HomeMy WebLinkAboutCOM 0724.001 1998-2000 Mtn M Virginia Goldstein
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Stephen K. Yamashiro i,~~; Directo.
Mayor 'T 1
Russell Kokubun
• Deputy Directos
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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
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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.
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. ~
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).
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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.
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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
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