HomeMy WebLinkAboutCOM 0043.000 2002-2004Harry Kim
Mayor
December 5, 2002
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PLANNING DEPARTMENT
101 Pauahi Street, Suite 3 • Hilo, Hawaii 96720-3043
(808)961-8288 • Fax(809)961-8742
Mr. Duane Kanuha, Vice President
Surety Kohala Corporation
101 Aupuni Street, Suite 206
Hilo, HI 96720
Dear Mr. Kanuha:
Special Management Area (SMA) Use Permit (SMA 341)
Change of Zone Ordinance No. 32-109 (REZ 747)
Use Permit (USE 111)
Applicant: Surety Kohala Corporation
(formerly Chalon International of Hawaii, Inc.)
Subject: 2002 Annul Progress Report
Tax Map Key: 5-7-003: Portion of 002 and 010
Christopher J. Yuen
Director
Roy R. Takemoto
Deputy Dircoor
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This is to acknowledge receipt of your 2002 Annual Progress Report submitted by letter dated
November 13, 2002. Thank you for complying with this requirement.
We shall update these files to reflect Surety Kohala Corporation as the new name.
By copy of this letter, we shall forward your report to the County Council and Planning Commission
for their review.
Your next annual report shall be due on or before November 8, 2003.
491 V
Comm. No. `,
File No. /�►
Ref. To:
Ref. Date 12 2002
Mr. Duane Kanuha, Vice President
Surety Kohala Corporation
Page 2
December 5, 2002
Should you have any questions regarding this matter, please contact Susan Gagorik or Esther tmamura
at 961-8288.
Sincerely
J �L-
CHRI TOPHE
. YUEN
Planning Director
SG:cps
p:\ptiblic\WPWfN60\StiSAN\LettCTS\AR.SureLyKohalaCorpsma341 skg.doc
cc w/ltr: County Council
Planning Commission
Planning Dept. - Kona
SURETY KOHALA CORPORATION
101 AUPUNI ST, SUITE 206 HILO, HAWAII 96720 . TELEPHONE: (808) 934-7033 . FAX: (808) 934-7231
*� >._',; 19 F;n 1 02
November 13, 2002
Mr. Christopher J. Yuen, Director JiL
Department of Planning
County of Hawaii
100 Pauahi Street, Suite 3
Hilo, HI 96720
SUBJECT: ANNUAL PROGRESS REPORT — ORDINANCE NO. 93-109
MAHUKONA, NORTH KOHALA, HAWAII
TMK: 5-7-03:02 Portion and 10 Portion
Dear Mr. Yuen:
In compliance with Condition "U" of Ordinance No. 93-109, Surety Kohala Corporation
hereby submits the annual progress report for 2002. Condition "U" states that:
"(U) an annual progress report shall be submitted to the Planning Director prior to the
anniversary date of the change of zone. The report shall include but not be limited to,
the status of the development and to what extent the conditions of approval are being
complied with. This condition shall remain in effect until all of the conditions of
approval have been complied with and the Planning Director acknowledges that
further reports are not required."
The anniversary date of Ordinance No. 93-109 is November 8, 1993.
Status of the Company
Effective November 28, 2001, the name of the company was changed from Chalon
International of Hawaii, Inc. to Surety Kohala Corporation, a Hawaii subsidiary of Surety
Holdings Corporation. There is no change in the officers and directors of the corporation,
except that President Masahiro Kume has replaced former Sr. Vice President Takeshi
Okumura. All operations, personnel, and assets remain the same with the exception that
Surety Kohala Corporation has no further connection to Chalon International or the
Chalon Group.
In late 2001, Chalon International and the Chalon Group underwent voluntary Chapter 11
reorganization in Japan. The former company is expected to recover from that
reorganization by mid -2003.
Mr. Christopher J. Yuen, Planning Director
Annual Progress Report for Ordinance No. 93-109
November 13, 2002
Page 2
Status of the Development
Surety Kohala Corporation has undertaken an extensive overall master planning and
economic/marketing analysis in 2002.
This effort began by retaining the economic consulting firm of Economics Research
Analysis (ERA) out of San Francisco. The Hawaii based planning firm of Helber, Hastert
& Fee was contracted to develop a series of economically viable development scenairos
for the Mahukona project and eventually a world class development team of planners,
land use attorneys, communications specialists, and development coordinators was
formed. Project coordination is being handled through Contact Development Corporation
(CDC), and land planing is being done by EDSA, a nationally recognized
planning/architect firm from Florida and Santa Barbara. Legal work is being done by
Baker & McKenzie's San Francisco offices, and InterCommuni cations Inc. is handling all
graphic design and production work.
The goal of this team effort is to prepare a comprehensive investment program for
potential investors by the end of 2002, select joint venture partners by the middle of 2003,
and being construction by the end of 2003. To this end, Surety Kohala Corporation has
already entered into preliminary development memorandums with a very exclusive hotel
operator for a low-density 75 -unit all -suite hotel on the Mahukona site. We have also
signed a similar agreement with a noted "minimalist" golf course architect whose most
recent project is among the top 5 golf courses in the US. The Mahukona project will be
the first for both the hotel operator and golf architect in the state of Hawaii.
Our marketing studies have shown that there is a strong niche marketplace for a very low
density project which offers luxury on-site amenities (lodge and fractional ownership
units, sports and dining facilities) and proprietary common ownership in a unique off-site
eco -ranch on approximately 3,000 acres of our upland Kohala holdings
Design and engineering for off-site infrastructure has been modified to complement the
reduced density. We have continued to coordinate the timing of power, water, and
private wastewater requirements for this scaled down phasing with the appropriate
agencies.
Compliance with Conditions
The enclosed table shows the conditions status to date, including those related to SMA
Permit No. 341 and Use Permit No. 111. All applicable conditions have been complied
with.
Mr. Christopher J. Yuen, Planning Director
Annual Progress Report for Ordinance No. 93-109
November 13, 2002
Page 3
Please feel free to call on me at 934-7033 if there are any questions regarding the above.
Sincerely,
uane Ka uha, Vice President
Surety Kohala Corporation
enclosure as
Cc Masahiro Kume
Steve Lim/Carlsmith (Hilo)
UPDATED: 11/02
CONDITIONS STATUS REPORT
FOR MAHUKONA PROJECT
STATE LAND USE (ORD. 93-109) AND ZONING (ORD. 93-108) [Nov. 8. 1993]
SMA NO. 341 AND USE PERMIT N(1 111 f lnnr 1 F 1 gg11
CONDITION
SUMMARY DESCRIPTION
DUE
REMARKS
ZONE A, SMA 1,
UP 1
Applicant, its successors or assigns shall be responsible for
complying with all stated conditions.
Ongoing
Corporate name change from Chalon International
of Hawaii. Inc. to Surma Kohala Corporation
11/28/01 .
SMA 2
SMA permit becomes effective on the rezoned lands, when
rezoning is granted.
Complete
Effective date is 2/27/96 per Plnq Dept Itr dtd
2/13/98.
ZONE B(1)
Effective date of Change of Zone shall be: 1) When applicant
provides assurances to Water Supply, Planning Dept., State
Dept. of Health and State DLNR that a water source of
Complete
Complied. Ping Dept Itr dtd 3/1/94.
sufficient quality and quantity has been established within two
years from the enactment of the ordinance (Nov. 8, 1993); a
one year extension will be granted by the Planning Director.
ZONE B(2)
Effective date of Change of Zone shall be: 2) an agreement
together with appropriate bond, surety or other security
acceptable to Planning Director, is executed between
Applicant, Water Dept. and Planning Department for the
actual development (construction) of the proven water
source, transmission and distribution system within one year
from the official date of compliance with condition B,1.
Complete
Water Commission approved agreement (2/27/96).
Effective date of rezoning is 2/27/96 per Plnq Dept
Itr dtd 2/13/98.
DWS request to purchase additional well storage
facility sites to expand Kohala source transmission
Negotiations with DWS for pro rata calculations to
expand Kohala source and transmission ongoing
ZONE C, SMA 3
Construction of the hotel and all interior roads providing
access to parking areas for Public Shoreline Access areas
shall be completed within five vears from the effective date of11/(
the ordinance (3/27/96)
3/27/01
Five (5) year extension request submitted to Ping
Director 10/23/00. Extension to 3/27/06 approved
29/00)
ZONE C, 1-5,
SMA 12, UP 6
Open space, buffers or easements shall be provided, as
determined by Planning Director for: 1) Maumalei Shrine and
hotel swimming pool, 2) Ko'a Shrine and golf course; 3)
Mahukona Park / Harbor access road and the Public Access
Parking lot off the same road and golf; 4) a minimum of 140
feet from the certified shoreline to the proposed hotel at
Ongoing as
plans for
various
project areas
are created.
The buffer zones and easements will be shown on
the various Plan Review maps as they are
submitted to the Planning Department.
Nishimura Bay; 5) Boundaries of Kapaa Park /Mahukona
Park. All plans to show improvements, structures,
landscaping and parking stalls.
CONDITION I DESCRIPTION I DUE I REMARKS PAGE 2
ZONE D, SMA4,
Archaeological Data Recovery Plan and Preservation Plan
Ongoing
Mauka-and makai-sides of project cleared for
UP4
must be approved by State DLNR and the County Planning
grading work. Interim site protection measures —
Department prior to plan implementation. These agencies
staking and flagging —were implemented per
SHPO/DLNR requirements and on-site approval.
must verify in writing that the plans have been executed. No
land alteration can occur in the project area until at least the
data recovery fieldwork and interim protection measures are
verified to be successfully executed.
ZONE E, SMA 5,
Should any unidentified archaeological sites be located
During
Ongoing monitoring during grading/land clearing
UP 2
during construction, work shall cease in the immediate area
construction
process.
and the Planning Dept. shall be notified. Subsequent work in
this area shall only take place upon clearance from the
Planning Department.
SMA 11, UP 6
40 -foot shoreline setback line measured from the certified
Before start
40' shoreline setback staked at holes abutting or
shoreline shall be staked prior to any land alteration in the
construction
close to shoreline.
affected area. No improvements within the setback area will
be granted unless permits are granted.
ZONE F, SMA
1) Analysis of flood/drainage problems at the existing
Complete
Report sent to DPW 12/27/96.
10, UP 8
drainage structures along Akoni Pule Hwy.shall be
completed. 2) A drainage system shall be installed meeting
with the State Highways Division requirements.
ZONE G
Applicant shall formulate a housing plan which shall be
Prior to Plan
All housing requirements complied with. 76 credits
consistent with the affordable housing policy of the County
Approval for
for Ainakea housing project and 21 credits for Hawi
(Res. No. 65). Housing Plan to be approved by County
resort zoned
Makai self help housing project (Council Housing
Housing Agency prior to Plan Approval of any resort zoned
area
Agency Resolution No 128 dtd 11/6/01). Housing
area.
plan to be submitted to Cty Hsing Agency at
appropriate time in development process.
ZONE H
Applicant to formulate a job training program for operating
Prior to Final
phase of the hotel. To be submitted to Ping Director for
PA for hotel
review and approval prior to receipt of Final Plan Approval for
the hotel.
ZONE I
Applicant to design project lighting to minimize impacts on
During hotel
Pending final hotel design and configuration.
Ko'a shrine and to meet requirements of Ord. No. 88-122
design
(lighting ordinance).
ZONE
Recreational Improvements: 1) Kapaa park improvements to
Before
Specs for Ph.1 approved by Cty Parks and
J(1) Phase 1
be completed and available for public use include potable
opening golf
Recreation 12/13/96.
water system, electrical service to existing pavilion and rest
course
room/pavilion facility improvements.
CONDITION I DESCRIPTION I DUE I REMARKS PAGE 3
ZONE
Recreational Improvements: 2) Mahukona Park
Before
Specs for Ph.1 approved by Cty Parks and
J(2) Phase 1
improvements to be completed and available for public use
opening golf
Recreation 12/13/96.
include potable water system, electrical service to the existing
course
pavilion and rest room/pavilion facility improvements.
ZONE J (3-6)
(3) Applicant to conduct site studies for phases 1 & 2 and
Prior to
Site plans;studies approved by Parks/Rec and
submit to Ping Dept for review/approval in conjunction with
opening of
Planning 12/13/96. Mtq w/P&R on 10/30/02 for
final PA for golf course/hotel; (4) applicant shall fund
golf
status update and discussion other parks options
including expansion to Kamehameha Park.
studies/design/construction drawing for phases 1 & 2; (5) if
course/hotel
Cty cannot obtain appropriate land use permits for phases 1
& 2, Applicant may obtain approval to open golf course
and/or hotel by posting bond, surety, letter of credit or other
security acceptable to Cty. Cty may also determine
equivalent amount of improvements be reallocated to other
offsite parks and recreational purposes within the North
Kohala district; and (6) cost of improvements, expenses or
programs contributed by the applicant shall be credited to
satisfy public access and roadway improvements contained
in Condition O and Conditions 3 & 6 of SMA No. 341 and
Condition 5 of Use Permit No. 111.
ZONE K
Applicant to provide fair share contribution for fire, police,
Final
solid waste, and roads. Fair share is based on
subdivision or
residential/hotel unit density for zoned area. Fair share is to
plan approval
be satisfied at time of receipt of final subdivision or plan
approval. Fair share contribution can be met in the form of
cash, land, facilities, or any combination thereof: a) $44,350
fire and $9.280 police; b) $1,911,750 state/cty road and traffic
improvements; and c) $20,750 for solid waste disposal
functions.
ZONE L SMA 14
Groundwater and coastal water quality monitoring plans are
Before
Plan submitted to Ping (1/28/97) and DOH
UP 10
to be submitted to the Ping Director for approval in
construction
(2/25/97)
consultation with the State Department of Health.
ZONE M, SMA
150 -foot wide landscape easement shall be set aside on the
Complete
Landscape easement plan was submitted to Ping
8, UP 3
mauka and makai sides of the Akoni Pule Hwy. Easement
Dept on 10/27/94. Landscape easement plan
shall be delineated on all plans, including Subdivision Plans.
accepted by Ping Dept (7/30/96)
The landscaping plan within this easement area shall be
submitted to the Planning Director for review and approval
prior to issuance of final subdivision approval for any portion
of easement area, or Final Plan Approval for the golf course.
CONDITION I DESCRIPTION I DUE I REMARKS PAGE 4
Plan to include landscaping, which may include golf course
fairways, tees and greens, identifying plant species, related
improvements such as irrigation facilities, maintenance
roads/paths and other drainage, access or utility corridors,
and a program for ongoing maintenance.
ZONE N SMA 9
Project shall have underground telephone, water, electrical
During design
UP 7
and cable television utility lines. No overhead utility lines
of project
shall be permitted.
ZONE O, SMA 6,
Applicant to submit public access plan to the Planning
Complete
Shoreline Access Plan accepted by Planning
UP 5
Director in consultation with DLNR for review and approval.
12/10/96.
Plan to include mauka-makai and lateral shoreline access, a
minimum of 10 parking stalls for each of the four (4) parking
Build w/ Hotel
areas, signs, restrictions on use (if any), provisions for public
access through the project roadways to the parking areas for
night fishing.
Resurfacing improvements to the Mahukona Park and
Harbor Access Road from its intersection with Akoni Pule
Hwy. down to Mahukona Park subject to approval of Public
Works.
Provision of toilet facilities at appropriate locations (build with
subdivision/hotel roadways)
ZONE P SMA 7
Conservation District lands to set aside as public shoreline
Prior to final
Attorneys conducted preliminary research and
access area via an agreement which shall be recorded with
PA for hotel or
working draft is under in-house review Preliminary
the Bureau of Conveyances prior to the issuance of Final
lots
discussions on conservation district masterplan
Plan Approval for the hotel or final subdivision approval for
initiated. Planning firm to be selected this qtr
any phase of the proposed lots
ZONE Q
Applicant shall participate with State Dept of Transportation
Prior to or in
Cost estimates established. No major issues
on regional highway improvements on a pro rata basis, to
conjunction
anticipated.
include: 1) improvements to Akoni Pule intersections within
with w/hotel
the North Kohala region, 2) channelization and street lighting
plan approval
of project access to Akoni Pule Highway; 3) dedication of
additional right-of-way to State along Akoni Pule Highway
fronting the project; 4) guardrails, where needed, along
highway right-of-way to protect lower lots from highway traffic;
5) non-structural protection of highway traffic from errant golf
balls for all links bordering highway, 6) closing of all unused
access points to Akoni Pule Highway fronting the project
II CONDITION I DESCRIPTION I DUE I REMARKS PAGE 5 11
area. Items 1 and 3 shall be credited towards the applicants
fair share contribution for state and county road and traffic
improvements under Condition K.
ZONE R SMA
13
All residential, commercial and hotel units and uses shall be
connected to a sewage treatment plant meeting with the
Must be
operating
Plant being designed and sized against project
requirements.
approval of appropriate governmental agencies. Plant shall
before
have a standby generator to operate in the event of an
electrical power outage.
occupancy
ZONE S
Restrictive covenants in all deeds of all the proposed lots
shall prohibit the construction of a second dwelling unit. The
Prior to final
subdivision
Language researched and drafted.
covenant shall be reviewed and approved by the Planning
approval
Department prior to final subdivision approval.
ZONE T
Applicant shall comply with all applicable laws, rules,
Ongoing
regulations and requirements, including those of the Dept. of
Health, Fire and Dept. of Water Supply.
ZONE U
Applicant shall submit an annual progress report prior to the
Prior to 11/8
Report for 2001 dtd 11/7/01 submitted and
anniversary date of the change of zone.
of each yr
acknowledged by Planning Department (12/19/011
ZONE V
Should Council adopt a Unified Impact Fee Ordinance,
conditions included with this ordinance shall be credited
towards the requirements of the Impact Fee Ordinance.
ZONE W
An extension of time for the performance of conditions within
Time extension request for Condition C submitted
the ordinance may be granted by the Planning Director upon
to Planning Director (10/23/00). Extension to
consideration of 4 factors. If an additional time extension is
2/27/06 approved (11/29/00)
required, the Planning Director shall submit the request to the
County Council for appropriate action.
UP 13
Applicant shall use Planning Department's Guidelines for golf
Completed
Incorporated w/golf course PA
course design (November 1989). County to determine
appropriate setbacks at time of Plan Approval.
UP 12
Final Plan approval for the golf course shall be secured from
Completed
Grading Permit issued 12/27/96.
the Planning Director within 18 months from the effective
date of this permit (June 16, 1993). Plan Approval must be
submitted a minimum of 45 days prior to the approval date.
Grading and clearing work ON GOLF COURSE
has been ongoing for most of the reporting period.
New grading permit extension into 2002 approved
by DPW.