerned that -.
WATANABE: I think, I think maybe the Director can -.
LEITHEAD TODD: Those were the conditions when this was originally envisioned and as it
went through the Land Use Commission. When it got to the County, it was amended and instead
29
of building the temporary facility within the village core, the current condition of the ordinance,
and which remains intact in this proposed amendment, is that Palamanui has to contribute
$5,000,000 towards the construction of a permanent building on State land. So when -. You had
Mr. Lally testifying and he was talking about all of those components that go together. It's a
building that will be permanently part of the West Hawaii campus, and Palamanui's obligations
are to bring water down because they need water to service the campus and also to build, put
$5,000,000 towards the construction of the first building, but they also have to build that Road
3A on that map up there, which connects from Ka`iminani Drive to their village center, and they
also have to build from Queen Ka`ahumanu up to their village center, which gives the access to
the university so that they have both an access from Queen Ka`ahumanu as well as an access
from Ka`iminani for the students to go.
SACHER: I appreciate that. So I guess my question is then, what is the fear that this
isn't going to happen? Because it sounds to me like the understanding is that this is going in;
this is part of the agreement. But what I'm hearing this morning is people saying if we don't
make these concessions, we don't get a campus. And yet, what you just, what I understand from
what you just told me is it is there.
LEITHEAD TODD: The concessions are that basically, as the ordinance was originally put
together, they had to put all of the infrastructure in at the same time; so that would mean all of
the roads in there, all the roads, the road going up to Mamalahoa, all the internal roads, the park,
and there was also a condition that for every piece of commercial, or for every 600 square feet of
commercial property retail produce they had to build residential. What they came and asked is
they want to de -link the connection between the amount of commercial space bought and the
number of residential units so that they could develop the commercial section first. And they
also ask for phasing so that the road from Queen K to the village center and the road from the
village center in front of the university to Ka`iminani would be built first, and then the other
roads would be built as the project develops; so that basically the bottom half develops and then
as they start building the residential components, then they would build the roads that service
those components. So it's basically phasing that. They are still required to build all of that. But
instead of having to build all of it upfront, they are asking for phasing. But they are still required
to do those two roadways that directly service the university first.
SACHER: Thank you. Well, I'll finish up. I just think what I heard this afternoon is
it sounded like there was a lot of fear, and I got this — forgive me for lack of a better word — this
feeling of blackmail, like, if we don't get this, we can't do this. And like I said, my
understanding is that that campus, that building is there, it's going to be there, and that's part of
the agreement. And the only thing I ask you folks to do is see that. I know this lady said let's
move forward, and that's all well and good. But if we don't learn from history and if we don't
take that into account, then I don't think any of us are doing our jobs properly. So I'm saying
please don't let this happen again. You are here for the people and not for the developers. And I
ask that you really put a lot into this and look at it, and for those people who think that this
campus is in total jeopardy, to maybe revisit that because it doesn't sound to me as if it is. And I
think if this developer is going to prove to the community its true intent about staying here, that
that campus will go in come hell or high water. Thank you.
WATANABE: Thank you. Fellow Commissioners, any questions of Mr. Sacher? Seeing
none, you may be seated. Thank you. And that is, yeah, we've gone through everyone that
30
signed up from the public. So as I sated earlier, you know, because the deliberations on this will
probably be time-consuming, we'll break for lunch now and reconvene in about, what, 2:15,
about that?
LEITHEAD TODD: Two? 2:15? Up to you, Mr. Chair.
WATANABE: Yeah, around 2:00 to 2:15 to begin deliberation -.
LEITHEAD TODD: You've got to state a specific time.
WATANABE: Oh, 2:15. 2:00. Okay, okay, 2:00. We'll reconvene at two o'clock. Oh, I
said 2:00. I guess I made an error in my addition. So let's say 1:30, reconvene at 1:30. I'm
sorry about that.
RECESSED The Chair called a lunch recess at 12:38 p.m.
RECONVENED The meeting reconvened at 1:54 p.m.
WATANABE: Leeward Planning Commission come back to order, please. Now that
we've concluded the public testimony, I'd like to call the applicants up to the front here and -.
So may I swear the both of you in? Do you swear or affirm to tell the truth now before the
Planning Commission?
OKAMOTO: I do.
HARRIS: I do.
WATANABE: Thank you. Well, you have the mike, Mr. Harris, so maybe you can state
your name and address, and so could Alan, and then we can begin.
HARRIS: Okay, my name is Roger Harris. I'm a Palamanui planning manager. My
address is 66-1452 Ko Uka Place, Kamuela, Hawaii.
OKAMOTO: Good morning, I'm sorry, good afternoon, Members of the Commission.
I'm Alan Okamoto. I'm the attorney for the applicant. My address is 847B Uilani Place, Hilo.
WATANABE: Thank you. Well, you've heard the testimony, and there was a quite bit
for as well as against, and I guess it's fairly consistent with our previous meeting as far as the
points of contention. R seems we've gotten it cleared up that you're not really asking for any
concessions that would alleviate you from any of the prior commitments — merely timing
concessions that are involved. And I was wondering if, since it seems like both, all three parties
— Public Works, Planning Department as well as yourselves — have agreed on the conditions
pretty much, maybe you could address some of the concerns that were voiced earlier by, through
public testimony.
HARRIS:
Thank you, Mr. Chairman and Members of the Commission. I think we
try to be upbeat because we really, the crux to this is we want to get started. And we got the
zoning in '06, here we are three years later and we've done a lot of work. I'd like to say that Ms.
31
Leithead Todd, I think, described it very well in the answer at the end of the hearing when she
said this is a scheduling issue; we are not asking to delete any community benefit conditions, but
we are asking for deferral on the park and on the road used to be called Road 4. And I'd like to
add that the other roads, the other big roads into the site are, on that map Road 2, or the Kamanu
Street that goes to the community college from Ka`iminani, and then our main road in from
Queen Ka`ahumanu Highway and the new intersection up to the college, if you read your new
conditions, and this has always been the intent, those roads get constructed simultaneously with
the first building of the community college, which we are going with our $5,000,000. We have
the architecture under way, which we are paying for. There is really no State or other money
required. It's a question of how that, how that compound of an original first building of the
college, how extensive it gets with the money from Jim Lally and the UH and the State. But the
$5,000,000 commitment from us is being spent already and we are hoping to have a building
permit set and start by the end of the year.
On Road 4 I'd like to say briefly, the new road up, Road 1, the deferral road, we have done a lot
of work on that, too, already. I think a lot of people have a very skeptical view of how real that
may be. But it's only going through State of Hawaii land, the lower land, and then another
landowner used to be called Lynch Properties, formerly Makalei Golf Course, formerly Huehue
Ranch. But we have communicated with them; Lynch at the time the old Council passed our
zoning submitted a letter promising to give the right-of-way, and Gramercy then condemned the
land, I mean, took the land back in a foreclosure, they have been in communication with us. It's
not very frequent, but we have communicated, we've sent them a right-of-way grading plan, road
plan. We've spent at least $150,000 on the archaeological surveys, the botany, the flora/fauna, to
get a right-of-way that works in there. And we've discussed this with Public Works and other
people. So there's a lot of, I'd say, positive news that that can really happen. Now, nobody can
guarantee the right-of-way is going to be flawless. But it's more positive than you may think and
we'll keep doing that. Our requirement is to do that.
On the site we have a grading permit that we got just before our ground blessing a year and a half
or two years ago, and have done some mass grading. We've graded in the right-of-way for the
mauka-makai road. There's a lot at work. On the road to Ka`iminani we have a grading permit
in hand. We have plans done, a few more touchups on one end of the plan, but that's about it.
Progress on the college, as I said, we are just about ready for building permit plans and it's a
LEED's Platinum design building.
So finally, I would just say that our partners, our owners are committed to going ahead. It's a
phasing issue. We want to go ahead with that initial $24,000,000, including the college, and we
just need a little relief on the other end for the other roads. Thank you.
WATANABE: Okay, just to clarify, though, because 1 do recall one of the testifiers
indicating, oh, you should build that mid-level — I think it's Kamanu Road —just at least up to the
university site. But you are actually committed to build all the way through to Ka`iminani Drive.
Am I correct in that?
OKAMOTO: That's correct. Yeah. We'll connect the whole road so -
WATANABE: Right, exactly, so -.
32
OKAMOTO: The university will have two access points.
WATANABE: Exactly, yeah. Ijust wanted to make that clear for the record. Fellow
Commissioners, do we have any questions of the applicant?
BOWMAN
WATANABE:
1 do.
Ms. Bowman.
BOWMAN: Just in regards to Makalei Estates, do you foresee any reason why except
for the waterline that you would need to go through there? I know that was a concern by several
residents.
HARRIS: Right. No, we've always been in agreement that we are not allowed to run
our construction trucks, and our subs and our agents and our designees to go through there. We
do, as they have said, as we do need to dig up part of the road and put in waterlines, some water
tanks, that's it.
BOWMAN: Okay, thank you.
WATANABE: Any further questions? Yes, Mr. Housel.
HOUSEL: Yeah, 1'd like to get a clarification, if I can. On the Kona CDP map, it
shows University Drive which begins at Queen K, 2, and goes mauka to Makalei as one
continuous street. Now your depiction shows it as a dogleg, is that correct?
HARRIS: Yes.
HOUSEL: Is that, this is the intent of the design here?
HARRIS: Yes, you know, it's, it could be adjusted. In fact, we, in meeting with
Public Works and Planning the main thing they wanted was a bigger right-of-way, the horizontal
right-of-way going across there, than 120, which we can go up from 88 to 120 for that right-of-
way, and then we would build the first two lanes and then connect tip what's called University
Drive. There is a cave right thereby where it says "313" and "113" that we have to work around.
So to make the configuration straight up like the map, I can't guarantee that this is going to be
straight up, but it's going to be a full on through road connected. It may have an S curve in it,
that's all.
HOUSEL: When that eventually is built and the mid-level road is built, would that be
a signalized intersection?
HARRIS: You know, at our meeting in Hilo we talked about a roundabout; so 1 don't
think it needs a signal.
HOUSEL: Okay. Now, as you are aware, the Kona CDP defines University Drive as
a priority road.
33
HARRIS: Yes.
HOUSEL: Okay, and that means from where it starts on Queen K all the way to the
top. How far will you be building University Drive in the first phase?
HARRIS: As Bobby Jean said, well, we have already pioneered it in from the bottom
of Makalei Drive through the forest, you know, not through the forest, avoiding the forest but
through some of the trees and down to, as you see it, that blue, the blue line, because the first
thing we have to do is put the waterline in. So we have to take it to grade, get the waterline in,
and we have to put a 10 -foot, minimum 10 -foot, pave on top of the waterline; that's to get the
waterline activated to feed the university and everything else. But we don't have a firm schedule
for actually finishing that road because, as the Director mentioned, it's the scheduling that will
follow more or less the growth and the demand, and we can't get, the whole reason is, we can't
get too far ahead of ourselves and building roads that we are not going to be, you know, using.
HOUSEL: Sure. Will the waterline follow the road?
HARRIS: Yes.
HOUSEL: Okay.
HARRIS: Now the only caveat is your other point; if we realign that road, we'll have
to determine that. But the waterline comes down the road now.
HOUSEL: I see, okay. Thank you.
WATANABE: Any further questions? Yes
LEE: Mr. Harris, at this time what would you say is the, has been the financial
commitment as far as work in the ground or on the ground for the Palamanui project?
HARRIS: Well, the dollar numbers, what we have expended on the ground is at least
$5,000,000 — $6,000,000 so far, and another major millions on engineering and planning.
LEE: So a substantial amount has already been committed to seeing this going
forward.
HARRIS: Yeah, that's mainly mass grading of those, the backbone infrastructure.
And as I have said, what we want to do is pop the cork open and spend the next $23,000,000.
But the problem is if I'm looking at another $20,000,000 right behind that with the weak market,
that's our whole problem. So we're just asking to phase it.
WATANABE: Yeah
HARRIS: (Receiving comment from Guy Lam who is in the audience.) Okay,
there's a -. Yeah, it's $18,000,000 — we've done a lot more, a lot more engineering and work.
34
WATANABE: Okay, so that $18,000,000 is not inclusive of the $6,500,000 you at the last
meeting said was already committed, yeah, for the waterline?
HARRIS: Yeah, $6,500,000 would be the next, that would be part of our, you know,
what we were saying is -.
WATANABE: Just, just the water, it's already committed -.
HARRIS: Yeah, what we are saying is the next $23,000,000 -
WATANABE: But it's not part of what is spent already.
HARRIS: Correct.
WATANABE: Yeah, okay, okay. So basically you're saying $24,000,000, $25,000,000,
someplace in that neighborhood. It's -.
HARRIS: Yeah.
WATANABE: Pretty much, I mean, it's going to be spent already, right?
HARRIS: Yeah, and then, I mean, the $6,000,000 is part of the next $24,000,000 that
gives us the college and the first roads.
WATANABE: Okay, okay, thank you. Do we have any further -? Yes, Mr. Housel.
HOUSEL: Mr. Harris, I want to ask you a little more about your planned phasing of
this development. When was your grading stopped?
HARRIS: I would say about eleven months ago.
HOUSEL: Okay, so it's been on hold for about a year then, right?
HARRIS: Just about.
HOUSEL: Okay. And when did you first submit the request of changes?
HARRIS: This package, I think, was in March or April, yeah, just -.
HOUSEL: Okay. Have there -? You know, of course, things were pretty gloom at
that time, you know, in the economy and a lot of uncertainty. Do you see that possibly things are
starting to change now?
HARRIS: We think it's still pretty bleak out there honestly but, you know, like the
paper this morning said that housing starts on the mainland, their sales are a little better. But
around here, I mean, we get so many calls for jobs, and prices have gone down and, or are still
going down. But you know, there're a lot of houses out there already. I mean, to sit back and
say, I'm going to put lots of money in a housing development, you've got to be, you've got to
35
stage that money in. And what our guys are saying, as we told you before, the community
benefit that means most to everybody is getting that college started. And once a first building
goes up, more buildings will come. So if we can do that, and that'll, you know, by sometime in
2011, 2010 will be construction and then we'll wrap it up, and then we are hoping that there's
going to be a better market and -.
HOUSEL: Yeah, one of your requests in here is to unlink the commercial with the
residential, right?
HARRIS: Yes.
HOUSEL: And so that you can proceed to develop the commercial without the
requirement to build residential, right?
HARRIS: Yeah, although the real reason, as I've tried to state, is we can't live
without building residential. I mean we have 725 acres and, you know, the vast majority of it is
there is a lot of open space, but it's a residential project. There just happens to be some
commercial; the 102 -max acres could be commercial. So, but the way that condition reads, as
I've told you before, it's a real escrow killer because we just can't promise we'll have houses in
the air every time we want to build a commercial building, that's all.
HOUSEL: Right, right, well, I mean, so are you saying that, without that link, that
you're going to, it's not really practical to build residential right now, the financing is too
difficult; so it's likely you're going to delay the residential, is that correct?
HARRIS: Well, we can't really get any residential on the market for, you know,
about two years from now, if we start. Let's say we are starting by the end of the year, get the
backbone in, get the first pads ready, get that market some commercial deals, and we need, we
need residential deals going, too.
HOUSEL: Sure, sure. No, I fully understand you intend to do residential. It's just a
question when that's going to happen. I'm looking at things of what's changed since March for
instance, okay? Yesterday, as you know, the Dow closed over 9,000 for the first time in eight
months. In fact, the value of Charles Schwab stock has gone up 50 percent since March, okay?
So it appears to me that there might be some light at the end of the tunnel with regard to, you
know, approaching the residential. It's not, I agree with you, it's not there yet; we're still, you
know, in the woods. But I'm looking at what concessions you are asking for that may apply
when the residential, you know, is ready to go, and one of the things I'm looking at is the park
and the timing on the park. And I'd like to, in light of maybe this opportunity, this light at the
end of the tunnel, ask you to consider not asking for the 10151 building, I mean, permit to wait to
do the park. Here is my reasoning here. This is a district park, 20 acres, okay? If I were going
to buy a house there, there is no park within eight miles, okay, to me that would be a disincentive
to buy a house at that location, if I really wanted a park. So I believe if you go to, my suggestion
is go back to your original agreement that the park would be available when the first house is
available, I think that will be a strong selling point for your houses. Plus this community, if you
see all that housing up Ka`iminani, that's the largest residential area in Kona, and there are no
district parks in that area. So it's definitely needed. And I think, my, I'm asking you, would you
36
reconsider since you're going to delay, or likely you're going to delay, the building of the
residential, to keep the original agreement rather than delay it to the 10151.
HARRIS: The original, the current condition is complete it with occupancy of the
first dwelling? Is that the language?
HOUSEL: Yes.
HARRIS: That's the language.
HOUSEL: Right.
HARRIS: We couldn't agree more that the park is an amenity for our community
and it will help us. It's just cash flow management basically -.
HOUSEL: Sure.
HARRIS: If we can slide it a couple of years -.
HOUSEL: No, I understand. But looking down the road, if the light we're seeing at
the end of the tunnel is getting brighter over the next year, I think it may be appropriate to have
the park there.
HARRIS: We'll think about it.
HOUSEL: Okay.
HARRIS: I can't promise it.
HOUSEL: Okay. I appreciate it if you consider that.
HARRIS: Okay.
HOUSEL: Thank you.
WATANABE: Okay. Do we have any further questions of the applicants? Yes, Mr.
Housel.
HOUSEL: I had one other thing that I wanted to ask him about. During last meeting
we just received the traffic impact study -.
HARRIS: Yes.
HOUSEL: And so we really didn't have any time to review it then. And I've looked
at it since, and I have a lot of concern about the traffic impact only having the Kamanu and the
lower part of University Drive available for traffic for a considerable amount of time, okay? As
you are aware, Ka`iminani, although it's a collector, is not a very safe road; there are several
portions of it that are in excess of ten degrees grade. And with adding a lot more traffic to it, you
37
know — let's say, one of your conditions here is on the Road 1, which will eventually connect to
Mamalahoa, and of course, we can't, you know, we've agreed not to go through Makalei —
putting an excessive amount of traffic on Ka`iminani is going to, I believe, create safety
problems. And so one thing I would, I would like to suggest -. No one knows for sure how long
it's going to take the County to get the right-of-way to build the Road 1, okay, but if we take that
time and add six years to it, that's long time. And especially we are optimistic that the university
is going to get started and additional buildings are going to go in there, you're going to build the
hotel and other buildings, commercial, retail; that's going to generate quite a bit of traffic in five
years. And so I would like to, I would strongly recommend reducing the six-year allowance after
the County gets the right-of-way to three years to get that done sooner because I think it's going
to be needed.
HARRIS: That's how we got in trouble this time, you know, we got it too tight. So
I'd have to say, you know, we can't respectfully, you know, agree to that right here. I hear what
you are saying. I mean the main benefit of the new road is clearly to relieve Ka`iminani, which
is a less than wonderful situation.
HOUSEL: Right.
HARRIS: I just, I just don't think we can agree to -.
WATANABE: May I chime in -?
HARRIS: Reduce that to three. But go ahead.
WATANABE: May I chime in? And this is not so much to suggest any revisions to the
hard work all of you have put into the conditions as revised, yeah, but is it fair to assume that you
have an intent to put that road in, the connector road, which previously was called Road 4 and
now is called Road 1, sooner than later, because as I recall the conditions you had asked for tied
it in to the 600`x' lot? And I'm not suggesting we go back to that because, you know, nobody
knows when the right-of-ways can be attained. But by that statement, is it fair to conclude that
your intention is to put it in sooner than later?
HARRIS: 1 think -.
WATANABE: Providing sufficient cash flow obviously.
HARRIS: I think we are comfortable with the six years. I think it, you know, it
benefits us, too, just like the park. I mean it will make our place work better, it'll make the
market work better, the university will work better. It's a real regional benefit, and we'd love to,
you know, accelerate it to get going -.
WATANABE: Yeah, I'm not asking you to commit to anything earlier, though.
HARRIS: I don't think I can.
38
WATANABE: Yeah, okay. Do we have any further questions? This is with regard to
everything then, yeah? Okay, so then 1 believe, thank you for your responses, and I believe we
can enter into deliberations.
OKAMOTO:
WATANABE:
Mr. Chairman -.
Oh, I'm sorry.
OKAMOTO: Just to make sure, we have reviewed, as Mr. Hayashi indicated, we have
reviewed the Planning Director's revised conditions of approval dated July 21, 2009, and they do
contain what we were able to work out with the Planning Department and with the Department
of Public Works. I just wanted to make sure that was on the record.
WATANABE: Yes, yes. 1 appreciate that. I also appreciate your willingness to continue
to this hearing, so that we could get all the proper input, yeah? And let's try and see if we can
deliberate and come to a conclusion now. Thank you. You may be seated. With that, there're
two agenda items here, right? And the first agenda item I haven't heard as much objection to
right now. So let's take Agenda Item No. 3 because we did agree that we would take these
separately, yeah? And that would be Palamanui Global Holdings LLC, request for change of
zone, FEZ 09-94, and this is in regards to the 29.9 acres that would be rezoned from — I forget
what it was — Project District, yeah, PD to MCX, yeah? Do we need any further discussion on
this, or is someone willing to make a motion? And this would be as a recommendation to the
County Council, yeah, because it is a change of zone so we don't have final authority in this. Is
there anyone -? Mr. Hensel.
HOUSEL Yeah, I'd like to make a motion on REZ 09-94 that the Commission
approve and give a positive recommendation for the change of zone from Project District to
Industrial -Commercial Mixed for the 29.92 acres in the business park.
WATANABE: Thank you. Do I have a second?
BOWMAN: Second.
WATANABE: Okay. So we have a motion to send a favorable recommendation to
County Council for the zoning, change of zone to MCX. Any discussion, further discussion on
this? Maija?
COTTLE: Thank you. Commissioner House]?
HOUSEL: Aye.
COTTLE: Commissioner Bowman?
BOWMAN: Aye.
COTTLE: Commissioner Beaudet?
BEAUDET: Aye.
39
COTTLE: Commissioner Giffin?
GIFFIN: Aye.
COTTLE: Commissioner Iokepa?
IOKEPA: Aye.
COTTLE: And Mr. Chairman?
WATANABE: Aye.
COTTLE: The motion passes, six -zero.
WATANABE: Okay, thank you. Half -way there. Let's see. Now let's discuss Agenda
Item No. 4. This would be Palamanui Global Holdings LLC, change of zone application, REZ
05-10. These are the, most of the discussion has been over the timing. And I know we've heard
from Mr. Housel as far as his concern regarding the park, the timing of the park, and also
regarding the timing of completion of Roadway I, the connector road to Highway 190. And
rather than simply ask for a motion at this point, maybe, are there any other Commissioners who
have similar concerns or would like to chime in on this? If you don't see any problem with it -.
Let's, let's, since those seem to be the points of contention, can we open up the discussion that
way and see if anyone else has similar concerns?
BOWMAN: I have a question just -.
WATANABE: Yes, Ms. Bowman.
BOWMAN: In regards to the traffic. Is, our traffic study person isn't here, are they, to
help -?
WATANABE: No, I don't believe they are.
BOWMAN: Okay. Because it appears as best as I can see, with the future mauka
project access road and then without the future mauka project access road, and I believe, as far as
I can see looking at this, that the traffic impact is not as severe. I mean, if staff or anyone can
enlighten us on this, or if you could, Warren?
LEE: Yeah, let me try and answer that.
WATANABE: Yeah, thank you.
BOWMAN: Thank you.
LEE: With the supplemental TIAR that was submitted by Palamanui and the
original TIAR that was submitted with and without the road, we've got to say that the area that
we are concerned about at DPW is the mauka-makai access, and certainly Ka`iminani was not
40
designed as a major or even a minor collector road. But the traffic analysis in this case indicates
that this whole area or region needs an improved, what we call, north -south collector road. And
that is starting as we speak; it's in a planning stage and hopefully we'll be able to get into
construction next year with the start of the construction of the Ane Keohokalole Road, which is
the mid-level road. So mid-level road continues, starts at actually Henry and Palani, goes to
Kealakehe Parkway at the new civic center coming up, and then goes to Hina Lani; that is what
the $35,000,000 stimulus project is. Now, in getting, qualifying for the stimulus project, there is
also, we are also, the County of Hawaii is also on what's called the STIPLUS, State
Transportation Improvement Program, for a major, for this collector road to be approved for
federal funding all the way to Ka`iminani. So it's just a matter of the portion between Hina Lam
and Ka`iminani getting the property rights and doing the design and also, of course, getting the
funding. So this whole system is in design and that ties into what we call now Road 4 (sic) or
used to call Road 1 (sic). So also, some of the background is that that's why this revised
agreement, amendment is that we've asked for 120 -foot right-of-way through the State property
so that eventually this mid-level road could continue all the way to Waikoloa or to Paniolo
Drive. And then you would have this spur going up through the private property up to Highway
190. So that is the total plan. And until that mid-level road is built, the traffic would not be,
from the engineering studies, adequately addressed. So we're going to have to live with this a
little while, and that's what the numbers show. It's going to be an improvement, but it's a matter
of time and when, not the matter of if but when, when it gets done, and I think, yes, it is a
situation where the traffic will be improved. We're going to add some additional traffic with the
university; but with the Queen K access and the Ka`iminani access at this time, that will certainly
be a reliever.
And part of the Kona Community Development Plan is also the Kamanu Street extension. So
the Kamanu Street extension runs right into Road 2 there, and so that'll give you a minor
collector road parallel to Queen K and also parallel to the mid-level road, or Ane Keohokalole.
So eventually over time the traffic will be relieved. And hopefully by that time the State of
Hawaii Department of Transportation will have the expansion of the Queen K from the police
station in Kealakehe built all the way to Keahole Airport. So that's the long-range plan
addressing the traffic issues.
BOWMAN: Thank you. Because my main concern is, like this Roadway 4, improving
the access on Mamalahoa, that to me is still a very dangerous substandard road, isn't, you know,
going to be the panacea that will answer all the questions. And I really appreciate your verifying
what's being done especially in the traffic in that area. So thank you.
WATANABE: Mr. Housel.
HOUSEL: Yeah, I had a question for Mr. Lee. For the County to gain right-of-way
for Road 1 across the private land, what needs to be done and who does it?
LEE: Road 1, you mean Road 4, yeah?
HOUSEL: Right.
LEE: Yeah, so the way the amended ordinance, amended agreement is written is
that we will work with the developer as necessary to get the right-of-ways. So when you,
41
obviously when you go through State land, there may come a point where the County may have
to get involved and say, for example, could we transfer this land as an executive order versus an
easement or somehow. But also working with the private landowners, that would probably have
to be an acquisition or if, I'll leave that to the Planning Department or the Planning Commission,
if they do come in for development, and that could be a condition of their contribution either in
the present or the future tense. I mean 1 believe there're several ways to work this.
HOUSEL: Right. Is the, if the developer or the owner of the private land does not
choose to develop it at this stage, would the Department of Public Works seek the right-of-way?
LEE: 1 see Ms. Leithead-Todd has grabbed her microphone, so I will defer that
to her first. There is a recent court case that I think she is sensitive to in the parts of Kona.
LEITHEAD TODD: The way the ordinance is written, both the ordinance as approved in 2006
and the proposed amendment here, it envisions that if the developer is unable to work out an
agreement with the private property owner, that the County would go and get the rights-of-way,
and that would probably entail eminent domain, if we weren't able to reach an agreement. The
concern over the Hokuli`a case was really over a development agreement, which is a contractual
obligation, and the concern was that the contractual obligation in some way bound future County
Councils and control their action. However, this is an ordinance, which is fully within the
control of any future County Council to amend, as oppose to a development agreement, which is
a contractual obligation that the Council could not unilaterally amend. And so I don't see the
same, quite the same issues being raised as Hokuli`a because it's an ordinance and any future
County Council can always amend an ordinance subject to public input. But given the fact that
this is on the Kona CDP, given the fact that it's on the General Plan and that for many, I think,
you know, the entire process over the last few years has identified this as a road, I don't see that
a future County Council would not want to pursue the eminent domain. I think the real issue is
going to be financing more than anything else because when you pursue the eminent domain,
you have to basically show that you have put money into your CIP budget in order to purchase
the property. So it would require that prior to going for the eminent domain the County Council
would need to amend the CIP budget and identify money for the project. But that's fully within
their power to do.
HOUSEL: I see. Right. If they did do that, roughly how long does an eminent
domain case take?
LEITHEAD TODD: Sometimes that's up to the judge. You know, in theory most of our
eminent domain cases sometimes they're amiable, sometimes you do eminent domain because
for tax purposes it works out better for property owner, sometimes because you have multiple
owners. But normally it doesn't, you know, take that long once you initiated to acquire the
property, and usually you get a right of entry even before you've actually physically paid for the
property. The only reason that we ran into difficulties on Hokfili`a is because the court basically
put a halt to future proceedings and an acquisition, and didn't even give us a right of entry to
build, to have the road built until all of that got settled through the court case. I don't know that
that would occur again, but if you had an unwilling seller, in other words the private property
owner, then in theory it could take us a while to go through court. But those are things that are
beyond the County's control and would be up to the court. What we would do is if we initiated
42
eminent domain and we already knew where the alignment was and it's reallyjust an issue of
paying the value, we would ask for a right of entry so we could go in and do the work.
HOUSEL: 1 think I read in the at least original documentation that Palamanui has
agreed to continue to do the research for the location of that road, is that correct?
LEITHEAD TODD: Yes. Yes, they have. And they've working on that and they've been
working on all the studies that are related to doing that.
HOUSEL: Okay. Are they responsible for also doing the engineering part of it?
LEITHEAD TODD: Yes.
HOUSEL: Okay. And so essentially down the road — no pun — that should be ready
by the time, you know, if you have to go through an eminent domain case, the design should be
ready, is that correct?
LEITHEAD TODD: In theory it should be. The only problem would be is if, that I can
envision, is if the alignment that we wanted ran into unexpected burial site, you know, there're
just, you know, like if nothing goes wrong, then in theory we are ready to go, we've got the
design, we can go. It's just been my experience with roads in Kona that you don't want to
promise 100 percent that you can do it because we've run into archaeology, we've run into
burials, we've run into issues that we hadn't anticipated in them. But the theory is is that absent
archaeology/cultural issues that we have the alignment, the engineering will have been planned,
and then once we get the rights-of-way, then they should be able to proceed with construction.
HOUSEL: Do you still believe they need six years beyond the acquisition to complete
the road?
LEITHEAD TODD: I still think that it's better to plan that outside window than to try and do a
shorter winder. I'm just looking at, you know, how long it takes us to build a road. And you
know, assuming you have everything lined up from the day you start planning, I don't know that
we could deliver it within three years if we were doing a major road.
WATANABE: Mr. Lee'?
LEITHEAD TODD: I mean, you know, to finish construction.
LEE: Or you get a good contractor, you can do anything. And I think what the
language says is that from the time that you achieve, you get all your right-of-ways, within,
within six years. So I think anyone that's working, what we would, what I believe is going to
happen is that once we get all the right-of-ways or the right of entry, that once you issue the
contract, you would probably, the contractor would probably want to keep on working rather
than stretching that work out, especially knowing that this is a high profile project that will serve
the community to its, the best extent and help everyone out, and 1 know Palamanui is really, you
know, going to give back to the community as they've done with the college. So reasonably you
could say that this would probably be a, maybe a 24 -month project from the time that you start
and start to mobilize, assuming that all the permits are in place.
43
HOUSEL: Right.
LEE: But 1 think having it within six years, you know, that is language that we
are comfortable with.
HOUSEL Okay. Well, my, as you heard, my concern is the traffic that's going to be
generated once everything gets built there and the need for that road to, you know, carry some of
that traffic. And my suggestion is to try to pick a reasonable time to get that road done — it seems
like to me that six years is a bit long — but allow an extension, if something comes up that
couldn't, is totally out of their control, would that be reasonable?
LEE: I'm not sure. Now you are binding future Planning Commissions to an
extension. But I'll leave that to Bobby Jean as far as the extension process.
WATANABE: Well, let me ask this. I started out this discussion that way. And maybe
we can have, hear from the other Commissioners, if they have similar concerns; not to drown out
Mr. Housel's concern here, but I think it will help us to see if there are other people in the
Commission that have like concerns. Mr. Beaudet?
BEAUDET: I think, I did have a couple of questions, but I think through the back -and -
forth between Mr. Lee and Mr. Housel those question have been answered, well, primarily the
relationship between the timing of the build -out or the time commitment for Road 1 and its
impact on the traffic study that was given to us at the last meeting. So I think Warren kind of
painted that picture a little bit clear for me just to see the impacts we're going to see on
Ka`ahumanu and Ka`iminani where my primary concern is with an extension of time or deferral
of time commitment on the construction of that road.
WATANABE: Given the way the proposed condition is worded now with providing the
developer six years, do you have concerns over that?
BEAUDET: I would prefer to stay at a date instead of shorten the period of time with
an option to extend. Usually when you give those options to extend, like Warren said, you are
obligating future Commissions, plus you are for the most part, you're giving the opportunity for
some lag at the front-end of the design -.
WATANABE: Okay, so is it safe to say you are comfortable with the condition as it's
worded?
BEAUDET: Yes.
WATANABE: Oh, okay, great. Mr. lokepa?
IOKEPA: You know, the Ka`iminani connector is always busy and, you know, with
this additional traffic we see there, I'm somewhat in agreement with Mr. Housel that, you know,
we are going to see additional traffic on there. However, what Mr. Lee has stated as far as Ane
Keohokalole Highway that's coming through, that will relieve a lot of that, the traffic, because
44
we are looking long-term for a north -south connector road rather than a mauka-makai, so -.
Although 1 somewhat agree with Mr. Housel, but I'm okay with what's presented.
WATANABE: Okay, thank you. Ms. Bowman?
BOWMAN: I just, I think, feel the same; 1 feel better with the mid road projects going
on. I just have one question, and I'm sorry, my short-term memory. Mr. Lee, when you were
talking about eventually, potentially the road might extend as far as Paniolo Drive? 1 mean that's
like 30 years down the road or -? Going to Waikoloa, the mid road.
LEE: Yes. Right now, let's say for the mid-level road, it is at the State level
identified, and in the Kona Development Plan, identified from Henry-Palani to Ka`iminani.
BOWMAN: Right.
LEE: Okay. So eventually what, we need to now get it on the map into this, into
what we call a STIP, on the STIP list, and the long-term plan is to get it from Ka`iminani to
Waikoloa.
BOWMAN: To Waikoloa. And my other question because I don't live up there, I
understand Mr. Housel's, you know, concern with the amount of residential units up there that
potentially could use, say, the road, and the university. And I'm just wondering, I mean, when
look at the mauka section, and I guess maybe people would be more willing to go towards
Waimea and go down that road to get to Palamanui rather than unfortunately going down the
access that's already down there, down Palisades.
LEE: Yeah, I think once the Road 4, or Road 1, gets built, for those that are
coming from the Waimea area would probably take that road to get to their, probably their
destination is the airport.
BOWMAN: Okay. I thought I heard my concern was that, or there was a concern that
there's so much congestion and so dense residential mauka that they would be using the Road 1.
LEE: I think there is congestion mauka, and that's what this Road 1, or Road 4,
will alleviate. So right now in the intermediate solution, which part of it has been already
implemented to improve the intersection at Mamalahoa and Ka`iminani. That was several years
ago with the dedicated right -turn lane from Ka`iminani onto Mamalahoa, so that you wouldn't
pack up downhill on Ka`iminani. So the next phase of that improvement for the County would
be to perhaps add a signal at that intersection.
BOWMAN: Okay. And just, what I'm hearing is that most of the traffic that will go
down Road 1 would be from people from Waimea, Waikoloa, say, mauka that would want to get
to the airport quicker.
LEE: That's my understanding.
BOWMAN: Okay, thank you.
W,
WATANABE: Okay. Ms. Giffin?
GIFFIN: Yes?
WATANABE: Your opinion?
GIFFIN: Yes. You know, Mr. Chairman, I'm looking at this whole project, I think,
from a different light. I see this project as a golden opportunity. We've always spoken about
how our county doesn't have any money to do the kinds of things that are always on our dream
list. One of the biggest dreams has been to expand our educational facilities on our side of the
island. Here we have various sources of money that we are so lacking, to come together and to
fulfill part of this. And so people that spoke today about education and education for the kids on
our side of the island, they spoke to me. I've raised kids on this side of the island, and like some
of the people that testified we've spent a fortune to send our kids away because of the lack of
opportunity. And so I understand we have issues. All projects have issues. That's been my
experience on this Commission. But I look at this as an opportunity, and I'm going to vote
positively for this.
WATANABE: Okay, thank you. So with that, Mr. Housel, I don't know actually if you
want to restate your concern or if you are satisfied that maybe the votes aren't there to -.
HOUSEL: Well, overall, I mean I'm all for this college and the development there. I
think Palamanui has done a tremendous job to plan this to work this out, working closely with
the University. I think that speaks very highly of what you are doing. There are always going to
be kind of mid -course tweaks that happen. And possibly as we get through this economic
downturn, maybe that park could happen sooner, okay? I would surely like to see that. And
possibly if we get something worked out on the Road 1 with the private owner, maybe that'll
happen sooner than we think. I'd surely like to see that. So I think in my opinion by far the
benefits outweigh the drawbacks. So I'm definitely going to support this.
WATANABE: Okay, thank you. Well, do we need any further discussion on this?
Doesn't look like it.
GIFFIN: No, but Mr. Chairman, I think that, and I would like to -.
WATANABE: Make a motion?
GIFFIN: Make a motion, but I'm going to need help. Then we always turn to our
legal counsel for wording. So, Brandon, with your help, help me with the wording for a motion.
WATANABE: It would be, yeah, forward a favorable -.
(Commissioner Giffin had brief discussion with Mr. Gonzalez.)
GIFFIN: I move that we have a favorable, a favorable recommendation — because
this goes to the Council, right, cause it's an ordinance -.
WATANABE: Right.
46
GIFFIN: Okay. On the Palamanui Global Holdings LLC, the rezoning of 05-10 to,
based on the Planning Director's recommendations and proposed conditions.
WATANABE: Okay, very good.
LEITHEAD TODD: Could 1 make a clarification -?
GIFFIN: Yes.
LEITHEAD TODD: That it would be the proposed recommendations of July 21, 2009?
GIFFIN: Revised. Yeah, yeah, yeah. Okay, so be it.
WATANABE: Okay, very good, very good. Mr. Housel.
HOUSEL: I'll second that.
WATANABE:
Okay, very good. Any further discussion? Doesn't look like it. Maija?
COTTLE:
Thank you, Mr. Chairman. Commissioner Giffin?
GIFFIN:
Aye.
COTTLE:
Commissioner Hensel?
HOUSEL:
Aye.
COTTLE:
Commissioner Beaudet?
BEAUDET:
Aye.
COTTLE:
Commissioner Bowman?
BOWMAN:
Aye.
COTTLE:
Commissioner Iokepa?
IOKEPA:
Aye.
COTTLE:
And Mr. Chairman?
WATANABE: Aye.
COTTLE: Okay, motion passes, six -zero.
WATANABE: Okay. Well, you've got everything you need — from us, anyway. Good
luck with the Council.
47
APPLICANTS: Thank you very much.
WATANABE: And thank you for continuing to believe in this community.
The discussion ended at 2:45 p.m.
Respectfully submitted,
Noriko Sauer, West Hawaii Secretary
48