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Home My WebLink AboutREP LAAC 029 2026-01-22 2024-2026I REPORT OF THE LEGISLATIVE APPROVALS AND ACQUISITIONS COMMITTEE DATE: January 22, 2026 PLACE: Council Chambers Kailua-Kona, Hawaii TIME: 10:43 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 689/Bill No. 121 Your Committee on Legislative Approvals and Acquisitions, to which was referred Bill No. 121, reports as follows: Bill No. 121, transmitted by Managing Director William V. Brilhante, Jr., via Communication No. 689, dated December 29, 2025, amends Ordinance No. 09-159, as amended, which reclassified lands from Agricultural — 5 Acres (A-5a) to Multiple -Family Residential — 30,000 square feet (RM-30) at Keauhou, North Kona, Hawaii, covered by Tax Map Key: 7-8-010:101 (Applicant: Kona Country Club, Inc.) (Area: 51.058 acres). The Leeward Planning Commission forwards its favorable recommendation for the requested ten-year time extension to Condition D (complete construction). The property is located mauka of the Mamalahoa Highway Bypass, between the highway and the Kona Country Club mauka golf course. Planning Director Jeffrey Darrow, Corporation Counsel Renee Schoen, Deputy Corporation Counsels Sylvia Wan and Jean Campbell, Office of Housing and Community Development (OHCD) Specialist Ann Bailey, and the applicant's Planning Consultant Sydney Fuke were present in Chambers. Mr. Darrow provided a PowerPoint presentation regarding Bill 121 via Communication 689.1. Mr. Fuke noted that the requested extension pertains to completion of construction rather than initiation and that the applicant has satisfied all regulatory conditions to date, including, drainage, solid waste, archaeological and cultural requirements, roadway improvements, and fair share obligations, with expenditures exceeding $7 million, exclusive of land costs. Mr. Fuke emphasized that a ten-year extension is necessary for financing feasibility and indicated the applicant's willingness to work cooperatively with the OHCD to resolve outstanding affordable housing matters. Committee Member James Hustace questioned the status of affordable housing credits referenced in the communications. Ms. Bailey explained that audits conducted following prior investigations revealed that certain previously issued credits, originally obtained from another developer, were invalid and therefore rescinded and that OHCD remains open to working with the applicant toward a new affordable housing agreement consistent with Chapter 11 requirements. Committee Member Ashley L. Kierkiewicz disclosed a potential conflict due to a professional board relationship involving Mr. Fuke. Ms. Shoen advised that no ethics violation existed and that Ms. Kierkiewicz could participate in discussion and voting. Committee Member Rebecca Villegas expressed strong opposition to the project, citing concerns regarding luxury development, water usage, infrastructure capacity, community character, and long- term impacts on housing affordability for local families. She emphasized that repeated time extensions LAAC Report No. 29 LAAC-29 Page 2 1 January 22, 2026 granted under older ordinances no longer reflect present community needs and stated that she could not support the measure. Committee Member Holeka Goro Inaba gave a brief summary of a proposed amendment via Communication No. 689.4, which removes the option for future time extensions. He explained that the amendment would require the applicant to reapply should the project not proceed within the approved timeframe, thereby preventing perpetual extensions. Mr. Fuke stated that the applicant was agreeable to the amendment. Bill 121 was amended by the contents of Communication No. 689.4, which was approved with eight "ayes," and Mr. Kdneali`i-Kleinfelder absent. Committee Member Michelle Galimba noted that while community concerns were valid, the project has met all applicable planning requirements and involved substantial investment by the landowners, and she expressed support based on those standards. Committee Member Jenn Kagiwada shared reservations regarding the project's focus on high -end housing and its limited contribution to addressing the County's housing crisis. She expressed frustration with repeated time extensions but indicated conditional support due to the adopted amendment and the significant expenditures already made by the applicant. Additional discussion occurred regarding affordable housing compliance under Chapter 11, potential future code amendments, and whether obligations would be determined under existing or amended law. Ms. Campbell clarified that any affordable housing agreement must comply with the code in effect at the time the agreement is executed and that absent an executed agreement, future amendments could apply. Further dialogue between Mr. Inaba, Mr. Darrow, and Mr. Fuke addressed fair share calculations, prior payments made, and the likelihood that additional fair share contributions would be required under a new plan approval. Mr. Inaba noted his continued concern regarding evolving requirements and timelines and stated that while he recognizes the applicant's prior investments, he remained conflicted on the measure. Your Committee on Legislative Approvals and Acquisitions is in accord with the purpose and intent of Bill No. 121, as amended to Draft 2, and recommends its passage on first reading. dbk AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALI`I-KLEINFELDER X KIERKIEWICZ X KIMBALL X ONISHI X VILLEGAS X Respectfully submitted, COMMITTEE ON LEGISLATIVE APPROVALS AND ACQUISITIONS EATHER L. K MBALL, CHAIR LAAC REPORT NO.: 29 ADOPTED: FEB 0 Q2026