Part of Mount Olomana’s hillside in Windward Oahu may soon be developed with luxury homes in a gated community, but some area residents complain that the project on agricultural land is an abuse of lax state and county regulations governing "farm dwellings" in agricultural subdivisions.
Bridge Real Estate Hawaii is selling 23 million-dollar lots advertised as "luxury Hawaiiana living at its finest" on the 62-acre site between Olomana Golf Course and the existing Norfolk Subdivision.
But the project called Olomana Heights technically is an agricultural subdivision where houses are permitted only as an accessory to farming.
An approval for the subdivision, which divides the property into lots from two to eight acres, was granted in 2008 by the city Department of Planning and Permitting.
A prior owner of the site, Sound Investments LLC led by Chris and Kimberly Dey, applied for and received the approval based on a plan they said was intended to return the fallow land to "alternative" agriculture uses.
Another developer, Olomana Hui LLC, which is managed by Bridge Real Estate managing partners Chad Waters and Tyler Greene, acquired Sound Investments in April from the Deys and is moving forward.
An agricultural feasibility report in the subdivision application said a relatively steep slope on much of the land and low soil productivity are not well suited for large-scale agriculture, and that dividing the property into mostly 2-acre lots would make farming more viable, especially if lot buyers live on the property because that eliminates housing costs elsewhere for a grower.
The report suggested that lot buyers can grow fruit trees, ornamental plants, herbs and other specialty crops, and that small-scale farming would put land back into agricultural production after its former use for stabling and pasturing horses was discontinued in the early 1980s.
"The 62-acre site has not been put to productive agricultural use for over 30 years," the application said. "Based on the history of the property and its present condition, it is evident that the cultivation of traditional agricultural crops on the site is not viable. The proposed use of the property would constitute a significant improvement over its present use."
Some Kailua residents, however, say the project has nothing to do with agriculture.
"It seems to be a way to get around having agricultural land protected," said Chuck Prentiss, chairman of the Kailua Neighborhood Board, which has seen the lot advertisements and has had discussions with city officials about the project. "It really is gentlemen’s estates."
Art Challacombe, deputy director of the Department of Planning and Permitting, said the city has received complaints about Olomana Heights but can’t do anything when a subdivision conforms to the city’s Land Use Ordinance.
"Basically, if you have a horse or a couple of macadamia nut trees, you are a farmer," he said during a Planning Commission meeting earlier this month. "Essentially our enforcement is weak because of that."
The situation is a statewide issue that grew out of the state’s 1961 Land Use Act, which sought to preserve open space and generally permit one or two "farm dwellings" on lots as small as two acres if they are accessories to a primary agricultural operation.
But state and county officials generally don’t ensure that farming takes place on agricultural subdivision lots after homes are built, so there is a lack of enforcement of already lax rules.
On the neighbor islands there are projects where developers have subdivided and sold former macadamia nut and coffee orchards as homesites. Perhaps the most controversial ag subdivision in Hawaii is Hokuli‘a, a luxury home lot project on Hawaii island developed around a Jack Nicklaus-designed golf course. About 200 acres of coffee trees leased to a commercial farmer were included to qualify the project on farmland.
Opponents to Hokuli‘a contested the project in court, and in 2003 a Circuit Court judged ruled that Hokuli‘a was an illegal use of agriculture land. But before the state Supreme Court could hear an appeal that could have set a precedent, the developer and project opponents settled the case.
In Kailua, residents have opposed development on Mount Olomana since the late 1960s, forming the Save Mount Olomana Association to protect the distinct peak, which can be seen from Waimanalo, Kailua and the Pali.
As recently as the 1990s, the organization mobilized to battle development, but in more recent years its presence has waned.
Sound Investments, previously known as Tivoli Investments LLC, acquired the Olomana Heights site in 1999, according to property records. The agricultural feasibility report was submitted in 2006 and led to subdivision approval in 2008 for the project previously referred to as Olomana Vista Estates and the Dey Family Subdivision.
Sound Investments listed the undivided parcel for sale in 2011 for $6.8 million and later reduced the price to $3.5 million.
A price was not disclosed for the purchase by Olomana Hui.
Waters said Olomana Hui is sensitive to the agricultural subdivision issue, and that the company will implement a fruit tree program. He also said developing the site will rid it of invasive species such as albizia and improve the area. "We hopefully will add value to Kailua," he said.
Contractor Goodfellow Bros. began clearing the land recently to prepare for infrastructure and lot construction work that the subdivision application estimated would cost $7.8 million. Site work is projected to be finished in December.
Lot sales, which start at about $1 million, are expected to begin in 30 to 45 days, according to Greene. Packages for custom homes also are being offered.
Bridge Real Estate has advertised Olomana Heights in Luxury Home Magazine, billing it as Kailua’s "newest private gated community" and "luxury Hawaiiana living at its finest."
Michael Garcia, an agent with Bridge, said interest from prospective buyers has been strong, with more than 80 reservations suggesting that the project will be a quick sellout.
