Big Island development
could help UH

A $305 million project would
set up some infrastructure
for a new college campus

KAILUA-KONA » Construction of a new University of Hawaii campus in Kona would get a jump start from an adjoining private development under a proposal to be heard by the state Land Use Commission today.

Hiluhilu Development LLC wants to develop 725 acres near Keahole Airport primarily for housing but also including a golf course, a 120-room hotel, commercial space and a "University Village Center" next to state land.

The development cost is estimated at $305 million.

On 500 acres of adjoining state land, the University of Hawaii wants to create a 33-acre campus for its Center at West Hawaii under the umbrella of Hawaii Community College in Hilo.

Community college chancellor Rockne Freitas said the university does not have money to develop it.

Talks have been under way since 2001 on how the university and Hiluhilu could help each other, said Guido Giacometti, the representative for Hiluhilu, a project of stock brokerage owner Charles Schwab and Kona contractor Guy Lam.

Last year, the university and Hiluhilu signed a memorandum of understanding that they would do joint planning and infrastructure development, Giacometti said.

The first step for Hiluhilu is today's hearing at the Hapuna Beach Prince Hotel in which the company will ask to have conservation and agriculture designations on its land changed to urban.

Eventually, Hiluhilu would build a mauka-makai road and provide electrical, water and sewage service, saving the university those costs.

The University Village Center would include six acres of university space, along with 28 acres of commercial space, a 10-acre medical center and 50 acres designated for research and development, such as companies like those at the state's nearby Natural Energy Laboratory of Hawaii.

Rounding out the picture would be 845 housing units, including duplex-style student housing costing up to $350,000 and buildable lots costing up to $400,000.

The university already operates a West Hawaii center in leased space in South Kona. The plan is for the university to get its permanent North Kona campus going by instead leasing facilities built by Hiluhilu, perhaps as soon as 2007.

The Hiluhilu classroom buildings would be designed to be converted to shop storefronts if the state develops its own campus so it no longer needs leased space, Giacometti said.

After Hiluhilu gets state approval, it would still need rezoning from Hawaii County. That could be a problem because of Mayor Harry Kim's policy of not permitting new developments that add traffic to adjoining Queen Kaahumanu Highway until the state widens it.

But Kim's Planning Director Chris Yuen supports Hiluhilu, at least at this stage of the planning, saying its proposed mauka-makai road would relieve traffic on Kaahumanu.