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HomeMy WebLinkAboutCOM 0687.076 2004-2006 The Honorable Pete Hoffmatut, Councilman May 31, 2006 Page l of 4 r , c Hiluhilu Development LLC R' P. O. Boa 9007 Kailua-Kona, Hawaii 96740 ~ i,.' May 31, 2006 ~ The Honorable Pete Hoffmann Councilman Hawaii County Council 64-1067 Mamalahoa Highway, Suite CS Kamuela, Hawaii 96743 Re: Bi11224 -Draft 2: Hiluhilu Development, LLC Dear Councilman Hoflinann: Thank you for allowing us the opportunity to comment on the proposed Draft 2 to Bill 224 that you intend to introduce at the June 5, 2006 Council meeting. Xou have asked for a written response to the provisions of that draft. Our comments are set forth here. If the rezoning is approved by the County Council, we, in conjunction with the University of Hawaii, will be able to provide the following benefits to West Hawaii: • Assist the University of Hawaii in moving to its permanent site; • Providing supporting infrastruchue (water, eleetnical and wastewater disposal) for the University; • A new two lane public road between Kaiminani Street and Palamanui; • A new mauka-makai public connection between Mamalahoa Highway and Queen 1Caahumanu Highway; • Twenty (20) acres of land for a regional park; • Expanding the DWS system to connect two new wells and storage tanks to the DWS waterline along Queen Kaahumanu Highway; • 200 affordable housing units in Palamanui; • Participate in developing Road 4 for a new access to Manralahoa Highway through State land and Lynch Investment lands. These improvements will benefrt a wide segment of the West Hawaii population. They come at considerable wst. It is therefore necessary for us to review your proposed conditions with a view w determining whether additional costs would be Comm No. ~0~. Ref. ToCre+s~t~ Ra#. Uate. ~ The hIonorable Pete Hoffmann, Councilman May 31, 2006 Page 2 of 4 jztcurred. Hiluhilu's plan and project may become impossible to finance if much additional, non-revenue producing cost is added. Our cotturtents to your Draft 2 follow in the order that they would modify Bi11224 as originally drafted: Conditions D and J. We agree with your changes to these conditions, except that it is Hilubilu's intention to build the University building on State land. Accordingly, we question whether the University building should be included in the "project description" as the "project" is defined as oNy the Palemanui lands being considered for zone change, Golf Coarse Condition T (old). We agree the golf course use and condition should be removed. University Condition 'll' (new). Hiluhilu is committed to making the University move from the Kealalekua location possible, by providing in5rastructure and constructing a building on State land. As the details of that building and of related improvements arc not set, we will aced a reasonable limit on its cost. Additionally we need to allow sufficient time for the University to do its overall site and land use planning so that the new building will fit into their plan. At the saute time, it is necessary to proceed with Palamanui as that will make it possible to fund the various contributions described above. We can do so by continuing to cooperate with the University. If the University can move expeditiously, Hiluhilu can complete the building on the State land in time for a Single move firom the current location. However we recogatize that more time maybe required to complete this planning. if that occurred, Hiluhilu is prepared to build and lease buildings within Palamanui for the University's use until the new building is ready for occupancy. The lease approach would provide space at the same cost as is now budgeted and spent by the University. We therefore want to have a condition that allows this flexibility, while still requiring the eventual construcrion of the permanent building on the 500-acre State parcel. Department of Education Condition U. Hiluhilu is ncgotiatvag with and will enter into an agreement with the Department of Education. We expect that the 5na1 agreement will require $iluhilu to provide the DOE the use of an 8,000 square foot building for a period of twenty years, with an alternative provision for the cash contribution, if for some reason the building cannot be built We are concerned the DOE may want an arrangement that does not match the detailed zoning condition you propose. We also have a concern about trying to set a short deadline for the completion of this building. It is noted that standard practice for payment of DOE contributions is keyed to residential sales. Therefore, an extremely short deadline for completion of this facility would impose a greater than aortae! financing burden on Hiluhilu. Therefore, we ask that this condition be worded to provide flexibility for the final DOE decision, and a realistic timetable. 20 Acre Park Condition W (old Condition W). Hiluhilu will provide 20 acres of land for development of a regional park with initial improvements for a baseball field, a soccer The Honorable Pete Hoffittann, Councilman May 31, 2006 Page 3 of 4 field, together with necessary parking and zestroom facilities. We cannot agree to an open-enfled commitment on improvements for the entire 20 acres. Regional Road Improvemeuta (old Condition X) Requiring that Ililuhilu provide a grade separated interchange `5~n conformance with State Deparhnent of Transportation plaus for a new airport access road network" will jeopardize project financing and the connmunity benefits that the project will provide. As discussed in prior Committee proceedings, the Highways Division and the Airports Division do not have any firm plans for this interchange. If such plans were available quickly and funding obtained so that the interchange (with necessary collector roads) was built, Hiluhilu would be able to participate in its cost. However, we do aot think that such an expedited schedule is realistic. We also believe the cost of the grade-separated interchange will be substantially higher than Hiluihilu alone can absorb. The interchange will be a significant regional improvement and Hiluhilu's fair share of ifs cost of this improvement would amount to a small fraction of that cost. If the grade-separaud interchange is not constructed in a timely fashion, Hiluhilu must proceed with a surface connection. Our traffic engineers completed a traffic study on current and proj acted traffic itn the area, and studied alternatives for access to and from Palamanui. After extensive analysis and discussion with the Highways Division, our engineers anfl the Highways Division agreed the better solution from a traffic flow standpoint would be to create a new intersection at Palamanui rather than adding to the existing airport intersection. The recommendation approved by the Highways Division required that the new intersection include traffic signalization. Anon-signalized intersection for access to Palamanui from the highway would be hazardous. Until and woless a grade separated interchange is available, the plan approved by the Highways Division is the optimum solution. Road 4 Condition. Draft 2 removes the $8 million limit and the l0 year time limit and requires Hiluhilu to initiate a Community Facilities District (CFD) to pay for the cost of this mad. Acceptance of this condition will make the project impossible to finance. Hiluhilu has spent considerable time in reviewing the proposed connector road to Mamalahoa Highway, in cogiunction with the County Planning Depattate~, Department of Public Works, State DLNR and with Lynch Investments representatives. We involved our traffic engineers in this process so that we would have a realistic focus on what can be done. We also studied the impact of the native forest on the land to the north of Palamanui. As a result, we worked with. the Planning Department to develop a routing that would avoid endangered trees and other plant specimens. The result is what is now shown as Road "4" A large part of our difficulty has been that, while Hiluhilu will do its part in making tlris mad a reality, the right of way that is feasible extends into State lands and The Ilanorable Pete Hof£ntavn, Councilman May 31, 2006 Page 4 of 4 private lauds. The extent and tithing of the commitment of any othez parties to contribute to the cost of the toad has been uncertain. These unceztainties make it very difficult for Hiluhilu to accept a condition to fund this improvement. That difficulty was the reason why the dollar and time limitations were inserted into the recommended conditions when this application was being processed thzougla the Coutr[y Planning Commission. Palamanui was conceived of as a community development with a mix of housing. It is not planned as an exclusive "high ctxd" residential cotnznunity. Twenty percent (20%} of Ule residential units onsite wil! be set aside for affordable housing. Using a financing vehicle such as the CFA will force up the housing prices at Palamanui. This maulca-makai connector road will be a major regional benefit. If a CFD is to be used to fund its design and construction, the assessed azea should include several if not aU districts of the island- We do not believe that this approach is workable. If public flutds are used for this improvement, a general obligation bond, repaid from tax revenues of the county, is a fairer and more workable approach. We ask that this condition be revised to eonfozm to that recommended by the Planning Commission. Thank you fox providing us with the opportunity to comment on Drag 2. We look forward to working with you and your fellow council members to reach a reasonable resolution of the issues and to move forward with the project. Aloha, HILUHILU DEVELOPMENT, LLC By: Quid come Island Advisors, Inc. Owner's Representative