PD RECOMMENDATION REPORT (PL-SMA-2021-000004)

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King's and Beach golf courses is proposed. The new clubhouse would be about 20,000 square feet in size and offer food and beverage facilities, cart storage and other support facilities. Two public parks at the intersection of Ala Ihi Way and Waikoloa Beach Drive and well as pedestrian paths are also proposed. The overall Kumu Hou project consists of 1,164 multi-family residential timeshare units, 25 single-family residential lots, new golf clubhouse and driving range, community center(s), convenience commercial center, about 126 acres of open space areas, about 3 acres of public parks and paths, and a brackish water well for irrigation. Most of the land encompassing the proposed Kumu Hou project area is currently part of the King's Golf Course (King's Course) situated mauka of the Kings 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 despite an overall increase in resort visitor traffic. 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 a master plan to develop the Kumu Hou project across three (3) non-contiguous areas totaling approximately 182.9 acres of land. The development of the Kumu Hou project will be facilitated by several land use entitlements, including the amendment of SMA Use Permit No. 25 (SMA 25)to remove the land areas covering the Kumu Hou project, three (3) new SMA Use Permits, and two (2) Changes of Zone. Instead of amending SMA 25 to include the proposed uses, the applicant has chosen to apply for the subject SMA Use Permit to allow the development and operations of uses in "Areas B & C" of the Kumu Hou project area. According to the applicant, the new SMA Use Permit would allow the development of the proposed new facilities and amenities plus the ability to upgrade,repair, maintain, and operate existing or future facilities in the Kumu Hou project area. Furthermore, the new SMA Use Permit will support separate governance structures and conditions that will be relevant to differing -2-