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10. Current Application: By the time of this current application, each of the <br />three (3) parcels were involved in several subdivisions. For Parcel 177, the most recently <br />approved final subdivision is SUB 11-001115-r3. For Parcel 185, the most recently <br />approved final subdivision is SUB 14-001396. For Parcel 186, the most recently <br />approved final subdivision is SUB 16-001625. The applicant sought the <br />above-mentioned resolutions for the separate project phases to provide exemptions for <br />certain code requirements, pursuant to Section 201H-38 of the Hawaii Revised Statutes <br />for the Mohouli Heights Senior Neighborhood Project in South Hilo. Meanwhile, the <br />Planning Department was unaware that a project under HRS 201H could not exempt a <br />State Land Use Boundary Amendment for parcels over 15 acres and that the State Land <br />Use Commission (LUC) needed to review and approve those amendments per <br />HRS 20111-12(a)(3)(b). The Planning Department was also unaware that the Land Use <br />1 Conunission did not receive any formal notification during the 2009 environmental <br />assessment review period for the project that encompassed a land area of over 15 acres. <br />Phases 1 and 2 of the project completed construction in 2014 and 2017, respectively. <br />Realizing the oversight sometime in 2016, the Planning Department infonned the <br />applicant that a State Land Use Boundary Amendment was required. In 2017, the <br />applicant submitted an application for Phase 3, which the Planning Commission <br />forwarded a favorable recommendation to the County Council and notified the applicant <br />to submit a State Land Use Boundary Amendment for the remaining phases of the <br />Project. The Hawaii County Council approved Ordinance No. 18 16 for the State Land <br />Use Boundary Amendment for Phase 3. The applicant submitted this application for <br />Phases 1 and 2 on May 3, 2018. Through recent discussions with the Planning <br />Department, the State Land Use Commission agreed to allow the County Planning <br />Department to process the State Land Use Boundary Amendment for the subject parcels <br />at the county level through the Planning Commission with the understanding that similar <br />future projects will follow the proper procedures and shall be reviewed and approved by <br />the State Land Use Commission, as required by law. (PD Exhibit 7 — Section 201H-12 <br />and 201H-38 of the Hawaii Revised Statutes) <br />M <br />