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PLANNING DEPARTMENT
101 Pauahi Street, Suite 3 Milo, Hawaii 9672(1-3043
(86819hi-8288 Fax(808)961-8742
April 8, 2003
Mr. Robert Stuit
1250 Oceanside Partners
78-6831 Alii Drive #K15
Kailua-Kona, HI 96740-2440
Dear Mr. Stuit:
Change of Zone Ordinance No. 97-36 (REZ 846) Condition No. Q
Applicant: 1250 Oceanside Partners
Subject: 2003 Annual Progress Report
Tax Map Key: 8-1-004: Portion of 003
This is to acknowledge receipt of your detailed annual progress report relating to the
Member's Lodge at Hokulia dated March 21, 2003 as required under the above
referenced rezoning ordinances.
Thank you for your attention to this matter. The report will be forwarded to the County
Council and the Planning Commission for their reference. We look forward to the
submittal of your next annual progress report on or before March 13, 2004.
If you have and questions, please feel free to contact Jeff Darrow of our office at
961-8288.
Sincerely,
CHRISTOPHER (I~ YUEN
Planning Director ~Qq~
Comm. No. _
JWD:pak Ref. To:
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Mr. Robert Stuit
1250 Oceanside Partners
Page 2
April 8, 2003
xc w/report: Hawaii County Council
Planning Commission
Planning Dept. -Kona
March 21, 2003 r~
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Mr. Christopher J. Yuen, Planning Director G_-~~_~;~ ,
County of Hawaii Planning Department
Aupuni Center, Suite 3
101 Pauahi Street
Hilo, Hawaii 96720
Subject: 2003 Annual Progress Report
Change of Zone Ordinance No. 97-36
Condition No. Q -Annual Report Condition
Member's Lod;;a
Hokuli'a (The Villages at Hokukano)
Dear Mr. Yuen:
I am pleased to submit the following progress report for the Change of Zone Ordinance
97-36 ("Ordinance") relating to the Lodge ("Project") at Hokuli'a. This report will
indicate the status of the Project and compliance with the conditions of approval for the
Ordinance, which changed the zoning drsigration of 14.85 acres from Agriculture (.41-a)
to Resort (V-6.0).
As you know, in a letter dated February 28, 20(12. from your office, we were granted an
administrative time extension of compliance for all conditions of approval for the above-
referenced Change of Zone Ordinance until March 13, 2007. We fully appreciate your
favorable consideration for our ongoing efforts in proceeding to comply with the
approved conditions of approval. Therefore, while we have additional time to comply
with the conditions of approval, we would like to give you a brief overview of where we
are on the Project and how we are proceeding with complying with the conditions of
approval of Change of Zone Ordinance No. 97-36.
Members' Lodge
We have conducted various architectural and planning studies for tl;e lodge facilities, its
development, phasing and scheduling. SMA Permit No. 403 for the facility was
approved approved by the Planning Commission on May 5`h, 2000. In December of
2001, we submitted an application for Final Plan Approval to the Planning Department.
An administrative time extension was granted by the Planning Director on February 28,
2002, to comply with all conditions of approval of Change of Zone Ordinance No. 97-36
by March 13, 2007. However, the Member's Lodge is the subject of on-going litigation.
At this time.. the Circuit Court has ruled that the zoning is invalid as "spot zoning" and
has invalidated the underlined Ordinance. The Circuit Court trial with respect to
Oceanside "vested rights" in the Lodge has net been scheduled. Oceanside does not
Mr. Christopher J. Yuen, Planning Director
March 21, 2003
Page 2 of 5
agree with the court's ruling and intends to appeal to the Hawaii Supreme Court at the
appropriate time.
Golf Course
The Golf Course was completed in July of 2002. Detailed compliance with the
conditions of approval of Use Permit No. 115 and SMA Permit No. 345 for the golf
course will be provided in the 2003 annual reports for these permits October of 2003.
Archaeology
Oceanside obtained approval from SHPD on September 7, 1999 and September 15, 1999
of the Archaeological Mitigation Plan that includes a data recovery plan, an interim
protection/preservation plan, interpretive plan and a monitoring plan. We are currently in
the process of preparing the final Preservation Plan in consultation with DLNR and
Hawaiian community organizations. As required by the terms of the land use
entitlements for the Project, approved mitigation measures are being implemented prior
to or in conjunction with land alteration on the property. ]n addition, the Circuit Court
ordered Oceanside to submit another Burial Treatment Plan to the Hawaii Island Burial
Council relating to a number of "inadvertent" burial sites discovered during
archaeological "sweeps" of the property. While Oceanside does not agree with the
court's ruling and intends to appeal, we have submitted the new Burial Treatment Plan as
ordered.
Mamalahoa Highway Bypass
The Mamalahoa Highway Bypass is in part, designed to address existing traffic
conditions in the area and to provide an alternative route for interregional traffic between
North and South Kona in support of the County's long-range traffic plan. The Draft
Environmental Impact Statement Final Environmental Impact Statement (DEI and FEIS)
were both approved and accepted by Department of Public Works. The construction
plans are in at the County for review and approval. SHPD approved the Archaeological
Inventory Survey on November 21, 2001. Construction work began in January 2002.
Oceanside has acquired all of the necessary properties for the alignment of the Bypass
Highway except for a few properties at the south end of the Bypass, which are under
existing purchase agreements, and the Coupe/Richards property. That latter property is
the subject of a Condemnation action in which the Circuit Court has currently vacated the
Order of Possession. The County has appealed the court's ruling and has obtained a new
Condemnation Ordinance from the County Council that is not being brought pursuant to
the Development Agreement between Oceanside and the Cotmty.
Oceanside has completed mass excavation, culvert installation and subgrade preparation
for the majority of the Bypass, from Alii Drive to Halekii Street. Placement of roadway,
shoulder, and ranch intersection base material is currently being completed for the north
half and paving at the north end of the Bypass began on March 19, 2003. Burial site
21833 that lies underneath the southbound lanes and located 300' north of the Halekii
Mr. Christopher J. Yuen, Planning Director
March 21, 2003
Page 3 of 5
Street intersection is still impacting completion of the Bypass to Halekii Street. A
presentation will be made to the Burial Council on March 20`h recommending
disinterment and re-interment of the burial site to a location makai of the Bypass corridor
and north of Halekii Street. Until this re-interment is approved by DLNR, the Bypass can
not be completed to Halekii Street as designed and approved by the County Department
of Public Works. Oceanside has started the mass excavation and culvert installation,
south of Halekii Street. However, Oceanside was ordered by the Third Circuit Court of
the State of Hawaii on December 11, 2002 to vacate the Coupe Trust land which is
located approximately one mile south of Halekii Street. Therefore, mass excavation and
all subsequent work can not be completed until the County can successfully obtain an
order of possession of the land needed to construct the Bypass.
Oceanside was anticipating submission of final plans for the Mamalahoa
Highway/Bypass/Napoopoo Road intersection to the County Department of Public
Works by April, 2002. However, due to the above circumstances, completion of the
Bypass will be delayed until the legal matters are resolved.
Subdivision and Final Plan Approval
Our subdivision and Final Plan Approval plans for the Lodge are still being coordinated
with the other applicable conditions of approval that affect this part of the Project and
preliminary plans are in the process of review and revision. We would note that
Oceanside has reviewed final subdivision approval for Phase 1 and Phase 2 of the
agricultural lot development. We are in an ongoing process for this subdivision phase of
the Project. For your information, Tentative Approval of Phase III of the Agricultural
subdivision was granted on July 30, 2002.
Development Agreement
Oceanside 1250 and the County of Hawaii entered into a Development Agreement to
identify the obligations of Oceanside to provide assurance that these obligations are met
in a timely manner, to provide assurances to Oceanside that it may complete full
development of Hokuli'a, including the Project, to allow Oceanside and the County to
enter a reimbursement agreement for costs associated with the Bypass, and to reduce or
eliminate uncertainty in the responsibilities of Oceanside and the County. All activity
related to the Lodge parcel is consistent with the terms and conditions of the Agreement.
This progress on the Development Agreement will, in part, allow us to fulfill the terms of
Condition K in Ordinance 97-36.
Special Management Area
Oceanside has submitted an SMP. Permit to the County fer the Lodge and its related uses
on January 14, 2000, and hearings and action. The Planning Commission approved SMA
Use Permit No. 403 to allow for the development of an 80-unit private members lodge,
related onsite and intiastructure improvements and other related improvements on May 5,
2000, with 12 conditions of approval.
Mr. Christopher J. Yuen, Planning Director
March 21, 2003
Page 4 of 5
Coastline Park
Oceanside obtained approval of the Public Access and Shoreline Management Plan on
January 29, 1999. This plan addresses the public access areas, perpetual access
covenants, archaeology, marine resources and related improvement measures. Details of
the provisions for historical sites were developed and will be implemented as part of the
comprehensive archaeological mitigation plan that was approved by SHPD on September
7, 1999 and September 15, 1999. We are in the process of completing an Archaeology
Inventory Survey for the State Parcel at Hokukano Village and retaining a consultant to
prepare a Preservation Plan for the Coastline Park. Further, Oceanside received a verbal
order from DLNR/SHPD on March 6, 2003 stopping limited maintenance activities and
have been required to prepare a chronology of events regarding the work in the Coastline
Park.
In addition, Oceanside obtained approval of both the CDUA HA-2977 and SMA Permit
No. 401 that outline the proposed facilities to be developed in the Coastline Park. We are
in the process of preparing the necessary documents as required and anticipate the
preparation of construction plans as required by the conditions of approval of both
permits to ensure that they are complied with. The annual report required by SMA
Permit No. 401 will provide greater detail of our progress on this component of the
Project.
The first phase of the coastline park with the required public parking stalls was opened on
August 1, 2002.
Employee Housing
As confirmed in the attached letter from Housing Administrator Edwin S. Taira, the
requirements of Ordinance No. 97-36 related to affordable housing are superceded by the
provision of Chapter 11 of the Hawaii County Code related to Affordable Housing.
Section 11-8 of the Affordable Housing Policy states that: "This policy supersedes all
previous affordable housing requirements. Any affordable housing condition or portion
thereof in a prior rezoning ordinance which has not been fully satisfied as of the effective
date of this policy my be re-assessed, to the extent it has not been fully satisfied, pursuant
to this policy upon the initiation of the person or entity which is legally required to satisfy
such condition. However, in no event shall the County of Hawaii reimburse or be
obligated to reimburse any person or entity for the partial or full satisfaction of an
affordable housing condition in any ordinance which became effective prior to the
effective date of this policy."
We believe that, in addi±ien to fully meet the requircmcrts of Condition M of Ordinance
97-36 and the Cowlty Affordable Housing Policy, the proposed employee housing
program will provide meaningful benefits to those Hokulia Lodge employees seeking to
move toward home ownership. Condition M of Ordinance 97-36 was fulfilled with the
execution of an agreement between 1250 Oceanside Partners and the County of Hawaii,
by the adoption of the Agreement dated August 29, 2002 by the Mayor's office pursuant
Mr. Christopher J. Yuen, Planning Director
March 21, 2003
Page 5 of 5
to the County Council's Resolution No. 183-02 dated April 3, 2002. A copy of the
Agreement is attached as an exhibit of this 2003 annual report for Change of Zone
Ordinance No. 97-36.
Anuual Progress Report
This report is meant to fulfill our obligation to prepaze an annual progress report as stated
in Condition Q of the Ordinance.
There are no other items to report that effect the status of the Project as it related to the
conditions of the Ordinance. Oceanside 1250 intends to meet all of the terms and comply
with all of the conditions that are specified within the Ordinance. Oceanside will also
comply with all applicable laws, rules, regulations and requirements in development of
the Project. We have also included a Matrix that shows the status level of each condition
of approval of Change of Zone Ordinance. 97-36.
I trust the above provides a useful description of the status of development and
compliance with the conditions of approval for the Ordinance.
Should you have any questions regarding this report, or if you require further information
regarding the Project, please contact either myself or Malcolm Patten, at 324-4218.
Sincerely,
OCEANSIDE 50
Robert A. Stuit
Vice President, Development
Enclosure
cc: John DeFries w/enclosure
Peter Lems w/enclosure
Malcolm Patten w/enclosure
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