BREAKING: Big Island Developer Triumphs Over State

In a decision that could have far-reaching implications for land use law in Hawaii, a judge has reversed a decision by the state to revoke the urban land classification of a project under development in South Kohala on the Big Island. 

The rare move by the state Land Use Commission earlier this year came after developers, Bridge Aina Lea and DW Aina Lea, failed to meet a deadline for constructing 385 affordable housing units.

The LUC reclassified the land back to its original agricultural designation raising a host of questions about what this would mean for the housing units already built on the property and whether this effectively halted future development plans.

Prosecuting attorney, Bruce Voss, told Civil Beat the following by email Friday night:  

Late this afternoon, in a rather historic decision, Circuit Court Judge Elizabeth Strance reversed the Land Use Commission, and ordered the LUC to void both its Order to Show Cause and its Final Order reclassifying the Aina Lea property to agricultural use.  Judge Strance found that the LUC violated its governing statute, HRS 205, violated due process, and violated the Equal Protection Clause of the U.S. Constitution.  Judge Strance stated that the LUC had lost sight of its mission in this case.  Assuming the Project can still get financing after the delays caused by the LUC’s action, the Project can now resume.  The LUC’s illegal action had created a dark cloud not just over the Aina Lea Project, but all major development projects in Hawaii.

Note:  A separate federal case has also been brought against the LUC. Bridge Aina Lea is suing the commission for $35.7 million. The developer was in the process of selling the 1,000 acre parcel of land to DW Aina Lea, but except for a parcel designated for affordable housing, the sale fell through when the LUC revoked the urban use classification. 

(Correction: A previous story said it was a federal judge that issued the ruling, it was a state judge.)