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HomeMy WebLinkAboutCOM 0724.001 1998-2000 Mtn M Virginia Goldstein 4~,.......~ Stephen K. Yamashiro i,~~; Directo. Mayor 'T 1 Russell Kokubun • Deputy Directos .ti y'i•oi~'Mi.'ri I~~' ~f•uU 1r~ ~IIU~t~ II~~.2T~tTMtt 9 F'(~ 9 0~ ~,-v PLANNING DEPARTMENT ~0~,; ~ ; ; 25 Aupuni Street' Aoom 109 • Hilo, Hawaii %720-4252 ~ ~ ' T ;l (808) 961-8288 • Fax (808) 961-8792 November 6, 2000 Ii4r. Gregg Kashiwa Project Planners Hawaii 1188 Bishop Street, Suite 903 Honolulu, HI 96813 Dear Mr. Kashiwa: Change of Zone Ordinance No. 84-23, as Amended by Ordinance Nos. 84-42, 88-04, 90-62, 91-96, 93-26, 94-34, 97-99 (REZ 470) State Land Use Commission Docket No. A83-549 (LUC 534) Applicant: GAMREX, Inc. Regarding: Annual Progress Report TMK: 7-6-21: 4, 9-13, 15-17; Holualoa, North Kona, Hawaii Thank you for your submittal of an annual progress report dated October 16, 2000, regarding the development of the Kona Vistas Subdivision project as required by Condition No. 3 of the above-0escribed LUC Docket. Copies of the report will be transmitted to the State Land Use Commission, _the Planning Commission and the County Council for their information. However, since the submittal of an annual progress report is required as a condiflon of approval of LUC Docket No. A83-549 and not as a requirement of Change of Zone Ordinance No. 97- 99, we feel that it would be proper to direct future submittals of the annual progress report directly to the State Land Use Commission. Comm. Na '2 l~le No. Z ~ Ref. Tor Rei. Date ~ 1 3 7nnn . r Mr. Gregg Kashiwa Project Planners Hawaii Page 2 November 6, 2000 Please contact Daryn Arai of our Kona office at 327-3510 should you have any questions. Sincerely, V1~4Wt "J~ VIRGII~IIA GO TEIN, Planning Director DSA:cps r:~~W~omw~aooovx,~W.x~ra'ro~aooo.a~ C w/ copy of APR: State Land Use Commission Hawaii County Council Planning Commission West Hawaii Office KONA OFFICE 'co ocT is p~ 1 sa COUNTY OF ii,~WAlI PLAf!'r~~" ~ DEPT. Kt~i~, OFFICE ANNUAL PROGRESS REPORT GAMREX, INC. Kona Vistas Subdivision October 16, 2000 'O~~i7 • PREPARED FOR: Gamrex, Inc. 1188 Bishop Street Suite 903 Honolulu, Hawaii 96813 Phone: (808} 531-6861 PREPARED BY: Gregg Kashiwa Project Planners Hawaii 5375 Kalanianaole Highway Honolulu, Hawaii 96821 Phone: (808) 373-2989 (Honolulu) Phone: (808) 329-9724 (Kona) DATED: October 16, 2000 RE: Land Use Commission Docket No. A83-549 Change of Zone Ordinance No. 84-23 (REZ 470), as amended. TAX MAP KEYS: 7-6-21:4, 9-13, 15-17 Holualoa, North Kona, Hawaii r-~ ~ I. Introduction: Gamrex, Inc. respectfully submits this annual progress report for the year 2000. It outlines and describes the progress it has made satisfying the conditions set forth in Land Use Commission Docket No. A83-549 and Change of Zone Ordinance No. 84-23 (REZ 470), as amended during the past twelve (12) months. Like previous annual submissions, this progress report is broken down into four main sections which are: I. The RS ] 5 zoned azea (single-family residential) 2. The drainage system (flood control requirements) 3. The affordable housing agreement 4. The RM 5 zoned area (multi-family residential) Gamrex began construction and development in the RS 15 zoned area in late 1991. The RS 15 azea is incrementally zoned by the County of Hawaii and lies on the southern (Kesuhou) side of the development. It contains a land area of approximately 100 acres. Infrastructural improvements within Unit 1 of Kona Vistas subdivision were completed and dedicated to the County of Hawaii in 1993. Unit 1 consists of 1 ] 0 lots each being no less that 15,000 square feet in size together with a recreation center which occupies approximately one and one-half acres of land. Eight fully furnished sales models together with a sales office were constructed in late 1992 and 1993. Sales began in March of 1993. Hawaii's economy and real estate market experienced a prolonged down-turn during the ensuing years. In 1999, real estate market activity in West Hawaii began a recovery. Gamrex during this period (1993 - 1999) maintained afull-time sales staff at Kona Vistas subdivision. ThE site sales office has remained open seven (7) days a week, between the hours of 10:00 A. M. to 5:00 P. M. from it opening in 1993 to date. Gamrex, during these years, suffered financial hardships caused by falling real estate values and low sales volumes. During the closing months of 1999, as reported in the past year's annual report, market activity in Kona began to improve. This growth has sustained itself through the year 2000. Condominium, vacant lot and single-family residential sales have increased. Over-supplied inventories have been reduced to normal market levels. This increase in activity has been spurred by both out-of--state buyers and pent up demand by local residents. Depressed Hawaii real estate values have attracted a flood of buyers from the . ~ ~ mainland and abroad. A strong influx of "retirees" pouring into West Hawaii attracted by its temperate climate and quality of life has also boosted sales. Gamrex has been working hard selling its inventories in Unit 1 of Kona Vistas subdivision in an effort to replenish capital required for the rest of its development. This process has been ongoing throughout the year. Construction activities in Unit 1 of Kona Vistas will be outlined l~.ter herein. Down-sizing of both government and utility company staff personnel has negatively impacted renewed development activity in West Hawaii. Increased requests for private sector development and construction approvals have created back-logs at both County and State levels. These delays have negatively impacted new construction and development. These problems are part of a healthy real estate market, and are not new to the County of Hawaii. The same conditions existed in the late 1980's and early 1990's.. They are reflective of the demand driven economies in housing markets. Government should, in all fairness, take these factors into consideration when assessing applications and measuring progress of approved projects. Each project has problems unique to itself and governmental approvals cequired for compliance many times are beyond the control of the applicant. Gamrex's problems in this respect will be detailed later herein. II. The RS 15 Zoned Area: As mentioned earlier herein, the RS 15 zoned area within Kona Vistas subdivision is incrementally zoned. The infrastructural improvements in Unit 1 have been dedicated to the County of Hawaii. There aze 110 single-family lots therein. 83 of these lots (75%) have been sold to date. Sales at Kona Vistas have been a mixture of vacant lots and house packages. There are 77 homes in Unit 1, either occupied or under construction. Kona Vistas is becoming the planned community it was designed to be. The recreation center is an asset to the subdivision which is privately maintained by the association of owners. Over the past years, the center has been made available to the State of Hawaii as a polling place for both primary and general elections without charge. It is a convenient and scenic voting place for residents in the surrounding subdivisions. Gamrex is presently selling both vacant lots and house packages in its remaining 27 lots in Unit 1. Plans for Unit 2 in Kona Vistas have been revised to decrease density. New, revised subdivision plans have been prepared and in the process of being completed. The revised plans reflect a transition in lot sizes from the RS 15 (15,000 squSre foot) zoned area into the Rurai zoned areas immediately above in the Iolani subdivision which contains one-half acre lots. -2- . ~ These plans aze expected to be finalized in the neaz future. Instead of the 105 proposed lots, Gamrex now plans on only 85 lots in Unit 2. Many of these lots will be over one-half acre, and an equal number will be between 1b,000 sq. ft. to 20,000 sq. ft. Tle increased lot sizes take into consideration grades (slope gradients) in Unit 2, and provide for a transitional zone between Rural and Urban areas. Revised construction and subdivision plans are expected to be ready for submission in late November of 2000. Upon governmental and utility company approval of the plans Garnrex intends to complete the infrastructural improvements in Unit 2 and dedicate the roadways to the County of Hawaii as conditioned in its rezoning ordinance. The Lako Street connection lies in Unit 2 and will be part of the roadway dedication package. When completed and opened for use> it will connect Hualalai Road with Kuakini Highway. This connection will be of great community benefit. (iamrex expects this roadway connection to be completed within the next 24 months. The RS 15 zoned area of Kona Vistas subdivision is well on its way to completion. Most of the Unit 1 lots in Kona Vistas have homes on them, and construction activity in the subdivision is very active. At this reporting, Unit 1 is close to a 75% build-out and if present trends continue, -will be at full build-out by the time Unit 2 lots come on stream. The same marketing strategy will be implemented in Unit 2. III. The Drainage (Flood Controll Svstem: All approval work has ceased on the flood control system. Gamrex, as reported last year has not been able to proceed forwazd with approvals of the flood wntrol system. There are certain private owners of roadways, culverts and drainage channels within the Kalani Makai subdivision which prevent further applications. Gamrex has been working with the County of Hawaii in solving these ownership and access problems. These acquisitions via purchase and/or condemnation lie in the hands of the County. Once these problems are resolved, approvals of the flood control system can resume. , The following approvals are required: 1. Special Managment Area (SMA) Use Permit for that portion of the drainage system that lies makai of Kuakini Highway and above Kalani Makai and Alii Kai subdivisions (County of Hawaii). 2. U. S. Army Corps of Engineers 404 Permit (U. S. Army). 3. Department of Health 401 Permit (State of Hawaii). 4. Department of Land & Natural Resources, Stream Alteration Permit (State of Hawaii). -3- n 5. Department of Health, NPDES Permit for the entire system (State of Hawaii). 6. U.S. Fish & Wildlife clearance. 7. Department of Health, UIC permits for drywells (State of Hawaii). 8. Rights of entry onto private lands (various land owners). 9. Grading permit, County of Hawaii. Gamrex is prepared to move sequentially forward with all applications once the existing ownership problems aze resolved by the County of Hawaii. There is no estimated time period for this resolution as the roadway owner is anout-of--State corporation. Both the County and Gamrex are actively working on the problem. The drainage (flood control) system and the affordable housing agreement with the Office of Housing and Community Development, County of Hawaii aze related. Gamrex cannot meet the conditions of its affordable housing agreement the County unless the drainage system is completed. When completed, the affordable housing agreement will be consumated. As mentioned eazlier, no time estimation is made for drainage system approval as things have been stalled for several years on the roadway and drainage system acquisition(s). IV. The Affordable Housing Agreement: As mentioned earlier, the drainage (flood control) system and the affordable housing agreement are tied together as one depends on the other. The present housing agreement, as amended, expires on December 31, 2000. Gamrex filed for an extension to the agreement on September 19, 2000. This request for time extension is presently pending before the County Housing Office. , It request states the same reasons for the delay as set forth herein. All governmental agencies will be notified of the status of the agreement and the County's decision thereon. V. The RM 5 Zoned Area: Like the Affordable Housing Agreement, the RM 5 zoned azea is tied to completion of the drainage (flood control) system. Nothing can be built in the RM 5 zoned azea until such time as the improvements are completed. Pending surveys of the "as built" system, definitive subdivision plans and infrastructure] alignments cannot be completed. Planning for the RM 5 zoned area is being held in abeyance until the flood control improvements have been approved by all governmental agencies. -4- APPENDIX Description: Page Request For Time Extention, Affordable Housing Agreement. 1 _6_ i-`. PROJE(. Y PLANNERS I3~WAII 5373 Kalaniansole Highway Honolulu, Hawaii 96821 September 19, 2000 Mr. Edwin Taira Housing Administrator County of Hawaii Office of Housing and Community Development 50 Wailuku Street Hilo, Hawaii 96720 Re: Request For Time Extension Housing Agreement Gamrex, Inc. Tax Map Key: 7~-24: 25 Holualoa, North Kona, Hawaii Dear Ed: The fourth amendment to the housing agreement between Gamrex, Inc. and the County of Hawaii expires ~ December 31, 2000. In September of 1996, I submitted an updated report on the progress made on the flood wntrol system. In that report, the problems of ownership of certain infrasturctural improvements within the Kalani Makai subdivision were discussed. This request will update you on all progress made to date in that regard. Portions of Royal Poindana Drive and Kupuna Street are privately owned. There is a section of Kupuna Street abutting Kilohana and Komohana Kai subdivisions that Spans a .drainage channel via a culvert. This culvert wilt accept the "confluence of the Horse Shoe Bend and Holualoa School-Streams. lands immediately mauka and makai of this culvert are also awned by private parties. Gamrex does not own these parcels and must obtain permission to construct the required flood control improvements thereon. These parties must approve and partidpate in the S.M.A. Use Permit process as well as the construction phase of the proposed project. There also is a pressing need to maintain the existing flood channel located partially (via drainage easements) on Tax Map Keys: 7~-24:36, 71 and 72. Endosed herewith is a tax map .for your reference. Since my last request for time extension, the County has been working to obtain ownership and/or rights of entry for the subject Honolulu Phone x8081 373-2989 • Kona Phone 18081 329-9723 • Kona f ax iRnRl .32E_27R9 parcels of land. The Department of Public Works ("DPW") through Mr. Galen Kuba has been working on this matter. The owner of the roadway and culvert has not been cooperative in deeding the roadways and culvert to the County. This owner is a Nevada corporation and is not locally represented. This has made the process even more difficult. Since the County has powers of eminent domain, Gamrex concludes that ultimately, these easements and roadway lots will be obtained in some manner. Gamrex has been working with Council Member Nancy Pisicchio regarding the land acquisition problem. The Office of the Corporation Counsel is assisting in this matter also. Presently, there is no concrete legal plan of action that Gamrex is aware of. As reported in 1998, checks with the Planning Department file on Kalani Makai subdivision shows the roadways and various infrastructural improvements were supposed to be dedicated (without charge) to the County of Hawaii as set forth in the final subdivision approvals granted to the developer. This was not done and to date, street lights and various other requirements within the roadways have not been energized. The privately owned section of roadway presently is a vital link between Alii Drive and Kuakini Highway. It is heavily traveled and provides the sole mauka-makai link to Alii Drive between Keauhou (Kam III Road) and Kailua Village (at Lunapule Road). Gamrex regretfully reports that no concrete progress has been made since its last request for time extension. The ownership problem still exists. The resolution of this problem falls within the County's control. Gamrex has assisted in all efforts and will continue to help in any way it can. This includes research of land titles, engineering and mapping requirements and meetings with concerned parties. As mentioned in prior requests for time extensions, Gamrex does not know how long this condemnation proceeding will take nor when it will be able to move forward with the remainder of the approval process. This is especially true under present circumstances. Based on the information contained herein, and on the progress made to date, Gamrex respectfully requests that a time extension of two (2) years be granted to fulfill the flood control improvement condition of the affordable housing agreement on the subject parcel. Your kind consideration of this request would be appreciated. Should you or your staff have any questions or need additional information regarding this matter, please contact me in Kona at 329-9724. Thank you for both for your consideration and patience on this problem. I hope that we can make significant progress on this matter this coming year. Council Member Pisicchio is aware and working on its resolution. Respectfully s~u~bQm~itted, 'r"-T" Gregg Kashiwa DwG MO 0GC! u.R ~wY ec ~ece p- ."a y~,? ~s 1 ~ ~ ~ ~ ~ ~ PL LMF/rie ~ I I . I 1 n~ ~1, i .a l? to I 2 I /e I _ / n pcct ~ A` jli Ad t.- IN. , n.. 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