PD BACKGROUND REPORT (PL-SMA-2022-012_AmendSMA-07-024_&_PL-REZ-2022-014_AmendREZ-07-075)

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In recent months, the handful of lenders have expressed an interest, but because of the uncertainty surrounding the entitlements, cannot make such a commitment without first having the extensions in place. In spite of the COVID-19 pandemic, the Applicant believes that with the required extensions, which enhances receipt of the required financing, the project can be developed within the extended period. Upon purchase of the subject property on August 1, 2013, Hawaii One 1 Investors, LLC placed a huge financial commitment and many months of consultation, negotiation, environmental review, design work and regulatory compliance to secure the necessary entitlements that will allow for the development of this project. Much of this upfront work was necessary in order to support construction of Phase 1 of the subdivision, which when completed, will help to support the completion of the remainder of the 62-lot subdivision. As such, the Applicant is requesting a five (5)year time extension from the effective date of the rezoning time extension ordinance to secure the necessary funding and complete construction of the project as required by Condition E of Ordinance 09 8 and Condition 4 of SMA 07-024. And with approval of the requested amendment to Condition K of Ordinance 09 8, the Applicant will have the opportunity to provide an acceptable form of surety to ensure the construction of the subdivision drainage system along with the subdivision's roadway and water systems as a means to secure Final Subdivision Approval, which then affords the Applicant additional opportunities to secure the necessary funding to complete this project. IV. PROJECT LOCATION The subject site consists of 11.05 acres and is identified by TMK: 7-7-008:121. The property is located mauka of Alii Drive, immediately adjacent to the south of Keauhou View Estates and White Sands Beach subdivisions and bordered to the east (mauka) of the proposed Kahului-Keauhou Parkway in Kapala`alaea 2, North Kona, Hawaii (Figure 1-Location Map). V. PROPOSED DEVELOPMENT The Applicant has filed with the County an application for the subdivision of the 11-acre property into 62 single family residential parcels ranging in size from 3,082 to 6,501 square feet(Figure 2-La`ipala Makai Phase 1 Subdivision Plat Map). Three (3) additional parcels will be set aside either as an archaeological preserve, park and open space. In order to develop the subdivision with lot sizes smaller than the minimum 7,500 square feet allowed by the Zoning Code, the Applicant was successful in securing a Planning Unit Development(PUD)Permit(PUD 15-000032) on February 25, 2016 (Exhibit GPUD 15-032 Permit letter only). The purpose of the PUD to allow for smaller lot sizes is to promote a more pedestrian-oriented community that would not be possible with the current subdivision standards for roadway construction, and to combine 5Page