Opinion ID: 870822
Heading Depth: 3
Heading Rank: 2

Heading: Initial Approvals and Delays in the Project's Development

Text: As observed by the ICA: The [1985] EIS listed additional governmental approvals KDC needed to obtain in order to complete development of the [p]roject, including rezoning approval from the DLU, grading and building permits, a shoreline certification, a Special Management Area Use Permit [(SMP)], and subdivision approval. On March 27, 1986, the Land Use Commission approved the reclassification of 236 acres of the property from [a]griculture. . . to [u]rban [d]istrict for resort and golf course uses. On May 23, 1986, the DLU accepted KDC's application for a [SMP] and [s]horeline [s]etback [v]ariance. KDC sought to expand its resort by developing a master-planned resort community that would include hotels, dwellings, commercial areas, golf courses, parks, roadways; to replace two drainage culverts with open channels; and to conduct a desilting operation at Kawela Bay. On June 25, 1986, a bill for an ordinance to rezone certain portions of the property to be developed under the [p]roject was introduced before the [City Council]. The bill incorporated the Unilateral Agreement and Declaration for Conditional Zoning ([u]nilateral [a]greement), in which KDC agreed that the zoning change would be subject to conditions requiring, among other things, construction of a wastewater treatment plant, construction of low-to-moderate-income housing, improvements and modifications to roadways, the implementation of a shuttle service, and the establishment of a child care center, parks, public easements to and along the shoreline, and public parking. Like the [1985] EIS, the [u]nilateral [a]greement anticipated development to proceed in three phases, the last phase to be completed before 2000. The [u]nilateral [a]greement noted that development may deviate from the phased development schedule due to the occurrence of changed economic conditions, lawsuits, strikes or other unforeseen circumstances. The City Council passed the rezoning bill on August 14, 1986 and approved KDC's application for the [SMP] and [s]horeline [s]etback [v]ariance by resolution adopted on October 1, 1986 (the March 27, 1986; August 14, 1986; and October 1, 1986 approvals are collectively referred to as the [p]roject [e]ntitlements). Over the next twenty years, only certain aspects of the [p]roject were completed. KDC constructed a wastewater treatment plant and water main between January 1989 and March 1990, the Opana Wells between February 1989 and March 1991, and the Palmer Golf Course between March 1989 and March 1991. Construction of improvements to Punahoolapa Marsh began in approximately March 1990. From 1990 through 1991, KDC obtained subdivision approvals for various parcels to be used for parks, roads, hotels, a golf course, and a golf clubhouse. In March 1999, Kuilima purchased the property underlying the [p]roject from KDC[,] and KDC assigned its interest in the [p]roject to Kuilima. In May 1999, the DPP drafted the Ko`olau Loa Sustainable Communities Plan to help guide public policy, investment, and decision-making through the 2020 planning horizon in order to maintain and enhance the region's ability to sustain its unique character, current population, growing [sic], families, lifestyle, and economic livelihood. The plan recognized and supported the [p]roject. The City Council adopted the plan on December 16, 1999. Kuilima renovated the existing Fazio Golf Course between 2000 and 2002. In 2003, Kuilima obtained approval to renovate and expand existing portions of the Turtle Bay Resort. Between 2003 and 2005, Kuilima invested about $100 million in completing these renovations, which included the addition of nine resort condominium units. As of November 2005, construction on the major components of the [p]roject, including the hotel rooms and the [remaining] condominium units, had not begun. 120 Hawai`i at 460-61, 209 P.3d at 1274-75 (emphasis added).