HomeMy WebLinkAboutCOM 0939.040 2004-2006
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From: Charles Flaherty [oneheart@aloha.net]
Sent: Tuesday, August 01, 2006 3:34 AM
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To: counciltestimony@co.hawaii.hi.us
Subject: Testimony against Resolution 383-06
Attachments: HCR174honokohau.doc; SB2853honokohau.doc; HRS171honokohau.doc; elar_d2_resp.pdf;
REPORTCOUNTYOFHAWAII.doc
August 1, 2006
Aloha Mr. Chair and members of the Hawai'i County Council,
I am opposed Resolution 383-06 to initiate interim amendments to the General Plan for lands adjoining
Honokohau Harbor as written. The following research provides the reasons for my opposition.
In December 2001, the Planning Director submitted revised General Plan Draft 1 ("GPD1") that was
approved by the Planning Commission in 2002. The revisions designated the Department of Land of
Natural Resources lands adjoining Honokohau Harbor as Open and removed three small resort nodes
at Honokohau.
In February 2002, Linda Lingle resigned as Republican Party Chair. Micah Kane, government liaison
for the replaced Lingle. In the same month, the Planning Committee of the County Council began its
review of GPD1 under Planning Committee Chair Bobby Jean Leithead-Todd.
The Council Planning Committee under Leithead-Todd delayed consideration of the GPD1 by holding
two workshops followed by a site visit, eight public hearings throughout the island, two more
workshops, two regular meetings, and three more workshops.
In January 2003 Micah Kane was appointed director of Department of Hawaiian Home Lands and
County Deputy Managing Director Peter Young was appointed director of DLNR.
In February 2003 Jacoby Development Inc. ("JDI"), James Jacoby, and Menehune Development Co.
("Menehune") formed Kona Marina Development LLC ("Jacoby'). Menehune acquired a lease of 200
acres adjoining the DLNR Honokohau land.
On April 25, 2003, the BLNR approved the issuance of a RFC/RFP to solicit potential developers to
lease and develop DLNR Honokohau land.
In September 2003, the BLNR held a three-day public "visioning" for development of the Honokohau
land.
In October 2003, Council Member Leithead-Todd resigned and was hired by County Corporation
Counsel. Council member Leningrad Elarionoff became the new Planning Chair.
In November 2003, the Menehune lease appeared on DHHL Commission meeting agenda.
In December 2003, another revised General Plan workshop was held "to concentrate and renew efforts
on the comprehensive review". ~
In January 2004, the DLNR issued a RFQ/RFP for DLNR's Honokohau land. Comm. No. 63 0
Ref. To:
Rc{' . Jo to 1 2008
8/1/2006
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4 _
In February 2004, Menehune assigned its Honokohau DHHL lease to JDI.
In October 2004, the BLNR accepted JDI's proposal for a 500-acre master-planned project with a Land
Use Plan that requires Resort zoning.
In November 2004, Planning Committee Chair Elarionoff introduced revised General Plan Draft 2
("GPD2", attached elar d2 resp.pdf; REPORTCOUNTYOFHAWAII.doc) which returned the resort node
on DLNR land at Honokohau.
The County Council Planning Committee is unable to pass GPD2 before they are removed from office
in December 2004.
In January 2005, the current County Council passed GPD1 with the DLNR land designated as Open.
In September 2005, at a BLNR meeting regarding the proposed JDI development, Kona elected
representatives Councilman Angel Pilago, Councilwoman Virginia Isbell, and State Rep. Cindi Evans all
requested that the development agreement decision be delayed until public hearings can be held in
Kona.
In November 2005, the BLNR and JDI entered into the Agreement, a contract. However, HRS 171-60
(C) (attached HRS171honokohau.doc) states, "Prior to leasing any public land to, or entering into a
development contract with, a developer or developers, the board shall determine the use or uses to
which the lands shall be put, which shall be in conformity with the applicable state, city and county, or
county zoning and subdivision laws, ordinances, or regulations...".
GPD1, containing the Open designation for DLNR lands adjoining Honokohau, had been public for two
years before the DLNR issued its RFQ/RFP.
It is obvious from this timeline and events above that BLNR, JDI, and certain County officials had
constructive knowledge that:
1) existing Open County zoning and GPD1 designation were in conflict with the Honokohau
RFQ/RFP when issued.
2) the Agreement was in conflict with existing Open County zoning and the adopted General Plan
Open designation.
3) the Agreement was in conflict with 171-60(C).
Therefore, the Agreement is void under existing state law. Kona Marina has no "entitlements" to the
public's land at Honokohau.
Supporters of Jacoby that the Kona Kai Ola project, which also proposes to develop 200 acres of
Department of Hawaiian Home Lands, land, will provide substantial revenue to DHHL for building
homes for Native Hawaiians. But the DHHL lease provides payments of only $16.3 million over 20
years. These payments have been weighted to favor the developer by requiring small initial payments,
which will delay revenues for DHHL home construction.
The current project proposal will only provide DHHL with one-time payments of I% of the sales price of
each timeshare or less than $10 million.
The construction of perhaps 100 homes over 20 years worth is not worth losing 200 acres of DHHL
land.
8/1/2006
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The Kealakehe waste treatment facility will soon require expansion.
House Concurrent Resolution 174 (attached HCR174honokohau.doc) spelled out why the State is
pushing the Kona Marina project so hard... it is to be a cash cow to provide funds for improvements to
small boat harbors state-wide. "WHEREAS, DOBOR (Division of Boating and Ocean Recreation]
estimated that a percentage of the gross proceeds from lease revenues generated by its marina
development project, when fully developed, would be sufficient to cover the debt service for most of the
$250,000,000 in capital improvement project (CIP) funds needed to repair small boat harbors
statewide...".
In January 2006, the State legislative session began.
In February 2006, the Planning Director proposed an interim General Plan amendment change the
designation of the DLNR Honokohau land from Open to Urban Expansion.
May 2006, all legislation introduced during the 2006 State legislature to bail out the BLNR and JDI died
in committee (example attached, SB2853honokohau.doc).
June 2006, Kona Council District 7 representative Virginia Isbell transmits Resolution 383-06 to the
County Council in order to bail out BLNR and JDI.
July 2006, Council Planning Committee passes Resolution 383-06 and Planning Director's Urban
Expansion GP amendment.
Not one public hearing has been held in Kona.
Many of the "whereas" statements contained in Resolution 383-06 are not correct.
I urge this Council to vote "no" on Resolution 383-06.
Mahalo,
Charles Flaherty
P O Box 922
Captain Cook HI 96704
8/1/2006