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PLANNING DEPARTMENT
IOl Pauahi Street, Sui[e 3 Hilo, Hawaii 96720-3043
(808)961-8288 Fax(808)961-8742
August 6, 2003
Steven S.C. Lim, Esq.
Carlsmith Ball
121 Waianuenue Avenue
Hilo, Hawaii 96720
Dear Mr. Lim:
Special Management Area Use Permit No. 381 (SMA 381)
Change of Zone Ordinance No. 98 30 (REZ 882)
Applicant: Kamehameha Investment Corporation
Subject: Annual Report
Tax Maa Key: 7-8-010: Portion of 002 (KIC Area 53)
This is to acknowledge receipt of your letter dated July 30, 2003, containing an annual
report in compliance with Condition No. 10 of SMA Use Permit No. 381 and Change of
Zone Ordinance No. 98 30 (REZ 882). Thank you for complying with these
requirements. The next annual report will be due on or before April 14, 2004.
If you have any questions, please feel free to contact Jeff Darrow at 961-8288.
Sincerely -
CHRISTOPHER J?~ EN
Planning Director
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TEL@PHOLIL (808) 935-6644 LAX (808) 935-7975
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July 30, 2003
Christopher J. Yuen
Planning Director
Planning Department
County of Hawaii
101 Pauahi Street, Suite 3
Hilo, Hawaii 96720
Re: 2002 - 2003 Annual Report -Ordinance No. 98-30 (REZ 95- l8)
Applicant: Kamehameha Investment Corporation
Request: Unplanned/A-Sato RS-10, RM-2, RM-3.5, RM-5.5 and Open
Tax Map Key' 7-8-IO~~ortion oft (KIC Area 531
Dear Mr. Yuen:
On April 14, ] 998, Ordinance No. 98-30 rezoned tax map key parcel
7-8-1 O:portion of 2, situate at Kahaluu, North Kona, from Unplanned (U) and Agricultural (A-Sa)
to Single-Family Residential (RS-10), Multiple-Family Residential (RM-2, RM-3.5, RM-5.5) and
Open (O) district classifications. On December 27, ] 999, the County Planning Director approved
NZC 99-4, a nonsignificant zoning change involving the subjecC property in which zoning
boundaries were adjusted to accommodate the County's proposed Alii Highway realignment
project.
Pursuant to Condition S of Ordinance No. 98-30, applicant Kamehameha
Investment Corporation (hereinafter the "Applicant") submits its 2002 -2003 annual report for the
subject project, outlining its compliance with the substantive conditions of approval and listing in
order the governmental "Condition" and Applicants "Response" to the same.
Status of Development
Kamehameha Schools has completed its Statewide Strategic Plan. Accordingly,
Applicant is in the process of reorienting its development goals For the Keauhou Resort.
Currently, Applicant is working with the County on the locations of the intersections for the
proposed Alii Highway realignment project, which is located at the Makai/West boundary of this
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Christopher J. Yuen
July 30, 2003
Page 2
project Area 53. In the event thaC Applicant should require a time extension to comply with any of
the conditions set forth herein, it will apply for said time extension pursuant to Condition T below.
Condition A: The applicant, successors or assigns shall be responsible for complying with all of
the stated conditions of approval.
Response: Applicant will comply with the foregoing condition.
Condition B: The applicant, successors or assigns shall be responsible for complying with all of
the conditions of approval of the Special Management Area Use Permit for the
subject property.
Response: Applicant will comply with the foregoing condition.
Condition C: Within three (3) years from the enactment of this ordinance, the applicant shall
provide assurance satisfactory to the Department of Water Supply and the
Planning Director, upon consultation with the State Department of Health and the
State Department of Land and Natural Resources, that a water source(s) of
sufficient quality and quantity can be established. The effective date of the
changes in district classification(s) shall be the date on which the Planning
Director has certified such assurances to be satisfactory. Such satisfactory
assurance can be met by the actual drilling and testing of a well site of the water
source or by the submittal of a hydrological study certifying that a water source(s)
of sufficient quality and quantity can be established at the designated location(s).
The actual development of the water source and its water transmission and
distribution system shall be developed in conjunction with the subdivision
approval process. Residential building permits shall not be issued until the
approved water source is developed and its transmission and distribution system
for such source to the subject property has been constructed. Residential building
permits may he issued for model home complexes, provided that such model
homes shall not be occupied until the approved water source is developed.
Response: On November 8, 2000, the County Planning Director approved athree-year
extension of time to April 14, 2004. See, Exhibit 1 attachec! to the 2001 annual
report.
Condition D: Final Subdivision Approval for the residential subdivision and Final Plan
Approval for the multiple family residential development for Phase 1 shall be
secured within five (5) years from the effective date of the rezoning as determined
in Condition C of this ordinance. Prior to commencing construction for any of the
Christopher J. Yuen
July 30, 2003
Paae 3
proposed multiple family residential developmenC, Final Plan Approval shall be
secured from the Planning Department in accordance with Chapter 25 Division 7
of the Zoning Code relating to Plan Approval. A master plan and development
schedule of the entire proposed development within the subject property shall be
submitted with plans for subdivision review for Phase i.
Response: Applicant will comply with the foregoing condition.
Condition E: Restrictive covenants in the deeds of all proposed residential lots within the
subject property shall prohibit the construction of a second dwelling unit on each
lot A copy of the proposed covenants to be recorded with the Bureau of
Conveyances shall be submitted with the plans for subdivision to the Planning
Director for review and approval A copy of the approved covenant(s) shall be
recited in an instrument executed by the applicant and the County and recorded
with the Bureau of Conveyances in conjunction with the issuance of Final
Subdivision Approval.
Response: Applicant will comply with the foregoing condition.
Condition F: Access(es) and intersection roadway improvements to the subject property from
Kamehameha III Road and Alii Highway and any improvements within
Kamehameha III Road and Alii Highway shall be constructed meeting with the
requirements and approval of the Department of Public Works. In conjunction
with Final Subdivision Approval for the corresponding phases of the development
within the subject property, the applicant shalt complete the following roadway
improvements, when warranted by traffic studies conducted in coordination with
the Department of Public Works.
(I) Traffic signalization improvements shall be installed for the intersection
of Kamehameha III Road and Keali'i Street.
(2) Left turn lanes shall be constructed within Kamehameha III Road at
M:mka Access Roads I and [I into the subject property.
Response: Applicant will comply with the foregoing condition.
Condition G: Upon the determination of the required right-of-way for the Alii Highway project
and the completion of the right-of-way subdivision(s) for such roadway portion,
the applicant shall dedicate such right-of--way portion in fee simple to the County
Christopher J. Yuen
July 30, 2003
Page 4
upon its request The applicant shall make its fair share contribution for the
proposed Alii Highway project.
Response: Applicant will comply with the foregoing condition.
Condition H: Roadway connection(s) to the adjoining parcel of the subject property's northern
boundary ,hall be provided, if such subdivision roads are dedicated to the County,
in a manner as required by the Planning Department in consultation with the
Department of Public Works, and shall be delineated on the final subdivision plat
map for the subject property.
ResRonse: Applicant will comply with the foregoing condition, if the subdivision roads are
dedicated to the County.
Condition 1: All roadways within the proposed subdivision shall he constructed in a manner as
required by the Planning Department in consultation with the Department of
Public Works.
Response: Applicant will comply with the foregoing condition.
Condition J: A drainage study ofthe subject property, if required, shall be prepared For review and
approval by the Department of Public Works, prior to submittal of plans for
subdivision review. Drainage improvements, if required, shall be constructed or
bonded meeting with the approval of the Department of Public Works prior to the
issuance of Final Subdivision Approval.
Response: Applicant will comply with the foregoing condition, if required by the Department
of Public Works.
Condition K: The applicant, successors or assigns shall submit a Solid Waste Management Plan for
the development to the Department of Public Works for review and approval prior
to securing Final Subdivision Approval. A copy of the approved Plan shall be
submitted to the Planning Department for its files.
Response: Applicant will comply with the foregoing condition.
Condition L: po ensure that the goals and policies of the Housing Element of the General Plan are
implemented, the applicantshall complywiththe requirementsofChapter l l,Article
1, Hawaii County Code, relating to Affordable Housing.
Christopher J. Yuen
July 30, 2003
Page 5
Response: On October 24, 2000, Applicant entered into an Agreement with the County of
Hawaii in which the Applicant will pay to the County of Hawaii, a total in-lieu
affordable housing fee for the proposed 976 units in the amount of $462,560.00. The
Agreement was recorded in the Bureau of Conveyances of the State of Flawaii on
December 1, 2000 as Document No. 2000-169042. See, Exhibit 2 attached to the
2001 anmral repor/.
Condition M: An Archaeological Data Recovery Plan and Preservation Plan shall be submitted for
the review and approval by the Planning Director in consultation with the
Department ofLand and Natural Resources-Historic Preservation Division (DLNR-
HPD) and a cultural advisory committee composed of members of the community,
including but not limited to representatives from the Kona Hawaiian Civic Club, Na
`OpioOKahalu'uandtheOfficeofHawaiianAffairs. Proposed mitigation treatment
(preservation in place or disinterment/reinterment) for burial sites within the subject
property shall he approved by the Historic Preservation Division's Hawaii Island
Burial Council before detailed mitigation plans are finalized for Chese sites. A copy
ofthe approved Final Archaeological Data Recovery Plan and Preservation Plan shall
he submitted to the Planning Director for its files prior to submitting plans for
subdivision review and prior to any approval for any land alteration permits. An
interpretation/mitigation plan which shall include buffer zones, signage and long-
rangepreservation concerns shall be submitted to the Planning Director prior to Final
Subdivision Approval.
Response: Applicant will comply with the foregoing condition.
Condition N: Should any unidentified sites or remains such as artifacts, bone or charcoal deposits,
human burials, rock or coral alignments, pavings or walls, terraces, platforms, or
marine shell concentrations be encountered, work in the immediate area shall cease
and the Department of Land and Natural Resources-Iistoric Preservation Division
(DLNR-HPD) shall be immediately notified. Subsequent work shall proceed upon
an archaeological clearance from the DLNR-HPD when sufficient mitigative
measures have been taken.
Response: Applicant will comply with the foregoing condition.
Condition O: The applicant shall make its fair share contribution to mitigate potential regional
impacts of the subject project with respect to roads, parks and recreation, fire, police
and solid waste disposal facilities. The amount ofthe fair share contribution shall be
the sum which is the product of multiplying the number of residential lots proposed
to be subdivided by the amounts allocated hereinbelow for each such lot, and shall
Christopher J. Yuen
July 30, 2003
Page 6
become due and payable prior to fnal subdivision approval for any portion of the
subject property a' its increments. If the subject property is subdivided in two or
more increments, the amount of the fair share contribution due and payable prior to
final subdivision approval of each increment shall be a sum calculated in the same
manner according to the number ofproposed residential lots in each such increment.
The fair share contribution, in a form of cash, land, facilities or any combination
thereof acceptable to the Director in consultation with the affected agencies, shall be
determined by the County Council The fair share contribution shall have a
maximum combined value of $4,645.29 per multiple-family residential unit and
$7,239.16 per single-family residential unit. Based upon the applicant's
representation of intent to develop up to 976 residential units, the indicated total of
fair share contribution is $3,590,809.17 for multiple-family residential units and
$1,469,549.48 for single-family residential units, whichever is applicable. However,
the total amount shall be increased or reduced in proportion with the actual number
of units according to the calculation and payment provisions set forth in this
Condition C. The fair share contribution shall be allocated as follows:
1. $2,291.39 per multiple-family residential unit for an indicated total of
1,771,224.47 and $3,490.85 per single-family residential unit for an indicated
total of $708,642.55 to the County to support park and recreational
improvements and facilities within the Kahalu'u-Keauhou districts to
include, without limitation, improvements to Kahalu'u Beach Park;
2. $72.42 per multiple-family residential unit for an indicated total of
$55,980.66 and $168.40 per single-family residential unit for an indicated
total of $34,(85.20 to the County to support police facilities;
3. $222.77 per multiple-family residential unit for an indicated total of
$172,201.21 and $332.61 per single-family residential unit for an indicated
total of $67,519.83 to the County to support fire facilities;
4. $99.29 per multiple-family residential unit for an indicated total of
$76,751.17 and $145.62 per single-family residential unit for an indicated
total of $29,560.86 to the County to support solid waste facilities; and
5. $1,'59.42 par multiple-family residential unit for an indicated total of
$1,514,631.66 and $3,101.68 per single-family residential unit for an
indicatcd total of $629,641.04 to the State or County to support road and
traffic improvements.
'the fair share contributions described above shall be adjusted annually beginning
three years after the effective date of the change of zone, based on the percentage
Christopher J. Yuen
July 30, 2003
Page 7
change in the Honolulu Consumer Price Index (HOPI). Any fair share contributions
paid by the applicant shall be expended within the region impacted by the proposed
development, subject to the approval of the Director.
In lieu of paying the fair share contribution, the applicant may construct and
contribute improvements/facilities related to parks and recreation, fire, police, solid
waste disposal facilities, and roads within the region impacted by the proposed
development, subject to the approval of the Director. The cost of providing and
constructing the improvements required in Conditions F and G shall be credited
against the sum specified in Condition O(5) for road and traffic improvements. For
purposes of administering Condition O, the fair market value of land contributed or
the cost of any improvements required or made in lieu of the fair share contribution
shall be subject to review and approval of the Director, upon consultation with the
appropriate agencies.
Upon approval ofthe fair share contributions or in lieu contributions by the Director,
the Director shall submit a final report to the Council for its information that
identifies the specific approved fair share and/or in lieu contributions, as allocated,
and further implementation requirements.
Response: Applicant will comply with the foregoing condition.
Condition P: Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for
the imposition of exactions or the assessment of impact fees, conditions included
herein shill be credited towards the requirements of the Unified Impact Fees
Ordinance.
Response: Applicant will comply with the foregoing condition.
Condition O: In lieu of actual construction of infrastructural improvements as conditioned above,
the applicant may enter into an agreement with the Planning Director and the
Department of Public Works and the Department of Water Supply, if applicable, to
assure the County that the infrastructural improvements will be constructed together
with the appropriate bond, surety or other security deemed acceptable to the Planning
Director and the Corporation Counsel. Upon execution of such agreement and/or
filing of the security with the County, if applicable, Final Subdivision Approval for
the subject property or portions thereof may be granted prior to the actual
construction of required infrastructural improvements unless otherwise restricted
herein.
Response: Applicant will comply with the foregoing condition.
Christopher J. Yuen
July 30, 2003
Page R
Condition R: The applicant shall comply with all applicable Taws, rules, regulations and
requirements of affected agencies for approval of the proposed development within
the subject property, including the Department of Health.
Response: ApplicanC will comply with the foregoing condition.
Condition S: An annual progress report shall be submitted to the Planning Director prior to the
anniversary date of the approval of the ordinance. 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.
Response: [n compliance with the foregoingcondition,Applicantsubmitshereinits2002annual
progress report to the Planning Director.
Condition T: An initial extension of time for the performance of conditions within the ordinance
may be granted by the Planning Director upon the following circumstances:
1. The non-performance is the result of conditions that could not have been
foreseen orare beyond the control ofthe applicants, its successors orassigns,
and that are not the result of their fault or negligence.
2. Granting of the time extension would not be contrary to the General Plan or
Zoning Code.
3. Granting of the time extension would not be contrary to the original reasons
for the granting of the change of zone.
A. The time extension granted shall be for a period not to exceed the period
originally granted for performance (i.e., a condition to be performed within
one year ma,y be extended for up to one additional year).
Response: Applicant will comply with the foregoing condition, should a time extension be
required for compliance with any of the conditions of rezoning set forth herein.
Condition U: Should any of the conditions not be met or substantially complied with in a timely
fashion, the Director may initiate rezoning of the subject area to its original or more
appropriate designation.
Christopher ,i. Yuen
July 30, 2003
Page 9
Response: Applicant acknowledges the foregoing condition.
Thank you for the opportunity to present this 2002 - 2003 annual report on behalf of
applicant Kamehameha Investment Corporation. Please feel free to contact me at 935-6644, should
you have any questions concerning the foregoing discussion.
Very truly yours,
CARLSMITH BALL LLP
S"1'EVEN S.C LI
SSL:np
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Attaclunent
xc: Louis Kau
Joe Spencer
John Rocha
PBR Hawaii