REP PC 006 01/03/2007 2006-2008 - Laserfiche WebLink

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Communication 32 Resolution 21 Page 2 of 5 expressing strong opposition to Resolution No. ZI-07 stating the proposal is very poor, based on false premises, will not achieve benefits it claims, is anti-competitive and unfair. It also stated the proposal will harm families by keeping the price of food high and enables supermarket chains to maintain such high food prices. Council Member Pete Hoffmann requested, as a matter of courtesy to Mr. Higa, that this item be postponed to the next scheduled Planning Committee meeting on January 18, 2007. The motion to postpone to the January 18, 2007 Planning meeting was unanimously approved. At the January 18, 2007 meeting members of the public presented oral testimony at the Hilo Council Room as fellows: • Anthony Long (in opposition); • Francis Benevides, Sr. (position is neutral; would like superstores to work with retailers; • Rufus Sonognini (in opposition); • Jeanne Ryan testified (in support); • Rich Hedges (in support); • Linda Hedges (in support); • Mark McNett (testified that people want stores like Wa1Mart, Sam's Club, Tazget, etc.); • Lary Saltzman (in opposition). Committee Chair Pilago noted written testimonies of David Nardini (in support), Mary Marvin Porter (in opposition), Charles Flaherty (in support) and oral testimony from Kelly Drysdale at the Kona Council office (in support). Committee Chair Pilago discussed the opinion of Corporation Counsel relating to disclosure of Council Member Yagong's employment as District Manager of Food Pantry, Ltd. and Kalama Beach Corporation and his oversight of several retail outlets. Chair Pilago noted that his January 2, 2007 response to Mr. Yagong's disclosure states he feels Mr. Yagong is able to be fair and impartial in deciding this matter and did not see a potential conflict that would require disqualification. Council Member Stacy Higa stated this has not been a popular Resolution but he proposed it to be consistent with other counties. In his research of big box stores, the "grocery" component intrigued him and noted that although he is pro business and believes competition is healthy, the magnitude is his concern and the resolution seeks to raise the level and set a cap limit at 20,000 SKU's. Having visited big box stores on the mainland he found that these superstores were always placed neaz an interstate with no other businesses nearby. He noted that history shows local farmers have been squeezed out and have to sell their produce elsewhere. Mr. Higa hoped the resolution passes to allow the Planning Director and the Commission to further study the matter. Council Member Hoffmann said he did not come to any conclusion but would like to see more public input and testimony. In Mc Hoffinamt's discussion it was noted that the Kona and Hilo Wa1Mart stores would not be affected by the resolution and that Costco, although larger in size, would also not be affected since it does not contain 20,000 SKU dedicated to groceries. Mr. Higa noted that the only example or comparative of a business that would be banned currently exists only on the mainland at this time. Mr. Higa further noted that in order for an establishment to be banned pursuant to the resolution, it had to satisfy all three categories: exceed 90,000 gross squaze feet, have more than 25,000 SKU and more than 20,000 gross squaze feet dedicated to groceries. PC Report No. 6