Kauai Lagoons seeks to pull permit request

The Kaua’i County Planning Commission plans to today take up a request by the owners of Kauai Lagoons Resort Company Ltd. to withdraw its request for a proposed coastline hotel by the Lihue Airport.

Kauai Lagoons initially sought the permits for its “Running Waters” hotel, but because the developer received approval this year from the Kaua’i County Council and the Kaua’i County Planning Commission to revise its master plan for its proposed 452-acre project, including moving the hotel westward away from the airport, Kauai Lagoon no longer needs the permits.

At its 9 a.m. meeting Tuesday, the commission plans to address Kauai Lagoons’ proposal to rescind its request for a Special Management Area Use Permit, a special, a project development use permit and a Class IV Zoning Permit.

As part of its approval of the zoning amendment, the council required Kauai Lagoons to withdraw its permit requests.

But if Kauai Lagoons moves forward with its development plans for the hotel, it will have come back to the commission for similar permits, a county planner said.

Whether the 452-acre proposal is developed is up in the air.

Citing a continuing economic downturn in Japan, Kauai Lagoons officials announced this month the company was forced to sell the property.

In a loan-restructuring move, representatives of parent company Shinwa Golf Group and Shinwa Golf Hawaii reportedly have recreantly agreed to allow a Japan government agency to sell all its Hawai’i assets.

The land includes the 18-hole Kiele and 18-hole Mokihana golf courses at Kauai Lagoons and the hotel site.

Kauai Lagoons announced it will continue with its resort operations, including the two golf course, until the sale is completed, anticipated to be done next year.

In other matters, the council will consider again a Kaua’i County Council bill to amend a law to keep 650 acres at the Princeville Resort in open space permanently.

At a previous public hearing, property owners contended they bought their homes because of representations made by Eagle County Development Corporation and Consolidated Oil & Gas Inc., the past owner of the resort, and Princeville Crop, that the property would not be developed.

Representatives for the resort have argued that implementation of the bill would thwart Princeville’s development options for the property and would result in the “taking” of property by government without compensation.

The property includes a 320-acre golf course and 330 acres of gullies, flood zones and valleys.

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