Big Isle land lease
to fund homesteads
The state Department of Hawaiian Home Lands signed an agreement yesterday to lease 200 acres of Big Island land to developers and generate revenue that will support its homestead community.
The agreement was signed with Kona Development Group LLC, a limited partnership with Menehune Development Co. Inc. and Jacoby Development Inc.
Jacoby, an Atlanta-based development company, plans to create a master-planned, mixed-use community called Kona Kai Ola (Kona, the Living Sea) on land at Kealakehe in North Kona. Construction could begin next year.
Revenue generated from the commercial property will go directly to the Department of Hawaiian Home Lands to help offset the loss of annual $30 million payments the department receives from the state. Those payments end in 2013.
The lease is slated to generate $6.5 million in revenue during the next decade and $64 million during the 65-year lease term.
The property -- adjacent to the Honokahau Small Boat Harbor and bordered by Queen Kaahumanu Highway and Kealakehe Parkway -- might include a golf course and industrial, resort, retail and commercial development.Micah Kane, director of the Department of Hawaiian Home Lands, said the development is also expected to create more jobs for Hawaiians, which in turn will help them qualify for homestead land.
The lease serves as a steppingstone for the department to create more master-planned communities. Previously, Kane said the state created "pocket housing developments" for Hawaiian homesteaders throughout the state.
"This is the first time that the department has attempted to master-plan a community that has both housing and commercial activity all in the same ahupuaa," said Kane. "It's going to pay big dividends for our people in the future."
He said the department is also seeking development rights to adjacent property owned by the state Department of Land & Natural Resources.
Currently, there are 225 homes mauka of the commercial property. The department plans to build 225 more homes.
Kane said the department is also working to acquire a third subdivision for more homes and a park.
A total of 5,043 Hawaiians on the Big Island are on a waiting list for homestead land.
Under the agreement, Jacoby will provide a $100,000 initial endowment by December 2006 to establish a nonprofit organization to support and promote community development, community health care, job training and cultural education programs and projects.
In October, James Jacoby, of Jacoby Development, met with residents who suggested a community center, canoe club and open space be part of the master plan.
"Our team understands that this is Hawaiian people's land, so in planning its development we must start with the community's needs," Jacoby said.