2020-08-20 Leeward Exh A (SLU 20-000053 & REZ 20-000241)

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so, one of the reasons why they reverted it was because the applicant, which was Waikoloa Mauka, or Waikoloa Highlands, - - - did not comply with the conditions that they were required to, one of them being affordable housing. And that became a big part of that hearing where it was the understanding of the applicant by giving up this 11.7-acre to a non-profit agency for the sole purpose of building affordable housing, that that would comply. But as Mr. Julkowski mentioned and Zendo mentioned, there was some things that happened that are actually, I believe, under investigation right now, and we are where we are. Currently, the State Land Use designation is now Ag for the property. The zoning is Open and Rural, and the General Plan reflects the zoning. And, you know, there's discussion as to the whole background of this, but as far as Planning goes, Planning looks at it from a Planning standpoint; we have certain criteria that we look out for approval or favorable recommendation or unfavorable when it comes to change of zones. We differ in our interpretation of where the General Plan line lays as far as medium density, we, we've listed in detail as to the reasons why the Planning Director is recommending unfavorable. VITOUSEK: And so, this CARR SMITH: - - -, Sorry. VITOUSEK: Okay, so this area was part of the Waikoloa Highlands, and a part of the condition of the Land Use Boundary Amendment was that this piece be built as affordable housing? DARROW: It was a requirement in the State Land Use, as well as the Change of Zone, to do affordable housing. The applicant ended up subdividing a portion out and transferring it to what was thought to be a non-profit corporation. And again, that's, that whole thing's got a little unclear, I might say, and it's still being looked at at this point. VITOUSEK: But that was the previous applicant, right? DARROW: Correct. VITOUSEK: So DARROW: The land that, that transfer happened to an entity called Plumeria at Waikoloa. That entity ended up selling it to Pua Melia, which is the entity with Danny Julkowski. VITOUSEK: Okay, so the Waikoloa Highlands, they planned for this to be the affordable housing component of their development, and then transferred it to a non-profit who was intending to build it. They failed in their compliance and then sold to the current applicant? DARROW: Well, I'll just say that the understanding for the Waikoloa Highlands and Mauka was that when they did that transfer to that particular non-profit corporation, that they complied with their affordable housing agreement. Again, there's been questions as to whether the legality of that transfer, and then that particular entity ended up selling it to Mr. Julkowski - - - 12 - -12 EXHIBIT A