Major Kahaluu development pulled

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KAILUA-KONA — A plan to build a 306-unit condominium in Kahaluu died Wednesday after the developer withdrew its application for a needed permit.

KAILUA-KONA — A plan to build a 306-unit condominium in Kahaluu died Wednesday after the developer withdrew its application for a needed permit.

Ocean Villas at Kahaluu Bay LLC filed its official withdrawal of their special management area permit application with the county’s planning department, bringing to an end all efforts to develop the 42-acre parcel.

“Applicant Ocean Villas at Kahaluu Bay LLC hereby withdraws its special management area application,” wrote Stephen Menezes, attorney for the developer, in the one-sentence filing.

The filing didn’t address the rationale behind the withdrawal.

Ocean Villas spokesman Chris Lau said in a statement included in a Kamehameha Schools release that “Ocean Villas is very appreciative of the Hawaii County Planning Department’s consideration of the SMA application and the many courtesies extended to it by (Kamehameha Investment Corp) during the pendency of the purchase agreement for Land Area 26.”

“We also thank members of the community who participated in the public hearings and wish them well on their future endeavors,” he added.

The development proposal involved a 306-unit condominium to be built on a piece of property owned by Kamehameha Investment Corp. and is zoned for resort, multi-family residential and single-family residential uses.

An environmental assessment was completed because most of the project site is within the Kahaluu Historic District, which is included on the National Register of Historic Places.

The development faced strong opposition from area residents, who raised concern about the impact development could have on historically and culturally significant sites as well as local infrastructure and natural resources.

Maps of the proposed project area indicated specific preservation areas for historical sites and the environmental assessment ultimately concluded that the project “will not have significant environmental effects.”

The assessment indicated 58 sites consisting of 247 features, such as platform mounds, a burial crypt and other sites. While they were all deemed significant, only some, such as the Great Wall of Kuakini and any identified as burials or possible burials, were slated for preservation.

In April 2016, the Leeward Planning Commission granted Kahaluu resident and project opponent Simmy McMichael’s petition for a contested case hearing.

Public hearings for that contested case took place during a span of three days in a two-month period. During those hearings, McMichael questioned experts whose research was cited in the environmental assessment and also included hours of public statements from Kahaluu residents and others with connections to the area.

McMichael said Wednesday that she was ecstatic over the developer’s decision to withdraw the application, adding that she held out hopes that the development could be stopped.

“When it’s right, when it’s pono, how can you go wrong?” she asked.

McMichael said she hopes the land parcel is preserved and restored as an agricultural landscape with an emphasis on educating residents and visitors about traditional practices such as hula with a museum at the top of the property.

“I want it preserved for all of the keiki, the now and the future generations,” she said.

Ka‘eo Duarte, Kamehameha Schools vice president of community engagement and resources, said in a statement that they respected the developer’s decision “and we will accept kuleana for the land.”

“We look forward to working with lineal descendants and other community stewards who have been active at that site for years to determine appropriate treatment for the wahi kupuna (place of ancestors) on the property.”

Duarte added that their priority continues to be the removal of the Keauhou Beach Hotel in Kahaluu makai of Alii Drive as well as the restoration and interpretation of historical sites in that area.

Kamehameha Schools spokesman Kekoa Paulsen said they are about 30 percent finished with the soft demolition, which involves removal of the structure’s interior.

Paulsen referred questions about the developer’s withdrawal of their application to the developer, Ocean Villas at Kahaluu Bay LLC.

A planning consultant for the developer said Wednesday that they would have no further comment beyond what was in the initial statement.