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Home My WebLink AboutCOM 0466.001 2002-2004/r -001.2]11] PNBuc HOUSING I�ALAKEME—� SiPEET HOUSE LGTS: I ARCH. PAPX I KNMOUNO KEAINCEHE HOUSE LOTS II ' COVO}Y COUIICfI /7 FUTURF. DHIVL HOUSING VILLAGE 1 •/ THE VILLAGES Of LATOPUA VILLAGE 2 HI HI VILLAGE 13 ` PROPERTY PRE.. BOUNDARY ♦ - LUGS ' VILLAGE 4 VILLAGE PKac SEM N. (DHHL) IPAa SCHOOL 40' VILLAGE 7—, ��'�. I 'JiLLACE 12 VILLAGE 5 % \VILLAGE 6 HE ANE KEOHOKALOL 4 HIGH SCHOOL p{FyE� � • `IA0 OWAV E i AUPAKA } REAN�EHV J0.iJE �� P�SERVE `� VILLAGE ii i ) VILLAGE 10 STBEFf / "Eyr'• n'` 3 VILLAGE \ 0 900 1800 NORTH SCALE IN FEET `-- Pp1OWlV 9 UUUOKALANI TRUSr ESTATE LANG BCUNDARY LcCEND TOTAL PROPERTY f INDIVIDUAL -7 VIL LAC, E/PROJECT �f. PROJECT STATUS v.Itagas of La'i'opua JAN 1998 Comm. NO. 4 (o' Ref. To: Ref. Date Ud ! i � i fpe�aiak-6he Ahupua a r 2020 Ahupua a a - Land division f -bm the mountain to tie sea p! 1 .I a - w There is.a path from the mountain top to i the bottom of the ocean. 1 It is both an old path and a new path. It is a cluttered path. i There is a Dream that the f path need not be cluttered; that it can. be clean -for people and their friends to pass in Peace and in Joy. E. E. Laver i i- Kealakehe Ahupua'a 2020.is a non- profit cornniunity development cor- poration, recognized under- IRC sec;' 1 tions 501 c-3 and a.509. t l . , a We invite you to share our,' i { dreams. Cower photos from: Plants for Tropical; Landscapes - A Gardner's Guide ! e j Art Credit: Kametutmelia Schools, Bishop Estate Ke.alakehe Ahupua'a 2020 P.O. Box 4698 Kailua Kona, HI 96750 Phone: 808-328-0343 Fax: 808-328-7372 Email: bigdsblues@hawaii.rr.com 0 KUKUI ; "Lighting. the Way" N Q { Qr HAM i i "Transitional: aTemporal, Physical, ' ; and Spiritual" I Q NONIUj i "Preserver of All Things" W' i 9 J F ULU a"Enlightenment of Knowledge, Life and W \� Death" i Island of Hawaol 1 Mission Statement Keala he Ah a'a The K{ill,eirF<itc>crfrci.z,raity is lcr cared in Nort.h Kerma, a4d rontaios Hawaiian home.,.,readem, public housing, a closed landfill, a waste- water treatment plant, and several schools. Kealakehe Ahupua'a 2020 recognizes that collaboration r( - quires and comrnitrxtF o . The, K� 4.ak<>.he Community is ready to sit together and look at the opportunities ahead of us. Kealakehe Ahugja'a 2020 Wastewater Treatment Plant Wai Lepo, Dirty Water Goals ` ' Increase water quality from R2 to R1 Distribution system to "green" Develop a rnrrcmir zity fSaF d sustaimAte action plan Kealakehe. that addwssei the:r e>.d and concerns. of the cc ni- munity lands of KealTa cehe. • Develop a Botanical Gardens Initiate to d<1v+;lop and'ihi- • Use R2 waters for Muni6 pal/Youth Golf Course element action plans for community developinent projects. • Conservation learning center Aquaculture facilities 'Ohana Ah puna a Local Conwrvation Corps; Environmental Protection and Conservation The Corgis will provide intergeneratior►al career de- Malama i ka `A ,a velopment through: restoring and caring for the land, treys, Tants, water.• Ka Wid, Ka .Rina and all its inh,�l vi wfs, �I hip train f. qtr r7� r eletxta t *i11 be • Research archeological sites invol�rS�1 tr<.Il p�:ja ,.t. • Research biodiversity Combining( -rte :n t:ion efforts acrd • Design parks and pathways Hawaiian cultural and. traditional practices, the con- • flan reforestation and restoration cept of Ahupua'a will be a guiding principle for all of habitat activities in the corps members training. Landfill - Pu'u Opala A fountain of Rubbish "When we see land as a commu- • Eliminate threat pity to which we belong, we may • Research mining/recycling begin to use it with love and • Re -use soils for projects respect. • Sale of designer soils Aldo Leopold 1948 P.O. Box 691 i(ailua-Komi Hawai'i 96740 (808-328-0343 fax (808) 328-7372 bigdsblues@hawaii.n.wm Wastewater Treatment Plant (WWTP) Conversion Over view Kealakehe Ahupua' a 2020 is moving forward with plans to provide improvements to the life styles and life experiences in our Ahupua' a through a number of projects that meet the combined goals of providing educational and work/study opportunities for our youth and improving our local environment. One key project KA2020 is undertaking involves the conversion of the existing WWTP to a botanical garden and marsh ecosystem that will include habitat for endangered Hawaiian species of birds and rare and unusual plants. Early plans envision a botanical garden that will incorporate over 50 acres of newly created green space with habitat for plant and animal species. It will also provide research, career, educational, and employment opportunities for adults, local students and university students. KA2020 is committed to developing projects and programs that address the Kealakehe Ahupua'a community need to create after school or alternative educational/work programs for the children of the Kealakehe Ahupua' a and surrounding ahupua'as that are based on a positive life style and environmental enhancement. The marsh/habitat project will convert an unappealing sewage treatment plant into a community asset, while providing our children and students educational and career development opportunities on the creation and management of the habitat and learn about indigenous native plants and wildlife. The following is brief outline of the proposed project: General The existing STP was designed with a capacity to accommodate projected waste flows in the Kona area for the next 40 years. The capacity of the plant is 7.82 million gallons per day (mgd). The existing average daily flow is about 1.3 mgd. Original planning considerations were to create a wetlands area around the plant for growing makaloa which is somewhat effective in removing nutrient from the processed waste flow and was considered an important element for protecting groundwater and near shair0 tY tualtt +CtKrtkty#13113C [3ave included using the adjacent property for January 7, 2004 Page 2 construction of a golf course for reclamation reuse. Conversion of the WWTP to a marsh or aerated stabilization pond system would require approximately of 50 acres of land to develop a sustainable the habitat for birds and plants. Prime candidates for habitat enhancement are the Hawaiian Duck and Coot, the Golden Plover, and the Hawaiian Stilt. Stilts have laid eggs on the lagoons of the existing STP and are considered easily adaptable to the proposed habitat. Hoary bats are expected to be attracted to the insect population that will inhabit the new marsh. Water from the marsh project will also be pumped to adjacent lands for use in landscaping irrigation. Costs The following costs are preliminary budget estimates. Land Aquisition Unknown Conversion of WWTP to Marsh System $25 million Wildlife Habitat Creation $7 million Native plantings $3 million Other Costs Preliminary Feasibility Study $250,000 Design, permitting, environmental studies $3.0 million Construction Phase Services $2.0 million Schedule: Preliminary Feasibility Study 4 months Planning, Design, Environmental, Permitting 16 months Construction 24 months Plantings Unknown Funding Establishing a KA2020 Wildlife and Habitat Restoration Project should provide KA2020 the opportunity to pursue a variety of small grants from various federal agencies. It should also provide the opportunity to seek contributions and private grants from individuals, companies, and financial institutions. It is estimated that grant funds and contributions of funds and resources can be obtained to offset over 75% of the costs. In order to proceed with the project, $250,000 is needed for the feasibility study. January 7, 2004 Page 3 On October 21, 2002 KA 2020 met with County of Hawai'I Mayor Kim, and has extended his support for the KA 2020 Department of Hawaiian Home Lands bid proposal, the recycle mining of the Kealakehe dumpsite and the Kealakehe Waste Treatment Plant conversion to a wildlife and plant habitat. KA 2020 has found EPA Brownfield program, Resource Conservation and Recovery grants, which also has a revolving loan program. There are additional grants and loans available. KA 2020 is gathering all the specific data it possibility can at this point to pull the initial grant application together, but other task are required. A Me Kealoha Pumehana David R. Marquez KA 2020 Executive Director P.O. Box 691 Kailua-Kona, Hawaii 96740 (808-328-0343 fax (808) 328-7372 bidsblues@hawaii.a.com I FOR NNA Wal FA Kealakehe Landfill Reclamation Data Kealakehe Ahupua' a 2020 is moving forward with plans to provide improvements to the life styles and life experiences in our AhupuaI a through a number of projects that meet the combined goals of providing educational and work/study opportunities for our youth and improving our local environment. KA 2020 has completed initial conceptual studies on the reclamation and removal of the Kona Landfill. The recycle mining project will eliminate an existing and potential long-term environmental problem that adversely affects both the quality of life within the Kealakehe Ahupua' a and adjacent commercial property values. KA2020 has applied for a $100,000 EPA Environmental Justice Collaborative Problem Solving Grant. The status of this grant should be announced by January 2004. General The Kealakehe Landfill has been estimated to hold approximately 4 million yards of municipal waste of unknown composition. Currently there is a closure plan (completed) and a fire suppression plan (underway) that have been approved by the EPA, State of Hawaii and Hawaii County. These agencies believe that technically, the landfill is not a current problem that needs to be addressed by limited available public funds. All landfills pose a threat of long term environmental degradation through ground water leaching and toxic waste releases. The Kona Landfill potentially poses an additional environmental risk to air quality due to the existence of several active fires within the landfill. Authorities believe the current fire suppression system is successfully reducing the threat and will eventually eliminate the threat entirely. Local residents and local landowners believe the landfill is a problem that should be immediately addressed by its total removal from the area. KA2020 has taken the lead in the community interest to address the long term impacts of the landfill and have conceived a plan to convert the municipal waste to a usable soil supplement and dispose of the non -convertible waste through other means such as transport to another landfill or through salvage. A COMMUNITY PARTNERSHIP Pilot projects on the mainland have been successful in converting municipal waste to soil supplements. The main difference between the waste streams on the mainland where these projects have been successful and the waste stream at the Kona Landfill is the composition of material used as cover for the landfill. On the mainland nutrient rich soils were used while at the Kona Landfill, cinder soil was used. The significance of this variation is that in order to successfully convert municipal waste at the Kona Landfill to soil supplements, organic material (green waste) must be added to the waste stream before processing. There is believed to be a sufficient local supply of green waste to provide this ingredient. To convert the Kona Landfill to soils supplements will require access to approximately 150 acres of adjacent property for processing and storage. Cost Analysis Waste to soil conversion processes are capable of converting approximately 2/3 of the waste in municipal landfills to soil supplements. The balance of the material (approximately 1/3) is hazardous materials which receive special handling and non -convertible metals which might be salvageable if there is a market for these materials. Unit costs for processing municipal waste to soil supplements are not available for this site and preliminary estimates have ranged from $20 per yard to $70 per yard. This analysis assumes KA2020 will need to pay $25 per yard for the final processed material. Non convertible waste is assumed to be hauled to other landfill sites and disposed of for tipping fees of $50 per ton. T It is also assumed that 25% of the waste stream being processed will be new green waste delivered to the landfill. It is assumed that top soil can be trucked to Kona from other areas of the Island and purchased in Kona for $20 per yard. Due to the reduced water demand for plantings in processed soil, the retail value of processed material is assumed to be $25 per yard. Total Volume of existing Landfill: Non -process volume: Process volume New green waste Cost to process 3.4 million yards @ $25/yd Cost to dispose of 1.3 million yards @$50/ton Cost to dispose of Hazardous Materials Revenue from soils sales @$25/yd Salvage Grants (estimated) Other Costs Environmental Studies, permits, design, 4 million yards 1.3 million yards 2.7 million yards 0.7 million yards $85 million $65 million Unknown $85 million Unknown $25 million Monitoring $600,000 Site Preparation and Cleanup $3 million Hazardous Materials Cleanup Unknown Cost for Adjacent Land (150 acres) Unknown Market for Soil; The current market for the soil supplement is unknown. The conversion process will produce approximately 3.25 million yards of soil supplement. It is anticipated that golf course developments in the Kona area will provide a market for the soil. The KA2020 development adjacent to the Kona Landfill is expected to create a demand for approximately 300,000 cubic yards of soil. This leaves a balance of approximately 2.9 million yards of soil. Other local landscaping demands will provide a market for the topsoil. Regulatory Issues Any plan to open or process the landfill will require EPA, State and County approvals. In order to get these approvals some environmental studies will be required to address air pollution, noise, local safety, and traffic issues. Other studies may be required and it is possible an EIS will be required. Environmental monitoring will be required during the waste conversion process and some environmental testing will be required to verify the final soil supplement is pathogen free and suitable for use in landscaping. Schedule Assuming an EIS will not be required and the project can be permitted with minor environmental studies. If an EIS is required, add 6 months to the schedule. Production rates of 400 cubic yards per hour have been assumed, with the contractor working normal hours. Studies, Design, Contracts, Permits 6 - 9 months Grant Applications 6 - 12 months Contractor Startup (Sitework, Equipment Manufacture, etc.) 6 - 9 months Soil Conversion 3.9 years Final Site work 3 months If you have any questions regarding this data please feel free to contact me. A Me Kealoha Pumehana David `Kawika' Marquez KA 2020 Executive Director 74-5620 Muni Road, Suite 105-A Kailua-Kana, Hawai'i 96740 (808-326-2928 fax (808)334-0477 dmwquez@bessd.dhs.sude.hi.us IV 16A WMASIRAN IFA614 I■I :.l Cruiseship Impact On West Hawai l Agricultural production Overview The potential demand for local agricultural products created by the cruise ship terminal. First, the cruise ship terminal will a state of the art terminal. Since it is being designed specifically for cruise ships, it will provide facilities for simultaneously handling passengers and cargo/provisions at the same time. It is layed out to allow for loading and services the ships while passenger loading/offloading takes place. This is a component of the design that puts our cruiseship port way ahead of any other facility in Hawaii and the west coast with respect to sufficing the ships. No other terminal in Hawaii is configured to actually service the ships so loading/offloading is slow and expensive. Consequently, it reasonable to assume KA 2020 will be able to service and provision ALL the ships in Hawaii if the local agricultural community and local support services can rise to the challenge through cooperatives, etc. The following data are approximations. The data are based on provisioning two cruise ships which will take 2-3 seven day cruises a month. It is not out of the question that we could do twice as much volume as these numbers project. The onshore demand for product is probably equal to the on -ship demand since we expect to be offloading over 40,000 passengers a month by 2020. KA 2020 assumes that the limiting factor in provisioning ships will be the ability of the local agricultural community to provide the products. Therefore, assuming KA 2020 are provisioning two ships the MONTHLY product demand is approximately as follows — KA 2020 has not tried to include all products: 120,000 eggs 8,000 lbs. salt 12,8000 lbs. of carrots 56,000 lbs. of poultry A COADAW TYPARTNERSHIP February 11, 2004 Page 2 47,000 lbs. of potatoes 156,000 muffins 64,000 lbs. of beef 20,000 lbs. of butter 39,000 lbs. of bananas 34,000 lbs. of shellfish 4,000 lbs. of smoked salmon 36,000 lbs. of ice cream 16,000 lbs. of bacon 12,000 lbs. of veal 30,000 lbs. of coffee 108,000 rolls of toilet paper 48,000 boxes of tissues The onshore demand is probably equal to these numbers. Laundry services will be necessary to handle 78,000 towels and 138,00 bed sheets. Even if all the products are not produced locally (like beef), there is a huge demand for meat packers, meat, poultry, and produce packaging, trucking, etc. Market & Financial Analysis For Kealakehe Golf Center In Kailua-Kona, HI Final Report Prepared For: Kealakehe Ahupua'a 2020 P.O. Box 4698 Kailua-Kona, HI 96745 (808)328-0343 Prepared By: I^ -C C w.qD CONSULTING 1150 South U.S. Highway One Jupiter, Florida 33477 (561)744-6006 January 2004 Executive Summary The following is a summary list of significant findings made by National Golf Foundation Consulting, Inc. The supporting text and tables are found in the body and appendices of the attached report NGF Consulting has studied the golf market in the Kailua-Kona and west Hawaii County area, with special focus on the market potential of adding a new 18 -hole, regulation length public golf course to be located just east of State Road 19 (Queen Kaahumanu Highway) in Kailua-Kona. In summary, NGF Consulting believes that there is sufficient resident and visitor golf demand in this market to support another high quality daily fee golf course. Though total rounds played fell in the last two years in the wake of decreased tourism due to September 11, the SARS outbreak and slow economies on the U.S. Mainland and Japan, there are signs of recovery. Although there is a very high ratio of golf courses per household in west -central and northwest Hawaii County, there is also a very strong tourism industry that helps sustain these golf courses. The resort courses of the Kohala Coast draw 80% or more of their annual play from visitors, while non -resort daily fee facilities are more heavily reliant on residents. Although resident, or'Kama'aina', green fees are deeply discounted off of the 'open' rates in this market, favorable tee times can be difficult to come by for locals, particularly at the resort courses. NGF Consulting believes there is a real opportunity for a new, high quality daily fee golf course that actively solicits the local golfer, with special focus on discounted play for Hawaii County residents. This course should be of a quality that visiting golfers will consider it as an alternative to the pricier resort courses to the north and Kona Country Club to the south. The key NGF Consulting findings on the Kailua-Kona/West Hawaii golf market are listed below: • The primary market area is comprised of a mix of stand-alone daily fee (Big Island Country Club, Kona Country Club, and Makalei Hawaii Country Club) and resort (Mauna Lani, Waikoloa Beach, and Waikoloa Village) golf courses. Kona Country Club, with two high quality and visually stunning golf courses located seven miles south of the Kealakehe Golf Center site, is likely to be the most direct competitor to the proposed new facility, especially given its recent emphasis on drawing more local play. • The West Hawaii golf market is populated by high quality, but also high fee, public golf, highlighted by the resort courses of the Kohala Coast. Though resident rates are much lower than visitor rates at market facilities, there is still a need for a 'community' type public golf course that residents can afford to play on more than just an occasional basis. • The Kona and Kohala Coasts have the highest concentration of golf courses on the Big Island and a very high proportion of golf courses given the population. The resident population alone would not be able to support this number of courses, illustrating why visitor play is so critical to facilities in West Hawaii. • The six primary facilities average approximately 38,000 rounds per 18 holes per year, with Kona Country Club (86,000 rounds on 36 holes) and Waikoloa Beach Resort (80,000 on 36 holes in 2002) the most active. Waikoloa Village Golf Club drew 53,000 rounds in 2002 on only 18 holes. This market is characterized by two distinct seasons, with heavy activity and utilization of golf facilities from just National Golf Foundation Consulting, Inc. — Final Report — 3 after Christmas through early April, and much slower activity from mid-April through the autumn months. Annual play levels at most public access facilities in this market have declined over the last several years. The main cause has been the downturn in visitation to the state and Big Island due primarily to the September 11 tragedy, the SARS scare in the Far East, and slow economies in the U.S. and Japan. The result has been a more competitive environment in which discounting and creative marketing have become necessary and expected. The resident golfer is being pursued more actively, particularly during the slower months. All clubs have visitor and resident ('Kama'aina') green fees, with Hawaii residents receiving sharp discounts off of the visitor rates. Though residents can play some top flight golf courses for relatively cheap green fees, tee -time policies at the resort courses favor guests, and it can be difficult at times for locals to play when they want to. DEMOGRAPHICS AND THE LOCAL ECONOMY The following points highlight the results of our findings regarding the local and regional demographics and economic trends: • The population in the defined 25 -mile primary market area surrounding the Kealakehe Golf Center site is of modest size but grew at more than twice the rate of the United States as a whole between 1990 and 2000. Between 2002 and 2007, the average annual population growth rate in the primary market is expected to be twice the national rate. Hawaii County, home to roughly 154,000 people in 2002, has grown at a much faster pace than the rest of the state in recent years. North Kona, North and South Kohala, Puna, and Kau have experienced the most rapid growth during this time. • The resident population of the primary market area is relatively older and enjoys higher incomes than the U.S. overall. Both of these demographic profiles are consistent with higher golf participation and greater frequency of play. • Tourism drives the economy in the State of Hawaii. After a severe downturn in this important industry due to the events of September 11, the SARS outbreak, and stagnant economies on the U.S. Mainland and in Japan, visitor arrivals and expenditures, as well as hotel occupancy rates, began to recover in 2002; the forecast is for strong growth in these categories through 2005. • There were 1,298,943 visitors to the Big Island in 2002, after a significant decline in 2001, visitation had nearly recovered to year 2000 levels. The Kona area had 756,541 domestic visitors and 277,073 international visitors in 2002. The average length of stay for visitors to the Kona area was 6.21 days. • Cruise ship visitation is up dramatically on the Big Island in 2002 and 2003, and visitor spending by cruise passengers is expected to soar over the next several years. However, harbor facilities on the island are likely to be inadequate to accommodate the added cruise ship traffic. • Driven by low interest rates, Hawaii County construction permit values (especially for residential construction) have risen dramatically in recent years. This trend is especially prevalent in West Hawaii, driven by the construction of multi-million dollar home along the Kona and Kohala Coasts. National Golf Foundation Consulting, Inc. — Final Report — 4 GOLF DEMAND ESTIMATION NGF Consulting has identified a market of area residents and visitors who can be expected to utilize the proposed Kealakehe Golf Center when it is developed. The key NGF Consulting findings regarding market golf demand are listed below: • The golf participation rates in the 25 -mile and 30 -mile rings surrounding the Kealakehe Golf Center site are moderately higher than the national benchmark rate. Participation rates in Hawaii County as a whole are about 8% higher than the national average. • Golf rounds demanded per household are 16% higher than the national index in the local market areas, just below the national benchmark on the Island of Hawaii as a whole. As would be expected, golf participation rates and rounds demanded are greatest in the more highly populated tourist areas along the Kona and Kohala Coasts, and in the greater Hilo area. • Utilizing golf demand estimation models, NGF Consulting has estimated that there are approximately 4,071 golfers living in the proposed Kealakehe Golf Center's primary market area, defined as a 25 -mile ring centering on the State Road 19 site. It is estimated that these golfers demanded up to 81,420 total rounds of golf in 2002 (287,120 for the entire Big Island). • In addition, the regional tourist market is very significant, and the NGF Tourist Golf Participation Model indicates that visitors to the Kona area had the potential to demand an additional 478,845 golf rounds in 2002. MARKET OPPORTUNITY ANALYSIS NGF Consulting has observed a market opportunity for a high-quality, affordable regulation - length 18 -hole public golf facility in Kailua-Kona to serve area residents and visitors, as well as residents of other areas of Hawaii County. NGF Demand Model estimates, activity levels observed at area golf courses, and the lack of a truly affordable 'community' public golf course in West Hawaii support this conclusion. This type of facility would have a nice market niche, positioned between the current supply of high priced resort courses along the Kohala Coast, and the more locals -friendly, but out-of-the- way courses north and northeast of Kailua. Below are some specific conclusions regarding potential pricing at Kealakehe Golf Center: • Published green fees are year-round, seven-day rates, but will be adjusted as needed according to seasonal activity, as is the norm in this market. • The peak non -Hawaii resident green fee (carts will be included in all green fees) should be in the range of ±$100. Non-resident off-peak (i.e., twilight, summer specials) rates are expected to be roughly $60, as are peak State of Hawaii (but non -County) resident green fees, and other special fees, such as tournaments/outings, and timeshare company promotions. • The open Hawaii County resident green fee should be in the neighborhood of ±$25. National Golf Foundation Consulting, Inc. — Final Report — 5 Other discount fees will range from $20 to $30, and will include state resident twilight, nine -hole, senior, and junior fees, as well as other advertised specials as needed. ROUNDS PROJECTION NGF Consulting has estimated a schedule of rounds for the proposed Kealakehe Golf Center assuming the development of a high quality 18 -hole public golf course. The course must be operated and maintained at or above the standards established at the better public golf courses in the market region in order to create the appropriate price/value relationship that is needed for the new club to be competitive. The schedule also assumes the green fee schedule detailed in this report. These estimates take into account the observed activity levels at similar courses in the region that have been profiled in this study effort. The results are presented as total rounds played, which are not necessarily peak -morning, 18 - hole equivalent rounds. Data from this market suggests that distribution between prime -time, off -prime, resident, visitor, and twilight/discount will likely be present at the new facility. NGF Consulting has estimated that 32, 000 rounds could be achieved on the 18 -hole layout in the first full year of operation, growing to 48, 000 rounds by the fifth year of operation. KA 2020 should not expect to reach this level in the first year of operation, nor should it be expected that the majority of play would be for the highest green fee. One of the factors that will determine where the new club falls within this range is whether it restricts those rounds available at the lowest green fees (Hawaii County residents). FINANCIAL OVERVIEW The results of NGF Consulting's preliminary cash flow projection show that the Kealakehe Golf Center can expect to generate approximately $1.64 million in net operating revenues in the first full year of operation, growing to approximately $3.07 million by the fifth year of operation. Considering all preliminary expense estimates prepared by NGF Consulting for this study, operating losses of approximately ($252,300) and ($50,700) will be incurred in years 1 and 2, respectively, while total annual operations profit available for capital investment reduction will be about $403,100 in year three (permanent clubhouse opens), growing to $726,100 by the fifth year of operation. SUMMARY CONCLUSION In summary, NGF Consulting believes that there is sufficient resident and visitor golf demand in this market to support another high quality daily fee golf course, particularly at the lower -to - middle end of the fee scale. Though total market rounds played has declined recently in the wake of decreased tourism due to September 11, the SARS outbreak and slow economies on the U.S. Mainland and Japan, there are signs of recovery. The West Hawaii golf market is populated by high quality, but also high fee, public golf, highlighted by the resort courses of the Kohala Coast. There is a high ratio of golf courses per capita in West Hawaii, but price points are very high at most facilities, putting them out of reach to many people, especially residents. Many of those that do play the high-end courses can do so only occasionally. There is also the issue of tee -time availability at the reduced 'Kama'aina' or resident rates, as many locals are at a disadvantage regarding tee time policies, compared to resort guests. National Golf Foundation Consulting, Inc. — Final Report — 6 Thus, NGF Consulting has observed a market opportunity for a high-quality, affordable regulation -length 18 -hole public golf facility in Kailua-Kona to serve area residents and visitors, as well as residents of other areas of Hawaii County. Kealakehe G.C. must be of a quality and type that visiting golfers will consider it as an alternative to the pricier resort courses to the north, and Kona Country Club to the south. (A 'classic' design would provide golfers an alternative to the numerous resort -style layouts predominant in the market). The new facility must actively solicit the local golfer, with special focus on discounted play for Hawaii County residents. Kealakehe Golf Center, as proposed, would enjoy a nice market niche, positioned between the current supply of high priced resort courses along the Kohala Coast, and the more locals - friendly, but out-of-the-way courses to the north and northeast of Kailua. Kona Country Club, with two high quality and visually stunning golf courses located seven miles south of the KA 2020 site, is likely to be the most direct competitor to the proposed new facility, especially given its recent emphasis on drawing more local play. An active training component that functions as a community service (for nominal fees), but also cultivates new players for the present and future, is essential to building community support of the Kealakehe Golf Center, and may draw the interest of the U.S.G.A. One of KA 2020's primary goals in building the new golf course is to create an opportunity to train and utilize as many native people as possible for this 'community' golf course, specifically in the area of vocational training and curriculum that will focus on such aspects as development, administration, and maintenance of the new course. These training opportunities will be offered to the Kealakehe Ahupua'a Community youth, adults and Kapuna, in partnership with the educational schools within the Kealakehe Ahupua'a Community. NGF Consulting fully expects that a well-designed facility with good management, expert maintenance, appropriate target marketing and good customer service should be able to achieve the market projections made in this study. With aggressive marketing, a strong training component that cultivates new players, and continued growth in the resident and visitor populations, Kealakehe Golf Center could outperform the market projections made by NGF Consulting. While it is imperative that Kealakehe Golf Center come to the market with a top quality, aesthetically pleasing golf course that will draw new golfers and capture market share from competitors, it is equally important that the cost to construct the new facility does not create too heavy a debt load and, in so doing, force the fee structure of the club. National Golf Foundation Consulting, Inc. — Final Report — 7 11; f --% MSpirit _11 • • 4 KA2020: Mission The mission of KA 2020 is the creation and enhancement of a broad-based collaborative partnership among youth, adults, and elders to build knowledge and create linkages to allow this growing Ahupua'a to develop in education, commerce, and health as we approach the year 2020. Concept Space to Grow, Place to Learn • Foster interaction between nature and community • Use of the Ahupua'a system to invigorate Hawai'ian pride and culture • Provide skill and employment training for locals • Local Conservation Corps • Stimulate local economy and therefore quality of life • Landfill, Municipal/Junior Golf, Botanical Garden, Marina, Lagoon, Pedestrian Mall, Infrastructure Spectm,- Nature Preserve Sustain i NATURE rw Spirit Art CULTURE recreation mi ration uniy AHUPUA'A Itz a Foundation: The Ahuaua'a AINA The foundation of respect for cultural and physical properties of this site utilizing the ecology of the Ahupua'a and insuring the vitality of the diverse neighborhood COMMUNITY Development based on community consensus that honors Hawai'ian cultural practices, creating an environment for Hawai'ian culture and education COMMERCE Foster economic vitality through diverse yet synergistic land and resource use NATURE Embody the spirit and lifestyle of the Ahupua'a with respect for natural resources and wildlife Development Guidelines • Employ sustainable practices throughout the development • Develop projects that promote innovative uses of deep ocean resources • Establish a partnership relationships with local, county, state, national organizations both public and private Key Design Features Sustainable design and building practices: • Reduce site disturbance Innovative waste water technologies • Reuse of resources • Optimize energy performance with renewable energy sources Promote alternative modes of transportation • Landscape and exterior design to reduce island heat • Water -efficient landscaping Reduction of light pollution Development Guidelines Employ sustainable practices throughout the development Develop projects that promote innovative uses of deep ocean resources Establish a partnership relationships with local, county, state, national organizations both public and private Key Projects • Vocational Training and Education theme • Anew cultural village • Creation of a botanical garden from the water treatment plant • Reclaiming dormant Landfill �5'{` Office space for health and community services • Retail / commercial center • Expansion of the Honokohau Marina • Municipal/Junior Golf Facility • Cruise Ship Lagoon with visitor center and creation of a lava rock berm _ • fo Proposed Land Use Plan ` JUNIOR GOLF FAC f NORTH RESOURCE NATUR CULTURE J VILLAG COMMERCIAL E VISIT LIVE PERFO ANCE WORK C ER `- LAVA ROCK BER CANOE FISHING LANDING LAGOON _ ft % 44 f ` JUNIOR GOLF FAC f NORTH RESOURCE NATUR CULTURE Proposed Land Use Plan • 1� u TM SMALL BOAT HAR1�OR VICES IVE ORK COMMERCIAL (RETAIL ,FORMANCE CENTER D1101 Ir DEEP DRAFT I PORT 'LAVA ROCK BERM �'- - CANOE LANDING FISHING LAGOON . 1 ;RESOUR,C NATURE CULTURE O -J 1mr- LIGHT INDUSTRIAL VOCATIONAL TRAINING CAMPUS JUNIOR GOLF FACILITY BOTANICAL PONDS NORTH 'NATURE PRESERVE WASTE WATER TREATMENT Aerial Perspective • • Respect' a 6�'OWQ� RESOURCE CULTURE Views & Sections VIEW OF AHUPUA'A FROM SEA DOCKED CRUISE SHIPS Z, qh. �.�. .. > REUSE OF EXCAVATED MATERIAL AERIAL PERSPECTIVE i j a j J SECTION AT DEEP DRAFT PORT • Man and Land RC',I)�2rt 11 SLISWin Spirit. The truth is, there is man and there is environment. One does not supercede the other. The breath in man is the breath of Papa. Man is merely the caretaker of the land that maintains his life and nourishes his soul. Therefore, the 'aina is sacred. The church of life is not in a building, it is the open sky, the surrounding ocean, the beautiful soil ...." George Helm, January 1977