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<br /> Communication 463 <br /> Bill 156 <br /> Page 2 <br /> Councilmember Holschuh sought clarification on current Chapter 11 requirements from Planning <br /> Director Chris Yuen. Mr. Yuen explained that the recently adopted revisions to Chapter 11 <br /> focused primarily on closing the loophole of accepting "in lieu oF' fees rather than actual <br /> affordable housing units for residential re-zonings. No changes were made to affordable housing <br /> requirements for resort and industrial developments when Chapter I 1 was amended earlier this <br /> year. Mr. Yuen explained that Bill No. 156 raises some issues that still need to be resolved, <br /> regarding who should meet the affordable housing requirement and who will bear the cost--the <br /> initial developer of the industrial subdivision or the end user. Also, it is difficult to determine the <br /> exact number of jobs that will be created upon final build-out of an industrial park. Finally, <br /> residential units to satisfy affordable housing requirements cannot be developed on industrially- <br /> zonedlands. Such units may need to be located off-site, and the Council may need to accept "in <br /> lieu of fees to meet the housing requirements for industrial park developments. Mr. Yuen <br /> summarized by stating that this bill represents a basic policy decision for the Council, "Do you <br /> want to impose affordable housing conditions on industrial park subdivisions?" <br /> Councilmember Jacobson expressed support for Bill No. 156 as an "elegant" solution to an issue <br /> that the County has not dealt with previously. "It is time to do this," he stated. Mr. Jacobson <br /> stressed that the County needs to assure that affordable housing is provided for workers in <br /> proximity to their jobs. <br /> Councilmember Isbell also voiced support for this bill. Ms. Isbell stated that the bill does not <br /> require the developer to build the homes; anon-profit corporation can build the homes instead. <br /> Ms. Isbell explained that there is a huge problem in Kona finding workers to fill jobs at Kaloko <br /> Industrial Park. The jobs don't pay well, and workers have to drive long distances to work there. <br /> She said that on-site housing is a "natural" for large industrial parks. <br /> Councilmember Ikeda was concerned about the impact of this bill on small business owners. He <br /> expressed concern about increased costs for the end users of industrial subdivisions, the small <br /> business owners. <br /> Councilmember Higa stated that he wanted to "level the playing field." In other words, eliminate <br /> the existing exception for home improvement centers in Section 11-4(d), and include an <br /> affordable housing requirement for large commercial developments, as well as for large <br /> industrial developments. <br /> Councilmember Hoffmann clarified that he did not add the exception for home improvement <br /> centers; this exception was already in the law. Mr. Hoffrnann reiterated the County's <br /> responsibility to make this policy decision. "When a development creates 2,800 or more jobs, we <br /> need to plan for housing for the future workers. The time to do this is now." Mr. Hoffrnann <br /> clarified that the requirement, as stated in Bill No. 156, would be assessed on the initial <br /> developer. He explained that there are a number of ways for the developer to satisfy this <br /> requirement under the existing code. <br /> PC REPORT NO. 36 <br /> <br />