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The Honolulu Advertiser

Posted on: Wednesday, October 24, 2001

Big Island planner wants to centralize resort growth

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — Planning Director Chris Yuen is revising key zoning designations in Hawai'i County's general plan in an attempt to centralize resort growth and keep shoreline areas free of development.

Two of his chief targets are the long-stalled plans for the Hawaiian Riviera resort and marina in Ka'u and the oceanfront portion of the Nansay's 445 acres in North Kona.

The general plan update, started by the previous administration of Mayor Steve Yamashiro, has been under way for two years.

Yuen, who took over as head of planning almost a year ago under new Mayor Harry Kim, has endorsed former director Virginia Goldstein's initiative to shift thousands of acres of small agricultural parcels to a new category to be known as rural residential. But he also has added his own stamp to the plan, which guides growth on the Big Island.

His actions have drawn opposition from some members of the Planning Commission who see a need for further hotel development to boost employment. They also fear centralization of resorts will create the kind of clutter that has become a turn-off to many O'ahu visitors.

Commissioner Jimmy Souza of Hilo compared the vast arid area of Ka'u to what existed at South Kohala before developer Laurence Rockefeller turned it into the luxury Mauna Kea Beach Hotel.

"Thank God they were there when Kohala Sugar closed and after Hamakua Sugar failed," Souza said.

Yuen, a former member of the state Board of Land and Natural Resources and a leader in efforts to set aside large portions of West Hawai'i for recreational use, said he is attempting to correct bad planning decisions that allowed infrastructure needs, from roadways to water, to fall behind.

He is proposing downzoning for the Hawaiian Riviera and Nansay luxury resort properties, both of which have yet to break ground.

The first called for 3,000 rooms spread over three hotels, more than 900 condominium units and a 400-slip marina on nearly 20,000 acres.

Palace Development's Charles Chidiac attracted foreign investors to the project but then fell into financial and legal difficulties. His share of the property, 3,244 acres, was seized as part of a bankruptcy action.

Maui attorney Tom Bodden is manager of and partial investor in the Ka'u 'Aina Hawai'i portion of the project that comprises 16,450 acres.

He said many aspects of the Hawaiian Riviera resort remain viable, such as a regional airport for small planes and hotels on a smaller scale. Bodden said he would oppose downzoning.

"We think it is in the best interest of Ka'u and eventually public access to Native Hawaiians to go ahead with eco-tourism projects," he said.

Bodden and his associates, however, have declined to discuss details of a recent $3 million civil suit brought against Ka'u 'Aina over gathering rights and ancient burial access.

The $300 million Nansay project also has been stalled by the financial and legal troubles of a succession of owners. At one time, plans called for hotels, a golf course and condominiums.

The present owners of Nansay could not be reached for comment.