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HomeMy WebLinkAboutREP PC 076 12/14/1999 1998-2000 REPORT OF THE COMMITTEE ON PLANNING DATE: December 14, 1999 Re: C-565/Bill No. 178 PLACE: Councilroom TIME: 3:05 p.m. Chair and Members Hawaii County Council Hilo. Hawaii 96720 Your Committee on Planning, to which was referred Bill No. 178, transmitted by Mayor Stephen K. Yamashiro per Communication No. 565, dated November 3Q 1999, regarding the change of zone request by Kaupulehu Makai Venture, at Kaupulehu, North Kona. Hawaii, TMK: 7-2-10: 1, portion of 2, 8, 9; 7-2-12:2 reports as follows: Bill No. 178 amends Section 25-8-3 (North Kona Zone Map), Article 8, Chapter 25 (7,oning Code) of the Hawaii County Code, by changing the district classification for approximately 279.18 acres of land from a Resort (V-2.25) Multiple Family Residential (RM-3 and RM-10), Village Commercial (CV-10) and Open (O) zoned district to a Project District (PD). The somewhat rectangular-shaped property, owned in fee by the Kamehameha Schools Bernice Pauahi Bishop Estate, who has approved the filing of this application by its lessee Kaupulehu Makai Venture, a Hawaii general partnership, is located on the makai side of Queen Ka`ahumanu i lighway adjacent and south of Kona Village Resort. The entire makai and mauka portions of the Kaupulehu ahupua`a were originally leased from B. P. Bishop Estate by Hualalai Development Corporation under a lease agreement established in 1961. A 62-acre parcel, surrounding Kahuwai Bay, became Kona Village which was subleased to Signal Properties who operated Kona V illage under the name of Island Copra and Trading Company (ICTC). In April 1979, Cambridge Pacific, Inc., secured the master lease for Kaupulehu and Kona Village Resort by purchasing ICTC stock from Signal Properties and Hualalai Development Corporation. In May ]984, Barnwell Hawaiian Properties, Inc.. a wholly owned subsidiary of Barnwell Industries, Inc., entered into a joint venture with Cambridge Pacific hre., to develop the Kaupulehu lands by purchasing a controlling interest, which resulted in the formation of Kaupulehu Developments. Also in May 1984, Kona Village Partnership acquired the lease for Kona Village Resort from Cambridge Pacific, Inc., and a significant master planning effort was initiated by Kaupulehu Developments for the creation of a 624-acre Kaupulehu Resort. and various governmental approvals were subsequently issued for the project. The granting of various SMA Use Permit approvals allow the development of 368 hotel units (SMA No. 272 and SMA No. 308) and up to 940 residential units (amended SMA No. 271 and SMA No. 348). In May 1992, Kaupulehu Makai Venture acquired the development rights for the resort and fornied Kaupulehu Land Company, which was given the responsibility of managing PG76 pC-76 Page 2 December l4, 1999 the development of the resort. On May 1, 1995, the name of the resort was changed from Kaupulehu Resort to Hualalai at Historic Kaupulehu (Hualalai Resort), and the name of the development entity was changed from Kaupulehu Land Company to Hualalai Development Company. In September 1996, the 243-room Four Seasons Hotel opened at Hualalai. To date the development of the resort has focused on a 345-acre area identified as Phase I, which includes the Hualalai Four Seasons Hotel, Golf Villas, Hillside Villas, golf course and clubhouse, and impending developments such as single and multi-family projects. A total of 138 residential units have been developed in the area surrounding the hotel and another 191 are planned, resulting in a total Phase 1 residential development of 328 units. The remaining residential capacity under SMA Use permits granted is 612 residential units. The existing residential zoning within the remaining 279 acres of the resort (Phase II) allows the construction of 459 residential units. Under the existing Commercial zoning on lands within Phase II, residential development is allowed but cannot exceed the 612 residential units permitted under the existing SMA approvals. The following is a brief history of the project: October 4, 1974 The State Land Use Commission (SLUG) reclassified 318 acres (the existing Kona Village and surrounding area) from Conservation to the Urban District. August 12, 1982 The SLUG down zoned 65 acres around Kona Village resort from Urban to Conservation in exchange for upzoning 65 acres, approximately 1,500 yards to the north for the purpose of constructing a 350-unit condominium project, from Conservation to Urban. .luly 1986 State Land Use Commission accepted the Environmental Impact Statements as part of the applicant's State Land Use Boundary Amendment Petition for the proposed Kaupulehu Resort project. October 24, 1986 The SLUG reclassified 575 acres from Conservation to Urban and 123 acres from Urban to Conservation District. In approving the amendment, the SLUG imposed several conditions based upon representations made within the Final Environmental Impact Statement (FEIS) dated June 1986. The FE[S indicated a total number of 1,500 units at the resort, consisting of 600 to 900 hotel units, 50 to 150 beach condominiums and 300 to 450 golf condominiums. February 11, 1988 Planning Director approved Subdivision No. 5618 for the creation of a 2-lot subdivision consisting of 81.400 acres and 2,805 acres. PC-76 PC-76 Page 3 December 14, 1999 October 27, 1988 Ordinance No. 88-157 which rezoned 232.8 acres from Open to Multiple Family Residential (RM-3 and RM-10), Village Commercial CV-10) and Resort Hotel V-2.25 and V-10 zoned district. Planning Commission approved Special Management Area Use Permit No. 271 to allow the construction of the 600-room Princess Hotel complex, 4 beach villas golf course and clubhouse public access, infrastructure and other related improvements on a 36-acre site on Kumukehu Point on the southern end of the parcel. The Planning Commission also approved Special Management Area Use Permit No. 272 to allow the construction of a 358-room Sporting Club, hotel complex and related improvements, golf course and clubhouse facility, infrastructure and public access on a 37-acre site at the northern end of the parcel. July 5, 1989 Planning Commission approved Shoreline Setback Variance No. 642 which allowed the establishment of pedestrian trail, landscaping, the removal of vegetation, and the construction of ancillary elements (lighting, trash receptacles, benches), within the 40 foot shoreline setback area extending from the southern boundary of Kona Village to the southern boundary of the Kaupulehu property. ,Tanuary 31, 1991 Planning Commission approved Special Management Area Use Permit No. 308 for the construction often beach villas and related improvements on a parcel abutting the northern side of the Sporting Club and Hotel approved under SMA No. 272. September 2, 1992 Ordinance No. 92-95 allowed a zoning adjustment to realign the access road to reroute the 36 golf holes to make them playable from a single golf clubhouse. No change in overall density, unit count or proposed land uses. ,Tune 15, 1994 Ordinance No. 94-75 rezoned the Kaupulehu Resort to a lower density for a single hotel, reconfigure the layout of the two golf courses, and reconfigure resort, residential and commercial parcels which abut the golf courses. October 28, 1994 Planning Commission approved the amendment of Special Management Area Use Permit No. 271 to develop 140 resort/residential lots or units and a beach club, rather than the 600-room hotel complex on a portion of the parcel (eliminated the Princess Hotel concept). PC-76 PC-76 Page 4 December 14, 1999 Planning Commission approved Special Management Area Use Permit No. 348 for the development of approximately 800 single and multiple family residential, resort residential units, and a commercial area at Kaupulehu Resort. November 18, 1994 Board of Land and Natural Resources approved Conservation District Use Permit No. HA-2719 for the excavation of tour near-shore swimming areas along the Kaupulehu Resort coastline. The applicant is proposing to redesignate a 279.179-acre portion of the existing 624.424 acres Hualalai Resort from Resort (V-2.25) Multiple Family Residential (RM-3 and RM-10), Village Commercial (CV-10) and Open (O) to Project District (PD) for the proposed development. This request refers to lands within Phase II of the Master Plan. The Kaupulehu Makai Venture Project includes resort residential use, commercial use, golf course and clubhouse use, and other related accessory uses: l . Resort/Residential Units. A total of 459 resort residential units are proposed within approximately 279.179 acres of the development area, which would consist of single-family, double family, and multi-family developments, including time share and short term rentals. The amount of units projected to be built does not include additional residential units allowed under the existing Commercial zoning within the proposed Project District. To preserve the low density of the resort residential development, Phase ll will be limited to a maximum of 612 units. 2. Golf Course and Clubhouse. An 18-hole golf course, clubhouse, gol f maintenance and appurtenant facilities. 3. Commercial Land Use. 12 acres are designated for village commercial uses. 4. Public Access. 'fhe Final Comprehensive Public Access Plan (November 1997) approved by the Planning Director. Most of the public shoreline access is within Phase I of the Hualalai Resort. A public access parking area is located along the south property line abutting the Kukio property and within the proposed Project District area. fhe project construction cost is estimated to be $100 million over a period of twenty years, although the time frame for the construction is dependent upon the real estate market. The County General Plan [.and Use Pattern Allocation Guide (LUPAG) Map designates the project area as Urban Expansion Area, which allows for a mix of high density, medium density, and low density urban developments, industrial and/or open designations in areas where new PC-76 p('-76 Page 5 December 14, 1999 settlements may be desirable, but where the specific settlement pattern and mix of uses have not yet been determined. The LUPAG Map also designates the entire property's Queen Ka`ahumanu Highway frontage as Open Area, which is generally for parks, historic sites, and open space. The Kona Regional Plan, adopted as Resolution No. 1-84 in April 1984 by the Planning Commission, recognizes the Kaupulehu area as a resort destination area. The Plan recommends that this area be allowed to develop on an incremental basis as the demand warrants. fhe conversion to the Project District zoning will provide a flexible and creative planning approach rather than specific land use zone designations. It will also provide flexibility in the location of specific uses and mixes of structural alternatives. The project area consists of a`a and pahoehoe lava flows, which is located makai of the Queen Ka'ahumanu Highway, adjacent to the existing Kona Village Resort and the Four Seasons Hotel. The makai boundary varies from 500 to 5,000 feet inland from the coastline. The mauka boundary is the Queen Ka'ahumanu Highway which is about 6,000 to 7,000 feet from the coastline. The project area includes the undeveloped portions of the Kaupulehu/Four Seasons master planned area and is identified as Phase II of that master plan. The topography is generally Flat and rises gently from sea level to an elevation of approximately 250 feet above sea level at Queen Ka`ahumanu Highway with an overall average slope of about 5 percent. The project area consists of sparsely vegetated pahoehoe and a`a lava fields. The Soil Conservation Service classifies soils within the project site as a'a, pahoehoe, lava flows, rock land and beach areas. The Land Study Bureau's Detailed Land Classification System classifies soils within the project area having an overall master productivity rating for agricultural use of "E" or "Very Poor." 'Che State Department of Agriculture's Agricultural Land of Importance to Hawaii (ALISH) Map does not classify the project area. The project area is classified as Zone "C" and area of minimal flooding. A view analysis indicates that the project area will obstruct some views of the ocean from the Queen Ka`ahumanu Highway. Phase ? is entirely mauka of an already constructed ocean front resort area. The visual appearance of the project area will be altered with the proposed development by extending the built area in a mauka direction. To mitigate visual impacts in the area where terrain is the highest, design guidelines will be employed to reduce impacts on ocean views. Design standards include: l . Maximum building heights in the commercial areas will be the same as in multi- family residential areas (maximum height of 45 feet) 2. Color PC-76 PC-76 Page 6 December 14, 1999 3. Building design 4. Landscape will be an integral part of the resort residential environment In April 1985, a floral survey conducted by Char & Associates found no endangered or rare species. Of the inventoried 70 species, more than half are introduced species. Among the native species, 15 are indigenous and 1 1 endemic to the Hawaiian islands. Four types of vegetation were identified: the predominate scrub vegetation on lava and small coastal areas of kiawe thicket, strand vegetation, and wetlands. No threatened or endangered species were found by Phillip L. Bruner who conducted an avifauna) and feral mammal survey in 1985. One native bird and several migratory birds were seen on the site. Kaupulehu is one of the last remaining habitats of the feral donkey, and as this project if developed further, the donkey will have to move to alternate undeveloped areas. In June 1985, a baseline assessment of the marine environment fronting the project site was conducted by Steven Dollar, who classified the marine waters off Kaupulehu coastline as AA. The objective of Class AA is that these waters remain in their natural pristine state as much as possible. The assessment concluded that "the potential for direct impact as a result of development to the offshore communities appears to be very small." The potentially major impacts are: 1. Increased sedimentation from wind or runoff as a consequence of grading 2. Changes in groundwater discharge, especially with respect to nutrient loads from sewage-laden irrigation and golf course fertilization 3. Shoreline modification, including changing coastline access 4. Changes in runoff In March 1986, eight anchialine ponds were found on the makai Phase I project site area by OI Consultants, Inc. These ponds were preserved and integrated into the Phase 1 project design. No anchialine ponds are located within the Project District area. In an archaeological inventory survey conducted in 1986 by Paul H. Rosendahl, PhD., Inc., the remains found appear to have a low to moderate significance in terms of potential scientific research, interpretive, and cultural values. Thirty-five sites in the survey area require no further work; 9 sites including the historic foot trails are recommended for preservation, interpretive development and inclusion into the project landscaping; and further work in the form of intensive archaeological testing and/or mitigation is recommended for 9 sites. The State Historic Preservation Division, which accepted the Preservation Plan submitted on July 2, 1999, stated YC-76 PC-76 Page 7 December 14, 1999 that the change of zone request will have "no effecf' on the significant historic sites that have been preserved. The Hu`ehu`e-Ka`upulehu Trail and three other archaeological sites are located within the project area and are to he preserved. A Buria? Treatment Plan prepared in 1993 was reviewed and approved by the Burial Council in May 1993. Public access for the Hualalai Resort is set forth in the Final Comprehensive Public Access Plan dated November 1997, which was approved by the Planning Department. The plan reflects the alignment of the mauka-makai and lateral shoreline public access and public parking areas. Twenty five public access parking stalls at the South Parking Area along the boundary line abutting the Kukio property, within the proposed Project District area, and another twenty five public access parking stalls at the South Parking Area near the Four Season Hotel will be constructed. The plan also designates signage, emergency response considerations, restrictions on use (if any). provision of recreational and restroom facilities at appropriate locations, and related improvements. The Queen Ka`ahumanu (Queen K) Highway, atwo-lane, two-way State highway, is the primary arterial highway connecting Kawaihae and Kailua-Kona. The existing access to the project area from Queen K is via an existing paved roadway, which serves the Hualalai and Kona Village Resorts. As a condition of Ordinance No. 88-157, a fully channelized intersection at Queen K was required and was constructed in 1995. Potable water is presently provided through a private system of wells, storage and distribution facilities. Additional nonpotable water will be needed to irrigate the new golf course. The existing irrigation system needs to be expanded with additional irrigation wells and distribution lines. 'there is no municipal sewage system in the immediate vicinity, therefore, wastewater disposal is presently accommodated by a private wastewater treatment plant within the Hualalai Resort Phase I area, which will have to be expanded to accommodate effluent from the new development. The treated effluent will be disposed in accordance with the State Department of I lealth requirements. All public utilities are available to the area. Surrounding lands include the Kona Village Resort and Hualalai Resort developments located immediately makai of the project site. Kona Village is zoned Resort (V-7) and Open and contains 130 hotel units. Hualalai Resort is zoned Resort ,Multiple Family, Village Commercial and Open and contains 250 hotel units. Adjacent to the north is the State of Hawaii Puuwaawaa lands. On April 10, 1999, the County Council changed the district classification from Open to Project District for approximately 1,078.634 acres of land. PC-76 P476 Page 8 December 14, 1999 Councilmember Julie Jacobson stated that she did not support this measure because creating these extra lots "will not bring us out of the economic slump." Councilmember Curtis Tyler stated that he is in support of this "quality" project because it will enable them to go into the second phase that has been built today. Your Committee concurs with the Planning Commission and the Planning Director for recommending a favorable consideration to Che change of zone request. Your Committee on Planning is in accord with the intent and purpose of Bill No. 178 and recommends it pass first reading. AYES NOES A & E H:x Respectfully submitted, LI?I rHBAD=fODp X TYi.ER X COMMITTE N P ~G CHUNG x ELARIONOPP X incoRSON x BO Y JEAN LEITHEAD-TODD, CHAIR PISICCIIIO X sMrrFi x PC REPORT NO. 76 vncoNC' x ADOPTED: JAN 0 5 200 ARAKAI:I r;.( .M. X