LIHU‘E — Only a handful of people were present early Tuesday morning at a Kaua‘i Planning Commission meeting to witness the nail in the coffin on Kealiakealanani Agriculture Subdivision, a project that five years ago promised to become a model
LIHU‘E — Only a handful of people were present early Tuesday morning at a Kaua‘i Planning Commission meeting to witness the nail in the coffin on Kealiakealanani Agriculture Subdivision, a project that five years ago promised to become a model ag community, with nearly 200 ag lots and a diversified crop production including taro, tea and cacao.
“I wanted to set the commission’s mind at ease that we are in fact, not only withdrawing the subdivision, but intend to cooperate with the mechanics that (Planning Director Mike Dahilig) outlined — whatever is legally necessary to rescind the subdivision, we are on board with it,” said Greg Kamm, representing Kealia Properties LLC.
After three deferrals in the last three months, commissioners on Tuesday accepted a request from Kealia Properties owner Peter Nolan to withdraw his application to extend subdivision permits to two ag lots totaling 2,029 acres of prime ag lands directly across from Kealia Beach, at the north end of Kapa‘a.
The original permits, granted Sept. 11, 2007, allowed those two lots to be ultimately sliced into 188 Condominium Property Regime units, each with a “farm dwelling” on it.
“Please accept this letter as my withdrawal of our request to extend the (Kealia Mauka) subdivisions,” Nolan wrote in a letter that was addressed to the commission and read by Dahilig at the meeting.
Without being acted upon, the permits were supposed to have expired three months ago. But Kealia Properties asked the commission for an unprecedented eight-year extension to the permits.
“We have currently been in a deferral mode based on a request that was taken up on initially Sept. 11; and subsequently it was recommended by the commission that the (Planning) Department continue to iron out issues that arose both at that meeting and subsequent to that,” said Dahilig, adding that given the process of discussions, Nolan decided to withdraw his request.
The next step will include the developer rescinding the permits, which will revert the property back to two large ag lots. Dahilig said the landowner has been “really cooperative” and willing to discuss matters.
Deputy County Attorney Ian Jung said this was one the first times in which a final subdivision has to be rescinded, and the issue is how to properly do it.
“The first step is withdrawing the request; and the second step is rescinding the actual subdivision,” Jung said.
From 2 to 188
County law allows a one-time subdivision of ag lands, but a state law allows further subdivision of the land into CPR units, which in the case of Kealiakealanani would result in a total of 188 CPR units, each with a farm dwelling on it, out of the two initial lots.
Because the permits were granted five years ago, the developer was exempted from complying with laws passed since then. If the request for an eight-year extension had been granted, the developer would also not be forced to comply with laws passed in the next eight years.
Without an extension, if the developer reapplies for a new permit, new laws will kick in. Under current law, the final density allowed is up to 114 CPR units, potentially reducing financial gains from sales.
Additionally, new laws passed since the original permits were granted would force the developer to build 54 affordable housing units, adding to the cost of the project.
Despite being such a large-scale subdivision that had its agricultural aspect questioned by many of those who opposed it, the project had support from many in the Kealia community, including some farmers and Native Hawaiians.
At the Sept. 11 meeting, several Kealia community members came forward in a show of support for the project. Nolan had offered a 14.7-acre park and up to $1.35 million in area improvements before laying out any infrastructure in the area. The improvements included up to $500,000 to a rodeo, up to $500,000 to a poi mill cooperative and up to $350,000 to restore the historic building housing Kealia Post Office and a private store.
But there were a couple of questionable issues raised by county officials and other members of the public. One was the legality of bargaining permit-granting with improvements to the private sector, even though such improvements would likely benefit the community in general.
The other issue was that Kealia Properties was asking the county to take up a first mortgage to replace of surety bonds required by law. The surety bonds is a guarantee that the developer would lay out infrastructure.
Dahilig said in the past that this was financially dangerous for the county, and likely illegal.
Councilwoman JoAnn Yukimura said at the Sept. 11 meeting that the first mortgage would probably have to be approved by the Kaua‘i County Council.
On Nov. 28, the council met at executive session, held behind closed doors, to get a briefing from the Office of the County Attorney on matters regarding Kealiakealanani, including addressing questions related to the first-mortgage proposal.
• Léo Azambuja, staff writer. can be reached at 245-3681 (ext. 252) or lazambuja@ thegardenisland.com.
