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HomeMy WebLinkAboutCOM 0593.000 1996-1998 PROJE _;T PLANNERS ~~AWAII 5375 Kalanianaole Highway • Honolulu, Hawaii 96821 h . , _ „ a_ _ November 17, 1997 C CQU~ . , , Councilperson James Arakaki Chairman County Council County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 Dear Chairman Arakaki: Enclosed herewith are fifteen copies of Gamrex, Inc.'s annual progress report. I have sent copies to the Planning Department under separate cover. Thank you for your continued support of Gamrex and its ongoing efforts at the Kona Vistas Subdivision. Please extend my best wishes to all the other Council members for festive holiday season. Once again, mahalo. Respectfully, Gregg Kashiwa cc: Gamrex, Inc. Ariz ~3. ZN(7 K f4+P. To:_ _ tai. ~.;r., NOV i 9 1997 Honolulu Phone (808) 373-2989 • Kona Phone (808) 329-9724 • Kona Fax (808) 326-2789 ANNUAL PROGRESS REPORT Prepared For: Gamrex, Inc. 1188 Bishop Street Suite 903 Honolulu, Hawaii 96813 Prepared By: Gregg Kashiwa President Project Planners Hawaii 5375 Kalanianaole Highway Honolulu, Hawaii 96821 Pertaining To: State Land Use Commission Docket No. A83-549 County Change Of Zone Ordinance No. 84-23 (REZ 470), As Amended Tax Map Keys: 7-6-21:4, 1-13 15-17, Third Division Dated: November 17, 1997 INTRODUCTION: As in past years, this annual report for Gamrex, Inc. which covers the Kona Vistas Subdivision and development located in Holualoa, North Kona, Hawaii, will be divided into four (4) separate sections. These parts are also covered and conditioned by State Land Use Commission Docket No. A83-549 and County Change of Zone ordinance No. 84-23 (REZ 470), as amended. These parts of the develop- ment are further conditioned by existinggovernment rules and regulations. These four sections of the annual progress report cover the following areas of the development: 1. Single Family Residential (RS 15) Zoned Area 2. Flood Control Systems 3. Multi-Family Residential (RM 5) Zoned Area 4. Affordable Housing Requirements 1997 was a year of great change and progress for Gamrex, Inc. and the Kona Vistas Subdivision and develop- ment. These changes began in the second half of 1996 when Chairman Takashi Gamo became actively involved in the management and operations of the development. Prior to this the management and operations of Kona Vistas was headed by a management team located in Tulsa, Oklahoma. This system was time consuming and distant. There were long time delays between decisions and authorizations required to keep the development operational. In the latter portion of 1996, Chairman Gamo decided to create a new management team which would be based in Honolulu. This team would report to Chairman Gamo and the Tokyo operations. Just prior to implementation of the new management on January 31, 1997, Chairman Gamo unexpectedly passed away. Fortunately the system and personnel were selected and in place prior to the untimely passing of Chairman Gamo, and the transition of management went smoothly. If this had not been done prior to 1997, there would have been a period of prolonged inactivity at Kona Vistas while matters were sorted out. By February of 1997, the new management team was in place and working. -1- It has proven to be very efficient and continues to provide the development with sound leadership and management. The new management additionally has provided superior skills in the organizational, procedural and financial operations of Gamrex, Inc. The organization is finacially sound and prepared to face all aspects in the long term development at Kona Vistas. Its Honolulu management presently consists of Mr. Akira Oqata, Vice President and Director and Mr. Clancy Fuchigami, Secretary and Director. Gamrex's principal offices remain at 1188 Bishop Street, Suite 903, Honolulu, Hawaii 96813. During this transitional period, Gamrex continued to operate and carry out all governmental requirements without delay. While internal operational and management problems are of no concern to government, they should be considered in the evaluation and progress of the project. During this period all of the Kona Vistas inventory was evaluated. House package sales were discontinued and only lot sales were continued. All vacant lot inventory was repriced in line with the current market conditions which had fallen since the start of sales in 1993. This price reduction exceeded 40~. In February, 1997, the repriced inventory was placed on the market. Market activity in Kona and West Hawaii remains slow. There appears to be a slight increase in sales volume, but like the rest of the State, the market is far from robust. Kona Vistas subdivision has priced itself to be very com- petitive in the Kona market, and sales thus far in 1997 have been at acceptable levels. There are approximately 70 units of unsold inventory in Unit 1 of the RS 15 zoned area. Present financial restraints prevent Gamrex from any further indebtedness and all activities within the develop- ment must live off of cash flow generated from sales. Should sales continue at present volumes, planning and approvals for Unit 2 will commence in 1998. During 1997 Gamrex has constructed a new, permanent sales office located on the corner of Lako and Pualani Streets. New marketing plans were implemented and with them came the -2- decision to open the site sales office daily. The sales staff was doubled and site sales office is open from 10:00 A. M. to 5:00 P. M. seven days a week. This was implemented on January 2, 1997 and continues to date. These changes and and price reductions have made Kona Vistas the strongest selling subdivision in West Hawaii. It is slowly fulfilling its role in providing housing opportunities within the urban corridor between Kailua Village and Keauhou. SINGLE FAMILY RESIDENTIAL (RS 15) ZONED AREA: This area of the development called the Kona Vistas Subdivision has provided Gamrex with its only source of income since sales began in 1993. The first increment of the subdivision consists of 110 single family residential lots being no less than 15,000 square feet in size. To date approximately 40 of these lots have been sold. Lot buyers are actively building homes. There are presently seven (7) homes under construction and another three being reviewed by the subdivision association. In spite of the economic times, this construction activity shows that Kona Vistas is a desirable location for many residents. It contains a private recreational center for its residents which is heavily used. The State Elections Officer recently requested the use of the Kona Vistas recreation center as a polling place for the 1998 elections. The request was granted by the subdivision association. Gamrex is presently keeping track of sales activity within Unit 1 of Kona Vistas and should activity keep its present pace, the review and approval process for Unit 2 will be started. Unit 2 is presently estimated to yield approximately 105 lots. At total build out, Kona Vistas Subdivision will add 215 single family residential lots to the housing stock of North Kona. At present sales levels, Gamrex may conceivably finish the RS 15 zoned area within five (5) years. It presently is devoting maximum efforts tothat end. -3- FLOOD CONTROL SYSTEM: As reported last year, the Final Environmental Assess- ment (FEA) and Negative Declaration for the flood control system were obtained. Subsequently, it was discovered that the immediate down stream portion of the existent flood channels within the Kalani Makai Subdivision makai of Kupuna Street had not been dedicated to the County of Hawaii as set forth in its subdivision approvals. There is an ongoing question as what is going to be done about this situation. Gamrex has no power in this case and is presently awaiting the outcome of talks between the present owner of the channel system and the County of Hawaii. When this is resolved, Gamrex can proceed forward with the State Department of Health NPDES Permit. This permit is the last barrier to the construction of the proposed drainage and flood control system. It is estimated to take approximately 12 months to obtain the permit. Construction of the flood control system is estimated to be between 18 to 24. Thereafter consolidation and resubdivision of the channel right-of-way must be affected so all remnant parcels created by the new alignment will be taken care of. When all subdivision amd mapping of the completed flood control system are completed and final inspection of the improvements by the County are done, Garmex must submit an "as built" set of plans to FEMA together with an applica- tion for a Letter of Map Revision (LOMR). this LOMR will revise the FIRM and show the flood plain(s) contained with- in the confines of the lined channels. At that point in time Gamrex will be free to proceed on two very important parts of the development which are: 1. Satisfaction of Gamrex's affordable housing agreement with the Office of Housing and Community Develop- ment, County of Hawaii. -4- 2. Start the planning and approval process with the County of Hawaii for the RM 5 zoned area. This includes infrastuctural plan review and prelimin- ary subdivision approval. Dealing with the flood control improvements comes under the control and review of the Federal, State and County governments. This process is a long and overlapping one. These mandated reviews are nonetheless part of the approval process and there is no way around them. In the case of subject flood control approval process both the County of Hawaii and Gamrex have been applicants. While there remains a long way to go on the flood control system, there is now a light at the end of the tunnel. Gamrex is confident that once the ownership of the existing flood channels is resolved, the process can move forward to its final permits and approvals. MULTI-FAMILY RESIDENTIAL (RM 5) ZONED AREA: As conditioned by the Department of Public Works (DPW), County of Hawaii and by FEMA, no work can commence within the RM 5 zoned area until such time as the flood control improvements are completed and the FIRM has been amended by the LOMB. At that time Gamrex is free to begin planning on the RM 5 zoned are which will include: 1. Location and design of the intersection to Queen Kaahumanu Highway. 2. Connection of the roadway system within the RM 5 zoned area to the existing roadways within the RS 15 zoned areas. When completed this will give the users of Lako Street an alternative ingress and egress point to Queen Kaahumanu Highway. 3. Design and review of the infrastructural plans for the RM 5 zoned areas by all concerned agencies. 4. Submit preliminary subdivision plans to the County for the RM 5 zoned areas. -5- , This annual progrees report for Gamrex, Inc. and the Kona Vistas Subdivision and development is respectfully submitted on Gamrex's behalf by Project Planners Hawaii. Should any questions arise or additional information be required, please contact: Gregg Kashiwa Project Planners Hawaii 5375 Kalanianaole Highway Honolulu, Hawaii 96821 Honolulu Phone: (808) 373-2989 Kona Phone: (808) 329-9724 Honolulu FAX: (808) 373-7870 Kona FAX: (808) 326-2789 Respectfully submitted, Gregg Kashiwa -7-