State assembles EIS notice in attempt to develop Leiali‘i - Affordable Hawaii housing project in revival  


By Chris Hamilton, Staff Writer
reprinted courtesy Maui News 2/28/10


Views from the makai side of property planned for development of future phases of the Villages of Leiali‘i includes already-developed homes near the Lahaina Civic Center. The state has issued an environmental impact statement preparation notice for continuation of the project planned since the late 1980s. The project was stalled in the 1990s, and until last year, by a legal dispute over the state selling ceded lands.

 

LAHAINA - With the housing market still wobbling like a Front Street reveler on Halloween, West Maui continues to have a glut of market-priced homes.

But affordable houses remain very much in demand. The region's visitor industry workers have a "critical" need for homes they can afford to buy, a recent state-issued report said.

So it's a great idea for the state to revive the Villages of Leiali'i affordable housing project, said West Maui Rep. Angus McKelvey.

After gaining a U.S. Supreme Court decision and a state law enabling it to sell ceded lands to non-Hawaiians, the state Hawaii Housing Finance & Development Corp. has assembled an environmental impact statement preparation notice for the latest attempt to develop the Leiali'i project.

The state plans to seek a developer to build up to 4,000 homes. Half of the homes or rental units would be sold or leased in the "affordable" price range, according to a planning document by consulting firm Belt Collins.

The Leiali'i housing project is situated on 1,033 acres of empty former sugar cane fields, which are classified as ceded lands formerly owned by the Hawaiian monarchy. If the project comes through, Leiali'i could provide 2,000 homes in the lower- and moderate-income price ranges.The state housing agency's preliminary environmental notice for the renewed project does not say how much the average home might cost or provide an estimate for the project's overall price tag or how long it would take to fully develop.

Planning for the Villages of Leiali'i project dates back to the late 1980s. In 1990, the state housing agency received approval from the Land Use Commission to reclassify approximately 1,098 acres from agricultural to urban use, and an affiliate of C. Brewer Homes was selected as the developer of the planned community. After the development of nearly $20 million in infrastructure, including roads, sewer, water and drainage systems for the development's first phase, the Office of Hawaiian Affairs sued to stop the state from selling lots at Leiali'i because the project is on ceded lands.

Ceded lands refers to former Hawaiian crown and government lands transferred to Hawaii when it became a state in 1959. Under the state's Admission Act, ceded lands were to be held for the public good, including the benefit of Native Hawaiians. The legal dispute raged for years, putting the state's Leiali'i project and an affordable housing project on the Big Island on hold.

According to the state housing agency's new proposal, the state was finally able to move ahead with the Leiali'i project in July after the U.S. Supreme Court overruled the state Supreme Court's decision to bar ceded land sales. The high court said the state does have the right to sell ceded lands to third parties, with conditions.

So for construction and sales to occur within Villages of Leiali'i, the state will need to follow a law established last year.

The Legislature must approve the sale by a supermajority vote preceded by a community meeting and land appraisal, according to Act 176.

The state Hawaii Housing Finance & Development

Corp. said it would also lease property in the Leiali'i project to comply with the new law.

Foster Ampong, a Native Hawaiian activist who grew up just down the street from Leiali'i, said the "so-called ceded lands" debate is not done just because the U.S. Supreme Court made a ruling or the Legislature passed a law.

"We, and by that I mean many of us in the Native Hawaiian community, believe it is still an issue, and the state has no right to sell or trade any of our lands," Ampong said.

Just to be clear, Ampong said he is very much in favor of the state building affordable housing, which is greatly needed. But there is enough land available without clouded titles to provide housing for Hawaii residents, he said.

"After the ruling and actions regarding the selling of the ceded lands, most of the people just let it float by," said Ampong, who has researched the many of Lahaina's land titles going back generations. "But there are those of us that are following Leiali'i very much so."

While the case made its way slowly through the courts, the Department of Hawaiian Home Lands took over development of the first 21.5-acre phase of the Leiali'i development, building homes on 104 lots near the Lahaina Civic Center. Infrastructure for that development had been done earlier by the developer for the state housing agency. The department also purchased another nearly 51 acres for another phase of the Leiali'i' project.

"Native Hawaiians were never part of Leiali'i until we sued," Ampong said.

The new project version is mauka and parallel to Honoapiilani Highway on two rectangular parcels of land about 500 acres each. It will be master planned to be environmentally friendly, landscaped and walkable, use renewable energy sources, have new water reservoirs and wells, and provide amenities, such as parks, commercial centers and schools. A golf course had been originally planned as part of Leiali'i, but revised plans don't include one for the development.

Leiali'i also is conveniently located near West Maui resorts where many residents of the new housing development have a short ride to work in their vehicles or on public buses that would serve the development's neighborhoods.

The Leiali'i project remains in the West Maui Community Plan, and state officials said development follows the principles set out in the recently approved Countywide Policy Plan, which is part of the General Plan 2030 Update.

The Hawaii Housing & Finance Development Corp. is the state agency charged with financing and developing homes for the state's work force.

The state is trying to entice private developers to pay to build the project, while the government provides the land, planning, permits and zoning, according to the Villages of Leiali'i proposal.

Susan Sakai, Belt Collins vice president/director of planning, said members of the public should mail their comments to the Honolulu company by April 7. The next step is for the preparation of a draft environmental impact statement. That will examine issues such as Leiali'i's socioeconomic impact and determine the extent of archaeological features at the project site.

McKelvey said he's more worried about whether the glut of homes on the market will make it more difficult for the affordable houses to get built.

Developers often rely on presales of their market-priced homes in order to finance the rest of their project. The poor economy has led to hundreds of abandoned and foreclosed homes.

State Sen. Roz Baker, who represents West and South Maui, said she was pleased to see the state move ahead with Leiali'i and give residents a chance to become homeowners.

"This is a very good opportunity because so much of the infrastructure, planning and entitlements are already there," Baker said. "They'll still need some resources, but it's definitely possible."

Project plans can be viewed online on the state Department of Health's Office of Environmental Quality Control Web site.

It can be found at oeqc.doh.hawaii.gov/Shared%20Documents/EA_and_EIS_Online_Library/Maui/2010s/2010-03-08-MA-EISPN-Villages-of-Leialii.pdf

* Chris Hamilton can be reached at chamilton@mauinews.com.

Fact Box

Villages of Leiali'i project: Having a say:

To submit comments on the proposed Villages of Leiali'i project, send them to:

* Hawaii Housing Finance & Development Corp., 677 Queen St., Suite 300, Honolulu 96813.

Contact: Project Manager Stanley Fujimoto, (808) 587-0541 or via fax at (808) 587-0600.

* Belt Collins Hawaii, 2153 N. King St., Honolulu 96819.

Contact: Susan Sakai, (808) 521-5361 or via fax at (808) 538-7819.

 


reprinted courtesy Maui News 2/28/10, original link www mauinews.com/page/content.detail/id/529954.html

 

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