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project that has been zoned; and I think the policy decision has been made to have development <br />for Multiple Family and Village Commercial in this area. It’s right in the core of Kailua-Kona <br />where the General Plan says you should do the development. So I think the policy decision is <br />the right way to go. <br />What we’re dealing with are, and these remarks I guess will apply to both the time extensions for <br />Ordinance No. 95-118 and Ordinance No. 90-010.They’re basically two rezoning ordinances <br />which cover that whole project area. The entire project area is about 6 ½ acres and the mauka <br />portion, which is the handle of what I call the hatchet, is Multi-Family zoned and the makai <br />portion is Village Commercial zoned. What was proposed in about the early nineties, I believe <br />and some of you may remember, the County was looking around to do a County office building <br />to try to consolidate the office operations for the County; and this project was one of the <br />frontrunners for the request for a proposal process that went through at that time. They <br />subsequently decided not to do the County Building, at least at this site. And so the developer <br />started then to proceed with the development of the Multi-Family on the mauka and the <br />Commercial on the makai. They’ve expended significant sums in terms of purchasing easements <br />for a sewer easement. So the sewer line runs from, I guess the makai blade portion of the hatchet <br />down through the auto dealership in the makai direction, down to Kuakini Highway. So the <br />sewer connection and other improvements were made off-site and the existing Single Family <br />dwelling that was on the site was demolished and the site graded to some extent. <br />So in partial answer to Commissioner Graham’s question about what happens if you say no, you <br />know, our position legally would be that we’ve had the zoning for in excess of 15 years, the <br />development on the project had progressed, we commenced construction and expended <br />significant sums. So we would have, I think, at least some argument that we had vested some of <br />our zoning rights. I think what the net effect of what the Planning Director has done in his <br />proposed conditions of approval, because these were relatively old zoning ordinances, is to <br />essentially address some of your questions in terms of the impacts to the community. We’ve <br />conceded with the Planning Director that we would accept the imposition of the new modern <br />conditions which require fair share contributions for roads, parks, police, fire, and all those <br />things that usually come along with the rezonings. And I think that that was significantly more <br />than was originally proposed. <br />The Planning Director has given you on the green sheet his amendments to the proposed <br />conditions; and our proposed conditions that you just received in the white, we have underlined <br />the proposed additions. The project proposal is along Hualalai Road just above the Regency and <br />the Condition E where we have underlined ½, this is to clarify that this applicant would be <br />responsible for ½ of the collector street improvements along the entire frontage of Hualalai <br />Road, and that the owner on the other side of the street would be responsible for their ½. We <br />have two more additions, the other ones are at Condition P, which is your fair share contribution. <br />The underlined portions are intended to allow the applicant to get credit against the road and <br />traffic improvements for the right-of-way, and the improvements for the left-turn pockets, and <br />the intersection improvements along Hualalai Road, which is, as I understand, fairly standard, <br />and also credit for the flood, access road and control gates that are being required as part of the <br />conditions from the Planning Director in Condition F. Those are intended to allow the <br />Department of Public Works to adequately access the drainage way that’s just to the mauka of <br />the project. <br />EXHIBIT B <br />5 <br /> <br />