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HomeMy WebLinkAboutCOM 0051.012 2020-2022 COUNTY CLERK P/PC COUNTY OF HAWAI'I of(' it RECEIVED J Time 7: p.�t. sY UV COW-51 Re: Opposition to Bill 11 Date FEB 2 5 2021 February 16, 2021 Aloha Madam Chair and members of the County Council Planning Committee, At the end of my testimony, I have provided a timeline, numerous documents and news articles that detail the history of the Hiluhilu/Palamanui project and the manner in which the once completely separate, wholly-independent development of a new West Hawai'i campus for the Hawai'i Community College became dependent upon the private development of the adjacent Lam/Hunt/Schwab property. Among the requirements made by the state 2005 Land Use Commission and the 2006 and 2009 county councils were the concurrent development of infrastructure, as dictated by the Kona Community Development Plan, and the forming of a public/private partnership with the University of Hawai'i to develop a West Hawai'i campus. Committee member David may remember the concerns of then-county council District 8 representative Angel Pilago when he voted against this project in 2006. Because of complex, involved history of this development and in order for this Committee to make the best decision, I urge the members to, at a minimum, defer Bill 11 and request the Planning Department to prepare and present an analysis of the events, approvals, and agreements, both legislative and administrative, that have involved the development of the properties and special interests associated with Bill 11 over the past thirty years. Such an analysis is the only way for this Committee, as well as citizens of this county, can make an informed determination that Bill 11, as written or amended, is being fair to the citizens of this county and that the Bill is following through with the commitments made to us that enabled the HiluHilu/Palamanui project to be approved and move forward in the first place. Otherwise, please vote against Bill I l and keep the existing state and county requirements for the Palamanui development in place. Mahalo, Chuck Flaherty The .pdf document attached to the e-mail containing my testimony is the PBR Kona Community Development Plan Public Facilities Financing Plan from March 2010 to provide context for the amendments currently being proposed to the existing rezoning ordinances. 1990:University of Hawaii Board of Regents decision prompts the search for alternative sites for the University Center, West Hawaii. 1991: The 500-acre Kalaoa site is selected from seven candidate sites and approved by the Board of Regents. Hawaii Community College—Palamanui will be located on approximately 73 acres in the northwestern corner of the 500-acre parcel. Comm.No • Ref.To: Ref. Date FEB 16 2021 1999: In 1999, Guy Lam forms Hiluhilu Development, Inc. 2000: Design work for Phase I of the University Center, West Hawaii at Kalaoa begins but is only partially completed before work is halted pending UH decisions on alternate sites for the University Center, West Hawaii. 2001: Talks begin for a public/private partnership between Hiluhilu and the University of Hawai'i to develop a new West Hawai'i campus at Kalaoa. November 2003: The Board of Regents authorize an MOU between the University of Hawaii and Hiluhilu Development, LLC (Palamanui Partners, LLC's predecessor)to discuss joint development opportunities for adjacent properties held by the two entities. April 2004: The MOU between the University of Hawaii and Hiluhilu is amended. December 2004: State Land Use Commission hearings begin for redesignation of Hiluhilu development from the Agriculture and Conservation Land Use Districts to the Urban Land Use District. June 2005: LUC redesignation with conditions for HiluHilu Development, Inc. approved. Hiluhilu commits to building a"mini-campus" on its property to be converted to private use after new campus is built by University of Hawai'i on its Kalaoa property. See LUC Decision and Order here https://files.hawaii.gov/liic/cohawaii/a03744 hiluhilu 06132005.pdf October 2005: University of Hawai'i selects Hawai'i Campus Developers from three finalists to design and construct new facilities for the HCC campus. May 2006: The Hawai'i county council Planning Committee begins hearings on the rezoning ordinances to allow for development of Hiluhilu project. Hiluhilu offers to construct 20,000 sq. ft. classroom building on the University's Kalaoa land instead of the mini-campus on the Hiluhilu project site with the investment not to exceed$5 million. July 2006: The Hawaii county council approves the Hiluhilu rezoning in exchange for a developers' agreement to provide certain infrastructure for the college campus. August 2009: https://www.huntcompanies.com/news/hunt-development-group-partners-with- charles-sc hwab-and-guy-lam-for-a-400-million-master-planned-development-in-hawaii November 2007: Governor Linda Lingle releases $2 million for the planning and design of the campus at Palamanui. September 2009: Hawai'i county council Planning Committee approves amendments to the Palamanui rezoning to allow for a delay in constructing the mauka-makai connector road and the public park. https:Hhawaii247.com/2009/09/01/palamanui-chaiiges-before-planning-committee/ October 2009: Hawai'i county council approves amendments to Palamanui rezoning. https://hawaii247.com/2009/10/07/Talamanui-amendments-before-council/ November 2009: The UH Board of Regents approves the Long Range Development Plan update and name change to Hawaii Community College—Palamanui upon construction of the permanent college. July 2010: Governor Linda Lingle releases funds to help build an access road to the future site of Hawaii Community College—Pdlamanui. December 2010:University officials and Pdlamanui Partners sign a private-public partnership agreement to build the access road to the future site of Hawaii Community College — Palamanui. February 2012: The University of Hawaii receives $9.68 million from PdIamanui Partners LLC to help construct the college campus. August 2012: Governor Neil Abercrombie releases $7.5 million in bonds to help construct Phase I of Hawaii Community College—Palamanui, which includes classrooms, science laboratories learning kitchens, a library and learning center. November 2012: Construction bidding for Pdlamanui begins. January 2013: The lowest bidder withdraws bid, leaving a funding gap of about $8 million. February 2013: The University of Hawaii Board of Regents approve plan to repurpose $6.5 million in bonds to be used for P51amanui. March 2013: University of Hawaii awards $22.7 million construction contract for Phase I of the Pdlamanui project to F&H Construction. April 2013: https://www.westhawaiitoday.com/2013/04/1 1/hawaii-news/palamanui-process- proceeding/ May 2013: The Legislature approves an additional $2.4 million to fully fund the construction of Phase I of Hawaii Community College—Pdlamanui. November 2013: Construction work begins. Posted on: Thursday, December 4, 2003 UH in venture to develop Kona campus By Beverly Creamer Advertiser Education Writer The University of Hawaii has joined forces with a private developer to work toward a college campus on the Big Island's Kona coast as part of a"university village"that could include a golf course,housing and a shopping mall. Besides giving UH its first permanent campus in booming Kona,the plan marks the university's initial foray into the kind of public/private partnership that is gaining acceptance with the UH Board of Regents as the way to proceed in financially strapped times. Regent Ted Hong has endorsed the concept—not just on the Big Island,but also in considering plans for a West O'ahu campus in Kapolei. "I think it's a great deal,"Hong said. "The same thing that should be done with West Oahu. We get buildings and infrastructure.All we have to worry about is furniture and people." A memorandum of understanding was signed Nov.21 between the university and the Big Island's Hiluhilu Development LLC,associated with Charles Schwab,committing the two entities to exploring joint development of adjoining properties mauka of Kona Inteniational Airport at Keahole. The university owns 500 acres of state land east of the airport,but it's all rock,with no water,roads,power,or sewage treatment facilities. Hiluhilu also owns a substantial portion of similarly undeveloped land and has expressed willingness to finance the infrastructure and then lease buildings to the university, said Jan Yokota,director of capital improvements for the UH system. Currently,UH offers classes at the West Hawaii Center in a few rented spaces in Kealakekua and serves 500 students,both as a community college and with distance learning for classes in four-year degree programs. But to keep up with growth on the Kona coast and throughout the Big Island,better and larger facilities will be needed. UH projections call for completion of Phase I of the permanent campus by 2006.It would serve 750 students. "The plan is to move it to another location farther up the coast to service more people and have more of a university campus,"said Yokota. "Initially,we would lease space from them as we are leasing space in the shopping center(in Kealakekua)now." The memorandum of understanding notes that the cooperative development will be master-planned to include classrooms,office, living accommodations, food service and supporting commercial facilities for the West Hawaii Center. "My understanding is they will give part of that parcel(above the airport)up to a private developer in exchange for the private developer building the commumity college at no cost,"said Hong,of the Kona plans. "The developer is planning a golf course,homes around the golf course,and he wants to put in a shopping mall... and we walk into it." It will also have some shared costs, although the agreement calls for Hiluhilu to pay for all shared roads,plus other shared infrastructure required to open the first phase. Capital infrastructure costs that benefit only the university will be paid by the university. Thursday, December 9, 2004 Big Island development could help UH A $305 million project would set up some infrastructure for a new college campus By Rod Thompson rthompson@starbulletin.coni KATLUA-KONA >> Construction of a new University of Hawaii campus in Kona would get a jump start from an adjoining private development under a proposal to be heard by the state Land Use Commission today. Hiluhilu Development LLC wants to develop 725 acres near Keahole Airport primarily for housing but also including a golf course, a 120-room hotel, commercial space and a "University Village Center" next to state land. The development cost is estimated at$305 million. On 500 acres of adjoining state land, the University of Hawaii wants to create a 33-acre campus for its Center at West Hawaii under the umbrella of Hawaii Community College in Hilo. Community college chancellor Rockne Freitas said the university does not have money to develop it. Talks have been under way since 2001 on how the university and Hiluhilu could help each other, said Guido Giacometti, the representative for Hiluhilu, a project of stock brokerage owner Charles Schwab and Kona contractor Guy Lam. Last year, the university and Hiluhilu signed a memorandum of understanding that they would do joint planning and infrastructure development, Giacometti said. The first step for Hiluhilu is today's hearing at the Hapuna Beach Prince Hotel in which the company will ask to have conservation and agriculture designations on its land changed to urban. Eventually, Hiluhilu would build a mauka-makai road and provide electrical, water and sewage service, saving the university those costs. The University Village Center would include six acres of university space, along with 28 acres of commercial space, a 10-acre medical center and 50 acres designated for research and development, such as companies like those at the state's nearby Natural Energy Laboratory of Hawaii. Rounding out the picture would be 845 housing units, including duplex-style student housing costing up to $350,000 and buildable lots costing up to $400,000. The university already operates a West Hawaii center in leased space in South Kona. The plan is for the university to get its permanent North Kona campus going by instead leasing facilities built by Hiluhilu, perhaps as soon as 2007. The Hiluhilu classroom buildings would be designed to be converted to shop storefronts if the state develops its own campus so it no longer needs leased space, Giacometti said. After Hiluhilu gets state approval, it would still need rezoning from Hawaii County. That could be a problem because of Mayor Harry Kim's policy of not permitting new developments that add traffic to adjoining Queen Kaahumanu Highway until the state widens it. But Kim's Planning Director Chris Yuen supports Hiluhilu, at least at this stage of the planning, saying its proposed mauka-makai road would relieve traffic on Kaahumanu. UNIVERSITY of rIAWAIT at- MAN( r Baa`w Search this site LTH Board of Regents approves agreement with Hawaii Campus Developers to build new campus for Hawaii Community College Hawaii Community College External Affairs &University Relations Posted: Oct 27, 2005 HILO, Hawaii—At its meeting held this week at the University of Hawai`i at Hilo and Hawai i Community College (HCC), the University of Hawai'i Board of Regents {BOR} approved the selection of the developer recommended to them as the lead candidate to design and construct new facilities for the HCC campus. "The approval of Hawaii Campus Developers, marks the beginning of exciting things to come for Hawaii Community College," said HCC Chancellor Rockne Freitas. "We are extremely pleased as we embark on the next step of this newly adopted process to plan, finance and build our new Big Island campus." Hawaii Campus Developers, which includes Regent Partners and Aristos Partners, based out of Atlanta, and Farallon Capital Management, was selected from a group of three finalists who were asked to submit proposals and attended an August 2005 meeting. Selection was based on several factors evaluated by a committee. The new facilities are expected to be constructed at HCC's Komohana Campus in Hilo, which is comprised of a 122-acre parcel, and the University of Hawaii Center in West Hawa'i'i which is a 500-acre parcel located mauka of the Kona Airport. Freitas believes completion of the campus will double the current enrollment of HCC within two years of opening the new facilities. HCC will now enter into exclusive negotiations with Hawaii Campus Developers to finalize the required project and environmental documentation by conducting a thorough feasibility analysis; develop a Campus Development Master Plan (CDMP); and reach a development agreement, form leases and other legal documents that would allow the Developer to go forward with the development of projects upon final approval by the Board of Regents. Stat a n " Vol. 11, Issue 135 - Monday, May 15, 2006 New campus proposal being offered By Rod Thompson rthomi)sona,starbulletin.com KAILUA-KONA >> A West Hawaii land developer is making a new proposal that could speed the birth of a new community college campus in West Hawaii north of Kailua-Kona. But the offer by Hiluhilu Development LLC to start the campus on 500 acres of state land depends on getting Hawaii County Council approval for a residential and commercial project on Hiluhilu's own 725 acres right next door. The Planning Committee of the Council will consider the Hiluhilu development tomorrow, but approval is uncertain. Hiluhilu previously proposed to build a minicampus on its own land, rent it to the state, then convert the buildings to private use when the state's permanent campus is built. Hlluhilu's new proposal is to skip the temporary campus, said company representative Guido Glacometti. On adjoining state land, the company would build 20,000 square feet of interior space arranged in one or two buildings, Giacometti said. That is more space than the University of Hawaii Center at West Hawaii now has, he said. Hiluhilu is offering the beginnings of a campus on state land, which the Kona community wants, because Hiluhilu needs to get the community on its side. A public hearing by the County Council last month showed significant opposition to its own project, called Palamanui, with 845 houses and apartment units plus business space. "The development dramatically increases traffic in the area," said area Councilman Pete Hoffmann. That is nearly fatal where traffic on Queen Kaahumanu Highway almost halts during rush hours. The West Hawaii university site, upland from the Keahole Airport, has been planned for 15 years. Recently, the Department of Hawaiian Home Lands proposed a new site, closer to the center of Kailua-Kana. The offer is not likely to be accepted, said Hawaii Community College Chancellor Rockne Freitas. "Clearly, the 500 acres (near the airport) is more in line with what the community was looking forward to," he said. The regents already approved Hawaii Campus Developers LLC, a partnership of two Atlanta companies, to develop the West Hawaii campus. Giacometti said Hiluhilu's offer of the first building or two does not conflict with the Atlanta group's role, since Hiluhilu would develop only a few acres. BIG ISLAND NEWS - Hiluhilu gets the go- ahead West Hawaii Today- Saturday, July 8, 2006 9:18 AM HST HILL} -- Hiluhilu Development's rezoning and $480 million "University Village" project on 425.2 North Kona acres got final council approval Friday. The council voted 6-2 to approve rezoning from agricultural and open to project district Hiluhilu's acreage a mile northeast of the Kona International Airport mauka of Queen Kaahumanu Highway and below Makalei Estates subdivision. Bob Jacobson, Puna, Ka'u, and South Kona, and Angel Pilago, who represents the North Kona, cast the two dissenting votes. Gary Safarik, of Puna, was absent. Jacobson consistently has voted against the project since council first considered it in May, and opposed any agricultural rezoning since being elected in 2002. Pilago, however, previously voted in favor of the development, and changed his position because he disagreed with the language of Bill 224. Pilago was "perturbed" that the eighth draft introduced by Council Chairman Stacy Higa stated that, "In lieu of paying the fair share contribution, the applicant may contribute land and/or construct improvements/facilities related to parks and recreation, fire, solid waste facilities and roads within the region." Pilago preferred the legislation state that the applicant "shall" contribute laud and/or construct public facilities. Council approval of Bills 224 and 225 means that Hiluhilu-- a partnership between discount broker Charles Schwab and Keauhou-Kona Construction Company-- may build 1,116 residential units, with 200 deemed affordable; commercial space for medical clinics, offices and stores; and a 120-unit University Inn and Conference Center. Hiluhilu, as part of its project, has committed to building a 20,000-square-foot building on 500 acres of state land south of its property. Additionally, it must build a two-lane connector road between its northern boundary to Kaiminani Drive through the university's permanent campus and another road to connect Queen Kaahumanu and Mamalahoa Highways. Hiluhilu is working with Peter Lynch Investments and the state to cross their land, and not use Makalei Drive for that mauka-makai connector. Makalei Drive is, according to the bill, to be "a'minor road' and will not be open to the public until the collector Road 4 is open for public use." Collector Road 4 is the mauka-makai connector. A July 6 letter to the County Council from Lynch indicates he has been communicating with Hiluhilu and the county about an 8,000-foot-long road of way that would traverse 23.5 acres of his land and that "any changes in land uses for our future development cannot be guaranteed by the county and may require State Land Use Boundary amendments and county rezoning in accordance with state laws and county ordinances." Present were Hawaii Community College Rockne Freitas and Regent Andres Albano Jr. Higa; Virginia Isbell, of South Kona; Pete Hoffmann, of Kohala; Fred Holschuh, of Hamakua; and James Arakaki, of Hilo; all expressed appreciation that he was in attendance and asked that he and his fellow regents will begin to plan and urge legislative funding for the West Hawaii campus now. "You bring credibility to the whole project," Arakaki told Albano. "Mr. Freitas has always been telling us the regents are for it. Then we hear stories that you want to go to Hawaiian Homes. We hear conflicting things. You being here tells us this is what you really want to do."