State panel reclassifies Kihei land

MAKENA - Over the objections of Maui County, the state Land Use Commission on Friday approved a district change that could lead to A&B Properties' housing development proposed for north Kihei.

The Land Use Commission voted 8-1 Thursday during a two-day meeting at the Maui Prince Hotel to approve a district boundary amendment from agricultural to urban for the $151 million project.

Maui County Planning Department Director Jeff Hunt previously asked the commission not to approve the project, citing the county's policy of not supporting developments that require a community plan amendment until the update of the Maui County General Plan and Island Plan are completed in the next year or more.

The state Land Use Commission reclassified 94 acres along Piilani Highway and the south side of the Waiakoa Gulch for a 600-unit residential project. The development would be a mix of market-rate homes and affordable housing.

But Friday's commission decision doesn't mean that the debate is finished.

Now that the LUC has reclassified the land as urban, the county may establish zoning there. During an LUC hearing held in August, county attorneys noted that in addition to a community plan amendment, A&B still needs approvals from the county Planning Department, the Maui Planning Commission and the County Council.

A&B has also lobbied the county's General Plan Advisory Committee to include the site within future urban boundaries. Last year, Mayor Charmaine Tavares took the position not to support amendments to county community plans or districts until the General Plan update is completed.

A&B Properties Vice President Grant Chun has asserted that the development will provide for a critical need for affordable housing on the Valley Isle, which the county's policies endorse.

Part of the site is in use for a seed corn operation, but A&B representatives have said that two-thirds of the land is not viable for farming. Along with the homes, the development would contain about 1.4 acres for commercial development, bus stops, parks, trails, a new school and roads as well as independent water and wastewater systems.

Critics, though, have complained that the development will add to existing congestion along Piilani Highway.

A&B already completed for the site a final environmental impact statement, which concluded there are no known cultural sites on the former sugar cane land and no endangered or threatened native species of plants, insects, mammals or birds. According to A&B's final EIS, the company hopes to complete the project by 2016.

On Friday, county planner Ann Cua said that the department had recommended adding a condition to the project requiring the developers to return to the state commission if the project area is not ultimately included for development in the updated General Plan. However, the commission did not include the recommendation.

* Maui News staff writer Ilima Loomis contributed to this report.

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