Kaneohe developer fined $2.4M in wetlands violations
3 minute readPublished: Saturday, October 18, 2025 at 10:05 am

Kaneohe Developer Fined $2.4 Million for Wetland Violations
The Hawaii Department of Health (DOH) has levied a $2.4 million fine against Wailehua I, LLC, managed by H.K. Development, LLC, for illegally discharging soil and construction materials into wetlands. The violations occurred without the necessary state authorization.
A Notice of Violation and Order (NOVO) issued last week details the findings. The DOH determined that the company placed unpermitted fill material on wetlands along Wailehua Road, beginning in 2015. The company has been ordered to immediately cease further discharges and remove the unauthorized material within 90 days.
The violations stem from a referral made in 2021 by the U.S. Army Corps of Engineers, which had previously investigated unpermitted land alteration on the 2.46-acre property. Site inspections and aerial imagery from 2015 revealed that approximately 1,000 cubic yards of fill material were placed on about 1.2 acres of wetlands as part of a residential subdivision project. The U.S. Army Corps of Engineers withdrew its federal violation in 2020 following changes to federal wetland regulations, but the case was referred to state authorities.
The DOH found Wailehua I, LLC responsible for 120 counts of violation between October 2015 and February 2016. Under state law, it is illegal to discharge any pollutant, including soil, sediment, or construction materials, into state waters without a permit or variance. The department noted that ongoing failure to remove the fill material could lead to additional penalties, with state law allowing fines of up to $60,000 per day, per violation.
In addition to the fine, the company must hire a licensed engineering firm to develop a Corrective Action Plan within 30 days of retention. The plan must outline how the fill will be removed, what best management practices will be used, and how the property will be stabilized to prevent erosion. Once approved by the Clean Water Branch, the company will be required to restore the site and submit documentation of the completed work. The respondents have 20 days to contest the notice and request a hearing. If the penalty is not paid within 30 days after becoming final, the DOH may initiate a civil lawsuit to recover the amount owed.
Wetlands, crucial for environmental health, are defined under state law as areas where the water table is near the surface and supports hydrophytic vegetation. They play a vital role in filtering pollutants, absorbing stormwater, and supporting native wildlife. The DOH emphasizes that violations of this kind threaten both water quality and ecosystem health.
BNN's Perspective: This case highlights the importance of adhering to environmental regulations, even when federal oversight is relaxed. While the developer may argue about the specifics of the violations, the significant fine underscores the state's commitment to protecting its wetlands. Striking a balance between responsible development and environmental preservation is crucial for the long-term health of our communities.
Keywords: Kaneohe, developer, fine, wetlands, violations, Hawaii, Department of Health, DOH, Wailehua I LLC, H.K. Development LLC, environmental regulations, water pollution, Clean Water Branch, Corrective Action Plan, ecosystem health, construction materials, soil discharge, unpermitted fill, residential subdivision, Angie Kim