LIHU‘E — Without an explanation and with a comment short of an apology, the owner of Kealia Properties LLC withdrew his request to extend two subdivision permits to more than 2,000 acres of prime agricultural land across Kealia Beach. “Please
LIHU‘E — Without an explanation and with a comment short of an apology, the owner of Kealia Properties LLC withdrew his request to extend two subdivision permits to more than 2,000 acres of prime agricultural land across Kealia Beach.
“Please accept this letter as my withdrawal of our request to extend the (Makee and Kumukumu) subdivisions,” Kealia Properties owner Peter Nolan wrote in a letter dated Dec. 6, and addressed to the Kaua‘i Planning Commission.
“I appreciate all the time and effort the commission and Planning Department staff have put into their deliberations on this matter, but have decided not to proceed with the project, as proposed, at this time,” Nolan states.
And that was all he wrote.
On Sept. 11, Kealia Properties’ representatives went before the commission to ask for an unprecedented eight-year extension to subdivision permits that had been granted Sept. 11, 2007, to two ag lots totaling 2,029 acres.
If granted, the extension would effectively exempt the developers to comply with laws passed in the last five years and with laws yet to be passed in the next eight years.
Since the original permits have been granted, new laws have changed density limits and affordable housing requirements.
Without the extension Kealia Properties will likely lose the grandfathering status and no longer qualify for 188 condominium property regime units, each one allowed to have a “farm dwelling.” If the developer reapplies, new laws would limit the maximum number of CPR units to 115.
Additionally, a law passed months after the original permits were granted would require the developer to build 56 affordable housing units. The permits that expired Sept. 11 do not have this requirement, but the developer had agreed to donate two lots to the county to build affordable units.
The commission had deferred the request three times; first to Oct. 9, then to Nov. 13 and finally to Dec. 11.
Kealia Properties gained the support of many influential members of the Kealia community by offering up to $1.35 million in area improvements — up to $500,000 to the rodeo arena, up to $500,000 to a poi mill cooperative and up to $350,000 to restore an old building where a private business operates. The developers also took one of the lots previously offered to the county for affordable housing, and re-designated it to become a park.
The developers, however, failed to convince planning commissioners, who seemed reluctant to approve an unprecedented eight-year extension based on benefits to private entities.
The Kaua‘i Planning Department recommended the commission to deny the request, which was only voted for deferral in the three times it was up for action.
The developers had also asked the county to assume a first mortgage, replacing a surety bond required by law. Planning Department Director Michael Dahilig said during the Sept. 11 meeting he didn’t believe this proposal was legal, and that it would not provide high liquidity, exposing the county to a substantial financial loss in case of foreclosure.
Visit www.kauai.gov/planning and click on “Planning Commission” to download the agenda for the commission’s meeting Tuesday.
