Kukuiula Development Company (Hawaii), LLC. got a boost for its proposed 1,000-acre residential and resort project with action by the state Land Use Commission this week. At a meeting in Honolulu Thursday, the commission approved a request by Kukuiula Development
Kukuiula Development Company (Hawaii), LLC. got a boost for its proposed 1,000-acre residential and resort project with action by the state Land Use Commission this week.
At a meeting in Honolulu Thursday, the commission approved a request by Kukuiula Development to urbanize the remaining 246 acres of their 1,000-acre project, which is located mostly mauka of Lawai Road in Poipu.
The approval by the LUC allows Kukuiula to develop the entire project at once, according to County of Kauai officials.
The commission also assigned the interest of the project from Kukuiula Development Company Inc. (Kauai), the previous developer, to Kukuiula Development (Hawaii).
Subsidiaries of Alexander & Baldwin and DMB Associates Inc. of Scottsdale, Ariz. together formed Kukuiula Development (Hawaii) to complete the project.
The 1,000-acre project must be approved by the Kauai County Planning Commission and then the Kauai County Council before it can be developed.
The developer hopes to submit an application to the county planning commission by the end of this month, according to Mike Roberts, vice president of Kukuiula Development (Hawaii) and DMB Associates Inc.
If the project runs smoothly through the Kauai County zoning and permitting process, construction work could start as early as summer 2005, Roberts said.
The developer projects it will take an investment of more than $500 million to fund the project.
Kukuiula Development sought the land change from the LUC because the density of the 1,000-acre project had been scaled back and because less time is needed to develop it.
The zoning for the land allows for the development of 3,400 units, but the revised plan calls for building out only 1,500 units.
“DMB felt it (3,400 units) was significantly more units than was appropriate for the land,” Roberts said.
Roberts said the proposal now calls for more open space, a goal that probably will be welcomed by the community.
In the mid-1980s, the LUC reclassified 219 acres of the 1,000-acre project from agricultural to urban use.
In 1995, the LUC approved “incremental redistricting” for another 783 acres.
However, the commission stipulated that Kukuiula Development could develop only 537 acres at one time, and that it would consider changing the land designation for the other 246 acres – the subject of Thursday’s meeting – if the developer met performance requirements.
Commission members visited the site in May.
Keith Nitta, a senior planner with the Kauai County Planning Department who attended the Thursday meeting in Honolulu, said no opposition was lodged against the Kukuiula proposal.
However, Kauai Sen. Gary Hooser said the developer should address the need for affordable housing in South Kauai.
Roberts said Kukuiula Development plans to develop about 60 affordable housing units within the project. The affordable housing units would be in addition to the planned 1,500 units for the project, Roberts said.
Another audience member voiced concerns the additional traffic generated by the completed project would worsen traffic conditions in south Kauai. The Poipu Beach Resort area outside of Koloa is considered a prime residential community and visitor destination.
Concerns also were raised at the Honolulu meeting about Kukuiula Development’s proposal for timeshare units at the project.
Critics have voiced fears that the units would fragment old-time neighborhoods, but proponents of timeshare and vacation rentals say such units will create construction and tourism-related jobs that will support the island’s economy.
Representatives for the developer have proposed a visitor designation area classification for the project. If the county approves the designation, housing units could be used as timeshare or vacation rentals, county officials have said.
Roberts said the developer would like to reserve the right to sell “some timeshare units, if we decided that is an appropriate use, and if the market dictates.” Roberts said Kukuiula is considering no more than 200 timeshare units for its project.
For the 1,000-acre project, Kukuiula Development representatives have proposed a small hotel, multi-and-single family units, an 18-hole golf course, a 20-acre park and the use of about 14 acres for commercial purposes.
Staff writer Lester Chang can be reached at 245-3681 (ext. 225) and mailto:lchang@pulitzer.net
