LIHU‘E — The Kaua‘i Planning Commission acted Tuesday to help ensure that an affordable housing project tied to a Princeville shopping center expansion would be developed after permits are issued. The Kaua‘i County Council will have the last word on
LIHU‘E — The Kaua‘i Planning Commission acted Tuesday to help ensure that an affordable housing project tied to a Princeville shopping center expansion would be developed after permits are issued.
The Kaua‘i County Council will have the last word on the zoning amendment, but the commission’s recommendation details the incentives for Princeville SC Development. The developer is requesting additional income requirements for employee housing and a reduction of the required number of units in the original rezoning permit.
The Planning Department’s approval of the building permit for expansion at the Princeville Center would require the developer to have full site control and the financing process completed. It would also require the completion of substantial construction of the employee housing project before the retail expansion could begin.
The recommendation added to the amendment came from County Director of Public Housing Kamuela Cobb-Adams, who said his office looked at the history of the parcel and of Princeville, where past issues encouraged a “finance versus foundation trigger” for permit approval.
“The commission’s questions of the petition for the amendment demonstrated a genuine interest in assuring affordable housing be built in Princeville and I was glad to provide feedback in such an important and complex amendment,” Cobb-Adams said.
Affordable housing development is unique regarding financial arrangements involving a variety of investors, he said. In most cases, once a deal is closed, the investors already have money in escrow and there is pressure on the developer to move forward.
The requirement allows room for review and addresses “the whole package” construction versus just pouring a foundation, he added. Construction should be at a point where it must move forward or risk the investment — before permitting the retail project, he said.
Changing the conditions for permit approval is not helpful to the project, said Laurel Loo, attorney representing the developers at the hearing. She said the vote on the recommendation would allow them time to tweak their concerns with the County Council.
Makani Maeva, an affordable housing project director for Vitus, testified that special requirements place funds at risk if work doesn’t begin within 30 days of closing the financial agreements.
Steve Bush, project director and consultant with S. L. Bush & Associates, suggested alternative language to allow for pre-construction work on the housing project and the shopping center expansion to run simultaneously.
The permit for the shopping center is contingent upon adequate progress and phased completion time limits for both components, Bush said. To reduce the economic burden on the housing project, he said site work must run simultaneously for grading, drainage and underground utilities.
When the recommendation passed without any suggested changes, Bush said it was still helpful to get their concerns across to the commission. He said the County Council would decide on any new changes and the developer will redesign according to these new constraints.
“I think we can work out those conditions with the council, and it really comes down to the verbiage,” Bush said. “I think everybody understands the concerns, and I think everybody is oriented toward solving that problem. So, we’re OK with what happened and I think we can get this done.”
Cobb-Adams agreed.
“I was pleased that the developer, in our short discussion, had the experience and willingness to adapt their development plans with the Housing Agency’s proposed amendment,” Cobb-Adams said. “Such flexibility is necessary to make this project and affordable housing in Princeville a reality.”
Another requirement of the recommendation is for low-income rental units to remain affordable for 60 years. The current requirement is a 40-year standard.
It comes with a condition that county land or funds, or federal funds administered by the Housing Agency are not used to subsidize the development.
County Director of Planning Michael Dahilig said there are financing opportunities with a 60-year protocol. It does not specifically align with the ordinance but it does align with the intention of the ordinance, he said.
The affordable housing project would benefit employees of Princeville Development Corporation and subsidiaries, Princeville Hotel Associates, and all employees working within Princeville Phase I or Phase II.
There was disagreement among commissioners. Some felt that without the incentives the developers could sit on the affordable component for years or walk away without the appropriate conditions.
Others felt the incentives were appropriate and that the question was about the appropriate degree of project oversight.
“There is a valid engineering argument to build both projects at the same time,” Dahilig said. “We would still stick with the recommendation but it is understandable.”
• Tom LaVenture, staff writer, can be reached at 245-3681 (ext. 224) or tlaventure@thegardenisland.com.
