PD BACKGROUND REPORT (AMEND SMA 25_PL-SMA-2021-001)

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future development of 900 multiple-family residential timeshare units, community support facilities (including a community center, convenience retail center, maintenance operations center, additional employee and other parking), golf support facilities (including relocation of the golf clubhouse and driving range, and a new cart path), public parks and paths (including two gateway parks and open space features and pedestrian paths) and related improvements and landscaping; and ■ "Area C"- Situated west and north of Area B and encompassing approximately 3.1 acres of land, comprised of vacant land and a pond that is accessory to the King's Course,which is not presently in use. A new SMA Use Permit is being sought concurrently to allow the future development of a new brackish water irrigation source and distributions system that will be developed to support the landscape irrigation needs of"Areas A and B." As stated above,the applicant has concurrently submitted three (3)new Special Management Area Use Permit(SMA) applications and two (2) Rezoning applications to cover"Areas A, B, and C"to facilitate the development of the Kumu Hou at Waikoloa project(Kumu Hou) for the same land area. A more detailed discussion of the proposed Kumu Hou project will be included in the Background and Recommendation reports for the concurrent SMA Use Permit and Change of Zone Applications. 2. Reason for the Request: Most of the land to be removed from coverage under SMA 25 is currently part of the King's Golf Course (King's Course) situated mauka of the King's Highway Foot Trail (King's Trail). According to the applicant, demand for golf at the King's Course has significantly diminished over the last 20 years. This trend and the extended closure of the resort/golf courses during the Covid-19 pandemic has caused long-term financial challenges for the resort and analyses indicate that the resort's current and long-term future demands could be supported with 27 golf holes at the resort(18 holes in the makai Beach Course and a reconfiguration of nine (9)holes in the King's Course). Based on the preceding, the applicant has developed the Kumu Hou master plan that will repurpose the lands from golf course and vacant use to develop the Kumu Hou project. In support of this,the applicant is seeking to secure three new SMA Use Permits and two Change of Zone applications for these withdrawn areas. The intent of the new permits is to support separate governance structures and conditions that will be relevant -2-