Hokuli'a developers seek compromise, plan appeal in court
By Vicki Viotti
Advertiser Staff Writer
Developers of the controversial Hokuli'a luxury-home project intend to challenge a Sept. 9 court ruling that halted construction at the South Kona site, hoping for a compromise that can avert layoffs and salvage their investment.
The ruling by Circuit Court Judge Ronald Ibarra was the latest decision in the case of 1250 Oceanside Partners, which has faced court challenges over the project's effect on water quality and historic and burial sites on the 1,500-acre parcel near Kealakekua. The lawsuit, filed in November 2000, has several components but started with complaints that work at the site resulted in silty runoff that polluted offshore waters.
Last week's court order stemmed from Ibarra's decision that Oceanside and the county circumvented state land-use laws in the way permits were granted for the project, comprising 750 residential lots on agriculturally zoned land. Ibarra found that the development was not a bona fide agricultural project and required clearance from the state Land Use Commission, not just county permits.
Oceanside executives said yesterday that they plan to appeal the decision to the Hawai'i Supreme Court.
They also plan to meet a Monday deadline for returning to Ibarra's court to seek some kind of relief from his order, which forced them to shut down development. Lyle Anderson, who owns a majority interest in Oceanside, declined to say what kind of relief is sought.
The project's 150 employees are being told they will have jobs for 30 days, after which their status is uncertain, Anderson said.
Lawyers representing project opponents — including a group of Kona residents and a Native Hawaiian cultural practitioners coalition called the Protect Keopuka 'Ohana — said they didn't believe that Ibarra would alter his order.
"Their options, barring reversal on appeal, are limited," said Robert Kim, who represents the residents.
"Once you have a trial, it's rare that a judge will change his decision."
Meanwhile, Kim said, Ibarra's court will convene Sept. 29 to hear an environmental report that suggests the project has increased pollution again in the offshore waters near Kealakekua.
The report is based on studies performed by environmental monitors appointed by Ibarra in May 2001. The monitors, Karen Klein of AECOS Laboratory of Hawaii and David Ziemann of the Oceanic Institute, issue quarterly reports on water samples drawn offshore.
David Wong, an attorney representing Oceanside, said: "We strongly disagree with the report conclusions and we think there are serious errors in it."
But Wong declined to discuss the findings in detail, saying the court "has cautioned both sides not to try this in the media."
According to the report, submitted to the court Aug. 13, offshore samplings between February and May showed a marked increase in the level of nutrients that cause algae to grow and interfere with marine life.
"We have noncompliance now at all eight sample sites, going from
1 meter offshore to 500 meters offshore," Klein said in the report.
"At most sites, the nutrient level is at least two times the compliance level."
Klein wrote that "intensive watering, because of drought conditions, and establishment of golf courses and landscaping projects at the Hokuli'a development would result in nutrients percolating to the groundwater and flowing into the marine environment. We conclude that the most likely source of these nutrients are the immediate Hoku-
li'a lands under construction."
Reach Vicki Viotti at vviotti@honoluluadvertiser.com or 525-8053.
