Woo vs. Harmon - Witness Guy Lam

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

CV05-00030 DAE KSC

U.S. District Court For the District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

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DEFENDANT’S WITNESS

GUY LAM

Big Island Contractor; formerly with Bishop Estate real estate development subsidiary, Keauhou Kona Resort Company.

Address to be determined.

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NEW DISCOVERY (02-07-09): More undisclosed conflicts of interest between Judge Barry Kurren, Faye Kurren, Tesoro Hawaii, Dan Inouye, Daniel Akaka, Ralph Parsons Company, Bechtel Corporation, Kamehameha Schools, Keahou Kona Resort Company, Guy Lam, Guido Giacometti, Judge Robert Faris, Peter Savio, Charles Schwab, Robert Herkes, Mary Lou Woo, Lyn Anzai, etc.:

January 28, 2005

Kona project seeks OK by tying to UH

Pacific Business News (Honolulu) - by Nina Wu

At a time of increased sensitivity to development near Kona, plans for a new golf course community are moving ahead, with approval hinging on a decision by the state Land Use Commission.

Hiluhilu Development LLC, a partnership between Kona contractor Guy Lam and financier Charles Schwab, is proposing to build Palamanui, a mixed-use golf course community on 725 acres north of Kailua-Kona on the Big Island.

Hiluhilu seeks the Land Use Commission's approval to reclassify the lands from agricultural and conservation to urban.

The commission held the first round of public hearings on the project in December and has scheduled a second round next month. A decision is expected in March.

As other Kona projects have recently run into significant community opposition and legal challenges, most notably the Hokulia development, the Palamanui group is counting on its partnership with the University of Hawaii to smooth over any objections.

Palamanui, which Lam estimated will cost about $200 million to build, will provide much of the infrastructure needed for the university to expand its presence in Kona.

As part of Palamanui, Lum will build University Village Center, which will include University Village Inn, a 120-room hotel, as well as a 10-acre medical campus, 50-acre research and development park and 28 acres for commercial use.

Palamanui will offer 845 residential units, including a mix of ocean view estates, golf view lots, patio homes and two- and three-bedroom condos, along with apartments, international student housing and senior housing.

Planned average prices for the homes range from $240,000 to $1.5 million.

The 18-hole golf course will be open to the public, according to Lam, a graduate of the Punahou School who has worked with Schwab on a number of other Big Island projects, including the exclusive Nanea Golf Club.

Lam's company, Keauhou Kona Construction Corp., has built roads, sewage treatment plants and an aquatic center and redeveloped Parker Ranch Center.

In 2000, Hiluhilu purchased the land to develop Makalei Estates, offering 80 three-acre luxury home sites, northeast of the proposed development.

The purchase of those lands included the site now being proposed for Palamanui.

Not another Hokulia

Developers of Palamanui have faith that their expertise and collaboration with the university, as well as their long-range approach, will help overcome potential hurdles.

"We are building a master-planned community where we will have a village commercial core with mixed-use, single-family, multifamily and affordable housing all mixed in one community," Lam said.

The developers began discussing the project with university officials two years ago, according to Guido Giacometti, a consultant for the project.

Giacometti said Palamanui is far different from Hokulia, the luxury estate project that was stopped by a state judge who ruled the developer should have sought reclassification of the land before starting construction.

"The question for Hokulia is, would it be reclassified," Giacometti said. "We're going down a different path. We started our petition for reclassification a couple years ago."

Public resistance, however, played a role in halting a proposed hotel and commercial project along the crowded Queen Kaahumanu Highway in North Kona in September. Residents say the roads are too crowded to handle more traffic.

Smart partnering

Perhaps one of Hiluhilu Development's strongest bargaining chips is its agreement with the University of Hawaii to help build infrastructure necessary for its new West Hawaii campus, including roads, water hookup, wastewater treatment system and utilities.

In a memorandum of agreement, Hiluhilu will build classrooms, offices and shared roadway access to University Village from Queen Kaahumanu Highway. Tentative plans also include an agreement to lease about 15,000 square feet to the university for temporary use until its campus is built.

The university acquired the 500-acre site adjacent to Hiluhilu's proposed development in 1991, but never built a campus.

"The principal and basic commitment we made in proposing this project is to assist the university with its infrastructure needs," Giacometti said. "We want to promote the university's presence. It will helps us with sales and real estate."

Jan Yokota, director of capital improvements for the University of Hawaii, said she supports Hiluhilu's project.

Classes for the University of Hawaii Center at West Hawaii, an affiliate of Hawaii Community College, are currently being held at the Kealakekua Shopping Center in South Kona.

"We'd like a more suitable space and a more central location," Yokota said. "With the traffic the way it is, it takes awhile for people to get down there."

Bruce Coppa, a business consultant and former land use commissioner, said the developers are smart to join with the university.

The development will likely create jobs and help address the infrastructure needs around the site. But he said the commission also will need to consider cultural issues because the site is within the ahupuaa of Kau, bordering Hawaiian homestead lands.

"Every development has got to address culture, infrastructure and resource," he said.

Palamanui was the name by which the area was known long ago and may have referred to the use for sacred purposes of the native lama tree, which grows on the land, according to the environmental impact statement. Kupuna said the land was known for its medicinal plants and trees.

Reach Nina Wu at 955-8038 or nwu@bizjournals.com.

http://www.kycbs.net/BH-Settlement-Chronology.htm

http://www.kycbs.net/Bechtel.htm

http://www.kycbs.net/Ralph-Parsons.htm

http://www.kycbs.net/Tesoro.htm

http://www.kycbs.net/CV05-00030-Witness-Akaka-Daniel.htm

http://www.kycbs.net/CV05-00030-Witness-Anzai-Lyn.htm

http://www.kycbs.net/CV05-00030-Witness-Faris-Robert.htm

http://www.kycbs.net/CV05-00030-Witness-Giacometti-Guido.htm

http://www.kycbs.net/CV05-00030-Witness-Inouye-Dan.htm

http://www.kycbs.net/CV05-00030-Witness-Kurren-Barry.htm

http://www.kycbs.net/CV05-00030-Witness-Savio-Peter.htm

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NEW DISCOVERY (06/25/08):

LAND USE COMMISSION
MINUTES OF MEETING

December 9, 2004

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COMMISSIONERS PRESENT: P. Roy Catalani
Isaac Fiesta
Michael Formby
Steven Montgomery
Randall Sakumoto
Peter Yukimura

COMMISSIONERS ABSENT: Kyong-SU Im
Lisa Judge

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DOCKET NO. A03-744 HILUHILU DEVELOPMENT, LLC

Chair Catalani stated that this was a hearing on Docket No. A03-744 Hiluhilu Development, LLC in order to reclassify approximately 725.2 acres of land currently in the Conservation and Agricultural District in to the Urban District for residential, golf course, and mixed uses at Kau, North Kona, Hawaii....

Chair Catalani also noted that for the record, that he is a law partner with Rush Moore Craven Sutton Morry & Beh and that the owner’s representative, Guido Giacometti, is the spouse of a partner in the firm. Chair Catalani added that he personally has no financial interest in this matter and will continue to participate in the proceedings.

APPEARANCES
Alan Okamoto, Esq., represented Petitioner
Jerel Yamamoto, Esq., represented Petitioner
Guy Lam, Principal of Hiluhilu
Guido Giacometti, the Owner’s Representative
Norman Hayashi, County of Hawaii Planning Department
Bobbie Leithead-Todd, Esq., represented County of Hawaii Planning Dept.
John Chang, Esq., represented State Office of Planning
Abe Mitsuda, State Office of Planning....