A draft environmental assessment for the Lili‘uokalani Trust Makalapua Project details plans for a mixed residential/hotel/commercial development on land adjacent to the Old Kona Industrial, Kona Commons and Old Kona Airport Park.
The proposed development, called the Makalapua Project District, would be on 69.5 acres of land and is not anticipated to have a significant impact on the environment, according to the recently released draft EA.
According to the document, the project is aimed at creating a vibrant and sustainable mixed-use community organized around an interconnected street network and will include approximately 600 residential units, two hotels comprising 150 hotel rooms, 220,900 square feet of commercial use, and a variety of open space features.
“The Project District will be organized around an interconnected, street network where homes, businesses, and entertainment are provided to promote a diverse experience for residents and visitors,” the DEA reads.
“Lili‘uokalani Trust is pleased to be moving forward with the Makalapua Project District as it will provide funding for LT’s programs and services that benefit the most vulnerable Native Hawaiian youth,” said Ellise Morimoto, director of communications and marketing for the nonprofit trust. “With housing options targeted to people already living or working in Kona, economic opportunities for job creation, and a vibrant central gathering place for Kona, the project supports LT’s vision for a thriving West Hawaii.”
The majority of the project is designated urban by the State Land Use Commission, with 14.9 acres classified as agricultural. Lili‘uokalani Trust will be requesting that portion be changed to urban. The majority of the project site is also within the Special Management Area for the county, so a SMA use permit application also will be submitted.
The project area is currently mostly vacant and undeveloped with the exception of the former Swing Zone sports facility on Makala Boulevard, the BMW car dealership on Loloku Street, temporary storage and staging areas on parcels located along Loloku Street, and two light industrial warehouses and businesses on Kaiwi Street mauka of Hawaii Gas.
The existing BMW car dealership will remain and be will be integrated into the proposed new development, while the former Swing Zone, temporary storage and staging areas along Loloku Street, and light industrial warehouses and businesses on Kaiwi Street will be redeveloped. Pawai Place would be extended north where the warehouses now stand.
A potential realignment of Makala Boulevard from Ma‘a Way to Kuakini Highway is being considered to align Makala Boulevard with the entrance to Old Kona Airport Park.
The proposed project is bordered by the Kona Commons Shopping Center to the northeast, vacant lands to the north, the existing Old Kona Industrial Area to the east, and Old Kona Airport Park to the south and west.
An existing historic trail that likely connected the historic Mamalahoa Trail with a shoreline trail would be preserved, as well as other culturally sensitive sites.
This is not the first attempt at building out the area. A 1990 land plan included centers for urban activity, government, regional shopping, professional practices, a regional-serving hospital, a business park and light industrial area, a business-serving hotel complex, a college campus for West Hawaii, and a historic preserve area. An environmental impact statement was prepared for the 1990 land plan and was accepted by the state LUC.
The trust has since revised its plan. The new land plan proposes a range of mixed-housing aimed at different levels of affordability.
An earlier iteration of the Makalapua Project District was developed in 2019 and called for a larger commercial use component and fewer residential units. Since the release of the 2019 plan, however, Lili‘uokalani Trust has determined that prioritizing residential uses over commercial uses would better meet the needs of the community.
The proposed project will have an anticipated development timeframe of approximately 10 years. The total estimated infrastructure construction cost for the development is approximately $60 million, while building construction is estimated at $400 million.
According to the trust, the project district is expected to generate about $146.6 million per year in revenue from its various components.
The trust estimates the project will create approximately 225 full-time jobs, including employment at commercial and residential spaces and hotels.
Hawaii County Council member Rebecca Villegas represents the proposed development area.
“While I have yet to review the (draft EA) in its entirety, I do have some reservations about the potential impacts a project of this size will bring to our village. I am grateful their plans have transitioned from heavy commercial and retail to more housing focused,” she said.
“However, I remain skeptical of the potential for our local people to be able to afford what those units will cost. We need workforce housing that’s authentically affordable for the people that already live here. Our infrastructure is at a tipping point and already is exceeding its capacity to support the health and safety of our existing community.”