A dispute over who should build a senior living center in Kailua-Kona has one party warning there could be a glut of such units for seniors, or the area could end up having no new units at all.
A dispute over who should build a senior living center in Kailua-Kona has one party warning there could be a glut of such units for seniors, or the area could end up having no new units at all.
At issue is an application by Hualalai Health LLC seeking code exemptions for an assisted living and skilled nursing care for 291 residents on 9.2 acres on Hualalai Road. The complex would include 96 assisted living residences, 160 skilled nursing and long-term care beds and 35 employee housing units.
The project includes 24 units affordable to families earning less than 60 percent of median income, 18 units for families earning below 80 percent of median income and 105 units for families earning less than 100 percent median income. The affordable housing component allows the county to give entitlements such as exemptions from various county codes.
But another development group, Kuakini Highway 75-6099 Corp., had previously applied for and received exemptions for substantially the same project on a 14-acre parcel on Kuakini Highway formerly known as the Lava Kuakini development. After holding the entitlements without developing the project, the group’s entitlements could expire June 1.
“This is the same project for land previously approved for Kuakini,” San Francisco attorney Bruce Prigoff told the Hawaii County Council on Wednesday, saying Hualalai Health was merely “transplanting” entitlements earned by Kuakini to the new site.
Two projects cannot be built in the same area with the same entitlements, according to the county Office of Housing and Community Development.
“We have to be very cautious,” Housing Officer Alan Rudo said Friday. “We support any project that results in more affordable housing. We just hope it all gets resolved.”
West Hawaii Health Managing Partner Bruce Beard, the project developer, said the project was moved to the new location and Hualalai Health was formed to construct it after Kuakini defaulted on its payments to contractors last year. The case is now in litigation in 3rd Circuit Court.
Beard, in talking points submitted by email, said Kuakini representatives “are only interested in blocking this development so that it improves their position against West Hawaii Health and improve their chances to extend the June 1, 2016 construction deadline.
They have done nothing to demonstrate a genuine and diligent intent or desire to proceed with the development.”
Kuakini representatives brought their dispute to the County Council Wednesday, after learning about the Hualalai Health application.
The council, without comment, took no action after South Kona/Ka‘u Councilwoman Maile David withdrew the resolution she had sponsored at the request of the county Office of Housing and Community Development.
“Withdrawal of the resolution was to allow everyone a chance to review the new information, determine their respective course of actions, and obtain the appropriate recommendations regarding procedural matters so as to preserve the integrity of this much needed elderly housing project,” David said in a text message Friday.