Judge says Hokulia
project violates state law

The court rules that the project
is an urban development
on agricultural land

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By Rod Thompson
rthompson@starbulletin.com

KEALAKEKUA, Hawaii >> Kona Circuit Judge Ronald Ibarra ruled yesterday that the 1,550-acre Hokulia luxury residential project south of Kailua-Kona violates state law because it is an urban development in an agricultural district.

The judge's ruling jeopardizes the completion of the project, said the Native Hawaiian Legal Corp., which opposed the project on behalf of the Protect Keopuka Ohana. The project is also opposed by four non-Hawaiian users of the ocean fronting the property, including Jack Kelly, lead plaintiff in the case.

The project involves a golf course, a possible lodge and 730 roughly 1-acre lots, which would sell for up to $2.6 million each, the Legal Corp. said.

The completed project was estimated to bring in $643 million.

The company has sold 145 lots, the future of which is now in doubt.

The 5-mile Mamalahoa Bypass Highway is also jeopardized. The bypass, already under construction, is to be built by Hokulia developer 1250 Oceanside Partners to relieve major traffic congestion in the area.

"It's too early for me to speculate on the impact," said Hokulia President John De Fries.

De Fries said he has asked to meet with Judge Ibarra to have the ruling clarified.

Ibarra's ruling says the land in question is designated agricultural by the state. But the conditions, which lot buyers agree to, prevent them from using the land for agriculture without approval of the Hokulia Community Association. The conditions also say that none of the income from agriculture would go to individual lot owners; all would go to the association. The "totality of circumstances" show the land will not be used for agriculture, which violates the law, the judge ruled.

All of this was done with county permits, rather than applying to the state to change the land designation to urban, Ibarra ruled.

Ibarra also said that county approval of a 14.854-acre parcel for an 80-unit members lodge, just under a 15-acre cutoff for state jurisdiction, is illegal spot zoning.

The developer has said the company has "vested rights," meaning the project cannot be stopped, but Legal Corp. attorney Alan Murakami said there are no such rights if they were obtained illegally.