HomeMy WebLinkAboutRES 269 Draft 01 2002-2004 ~4Y Os
cf~`' 4~g
COUNTY OF ~AWAI`I ~ STATE OF I~AWAI`I
a M:
~~~~0#
N~`~'
I~SOI.~UTIOI®11®TO.~~~
A RESOLUTION REQUESTING TIIE SUPRElVIE COURT OF TIIE STATE OF
IIAWAI`I TO RENDER AN EXPEDITED DECISION IN TIEIE APPEAL OF CIVIL
CASE NO.00-1-fl192I~, WALTER J®IINKELLYET. AL. YS. 1250 ®CEANSII,E
1'AIZ7`NERS ET : AL.
WIIEREAS, the Council of the County of Hawaii is an elected, policy-making legislative
body and bears considerable responsibility for planning and land use decisions in the County of
Hawaii, as well as the lawful integrity of those decisions; and,
W>EIEREAS, the timely and just resolution of disputes pursuant to land use approvals and
permits granted by the Hawaii County Council and/or county planning officials is a matter of great
and enduring concern to the Council; and
WIEIEREAS, the Council has followed with keen interest the litigation in the case of Falter
John Ifeldy e~ a~ vs. 1250 ®ceanside Part~aers e~ al., Civil No. 00-1-0192K (the "Lavvvsuit"), filed
in the Circuit Court of the Third Circuit of the State of Hawaii, to include the Third Circuit Court's
decision contained in the "Third Amended Final Judgment" rendered on August 27, 2004 (the
"Judgment") and various orders issued by the judge, the Honorable Ronald Ibarra, including the
land use entitlement rulings set forth in the Court's Amended Findings of Fact; Conclusions of Law;
Order reygarding Trial on Count N of the Fifth Amended Complaint dated October 22, 2003 (the
GGLand OJS~ Or~~r"); and
WgIEIgEAS, resolution of the issues surrounding the Hokuli`a project in South Kona and the
1998 development agreement executed between the project developer, Oceanside 1250 Partners, and
the County of Hawaii, are a matter of grave and far-reaching concern to this Council, successive
Councils, and the citizens of the County of Hawaii; and
WIIEREAS, the Hawaii County Council does not presume to speak with authority on
matters pertaining to the Lawsuit, but does wish, in the spirit of plain and genial communication, to
express four basic concerns as they relate to our request for the Lawsuit, on appeal, to be heard by the
Supreme Court on an expedited basis. These concerns are as follows:
1. C®unty ®ffflcials require acti®nable clarity in statutes relating to land use and the
financing ®f public infrastructure.
Local legislators in Hawaii, as throughout the nation, are challenged to welcome and
accommodate new tides of human settlement and population growth. We also are
summoned to protect our lands and honor our host culture. To embrace these
challenges, we cannot resent the inevitability of the future. Nor can we obstruct it in
dogmatic fashion. We must strike a vibrant and generous balance.
To do so, we must cazefully evaluate various permitting, zoning and re-zoning
requests for new developments and, in lieu of historically declining federal and state
revenue sharing, assess legitimate and proportional costs to developers to pay for
needed public infrastructure and to mitigate the impacts of new growth and
population.
One of the tools available to county government to responsibly effect and oversee
planned development is the authority granted by Chapter 46, part VII, Hawaii
Revised Statutes (HRS) and Chapter 30, Hawaii County Code ("Development
Agreement Code") for the County to enter into development agreements to assure
that particular projects may proceed in accordance with applicable state statutes and
county ordinances and to enable the County to contract with developer(s) to ensure
commitments for on-site and offsite development requirements necessary to preserve
the public health, safety and welfare.
The development agreement struck between the County and Oceanside 1250 Partners
in April 1998 represented the inaugural implementation of this planning and
infrastructure financing tool in Hawaii County. It was the culmination of many
dozens of noticed public hearings and meetings over the span of seven years.
The resulting agreement reflected much down-sizing of the original project proposal
and provided public benefits and infrastructure including:
(1) Construction by the developer of a bypass highway (the "Mamalahoa Bypass")
from Keauhou to Napo`opo`o at a cost estimated to approach $50 million. This
bypass highway was identified in the Hawaii County General Plan adopted in
1989 and has been described as "the only project that can significantly relieve the
Honalo-Captain Cook bottleneck." Nonetheless, the road - 60% completed at the
time of Judge Ronald Ibarra's injunction order in September 2003 -remains
hostage to the impasse of the Lawsuit. Its court-ordered delay prolongs traffic
circulation woes in South Kona.
(2) Provision of a 140-acre shoreline parcel as a public park, for which the estimated
land value, including improvements, is $16 million. The residents of Hokuli`a are
obligated to maintain the shoreline pazk for public use in perpetuity.
(3) Establishment of an employee housing program; and
(4) Dedication of additional acreage for the Kona Scenic Pazk.
Pursuant to the Development Agreement and various permits and approvals granted
by Hawaii County, Oceanside 1250 Partners proceeded at considerable cost to fulfill
its obligations to provide and construct the public improvements sought by the
County. Such explicit actions were undertaken in reliance upon the Development
Agreement that the project's entitlements were secure. The present injunctions now
harm the County and its citizens. In turn, the County must ask the Court to consider
the consequences of such intervention against an agreement reached exhaustively and
in good faith.
2. Development approvals and timelines require genuine conclusiveness, not
havoc, uncertainty and liability.
Hawai`i's development agreements statute was enacted subsequent to the Hawaii
Supreme Court decision in the Nukoli`i case (County of Kauai v. Pacific Standard
Life Insurance Co. where the Court held that development rights did not "vest" until
final discretionary permits were issued. Based upon this decision and the
legislature's adoption in 1985 of Chapter 46, Part VII, HRS, the counties were
afforded a tool to "encourage the vesting of property rights."
Specifically, §46-121, HRS, states: "The purpose of this part is to provide a means
by which an individual maybe assured at a specifc point in time that having met or
having agreed to meet all of the terms and conditions of the development agreement,
the individual 's rights to develop a property in a certain manner shall be vested. "
In the case of the Hokuli`a project, some $350 million of investment and construction
activity occurred after Oceanside 1250 Partners and the County of Hawaii signed
and executed the 1998 Development Agreement. Sales of lots commenced;
reportedly, 190 lots were sold by the time the September 2003 injunction was
imposed. Building permits had been issued to some lot owners; still other lot owners
had retained architects. All this activity was predicated on the reasonable belief that
all necessary approvals were valid and conclusive.
Now, in the wake of the Third Circuit Court's decision and the failed mediation
facilitated by retired judge Patrick Yim, the County of Hawaii finds itself subject to
potential lawsuits from Hokuli`a lot owners. This is an unenviable and untenable
position for a political subdivision of the state to find itself.
The British statesman Edmund Burke (1729-1797) suggested that "nothing turns out
to be so oppressive and unjust as a feeble government." We fear that without
affirmation of a standard of conclusiveness, Hawaii County, along with our neighbor
counties, maybe so enfeebled by the Third Circuit Court's decision that our ability to
grant and uphold necessary planning approvals and negotiate agreements with
developers may rightly be deemed hapless and suspect.
3. The definition and future of agriculture in Hawaii should not proceed from
judicial social engineering.
We are concerned and troubled by the regulatory requirements contained in the Land
Use Order relating to prohibition of "luxury" homes in the Agricultural District and
the requirement that homeowners in agricultural subdivisions present a "viable"
agricultural plan, not otherwise set forth in any state statute, rule or regulation.
We believe these requirements usurp the statutory powers of the state legislature and
the county councils. On this matter, we believe that the Supreme Court's ruling in
the case of Save Sunset Beach Coalition et al. vs. the Ciry and County of Honolulu, et
al. is on point. That mling upheld the legislative authority of the Honolulu City
Council to rezone and affirmed that the State Legislature must establish standards and
criteria in order for the agricultural mandate of the State Constitution to be
implemented. The Court held that Honolulu's rezoning "was a legislative act and
thus is accorded deference on judicial appeal. " The Court further stated that Article
XI, section 3 of the Hawaii State Constitution "is not self-executing" and requires
the Legislature to provide statutory guidance for its implementation.
In lieu of the Legislature's failure for over a quarter century to adopt a statute
implementing such standards and criteria for important agriculture lands, we believe
that the reasonable discretion of the counties to evaluate and approve agricultural
subdivisions must be honored.
Therein lies the crux of the predicament posed by the Third Circuit Court's land use
order. Many tens of thousands of citizens within the Agricultural District now live on
properties where little or no farm activity is conducted or farm-related income
generated - in Hawaii County and throughout the State of Hawaii. We see no
public purpose served by subjecting our residents to the anxiety and unfair exercise of
meeting a retroactive court-imposed standard of agricultural "validity."
Moreover, we note that in June 2001 the state Land Use Commission rejected rules
proposed by the Siena Club to require a proposed subdivision to "prove" it is tmly
agricultural if it contained houses adjacent to golf course fairways, resort-like
features, prices exceeding the median price of houses in the state, or dwellings larger
than 3,500 square feet.
By the assessment of the Hawaii County planning director and the State Department
of Agriculture, the full complement of agricultural activity at Hokuli`a, as proposed
by the developer, greatly exceeds the property's former productivity as marginal,
seasonal grazing land.
Finally, we notice with some irony that the Third Circuit Court directive to obtain
state Land Use Commission reclassification to the Urban District can only serve to
reduce the agricultural component that Hokuli`a now so willingly affords.
4. There comes a time when arguments must yield to reason and good-natured
resolution.
The prolonged litigation related to Hokuli`a wanants a prompt and conclusive finding
by the Hawaii Supreme Court. We need a just, civil conclusion to this azduous,
costly Lawsuit and the arguments sunounding it. •We owe that conclusion to the
people of our island and our state. The public interest compels it. An abiding spirit of
aloha yearns for it.
Despite much inflamed rhetoric and wounded feelings in our community, we see no
villains in this case. On the one hand, we see inspired champions of native Hawaiian
rights and probity in land use. On the other hand, we see an earnest developer
demonstrably and graciously seeking to do what's best. All parties to this case, and
the County of Hawaii, deserve an outcome to this dispute that is clear and
conclusive.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that the Council respectfully requests the Supreme Court of the State of Hawaii to take
up the appeal filed in the civil case of Walter John Kelly eG aL vs. 1250 Oceanside Partners eG al.,
(Civil No. 00-1-0192K) on an expedited basis and render a timely decision in the public interest.
BE IT FURTHER RESOLVED that the Clerk of the Council of the County of Hawaii is
instructed to distribute copies of this resolution to the Honorable Ronald T. Y. Moon, Chief Justice,
Supreme Court of the State of Hawaii; the Honorable Ronald Ibarra, Third Circuit Court; Mayor
Harry Kim; Lincoln Ashida, Corporation Counsel; Christopher Yuen, Planning Director; Bruce
McClure, Chief Engineer, Department of Public Works; Walter John Kelly; Protect Keopuka
`Ghana; 1250 Oceanside Partners; Chiyome L. Fukino, M.D., Director, Department of Health; and
Peter T. Young Director, Department of Land and Natural Resources.
Dated at , Hawaii, this day of , 2004.
Introduced by:
O CIL M E COUNTY OF HA A' I
LE/rf
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii AYES NOES ABS Ex
Hilo, Hawaii ARAKAKI
CHUNG
I hereby certify that the foregoing RESOLUTION was by ELARIONOFF
the vote indicated to the right hereof adopted by the COUNCIL of the HOLSCHUH
County of Hawaii on JACOBSON
REYNOLDS
ATTEST: SAFARIK
TULANG
TYLER
COUNTY CLERK CHAIRMAN & PRESIDING OFFICER Reference:
RESOLUTION NO.