Support needed for development control by Walter Lewis It is instructive to compare Kaua‘i as it was when it became a state about 50 years ago with its position today. In 1959, the principal source of revenue for the Kauaian
Support needed for development control
by Walter Lewis
It is instructive to compare Kaua‘i as it was when it became a state about 50 years ago with its position today. In 1959, the principal source of revenue for the Kauaian economy was from sugar production. Today the expenditures by tourists are the major dynamic for the island economy and investments by visitors are shaping the values of Kaua‘i real estate.
A harbinger of the future was the purchase in 1968 by a Denver firm of the about 10,000 acres of the Princeville Ranch. Development started in Princeville Phase I which now consists of 700 single-family residences, nearly 2000 condos now or almost completed and a 250-room hotel. Only about 400 of these units are occupied by island residents, so Princeville is mainly a visitor community. Similar patterns are emerging elsewhere on the island. Let’s review these changes in some different scenarios.
On Kaua‘i the bulk of the privately owned properties, i.e. those not owned by state or federal governments, are zoned for agriculture. These are the open spaces that provide so much of Kaua‘i’s scenic beauty. It used to be that the value of agricultural land was determined by the amount of the revenue that could be obtained from farming it.
That has largely ceased to be the situation. Today the value of ag land relates to the potential it has for subdivision into sites for upscale estates. When the subdivisions or CPRs occur the purchasers are nearly all non-residents seeking gracious second homes. The sites involved are priced at levels that are not affordable by the typical citizen of Kaua‘i. Where ag land is valued at $50,000 an acre and up the economics of what it can produce for farm use is largely irrelevant. There is a steady and growing exodus of land from being employed for agricultural use to subdivision into properties where farming is only nominal. Mayor Baptiste has recently proposed a moratorium on such subdivisions until a study on their effect can be completed and appropriate measures adopted. Sadly, one council member has already indicated that he opposes the moratorium because it would cause litigation. Maybe that is a possibility, but the view masks a pro-development bias. The Mayor’s proposal is a thoughtful one and public support for its concepts with our Planning Commission where the measure now languishes and the County Council would be welcome.
Another instance where tourism is destabilizing Kaua‘i is related to the growth in tourist accommodations — hotels, time shares and vacation rentals. Since 2000. over 10,000 units have been proposed, are in a stage of completion or are now complete. When no impact fees have been enacted and developers are not meeting the infrastructure costs their projects require, our facilities have become badly stretched. This proliferation of housing for our visitors needs to be controlled. We cannot afford to oppose the tourism that our economy needs, but we can and should seek to regulate its growth. Elsewhere annual percentage limitations on new accommodations have been adopted and Kaua‘i should give favorable consideration to such a measure.
In 1982 a county ordinance was adopted that divided the county in two parts — one — visitor destination areas (VDAs) Princeville, Kapa‘a, Lihu‘e and Po‘ipu and two — the rest of the island. It was intended that accommodations for visitors would be limited to sites in the VDA segment of Kaua‘i, but an inept legislative lapse failed to preclude the use of single family dwellings for vacation rentals in the non-VDA segment. The Council has been considering for several months a bill that would stop proliferation of such rentals. Opponents of the bill — realtors and non residents — have contended in the case of sites on land zoned for agriculture income from vacation rentals is necessary to supplement amounts derived from crops. That is a specious argument. Ag lands are intended for use in furtherance of its zoning. The problem is that the value of these properties has become so inflated that the investment in them cannot be justified by only income from farm usage. Fertile lands on the mainland which generate crop values in excess of those possible here can be acquired for a small fraction of the amounts required on Kaua‘i. Recently an organization has been formed on Kaua‘i to urge legislation and other action to control development not consistent with the best interests of our island citizens. It is called the Kaua‘i Coalition for Responsible Development and it may be reached by phone at 822 9899 or by e-mail at Kaua‘iCoalition@yahoo.com. I urge readers who are concerned about the matters I have mentioned to wake up to what is happening and to contact this group.
• Walter Lewis is a resident of Princeville. He writes a bi-monthly column.
