Loading...
HomeMy WebLinkAbout2014-05-15 Leeward Exh B (Amend SMA 388) LEEWARD PLANNING COMMISSION COUNTY OF HAWAI‘I HEARING TRANSCRIPT MAY 15, 2014 DIAMOND RESORTS INTERNATIONAL, A regularly advertised hearing on the application of INC. (Amend SMA 388) (FORMERLY PACIFIC MONARCH RESORTS, INC) was called to order at 10:23 a.m. in the West Hawai‘i Civic Center, Community Center, Building G, 74-5044 Ane Keohokālole Highway, Kailua-Kona, Hawai‘i, with Chairman Brandi Beaudet presiding. COMMISSIONERS PRESENT: Brandi Beaudet, Geraldine Giffin, Thomas Hickcox, Collin Kaholo, Barbara Nobriga and Thomas Whittemore ALSO PRESENT: Bobby Command (Deputy Planning Director), Margaret Masunaga (Deputy Corporation Counsel), Jeff Darrow (Planner), Maija Cottle (Planner) and Noriko Sauer (Commission Secretary) And seven people from the public in attendance. APPLICANT: DIAMOND RESORTS INTERNATIONAL, INC. (Amend SMA 388) (FORMERLY PACIFIC MONARCH RESORTS, INC) Amendment to Condition No. 2 (time to complete construction) of Special Management Area Use Permit No. 388, which was approved to allow the development of a commercial/ condominium complex and related improvements on 76,739 square feet of land. The property is located on the makai side of Ali’i Drive bounded by Ali’i Drive and Kahakai Road, south of Royal Kona Resort and north of Kona Reef Condominium, Pua‘a 3rd, North Kona, Hawai‘i, TMK: 7-5-018:011. BEAUDET: Second item on the agenda for today is Applicant Diamond Resorts International, Inc., or formerly Pacific Monarch Resorts, Inc. This is for an amendment to Condition No. 2 of Special Management Area Use Permit No. 388. DARROW: Thank you, Mr. Chairman. And I have to apologize; I forgot to, I don’t know, I might have missed this, but want to welcome our new commissioner. Commissioner Kaholo, welcome, thank you. We appreciate everyone taking time to work with us on this. Thank you. With that, we’ll go into our next application. This is Diamond Resorts International, Inc. They are requesting an amendment to SMA, or Special Management Area Use Permit No. 388. The location of this application is within the North Kona District. More specifically, we are looking in the Kailua-Kona area, Kailua Bay. We have King Kam for reference, we have Ali‘i Drive running along the ocean, and we have Queen Ka‘ahumanu Highway also running parallel with Ali‘i Drive. The subject property is identified with a black outline near the lower portion of the map. As we zoom in, again we will be able to show the County zonings of the properties in the area. Again, for reference we have Ali‘i Drive running through the middle of the map, and we also have Kahakai Road that borders the subject property. The different colors on the map represent the zoning; just for reference the brown colors represent Multiple-Family 4,000 square feet, which allows condominiums and apartments; the purple color represents the V, represents Resort-Hotel zoning; and believe it or not, we have a little bit of Residential out there on the point; and then we have 1 EXHIBIT B some Commercial zoning in the light pink. This is the General Plan Land Use Pattern Allocation Guide Map for the property; the property is designated within the Resort Node; the orange color that you see mauka is Medium Density Urban, which allows for more commercial-type activities, as well as some multiple-family; the green along the ocean represents Open, which is mainly for the shoreline for the particular area. The applicant is requesting an amendment for a five-year time extension to comply with Condition 2, which is the condition to complete construction, or the timeline for that, of SMA Use Permit No. 388. This was originally approved to allow the development of a 48-unit commercial condominium complex and related improvements on approximately 76,739 square feet of land. The applicant cites the reasons for the delay, since the last approval of the previous time extension, because of the local and national economies entering into a catastrophic cycle of decline. Between 2009 and 2010, the existing building permits received final inspections for the electrical rough-in, foundation and retaining walls. Additionally, there have been improvements costing several million dollars put in place, including a twelve-inch waterline in Walua Road dedicated to the County and an eight-inch waterline installed on the property. Just for reference, this is elevation – rather than floor plans, I’ll just put elevation. This is proposed to be a four-story commercial condominium type project. This is what is called the Kohala Elevation, so I’m gathering this as if we are looking towards Kohala. We have the Mauka Elevation on the top, and we have the Makai Elevation on the bottom. This is an aerial photo. The subject property is this particular property here. So as you can see, there is a foundation that has been constructed. And we’ll show some clearer pictures there. Again, for reference we have Kahakai Road and Ali‘i Drive that borders the property. This is the Royal Kona Resort that you might be familiar with, as well as I believe that’s the Kona Searidge project. This is on Ali‘i Drive, looking north with the subject property on the left, so makai would be on the left. This is the foundation of the project that’s been put in place at this time, and as the applicant has stated in the application, rough-in has been finaled already for electrical, as well as the foundation and retaining walls. This is looking makai on Kahakai Road with the subject property on the right. This is a little further down; again, you can see the extensive improvements that have been done up to this time. This is on Kahakai Road, a little, if you were, well, this is looking south, so this is on Kahakai Road, Kahakai will go mauka up there, so this is the lower portion of the subject property, so you can see the retaining walls, as well as construction of the development. The Planning Director is recommending that the Planning Commission approve the time extension request, with conditions. With that, that concludes our presentation. We have not received any correspondence since the Background and Recommendation was sent out to the Commissioners. Thank you. BEAUDET: Thank you, Jeff. Commissioners, any questions of staff? Thank you. With that, I would like the applicant or their representative to please come forward. Please raise your right hand. Do you swear or affirm to tell the truth on this matter now before the Planning Commission? FOULK: Yes, I do. BEAUDET: Please state your name and where you reside, and proceed with your -. FOULK: Dr. William C. Foulk, 75-5888 Ali‘i Drive, B3. I live next door to the project actually. 2 EXHIBIT B BEAUDET: Did you receive the Planning Director’s background report and recommendations of the report? FOULK: Yes, I did. BEAUDET: Do you agree with the Director’s recommendations and its conditions of approval? FOULK: Yes, I do. BEAUDET: Thank you. Would you like to comment on your application? FOULK: There is not a lot to say here than we all recognize that where the economy went the last five years or so. I would like to say that these guys have maintained the dialogue, they’ve finished the permits that were open, and they have opened the dialogue with the civil engineer to finalize the permits for Kahakai Road and they’ve come to an agreement with Ki Emler here on the final drawings for that. So it’s our hope that we’ll be able to put Kahakai Road out to bid within a month or so. And, so they are actively pushing forward on these conditions as best as they can. BEAUDET: Where do you see your project in five years? FOULK: Well, I would really like to see it built in three. That’s what I, as a neighbor, I mean I live next door, and I get a lot of flak from my neighbors because it’s been sitting there vacant for a long time. And I lived in within 300 meters of there for 35 years, so that’s my neighborhood, my kids grew up there, my grandkids live there. It looks like hell, and I would like to see it done the way it’s supposed to be done, supposed to be landscaped. It’s been approved by the Kailua Village Design Commission. It’s a, yeah, I would really like to see it done. BEAUDET: Commissioners, any questions of the applicant? NOBRIGA: How many years has this cement foundation been sitting in the middle of the Village? FOULK: Well, the foundation has been sitting there for, it was completed, it was in this state in 2008, maybe early 2009. This SMA permit was issued in the 90’s to Blue Hawai‘i, I think, was the company, with the specific intention of raising the property value and flipping it. Pacific Monarch Resorts purchased the property, spent years consolidating the parcels in Land Court because it hadn’t been consolidated in Land Court, just the Regular System. They got through that. It was just one hurdle, and it was, whatever, it doesn’t matter, but they proceeded to try and get it built. I have building permits for the whole project on hand, so really the only permits that are lacking are Kahakai roadway. NOBRIGA: Thank you. BEAUDET: So the expectation is to develop Kahakai Road within 2014? FOULK: That’s what we are going to try. We are going to get numbers on it, see what it is, and try and get the sidewalks and the roadway part done because that’s one of the conditions for this permit. 3 EXHIBIT B BEAUDET: Is that sidewalk, curb and gutter -. FOULK: Sidewalk, curb and gutter, drywells, roadway, intersection improvements, the whole nine yards, yeah. BEAUDET: Is the intention to wrap around on the makai side of the development area as well? FOULK: It goes around part of the makai side, yes. BEAUDET: Thank you. Any more questions or comments of our commissioners? COMMAND: Mr. Chairman? Mr. Foulk, when was the last time that this project was run before the KVDC, the Kailua Village Design Commission? FOULK: That was a long time ago. I think, I’d have to say that I put this before the KVDC in 2004 maybe, somewhere around there, about ten years ago. COMMAND: I would suggest that you go ahead and just update them. FOULK: Sure, yeah. COMMAND: And just let them know what you are going to do so they are not blindsided, so that they are not, I mean, it’s been a long time since this project has, you know -. FOULK: Yeah, and it’s a new panel and stuff, you know -. COMMAND: Right, right. FOULK: So they’ve got new thoughts. COMMAND: And the only other thing I would say, and I think we talked about this before, was that if you look at Condition 2, it says, “Construction of the proposed development shall be completed within 5 years from the effective date of this second amendment”; “second” is underlined, and it’s underlined for a reason. And we are hoping that you will follow through on this project, because the first extension was administrative, the second one was before the Planning Commission, and all other ones are, you know, you are at the mercy of the Planning Commission. So we certainly hope that you will follow through. FOULK: Yeah -. COMMAND: Or your clients will. FOULK: I don’t enjoy coming in here at all. COMMAND: Yeah, I know you don’t, but. FOULK: I mean nothing personal, but, yeah. 4 EXHIBIT B COMMAND: Thank you. BEAUDET: Okay. Thank you for your comments and for answering the questions of the Commission. FOULK: Thank you. BEAUDET: You may take your seat. No one has signed in for comment on the application, so I’ll ask one last time if there is anyone in the audience who wishes to speak on this application. Commissioners, any other comments or questions of staff? Thank you. With that, I would like to ask for a motion. KEAWEKANE: Excuse me, can I say something? BEAUDET: Sure. You have to fill out the form, just sign in first. Please raise your right hand. Do you swear or affirm to tell the truth on this matter now before the Planning Commission? KEAWEKANE: Yes. BEAUDET: Please state your name and area you reside in, and speak directly into the microphone. KEAWEKANE: My name is Ainsley Keawekane. I’m actually representing Hale Kona Kai, which we are on the makai side of the property. So we are just kind of wondering like if this is approved by you guys, how soon will they start construction in that area. And, you know, I know it’s five years. Because our property is a vacation rental type of deal, we would want to let people know as far as what’s happening next door. I guess, you know, I’ve only been there since the middle of December, and they’ve taken care of a lot of the problems that they had; because there are a lot of homeless sleeping on the property, and we had the police come by and, you know, get them out, and they gated up everything and fenced up everything, and it’s good because it hasn’t been a problem in the last month. For the most part, I think we just want to find out when they are going to start so that we can let our tenants know that are coming from Canada, from Alaska, you know; when they want to stay at our property, that they are aware of what they are stepping into, because we know if they come and they see all this construction going on and they weren’t aware of it, then, you know, they are going to ask for their money back. So we just kind of want a heads-up as far as when everything is going to start up and, so we can warn everybody. BEAUDET: As far as the Commission’s understanding goes is that this extension, and as the Director had pointed out to Condition No. 2, the condition specifically states that the proposed development would be completed within five years. Okay, so that is the timeline that we are establishing for the developer. But if the applicant would like to come up and address the question. And just to add to that, I would like to make the suggestion that maybe the developer start with open communication with neighboring properties and just be a little bit more collaborative as we move into this next five-year term. FOULK: Yeah, that’s what I was going to say is what we’ll do is we’ll trade information with these guys, and then just keep them apprised what the construction schedule is. We are good neighbors. And so I will just trade information right here before you leave. And, sure, you know, that’s a good 5 EXHIBIT B point, I mean, the building I live in is all vacation rentals, and nobody wants to rent a place and then have a jackhammer running next door and, you know, that’s fair’s fair, so. BEAUDET: Thank you. Any more comments or questions? KEAWEKANE: Yeah, no, no, it’s just because our property sits on the makai side of Kahakai Road, so if there is a lot of construction that’s going to be happening on that road, then our people won’t have a lot of access to our building. So, you know, just scheduling-wise that, you know, we are just trying to find out the schedule-wise. But I’ll get his info, and then he can get mine and also my board of directors’ for the property. Thank you. BEAUDET: Thank you. COMMAND: Mr. Chairman, I would just like to ask Mr. Foulk and Mr. Kinsey to also be very vigilant against graffiti. There was a very interesting mural that was painted there, yeah, and I didn’t know how to take that, but. And actually it was painted over very quickly, and I think the community appreciated that. FOULK: Somebody, some painter drove by, went back home, got his own paint, and came back and painted over the mural. That was the coolest thing ever. The community just (inaudible). BEAUDET: Would there be anybody else from the audience who would like the opportunity to speak? Okay, with that, I would like to close public testimony. And, Commissioners, if I could ask for a motion. WHITTEMORE: Mr. Chair, I would like to make a motion that the application for an amendment of Special Management Area Use Permit No. 388 be approved per the Planning Director’s recommendations. BEAUDET: Thank you. May I ask for a second? HICKCOX: I’ll second. BEAUDET: It has been moved by Commissioner Whittemore and seconded by Commissioner Hickcox for the approval of the amendment to Special Management Are Use Permit 388. DARROW: Thank you, Mr. Chairman. With that, we’ll take the roll call. Commissioner Whittemore? WHITTEMORE: Aye. DARROW: Commissioner Hickcox? HICKCOX: Aye. DARROW: Commissioner Giffin? GIFFIN: Aye. 6 EXHIBIT B DARROW: Commissioner Kaholo? KAHOLO: Aye. DARROW: Commissioner Nobriga? NOBRIGA: Aye. DARROW: And Mr. Chairman? BEAUDET: Aye. DARROW: The motion passes, six to zero. BEAUDET: Thank you, Commissioners and staff. Thank you, Applicant. You will be notified of the Commission’s decision in writing. The discussion ended at 10:45 a.m. Respectfully submitted, Noriko Sauer, Secretary Leeward Planning Commission 7 EXHIBIT B