HomeMy WebLinkAboutCOM 0453.012 2004-2006 .Shi~or,~v_
MINUTES FOR THE MEETING OF
BOARD OF LAND AND NATURAL RESOURCES
DATE: FRIDAY, SEPTEMBER 23, 2005
1TME: 9:00 A.M.
PLACE: NATURAL ENERGY LABORATORY OF HAWAII
AUTHORITY
73-4460 QUEEN KAAHUMANU HIGHWAY
KAILUA-KONA, HAWAII 96740
Chairperson Peter Young called the meeting of the Board of Land and Natural Resources to
order at 9:OSam The following were in attendance:
MEMBERS
Mr. Peter Young Mr. Tim Johns
Mr. Ted Yamamura Mr. Gerald DeMello
Ms. Taryn Schuman Mr. Ron Agor (arrived at 10 am)
STAFF
Mr. Russell Tsuji, Land Mr. Keith Chun, Land
Mr. Dan Quinn, Parks Mr. Sam Lemmo, OCCL
Mr. Paul Corry, DOFAW Mr. Mike Donoho, DOFAW
Mr. Bob Masada, Deputy Land Ms. Jennifer Bethel, CO
Ms. Maryann Maigret, HP
OTHERS
Ms. Linda Chow, Deputy Attorney General
Mr. Luna ONeil, D-1, J-1 D-0, D-3, E-1 Mr. Dickson Lee, D-4
Mr. Robert Klein D-3 Mr. Frank Ramsey, D-3
Ms. Virginia Isbeii, D-3 Mr. Angel Pilago, D-3
Rep. Cindy Evans, D-3 Ms. Maile David, D-3
Mr. Jen Jensen, D-3 Mr. George Handis, D-3
Mr. Sam Kahanamoku III, D-3 Ms. Gerry Bell, D-3
Ms. Jane Thompson, D-3 Mr. Glen Ross, D-3
Mr. William Meyers, D-3 Mr. Kelly Greenwell, D-3
Mr. Douglas Carr, D-3 Mr. William Aila, D-3, E-I
Ms. Nancy Murphy, D-3, E-I Ms. Kay Colton, D-3
Ms. Kamala Lockcteader, D-3 Mr. Don Bryan, C-2
Comm. No.~~ ,12.
Ref. To: ~pp~
Red. Uate U'r ~ L LuuJ
4 Release orit>anal Lessee The Arc in Hilo from the uavment and cerformance
obligations under General Lease No. 5-4604."
Uuanimousiy approved as amended (DeMeBolJohns).
Item D-3: Approval of (1) Set Aside to Department of•Land and Natural Resources,
Division of Boating and Ocean Recreation of app%aimafely 68.55 acres of
public lands for the operation of the Honolcohau Small Boat Harbor; (2)
Development Agreement and form of Master Ground Lease with Jacoby
Development, Ina for approzimately 297,79 acres of public lands for a
master-planned mixed-use development project; and (3) Extension of time
to finalize and execute Development Agreement, Kealakehe, North Kona,
Island of Hawau, Hawau; TMK: (3) 7-4-08: 3, 40, 41, 42, 46, and 74.
Mr. Tsuji gave a brief background on this issue. He reminded those present over a year ago
the Board authorized staff to solicit and seek out a developer to build additional marina
facilities and to possibly develop the lands surrounding Honokohau Small Boat Harbor.
Jacoby Development Inc. (JDI) submitted a proposal and was selected by the Board to
negotiate a development agreemant and lease for this project Since that time JDI, staff and
the attorney general's office has been working on the terms of the lease agreement. Mr. Tsuji
made it lmown that today's approval by the Board does not mean a lease would be issued for
this project Instead staff is asking the Board to approve a development agreement. Attached
to the development agreement is a form of the master lease to be executed only after all of the
terms and conditions of the development ageement have been fidfilled. If the temrs and
conditions are not met the parties may terminate the agreement and no lease will be issued.
Staff is also requesting a set aside of lands to the division of Boating and Ocean Recreation
(DOBOR)which will place the management and operation of the Harbor and surrowrding fast
lands under their jurisdiction.
Keith Chun, Special Projects Coordinator with the Land Division explained what the set aside
would mean to the lessee's occupying space at the hazbor. Mr. Chwr clarified in the early
1990's the subject land was transferred to the Department of Land and Natural Resources
(DLNR) from the Department of Transportation but an executive order has never been issued.
This set aside would include the existing basin, boat ramps, parking and almost all of the
existing lessee's (except Hawaii Big Game Fishing Club and the Federal Government lease to
manage the anchialine ponds) and turn over management jurisdiction to the Division of
Boating and Ocean Recreation (DOBOR). Approval by the Boazd today would give JDI the
right to seek pemrits and entitlements and perform and Fnvironmentai Impact Statement. Mr.
Chun believes this process should take anywhere from three to five years to complete. There
were several conditions within the development agreement, Mr. Chun would like to make the
Boazd awaze of 1) if the lease is issued JDI is asking the Board to consent in advance to
assigmnents to entities controlled by JDI; 2) with regards to sublease JDI would like the
Boazd to waive consent on subleases within improvements constructed 3) JDI will submit a
performance bond equal to one-yeaz rent.
5
Written testimony was received from George J. Handgis.
The Board amended the Recommendation Section by adding the toRowing
°6 The Environmental Impact Statement (EIS) shall be presented to the Board in an
~ro Board meeting prior to the issuance of the Master Ground Lease."
Motion to Defer
Approved to defer (DeMeRo)
Members Young, Johns, Yamamura, Agor and Schuman voted No.
Motion fails.
The Board made the following changes to the Recommendation Section
1) Amended Recommendation 2)
"
2. Approve the Development Agreement and form of Master Ground Lease,
but with the following conditions and/or modifications:
a. The Environmental Lnpact Statement (EIS) sha116e aresented to
the Board in an oceo Board meeting prior to We issuance of the
Master Ground Lease. at which time the Board mar elect to
termiaate the development agreement based on the resulfs of the
EIS• and
b The (ands encumbered by Revocable Permit Nos. B-93-53 to
Hawaii Big Game Fishing Club and 6783 to the U S Government
(De~arhnent of Interior/National Parks). shag be included in the
lands to beset aside to DLNR. Division of Boating and Ocean
Recreation and shall not be subiect to the Development Agreement
and/or Master Ground Lease to Jacoby Development. Inc."
2) Add the following recommendation
"6 Stsff shall report to the Board every six months on the status and oror~ess
of Jacoby Develonment Inc under the Devdoument Agreement^
Unanimously approved as amended (Yamamura/Johns).
Item C-2: Amendment No. 3 of Timber Land License No. H-01016e1d by TW, LLC.
Paul Conry, Administrator for the Division of Forestry and Wildlife (DOFAW) reminded the
Board of the two proposed amendments to the timber land license that was agreed upon prior
to the August 12, 2005 Boazd meeting 1) Proposed assignment of interest to Rockland Capital
Energy Investrnents, LLC and 2) Change of Domicile for Tradewinds from a Washington
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