Commission rules against Waikoloa Highlands developer

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KEAHOLE — The state Land Use Commission Wednesday voted to revert more than 700 acres in South Kohala from rural district to an agricultural land classification after determining that the developer of a planned 398-lot residential subdivision did not substantially get the project off the ground.

Steven Lim, the attorney for developer Waikoloa Highlands Inc., said after the hearing that he would be discussing with his clients possible next steps, which could include approaching the county about amendments to the rezoning ordinance and a proposal for affordable housing or potentially appealing the commission’s decision in court.

While the vote by the commission was nearly unanimous — only commissioner Lee Ohigashi voted against the motion — many members voiced conflicted feelings on reverting the land back to agricultural classification, citing the immense need for affordable housing and traffic improvements, which were among the conditions the developer was expected to meet through the project.

“I am extremely conflicted. It’s very emotional,” said commission First Vice Chair Nancy Cabral, who holds the Hawaii Island seat on the commission and is also the owner of Day-Lum Rentals and Management, Inc.

“This is my island. I have properties in the lava zone — I have friends; I have tenants. I have lots of people I know dearly that have lost their home.”

Other members spoke more critically about the lack of development on the land over the last decade. Commission Second Vice Chair Aaron Mahi, who made the motion asserting there had been a violation and to reclassify the land, criticized the lack of making any productive use of the site.

“I think it’s wrong that we’ve come this far, and we have treated the land so disfaithfully,” he said. “Shame on us.”