The state Land Use Commission will hear a motion today asking the panel to reconsider its denial of a request by developers for more time to try to redistrict some land in the Kaloko Heights project in Kailua-Kona.
The meeting is scheduled for 10 a.m. at the West Hawaii Civic Center Community Meeting Hale, Building C, in Kailua-Kona.
The petitioners — Redwood Capital Finance Co. (RCFC) Kaloko Heights LLC and others — were denied in an Aug. 5 decision by the LUC a 10-year extension to apply for the redistricting, which is subject to numerous conditions to be met by the developers.
It was the sixth request by developers for an extension of time to meet the criteria to have the land redistricted from agricultural to urban use for the long-planned project.
The LUC originally approved the redistricting petition by the original development entity, Y-O Limited Partnership, on Jan. 19, 1983. The lead attorney for the current petitioners, William W.L. Yuen, was then the LUC chairman.
That approval moved 213 acres of land into the urban land use district and laid the foundation for the planned first phase of two for the 407-acre, 1,400-home project.
That phase was to include a gas station, mini-mart and laundromat along a roadway to be built that would separate the two phases. The road, which has been built, is now Hina Lani Street.
Much has changed since then.
The original plans called for cesspools, which are no longer allowed, for the entire development. The land has been sold several times, and there have been five time extensions granted to the numerous owners, with the most recent expiring early this year.
In addition to road construction, conditions that have been met include more than $9 million to the Department of Water Supply to develop a well, more than $3 million for a 1-million gallon water reservoir, two miles of sewer lines built and 10.75 acres of land donated to the nonprofit Hawaii Island Community Development Corp. for affordable housing.
Ground was broken in April on the affordable housing project. But some conditions remain unmet.
The LUC’s reasons for denial of a sixth extension include the lack of an environmental review and updated archaeological and cultural impact surveys for the project.
In its motion, Redwood Capital Finance Co., or RCFC, argues its request for a time extension doesn’t require an environmental assessment under the Hawaii Environmental Policy Act, and that “treatment of wastewater at the Kealakehe Wastewater Treatment Plant will assure that groundwater in the vicinity of the project is not adversely affected by the project.”
The motion also noted the county Department of Environmental Management concluded that an EA for the affordable housing project covered the construction of the wastewater transmission line along the Ane Keohokalole Highway.
RCFC’s motion also argued the same EA “determined that the construction of the sewer line improvements will not have an adverse impact on any environmental resources, including but not limited to archaeological/cultural sites, endangered species or any other ecosystem.”
In a 10-page document, the state Office of Planning and Sustainable Development supported approval of RCFC’s request for reconsideration by the LUC. However, the OPSD recommended a three-year extension of the time to apply for redistricting, instead of the requested 10 — from Jan. 23, 2023 to Jan. 20, 2026.
“The OPSD agrees with the petitioner that a motion to extend a time deadline is not an action triggering the need for (an environmental) review,” said Mary Alice Evans, OPSD interim director. “In fact, the LUC has repeatedly considered and approved extensions of time deadlines for this docket and others without requiring … review.”
OPSD also opined that “the archaeological and cultural impact concerns have been adequately addressed for both the affordable housing and Kaloko Heights Phase I projects.”
The only written testimony in opposition to RCFC’s motion was by County Councilman Holeka Inaba, who said his comments are “on behalf of both myself and constituents of Council District 8 in North Kona.”
“It has been approximately 40 years since the original approval by the Land Use Commission. Another 10-year extension is not necessary,” Inaba said.
“I believe that the Land Use Commission should uphold its decision to deny the extension of time to 2033. However, if changes are to be made, it is my position that no extension should be approved for further than three years, as is recommended by the state Office of Planning and Sustainable Development.”
Email John Burnett at jburnett@hawaiitribune-herald.com.
