Developer Palamanui Global Holdings won unanimous approval from the Leeward Planning Commission to delay construction of a mauka-makai connector road and public park promised to the community in 2006 in exchange for a zoning change that effectively raised the property value of the 725-acre development.

The commission also approved Palamanui's request to remove a requirement tying the amount of commercial space to residential development, allow for retail structures to be built within 800 feet of Queen Kaahumanu Highway and rezone 29 acres located in the planned business park to allow for wholesale and distribution use.
"The crux to this is we want to get started," said Palamanui project planner Roger Harris. "We are not asking to delete any of the community benefits but are asking for a deferral on the park and (connector) road."
The approval sends a favorable recommendation to the Hawaii County Council where council members will decide the fate of the developer's plans for the parcel located mauka of Queen Kaçahumanu Highway north of Kona International Airport.
Some 40 people attended the six-hour commission meeting held at King Kamehameha's Kona Beach Hotel on Thursday. A decision on Palamanui's request was originally scheduled for June 30 but was delayed when the commission voted to defer the matter to allow the Planning Department, Public Works and developers to review a traffic study and other issues presented by the public and commission.
Palamanui officials submitted a request in March for the changes, saying that economic conditions "made the planned financing for the initial phases of this project unavailable" because of a decrease in demand for residential units.
Commissioner Fred Housel noted that since the request was submitted, the Dow Jones industrial has topped 9,000 points and partner Charles Schwab's stock has risen by 50 percent. He asked Harris if Palamanui officials see things changing. Harris answered by saying the market still looks "really bleak."
Should the council pass the revisions to the ordinance, the mauka-makai connector road that would have created a connection between the Queen Kaahumanu and Mamalahoa highways -- referred to as Road 1 -- would be delayed indefinitely from the 2012 deadline set forth in 2006 when the county agreed to a zoning change from agricultural use to project district -- which allows for commercial and retail operations -- for the development.
The new conditions laid forth by Planning Director Bobby Jean Leithead-Todd in her July 21 revised conditions of approval requires that the road be built within six years from the time the developer secures right-of-way through both state and private land.
However, there is no time frame set as to when that right-of-way has to be secured, meaning the road could be delayed by legal proceedings should a private property owner deny right-of-way. A delay could also come if the county has to secure the right-of-way via eminent domain, said Leithead-Todd.
Further, a second mauka-makai connector road -- the planned University Drive, which would have traversed through the Makalei Estates subdivision -- will be halted below the mauka subdivision until the first mauka-makai road is completed, meaning any type of connector road through Palamanui could be delayed indefinitely depending on the developer's ability to gain right-of-way for Road 1.
Palamanui will still be responsible for constructing a Kamanu Street extension from Kaiminani Drive before occupancy of the first single-family residence.
A 20-acre public park that the developer promised in 2006 to construct before the first residential unit was occupied is now required to be built after building permits are issued for 101 single-family residential dwellings.
Housel questioned why the park needed to wait until the 101st permit was issued when it is needed by the community and could be used as a selling point for residential units. He requested that Palamanui reconsider and was told Palamanui "would think about it" while representatives shook their heads as if to say no.
West Hawaiçi resident Janice Paul-Glennie said the recommendation allowing Palamanui delays for the public park and road likely means those promised benefits will never be realized.
"The region must support projects like public parks, because once they are delayed they often never come to fruition," said Paul-Glennie, who asked Commission Chairman Rodney Watanabe and deputy Corporation Counsel Brandon Gonzalez to listen to her during her three-minute testimony rather than whisper to each another. "Change business as usual to business that serves the needs and future of this community. It is these excuses that have left Kona so bereft of infrastructure and public facilities."
Of the 13 people who testified in regard to the proposed amendments for Palamanui, a majority noted their support for the project that would build a 20,000-square-foot building for a future West Hawaiçi community college campus. Harris said construction of the community college building could get under way as early as 2010 and be completed in 2011.
"As we plan for the growth of the Kona region, we must not draw hard lines that limit Palamanui to bring to fruition higher education to our community," said Bo Kahui. "Because of the economy they may not be able to sell those homes, so, delaying the park isn't unreasonable, but when we look in terms of today the community college needs to get started right away."