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Committee amends and forwards 10-year extension request for Kona Country Club project amid debate over infrastructure and housing credits

Legislative Committee on Legislative Approvals and Acquisitions · January 22, 2026
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Summary

After lengthy debate about infrastructure, affordable-housing credits and developer investment, the committee approved an amendment and voted to forward Bill 121 (Kona Country Club Inc.) as amended to full council with a favorable recommendation; the amendment requires re-review if conditions are unmet.

The legislative committee voted to forward Bill 121, with an amendment, to full council after prolonged debate about infrastructure capacity, affordable-housing credit validity and developer commitments.

Planning Director Jeff Darrow summarized the project's history: the original rezoning approved roughly 51 acres for multifamily residential (RM-30) and the applicant reduced the plan from 60 to 29 units while addressing archaeology, drainage and other conditions. Sydney Fuquay, planning consultant for Kona Country Club Inc., told the committee the applicant has spent millions on mitigation work and infrastructure (including a new access road) and argued a 10‑year extension is realistic because financing and infrastructure work will take time.

Anne Bailey of the Office of Housing said post‑audit work following a 2023 audit led the office to revalidate affordable-housing credit balances and to invalidate certain credits previously thought transferable (including credits tied to a developer named Suffolk). Bailey said the office is working to reconcile records and will meet with the applicant to determine options under Chapter 11. She also noted there has been federal prosecution related to award practices in some developer cases.

Several council members voiced concerns. Council member Villegas opposed a 10‑year extension on principle, saying the proposal would add luxury units that strain local resources and do not provide authentic affordable workforce housing. Other members expressed concern about schools, roads, wastewater and water availability; Director Darrow and the applicant said many conditions have been met but that plan approval has lapsed and a new plan approval will be required.

Council member Inaba moved an amendment (communication 689.4) that removes the option for initial time extensions by council resolution and requires reconsideration if conditions are not met; the applicant accepted the amendment. Corporation counsel advised that the prior disclosure by Council member Kirkwitz did not present an apparent ethics-code violation and she could participate. The committee approved the amendment and then voted to forward Bill 121 as amended to full council; the clerk announced the motion carried with the necessary votes.