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PC-20 Page 2 April 9,2019
<br /> Mr. Fuke presented a brief history of the project. He explained that Dr. Matsuura, an orthopedic
<br /> surgeon, worked in his office across the street from the subject property, vacant land called
<br /> University Terrace. He envisioned building a large residential and medical campus there and
<br /> decided to purchase the lot. Mr. Fuke explained that Dr. Matsuura formed a family hui, now
<br /> called Wailani Development, LLC, and pointed out the local family members present before the
<br /> Council in general seating. Wailani purchased the property in 2009, and with local professional
<br /> assistance, completed the first phase of required plans while sharing their vision with the
<br /> community through a series of meetings. Zoning for the project was then approved in 2010,
<br /> followed by master plan approval in 2011. Project development then began with the hiring of
<br /> additional consultants and the completion of a water master plan, a sewer plan, a grading plan,
<br /> roadway construction plans, and the payment of water commitment fees - all of which remain
<br /> current. By this time Wailani had invested close to a quarter of a million dollars and sought
<br /> potential tenants, including a local supermarket and a local pharmaceutical company, to assist
<br /> with paying part of the required infrastructure costs of the project. However, the potential tenants
<br /> found the costs to be too exorbitant and could not assist. Wailani then hired a friend and
<br /> development consultant from Maui with extensive development experience in the islands to
<br /> review the project and provide feedback on what could be done to make the project financially
<br /> feasible and see it to its completion. Mr. Fuke made special note that Wailani is "in it for the
<br /> long haul" and not seeking to flip the property, though may sell portions of it or go into joint
<br /> ventures in the future.
<br /> Mr. Fuke explained that the current application included 17 amended conditions, 11 of which
<br /> were requested by the applicant based on the Maui consultant's recommendations and
<br /> Mr. Fuke's expertise. The remaining six were modified to reflect current development standards
<br /> and requirements. Of the applicant's proposed amendments, the Planning Department and
<br /> Commission gave a favorable recommendation to Conditions D, E, I, L, N, KK, and 00. The
<br /> Commission gave a favorable recommendation to the Planning Department's proposed
<br /> Conditions J, K, 0, S, FF, GG and HH. Both the Commission and Department gave an
<br /> unfavorable recommendation to the applicant's proposed amendments to Conditions P, Q and R.
<br /> Mr. Fuke stated the applicant was willing to concede with their decision on Condition Q (Modify
<br /> Access Requirements), but asked for editorial changes be made to the condition for clarity.
<br /> The main area of contention, as noted by Mr. Fuke,related to Conditions P and R in which the
<br /> entire project be constructed with curbs, gutters, and sidewalks. The applicant wanted to modify
<br /> this requirement to limit it to only certain areas in order to lower the overall cost of the project.
<br /> Mr. Fuke provided the comparison of the similar 80' wide, right-of-way Mohouli Street
<br /> extension in Hilo that was constructed with government funding without curbs, gutters, and
<br /> sidewalks, and noted the inequity and hypocrisy in requiring a private developer like Wailani to
<br /> do so. He cited what was required in the County Subdivision Code, which allows residential
<br /> subdivisions with six or less lots to construct non-dedicable roads, and reasoned that for the
<br /> residential portion of the development with lots of 15,000 square feet or less, the Subdivision
<br /> Code should apply.
<br /> Committee Chair Ashley Kierkiewicz clarified the three amendments to the conditions in which
<br /> the applicant and the Planning Commission differed. She outlined Mr. Fuke's request that
<br /> Condition P would eliminate the curb, gutter, and sidewalk requirement for the second stage of
<br /> PC Report No.:20
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