Resort project a poor fit for public lands on Kona coast

THE ISSUE Hawaii County officials are opposed to a 530-acre resort proposed for state land.

WHAT started out as a plan to increase the number of boat slips at a harbor on the Big Island has ballooned into a 530-acre resort project on state-held land that pits the Lingle administration and an Atlanta-based developer against the Hawaii County government.

The project, called Kona Kai Ola, would consist of 1,800 time-sharing units and 700 hotel rooms as well as commercial tracts in an area already plagued by heavy traffic and housing and labor shortages.

The development would bring in revenue for the state and the county, but would give up public land and management authority to private entities. Since county officials oppose the project, the state should defer to them, particularly because zoning decisions are their kuleana.

Public partnerships with for-profit outfits may be justified when government cannot afford the expense of a project. This argument can be made with the state's leasing of land at Honolulu Harbor for a residential-retail development called Pacific Quay that will include parking, an interisland ferry terminal and other needed improvements that will benefit the public. Moreover, Pacific Quay would not require extensive infrastructure and additional public services since the project is in an urbanized area.

The Kona Kai Ola plan, however, is different.

Three years ago, the state sought improvements for Honokohau Harbor, primarily to expand the 280-slip marina to take care of a berth shortage, and called for proposals that included 330 acres of public land. The Department of Hawaiian Home Lands, also hoping to generate revenue, added 200 acres to the project.

What has emerged is a plan that doesn't fit the largely undeveloped area. Concerns include a lack of water and adequate sewage facilities and traffic capacity.

The developer, Jacoby Development Inc., contends that a shuttle service between the Kona airport and the resort and a mile-long extension of a highway it promises to install should lessen Kona's notorious traffic problems. But county officials say neither will mitigate the addition of thousands of commuting employees expected to travel the roads.

Jacoby says it will build off-site affordable housing for workers, but it would be difficult to limit units to employees only. In addition, costly services, such as fire, police and schools, would have to follow.

In 2005, the county removed a resort zoning designation for the area, as it did for several sites as part of its general plan revision, seeking to slow growth on the island's west side to balance out infrastructure demands.

The company says the project will fill a need for time-sharing and hotel units and that the expense of improving the marina to add 800 boat slips requires a good return on its investment.

The county, however, sees the size and extent of the project as a bad trade-off.