2018-10-18 Leeward Exh C (AMEND REZ 926)

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makai of Queen Ka‘ahumanu Highway, between the 87 and 84 mile marker, Kaūpūlehu, North ʻ Kona, Hawai‘i, collectively referred to as Lot 4-A and Lot 4-B. KAY: Yes, thank you, Mr. Chair. If I can direct your attention to the screen. The subject property, or the subject project area, is located in the North Kona District of Hawai‘i Island, and it’s identified, or known, as Kaūpūlehu Project District. For your reference, Queen ʻ Ka‘ahumanu Highway is running generally east-west through the slide, and the subject project area is outlined in red. Just for reference, you’ve got the Kona Village Resort located here along the shoreline and the Hualālai Resort to the west. So this is kind of an interesting application; it’s kind of multiple parts. First, the applicant is requesting a determination from the Planning Commission and County Council if a formal request for a time extension of the 20-year development period articulated in Condition B, Development Period, is needed. That condition states, “This project area shall be called the Kaūpūlehu Project District will be ūpūlehu Project District. The development period for the Kaʻʻ 20 years from the effective date of approval of the Project District Ordinance.” If it is determined ultimately by the County Council that a time extension to Condition B is needed, the applicants are requesting a 20-year time extension to allow the completion of the remaining development activities on the subject parcels. So we didn’t come to you first to try and deal with the determination, get a determination from the Council, then have to come back for the amendment; the applicant asked to kind of do it all in one shot. In addition to this, there was a Condition BB of the ordinance that required an overall status report at the 20-year mark for the Planning Director, Planning Commission and County Council to consider as well. So the reasons for the request is the applicants believe that the 20-year development period for the KaʻProject District comes from a representation made in the Project District application stating, “full buildouts of the project is expected over 20 years.” The applicants believe that the 20-year development period condition was likely only added to allow the Planning Department, Planning Commission and County Council an opportunity to review the overall progress of the development of the project after 20 years as required by Condition BB, which reads, “Twenty years from the effective date of the Kaūpūlehu ʻProject District Ordinance, the applicant shall submit an overall status report of the project, including the percentage of the completed development. The Planning Director shall also provide an assessment of the development of the Project District and its compliance with conditions of approval for transmittal to the Planning Commission for their review and recommendation and then forward to the County Council for their review and action.” So it’s a bit of a mouthful. I didn’t add a slide here, but ultimately in 1999 the Project District Ordinance 99 42 rezoned the 1,078.634 acres from Open to Project District in order to develop a resort residential community consisting of 530 single-family homes and 500 low-rise multiple-family units, 36 holes of golf, a golf clubhouse, an eleven-acre neighborhood commercial center with 45,000 square feet of leasable space, a three-acre residence/members recreation club and a 70-acre area for public shoreline access facilities and other recreational uses and cultural activities. So that’s the development against which we are trying to determine whether or not it’s been complete. The applicants believe that if the ordinance intended for the applicants to apply for a formal time extension, there would be no overall status report condition, but a clear directive to request a 2 EXHIBIT C