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The Honolulu Advertiser
Posted on: Friday, January 23, 2009

Kona subdivision plans go forward

By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser
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A California developer is advancing plans for an estimated $115 million residential beachside community in North Kona on the Big Island, recently filing a final environmental impact statement with the state.

An affiliate of Atascadero, Calif.-based Midland Pacific Homes plans to develop a subdivision with 950 to 1,200 homes on 302 acres of largely lava field property that has been the target of three prior development attempts over two decades that failed.

The project dubbed 'O'oma Beachside Village submitted a draft environmental impact statement last May, and recently finalized the document submitted to the state last week.

The project needs major regulatory approvals to proceed, including new land-use designations from the state Land Use Commission, and county zoning changes. The developer, according to the environmental document, doesn't expect to apply for some permits until 2011, indicating the project is a few years away if approvals are obtained.

'O'oma Beachside is envisioned to have a wide range of housing, including single-family home lots, live-work units and affordable housing. Other elements include one-third of the property kept in open space, including an 18-acre public shoreline park.

The historic Mamalahoa Trail, which runs through the 'O'oma Beachside parcel, would be protected and preserved, the developer said in the filing. Nine archaeological sites identified on the property would be preserved.

One unresolved issue pertaining to the environment is the feasibility of a desalination plant intended to be the source of potable water for the project.

The developer said it will need to explore other water sources — including connecting to the county water system, drawing water from wells or partnering with other private water system owners — if its plan for an on-site or off-site desalination plant proves unfeasible.

"As necessary, 'O'oma Beachside Village LLC will undertake additional research to assess the potential impacts and appropriate mitigation measures of the selected systems," the developer said in the filing.

The 'O'oma Beachside plan is the latest ambitious attempt to develop the area just south of the Natural Energy Laboratory Authority of Hawai'i.

In 1986, Kahala Capital Corp. sought to develop a resort with a 600-room hotel, 300 condominiums, a golf course, ocean theme park, ocean science center and an office park. But the Land Use Commission ruled against designating the property for urban use.

The same developer in 1991 modified its proposal to include a 500-room hotel, about 300 homes, a golf course, a waterpark and other facilities. But the project, which drew strong community opposition, was rejected.

Another developer, Cliff Morris, tried to develop the site in 2003 with a mixed-use project called Clifto's Kona Coast featuring a regional shopping center, 400 visitor accommodation units and 240 homes.

The Clifto's project was initially approved by the county, but in 2004 was vetoed by then-Mayor Harry Kim over community concerns that largely focused on the project adding to traffic on already overcrowded Queen Ka'ahumanu Highway.

Kim refused to let the project proceed because it relied on still-tentative state plans to widen the highway, which had been at capacity since 1998.

Midland Pacific, headed by Dennis Moresco, purchased the land formally known as 'O'oma II in 2005.

Highway widening work has since progressed, but is still plagued by delays. 'O'oma Beachside said the state and county have many improvement projects in the works to meet anticipated growth in the area.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.