Opinion ID: 6491238
Heading Depth: 3
Heading Rank: 1

Heading: The LUC Proceeding

Text: On April 21, 2003, the Hui filed a “Motion for an Order to Show Cause Regarding Enforcement of Conditions, Representations, or Commitments” (motion for an order to show cause) pursuant to Hawai'i Administrative Rules (HAR) §§ 15-15-70 4 and 15-15-93. 5 The Hui sought to have the LUC issue an order to show cause as to why the classification of the Midkiff/Myers Parcel should not be reverted to conservation district. Generally, the Hui contended that Myers failed to perform her representations and commitments and the conditions of the November 1989 order by listing portions of the Mid-kiff/Myers Parcel for sale to the public with the MLS. The Hui apparently believed that Myers violated Condition No. 4 of the November 1989 order. In addition, the Hui alleged that Midkiff and Myers “represented and made commitments that their property was not going to be used for commercial venture, but rather[,] they sought reclassification for ‘family use purposes[.]’ ” Furthermore, the Hui expressed concerns that selling portions of the Midkiff/Myers Parcel “will result in the influx of many new people to the Kaniakapupu site and further endanger the preservation efforts carried out to date.” The Hui requested a hearing on its motion for an order to show cause pursuant to HAR § 15-15-70(e). In a facsimile dated April 24, 2003 and sent on April 28, 2003 from Myers to her listing agent, Myers withdrew her listings with the MLS. On January 7, 2004, Myers submitted her memorandum in opposition to the Hui’s motion for an order to show cause, which Midldff joined on the same day. Myers stated that she had complied with Condition No. 4 by first offering the MLS-listed portion of the Midkift/Myers Parcel to Midkiff. Moreover, Myers contended that, inasmuch as the purpose of the instant proceeding was to consider the Hui’s motion for an order to show cause, “[a]ny evidence or issues presented to the [LUC] about Kaniakapupu ... is irrelevant to the purpose of [the] proceeding.” The LUC held a hearing on the Hui’s motion for an order to show cause on January 15, 2004 (the January 2004 hearing). At the conclusion of the January 2004 hearing, the LUC orally voted to deny the Hui’s motion on the basis that the Hui had not met its burden of demonstrating a failure to perform a condition, representation, or commitment on the part of Myers. On March 25, 2004, the LUC entered its written order denying the Hui’s motion for an order to show cause. The LUC summarized the arguments advanced by the Hui and Myers as follows: [The Hui] argued that an [o]rder to [s]how [c]ause should be issued because Midkiff/Myers failed to comply with representations and commitments made to the [LUC] during the original proceedings [ie., the proceedings relating to the 1989 boundary amendment petition]. It argued that the [LUC] granted a “conditional” reclassification of the [Property] from the [conservation [district to the [u]rban [district because [Midldff and Myers] represented that they were seeking the reclassification for continued family residential use through existing and new structures. [The Hui] further argued that the listing of the Midkiff/Myers [P]arcel[ ] for sale showed that Midkiff/Myers had failed the commitment to keep the [Mid-kiff/Myers Parcel] in family residential use. The remedy that [the Hui] seeks is the reversion of the Midkiff/Myers [Parcel] of the [Property] from the [u]rban [district to the [conservation [district. [The Hui] acknowledged that Condition No[ ]. 4 ... of the [November 1989 order] restricted the sale of the [Midkiff/Myers Parcel] for twenty (20) years from the issuance of the [November 1989 order], unless a right of first refusal amongst [Midkiff/Myers] and their successor are offered prior to any sale of the [P]roperty outside the families. [[Image here]] [The Hui] acknowledged that Mid-kiff/Myers complied with the right of first refusal requirements, but it argued that despite the compliance of Midkiff/Myers with this requirement, they failed in their representations to the [LUC] by listing the [Midkiff/Myers Parcel] for sale pursuant to Condition No. 8c. 6 :i [[Image here]] Midkiff/Myers ... opposed the [Hui’s motion for an order to show cause] on the following bas[e]s: (1) [the Hui] does not have standing to file the [motion for an order to show cause] because it is not an adjacent landowner; (2) [the Hui] has not alleged any injury; and (3) the [LUC’s] jurisdiction is in the [area of the Property] and not off-site at Kaniakapupu.... Also, Midkiff/Myers stated that [they] withdrew the listing[.] The LUC then stated: The [LUC] discussed the various interpretations of compliance with Condition No. 4[ ] and concluded that the intent of the condition was to enforce the representations of [Midldff and Myers] to keep the [Midkiff/Myers Parcel] for family use purposes. It determined that the offer of first refusal requirement was satisfied, but it raised the concerns that the $12,000,000 listed sales price in relation to current infrastructure costs and tax assessment of the [Midkiff/Myers Parcel] called into question the sincerity of the offer and refusal on the sales price between Myers and Midkiff; and if the [Midkiff/Myers Parcel] were sold for near the list price the significant financial gain would be contrary to [Midkiffs and Myers’] representations. [[Image here]] Through the evidence and arguments provided by [the Hui] and the parties, the [LUC] was concerned that the [Hui] did not meet its burden[] in demonstrating that Midkiff/Myers had not satisfied Condition Nos. 4 and 8. The [LUC] acknowledged that the [m]otion [for an order to show cause] was not ripe because of the withdrawal of the Midkiff/Myers [P]arcel from the listing. Finally, the LUC stated that it was denying the Hui’s motion for an order to show cause pursuant to HAR § 15-15-93, see supra note 5.