Commended and condemned.
That was the mix of sentiments expressed toward local real estate development firm Alexander & Baldwin Inc. at a public hearing Wednesday over the company’s plan to develop six homes on one oceanfront lot along Kahala Avenue in Honolulu.
The city Department of Planning and Permitting held the hearing to collect public input on A&B’s proposed $40 million to $45 million project.
Some Kahala residents who work as real estate sales agents praised the plan and thanked A&B for acquiring the property and 29 others on the same street about three years ago from Japanese billionaire Genshiro Kawamoto, who had left many of the parcels in shambles.
“I really feel that A&B has done a lot of homework and they really have us in mind,” said Claire Doi, a fourth-generation Kahala resident and agent with Berkshire Hathaway HomeServices Hawaii Realty.
“This is not an offensive project,” added another Berkshire agent, Elizabeth Worrall Daily, who said she was born and raised in Kahala.
Others accused A&B of being greedy and trying to subvert the intent of an original residential land plan for the Kahala Avenue neighborhood mainly made up of large estates.
“They are simply trying to make more profit at the expense of denigrating the neighborhood,” said Don Eovino, a developer who has built and owned homes on Kahala Avenue.
Eovino said language in the property deed restricts the lot to no more than one home, though A&B said a separate covenant attached to the land governs the use of the lot and does not restrict the number of homes.
A&B is seeking to build six homes on the 58,207-square-f00t lot at 4607 Kahala Ave. under city regulations that allow three two-family homes based on the property’s size and R-7.5 zoning. A&B alternatively could build seven single-family homes on the lot under the zoning code.
The proposed homes would be developed as condominiums in three two-story structures in which one home would occupy a single level in each building. Each home with about 5,000 square feet of living space would have its own pool but also share ownership of common areas.
Jeff Overton, a principal with local planning and design firm Group 70 International representing A&B, said the layout of the development project with one two-story building visible from the street behind landscaping and a privacy wall is a sensitive design in keeping with the character of the neighborhood. Two buildings closer to the ocean will be visible from the beach.
“It respects the qualities that exist today on Kahala Avenue,” he said at the hearing. “We’re proud of this project. We think it’s going to be a beautiful addition.”
Nearly all the public support A&B received at the hearing came from Berkshire Hawaii officials who also included principals Tracy Bradley and Earl Lee.
“I feel like A&B has been a wonderful neighbor in Kahala,” said Rachel Ross, another Berkshire agent.
On the opposing side, testifiers said they were concerned about A&B’s project pushing up property taxes based on the higher land value the developer will realize by building several multimillion-dollar homes on one lot. To break even, A&B would have to sell each condo for $6.7 million based on a $40 million development cost.
Chula Harrison, a 50-year Kahala resident, said her property taxes soared after one immediate neighbor replaced a beach house with a big home that they sold two years later. She said that A&B’s design may be called sensitive, but she believes the company is greedy.
Another longtime Kahala resident, Sylvia Himeda, added, “I’m in favor of single-family dwellings.”
The purpose of the DPP hearing was to collect public input on a special management area use permit that A&B needs to proceed with its project. Such permits, which in 2012 were made necessary for residential development of more than 7,500 square feet of living space, address impacts on the shoreline, beach and ocean. So some of the arguments raised don’t pertain to the issue being considered by DPP.
Covenants and deed restrictions are not something that DPP regulates or enforces. This would be a private matter between property owners, and several Kahala residents filed a lawsuit in May challenging A&B’s plan for 4607 Kahala Ave. on grounds including whether there is a limitation of one home on the lot.
The covenants and deed restrictions were drawn up by Kamehameha Schools, formerly known as Bishop Estate, when it leased lots for residential use and then later sold the fee-simple interest in the parcels. Some lots that have more than one home were grandfathered.
William Saunders, a 50-year Kahala resident and an attorney representing others in the lawsuit against A&B, said if the developer prevails it will open up much of Kahala and possibly other areas with large lots to more dense condo projects.
“Please deny this project,” he said at the hearing. “It will change the character of what was once a single-family — all single-family — neighborhood.”
DPP will accept written testimony on the permit application until Aug. 12. After that, the agency’s director will use the testimony along with project specifications and how they meet with regulations to help make a recommendation to the City Council. The council will then schedule a public hearing and decide whether the permit should be granted.