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

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A majority 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of this, the applicant is seeking to secure three new SMA Use Permits and two Change of Zone applications for these withdrawn areas.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 to differing development plans and ownership anticipated for each of the three (3) areas to be undertaken over an extended period of time. The change of zone applications are necessary for implementation of the Kumu Hou Master Plan. In support of this, the applicant is seeking to secure three (3) new SMA Use permits and two (2) Change of Zone applications for these withdrawn areas.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 to differing development plans and ownership anticipated for each of the three areas. If approved, these new permits and ordinances will facilitate the development of the Kumu Hou project consistent with current code, rules, and requirements specific to development of the mauka area of the resort complex. The remainder of the 1,353 acres of land will continue to be controlled under SMA 25 and existing rezone ordinances that have controlled the uses within the resort area since 1977. Thus, while the Kumu Hou project area will be removed from coverage under SMA 25, any project related impacts to the SMA will be evaluated and appropriate mitigation will be conditioned in the concurrent SMA Use Permit recommendations. Since the last amendment to SMA 25 in 2007, several conditions of approval have been complied with, thus,the Director is recommending deletion of those conditions. Furthermore, the Director recommends modification of conditions that will have on- -2-