A plan by the Lili‘uokalani Trust to develop nearly 70 acres in Kailua-Kona into a mixed-use community is moving forward but is still a long way off.
A final environmental assessment was published Wednesday for the trust’s Makalapua Project District, which would convert 69.5 acres owned by the trust just makai of Kailua Park into a development that would include about 600 residential units, more than 200,000 square feet of commercial space, two hotels each providing about 150 rooms, and more.
“Our goal is to enhance the community landscape while offering a blend of residential, commercial and recreational opportunities in Kona,” said trust spokesperson Ellise Morimoto via email. “The development will create jobs and business opportunities, provide open space, and add local-targeted housing near the existing Kailua Village. Implementation of the project will provide (the trust) with opportunities to continue and expand mission-related activities.”
The project follows a largely aborted project by the trust that began in 1990, which would have included an additional 212 acres of agricultural land makai of Queen Kaahumanu Highway and would have included a regional hospital, a college campus and other facilities.
The current Makalapua plan will leave those agricultural lands untouched, and any future plans involving those lands will be a separate project.
According to the environmental assessment, the total estimated cost for building construction is about $400 million, plus an additional $60 million for the infrastructure alone. Once completed, economic activities within the district are anticipated to generate about $146.6 million in revenue a year, with on-site employment expected to provide about 225 full-time jobs.
The assessment lists an anticipated development time frame of approximately 10 years but doesn’t have any estimates for when construction might begin.
Morimoto told the Hawaii Tribune-Herald that construction will begin “after all required entitlements and construction permits are obtained.” The assessment notes the project will require change-of-zone permits from the Hawaii County Council, a state Land Use Commission district boundary amendment and a special management area use permit, among other building and grading permits.
With the assessment complete, Morimoto said the trust will begin a design review process with the county.
While most of the land involved in the project is vacant and undeveloped, some existing businesses will be affected.
A BMW car dealership on Loloku Street will be integrated into the development, but storage areas, light industrial warehouses and other businesses along Kaiwi Street will be “redeveloped,” according to the assessment.
While the environmental assessment concluded that the project likely will have no significant environmental impact, several West Hawaii residents were skeptical of the project during a public comment period earlier this year, with several concerned letters being included with the final assessment.
“We need more housing, but more of the affordable type — not high-end housing,” wrote Kailua-Kona resident Aaron Stene. “We don’t need more commercial/retail/accommodation space. You can see there is a glut that remains empty over several years.”
The assessment does not include an estimate of what the average residential rent in the district might be, although it notes that to meet the county’s affordable housing requirements, the project will have to earn at least 120 affordable housing credits for its about 600 units.
“There is no water for these absurd projects for the wealthy, historical sites will be demolished in their plans and on and on,” wrote Claire Loprinzi in April. “They are content with more money, raping of the land and her keiki in all forms, drilling deeper and deeper in waters, through pohaku which should never be done.”
A response to Loprinzi’s letter by the trust countered that it has sufficient water credits to meet the project’s calculated demand and that historical sites in the project area will be preserved.
