REP LAAC 019 2025-08-05 2024-2026

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REPORT OF THE LEGISLATIVE APPROVALS AND ACQUISITIONS COMMITTEE DATE: August 5, 2025 PLACE: Council Chambers Hilo, Hawaii TIME: 9:31 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 375Bill No. 67 Your Committee on Legislative Approvals and Acquisitions, to which was referred Bill No. 67, reports as follows: Bill No. 67, transmitted by Managing Director William V. Brilhante, via Communication No. 375, dated June 20, 2025, amends Section 25-8-33 (City of Hilo Zone Map), Article 8, Chapter 25 (Zoning) of the Hawaii County Code 1983 (2016 Edition, as amended), by changing the Zone Map Classification from Single Family Residential—10,000 square feet (RS-10) to General Commercial—10,000 square feet (CG-10) at Waidkea, South Hilo, Hawaii, covered by Tax Map Key: 2-2-022:022 (Applicant: Correa Ohana, LLC) (Area: approx. 33,180 square feet). The Windward Planning Commission forwards its favorable recommendation for the requested change of zone, which would allow the applicant to demolish the existing, single-family dwelling and garage and construct a multi -family apartment complex. The property is located at 1198 Kino`ole Street. Legislative Approvals and Acquisitions meeting of July 22, 2025 Planning Director Jeffrey Darrow and Deputy Director Michelle Alin, Office of Housing and Community Development (OHCD) Administrator Kehau Costa, Deputy Corporation Counsel (DCC) Jean Campbell, and Managing Members of Correa Ohana, LLC, Hank Correa, Jr. and Hank Correa, III, were present for questions. Committee Chair Heather L. Kimball announced an error found on the map of Bill 67, listing Kamand Street twice and it has been corrected via Communication No. 375.2, submitted by Ms. Kagiwada. Mr. Darrow provided a PowerPoint presentation regarding the change of zone application. Committee Member Jenn Kagiwada questioned the need for commercial zoning versus multi -family residential zoning as the proposed project being identified is a multi -family apartment complex. Mr. Darrow explained that the focus is the change of zone and not the proposed development but further noted that multi -family residential provides only limited possibilities for the area; the application for CG-10 is consistent with the area and provides multiple opportunities for development. Mr. Correa also replied that his focus has always been on housing and that the affordable housing route is the primary goal so long the rents justify the costs, adding if it does not pan out there are other opportunities as commercial allows for mixed use; for example, a mom-and-pop business up front with a multi -family unit behind. Ms. Kagiwada noted the possibility for dense affordable housing and appreciates the efforts for such a housing project, however, has concerns that it will end up being another commercial space should the housing project not be realized. LAAC Report No. 19