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

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REQUESTS FOR TIME EXTENSION AND AMENDMENT TO ALLOW USE OF A SURETY FOR REQUIRED SUBDIVISION IMPROVEMENTS CHANGE OF ZONE ORDINANCE NO. 09 8 (REZ 07-000075) SPECIAL MANAGEMENT AREA USE PERMIT (SMA 07-000024) APPLICANT: HAWAII ONEI INVESTORS, LLC (formerly Kona Heights,LLC) PROJECT: LA`IPALA MAKAI SUBDIVISION KAPALA`ALAEA 2nd, NORTH KONA, HAWAII, TMK: 7-7-008: 121 I. BACKGROUND The original Applicant, Kona Heights, LLC, was successful in rezoning the subject property, consisting of approximately 11 acres, into the Single-Family Residential-7,500 square feet(RS-7.5) zoning district on February 9, 2009 (Exhibit A— Ordinance 09 8)in support of the development of a proposed sixty-two (62)-lot single family residential subdivision. In further support of this 2009 rezoning action and due to the location of the property within the County's Special Management Area(SMA), the Leeward Planning Commission issued SMA 07-000024, also with an effective date of February 9, 2009. (Exhibit B—SMA 07-000024). The original Applicant, Kona Heights, LLC, relinquished the subject property through final foreclosure proceedings on August 29, 2012. The successor and current Applicant, Hawaii Onel Investors, LLC, acquired the subject property from the lender's nominee on August 1, 2013. The Applicant's letter of authorization in support of these amendment requests is found at Exhibit C. In support of both the rezoning and SMA applications, the Planning Director offered its favorable recommendation to the Leeward Planning Commission, which was then adopted as its recommendation on the rezoning application to the County Council. (Exhibit D-Planning Director's Recommendation Report) II. APPLICANT'S REQUESTS Time extensions to Condition E of Ordinance 09 8 and Condition 4 of SMA 07-024 Condition E of the change of zone ordinance and Condition 4 of the SMA Permit both required completion of the proposed subdivision development within five (5)years of its effective date, or February 9, 2014. Although considerable planning, design and other"soft" work was done to address the conditions of approval, actual physical construction of the subdivision did not commence. As such, pursuant to Condition Y and Condition 15 of the change of zone ordinance and SMA permit respectively, an administrative time extension to February 9, 2019 was sought(Exhibit E-Applicant request dated January 30, 2014) and approved by the Planning Director by letter dated July 24, 2014 (Exhibit F—Time Extension Administrative Approval). 1Page Planning Dept. Exhibit 1