2024-10-04 1250 Oceanside LLC Consolidated Hearing Brief (PL-BOA-2024-000104 & 105)

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B. Oceanside Takes Over Development of Hokuli`a. In late 2007, 1250 Partners defaulted on its loan and control over Hokuli`a reverted to its lender. During this time, development activities were halted and could only proceed with lender authorization and funding. However, in January 2011, 1250 Partners obtained Variance No. VAR 10-027 (the "Variance"), which covers, inter alia, the Makai Haleki`i Extension, Mauka Haleki`i Extension, and Connector Road. 104-ROA at 1596-1603; Ex. 105-8. 1250 Partners sought the Variance to allow for the retention of existing and construction of new twenty-foot wide paved roadways within fifty- and sixty-foot wide rights-of-way, without having to pave the shoulders of the roadways. The purpose of the Variance was to minimize excessive grading in order to mitigate potential environmental hazards, and to address concerns that the grading of the steeply sloping lands within Hokuli`a, coupled with a full pavement of the right-of-way, would increase the potential for storm water runoff. Oceanside acquired 1250 Partners' loan in late 2012, but before development could be fully resumed, 1250 Partners needed to restructure its debt under Chapter 11 of the U.S. Bankruptcy Code. During this time, however, the Mauka Haleki`i Extension was completed, which, like the Makai Haleki`i Extension and Connector Road, was constructed pursuant to plans approved by the County, including DPW. The Mauka Haleki'i Extension was dedicated to the County in 2012 and has been open to the public ever since. Ex. 104-10; Ex. 105-9. Oceanside emerged from the bankruptcy on July 1, 2014, in control of Hokuli`a. Since then, Oceanside has made significant strides towards revitalizing the once dormant Hokuli`a. Among other things, Oceanside contributed $20 million dollars towards the completion of the Bypass Extension and completed necessary project elements and infrastructure, including the Phase I Wastewater Treatment Plant, additional infrastructure improvements in subdivision Phases I and II, various golf course related amenities, and all archaeological mitigation. The 4881-6366-3335.6.051730-00058 11