By HARRY EAGAR, Staff Writer
reprinted courtesy Maui News 11/6/97
WAILUKU -- With dozens of families preparing to move into Napilihau Villages, county officials were meeting this morning to decide how to react to a Hawaii Supreme Court decision Wednesday that the project's special management area permit is invalid.
Developer James G. Lee Sr. of Honolulu also rushed to Maui. Lee did not hear about the case until late Thursday. His first reaction was ``this is terrible,'' he said Thursday. He then wondered what it means for the people who have bought townhouses and ``are getting ready to move in.''
Lee's company, JGL Enterprises Inc., obtained a certificate of occupancy for about 70 completed townhouses. But if there is no valid SMA permit, the certificate may not be valid.
Deputy Corporation Counsel Gary Zakian said he didn't know how that would work out.
County Planning Director David Blane said he could not think of a precedent. He was planning to meet Zakian later in the day.
Isaac Hall, who represented Kahana Sunset Owners Association in their case against the project, said today he had not had a chance to talk with his clients, but ``I'm certain we're sympathetic'' to the plight of the purchasers. ``I don't think anybody is going to order them to tell people to move out.''
Hall said state law is ``really clear'' that other permits cannot be issued until a valid SMA permit is in force.
JGL was issued an SMA for its 296-unit development in 1994, and the county issued building permits for 76 townhouses in the first phase. Lee says about 90 percent of those have been completed and sold.
The county also has issued permits for Phase II, but construction has not started.
Hall said the Supreme Court decision makes the building permits invalid, and his clients want to be sure that no more work is done.
The Napilihau Villages project was opposed on several grounds and went to a contested case hearing. After that, the Maui Planning Commission issued an SMA permit.
The Kahana Sunset owners appealed to 2nd Circuit Court, and Judge Shackley Raffetto confirmed the commission's decision. The condo owners then appealed to the Supreme Court.
Hall said this week's decision follows closely the line of argument he used in Circuit Court.
The drainage for Napilihau Villages feeds into the condo, then Alaeloa Bay.
JGL avoided doing an environmental assessment by claiming an exemption based on small impacts.
``The exemption process is valuable,'' says Hall, but this was ``an abuse of the exemption process.''
It should apply only when only minor structures are involved, he says. ``We're talking about a major drainage improvement.''
Hall says he believes ``large projects that send drainage into ocean waters that are largely used for recreation and other purposes'' probably will be forced to do environmental assessments more often in the future.
As for the existing townhouses, Hall said, ``We're going to have to sort this out.''
The Supreme Court told the Planning Commission to reopen the special management area permit application. This would mean a full series of public hearings.
reprinted courtesy Maui News 11/6/97
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