How development agreements are reviewed and ended

(a) In accordance with this section, the designated agency shall conduct periodic reviews of all development agreements to determine compliance with the terms and conditions thereof by the parties thereto. (b) Each development agreement shall specify requirements for periodic review thereof by the designated agency for compliance with the agreement; provided that such reviews shall be conducted at least once a year. The designated agency may conduct reviews at more frequent intervals, as specified in the development agreement, or if the designated agency has reason to believe the agreement is being or has been violated. (c) If the designated agency finds that any party has committed a material breach of the terms or conditions of a development agreement, the following procedure shall be followed. (1) The designated agency shall, within 15 days of its making such finding, notify the party in writing, setting forth the specific breach found and the evidence supporting the finding, and provide the party a reasonable time within which to cure the breach. (2) The designated agency shall give the party the opportunity to request a hearing before the director of planning and permitting or the director’s designee to rebut the findings of the designated agency, or if the designated agency finds that an amendment to the agreement would meet its concerns, an opportunity to consent to the amendment. (3) If the party fails successfully to rebut the findings at the hearing or to cure the breach within the time provided, or if the designated agency, after obtaining the consent of the party found to be in breach, wishes to propose an amendment to the development agreement to meet the designated agency’s concerns, it shall notify the council. (4) The council thereafter may, but need not, take one of the following actions: (A) Unilaterally terminate the agreement and impose any other penalties which are stated in the agreement; or (B) Amend the agreement pursuant to § 33-1.9 , so that the party is no longer in material breach thereof. (d) The designated agency shall establish rules of procedure for any party found to be in material breach to rebut the finding. The hearing procedures shall conform to the requirements of HRS Chapter 91, relating to contested case hearings. (e) Nothing in this article shall preclude the council, following termination of a development agreement, from taking action with respect to the subject land, including rezoning thereof, independent of the agreement.