Resistance to Kona project grows

County officials are opposed to state plans for Kona Kai Ola project

KAILUA-KONA » The private 530-acre Kona Kai Ola development planned for state land north of Kailua-Kona faces serious opposition from county officials despite efforts by Jacoby Development Inc. to make it acceptable.

Jacoby recently released a draft environmental impact statement on the $2.2 billion project in which the development is portrayed as "environmentally sustainable" and in which the development time is slowed to 15 years from an earlier 10-year plan.

But the administration of Mayor Harry Kim and the Hawaii County Council have been against the current concept since 2005 and the November elections probably increased skepticism on the Council.

The biggest stumbling block, according to Kim's planning director, Chris Yuen, is that the proposed 1,800 time share units and 700 hotel rooms are not permitted by the county General Plan.

"The proposal would create about 2,500 new visitors units," Yuen wrote in July. "This is a massive project. Currently, there are about 4,500 visitor units in North Kona, so this would be a major addition to the current inventory."

Yuen wrote the letter as an explanation for his refusal to initiate a necessary General Plan change requested by Jacoby, the Department of Hawaiian Home Lands and the Department of Land and Natural Resources.

They wanted "resort" designation at the site. Without it, there can be no time shares and hotels, Yuen said. Yuen refused. Without those, the present design is not profitable, he said.

In 2003, all 280 boat slips at Honokohau Harbor four miles north of Kailua-Kona were taken, and 717 boat owners were on a waiting list. So the state asked for proposals to create a new marina and to "maximize returns" on 330 adjoining state acres. Eventually 200 acres of Hawaiian Homes land were added to the project.

In 2004, Jacoby was selected to do the project. At that time, the county General Plan gave "resort" designation to the site.

But in 2005, at Yuen's request, the County Council removed "resort" designation. Jacoby and the state went ahead with resortlike plans anyway.

Jacoby consultant David Tarnas argues that the current proposal is a "mixed use urban development" and should be permitted under the present "urban expansion" designation for the area.

Besides 800 new boat slips, the plan calls for 224 acres of open space, the environmental study says.

That includes a 400-foot-wide oceanfront park and acres of saltwater swimming ponds created by pumping water inland and allowing it to flow down again. There would also be a marine science center and acres of commercial space along Queen Kaahumanu Highway at the inland boundary of the project.

The developer would build an extension of Kuakini Highway and housing for workers offsite, Tarnas said.

That's not enough, Yuen said. Before the Oct. 15 earthquakes and the closure of the Mauna Kea Beach Hotel, West Hawaii was short about a thousand laborers and plans were under way to bring workers from the Philippines, he said.

Even with Mauna Kea Beach closed, the region is still short hundreds of workers and there is no place to house them if they come, he said.

The Jacoby project would make the labor and housing shortage even tighter, and tie up highways with workers making long drives to jobs, he said.

In the September and November elections, County Council skepticism about development increased with the election of Brenda Ford, who is critical of growth, and the elevation of cautious planning advocate Pete Hoffmann to the chairmanship.

Hoffmann said he's willing to listen to proposals. But he added, "I would not vote for this proposal if it were before me today."