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The Honolulu Advertiser
Posted on: Monday, September 12, 2005

Bid to act quickly on Hokulia rejected

Associated Press

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HILO, Hawai'i — The state Supreme Court has again refused a Hawai'i County request to make a speedy decision on the contentious Hokulia development case.

Circuit Judge Ronald Ibarra ruled two years ago that the luxury development was an urban project illegally being built on agricultural land. Hawai'i County — which had granted the permit for the project — and the project's developer, 1250 Oceanside Partners, had appealed to the Supreme Court.

The court's decision means there could be no final ruling for four or more years, said county attorney Ivan Torigoe. Without a decision, the county is left in a bind over how to administer existing land-use laws, he said.

The county also is left open to a lawsuit by 150 Hokulia lot owners who have demanded $264 million in compensation because the lower court banned construction. The sum amounts to almost as much as the county's annual budget.

The Hokulia project includes plans for 750 home lots ranging from $1 million to $8 million, a Jack Nicklaus-designed golf course, a spa, tennis courts, a beach house and a club.

Construction on the project above Kealakekua Bay began in early 1998 but was halted in September 2003 after Ibarra ruled the project violated state laws on agricultural land use. Ibarra also found that the county government was in conflict of interest.

Attempts to mediate a settlement failed, and 1250 Oceanside Partners filed an appeal, which could take years. The Supreme Court denied another request from 1250 Oceanside Partners and the Hawai'i County to expedite the appeal late last year.

Oceanside's attorneys argued the lower court does not have the authority to rule on permits and approvals that were granted under the county's land-use and permitting process.