HomeMy WebLinkAboutCOM 0032.035 2006-2008`...,~
Harry Kim
Mayor
Dixie Kaetsu
Managing Director
~" t ,
` ~ f ' ~ - G 'j ~ r. Barbara Koasow
` - Deputy Managing Director
County of Hawaii
25 Aupuni Street, Room 21 S • Hilq Hawaii 96720-0252 • (808) 96I $211 Fax (808) 961 b553
KONA: 75-5706 Kuakini Highway, Suite 103 • Kailua-Kona, Hawaii 967A0
(808) 3295226 • Fax (808) 3265663
July 23, 2007
Honorable Pete Hoffmann, Chairman
and Members of the County Council
County of Hawaii
333 Kilauea Avenue
Hilo, HI 96720
Dear Chairman Hoffmann and Members:
Change of Zone Application (REZ 07-000065)
Applicant: Cynthia Thomas
Request: RS-10 to MCX-20
Tax Map Key: 2-2-36:90
Change of Zone Application (REZ 06-000038)
Applicant: Guy Nakao
Request: A-la to CN-20
Tax Map Key: 2-3-37:9
Change of Zone Application (REZ 06-000047)
Applicant: Malulani, Inc.
Request: A-la to RM-I.5
Tax Map Key: 2-3-37:15
~ounty Council Initiated
Amendment to Chapter 25 (Zoning Code) of the Hawaii County Code 1983
(2005 Edition. as amendedl relating to Retail Establishments
As required by Chapter 4, Sec. 6-4.3(C), Hawaii County Charter, transmitted herewith for the County
Council's consideration and action are the Planning Commission's letters and enclosures regarding the
above-referenced requests.
SincSinc re
Harry Kim Comm. No. 3a • 3S
Mayor
Ref. To: cnw~t ~ ~
Enclosures Ref. Date JUL 2 7 2007
cc: Planning Department
County of Hawaii
PLANNING COMMISSION
Aupuni Center • 101 Pauahi Street, Suite 3 • Hilo, Hawaii 96720
Phone (808)961-8288 Fax (808)961-8742
July 23, 2007
Honorable Pete Hoffmann, Chairman
and Members of the County Counci]
County of Hawaii
333 Kilauea Avenue
Hilo, HI 96720
Dear Chairman Hoffinann and Members:
County Council Initiated
Amendment to Chapter 25 (Zoning Code) of the Hawaii County Code 1983
(2005 Edition, as amended) relating to Retail Establishments
The Planning Commission at its duly held public hearing on July 6, 2007, considered the
County Council's request for an amendment to Chapter 25 (Zoning Code), Hawaii
County Code 1983 (2005 Edition), as amended, relating to Retail Establishments. The
proposed amendment would not permit "superstores" in any zoning district. "Superstore"
means a business exceeding 90,000 gross square feet, offering for sale more than 25,000
different stock keeping units, and dedicating more than 20,000 gross square feet of floor
area to the sale of groceries.
A motion was made to send a favorable recommendation to the County Council. There
were four votes in favor of the motion and two against. Therefore, the motion did not
pass. No other motions were made.
The four to two vote constitutes a "no action" by the Planning Commission because of
the lack of the five affirmative votes required by Hawaii County Charter,
Section 13-4(I). Under Section 25-2-42(d)(3) and Planning Commission Rule 11-3(b)(2),
the Planning Commission's non-action constitutes an unfavorable recommendation. This
unfavorable recommendation is being forwarded to you, along with a copy of the hearing
transcripts, Background & Recommendation Report, and memo dated June 18, 2007, to
the Commissioners regarding comparative traffic data for "superstores" versus other
kinds of retail uses.
Kawai'i County is an Equa[ Opportunity Provider and Employer
Honorable Pete Hoffmann, Chairman
and Members of the County Council
Page 2
Please note that the Planning Director's proposed amendment to Chapter 25 (Zoning
Code), Hawaii County Code 1983 (2005 Edition), as amended, to create a "superstore"
zoning district, which would be the only zoning district where a "superstore" would be
allowed, was heazd at the Commission's meeting of July 20, 2007, and will be
transmitted shortly.
Sincerely,
1
William Graham, Chairman
Planning Commission
Lcouncilinitia[edsupers[oresOlpc
Enclosures
cc: Planning Department-Kona
Lincoln Ashida, Esq./Corporation Counsel
BRCCLdfiatedSupasfore.doF3/21/07
COUNTY OF HAWAII PLANNING DEPARTMENT
BACKGROUND AND RECOMMENDATION
INITIATOR: COUNTY COUNCIL
AMENDMENT TO CHAPTER 25
The County Council is initiating an amendment to Chapter 25 Zoning, Hawaii County
Code 1983 (2005 Edition) as amended, relating to Retail Establishments. The proposed
amendment would not permit "superstores" in any zoning district. "Superstore" is defined as a
business exceeding 90,000 gross square feet, offering for sale more than 25,000 different stock
keeping units, and dedicating more than 20,000 gross square feet of floor area to the sale of
groceries.
1. Background: The County Council has referred a proposed amendment to the Zoning
Code to the Planning Director and Planning Commission for their review and
recommendation. The proposed amendment would ban "superstores" on the island. A
"superstore" is defined as a "business exceeding 90,000 gross square feet, offering for sale
more than 25,000 different stockkeeping units, and dedicating more than 20,000 gross
square feet of floor area to the sale of groceries." A "stockkeeping unit" is an individual
type of sales item. For example, "Campbell's Tomato Soup" is one stockkeeping item,
even if the store has fifty cans. The proposed ordinance does not define "groceries", but
the councihnember who was the principal sponsor clarified that it means food and liquor.
The proposed ordinance would amend the Zoning Code to define "superstore", then state
in the definition that a superstore is not allowed in any zoning district. The Council
resolution and proposed ordinance are attached as Exhibit A.
In essence, the bill proposes to ban the combinafion of a large department store
with a grocery store. According to the principal sponsor, the main type of store that this
would ban is a Wal-Mart Supercenter. There are about 1,000 such stores on the
mainland. Target also operates a type of store similar to a Wal-Mast Supercenter in
variety of items and grocery space. According to the councilmember who introduced the
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bill, the combination of the number of stockkeeping units and the area in groceries means
that the ban would not apply to a Sam's Club or the current Costco operation, because
they have fewer stockkeeping units, or large department stores that do not sell groceries,
such as the two current Wal-Marts on the island. The Planning Department has not
independently verified these statements about floor area devoted to groceries or number of
stockkeeping units.
Under the current Zoning Code, a "superstore" is not specifically defined, and
would be treated simply as a type of retail establishment. A "retail establishment" is a
permitted use in CG (General Commercial), CV (Village Commercial), CN
(Neighborhood Commercial), V (Resort), MCX (Industrial-Commercial Mixed) and PD
(Project District) zones. It would violate the spirit of the Zoning Code to locate a large
retail business that is intended to be a magnet for customers from a large region in a CN or
CV zone, but it is not specifically prohibited. As a practical matter, a "superstore" as
defined would need 10-15 acres of land, and there are probably no CN zoned sites that are
large enough.
In the Kona area, there are large vacant CG and MCX zoned sites in Makalapua
Center, Honokohau Business Park, the new increment of Kaloko Industrial Park, the
Queen Liliuokalani Trust land near the Old Kona Airport Park, and the unimproved
increment of Lanihau Shopping Center fronting Henry Street which have appropriate
zoning and adequate space to build a superstore.
In the South Kohala district, there is a large vacam CV caned site on the south
side of Waikoloa Road near Waikoloa Village that is large enough to accommodate a
superstore, but it is doubtful that the population in the area would make this type of store
commercially viable in that location.
Within Hilo, outside of the Department of Hawaiian Home Lands (DHHI,)
property which will be discussed below, there are no large vacant sites that are
appropriately zoned. The Kea'au Gateway area, zoned in 2002, has 32 acres zoned MCX
and is an adequate size for a superstore. Other areas of the island do not have large
vacant commercially-zoned sites.
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The Council resolution contains a number of asserted reasons for the proposed
superstore ban: "traffic congestion, overburdening of existing infrastructure, deterioration
of fragile ecosystems, and decimation of small businesses." In response to a request from
the Planning Department to provide supporting information, the councilmember provided
same items, mainly an article about big box development in general, attached as Exhibit
B, some news articles about mainland cities such as San Diego that have banned
superstores, and considerable information about Turlock, California. The city of Turlock
enacted a ban, primarily based on the analysis that they wanted to protect neighborhood
shopping centers which were centrally located in the town, and believed that they might
fail if they lost the "anchor" grocery tenant. The superstore, on the other hand, would,
according to the analysis, be located along the state highway, and draw tralisc to that
location, away from the town center.
Recently, the DHHL announced that Wal-Mart was the only bidder for a large
DHHL site located on Maka'ala Street in Hilo, behind the current Wal-Mart. The lease
terms are still being negotiated. Wal-Mart announced that it planned to open a
"Supercenter" on the site, consisting of about 200,000 squaze feet of retail space. (The
current Hilo Wal-Mart occupies about 140,000 square feet of gross retail space) This
"Supercenter" would have enough grocery space to fall under the definition of
"superstore" in the proposed ordinance. Wal-Mart was indefinite about the fate of the
existing store.
The Maka'ala Street DHHL site is caned ML (Limited Industrial), and is
designated High Density Urban in the General Plan. Under the County's Memorandum of
Agreemem (MOA) with DHHL attached as Exhibit C, the County agreed with DHHL's
position that it can decide the use of its lands without following County zoning. DHHL is
supposed to have a planning process, however, and conform to their overall land use plan.
While it is cleaz as a legal matter that DHHL residential, pastoral, and agricultural
leases are exempt from County zoning, the question of commercial and industrial uses on
DHHL property is not entirely free from doubt. The County believed, based on several
corporation counsel opinions, that the MOA conformed to legal requiremems, largely
-3-
because of statements made by the Hawaii Supreme Court in Keno'o v. Watson, 87 Haw.
91.
It is worth recalling the history that led to the current commercial development'
pattern in the Hilo azea. In the late 1970's, a development group known as "Redevco"
sought approval to develop what is now Prince Kuhio Plaza on DHIIL property. At that
time, DHHL did not claim that the project was exempt from County zoning, and applied
for a General Plan LUPAG map amendment and a change of zone. The LUPAG map
amendment was necessary because the General Plan at the time identified downtown Hilo
as the primary site for commercial development. After a long struggle, the General Plan
amendment passed and the site was rezoned. In the mid-1990's, DHHL applied for
rezoning of the site that is now the "Wal-Mart Cente-" from ML to CG. It was
understood that Wal-Mart would be the eventual tenant. No General Plan amendment
was necessary because the site had been changed to High Density Urban in 1989. After
considerable controversy at the Council, DHHL decided that it could develop the site
without following Coumy zoning, and withdrew the application. It developed the site, the
County acceded in DHHL's right to develop, but did not process building permits, on the
grounds that if DHHL was exempt from zoning, it was exempt from building permits as
well.
The General Plan does not offer any specific guidance on the topic of
"superstores", or more generally, big-box type retail establishments. The General Plan
describes various types of shopping centers: neighborhood, community, and regional
centers. A superstore would be classified as a regional center. In the more rural areas of
the island such as Hamakua, the General Plan discourages strip or spot commercial
development outside of the existing town centers. In that way, it encourages growth
around the existing towns. The General Plan would not support rezoning to allow a
superstore or other large commercial enterprises outside of the designated urban azeas. It
does not, however, forbid the use of existing zoned areas such as those described above or
the potential commercial rezoning of designated areas.
-a-
RECOMMENDATION
The Planning Director gives an unfavorable recommendation on the bill proposing a ban
on superstores. If the Council would like to give closer scrutiny to such stores because of traffic
or other impacts, the Planning Director proposes an alternative approach: that the Zoning Code
be amended so that a superstore is a permitted use only in a "Superstore" zoning district. In other
words, to establish a superstore, the business would have to rezone an area to the "Superstore"
zone; it could not just open up in an MCX, CG, or other zone.
The proposed superstore ban prompted a great deal of public testimony pro and con at the
Council, much of it focused specifically on Wal-Mart. This corporation has been controversial for
a number of reasons, including anti-union practices, wages, poor health benefits, relationships
with foreign suppliers and treatment of foreign workers, and its impact on small-town businesses.
Although the proposed bill itself does not single out any one corporation by name, because so
much public testimony was directed at Wai-Mart, it may be useful to explain some general rules
for the benefit of the public.
The land use system focuses on what should happen on a particular piece of property,
where certain uses should take place, how the uses should be done (for example, design controls
or parking requirements), but is concerned with who is doing the project only to a very limited
degree. Section 25-2-10 of the Zoning Code states that approvals run with the land and "shall not
be granted if the action sought would not be equally acceptable under a variety of owners." This
is the general rule in American land use law. There are limited circumstances where the identity
of the applicant may be relevant: for example, the State Land Use Commission has, at times,
required proof that the applicant has the financial ability to carry out a project to avoid purely
speculative applications, but the general rule is still that the decisions shall not be made on the
basis of who is the applicant.
Much public testimony was given on the topic of competition and the potential effect of
superstores on existing businesses. Generally, business competition is regarded as a good thing: in
fact, essential to the current economic system. It is inherent in business competition that some
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businesses will thrive and others fail. Laws exist outside of the zoning and land use system to
control competition that society deems unfair: anti-trust laws, truth-in-labeling laws, and the like.
The land use system is not supposed to limit competition to favor certain businesses against '
others. It is a legitimate use of the land use and zoning powers to establish preferred locations
for businesses, and to prevent businesses from getting started in undesireable locations. For
example, it is a perfectly legitimate use of zoning power for a community that is trying to preserve
and enhance an existing downtown business core to use zoning to prevent big-box mercharrts
from building at a highway crossroads away from the downtown, so that the downtown remains
the primary commercial cemer. This is the type of zoning battle that has been fought in many
communities against big retailers such as Wal-Mart, but it should be based on a policy about the
use of land, and the proper location for businesses, not the belief that one group of business
owners aze more deserving than another. Other laws set the requirements for wages, hours, and
health care that corporations must meet. Zoning and other land use laws do not set these
standazds.
Given these general principles, the Planning Director cannot give a favorable
recommendation to an ordinance that would ban superstores everywhere on the island. The
combination of a lazge department store with a section that sells food, under the same roof and
with the same ownership, cannot be said to be a bad thing in itself and under all circumstances. It
is simply a different form of retail enterprise. It is not something like an illegal drug lab, a casino,
or a brothel that a community may ban because it believes it is a harmful activity in itself.
An island-wide ban could have the pazadoxical effect of creating a monopoly for Wal-
Mart in the "superstore" category, given that Wal-Mart will apparently build a superstore on
DHI-II, property. Unless DHHI. leases another site to a superstore competitor, that would be the
only site where a superstore could be built on the island if this ban is enacted.
There is reason to be concerned about the location of superstores. They aze typically very
lazge in comparison with other retail businesses and can attract very lazge traffic volumes to a
particular area. One particulaz concern is that a superstore can bring traffic from a large region to
an azea that may not have been planned to be a regional commercial center. Some of our MCX
zoned areas, for example, may have been planned with the idea that they would have mixed
-6-
industrial and commercial uses, not one major traffic generator.
For these reasons, the Planning Director is offering an alternative bill, attached as Exhibit
D. This bill would have a similar definition of "superstore", and provides that a superstore can be
allowed only in a new type of zoning district, called the "Superstore" district. The Superstore
district would also allow most commercial uses that are currently allowed in an MCX (mixed
commercial industrial) district, because a developer may want to develop other businesses on the
site. The Superstore district could be rezoned only from a site currently zoned CG or MCX
(mixed commercial-industrial), or on property that would qualify to be rezoned to CG or MCX
under the General Plan. These would be sites that are designated as High Density Urban on the
LUPAG map, or "Industrial-commercial" on Table 14-5 of the General Plan, page 14-12. The
High Density Urban areas are in Hilo and Kailua-Kona. The Industrial-Commercial areas on
Table 14-12 are Keaau-Gateway Center, Hawauan Paradise Park, Hilo Iron Works, Waiakea
Houselots, Kona Industrial Subdivision and adjacent area, and Honokohau. Of course, it would
be up to the Council at the time of rezoning to determine whether the specific site is suitable for a
superstore. For example, the Waiakea Houselots area clearly would not be suitable because it
consists of small lots on relatively narrow roads.
This alternative bill is not actually before the Planning Commission for action at the May
24, 2007 meeting because it was not agendized for this meeting. It will be on the agenda for the
June 5, 2007 meeting.
The Planning Director recommends that the Planning Commission send an unfavorable
recommendation to the Hawaii County Council. The accompanying draft bill to amend Chapter
25 is provided for your consideration.
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~F e:Of f5w...
Y~
COUNTY OF HAWAII
STATE OF HAWAII ;
RESOLUTION NO. ~~ `~~
. A RESOLUTION PROPOSING AN AMENDMENT TO CHAPTER 25, ZONING CODE,
HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO RETAIL
ESTABLISHMENTS
WHEREAS, the County of Hawaii is a unique and special island community with a
quality of life, natural beauty, and rural character admired worldwide; and
WHEREAS, the protection and preservation of our unique quality of life, natural beauty,
and rural character are dependent on proper planning and reasonable growth policies consistent
with existing natural conditions and inherent limitations on population and development within an
island community; and
WHEREAS, the experience of communities across the United States has shown that the
development of "superstores," retail businesses significantly larger than any retail store operating
within acommunity -generally occupying more than 90,000 gross square feet, offering for sale
more than 25,000 different stocldceeping units ("SKU"), and dedicating more than 20,000 gross
square feet of floor azea to the sale of groceries -results in tremendous adverse community
impacts including traffic congestion, increased demand on government infrastructure, negative
environmental consequences, and harmful, often fatal, impacts on small businesses; and
WHEREAS, it is the policy of the County of Hawaii General Plan to encourage
community-based and pedestrian-friendly design and development to preserve the rural character
of Hawaii Island and to support small business development that is consistent with its rural,
agricultural, and historic character; and
WHEREAS, the council finds that the development of "superstores" would contradict the
"smart growth" policies that Hawaii County is striving to implement and would undermine
existing plans to manage traffic congestion, encourage pedestrian-friendly small-town community
design, and support small businesses that have been an integral part of our island landscape; and
WHEREAS, chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005
Edition, as amended) -particularly in its definition of "Retail establishment" -does not
adequately address the negative impacts of "superstores" demonstrated in communities across the
mainland United States; and
WHEREAS, chapter 25, article 2, subsection 25-2-43(b), Hawaii County Code 1983
(2005 Edition, as amended), provides, in pertinent part, that "[t]he council shall refer any proposed
council-initiated amendment to this chapter to the director and the commission with requests for
their respective comments and recommendations thereon, prior to the first reading of any such
amendment..."
EXHIBIT
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that the Planning Director and the Planning Commission is directed to process the
proposed amendment to chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005•
Edition, as amended), attached hereto as Exhibit "A". •
BE IT FURTHER RESOLVED that the Planning Director and Planning Commission shall
each submit comments and recommendations on the proposed amendment to the council within
one hundred twenty (120) days from the date that the amendment is transmitted by the council,
pursuant to chapter 25, article 2, subsection 25-2-43(b), Hawaii County Code 1983 (2005 Edition,
as amended).
BE IT FINALLY RESOLVED that the County Clerk is requested to transmit copies of this
resolution to Planning Director Christopher Yuen; the Planning Commission, and Mayor Harry
Kim.
Dated at Kona , Hawaii, this 7th day of February , 2007.
INTRODUCED BY:
C CIL MEMB OUNTY O WAI`I
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
1 hereby certify that the foregoing RESOLUTION was by
rte indicated to the right hereof adopted by the COUNCIL of the
yof Hawaii on _Fgbr~ar~r 7 2007
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Reference: C-32/PC-6
RESOLUTION NO. °~1 ~~
2
COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HAWAII
BILL NO.
AN ORDINANCE AMENDING CHAPTER 25, ZONING CODE, HAWAII COUNTY
CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO RETAIL
ESTABLISHMENTS
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION I. Puroose. The purpose of this ordinance is to preserve and protect the
quality of life, natural beauty, and rural character of our unique island community from adverse
impacts caused by large "superstores" that were not envisioned or considered under content
provisions of the Hawaii County Zoning Code. The establishment of limits on retail use -
through the restriction on operation, renovation, or expansion of retail establishments that may be
or become a "superstore" -protects Hawaii County residents from the type of adverse impacts,
such as traffic congestion, overburdening of existing infrastructure, deterioration of fragile
ecosystems, and decimation of small businesses, that have been occurring in the mainland United
States. This ordinance is not intended to preclude any particular retailer, company, end-user, or
tenant from doing business in the County of Hawaii, but rather is intended to regulate land use
and environmental protection through the preclusion of "superstore" uses in the County of
Hawaii by any and all retailers, companies, end-users and tenants.
SECTION 2. Chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005
Edition, as amended), is amended by amending the definition For "Retail establishment" to read as
follows:
""Retail establishment" means an establishment which sells commodities
or goods to the consumer and may include display rooms and incidental
manufacturing of goods for retail sale on premises only, Typical retail
establishments include convenience stores, grocery and specialty food stores,
general department stores, drug and pharmaceutical stores, hardware stores, pet
shops, appliance and appazel stores, tour, travel and ticket agencies and other
similar retail activities. The term does not include open storage yards for new or
used building materials, yards for scrap, salvage operations for storage or display
of automobile parts, service stations, repair gazages, [e~] veteiinazy clinics and
hospitals, or "superstores" as defined in this section, as superstores shall nat be
permitted in any zoning_district in the County of Hawai`i."
EXHIBIT ~pti \
SECTION 3. Chapter 25, article 1, section 25-1-5, Hawaii County Code 1483 (2005
Edition, as amended), is amended by adding a new definition for "Stockkeeping Unit" or "SKU"
to read as follows:
""StockkeeRing Unit" or "SKU" means an identifier that is used by
merchants for the systematic trackine of products and services offered to
customers, including, but not limited to Universal Product Code (iJPCI bazcodes,
European Article Number (EANI bazcodes, and Global Trade Item Number
(GITNI tracking numbers,"
SECTION 4. Chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005
Edition, as amended), is amended by adding a new definition for "Superstore" to read as follows:
""Superstore" means a business exceeding 90,000 gross square feet,
offering for sale more than 25.000 different stockkeeping units. and dedicating
more than 20,000 gross souate feet of floor azea to the sale of groceries."
SECTION 5. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed material, and underscoring need
not be included.
SECTION 6. If any provision of this ordinance or the application thereof to any person
or circumstance, is held invalid, such invalidity shall not affect other provisions or applications
of the ordinance that can be given effect without the invalid provision or application, and to this
end, the provisions of this ordinance aze declazed to be severable.
SECTION 7. This ordinance shall take effect upon its approval.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
Big-Box
Sprawl
(And How to Control It)
eople love what's inside super-
stores. They hate what's on the
outside.' In those words, Edward
T McMahon, a national expert on
smart growth, captures the love-hate re-
lationship Americans have wi[h big-
box superstores. It's hard to argue with
the popularity of Wal-Mart, Target,
Home Depot, Lowe's, and their many
imitators. As Wal-Mart itself points out,
"All customers appreciate good service,
low pricing, and great selection." With
$200 billion in sales in 2001, Wal-Man's
new status as [he world's biggest busi-
ness speaks for itself.z So does the rapid
growth of such companies as Home De-
pot, Target, and Lowe's, whose sales
reached $45 billion, $29 billion, and $18
billion, respectively, in 2000.' And yet,
at any given moment, hundreds of
grassroots organizations across the coun-
try are fighting too[h and nail to keep
these retail behemoths out of their com-
munities. "Is the worst of the suburbs
the best we can hope for?" asks a flier
distributed by citizens in New Orleans
protesting a proposed 199,000 square-
foot Wal-Mart store in the historic
Lower Garden District.° "We're not
gaining a sore; we're losing our
community," laments a citizens' group
in Decorah, Iowa, in an ad placed in
USA Today.s Opponents of a proposed
Home Depot in Mountain View, Cali-
fornia, have opened [heir own office,
socked with lawn signs, literature, and
petitions, [o protest the giant store.b "I
Don'[ Shop at Sprawl-Marts," reads a
bumper sticker in Greenfield, Massa-
chusetts.r Agroup called Mainsereet
Defense Fund sued the city of
Northfield, Minnesota, over its approval
of a sprawling Targe[ sore on the out-
skirts of towns
What's behind these battles? In the
view of many, big-box scores impose hid-
dencosts that don'[ appear on [he price
tags of the products they sell: traffic con-
gestion; loss of trees, open space and
farmland; displaced small businesses;
substitution of jobs tha[ support fami-
lies with low-paying jobs that don't; air
and water pollution; dying downtowns
with vacant buildings; abandoned shop-
ping centers; a degraded sense of wm-
munity; and sprawl. The list of problems
linked to big-box stores is (ong.
Whether one loves or hates big-box
stores, it is indisputable that their effects
are long-term and significant. Local
public officials owe it to their constitu-
en[s [o consider these effects-and to
become familiar with tools available for
mitigating them-before approving big-
box stores. Such tools include impact
assessments, design standards, planning
moratoria, retail size limits, intergovern-
mental agreements, and the withdrawal
of subsidies for retail sprawl.
Impact Assessments
The idea behind "impact assessments"
is a simple one: communities should
look closely at how large development
projects will affect their towns, and miti-
gate potential harm whenever possible.
While environmental impact s[ate-
ments are standard fare for large
projects, economic impact assessments
are less common, even though major
commercial developments can devas-
tate the economic vitality of a down-
town or Main Stteet. Arthur Frommer,
who launched the widely-read ttavel
guide series, has observed:
The destruction of America's
downtowns has occurred all
over the country as a direct re-
sult of mall development on
the outskirts, and especially
because of the construction
there of mammoth scores of the
continued on page 8
Constance E.
Beaumont is Di-
rector for State &
Local Policy of the
National Trust for
Historic Preserva-
tion.She isalso the
author of How Su-
perstore Sprawl
Can Harm Com-
munitiesand BetterModels forSuperstores:
Alternatives to Big-Box Sprawl.
Leslie Tucker is
Local Policy Ana-
lystfortheNation-
aITrust for Historic
Preservation. She
holds a B.A. from
the University of
Alabama and a
masters degree in
historic preserva-
tion from Savannah College of Art and
Design.
EXHIBIT
(~ March/Apri12002 Vol. 43, No. 2 7
~~
SIG-SOX SPRAWL
continued from page 7
Wal-Mart vaziety. In addition
to disfiguring those outskirts,
they have forced out of business
nearly every major category of
downtown shop.'
To see how an economic impact
assessmen[ can help pro[ect local com-
munity character, consider the experi-
ence of Lake Placid, New York. When
Wal-Marc proposed to build an 80,000
square-foot store surrounded by nine
acres of asphalt in a scenic preservation
disttict on the edge of this small resort
town, local residents recoiled. Among
other things, they feared that the big-
box sprawl typically generated by Wal-
Marts would make Lake Placid less at-
tractive to tourism, a s[aple of the local
economy. "People come to our unique
valley for a sense of renewal...ro get
away from the pressures of urban life,"
explained one resident. "With its strip-
mallarchitecture, traffic lights, and the
bulldozing of thousands of trees for a
parking lot greater than all the com-
bined spaces available downtown, the
Wal-Mart will deface our view of
Whiteface Mounmin. The business re-
quired to support a store of this size
threatens Lake Placid and its neighbor-
ingvillages."10
8 Municipal Lawyer
Development proposals in the
Village of Lake Placid are regulated
by the [own of North Elba, whose zon-
ing law calls for "any undue adverse
impact on the natural, physical, social
and economic resources of the Village
Town [to] be avoided."" In this case,
the town's planning board rejected
the proposed superstore because its
negative economic impacts threaten-
ed to harm Lake Placid's commun-
ity character.1z The economic impact
study conducted for the proposed
Wal-Mart said that it could take up
to 14 years to refill retail space likely
to become chronically vacant due to
the super-s[ore's construction:
Such chronic vacancies... would
almost inevitably result in
fewer tourists visiting the area,
which would in turn result
in less sales overall, resulting
in a net downward spiral in
the psychological, visual, and
economic character and condi-
tions of the...downtown....
These potential impacts would
have a significant unmi[i-
gatable adverse impact on the
character and cul[ure of the
community by resulting in va-
cant storefronts [and] a loss of
"critical mass' in existing down-
town areas....°
Wal-Mart sued [he planning board
for denying its request to build, but in
February 1998, a court ugheld [he
board's decision."
Other jurisdictions have rejected
big-box stores or put conditions on their
approval as a resul[ of impac[ assessment
findings. In Vermont, for example, the
state environmental board denied per-
mission for a developer to build a
superstore outside St. Albans after an
impact assessment estima[ed that the
100,000 square-foot store would cos[ the
public $3 for every $1 of public benefit.
The big-box retailer appealed this deci-
sion to the Vermont Supreme Court, but
in 1996, the court validated the board's
ruling.15 The court observed, "A
municipality's ability to pay for [public]
services depends on its tax base, that is,
the appraised value of property [on the
local tax rolls]. To the exten[ that a
project's impact on existing retail stores
nega[ively affects appraised property
values, such impact is a factor that re-
lates to the public health, safety, and
welfare."'s
Bozeman, Montana, now requires
economic, as well as ttaffic and envi-
ronmental, impact analyses for all new
retail stores over 50,000 square feet.'r
When abig-box retailer proposed to
expand its existing store from 125,000
to 205,000 square fee[, the city commis-
sioned aneconomic impact study. The
study recommended that the retailerbe
asked to help pay for a shuttle service
running from its store co the downtown,
and [o contribute [o a promotional
campaign benefitcing existing stores
as well as the superstore.'s
Design Standards
Another reason for citizen opposi-
tion to big-box stores is their design:
nondescript, enormous, "off the shelf'
buildings set in a sea of asphalt, wi[h
no windows, rooflines, or attempt to
respect the architectural character of
the local community. Thousands of
communities have enacted design
standards to improve the appearance
of commercial development Cathedral
City, California; Evanston, Wyoming;
and Cape Cod, Massachuset[s, are just
a few of the local jurisdictions thathave
used design standards to improve [he
character of big-box stores.19
Pedestrian-friendly doumtowns and small-town Main Streets, such as this one in
Leesburg, Va., provide alternatives to big-box sprawl. Ph«° by Constance e. Bezum°n~.
Evanston's design standards grew
out of public hearings couduc[ed dur-
ing a temporary moratorium on big-box
stores after a retailer announced plans
[o vacate an existing store and build a
bigger one. The city denied [he retailer's
request for an amendment to Evanston's
ordinance limiting retail stores to
30,000 square feet, and then adopted
strict design standards to ensure that the
proposed store, as well as all future big-
box stores, would be compatible with
the town's architectural heritage?0 The
standards require all stores over 25,000
square feet to use red or Light brick,
simulated brick, grey sandstone, native
stone, cultured stone or wood on at least
30 percent of the main facade (cin-
derblock is not allowed on the facade);
use earth tones for facades instead of
jarring colors; and breakup monotonous
building facades with interesting roof
lines and architectural details.r'
On Cape Cod, stores with foot-
printsz2 of over 50,000 square feet must
either be designed, or screened with
vegetation, to avoid negative visual
impacts on their surroundings; strip de-
velopment is prohibited; and parking
must go m the side or rear of buildings
wherever possible. "Developments of
regional impacts"-projects exceeding
10,000 square feet-are subject to spe-
cial scmtiny and must show the Cape
Cod Commission that their benefits
outweigh their detriments.21 Under a
new policy expected to be approved
soon, stores will be limited to footprints
of 15,000 square feet unless they locate
in "growth incentive zones' or are fully
screened.zq
Big-Box Blight, Retail Glut,
and Retail Size Limits
Many communities share Cape Cad's
view that retail sprawl is "inefficient and
unsustainable."25 As the Cape's regional
plan explains, "The surplus of retail op-
erationsboth locally and nationally in-
dicates that over-retailing does not add
to the region's economic pie. I[ ends up
hurting smaller, locally-owned busi-
nesses and creating blight when exiso-
ing retail buildings are vacated.."z6The
U.S. had only five square feet of retail
space per person in 1980; today, that
number is 20 square feet.27 "Developers
and retail chains have over-saturated
the suburbs and under-served the cities,"
says Burt Flickinger, III, managing di-
rector ofReach Marketing of Westport,
Connecticut.zBEven though Wal-Mart
has vacated 426 of its stores, the com-
pany plans to build 46 million square
feet of new retail space this year.29
land, abig-box building supply store has
moved into a new structure but allowed
its previous one across the street to sit
vacant for the past five years. In a pre-
emptive sttike against big-box blight,
Buckingham Township, Pennsylvania,
passed an ordinance requiring develop-
The idea behind "impact assessments" is a simple one: communi-
tiesshould look closely at how large developments will affect `
their towns, and mitigate potential harm whenever possible.
While environments! impact statements are standard fare for
large projects, economic impact assessments are less common,
even though major commercial developments can devastate
the economic vitality of a downtown or Main Street.
As retailers close older, smaller
stores and open larger new ones farther
out in the countryside, terms like "re-
tail graveyards" and "greyfields" have
emerged to describe ehe growing prob-
lem ofvacant superstores. Local officials
are concerned that these outlets breed
crime and vandalism, depress nearby
property values, and saddle municipali-
ties with financial and legal liabilities.
Snellville, Georgia, has three big-box
stores sitting empty. In Bardstown,
Kentucky, an old Wal-Mart built di-
rectly across [he street from My Old
Kentucky Home, a state park and ma-
jor tourist attraction, stood vacant for
almost ten years. In Hagerstown, Mary-
ers to put money into an escrow account
to cover demolition costs in case the
superstores they build ever become va-
cant JO Peachtree City, Georgia, requires
that contracts between property own-
ers and big-box tenants state that the
tenant may not vacate the building and
then prevent the landlord from leasing
the property to another tenant" Un-
der an agreement negotiated by
Evanston, Wyoming, in 2001, abig-box
retailer must help the city find tenants
for a store it vacates so that it won't just
stand empty.32
Limits on the size of stores offer an
increasingly popular way to prevent
conrinued on page 30
March/April 2002 Vol. 43, No. 2 9
Traffic generated by big-box stores in northern Virginia. Accessible only by car, big-box
stores generate pressure to widen roads for miles around and are generally inaccessible
people who cannot afford to drive. Photo by Conswnce E. Beaumont.
SIG®BOX SPRAWL
continued from page 9
overbuilding, which often overwhelms
communities with vastly more retail
space than they can absorb. From
Walpole, New Hampshire, where scores
are capped at 52,000 square feet, to
Coconino County, Arizona, where they
are limited [0 70,000 square feet, com-
munities across the country have adopt-
ed limits on the size of big-box stores."
Another promising approach is to limit
the footprint of new stores. Gaithers-
burg, Maryland's ordinance allows
larger stores, but limits their footprint
to 80,000 square feet.'9This policy has
resulted in several two-story big-box
buildings. Likewise, multi-story big-
box retailers can be found in New
York City, Chicago, Seattle, Pasadena,
and other communities.
Intergovernmental Agreements
One of the biggest challenges facing
communities arises when big-box
developers pit adjoining jurisdictions
against each other. Many towns fear
that if they impose any conditions on
big-box superstores, the stores will
simply move to [he neighboring com-
munity, where anything goes. Their
neighbor gets all the sales and property
tax revenues; they get all the traffic.
State law can help towns avoid be-
coming pawns in intergovernmental
bidding wars.
Acting pursuant to Oregon policy,
Hood River (a small city on the Colum-
bia River Gorge in Oregon) has ex-
ecuted an Urban Growth Management
Agreement with the County of Hood
River that requires the county to adopt
regulations similar to those of the
city.35 The city's big-box ordinance in-
cludes tree-planting requirements in-
tended to break up the "sea of asphalt"
look in parking lots, and a ban on stores
with footprints of over 50,000 square
fee[.J6 As is [rue elsewhere in Oregon,
city policy prohibits sewer line exten-
sions outside designated urban growth
boundaries unless a health hazard ex-
ists.39 To avoid "leap-frog" development
(random development [hat jumps hap-
hazardlyover undeveloped areas), Hood
River will only annex land that is con-
tiguous to the city.
9 fanning Moeatoria
A number of municipalities have en-
acted temporary development morato-
ria [o give local planning agencies time
to develop standards for the design, lo-
cation, and size of big-box stores. One
example is Fort Collins, Colorado,
which adopted asix-month moratorium
in 1994 on all stores over 80,000 square
feet's Concerned that such operations
might create an "irreversible negative
impact" on the city, For[ Collins cre-
ated aspecial task force comprised of
developers, citizens, planners and oth-
ers to devise design guidelines for
superstores. The guidelines ultimately
adopted:
prohibit long blank walls that dis-
courage pedestrian activity;
mandate display windows, awnings,
and other features to add visual in-
terest to [he stores; and
require sidewalks linking stores to
transit stops, street crossings, and
building entmnces.19
governments [hat dole out financial
incentives tobig-box stores.a"`The deck
is snicked against local merchants. No-
body speaks up for them:'41 Under its
smart growth policy, Maryland has de-
cided it no longer makes sense [o force
taxpayers to subsidize wasteful and
inefficient development, so the state
has pulled the plug on subsidies for
sprawl. Developers can still build such
development, but the state will no
longer subsidize the construction of new
roads or water and sewer lines tomiddle-
of-nowhere "sprawl si[es;° instead, state
funds are directed toward designated
"Priority Funding Areas," which include
existing communities and areas for
which new growth is planned by local
govemments.as
The "Class" Issue
A common complaint is that big-box
builders often try to pit one class of
people against another in their efforts
to get controversial projects approved,
in an argument that goes something like
Another reason for citizen opposition tobig-box stores is their
design: nondescript, enormous, "off the shelf" buildings set in
a sea of asphalt, with no windows, rooflines, or attempt to
respect the architectural character of the local community.
Thousands of communities have enacted design standards
to improve the appearance of commercial development.
More recently, Easton, Maryland,
adopted a 90-day moratorium on big-
box stores before adopting a 65,000
square-foot cap on such developments;
likewise, Rockville, Maryland, used a
six-month moratorium to develop an
ordinance with a similar cap.40
Withdrawal of Subsidies
for Big-Box Sprawl
Kenneth Stone, an economist at Iowa
Stale University who has studied
superstores for years, is appalled at the
number of total governments that ac-
tually subsidize these operations. In a
2001 study, he asks, "Is it fair to give
taxpayers' money to big corporations
that will then use it to help put existing
firms out of business?," alluding to a
"zero sum game" being played by city
this: It's "elitist" to oppose big-box
stores, which greatly benefit lower in-
comepeople by giving them high-qual-
ity goods at rock-bottom prices. This
azgument would ring less hollow had
retailers no[ effectively "redlined" older
cities and towns, where many low-
income people live. The argument
would also warrant more credence if
big-box scores were more willing to
locate in places that are accessible by
transportation modes affordable to
people with modest incomes. At
present, most big-box stores are far from
town, totally inaccessible to anyone
who is too poor, too young, too disabled,
or coo old to drive.
However, that situation is not al-
ways the case. To its credit, Target's
willingness to recycle an empty depart-
30 Municipal Lawyer
ment store in downtown Pasadena,
California, demonstrates that big-box
retailers can make a profit and still pu[
stores in locations that are accessible to
customers by foot, bus, and car. And in
Rutland, Vermont, Wal-Mart drew
praise from preservationists for agreeing
to recycle a smaller than usual sore (a
former 75,000 square-foo[ Kmart in the
downtown) instead of paving over a
farm for an edge-of-town store that
would have harmed the city's downtown
economy.
Making Choices That
Save Communities
Can't we have stores with both low
prices and community-friendly design?
Of course we can. Communities have
choices. They can put policies in place
that will enhance [heir ability [o nego-
tiate for the kind of development they
want, or they can adop[ an "anything
goes" policy and be at [he mercy of
wha[ever comes along. Retail chains
have choices, too. They can insist on
look-alike, big-box sprawl wherever
they build, or they can respect the de-
sire of dis[inctive communities to pre-
serve [he scenic vistas, historic places,
and down owns that people love.
For more information on ways to
reduce superstore sprawl, see: Better
Models for Superstores: Alternatives to Big
Box Sprawl and How Superstores Can
Harm Communities (And What Citi-
zens Can Do About It), both available
through the Na[ional Trus['s web si[e
a[ www.nthp.org (go to Publications);
The Home Town Advantage, by S[acy
Mitchell (Minneapolis: Insti[ute for
Local Self-Reliance, 2000), available at
www.ilsr.org; and Better Models for De-
velopment, by Edward T. McMahon, at
www. conservadonfund. org.
Notes
1. Telephone interview with Edward T.
McMahon (February 5, 2002).
Z. Wal-Mar[ web site a[ ht[p://www.
walmartstores.com.
3. Home Depot Annual Report 2000, at http:/
Jwww.homedept.com; Target Corporation
Annual Report 2000, at http://www.targetwrp.
com/investor-relations; Lowe's Annual Report
2000, at help://www.lowes.com/lkn?action=
pg&p= AboutLowesjaanualtepoct&top ic=
aboutLowes
4. Flier distributed by Urban Conservancy in
New Orleans, at www.urban conservancy.org.
5. Advertisement, USA TODAY, April9,1999,
at page 12A.
6. Joshua L. Kwan, Mountain View Campaign
Attempting to Stop Plan far Home Depot, THE
MERCURY NEWS, at http://www.mercury
centetcom (January 14, 2002)•
7. Bumper sticker produced by Sprawl-Bus[-
ers, Greenfield, MA; see http://www.sprawl-
bus[ers.wm.
8. Linda Mack, Group Plans to Rally Tonight
Agahut Target in Northfield, MINNEAPOLIS STAR
TRIBUNe, June I, 2000.
9. Prefiled testimony of Arthur Frommer in The
St. Albans Gmup J Wal-Mart Stores, Inc., Land
Ute Permit #6F0471, June 13, 1994, Exhibit
G8, at page 4.
10. Letter from Naj Wikoff to National Trust
for Historic Preservation (April 14,1994) (on
file with the author).
I I. JOINT VILLAGE OF LAKE PLACIDfFOWN OF
NORTH ELBA LAND USE CODE, Pan V, Appen•
dix E (Developmen[ Considers[ions).
12. Town of North Elba Planning Board, Smte-
ment of Findings and Decision, Proposed Wal-
Mart Sore, January 9, 1996 at page 15.
13. ld. at 14.
14. Wa6Mart Scares, Inc v. Planning Bd. of
Town ofNorth Elba, 236 A.D.2d 93 (N.Y. App.
Div. 1998).
15. In re Wal-Mart Stores, Inc. 702 A.2d 397
(Vc.1997).
16. Id. at 401.
17. Telephone Interview with Clark Johnson,
City Manager, Bozeman, Montana (January 16,
2002); Ron Tschida, Economic Impact Studies
to 6e Routine far Box Stores, BOZEMAN DAILY
CHRONICLE, Dec. 19, 2001, at page 1.
18. Bay Area Economics, Economic Impacts
Analysa of Wal-Mart Expansion, at page iv
(February 1, 2001), at http://www.bozeman.
net/planning/Bowman%20 Wal-Mart%20
Impacts%20Study.PDF.
19. City of Cathedral City, California, Design
Guidelines (September 1989, amended May
1997); Evanston, Wyo., Ordinance 00.08,
Design Review Standards (2000); Cape Cod,
MA, Designing the Future m Honor the Past,
Design Guidelines for Cape Cod, Second Edi•
tion,1998.
20. Telephone interview with Paul Knopf, Di-
rector ofPlanning, Evanston, Wyoming (Feb-
ruary 2, 2002).
21. Evanston, Wyo., Ordinance 00.06 (2000)
(amending Evanston City Code, Ch. 24, §§
24.15 (b) and (c)).
22. The "footprint" of a building is defined 6y
the square footage of the ground floor only.
23. Telephone interview with John Lipman,
Deputy Director, Cape Cod Commission
(]anuary 28, 2002).
24. Id.; see also "A Guide to the Review Pro-
cess for Developments of Regional Impact," at
http://www.capecodcommission. org/reEhtm.
25. Cape Cod Commission Regional Policy
Plan (1996), at page 58, a[ http://www.capecod
comm ission.org/rpp/rpptoc.htm.
26. ld.
27. Telephone interview with Bur[ Flickinger,
III, Managing Director, Reach-Marketing
Qanuary 22, 2002). °
28. Id.
29. Telephone interview wi[h Cindy May, Pub-
' lic Relations for Wal-Mart Realty Division
(February 12, 2002); see also http://wwwwal-
marnealty.com.
30. Buckingham Township, PA, Ordinance 98-
02, §5 (1998).
31. PEACHTREE CrrY, GA., CODE, Zoning, AC-
ticle X, Appendix A, § 1006 General Commer-
cial Dis[rict (1994)•
32. Evanston, Wyo., ResolutionOl-09, A Reso-
lution of the Ciry of Evanston, Wyoming au-
thorizing the execution of a Memorandum of
Understanding with Wal-Mart Stores, Inc.
(Febmary 28, 2001).
33. The full text of these two ordinances
is available at http://www.newrules.org/
retail/size.html, along with others dealing
with retail stores, including communi[y im-
pact review laws, neighborhood serving
zones, and more.
34. Gaithersburg, MD., Neighborhood Three
Land Use Plan, at page 25 (1997).
35. Telephone Interview with Cary Johnson,
City of Hood River Planning Depanmen[ (Feb-
ruary 5, 2002).
36. Hood River, OR., Ordinance No. 1819
(2001).
37. Telephone In[erview with Cory Johnson,
City of Hood River Planning Depar[ment (Feb-
ruary S, 2002).
38. Fort Collins, Colo., Ordinance No. 111
(July, 1994).
39. For[ Collins, Colo., Design Smndards and
Guidelines for Large Retail Esmblishmenu, Ciry
of Fort Collins Community Planning and En-
vironmental Services (1995).
40. Easton, MD., Ordinance No. 390
(amended) (Sept., 1999) and Ordinance No.
399 (March, 2000); Rockville, MD., Ordinance
No. 13.00 (August, 2000); all at www.new
rules.org/retail/rockville.html.
41. Stone, Kenneth E., and Georgeanne M.
Artz, The Impact of Big-Box Building Materials
Smres on Host Towns and Surrounding Counties
in a Midwestern Smte, August 2001, at page 28;
telephone interview with Kenneth E. Stone
(January 14, 2002).
42. Telephone interview with Kenneth E. Stone
(January 14, 2002).
43. Maryland Depanment of [he Environment,
Managing Maryland's Growth: What You Need to
Know About Smar[ Growth, at page 9 (May 1997);
further information is available at help://www.
opstate.md.us/smaregrowth/index.html. ftfl.
March/April 2002 Vol. 43, No. 2 37
Memorandum of Agreement Setween the County of Hawaii
and the Department of Hawaiian Home Lands
I. Pur ose
The purpose of this Memorandum of Agreement (MOA) is to clarify the respective roles,
responsibilities, and obligations of the County of Hawaii (County) and the Department of
Hawaiian Home Lands (DHHL) relating to lahd use planning, infrastructure maintenance,
enforcement of laws, and collection of taxes and other fees on Hawaiian home lands.
II. Guiding Principles
The following general principles have guided the development of this MOA:
A. The Hawaiian Homes Commission is responsible for determining land use on
Hawaiian home lands. The County may not use its land use and zoning powers to
prevent the Hawaiian Homes Commission from controlling the use of Hawaiian
home lands.
B. The County and DHHL share common goals in planning for the use of Hawaiian
home lands: both support the orderly development of those lands for the benefit of
native Hawaiians and both are committed to the integration of planning 6y DHHL
~~ and Hawaii County.
C. The County should manage and maintain all infrastructure built to County.
standards
D. The County is authorized to enforce criminal laws and applicable County
ordinances and regulations on Hawaiian home lands.
E. Hawaiian homestead lessees are residents of the County of Hawaii and should be
treated in a manner consistent with ali other residents of the County.
F. Hawaiian homestead lessees should pay all taxes and fees required by law.
G. The County and DHHL acknowledge that there are azeas where agreement will
not be reached, and agree to continue to work together toward a mutually
acceptable resolution of such issues.
III. Relating to Planning and Land Use
A. DHHL will implement its Planning System which includes plans with DHHL land
use designations such as the Hawaii Island Plan, various Development and
Subdivision Plans, and Homestead Community Plans. In the formulation,
updating, and amendment of these plans, DHHL will consult with the relevant
County departments, and shall give due consideration and weight to their
EXHIBIT
G
___.~.
COH/DHHL Memorandum of Agreement
Page 2
comments, and to the Hawaii County General Plan, and other officially adopted
1 plans such as Community Development Plans. All land uses on DHHL• property
will be placed according to the applicable DHHL plans.
B. The County will consult with DHHL over the appropriate designations of DHHL
.property in the Hawaii County General Plan LUPAG maps, and shall give due
weight and consideration to the comments of DHHL, and to officially adopted
DHHL plans.
C. Based on its plans and DHHL land use designations, DHHL will determine the
appropriate County zoning districts that shall apply to the property in question.
DHHL will communicate these zoning districts to the County.
D. All normal land use controls will be applied by Hawaii County to DHHL property
according to the zoning district selected by DHHL. Except as specifically
provided in the Agreement, DHHL will follow all normal land use procedures,
regulations, and standards applicable to the zoning district.
E. All land use permit applications on Hawaiian home lands must be accompanied
by written consent from DHHL before the County can begin processing those
applications.
F. The standards of the various zoning districts selected will apply to DHHL
property. DHHL and its lessees will go through normal County administrative
variance procedures if they seek exemptions from standards.
G. For uses allowed in the various zoning districts that require special permits or use
permits, DHHL and its lessees will go through the applicable County permit
procedures. At some time in the future, DHHL may implement its own use
permit procedure for Hawaiian home lands. If DHHL grants use permits, it will
be responsible for enforcing violations of those permits. The County will be
notified when DHHL has formulated its use permit system.
H. The County will advise DHHL of all violations by its lessees. The County will
enforce land use codes and regulations on Hawaiian home lands in the same
manner as with other landowners. DHHL will cooperate with the County in
enforcing the terms of its leases requiring conformity to applicable laws and
regulations, if requested by the County. Ongoing violations and failure to comply
will be referred to DHHL after the County has exhausted all remedies short of
pursuing legal 'action to address the violation. DHHL may institute lease
enforcement proceedings in advance of, or in lieu of, County enforcement actions.
COH/DHHL Memorandum of Agreement
Page 3
IV. RelatinE to Public Facilities and Infrastructure Servine Hawaiian Home Lands
A. In the development of future projects, DHHL will construct public facilities in
accordance with County standards. Where departures from County standards are
desired, DHHL will pursue exemptions and other administrative variances from
- .the appropriate County department, in accordance with procedures established for
all property owners. Should DHHL choose not to construct infrastructure in
accordance with County standards, the County may view such improvements as
private facilities for repair and maintenance purposes.
B. The County will accept operation, repair, and maintenance of all future DHHL
infrastructure constructed according to County standards.
C. Existing infrastructure shall be subject to County inspection prior to being
accepted by the County for operation, repair, and maintenance. The County may
require DHHL to repair any damage such as leaks, holes, sags, or deterioration
affecting the operation of the existing infrastructure, identified as a result of the
inspection.
_. D. In the case of existing infrastructure that is not constructed to County standards,
-r~ the County and DHHL will work to establish minhnum standazds for residential,
agricultural, and pastoral subdivisions. Existing projects will be evaluated based
on these new standards. The County may require DHHL to upgrade the
infrastructure to the minimum standard prior to being accepted by the County for
operations, repair, and maintenance.
E. The County will maintain infrastructure according to its own standards, resources
and schedules. Any decisions as to upgrades or rehabilitation will be at the
County's discretion.
F. Should DHHL elect to convert its land to a more intensive land use, DHHL will
be responsible for upgrading the offite infrastructure to accommodate the new
use, and will consult with the County regarding the need to upgrade offsite
infrastructure. DHHL and the County shall negotiate the extent to which DHHL
will be responsible for any such offsite improvements requested by the County.
DHHL shall be responsible for project-related offsite improvements to the extent
that these would be required of other developers with similar projects. If offsite
improvements benefit other property, DHHL and the County shall cooperate so
that DHHL bears only its fair share of these improvement costs.
G. The County will treat DHHL lessees in the same manner as other property owners
with respect to conformity with laws, ordinances, and regulations. The County
will advise DHHL of violations, and will refer cases of ongoing violation to
DHHL after the County has exhausted all remedies short of pursuing legal action
COHlDHHL Memorandum of Agreement
Page 4
to address the violation. DHHL reserves the right to institute lease enforcement
~ proceedings in advance of, or in lieu of, County enforcement actions. .
V. Relatine to the Enforcement of Criminal Violations on Hawaiian Home Lands
_ A. The County is authorized to and will enforce violations of criminal law on
Hawaiian home lands.
B. County law enforcement agencies and DHHL will work to establish procedures
regarding sharing information and providing testimony relating to arrests made on
Hawaiian home lands needed for contested case hearings and other administrative
and/orjudicial proceedings.
VI. Relatine to Real Property Taxes
A. Homestead lessees on Hawaiian home lands are responsible for the payment of
real property taxes in accordance with the Hawaiian Homes Commission Act,
1920, as amended, and applicable County ordinances.
_ B. The County agrees to waive the penalty and interest on all delinquent real
property taxes owed by Hawaiian homestead lessees as of December 31, 2001.
~~ Such waiver will apply to payments made by February 20, 2002, or to payments
advanced by DHHL pursuant to paragraph C. _
C. For those homestead lessees with real progerty tax balances, excluding penalty
and interest, of more than $500, if payment is not made by February 20, 2002,
DHHL will advance full payment of all real property taxes, excluding penalty and
interest, to bring those bills current, within 60 days of receipt of an updated real
property tax listing. This date may be extended by mutual agreement of the
parties.
D. It is understood that the County's waiver of interest and penalty charges on
delinquent real property taxes owed by homestead lessees as of December 31,
2001, and DHHL's advance of full payment of real property taxes, excluding
interest and penalty, in accordance with pazagraph C, is a one-time only offer.
E. In order to alleviate or reduce further delinquencies; the County will notify DHHL
on an annual basis of any delinquent property owners.
F. The parties will continue to meet on an annual basis to evaluate the extent of
delinquencies by Hawaiian homestead lessees on the Island of Hawaii and take
action, if necessary, to keep delinquencies from recurring.
COH/DHHL Memorandum of Agreement
Page 5
G. The County and DHHL shall work to establish a customer trust fund by July 1,
2004 to collect real property tax payments as part of the mortgage/loan payments
in order to make smaller, regularpayments. '
VII. Areas for Further Collaboration
The parties agree to work further on the following issues:
A. The creation of new County zoning districts for farming and pastoral activities.
B. The development of infrastructure standards for rural land uses such as
agricultural and pastoral activities.
C. The establishment of procedures for sharing evidence, information, and testimony
involving criminal violations on Hawaiian home lands.
D. The implementation of actions to prevent and/or address future real property tax
delinquencies by Hawaiian homestead lessees.
VIII. Termination
To achieve the objectives of this MOA, either parry may, by mutual agreement in writing,
41 further clarify or waive any term or condition of this agreement, provided such action
does not violate any statutes, ordinances, or binding rules or regulations. DHHL and the ._
County reserve the right to terminate this MOA upon one hundred eighty (180) days
notice in writing to the other party.
In agreement thereof, the parties have entered into this Memorandum of Agreement on this
day of , 2002.
COUNTY OF HAWAII
B
Harry or
APPROVED AS TO FORM:
By V °"
Corporation Counsel
DEPARTMENT OF HAWAIIAN HOME
LANDS
By
Chairman
Commission
i
~~./~~~
Attorney General
COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HADUAI`I
BILL NO.
AN ORDINANCE AMENDING CHAPTER 25, ZONING CODE, HAWAII COUNTY
CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO RETAIL
ESTABLISHMENTS
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Purnose• The purpose of this ordinance is to provide greater scrutiny over
the establishmem of large department stores that include a grocery section~efined as
"superstores" in this ordinance-by limiting them to a new zoning district, the "Superstore"
district.
SECTION 2. Chapter 25, article 1, section 25-1-5, I-iawai`i County Code 1983 (2005
Edition, as amended), is amended by adding a definition for "groceries" to read as follows:
"'Groceries' means food and drink for human consumption, including beer, wine, and
liquor. "'
SECTION 3. Chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005
Edition, as amended), is amended by amending the definition for "Retail establishment" to read as
follows:
""Retail establishment" means an establishmem which sells commodities
or goods to the consumer and may include display rooms and incidental
manufacturing of goods for retail sale on premises only. Typical retail
establishments include convenience stores, grocery and specialty food stores,
general departmem stores, drug and pharmaceutical stores, hardware stores, pet
shops, appliance and apparel stores, tour, travel and ticket agencies and other
similar retail activities. The term does not include open storage yards for new or
used building materials, yards for scrap, salvage operations for storage or display
of automobile parts, service stations, repair garages, [eF] veterinary clinics and
hospitals, or `superstores' as defined in this section. `Superstores' shall be
permitted only in the `Superstore' zoning district."
EXHIBIT
D
SECTION 4. Chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005
Edition, as amended), is amended by adding a new definition for "Stockkeeping Unit" or "SKU"
to read as follows:
""Stockkeeping Unit" or "SKi1" means an identifier that is used by
merchairts for the svstematic tracking of products and services offered to
customers. including. but not limited to Universal Product Code (UPC) barcodes.
European Article Number (EAN) barcodes, and Global Trade Item Number
GITNI tracking numbers."
SECTION 5. Chapter 25, article 1, section 25-1-5, Hawaii County Code 1983 (2005
Edition, as amended), is amended by adding a new definition for "Superstore" to read as follows:
more than 20.000 gross square feet of floor area to the sale of eroceries. cowrting
the floor area occupied by shelves and aisles."
SECTION 6. Chapter 25, article 3, subsection 25-3-1(a) , Hawaii County Code
1983 (2005 Edition, as amended) is amended to read as follows:
"Section 25-3-1. Designation of districts.
(a) The zoning districts of the County shall consist of the following districts:
(1) RS, single-family residemial districts (article 5, division 1).
(2) RD, double-family residential districts (article 5, division 2).
(3) RM, multiple-family residential districts (article 5, division 3).
(4) RCX, residential-commercial mixed use districts (article 5, division 4).
(5) RA, residential and agricultural districts (article 5, division 5).
(6) FA, family agricultural district (article 5, division 6).
(7) A, agricultural districts (article 5, division 7).
(8) IA, intensive agricultural districts (article 5, division 8).
(9) V, resort-hotel districts (article 5, division 9).
(10) CN, neighborhood commercial districts (article 5, division 10).
(11) CG, general commercial districts (article 5, division 11).
(12) CV, village commercial districts (article 5, division 12).
(13) MCX, industrial-commercial mixed use districts (article 5, division 13).
(14) ML, limited industrial districts (article 5, division 14).
(15) MG, general industrial districts (article 5, division 15).
(16) O, open districts (article 5, division 16).
(17) [Special districts (articles 6 and 7)] 5. Superstore districts (article 5. division 17).
(181 Special districts (articles 6 and 7 ."
SECTION 7. Chapter 25, article 4, subsection 25-4-51(a) , Hawaii County Code
1983 (2005 Edition, as amended) is amended to read as follows:
"'Section 25.4-51. Required number of parking spaces.
(a) The number of parking spaces for each use shall be as follows:
(1) Bed and breakfast establishments: one for each guest bedroom, in addition to one for the
dwelling
unit.
(2) Bowling alleys: four for each alley.
(3) Commercial uses, including retail and office uses in RCX, CN, CG, CV, MCX, S V, RA, FA,
A and '
IA districts: one for each three hundred square feet of gross floor area.
(4) Day care centers: one for each ten care recipients of design capacity or one for every two
hundred
square feet of gross floor area, whichever is greater.
(5) Dwellings, multiple-family: one and one quarter for each unit.
(6) Dwellings, single-family and double-family or duplex: two for each dwelling unit.
(7) Funeral homes and mortuaries: one for each seventy-five square feet of gross floor area.
(8) Golf courses: four for every hole.
(9) Hospitals: one for each bed.
(10) Hotels and lodges:
(A) For hotel guest units without a kitchen, one for every three units;
(B) For hotel guest units with a kitchen, one and one quarter for each unit.
(11) Industrial uses in ML, MG, MCX, S RA, FA, A and IA districts: one for each four hundred
square
feet of gross floor area.
(12) Laundromats, cleaners (coin operated): one for every four machines.
(13) Major outdoor amusement and recreation facilities: one for each two hundred square feet of
gross
floor area within enclosed buildings, plus one for every three persons that the outdoor facilities
are
designed to accommodate when used to the maximum capacity.
(14) Meeting facilities, including churches: one for each seventy-five square feet of gross floor
area.
(15) Nursing homes, convalescent homes, rest homes and homes for the elderly: one for every
two beds.
(16) Parks: as determined by the director.
(17) Recreation facilities, outdoor or indoor, other than herein specified: one for each two
hundred
square feet of gross floor area, plus three per court (racquetball, tennis or similar activities).
(18) Rooming and lodging houses, religious, fraternal or social orders having sleeping
accommodations:
one for each two beds.
(19) Schools (elementary and intermediate): one for each twenty students of design capacity,
plus one for each four hundred square feet of office floor space.
(20) Schools (high, language, vocational, business, technical and trade, college): one for each ten
studems of design capacity, plus one for each four hundred square feet of office floor space.
(21) Sports arenas, auditoriums, theaters, assembly halls: one for every four seats.
(22) Swimming pools (community): one for each forty square feet of pool area.
(23) Wazehouse and bulk storage establishments where there is no trade or retail traffic: one for
each one thousand square feet of gross floor azea."
SECTION 8, Chapter 25, article 5, section 25-4-54, Hawaii County Code 1983
(2005 Edition, as amended), is amended by amending subsection (c) to read as
follows:
"Section 25-4-54. Standards and improvements to off-street parking spaces.
(a) Atl parking spaces shall be arranged so as to be individually accessible.
(b) Except for one duplex dwelling or two single-family dwellings on any single building site,
access to any individual parking space shall not be directly from or to a street but must be
reached from an on-site access driveway of proper design and width to allow for passage of
vehicles and necessary turning movements.
(c) In V, CN, CG, CV, MCX, ~, ML, MG, RD, RM and RCX districts, parking spaces shall be
paved.
(d) For any permitted use in the RS, RA, FA, A or IA districts, the pavement of parking spaces is
not required, and any material may be used for the pazking spaces that will eliminate erosion,
mud and standing water.
(e) For any parking space containing a building column, that column may intrude six inches into
the required width, provided that the building column shall not be located at the entry of the
pazking space. A wall shall not be considered a building column."
SECTION 9. Chapter 25, article 5, Hawaii Coumy Code 1983 (2005 Edition, as
amended), is amended by adding a new division to read as follows:
"'Division 17. S, Superstore Districts.
Section 25-5-168. Purpose and applicability.
(a) The purpose of the S (superstore) district is to provide the appropriate
locations for large department stores that are combined with grocery departmems,
in a single building.
(b) An S district may be established by a change of zone from an area
within a CG or MCX district, or by change of zone within any other area where
CG or MCX zoning would be consistent with the General Plan.
Section 25-5-169. Designation of S districts.
Each S (superstore) district shall be designated by the symbol "S"
followed by a number which indicates the minimum building site area, in
thousands of square feet, required for each building site.
Section 25-5-170. Minimum land area required.
The minimum land area required for an S district shall be 15 acres.
Section 25-5-171. Permitted uses.
(a) The following uses shall be permitted uses in the S district:
(1) Amusement and recreation facilities, indoor.
(2) Art galleries, museums.
(3) Art studios.
(4) Automobile sales and rentals.
(5) Automobile service stations.
(6) Bars, nightclubs and cabarets.
(7) Broadcasting stations.
(8) Business services.
(9) Car washing.
(10) Catering establishments.
(11) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this Code.
(12) Churches, temples and synagogues.
(13) Commercial parking lots and garages.
(14) Community buildings, as permitted under section 25-4-11.
(15) Convenience stores.
(16) Data processing facilities. •-
(17) Display rooms for products sold elsewhere.
(18) Farmers markets.
(19) Financial institutions.
(20) Food manufacturing and processing.
(21) Home improvemem centers.
(22) Ice storage and dispensing facilities.
(23) Laboratories, medical and research.
(24) Laundries.
(25) Mam-facturing, processing and packaging establishmems, light.
(26) Medical clinics.
(27) Meeting facilities.
(28) Model homes.
(29) Mortuaries.
(30) Motion picture and television production studios.
(31) Offices.
(32) Personal services.
(33) Photographic processing.
(34) Photography studios.
(35) Plant nurseries.
(36) Public uses and structures, as permitted under section 25-4-11.
(37) Publishing plains for newspapers, books and magazines, printing shops, cartographing, and
duplicating processes such as blueprinting or photostating shops.
(38) Repair establishments, minor.
(39) Restaurants.
(40) Retail establishments.
(41) Sales and service of machinery used in agricultural production.
(42) Schools, business.
(43) Schools, photography, art, music and dance.
(44) Schools, vocational.
(45) Self-storage facilities.
(46) Superstores.
(47) Telecommunications antennas, as permitted under section 25-4-12.
(48) Temporary real estate offices, as permitted under section 25-4-8.
(49) Theaters.
(50) Utility substations, as permitted under section 25-4-11.
(51) Veterinary establishments in sound-attenuated buildings.
(52) Warehousing.
(563) Wholesaling and distribution operations.
(b) In addition to those uses permitted under subsection (a) above, the following uses maybe
permitted in the S district, provided that a use pennit is issued for each use:
(1) Crematoriums.
(2) Major outdoor amusement and recreation facilities.
(3) Yacht hazbors and boating facilities.
(c) Buildings and uses normally considered directly accessory to the uses permitted in this
section shall also be permitted in the S district.
Section 25-5-172. Height limit.
The height limit in the S district shall be forty-five feet.
Section 25-5-173. Minimum building site area.
The minimum building site area in the S district shall be twenty thousand square feet.
Section 25-5-174. Minimum building site average width.
Each building site in the S district shall have a minimum building site average width of ninety
feet.
Section 25-5-175. Minimum yards.
The minimum yards in the S district shall be as follows:
(1) Front yards, twenty feet; and
(2) Side and reaz yards, none, except where the adjoining building site is in an RS, RD, RM or
RCX district. Where the side or rear property line adjoins the side or rear yard of a building site
in an RS, RD, RM or RCX zoned district, there shall be a side or rear yazd which conforms to the
side or rear yard requirements for dwelling use of the adjoining district.
Section 25-5-176. Landscaping of yards.
(a) All front yards in the S district shall be landscaped, except for necessary access drives and
walkways.
(b) Any required side or rear yard in the S district adjoining a building site in an RS, RD, RM or
RCX district, shall be landscaped with a screening hedge not less than forty-two inches in height,
within five feet of the property line, except for necessary drives and walkways.
Section 25-5-177. Other regulations.
Plan approval shall be required for all new structures and additions to existing structures in the S
district."
SECTION 10. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed material, and underscoring need
not be included.
SECTION 11. If any provision of this ordinance or the application thereof to any person
or circumstance, is held invalid, such invalidity shall not affect other provisions or applications
of the ordinance that can be given effect without the invalid provision or application, and to this
end, the provisions of this ordinance are declared to be severable.
SECTION 12. This ordinance shall take effect upon its approval.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
boVMtVI...~s
Harry Kim :,
Mayor
r_ - ,:
E or d:
~II1ikC~~J D# ~FYfl7iCiT
PLANNING DEPARTMENT
101 Pauahi Sveet, Suite 3 Hilo, Hawaii 96720-3043
(808) 961-8288 FAX (808) 961-8742
June 6, 2007
MEMORANDUM
To: Planning Commission
From: CHRISTOPHER J. YUEN, Planning Director ,'
Subject: County Council Initiated
~~ ~ ~~
Amendment to Chapter 25 re: Retail Establishments
C:hris4opher J. Yuen
Director
Brad Kurokawa, ASLA
LEED®AP
Deputy Director
We would like to make a slight change to the Background, on p. 2, which lists vacant
areas which are (1) currently zoned for commercial use, and (2) large enough to
accommodate a "superstore." That list should also include Waimea, because there is an
area of about 25 contiguous acres zoned CV ("Village Commercial") on the south
(Mauna Kea) side of the existing Parker Ranch Center.
Thank you.
Hawaii County is an Equal Opportunity Ymvider and Employer.
~,
June 18, 2007
To: Planning Commissioners
From: Christopher J. Yuen ,r% `~
Planning Director
One of the Planning Commissioners requested a comparative traffic data for
"superstores" vs. other kinds of retail uses. Staff reviewed the Institute of Transportation
Engineers' "Trip Generation" manual which contains various studies of different land
uses. There is considerable variation in actual traffic generated from one establishment to
another, but the average figures for four different retail uses are shown in the table below:
Average Vehicle Trip Ends vs 1,000 sq. ft. Gross Floor Area
~erstore Discount Shoppin Center Supermarket
Overall weekly' 49.21 56.02 42.9 102
7-9 a.m./hr. s 1.84 .84 1.03 3.25
4-6 p.m./weekdays 3.87 5.06 3.75 10.45
Weekday a.m. a 3.17 5.27 - 10.05
Weekday p.m. s 4.03 5.43 - 12.02
1,000 s.f. Saturday 6 57.5 71.19 - 177.6
Saturday/hr.' 5.01 7.58 4.97 10.76
Sundays 46.98 54.90 25.24 166.24
Sunday peak hour 9 4.27 7.32 3.17 18.93
Notes:
' Weekday
s Weekday, peak hour of adjacent street traffic
One hour between 7 and 9 a.m.
s Weekday, peak hour of adjacent street traffic
One hour between 4 and 6 p.m.
a Weekday, peak hour of adjacent street traffic
A.M. eak hour of enerator
C"
Land Use: 313
Free-Standing Discount Superstore
Description
The discount superstores in this category are similar to the free-standing discount stores
described in Land Use 815, with the exception that they also contain a full service grocery
department under the same roof that shares entrances and exits with the discount store area.
The stores usually offer a variety of customer services, centralized cashiering and a wide range
of products. They typically maintain long store hours 7 days a week. The stores included :~i :his
land use are often the only ones on the site, but they can also be found in mutual operation with a
related or unrelated garden center and/or service station. They also are sometimes found as
separate parcels within a retail complex with their own dedicated parking area. Free-standing
discount store (Land Use 815) is a related use.
Additional Data
Peak hours of the generator-
The weekday a.m. peak hour was between 10:00 a.m. and 11:00 a.m. The weekday
p.m. peak hour varied between 12:00 p.m. and 3:00 p.m. The Saturday and Sunday
peak hours varied between 12:00 p.m. and 3:00 p.m.
The sites were surveyed in the 1990s and 2000 throughout the United States.
To assist in the future analysis of this land use, it is important to collect and include
information on the presence of garden centers and/or service stations in trip generation
data submissions.
Source Numbers
354,522
Trip Generation, 7th Edition 1327 Institute of Transportation Engineers
--
Land Use: 820
Shopping Center
Description
A shopping center is an integrated group of commercial establishments that is planned,
developed, owned and managed as a unit. A shopping center's composition is related to its
market area in terms of size, location and type of store. A shopping center also provides on-site
parking facilities sufficient to serve its own parking demands. Specialty retail center (Land Use
814) and factory outlet center (Land Use 823) are related uses.
Additional Data
Shopping centers, including neighborhood centers, community centers, regional centers and
super regional centers, were surveyed for this land use. Some of these centers contained non-
merchandising facilities, such as office buildings, movie theaters, restaurants, post offices, banks,
health clubs and recreational facilities (for example, ice skating rinks or indoor miniature golf
courses). The centers ranged in size from 1,700 to 2.2 million square feet of gross leasable area
(GLA). The centers studied were located in suburban areas throughout the United States and
therefore represent typical U.S. suburban conditions.
Many shopping centers, fn addition to the integrated unit of shops in one building or
enclosed around a mall, include outparcels (peripheral buildings or pads located on the
perimeter of the center atljacent to the streets and major access points). These buildings
are typicalty drive-in banks, retail stores, restaurants, or small offices. Although the data
herein do not Indicate which of the centers studied included peripheral buildings, It can be
assumed that some of the data show their effect.
The vehicle trips generated at a shopping center are based upon the GLA of the center. In cases
of smaller centers without an enclosed mall or peripheral buildings, the GLA could be the same
as the gross floor area of the building.
Separate equations have been developed for shopping centers during the Christmas shopping
season. Plots were included for the weekday peak hour of adjacent street traffic and the
Saturday peak hour of the generator.
Information on approximate hourly, monthly and daily variation in shopping center traffic
is shown In Tables 7-4. It should be noted, however, that the information contained in
these tables is based on a limited sample size. Therefore, caution should be exercised
when applying the data. Also, some Information providetl in the tables may conflict with
the results obtained by applying the average rate or regression equations. When this
occurs, it is suggested that the results from the average rate or regression equations be
used, as they are based on a larger number of studies.
Trip Generation, 7th Edition
1448 Institute of Transportation Engineers
PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
JULY 6, 2007
A regularly advertised hearing on the COUNTY COUNCIL AND PLANNING DIRECTOR
INITIATED AMENDMENTS TO CHAPTER 25 RELATING TO SUPERSTORES was called
to order at 2:00 p.m. in the County of Hawaii, Aupuni Center Conference Room, 101 Pauahi
Street, Hilo, Hawaii, with Second Vice-Chairman Rodney Watanabe presiding.
PRESENT: Rodney Watanabe ABSENT & EXCUSED: William Graham
Takashi Domingo C. Kimo Alameda
Alvin Rho Andrew Iwashita
Shelly Ogata
Rene' Siracusa
Rell Woodward
Ivan Torigoe, Deputy Corporation Counsel
Christopher Yuen, Planning Director
Phyllis Fujimoto, Staff Planner
Jeff Darrow, Staff Planner
And approximately 40 people from the public in attendance.
INITIATOR: COUNTY COUNCIL
Amendment to Chapter 25 (Zoning Code), Hawaii County Code 1983 (2005 Edition), as
amended, relating to Retail Establishments. The proposed amendment would not permit
"superstores" in any zoning district. "Superstore" means a business exceeding 90,000 gross
square feet, offering for sale more than 25,000 different stock k
eeping units, and dedicating more than 20,000 gross square feet of floor area to the sale of
groceries.
INITIATOR: PLANNING DIRECTOR
Amendment to Chapter 25 (Zoning Code), Hawaii County Code 1983 (2005 Edition), as
amended, to create a "superstore" zoning district, which would be the only zoning district where
a "superstore" would be allowed.
WATANABE: This is the second hearing that we're holding on the East side on
the superstore ordinance. Couple of things to start off with, some ground rules. Okay, I do have
like 21, at this point, people that want to testify on that. You're certainly all welcome to testify.
However, because of the large number of people that wish to testify, I'd like you all to cooperate
with us and limit your testimony to three minutes each so that we have time to listen to everyone.
And, you know, after a while the attention span is gone. Even if you keep on talking we won't
heaz you anyway. That's the first item.
The second item is, you know, it's a rather emotional issue so let's try not to make this a Big
Island against Wal-Mart issue. It is an ordinance about a superstore and not about Wal-Mart.
And there's one other item that came up during our last meeting here; and that's in regard to how
Hawaiian Home Lands determines their policy and whether, you know, they're going to allow a
Wal-Mart or whatever it is to be developed on Hawaiian Home lands; and this is not the venue to
argue that point. We don't have any jurisdiction about how they govern themselves. So I'd
appreciate it if we'd stay away from those issues. With that, while it is customary for the
Planning Commission to hear items of this nature on both sides of the island, I don't believe it's
a requirement in any of our rules. And we did attempt to have a hearing of this nature on the
West side. But we were unable to establish a quorum at our last meeting, so that meeting was
cancelled.
And I've also been informed that we are up against a timeframe. We have 60 days, I believe, to
respond; and so for the Commissioners I'm hoping that one way or another, whether it's for or
against, that we'll be able to, you know, get together and forward a recommendation to the
Council regarding these issues. Yes?
SIRACUSA: I just wanted to remind you that before the Kona meeting, the meeting
before the Kona meeting; we did take testimony from the public on the superstore issue.
WATANABE: Yeah, that's right, you're right. So it's not as though it was completely
ignored. So with that, I think I'd like to turn over the mike over to Mr. Yuen so he can explain
the proposed amendments.
YUEN: Thank you, Mr. Chair. Good afternoon, Members of the Planning
Commission, members of the public. The Planning Commission is here in its role as advising
the County Council on changes in the Zoning Code. Unlike most of the things that we look at,
which aze site specific zoning amendments, these involve changes to the Zoning Law itself, you
know, changes of the basic rules of the Zoning Code. The Planning Commission will make a
recommendation to the County Council but the County Council makes the final decision. You
actually have two recommended bills concerning superstores in front of you. One was initiated
by the County Council. Council Member Higa actually drafted the bill and would ban a type of
retail outlet that the bill calls a superstore. Essentially that's a grocery store attached to a
discount, a retail discount store.
Now, and the second bill was something that I put together after reviewing that bill because the
Planning Department has to make a recommendation to the Council on any changes that the
Council initiates to the Zoning Code. This bill would not ban such stores outright but put them
in a special zoning category. So it would be necessazy, and since nothing is zoned for a
superstore currently, any site for a superstore would have to be rezoned to become a superstore
site. So those are the two options that are in front of the Planning Commission.
The third option which would be not to change the Code, and I think it's worth discussing that.
Under the present Zoning Code what's called a superstore in these bills would simply be
considered another form of retail establishment, and it would be permitted in a commercial zone
or an MCX zone, a Mixed Industrial/Commercial zone. So, for example, it could be opened up
on any sufficiently large vacant zoned commercial site, like along Henry Street or the Gateway
Center in Keaau or Honokohau Business Park. Where you're at with these two is a little bit
2
different, and where the condition is at in terms of the process. And let me talk about the process
just a little bit. The Council-initiated bill has been heard on both sides ofthe island, was put on
the agenda and heard on both sides of the island already. And on the Council-initiated bill, the
Commission has a time deadline to make its recommendation to the Council. If the Commission
doesn't have five votes, either as a favorable or unfavorable recommendation on that, it still goes
up to the Council, but as an unfavorable recommendation. The deadline will be before the next
meeting, so this is your last meeting to act on the Council-initiated bill.
The Planning Director-initiated bill was available for public comment when the Council-initiated
bill was heard in Kona a month and a half ago. In a way it has been, the people have had the
opportunity to see it. It was public, people could comment on it. But it actually wasn't put on,
we didn't have time to put it on the agenda for that meeting in Kona. So just to be consistent
with our practice in the past of having an item that makes an island-wide change heard formally
on both sides of the island, we're recommending that the Planning Commission defer action on
the Planning Director-initiated bill until the July 20`" meeting. This will result in the two bills
coming up to the Council at different times. The Council controls it own schedule. And the
Council can decide whether they want to wait and hear both bills at the same time or if they want
to take them out of sequence, because they're coming up out of sequence. But that will be up to
the Council. -
So just to repeat, you know, what the substance of the bill is again, the Council-initiated bill
would have a definition for a superstore. It has been crafted so that according to the Council it
doesn't apply to more wholesale type outlets like Costco that don't have a very lazge number of
individual types of items for sale, but it would apply to the typical Wal-Mart supercenter. The
Planning Director-initiated bill would not ban such stores but it would say that the only place you
could put them is in a new type of zoning district, so that you would have to rezone an area to
have a superstore. It limits the areas that you can have that kind of a superstore to certain
existing zoning districts and azeas that are designated for either I;Iigh Density Urban or for
Industrial/Commercial mixed use in the General Plan. And the final thing is if nothing is passed
then it would simply be legal to establish a store like this in any Commercial or
IndustriaUCommercial zoned area.
A final thing I'd like to say is that there has been a lot of public testimony that is also directed
against Big Boxes. None of these bills affect what you would call a typical big box retail outlet
like a Home Depot or a Costco. The County of Kauai, I'm not sure if they passed it. Well, the
last I saw they were on the verge of passing something like this. I did look at this as a
possibility, as an alternative; but on an island here where we have two Wal-Marts, two Home
Depots, a Costco and a K-Mart, it seems like that it would be definitely a case of locking the
barn door after the horse had gone away to institute a ban or other serious control on big boxes in
general. So, we also have lots new public testimony on this. And there are lots of people who
have signed up, so I'll stop right now and take any questions that the Commissioners may have.
WATANABE: Are there any questions for the Director from the Commission? Well, I
have a comment, Mr. Yuen. First of all, I want to thank you for the material you sent on the
traffic study; and I thought, you know, by having that we could quantify what type of traffic,
level of traffic anyway. But now that I have it I don't know what I could do with it aside from
saying, yes, supennarkets do generate more traffic. And the reason I brought it up is because
initially I thought the definition of superstore was possibly too narrow. But it seems from this
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report or information that you've provided us it's very difficult to quantify what level of traffic
we should be looking at. But it also seems obvious to me that possibly the current definition of
superstores is adequate even though there are a lot of ways to get around it. And with that, if
there are no other questions, I guess we'll be open for public testimony. So once again, I'd.like
to remind you please be concise and keep your testimony to three minutes. And I' 11 call up the
first four people on the list. I have Terrence Lee, David Paulson, Patrick Kahawaiolaa and Doug
Arnott. Is Doug Arnott here?
PUBLIC: He had to leave.
WATANABE: If he's not here, I'll call up the next person then, Scarlett O'Hara Bill.
Would you come up, please. Thank you. Okay, would you all raise your right hand so I can
swear you in, please. Do you swear or affirm to tell the truth now before the Planning
Commission?
TESTIFIERS: Yes.
WATANABE: Yes, okay. And I'll start-from my right, so Patrick you would be up first.
And, once again for the record, would you state your name and address prior to providing your
testimony.
KAHAWAIOLAA: Yes. Good afternoon. Mr. Chairman and Members of the Planning
Commission, my name is Patrick Kahawaiolaa. I live at 1260 Lama Road, Panaewa, Hawaii. I
am here to give testimony based first on the Planning Director's initiative to amend the
Chapter 25, Zoning Code, Hawaii County, to create a superstore zoning district where zoning or
superstores would be allowed. I gave testimony at the first hearing that they had, the one before
this, and I was in opposition to a superstore. However, I questioned the fact that a rezoning,
everything is being talked about a superstore has to do with Hawaiian Home Lands, so it goes
without saying. And I'd like to get a clarification at this time, maybe not by the Planning
Director which gave you the clarification the last time, but from Mr. Torigoe, the Corporation
Counsel, as to whether the County has an opportunity or the authority to rezone lands having the
status of Hawaiian Home lands. Because what has been said in the papers is this, even if they
did a ban in Hawaii County or created this zone, it would not apply to Hawaiian Home Lands.
So for purpose of clarification, this Commission needs to understand what can happen. Even if
you say there is no ban or there is a ban and they want to do a superstore on Hawaiian Home
lands, are they now allowed to circumvent the County's compliance laws and ordinances and
build it anyway, which they did with the Waiakea Center? So that's my opposition, my
opposition is in favor of a ban, opposition to a superstore and a zoning if it has anything to do
with Hawaiian Home lands on this island because we're an island state. We're already talking
about developments that have created a lot of problems in the past; and I just hope that this
Planning Commission does not continue to do that in the future, because we're now being
subjected to all the poor planning that was done, i.e. in Puna, in Hawaiian Paradise Park and
those places.
I just need to let you know 1 am advocate for Hawaiian Homes. I believe the Hawaiian Home
lands should be used for trust obligations, which was to provide home, housing, pastoral. In light
of the rhetoric that you may hear from the State of Hawaii and this Department of Hawaiian
Homes to say we need to generate income and so therefore we need to lease these lands to
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corporations, the State of Hawaii made a very generous settlement of $600,000,000 to the
Department of Hawaiian Home. And I think that's a heck of a lot of money to put infrastructure
on, rather than to go get general leasing. So I would be opposed to it. I leave you with this one
caveat, that development in Hilo was allowed to happen again up in the Waiakea Uka area when
they wanted to develop there; and how it was developed, it was developed by the County of
Hawaii taking 25 acres of Hawaiian Home lands for the flood control. The flood control is there,
that's what allowed the upper parts of Hilo to be developed; and that flood control starts at the 4-
milebridge, ascends right through the Deparhnent of Hawaiian Home lands, and it's there.
Today I'm ashamed to say that the County has not maintained it properly. It's overgrown again.
So it will create a problem at the next flood that comes down through that area. But I believe it's
time that the County takes a stand. And, well, anyway, the Planning Commission does after
being correctly advised by your Corporation Counsel -. Please don't get me wrong. If you have
the right to do it, please by all means go ahead and do it. If you don't have the right to do it,
don't do it. And when I say the right, I mean the authority and the jurisdiction to do it based on
the Hawaiian Homes Commission Act, and all the other opinions that came out that says you
couldn't rezone, you couldn't do this. And what is being brought to light in the paper is that
they're saying even if you created a ban we're still going to go do it on Hawaiian Homes because
you don't have the authority to do it, to stop us anyway. So I think that's an arrogant attitude to
take in spite of the fact. And remember, what the Department of Hawaiian Home do does not
reflect on the beneficiaries. Hawaiian Home is a State entity, so thank you.
WATANABE: I understand your emotion. And, personally, to be honest with you, I think
Hawaiian Home lands should be used for the Hawaiians also. However, I think I should allow
our counsel to briefly explain to you that, and I think he's going to say this, that we really don't
have jurisdiction over them. Okay?
KAHAWAIOLAA: Well, I need for them to know.
WATANABE: And so with that I'm going to turn it over to counsel.
KAHAWAIOLAA: Thank you, thank you, Mr. Chairman.
TORIGOE: Thank you, Mr. Chairman. I wish that there was a real crystal cleaz simple
answer that can be given to this. I think generally speaking there is no case that really addresses
this exactly in Hawaii: What we end up with, I think the best thing we can probably say is that
with respect to commercial uses like this it becomes, you know, there's some question. It has not
been exactly decided. But I think what we fall back on at this point is that, what it boils down to
is that when you trace down what you can trace through the Hawaiian Homes Commission Act
and HRS, Chapter 171, that the placement of Commercial and Industrial and such business uses
is supposed to be at least consistent with County zoning requirements. And so basically the
County has entered into a memorandum of agreement with DHHL which tries to accomplish
that. Where there is a pallet of County zoning requirements, DHHL retains the ability to
designate what kind of zoning should apply to its lands, and then the County along with DHHL
administers that zoning consistent with other County zoning. So that's, I think, the most concise
answer I can give you.
WATANABE: Thank you. Are there any other questions from the Commissioners of the
testifier? No.
KAHAWAIOLAA: Mr. Chairman, may I respond just to one thing that Mr. Torigoe said,
please.
WATANABE: Sure, sure.
KAHAWAIOLAA: Excuse me, yes. I understand a Memorandum of Agreement was made. I
just need the general public and I need this Commission to understand the MOA is not set in
concrete. It can be at the behest of either party cancelled with a 180-day notice. The point I'm
trying to make is the Hawaiian Homes Commission Act is set in concrete. That's concrete. You
need to change it, you need to amend it, which I think they did. They circumvented it by doing
an MOU or an MOA. But if you need to change anything, I think one of Hawaii's greatest
justices, Justice Richardson, said this, "If you want to change and amend the Hawaiian Homes
Commission Act, seek the consent of Congress." That's where it lies. So I thank you very
much. MOAs doesn't mean anything to native Hawaiians. It alleviates the County maybe from
law suits and stuff like that; but, trust me, that is not how you deal with Hawaiian Home Lands.
So I thank you very much for that explanation, Mr. Torigoe; and thank you, Mr. Chairman, for
allowing me to give testimony. But I'm for a ban and against any kind of superstores here in
Hawaii, especially on Hawaiian Homes. Thank you.
WATANABE: Okay, thank you. Scarlett, right?
BILL: Hello, I've been in Hawaii -.
WATANABE: Would you state your name and address, please.
BILL: Thank you. My name is Scarlett O'Hara Bill. I've lived in Hawaii since
1972. I came by way of Japan. I was an entertainer. My husband and I moved here and had a
son at Kapiolani Hospital; and we adopted a daughter who arrived from Korea. This is a
beautiful, beautiful island with a wonderful blending of cultures and peoples. And we've loved
living in Kona for 27 years.
In the last year our revenue has dropped 60 percent because of the choking traffic that has
happened over the last 5 years with all of the development on Alii Drive trying to take care of the
sewage system and build communication lines on land that is wet underneath it all the way to
Kuakini Highway. It should be a national park, all that area. There was an argument last week
about the heiau right in front of the King Kamehameha, that area that's all sacred to the
Hawaiian people; and no one ever talked about well, bring back the beach, bring back the beach.
They instead, they built a big cement pier. We're not sending out cattle any more. But it was
there for a revenue, for revenue; and the big bucks they're coming in with a big something that
we're going to see that has no air flow, really.
If you spent a day with all the zombies, all of our wonderful friends working graveyard shifts in
the Wal-Mart and the other big buildings, you would just know what this is doing to the
wonderful aloha, Aloha awinala, Aloha ka kahiaka, you know, where is that happening. Where
is that happening any longer, the iaos that stop in our trees going up the mountain to Hualalai? l
live on the corner of Anini and Hinalani so I'm 73 Anini Street. We've been there 19 years and
we see all the traffic that comes up from Costco. So I'm the one that puts the sign on the wall
6
that says "Tranquility Zone." And you're welcome to stop on a Saturday and come in and say
prayers for those who are serving for you in Iraq, or wherever. And it's silent. It's a wonderful
time to relax and be in that atmosphere.
We think it's a beautiful home; but we'd not be able to live here any longer because of the
choking traffic. No one can come into town any longer. No one can find the aloha. Such a
shopping village that you're creating there mentally will bring in 20,000 cars easily. That's just
inevitable. You don't see it, you live in Hilo. We wanted to go to the meeting and everybody
who wanted to be here can't be here because they're working, trying to hang on to their small
businesses.
You can go to KTA and get wonderful detergent for $4.95, you can't get that in the big, the
others. When you walk out half, half the amount of what you spent in a big store you can get in
a local store. And that has to be thought about; and if you don't think about it then think about
the fact that there's a fire under that dumpster in front of the police station in Kona. They had a
fire under that. You know, it has been buried there. And that's what it's going to be when
they're moving things like the Dillingham did off the coast in Honolulu. We watched Waipahu
drown, we watched how the big building they would put in for the big supercenter that they did
there, how you get lost. You can't find your way back to Wahiawa, you can't find yourself to
Mililani. You'd get lost for an hour if you drive. It's going to happen like that in five years,
would be my forecast from what we've seen. We only had one light, one there at the comer of,
like a small Pay For Less, Long's Dmg store coming into Kona; and look at it now. And we've
been here 27 years.
So my fear is that it's, again, planning, that if you can think beyond where we aze now and the
pressure you're under, my esteem friends who were voted by the people, for the people, of the
people, you're going to, the highest minded individuals that we're going to have, you're grand,
gentlemen and ladies. And I know you all. I know you, I hear what you do. But if you look at
the plan, look at the slopes that you can put that on. Put that superstore somewhere else, say
more centrally located, Waimea area. You know, give them a chance. Just come, come stay at
my house; and I'll have to give you a shower because you're going to wait in line For a long
time. Now we do have a light there because we've had so many people die in accidents coming
up Hinalani and going down and not being able to put on the brakes and going on to the
Kaahumanu Highway. You can really die in those intersections. Think what it's going to be
when you have a big van and you have a big cabin and it's full of stuff that just came in from
China that you're going to put in one of those stores?
It's not for the people and of the people. For the people and of the people are these small family
operations that have generations, like Teshima's Restaurant, and from just shave ice to what she
has today, a 100-yeaz birthday, what her family has done for this island. And think of how many
we've lost who had to move to the mainland because they can't live in it anymore. You have to
have a big track to be important. Do we need any more? Thank you very much.
WATANABE: Thank you. Are there any questions of this testifier?
DOMINGO: Question.
WATANABE: Go ahead.
7
DOMINGO: Thank you for coming. You said that you have a business?
BILL: Yes, sir, 27 years. We are probably one of the very few jewelers on the
island who repair and remake everything you have in a broken smoking box. If you're not
smoking any more, you have broken chains, you have broken -. My husband and those who
work with him can repair everything and recycle them.
DOMINGO: So what you're saying is that you're being impacted by those large stores
that have been built?
BILL: Yes, we're being impacted by people who give you shoddy merchandize
that's going to break.
DOMINGO: Or is it because of the stores being there and the traffic that has been
generated that in essence then prevents people from coming to your -.
BILL: Prevents, yes, sir. There's no parking -.
DOMINGO: So there's direct and indirect effect on your business?
BILL: That's right, that's right. It's a very sad condition for all of them. I look
at them and they all look sad, all of these families we've known for yeazs. They're working
under great stress because they can get something maybe not the quality of what they would get
from these small operations. They just don't get the quality, nor do they get the service.
DOMINGO: Yeah, okay. Excuse me.
BILL: Yes, sir.
DOMINGO: Now you had mentioned that you had other friends who have been here.
Are they in business also?
BILL: Yes, sir. They're all working as hard as they can.
DOMINGO: And they have the same sentiments as you?
BILL: Yes. We work seven days a week. Yes, sir, same sentiment. I have a lot
of signatures. I'm sure you've received at least 100 from those friends, because we did have a
meefing at the Big Island Grill and, I mean, they were totally, all those business friends are real,
they're real benefactors like you. They have children and grandchildren and they've worked
hard to build a town that's built upon the history and the aloha.
DOMINGO: So it would be proper to interpret your presentation to mean that there
should be a ban for those -?
BILL: I think this should be banned; and it could be moved to an area that is
certainly not going to be choked with just standing in traffic trying to get out of town to go home
all the way to Honaunau, and not having, there's no way -. The traffic is abominable. There's
no road length, there was never any planning with any road length. We did go to Tenerife,
Canary Islands with my daughter -- my Korean daughter married a wonderful person -- and we
saw that they have these rounds where you approach from, each plaza is a round, so you gain a
circle. You never have to stop; and so that the flow of the traffic is always there. It takes more
room to built that kind of a flow but we have the land on this island to exercise an opportunity to
do a better highway planning road, Commission planning, that would probably -.
DOMINGO: Thank you.
WATANABE: We might be getting off the subject though, yeah?
BILL: Yes.
WATANABE: Okay, please. Any other questions? Thank you. I guess you must be
Mr. Terrence Lee?
LEE: Yes, sir.
WATANABE: Would you state your name and address for the record, please.
LEE: Thank you, Mr. Chairman, Commissioners. Terrence Lee. I'm an
attorney representing a grass roots coalition that exists statewide that is opposed to superstores in
Hawaii. We have submitted extensive written testimony to the Commission and I hope that
each Commissioner will carefully study and review the materials we've submitted, particulazly
the studies that are attached to the exhibits to our letter that are case studies of how superstores
have impacted other communities on the mainland, and particularly the negative impacts on
small businesses and local businesses that have existed for 20-3Q yeazs. There is one case study,
I think, of particular significance; and that has to do with the City of Calexico in California that
has a population of approximately 30,000, slightly smaller than Hilo, but I think warrants careful
consideration by the Commissioners in determining how you're going to decide on what your
recommendation is to the Council. Hoomalu Hawaii is opposed to the Planning Director's
recommended ordinance to establish a particular zoning classification for superstores. We
believe that the empirical evidence and studies that exists on the mainland relative to superstores
makes it abundantly clear that a superstore in the County of Hawaii is a bad idea. It will create
adverse impacts on the community that far surpasses and outweighs the perceived positive
impacts, specifically I think, you know, lower prices and goods.
To the extent the Commission is considering establishing a superstore classification, Iwould
urge the Commission to, at a minimum, require as part of the approval process an economic
impact assessment before approving any development of a superstore. I think that is
unquestionably the paramount concern with superstores; and I think in a small community like
Hilo, in fact, all of our communities, Honolulu being the exception because it is so much larger
than all the other neighbor islands -. But I think at a minimum an economic assessment of what
the impact of a superstore will be to the entire community is a critically important consideration.
Thank you.
WATANABE: Do any of the Commissioners -? Mr. Woodward?
WOODWARD: Yes, sir. As always the devil is in the details. And as an attorney you
must realize that unfortunately no matter where your feelings lie this law will not work. The
reason for that is the definition. And apart from whether or not Hawaiian Home Lands is
autonomous, that's one consideration. But the way the County Council has drafted their
provision it says superstore means a business exceeding 90,000 gross square feet, number one;
offering for sale more than 25,000 different stockkeeping units, number two; and dedicating
more than 20,000 gross square feet of floor area to the sale of groceries. Well, to be a superstore
you have to satisfy or violate, depending how you look at it, all of those three criteria. So if
Target, K-Mart, Wal-Mart, Costco came in and wanted to build a 250,000 square foot building
with 80,000 stockkeeping items but they only dedicated 19,000 square feet to groceries, they're
not a superstore. So that's the problem I have with this. And this is a question that
Commissioner Siracusa brought up at the last meeting, the devil is in the details. The definition
is such that anybody can get around it. So I'm afraid, you know, that this is flawed legislation.
And regardless of whether or not the Department of Hawaiian Home Lands is autonomous, it's
bad law; and I don't see how it can work.
LEE: Commissioner Woodward, I think your point is well taken. However, it is
the responsibility of the County Council to draft appropriate definitions for a superstore and, you
know, I think it is certainly within its authority to redraft the ordinance in such a manner that it
can survive any legal challenge, whether it's vague or what have you, whatever legal challenges
are appropriate. But I think the primary responsibility of the Planning Commission is, as a
matter of public policy, whether it believes superstores are appropriate in the County of Hawaii
or not. And I think if you go back to the County Council with a clear message that at least as Far
as this Commission is concerned, superstores are not appropriate for the County of Hawaii, the
Council and its legislative aids and Corporation Counsel's office can draft the legislation in a
manner that it will survive legal challenge. I mean it has been done on the mainland, they can
borrow legislation from the other municipalities on the mainland, that have been challenged and
survived such challenges. So, yes, the devil is in the details; and I believe it is the Council's
responsibility to fulfill the challenge of drafting a law that will survive any legal challenge, but it
is this Commission's responsibility to determine as a matter of public policy whether superstores
are appropriate or not. Thank you.
WATANABE: Are there any questions for this testifier? Yes, Commissioner Siracusa.
SIRACUSA: Yes, it's my recollection that when I raised this question the last time
Director Yuen pointed out that the figures given; and these criteria are really a lot less already
than what we would normally expect on the mainland for a superstore. Am I remembering that
correctly, Director Yuen?
YLTEN: I didn't come up myself with a number of stockkeeping units, so that part I
can't verify. The sizes though, the 90,000 square feet is considerably less than the typical
superstore. And although I partially agree with what Commissioner Woodward says in that yes,
you can manipulate, a business can choose to manipulate one of these parameters and not be a
superstore any anymore, it would wind up not being -. On the other hand, it would wind up not
fitting the actual model of the Wal-Mart superstore any more. In other words, they would have
to modify their typical business which is, you now, they have a stock kind ofbusiness that they
put out and they would have to make a considerable modification to that in order not to be a
10
superstore. You would end up with a large department, retail department store that had a grocery
store in it; but you would probably have to cut down the number of individual types of units that,
different types of items that you had on the floor.
WATANABE: May I make a comment to that. I think the Director probably summarized
it best when he said we shouldn't use planning rules to legislate economics, you know, and
therefore I was hoping that we could find something that was based more around traffic as
opposed to what type of store or what type of items we would try to legislate. And based on that
and the information he provided, it seems obvious that supermarkets and probably the amount of
items that are for sale are trip generators. And based on that I think then you're still focusing in
on the amount of traffic that is generated by a particular store, whether it be a Wal-Mart or
whatever. And I think if we stick to that then we're being true to what we're empowered to do.
I really don't think we're here to legislate the type of stores.
LEE: On that particular point, Mr. Chairman, I would bring the Commissioners
attention to Exhibit 6 of our written testimony which, I'm sorry Exhibit 5 of our written
testimony which is an article entitled "Trip Generation Characteristics ofFree-Standing Discount
Superstores."
WATANABE: Okay, thank you. Are there any further questions for this? Yes, Mr. Rho
RHO: I'm not sure which one I'm looking at because they look exactly the same,
but I think it's mentioned in both. It basically starts on page 4 of 10. It's the last bullet; and then
it runs to the next page, page 5 of 10. And it ends with, "...is now part of a growing number of
dead Wal-Marts littering cities." Can you elaborate on that.
LEE: Well, I mean, you know, we are simply paraphrasing the conclusion that
this particular author came to in studying the impact that Wal-Mart had on particular
communities that it opened a superstore in. But I think the point there is that because the sheer
size of a Wal-Mart superstore, or any superstore for that matter, and it's ability to take advantage
of economies of scale and other cost-saving measures that exists when you do business in that
magnitude, they're able to offer prices far below what smaller competitors can achieve. You
know, it's not uncommon for wholesalers or manufacturers to give volume discounts based on
how much you order. The more you order, the cheaper you can buy it for. Therefore, the
cheaper you can sell it to your customers and still make a profit.
Big Box retailers, superstores operate on extremely thin margins. I mean it's no secret that
Costco derives a significant percentage of its profits ftom its membership fees. When businesses
are able to maintain those low prices and stay in business, they inevitably will drive out a
business, their weaker competitors. And I think that is the phenomenon that occurred here in this
study. I think this study is actually attached in full as Exhibit 4 to our written testimony. But the
danger is that once the competitors no longer exists, then what will the superstores do? Well,
these are profit-driven organizations. This is apublicly-traded company. Publicly-traded
companies' sole master is the stock value that Wall Street will assign to their shares. And what
drives the stock price is their return on their invested capital. And so the more profits they can
generate the higher the returns. And that's why ultimately it's believed that the perceived cost
savings that the consumer will enjoy through a superstore really doesn't exist.
11
WATANABE: Thank you. We have any other questions for this particular testifier? No?
Okay, thank you. I believe David Paulson, would you -.
PAULSON: Correct, David Paulson, Pm here with Mr. Lee.
WATANABE: I would need you to state your address though.
PAULSON: Excuse me, 3254 Hoolulu Street in Honolulu.
WATANABE: Okay.
PAULSON: I actually just wanted to address your question. I believe you were talking
about the growing number of dead Wal-Marts and you wanted elaboration on that. What
happens, and this article was focusing on Wal-Mart's supercenters specifically but it's applicable
to the type of business. What will happen is there will be an initial retail store and then very
closely to that store they will open a supercenter, close the initial store and it just lays dormant.
And so that's the dead Wal-Marts littering the city. It adds to the Urban blight. And that was
what I believe, if that was what you were asking. That's what this section was talking about.
RHO: I understand that. But I guess, and I understand that profit motive, etc.
but when you're speaking, you're speaking as if it hasn't happened yet, that it will happen. I'm
not talking about in Hawaii. I'm talking about wherever it's happening now. And I wanted to
know whether or not there was any documentation on how many stores that happened to, and the
social blight, etc. You know, I wanted to see it in black and white actually. So maybe if you can
either point me to the right number -.
PAULSON: It's Exhibit 6, is where these are coming from.
RHO: It's six. Okay, thank you.
BILL: Is it possible to speak out of turn and give a perfect example in Kona?
WATANABE: We did provide with you with your opportunity. And if we did do what
you're suggesting, we would actually never get done with this meeting. You know, we
understand it's an emotional issue, okay.
PAULSON: And essentially I second everything that Mr. Lee has said. And to the
extent that we've submitted testimony that I hope you've already reviewed -. And we do address
the issue of zoning and DHHL lands, I understand you don't want to get into that. If you do have
questions, I'd be happy to answer, attempt to answer any that you have.
WATANABE: Are there any other -? Yes, Commissioner Siracusa.
SIRACUSA: Well, I just wanted to let these two testifiers know that there are very
extensive testimony. And, by the way, Commissioner Rho, one of them is for Agenda Item No.
6 and the other one is for Agenda Item No. 7, they were only given to us this morning; and with
a full agenda, we have not had time to adequately review them. However, you know, since there
will be another Kona meeting at least on the Planning Director's -.
12
WATANABE: No.
SIRACUSA: No?
YUEN: On the Director's bill, yes.
WATANABE: Oh, on the Director's bill. Oh, I stand corrected.
SIIZACUSA: Okay, then we will have an opportunity, not to review it for the Council-
generated resolution but for the Planning Director's resolution. In the meantime, if you would
want to point us specifically to any specific land use focused parts of this so that we can make
sure to read them for the next meeting we would be very happy to do so. Well, I'm speaking for
myself, I would.
PAULSON: Well, the entire testimony relates to land use. The final section has to do
with zoning and DHHL lands; and that's going to start on Page 5 of Item 6 agenda and also page
5 of Item 7.
WATANABE: Very good. That's it?
SIIZACUSA: Thank you.
WATANABE: Okay, you maybe seated then. Thank you.
PAULSON: Thank you.
WATANABE: Let me proceed with the next four testifiers. I have Fujii, Bryan Halsey,
Terrance Crowley, and Greg Gauthier. Did I pronounce that correctly? Donohue Fujie?
FUJII: Fujii.
WATANABE: Fujii, sorry. Why don't we once again begin -. Well, would you all raise
your right hand. Do you swear or affirm to tell the truth now before the Planning Commission?
TESTIFIERS: I do.
WATANABE: Thank you. Okay, for each of you, would you state your name and
address for the record prior to your testimony. And let's begin with you, Donohue.
FUJII: Good afternoon, Chairman, Commission Members. My name is Donohue
Fujii. I'm with the engineering Finn of Austin, Tsutsumi and Associates. We are a civil
engineering fine specializing in commercial development and traffic engineering. At this time, I
just want to offer some clarification to an ITE General Article that may have been circulated.
That's related to the trip generation rates for supercenters. And the article is written by
Georgiena Vivian, published in the ITE Journal dated, I think, August 6, 2006. We have
reviewed that article and offer the following comments.
13
That article meets publication standards of ITE Journal. The article represents a summary of
data collected by the author and their conclusions. The article does not indicate whether the
article, the author has sent that data to be included in the upcoming versions of the ITE trip
generation. I'd like to note that the ITE trip generation reference is the nationally accepted.
standard guide for calculating vehicular trips, and not the ITE Journal. On the bottom of the, if
you look at page 31, beginning page 32 of that article, they list the limitations of that study. The
locations only were studied from the south central US and only five sites were studied. Only
p.m. counts were taken, no Saturday or daily trips were counted. I do want to point out that the
study is also based upon supercenters larger than 200,000 square feet with three of the five
having a gas station. All sites had garden centers, grocery, pharmacy, photo center, portrait
studio, and a tire and lube express. Some also had a business center and McDonalds. According
to the Journal's publication printed on the front cover, the publication does print a disclaimer.
The disclaimer quotes "Opinions expressed herein are those of the author's and do not reflect
official ITE or Magazine policy unless so stated."
There is no reason for my fine to dispute the accuracy of the trip generation rates documented
for those five sites. However, it is in our opinion that the noted trip generation rates are not
applicable to the proposed supercenters plan for Hawaii. The most significant reason for that
invalidity is that the Hawaii supercenter program does not include gas stations and a tire Tube
express use. As most of us know and have experienced, the gas station use, especially discount
gas like Costco, are significant trip generators.
I also want to touch upon the claim by some supporters of the bill that supercenters will generate
20,000 more vehicles per day. There maybe some stores on the mainland that have generated as
much as those 20,000 vehicular trips per day, but we do not expect that kind of level of trips for
the proposed centers in Hawaii. I do want to note that 20,000 vehicle trips does not mean 20,000
new vehicles as one vehicle will create two trips. And in Hawaii much of the trips will be further
reduced by as much as 20 to 30 percent by way ofpass-by trips. ,Pass-by trips aze vehicles that
are already on the road system. Thank you.
WATANABE: Thank you. Commissioner Siracusa?
SIRACUSA: Yes. Are you referring to this green handout that the Commissioners
received here which states that this was the Institute of Transportation Engineers, Trip
Generation Manual, that these figures came out of that? Is that what -?
FUJII: No. I'm referring to the article shown in the ITE Journal which is named
Trip Generation -.
SIRACUSA: Well, this is from that Journal.
FUJII: I'm not sure. I never saw that green sheet, Ma'am. But I'm referring to
the article in the ITE Journal dated August 6, 2006 and written by Georgiena Vivian.
SIRACUSA: I'm not sure that we even have that. That's why I don't know what you're
talking about.
14
FUJII: It's an article that has been circulated by many of the supporters of the
bill,
SIItACUSA: Okay, okay. It's in this. That's what you're saying?
FUJII: I'm not sure where, but -.
SIRACUSA: The previous testifier's.
FUJII: Yes, that is the correct article.
SIRACUSA: Okay. I'm wondering, considering what you're saying about it's not
relevant to Hawaii necessarily because it was done in the south and different size stores with
different types of services being offered, I'm wondering how relevant this would be if we looked
at those same parameters. What Planning Department staff sent out to us on the trip generation
that Commissioner Watanabe had requested, where do these figures come from? Do they come
from stores that are the same size that have the same type, you know, all of those same
parameters that this testifier was discussing. Are they just as invalid for this as for that?
YUEN: Well, this comes out of a Nationally recognized manual that is normally
used in doing, in estimating vehicle trips that would be generated by a particular type of retail
use and by the Institute of Transportation and Engineers, they have, and then we attached to it a
description of the type of store that each of these represents. Land Use Code A-13 is a free
standing discount superstore. They are, and then you see the description, it's afree-standing
discount store and, which is also described. A free standing discount store is a thing like a Wal-
Mart or a K-Mart, with the exception that they also contain afull-service grocery department
under the same roof that shares entrances and exits with the discount store area. Sothis basically
describes a Wal-Mart supercenter. I mean, it's the most typical type of retail establishment.
Now what the, then what the vehicle generation, the trip generation per thousand foot square
gross floor area, you see the comparisons? And we just took the averages. If we want to make it
a half inch thick we could have given all of the data but, and there's quite a variety, you know,
between one store and another store, between one super market and another super market. There
will be quite a variety and there's quite a range. But we took the averages, and you have the
averages here. So what this shows as a superstore is very much comparable to what we were
talking about in this bill. What it talks about as a supermarket is comparable to your typical
Safeway. Shopping center is a shopping center with a bunch of different kinds of stores in it;
and the discount store is like a big box retail establishment like a Wal-Mart or a K-Mart.
WATANABE: Are there any other questions?
SIRACUSA: No. I'll hold up.
WATANABE: Anyone else have any questions? Any other Commissioners? So, okay,
now Bryan? Is that right?
GAUTHIER: Greg, Gregory Gauthie (phonetic).
WATANABE: Greg Gauthier?
15
GAUTHIER: Gauthier? Well, I say Gauthie (phonetic). You can say Gauthier, I'll
respond.
WATANABE: Gauthie (phonetic), oh, I'm sorry, Gauthier (phonetic).
GAUTHIER: No, no, no. lt's okay. They are silent, French, wacky French people.
Chairman Watanabe, I don't want to make you perceive that I didn't hear what you said earlier
about this just being about trips, so to speak, and I understood this to be the Planning
Commission, though I have not read your preamble. I wanted to kind of talk about, use my three
minutes to talk about the planning as it impacts the community based upon my perception.
Would be -?
WATANABE: Yeah, sure.
GAUTHIER: Okay, thank you. Commissioner Chairman Watanabe, Commissioners,
mahalo for this. My name is Gregory Gauthier. I represent the ILWU. I believe that it is up to
you good community leaders to assist in directing the community choices you preside over to
move us as a community; as a society, forward. One should not just look to a supercenter for
jobs with a quantitative tint to their perspective but one should look to it with a vision that
includes those jobs which enhance life, community and society. In the example of Wal-Mart-
type supercenters, we have seen and heard time and time again that they laugh in the face of
living wages, they laugh in the faces of decent medical insurance, they laugh in the face of sick
leave benefits, and they laugh in the face of those workers who have sought to bring these basic
benefits to enhance the lives of their workers into one of their stores. One might argue,
Mr. ILWU rep (that's me) we have the Hawaii Prepaid Health Care Act here in Hawaii. Health
care is compulsory. A corporation like Wal-Mart has found ways around this vital act. The Act
requires an employee work at least 20 hours each week for four lveeks in the prior month to be
eligible for health insurance the following month. Some of these corporations believe that it is
ethical to schedule workers as many hours as possible for three weeks and reduce the hours to
below 20 hours in the fourth week so as not to pay the medical premium based upon the Hawaii
Prepaid Health Care Act. This results in underinsured working people who have to tax the
already over burden publicly funded medical systems here in Hawaii. How can stores like
Foodland, Sack `n Save, and Safeway compete in the market that permits this type of abuse?
Stores like Foodland, Sack `n Save, and Safeway have crucial benefits such as descent wages,
family medical, sick leave, vacations and reasonable methods for employees to air their
grievances. These are some of the most fundamental, crucial, building blocks to supporting the
families which build our communities here on the Big Island.
I would like to finish by again beseeching you respective volunteers who have given of yourself
to sit on this Commission to enhance the lives of the citizens in each of your respective districts.
I plead with you to support the enhancement and progression of our Hawaii island by supporting
the County Council's amendment to enhance the lives of our communities and denounce the
regression that the amendment to create a superstore zoning district would initiate. Mahalo.
WATANABE: Thank you. Do we have any questions from the Commissioners? Okay,
thank you. Bryan, this time I'm right, okay, Mr. Halsey?
16
HALSEY: Halsey, yes. Good afternoon, Chairman and Commissioners. My name is
Bryan Halsey. I'm the market manager. I oversee all the operations for our 8 stores in Wal-Mart
here in Hawaii. As you know, I've provided testimony against Resolution 21-07 at your Kona
meeting on May 24` . I'm here again today to testify against the alternative amendments as
drafted by the County's Planning Director. It's simply another way to limit competition on the
Big Island and another way to accomplish the end result of Resolution 21-07, this time by
creating a separate zoning district with the same square footage in SKU limitations. And I note
that there are a lot of definitions for stockkeeping units, SKUs and everything else. That would
definitely need to be clarified. Wal-Mart stands ready and willing and able to sit down with
community leaders, County leaders to discuss community problems, concerns and find fair
solutions that do not restrict free competition and unnecessary burden on the island families. Our
goal at Wal-Mart is to be able to serve our communities with the best service and the best quality
and selection at our every day low price. After all, that's what the residents of Hawaii deserve.
And unlike the gentleman sitting next to me, he was speaking about my company, and he doesn't
work for my company. Over 70 percent of the associates here in Hawaii, which we're the fifth
largest employer, are fulltime and they're eligible for Kaiser or HMSA -. We have way more
benefits than he listed. We are a good company. Our average pay rate for the State is $12.19 an
hour, start rate at the store is $10.00 with experience and you can go way up. We have a lot of
good jobs and we do a lot of good for the communities. And I'll be glad to answer any questions
that you might have on that.
As far as trip generation, there are a lot different definitions with that. We already have a lot of
trips that go, obviously, into Hilo where most of the jobs are in Hilo. There aze approximately
8,000 trips we have a day now at Wal-Mart; and a lot of those are stopping after or before work,
during, and it would not increase or double that necessarily. It's just going to make it easier for
them as far as logistically. If you limit it to one area of the island and you're not allowed to build
development in other areas of the island, where is it going to be? It's going to be in Hilo. And
we're already here in Hilo and we want to do the right thing. And with that I'd like to thank you
for you're the opportunity to testify today. Thank you.
WATANABE: Thank you. Any other questions for this testifier? Yes.
YUEN: I have a question about full time. Do you define full time as 40 hours a
week or some other level?
HALSEY: We have full time as over 36 hours. Anybody that works over 20 hours a
week obviously has opportunity to have HMSA or Kaiser.
WATANABE: Thank you. Terrance.
CROWLEY: Good morning, Mr. Chairman and Commissioners, sorry, good afternoon.
My name is Terrance Crowley, I go by Terry. I live at 227 East Palai Street. I'm the store
manager for the Hilo Wal-Mart. I testified before, but thank you for the opportunity to testify
again against Resolution 21-07 and its alternative. As you may recall, I helped open the Hilo
Store. I was an assistant manager there in the mid-1990's. I've actually been Hawaii since the
early 70's. My wife is a native Hawaiian. She was born and raised in Keaukaha. And we
currently live on DHHL land in Panaewa. I'll be brief and to the point.
17
Wal-Mart is against this resolution. It is anti-competitive and would hurt our island consumers.
It will also hurt local suppliers and vendors. You might not know but we're already working
with SO local suppliers and vendors on the Big Island and 487 state-wide. By adding a full line
of grocery store, we would need to expand our local supplier base with additional fanners and
local businesses. This bill would keep us from doing just that and we urge you to vote against it.
And if I could add something else, is that, you know, a lot of times you look at Wal-Mart and
everybody sees us as kind of like this big giant that's on the mainland. But when you think of
Wal-Mart with all our workers, we are all basically it's your mother, your farther, your brother,
your sister, your aunty and your uncle from here in Hilo that work at Wal-Mart. So we are part
of the community, too, and we'll do whatever we have to do to make it right. Thank you.
WATANABE: Thank you. Do we have any questions for this testifier? Okay thank you.
You maybe seated. You know, we have about I think 11 more testifiers. If it's all right, can we
take a 5-minute break, Commissioners?
WOODWARD: No.
WATANABE: Please?
WOODWARD: Okay.
RECESSED The Chair called a short recess at 3:10 p.m.
RECONVENED The meeting reconvened at 3:20 p.m.
WATANABE: Okay, the Planning Commission meeting will come back to order. At this
time we' 11 take this opportunity to call up the next four testifiers., I have a Richard Ha, Elmer -.
GOROSPE: Gorospe.
WATANABE: Gorospe. Is that correct?
GOROSPE: Yes.
WATANABE: Francis Benevides and Cory Harden. I'm missing one of you.
PUBLIC: He stepped out, Francis stepped out.
WATANABE: Francis stepped out, okay. Let me circle that. Let's see, Janet Codispoti.
PUBLIC Codispoti, she had to leave.
WATANABE: She had to leave. She wrote down she submitted testimony. Okay, so that
one is done. Anna Ater, okay, thank you. Would you all raise your right hand, please. Do you
swear or affirm to tell the truth now before the Planning Commission?
TESTIFIERS: I do.
18
WATANABE: Okay, beginning on my far right, would you state your name and address
for the record and then you can proceed with your testimony.
GOROSPE: Elmer Gorospe, 2111 Kaumana Drive, Hilo, Hawaii. I live and work in
Hilo, have a wife and three children. I know how expensive it is to support growing children and
would love to pay less for our food, clothing and other necessities of life. But I would never
shop at a superstore.
Why you ask? Because a superstore, like Wal-Mart, has been built in many parts of the country,
drives out its competition, usually small "mom and pop" stores, and gradually becomes a
monopoly. Superstores have made its millions (and billons) by doing that, as well as buying its
goods from countries where workers and environmental rights mean next to nothing.
I believe in supporting Hawaii-grown stores, like KTA and Foodland, that have been good to
Hawaii residents. These stores have been supporting our economy through the good times and
bad. We need to support them. But if we allow superstores to come to town, do you think these
stores can compete? What about even the smaller stores like Sack `n Save, Safeway, Ace
Hardware, etc.? Superstores will eat them alive.
I don't think we need a superstore on the Big Island. We're a small community and we should
stay that way. And that's why I urge the Planning Commission to reject the Planning Director's
proposal to create a superstore zoning district and support the County Council's proposal to bau
superstores in any zoning district. Thank you for considering my views and concerns.
WATANABE: Thank you. Do any of the Commissioners have any questions for Elmer?
None? Thank you. State your name and address, please.
HA: I'm Richazd Ha, 421 Lama Street. I'm a farmer. We farm 600 acres in
Pepeeko, Hamakua Springs. We have about 90 employees. And what I want to talk about is I'm
against the zoning for superstores for the reason that I think it's going to be damaging to small
farmers. The larger farmers can qualify and supply the large stores. But for, I think it's more
important to think about food security. About 70 percent of the food that we eat is imported and
we have about 10 days of food in the pipeline. If we get something like bird flu, today the foods
would be all gone. But, and it's real important to take care of the small farmers. And stores like
KTA and Foodland, they go out of their way to ride the good and the bad with the small farmers.
I'm considered a large farmer, and I'm competing with some of the small farmers. But I've
noticed over the years that they make a special effort to take care of the small farmers. And it's
really important because you don't want to really rely on just a handful of big farmers. And I
don't think it's wise to rely on one big superstore.
You know, I majored in business, I'm an accounting major. I'm supposed to, you know, I know
about competition and fair trade and all that kind of stuff. It's good to talk about that. Unless
you live in the middle of the Pacific, you really don't want to not grow your own food. That's all
I have to say.
WATANABE: Thank you. Commissioner Siracusa?
19
SIKACUSA: I'm a much smaller farmer than you. I only have 200 tangerine trees.
And years ago when I was younger and could really work that orchard I noticed that some of the
larger stores would not even look at buying my produce no matter how good it was because I
could not supply them in the numbers that they wanted..And that was like Safeway, you know.
And so I understand how the small farmers are really at a disadvantage in terms -. The larger the
grocery store the harder it is to sell your produce to them. And so I definitely appreciate you
bringing this particular slant on the subject, because we haven't had that perspective from our
previous testifiers. Thank you.
WATANABE: Any other questions for this testifier? Thank you.
HARDEN: Cory Harden, 18-4033 Kanahele Place in Mt. View. I urge you to vote for
the amendment to ban superstore and against the amendment for a superstore zoning district. I
urge you to follow Chris Yuen's recommendation to have a hearing on the second one in Kona
and to vote there so that Kona folks can be heard. You also are worried about sending a bill on
the first issue of the Council that might not be adequate, possibly you could send it with
recommendations. I'm sure you all know how to reach your County Council Members also. So
I think there are ways to deal with that.
You folks are also worried about traffic. I know that intersection up after Wal-Mart and that
whole center got built, I didn't used to mind going through it; but now I just, I cringe to go
through there. I feel like I'm back when I was on the mainland for 25 years. I thought I came
home to get away from this and it has followed me. So, and as far as statistics, according to
Rachael's Democracy and Health News, larger stores increase traffic. hz recent years number of
miles Americans drive to shop has almost doubled. Each shopping trip is two miles longer. And
shopping trips, the number grew three times as fast as other trips. And big box stores they take
up a lot of land. There's one scenario where if you want 200,000 square feet of retail space, if
you have a single story superstore and a standard 1,000 parking Spaces, that takes 20 acres. But
if you have two-story downtown buildings and shared pazking, it's more like 4 acres. There's a
study saying that we are an extremely over-retailed country in the world, we don't need more
shopping. The amount of store space per capita has doubled recently in the United States but
consumer spending hasn't grown much. So you end up with vacant malls, like the mall we are in
right now.
Some people have said that amendments are not about Wal-Mart; but you see that the top people
in Wal-Mart have taken the time to come. I've read a book called the Wal-Mart Effect; and there
were few studies, it shows that the rate of poverty falls more slowly in counties that have a Wal-
mart. It comes out to about 7 more families in poverty per county with Wal-Mart.
New Wal-Mart store causes four small businesses to close within 5 years. Five years after a
Wal-Mart opens some new jobs are gained but some are lost; and the net gain after 5 years is 30
jobs. Two years after Wal-Mart opens three retailers in the County closed. And when Wal-Mart
converts a store to a supercenter with groceries, two existing grocery stores closed.
If there's a small town near a big town with a Wal-Mart, almost half the total retail sales are lost,
almost half of the men's and boys' clothing stores went out of business. Tn the Wal-Mart town,
sales dropped, 5 percent for grocery stores, 14 percent for specialty stores, 18 percent for
clothing stores. And service business tends to drop. It's serious that people, it's so cheap to buy
20
things at Wal-Mart that people just throw the old thing away and then you have the overflowing
landfill problem.
And also there is a local survey, it was a survey of social indicators which shows that Hawaii
County has the lowest personal income and the highest percentage of people on food stamps in
the State already. We don't need more bankrupt businesses. We don't need Wal-Mart pushing
people into poverty. So I hope you will vote against superstores.
WATANABE: Thank you. We have any questions for this testifier?
DOMINGO: Mr. Chairman?
WATANABE: Mr. Domingo.
DOMINGO: Ma'am, what's the title of that book?
HARDEN: "The Wal-Mar[ Effect," and it's in the Hilo Library.
DOMINGO: And the statistics that you were reading were taken from that book?
HARDEN: Most of it, yeah.
DOMINGO: I see.
HARDEN: Yeah, most of them were. It's a very thoughtfully written book. It
explains everything. It goes into the study; and I was impressed with how carefully and
thoroughly it was done.
DOMINGO: It seems like the effect of a store such as Wal-Mart or other stores just as
huge as Wal-Mart has garnered the attention of other places throughout the country and it's
inherent problems that we've often heard of. And it seems because of that, they've written that
book; and I think it's a red flag for us to look at. If we, like in our case, since we're
contemplating adopting the ordinances, I'm glad that you brought that up and it certainly will
help me make my decision. I appreciate that.
ATER: Anna Ater, 324 Lyman Ave in Hilo. My family and I live in Hilo. 1 am
the unit chairperson for Sack `n Save here in Hilo. I am here today because the ILWU Local 142
is strongly opposed to the expansion proposal by supercenters such as Wal-Mart to develop
supercenters here on the Big Island.
Hilo has always been a small community that prides itself on its neighborliness. We know and
support our neighbors. Among our neighbors are Hawaiian grown stores like Sack `n Save,
Foodland and Longs Drugs that have been good to our residents, both for the goods they sell at a
fair price and the jobs they provide to local people.
When Wal-Mart first came to Hilo there were many who had apprehensions about a big box
store coming to our small community. We heard about low prices but we also heard about how
Wal-Mart had become the richest corporation in the couutry by driving out its economic
21
competition, small mom-and-pop stores who could barely eek out a living but contributed to the
economy nonetheless.
In the years that Wal-Mart has been on the Big Island, some small stores have gone out of .
business. While Wal-Mart has also provided jobs and low prices for Big Island residents, the
jury is still out on whether the net effect has been good for Hawaii or not. But now the Planning
Director proposes to develop a supercenter zoning district that will surely kill off most of the
competition. While we cannot fault Hilo residents for patronizing supercenters because of the
low prices we also do not want to have the economic community taken over by a huge national
corporation that may be more concerned about its profits than the impact it will have on the
community it is in.
We don't need supercenters in Hilo or on the Big Island.
The ILWU strongly opposes a supercenter zone and urges that the Hawaii County Planning
Commission reject that proposal. Thank you.
WATANABE: Thank you. Do we have any questions for this testifier?
DOMINGO: Just one comment. You said you represent the ILWU?
ADER: Right, at my store.
DOMINGO: At your store?
ADER: Yes.
DOMINGO: I see. Would you be aware of approximately how many members there
are in the division?
ADER: Both two stores it's 70, about seven zero.
DOMINGO: I'm glad that you've taken the initiative to come up and speak -.
ADER: Sorry, I was a nervous wreck.
DOMINGO: We appreciate that. Just cool off, calm down. You know, normally when
you think of unions, labor unions like that, the concentration is on wages, medical, other
benefits; and that's where it stops. As far back as I can recall, the ILWU has played a major part
in the growth of our state and effectuating certain social revolutions in the past, which has
brought about many changes that all the people in the state benefits. And I appreciate you
coming and appreciate the union coming up and making such, taking such a position and a
stance. Thank you very much.
ADER: Thuilc you.
22
WATANABE: Okay, let's go for the next four. I have Craig Nishida, Kale Gumapac,
Paul Campbell and Thomas Hilliard. Would you please raise your right hand. Do you swear or
affirm to tell the truth now before the Planning Commission?
TESTIFIERS: I do.
WATANABE: Thank you. Why don't we start with you.
NISHIDA: I thank you for letting me speak. My name is Craig Nishida. I live at 91-
2048 Luahoana Street in Ewa Beach. I have testified before the Commission at the Kona
meeting. Like I testified at that meeting, my mother is from Kona. And when I was a young boy
I always looked forward to summers in Kona because it was so different from Honolulu. It was
country and it was a time to run wild and it was great. And why I fly to this island I still enjoy
the different pace. It's so laid back, especially here in Hilo, you know. Everything is laid back,
including the sidewalks at night. But, you know, it's different. And I want to see the neighbor
islands stay that way. You know, I live in Honolulu, and I have all my life, and I love it there.
But I always curse the hour and a half drive to go 20 miles to work, you know. And I don't want
to see you folks going through stuff like that. Pknow you talk about traffic here but why don't
you try to live in Honolulu some time.
Okay, the other thing was I wanted to talk a little bit about what the Wal-Mart representative said
about the use of local suppliers. Now I know this is not about Wal-Mart, but Wal-Mart is the
face of superstores and big box. They are the leader and they're the one that always comes up in
any discussion. Wal-Mart has been able to dictate their cost to their suppliers, which is opposite
of what had been done before. They're monopolizing the market. And, yeah, they're based in
Bettenville, Arkansas but I'll let you folks know their international headquarters is in China,
which is their biggest supplier. They're going to take over China. And, you know, I hate to see
the local farmers here be dictated how much they can sell their produce to Wal-Mart. And then
what are they going to do? Make profit? Either they're going to have to raise the prices to
everybody else which will cause all the other businesses to go out of business, or they're going to
sell to everybody at that cheap price. And guess what? There aren't going to be farmers any
more. That's all I have to say. Thank you.
WATANABE: Thank you. Do we have any questions for this speaker? Okay, thank you.
Kale.
GUMAPAC: Aloha, my name is Kale Gumapac. I represent the Kanaka Council and I
am also a former business owner of Northwestern Christmas Trees. And Northwestem
Christmas Trees, we were fortunate to have been in business here in Hilo for about 17 years until
Wal-Mart came. I am one of the statistics and one of the fall-out of Wal-Mart. Wal-Mart came
in, they brought in lots and lots of Christmas trees of which we know, that I know in talking with
all of our suppliers from the Pacific Northwest, what the purchasing prices and the predatory
practices at Wal-Mart did on these farmers in the Pacific Northwestern Christmas Trees. They
bought the Christmas trees at dirt-cheap prices. They brought the Christmas trees here in Hilo,
and at that time I was one of the largest Christmas tree importers and retailers in the State. We
were bringing in about 40 containers state-wide. But when Wal-Mart showed up, they came in
with all of the cheap pricing that they were able to buy from the Christmas trees growers in the
Pacific Northwest. They dropped their prices dramatically so that they used that as a lost leader
23
here in Hilo, flooded the market..Snd if you have bought Christmas trees, once you buy a
Christmas tree, you're not going to buy another Christmas tree. And so as a result of that, two
straight years we suffered huge losses; and after the second year said that's it. When we lose
$50,000 plus a year it's pretty hard as a small business person to sustain those kinds of loses.
You need to sustain the amendment to ban the superstores. The changes proposed by Plamiing
Director Chris Yuen to set aside a special zoning district is just as threatening to our society and
the lifestyle here in Hawaii as it is anywhere. We have to keep Hawaii Hawaii. We don't want
to be another Oahu. We already see all the mistakes that Oahu is malting. Your responsibility a;
Planning Commissioners is to make sure that we can maintain this lifestyle. When the
superstores start coming in and you allow this to happen the lifestyles of the people of this island
will totally change, will totally change. Because now all of the planning that the Puna Planning
Development Committee has put together into trying to make regional areas so that we have
regional shopping centers so that the people from Puna can go there will now be forced to come
to the superstore. The superstore is a convenience but it's not a convenience for the people. It's
a convenience for Wal-Mart. Because that way they can centralize all of their forces and
resources and force people to drive in long distances from Puna, from Kau, from Volcano, from
Honokaa, as well as in the Hilo area to come. This is totally contrary to the ahupuaa concept,
totally contrary to that. And this, we cannot allow this to happen because this will impact our
lifestyle.
I would also like to remind the Planning Commission on Article 12, Section 7 of the State
Constitution that reaffirms the cultural, the traditional and customary impacts of the Kanaka
Maoli. This superstore will invariably have a huge negative impact on our farmers, on our
lawai`a (fishermen), as well as the people that work around the area. Look at the gas prices, look
at what's going to happen if people have got to drive far. Think of the ahupuaa concept so that
we can try. The best thing that you can do is to sustain this bill and to get Wal-Mart to build
little stores in these different areas. Now if they did that, we can kako `o that, we would support
that, okay, if they made it a regional thing. So that if they wanted to be good neighbors this is
the way for them to be good neighbors. Because now all the other stores, everybody else can
also compete with them. To me, that's the right solution. Mahalo.
WATANABE: Thank you. Do we have any questions for this testifier? Yes,
Mr. Domingo.
DOMINGO: Thank you, Mr. Chairman. Kale, I disagree with you on your last
statement. What they can do is build a huge warehouse and from that area, every time or when
required they can just take it from the warehouse and go to those small little stores and stock it,
and you'll face the same problem.
GUMAPAC: You're right, right. I forgot about that warehouse. I take that statement
back.
DOMINGO: Okay, you take that back and I -.
GIIMAPAC: I not one Planning Commissioner so I can take that statement back.
DOMINGO: You take that back and I agree with your statement.
24
GUMAPAC: Okay, I take it back.
DOMINGO: You know, another statement that you made to which I agree is that they
force us to travel far distances to go to their store. I think good sound planning dictates now,
especially in this very time, in this day and age, where you try to minimize traveling, the use of
vehicles to do your business or to go to work and everything. You know, you try to minimize
that because of the cost of the fuel and everything else. And that's one of my concerns. Because
what it does, it causes us to have to travel far distances to go do our shopping. And like I said, a
good planning practice is to have your village or your town in one area with your markets, your
school, etc. within that development where you don't have to travel far to go to school or go to
shopping or just to enjoy yourself with the social programs. So I agree with what you said.
GIIMAPAC: You know, Taka, that's the ideal situation, especially for this island,
especially how big the island is. And, again, we need to build communities; and it's necessary
not only to build the communities but also to offer a place for the kids to be able to go to, rather
than having the kids all being forced to go to this one big huge location, and you never know
what's going to happen. And we also have to reinforce the ohana values; and the ohana values is
very difficult when you're having to deal with these big superstores. And it becomes so
impersonal, very impersonal; and you don't even know who you're dealing with. Whereas if
you stay with the ahupuaa concept you know your friends, you know your family, and the people
that you're doing business with, you know them. And this is so important when we can see,
when we can smell, when we can hear and when we can touch our people.
WATANABE: Okay, thank you.
CAMPBELL: I am Paul Campbell. I live at 13-1342 Malama in Leilani Estates. I am
Chair of the Siena Club and represent approximately 975 members on this island. Superstores
on an island are just bad urban planning, period. We've already established that they've been
shown to produce much more traffic than any other type of retail use. Can we handle any more
traffic here or in Kona, especially in Kona? And I won't say the "W" word once, I promise. If
superstores drive out other businesses as they've been known to do, then everyone has to drive
all the way to the superstore to do their shopping, as has been pointed out. They have to drive
further, clog up one area. That's poor planning. The whole thing flies in the face of the
community development process that we've been in and the establishment of the General Plan.
Local businesses, it destroys our sense of place. It destroys our sense of culture, of continuity.
People come to the Big Island both to visit and live here because of the rural atmosphere. If the
local businesses can't survive, Hawaii Island will lose a great deal of what makes it special.
Kauai is on the verge, as Mr. Yuen said, of passing a big box store ban bill, and this is to keep
stores or businesses from becoming too centralized; and that's what we're trying to get away
from. We're trying to get the community hubs. Since they put the Malama Market and the
whole little shopping center near Pahoa, hey, it's wonderful. I come to Hilo maybe twice a
month now. Local businesses are owned by local families. Money spent in local stores stays in
the economy here. It pays their rent, it pays their mortgage, it pays their food. When only one or
two large superstores thrive the money spent here leaves Hawaii, period.
I spent most of yesterday calling local farmers from the list I got from HOFA. I called several
dozen farmers, I talked to them. Thank you Mr. Ha for coming, I really appreciate it. And you
25
should probably receive a lot of testimony from small farmers too, and other small business
people. Local businesses contribute a far greater percentage of their profits to local causes.
They have a direct connection with the local people. They know the problems and they know
what needs to be done. While some of the larger corporations contribute more in dollars they do
not give anywhere near the same percentage nor with the same aloha spirit. Where will the
workforce come from initially for these supercenters? There aren't enough people already to
work here. We already have jobs going crying. Superstores are different from other large
retails. Twice the size of existing Wal-Mart, I would say a 260,000 square foot supercenter, full-
on supercenter, is the size of the super dome. And I'm not just talking about the football field,
I'm talking the whole super dome. Many people on the island that I've talked to don't really
have a frame of reference of what these supercenters look like. You go to Las Vegas, Nevada,
you see these supercenters with not just parking lots but RV Centers that you can camp and shop
at super box stores any day 24/7, you know, you just camp out there. Superstores draw traffic
from a much larger radius, as has been pointed out; and so again the concept of centralization is
thrown in our face when we're trying to get away from that.
In conclusion I would say that Moku Loa Group, Sierrra Club Hawaii, stands in favor of banning
big box stores on this island. It is not conducive to our island lifestyle. And we also oppose any
legislation that would create special zoning for these stores because that would essentially
establish the same situation that we're trying to avoid. Mahalo and aloha.
WATANABE: Are there any questions for the testifier?
DOMINGO: I'd just like to thank you for the fine planning principles that you've
mentioned, we appreciate that.
CAMPBELL: Thank you.
HILLIARD: My name is Thomas Hilliard. My address is RR2, Box 6258, Pahoa. And
I'm coming here just as a citizen and a family man, along-term resident. I've lived here for 34
years. I lived in Hilo a very long time ago, 30 years ago. I've seen Hilo go from what it was
then, which was very quiet. I think there might have been one stop light. In any case, I've been
reading letters in the paper and I noticed some of the letters are saying people want the big box
because they're crying about high prices. So I started thinking about that and I realized that the
stores that supply us locally, while they may sometimes have prices which are a bit higher,
they're not actually really high. People don't understand that. But all of that money that they
bring in is then distributed all the way down through our local community because they have
their debts to pay, they have all their employees to pay. So, really, I think that the people who
want the savings are being very selfish because they're not realizing that actually it's their
neighbors they're paying that what they complain about the greater price to. The local business
is the heart of Hawaii, really. It's true.
And one business I want to mention is KTA. KTA is the most exceptional store I have ever
shopped in, the Hilo Store particularly. The people there are absolutely friendly and incredibly
helpful. They remodeled the store, as many of you know a couple of years back, and they did a
beautiful job. It's clean, it's tidy. They have many, many things for sale. It's nothing like a big
box store, but they still have tried to service the community. And I think they're doing an
incredible job. And I think that they will grow if we allow them. I understood that they planned
26
to create a store at Shipman Industrial, I had heard that. Maybe I would be wrong. But should,
for instance, a big box store be created, I don't think they might, they might not be able to do
that. That might shoot them down. That would be, in my opinion, very sad. And I feel very
strongly with Mr. Gumapac. I like the things that he says very much. I would say that a lot of
what he says really he speaks for where I feel as well. And, also, the tomato farmer, I'm
forgetting his name now.
WATANABE: Mr. Ha.
HILLIARD: Yes. His point is well taken, especially when we consider that if what he
says about farmers is true, what about all the other avenues of business? What about the other
things that are related in the retail areas as well? So I think that as an island we really are in a
position where it's utterly crucial. If the supply were cut from the mainland and we were dealing
with the large suppliers, they won't provide us with anything cause they'll be cut off Whereas,
local business people would be able to at least provide us with more. And, more importantly, the
dollars would stay here in our community. I really believe this, that the money we spend locally
is distributed locally. People buy cars here, their loans are with local banks, etc., etc.
And so to sum it up, I'm in favor of Higa's resolution to, or his effort to ban the big box stores;
and I am actually really against any proposition that would allow them, including the zoning
effort that Mr. Yuen has suggested.
WATANABE: Thank you.
HILLIARD: Thank you very much.
WATANABE: Do we have any questions for this testifier? No. Well, thank you. Okay.
HILLIARD: Bye guys.
WATANABE: I have two names. I don't think these people are here. But just for the
record, Doug Arnott? I don't believe he's here any more. And Francis Benevides, is he here?
PUBLIC: He left.
WATANABE: No. Okay, then, we've had quite a bit of testimony. Once again I'd like to
entertain a motion to close the public hearing, please, before we go forward.
DOMINGO: Mr. Chairman, I move that we close the public hearing.
SII2ACUSA: Second.
WATANABE: Al] those in favor, aye?
COMMISSIONERS: Aye.
WATANABE: Any opposed? Okay, now I guess we should take this one by one since
the Planning Director corrected me and indicated that we will betaking up his version of the
27
amendment to Chapter 25 at our next Kona meeting. So the Chair would entertain a motion on
the County Council-initiated amendment to Chapter 25 which bads superstores.
SIRACUSA: I'll make that motion. I move that we send a favorable recommendation to
the County Council on their resolution to ban superstores.
WATANABE: There's a second?
DOMINGO: Second.
WATANABE: Okay, there's a second. Any discussion on this? Mr. Woodward.
WOODWARD: Regardless of where you fall in the emotional spectrum, and this is an
emotional issue, as I mentioned before, this is flawed legislation; and it doesn't have a prayer of
working as it's drafted. Regardless of the question of autonomy for the Hawaiian Home Lands
issue which is where the Wal-Mart superstore is designed to go, again, as I said, you have to
satisfy three criteria to be counted as a superstoze, over 90,000 squaze feet, 25,000 storekeeping
items, and 20,000 feet of grocery space. And the loopholes are incredible. So I can't support
legislation, that even though, you know, emotionally maybe that's the right thing to do. Legally,
this thing doesn't have a prayer.
WATANABE: Any other comments-from the Commissioners? Mr. Domingo.
DOMINGO: I appreciate the fact that Commissioner Woodward had expressed his
concern, and perhaps in a way I agree with him. But if we were to send up an approval on this
with a notation and even with the transcript of this hearing for the Council, they can look at it
and make the necessary changes to make it comply or to make it enforceable, as we put it, so that
there would be, in effect, a ban on all superstores. I don't see that it's a real problem.
WATANABE: Thank you. Are there any other Commissioners who'd like to chime in?
SIRACUSA: Yes.
WATANABE: Yes, Commissioner Siracusa.
SIRACUSA: Well, I made the motion so I'd like to explain what I was thinking in terms
of making that motion. You know, several of the letters that we got that were in support of
superstores said that these are people on low income and they're looking for the lower prices and
that we couldn't possibly understand what it was like to live on a limited income. And I read
that line, and I though, huh, you know, they're probably making more money than I am. I look
for the bargains because I have a limited income. And superstores are not necessarily cheaper
than our local stores. I know for sure that I can buy dog food and cat food, the lazge sized bags,
cheaper at KTA then I can at Wal-Mart. And I'm sure that there's a lot of other products that if
you look at, you know, Wal-Mart is not cheaper. And yet even though Wal-Mart is a big box but
not a superstore, they still have right now, that bulk buying power of a National chain. And that
bulls buying power makes it absolutely impossible for there to be the so-called fair competition
and the so-called touted free competition because it's neither fair nor free. It is not a level
playing field.
28
There's another issue which is definitely a land use issue which no one but myself seems to have
brought up in the past regarding superstores, and that is that superstores require super parking
lots. And yet our Landscaping Rule 17 does not address in any way the special needs for '
landscaping, that would be necessary in order to mitigate the negative impacts of the needs for
shade, the needs for greenery to absorb smell from car fumes and clean the air. Our Rule 17
doesn't address that. And so, therefore, we would end up creating concrete deserts, asphalt
deserts, with absolutely no permeability. The rain would fall as it does in Hilo, and it would not
sink down and go into the water table where it could recharge our aquifer. It would just go down
into the storm drains where it would rush out to the ocean, and where all of that petroleum
residues from all of those cars would go out into the water. And so I do not believe that
superstores are envirorunentallybmeficial or a good land use. Thank you.
WATANABE: Thank you. Well, I'm going to chime in. This reminds a lot of when
Costco was going to first open up in Kona. And being in finance most of my adult life I was
concerned about the small business owners. But, you know, in reality, I see now a lot of the
small business owners are buying their inventory from the Costco. I'm a member of Costco but I
don't do a lot of shopping at Costco. I still shop at Safeway and some of the smaller stores
because I don't like to stand in long lines and I don't necessarily want to buy in huge bulk. So to
me it's a matter of choice.
Where I have the biggest problem with the proposed legislation from the Council is that it's
trying to limit choices. And I think you people, if you don't like the Wal-Mart superstores, don't
participate, don't patronize them. They won't come or they won't last. And from the very start I
had a real problem with the definition of a superstore and how easy it is to get around that
definition. So I really can't vote in support of that bill.
So are there any other-? Does anyone else want to make any other comments? Call for the
question. Mr. Darrow?
DARROW: Thank you, Mr. Chairman. The motion before us is to send a favorable
recommendation to the Hawaii County Council. With that I'll take the roll. Commissioner
Siracusa?
SII2ACUSA: Aye.
DARROW: Commissioner Domingo?
DOMINGO: Aye.
DARROW: Commissioner Ogata?
OGATA: Aye.
DARROW: Commissioner Rho?
RHO: Aye.
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DARROW: Commissioner Woodward?
WOODWARD: Nay.
DARROW And Mr. Chairman?
WATANABE: Nay.
DARROW: The motion does not pass, four to two.
WATANABE: With that, I guess we're going to be discussing the Director's version at
the next meeting.
The discussion ended at 4:16 p.m.
Respectfully submitted,
Sharon M. Nomura, East Hawaii Secretary
30
PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
JUNE 5, 2007
A regularly advertised hearing on the COUNTY COUNCIL AND PLANNING DIRECTOR
INITIATED AMENDMENTS TO CHAPTER 25 RELATING TO SUPERSTORES was called
to order at 11:19 a.m. in the County of Hawaii, Aupuni Center Conference Room, 101 Pauahi
Street, Hilo, Hawaii, with Chairman William Graham presiding.
PRESENT: William Graham (left at 12:07 p.m.) ABSENT & EXCUSED: Takashi Domingo
C. Kimo Alameda Alvin Rho
Andrew Iwashita
Shelly Ogata
Rene' Siracusa
Rodney Watanabe
Rell Woodward
Ivan Torigoe, Deputy Corporation Counsel
Christopher Yuen, Planning Director
Norman Hayashi, Staff Plannei
Phyllis Fujimoto, Staff Planner Jeff Darrow, Staff Planner
And approximately 33 people from the public in attendance.
5. INITIATOR: COUNTY COUNCIL
Amendment to Chapter 25 (Zoning Code), Hawaii County Code,1983 (2005 Edition), as
amended, relating to Retail Establishments. The proposed amendment would not permit
"superstores" in any zoning district. "superstore" means a business exceeding 90,000 gross
square feet, offering for sale more than 25,000 different stock keeping units, and dedicating more
than 20,000 gross square Feet of floor area to the sale of groceries.
Sa. INITIATOR: PLANNING DIRECTOR
Amendment to Chapter 25 (Zoning Code), Hawaii County Code 1983 (2005 Edition), as
amended, to create a "superstore" zoning district, which would be the only zoning district where
a "superstore" would be allowed.
GRAHAM: Norman, our next item on the agenda, and I think you spoke to me a little
bit before, is the, maybe I'll call it the superstore related ordinances; and we have a 5 and a Sa.
How should I handle these at this time? Should I start with the 5 and then do the Sa, or join them
together, or -?
HAYASHI: Well, you can take it together I would assume.
GRAHAM: Okay.
HAYASHL Just for your information, as far as both bills, we are proposing or
recommending that the Commission continue it again to the Kona meeting and take up action at
that time.
GRAHAM: All right, thank you. So our next agenda item on our regular agenda is
shown as No. 5, the initiator is the County Council; and we have an addendum to our agenda
which has a Sa which is a related item initiated by the Planning Director. They are both
amendments to Chapter 25 of the Zoning Code in Hawaii County and they both relate to what's
called superstores. Item 5 is an anzendment to the Zoning Code whereby superstores would not
be permitted in any zoning district. And superstores are defined as a business exceeding 90,000
gross square feet, offering for sale more than 25,000 different stock keeping units, and dedicating
more than 20,000 gross square feet of floor area to the sale of groceries. Agenda Item Sa
initiated by the Planning Director in response to this would create a new zoning district called the
superstore zoning district, which would be the only zoning district where a superstore is allowed.
And I believe the Planning Director gave us a rather thoughtful write-up on this explaining his
reasons for making this additional Sa item that he initiates; and just paraphrasing briefly I think
he's taking the position that if we are going to remove this superstore capability through the
zoning districts on the island it would be appropriate to create a new zoning district such that if
the County wished to have superstores somewhere the County Council would have to effectively
zone an area specifically for that purpose. And so without the County Council taking that action
it would not be allowed. But by doing this he has at least left a legal opportunity for such a
zoning district to be created if the County's representatives in the County Council and the Mayor
chose to do that. So does that meet your approval as a representation?
YUEN: Yes.
SIItACUSA: Question, please.
GRAHAM: Yes, Commissioner Siracusa.
SIRACUSA: Since No. 5 was brought already before the public in Kona and is coming
here now to this side, it seems to me that we can vote on No. 5. However, Sa did not have a
public hearing on the Kona side; and so it seems to me that to lump them together when we can
vote on one but not on the other until we get to Kona, that maybe confusing not only for the
Commissioners but for members of the public who are here. So it seems to me that we should be
taking 5 first and dealing with that and taking our vote on it; and then take the public hearing on
Sa which we will still then have to go back to Kona and have a hearing on that side of the island.
GRAHAM: Thank you, Commissioner Siracusa. I'm going to ask Mr. Torigoe in a
second here about this. But my understanding is that we did have them both in our possession as
Commissioners in Kona, but only the No. 5 was agendized, as you say. And so we got to hear
that in two places but we only heard the one in Kona. So that technically now that we're hearing
that one also here in Hilo we could vote on it today. But I think our intention and my intention is
that we will not take a vote on 5 today, the one initiated by the Council, but we'll take the
Commission's vote on the both of them when we return for another Kona hearing. Is that
something that we just administratively can do, Mr. Torigoe, or is that a proper way to handle
this?
TORIGOE: Thank you, Mr. Chairman. I think it's within your discretion to handle it
either way. You lrnow, as you noted there have been two hearings on Item 5; and actually even
that is more just a matter of policy. It's not something that's required by law that you do that.
But your policy and the practice has been to have two hearings on something like this. That has
been done for No. 5. It has not been done for Sa at this point. But if the Commission feels like it
would be clearer for everybody, you know, one way or the other, I think it's within your
discretion to either vote on 5 today and then vote on Sa the next time, or you could put off 5
today also, you know, to the next Kona meeting.
GRAHAM: Okay. That's certainly my, my intention is to put off our actual voting on
5 today until the next Kona meeting. But, Commissioner Iwashita, you have any comment on
that?
IWASHITA: My feeling is that we ought to vote on 5 today; and then we can have the
additional hearing on Sa in Kona at our next Kona meeting and vote on Sa at the time. My, it's a
procedural -. My feeling is basically just procedurally because we have two separate proposals.
And to me to put them together is not procedurally correct to try and vote on them together.
Because, you know, if one supports one measure and then opposes another, then you're going to
have a convoluted motion that says we move to approve the ban and we vote to disapprove the
added addition of another area. So it becomes convoluted and I think procedurally incorrect. So
I think they need to be voted on separately. And so my choice would be to vote on the agendized
matter that has been heard, the ban which had been heard already in Kona and we'll hear today.
WATANABE: Mr. Chair?
GRAHAM: Yes, Commissioner Watanabe.
WATANABE: I don't think we're really deciding whether we're going to combine the
voting on 5 and Sa. We're just deciding as to whether we're going to vote on 5 during this
meeting. Certainly if the Commission decides to forego on the vote this meeting on No. 5 then
we could vote separately on both issues in the subsequent Kona meeting. And so I don't think
it's an issue of whether we combining both proposals into one decision. And I have no real
problem with continuing to the Kona meeting since it's more of a practice as opposed to a rule
with regard to, you know, whether we vote after the second meeting or not. And, also, because
the two proposals are very, very similar, and I think I also want a little more information too.
GRAHAM: Okay. Mr. Yuen?
YUEN: Yes. Let me just give more information about why we're recommending
that the Commission not vote on the ban today and wait until the Kona meeting. Clearly you
will take separate votes on the two items. Somebody might say well I support the ban and I
oppose the other, but you have two proposals and you would take separate votes on them. We
would not recornmend voting on the zoning district bill today simply because it hasn't formally
been agendized on both sides of the island. It was available, it was in the materials as an option
but it wasn't actually on the agenda. So just as a matter of practice when we have an island-wide
item we want to have it agendized on both sides of the island. So that leads to our
recommendation to not vote on the ban today simply because your role here is to make a
recommendation to the County Council, and there are two alternatives now really on the same
subject, and simply to try to get both alternatives to the Council at the same time, rather than
have one go up to the Council after this meeting and the other go up after the next meeting.
That's the only reason.
GRAHAM: Thank you, Mr. Yuen. We have a lot of people here today. I'd kind of
like to get as much public testimony today as we can before we break for lunch since you all
have been very patient; and then maybe we can address the formality of what we vote or don't
vote on after the lunch. For your information, I have some work I need to do in Hilo today so I
will not be chairing the meeting in the afternoon but Commissioner Alameda will; and I'm sure
he can deal with that issue at the time. So if it's okay with the Commissioners, I'd like to move
to the public testimony now.
IWASHITA: Mr. Chair?
GRAHAM: Yes, Commissioner Iwashita.
IWASHITA: As a matter of record though I think we should proceed on both matters
separately as far as taking the testimony because they will be voted on separately. So I don't
think we should confuse the record or I have a concern that maybe it's not a, you know,
significant one. But I feel like, you know, if we mix it up, the record, then it's going to be mixed
up.
GRAHAM: If I might ask, in that case if there's someone here in the audience or many
people who have thoughts about both of these do you feel we need to call them up in two
sepazate instances or could they just speak to the general topic and indicate which of the two they
are referring to as they refer? Would that be all right with you?
IWASHITA: Sure.
GRAHAM: Okay, thanks. So let's go what way. If you would then, I have a list of
people here now. I have nine people signed up to give public testimony. And there maybe more
of you who would like to; and if you want to please go over and register with Sharon. And I'll
call the first three public testifiers up right now. We have three chairs up there. I have Paul
Campbell, Melvin Yasutake and Donna Leong. Could the three of you come forward at this
time. Thank you. Could you each raise your right hand so I can sweaz you in please. Do you
swear or affirm to tell the truth on this matter today?
TESTIFIERS: I do.
GRAHAM: Thank you. Since we do have a number of testifiers, we may or may not
get through by lunch break; but I would appreciate it if you would hold your testimony to like
three minutes or something and just be concise on what you think you'd bring to the table on
this. Maybe I'll start with Paul Campbell; and could you just, as you begin your testimony, give
your name and address so it's on our record and then speak into the microphone.
CAMPBELL: I am Paul Campbell I live at 13-1342 Malama in Leilani Estates. I am
the current chair of the Sierra Club, Moku Loa group, representing about 950 people. We stand
with our Hawaiian brothers and sisters in groups Hoomalu Hawaii and Aupuni O Hawaii. We
stand in support of their desire for self determination. And since this involves DHH land, and
there are some issues around that, I'd like to address that a little bit. Where is the social justice
in this when people have been waiting for generations to get this DHHL land? In conjunction
with that, I'm referring to the original Act, the United States Act, that formed the backdrop for
the -.
GRAI-IAM: Sir, are you addressing yourself to this particular agenda item we have
before us today?
CAMPBELL: Yes, I am. We stand, let me state firmly that we stand in favor of the big
box store ban. We stand opposed to Sa which is the amendment to the General Plan.
GRAHAM: Thank you for the clarification.
CAMPBELL: That's a clarification. The original agreement between the Department of
Hawaiian Home Lands and the County of Hawaii circles around the original Act which is known
as the Hawaiian Homes Commission Act of 1920, amended in July 1921. It states firmly in Title
1(a), the purpose, "The Congress of the United States and the State of Hawaii declare that the
policy of this Act is to enable native Hawaiians to return to their lands in order to fully support
self-sufficiency for native Hawaiians and the self-determination of native Hawaiians in the
administration of this Act, and the preservation of the values, traditions, and culture of native
Hawaiians." How did we get embroiled by putting these mega stores on Hawaiian Home lands?
What would happen if we put up some kupuna housing or student housing for the university? If
elderly housing were put there and a better transportation system evolves, it would be a perfect
use for that land; and it could go to native Hawaiians in that way.
These superstore creators did an end run last time and they're trying to do it this time. The
Council and probably this Commission is under the opinion that the County has no jurisdiction
over DHHL land. We believe that is in error. We believe it can be challenged, but that's a long-
term vision. In the meantime we have, the Sierra Club is doing an educational campaign
showing the video, the frontline, it's not a frontline, it's a documentary called "The High Cost of
Low Price." There is an excellent article by Dave Smith in this paper. I don't have to reiterate
what these superstores do to a local community once they come in. I've talked to the managers
and owners of several retail grocery stores and such. They're all pulling their hairs out,
concerned about this. -And at this point -.
GRAHAM: Could you kind of finish up so we can -?
CAMPBELL: I'll summarize here.
GRAHAM: Thank you.
CAMPBELL: Kauai just recently passed, last week passed, a big box store ban; and we
would like this Council to take it up and also support this big box store ban. It's not appropriate
for this island, for this culture, and it would be a travesty to have these big box stores here.
Mahalo.
GRAHAM: Thank you, Mr. Campbell. Any questions from the Commissioners?
SIRACUSA: Yes.
GRAHAM: Commissioner Siracusa.
SIRACUSA: Yeah, one of the members in the audience showed me a Been, bright
Been paper, I see one there also, that has been circulating. And I don't know if the other
Commissioners have seen it but it seems to me that people are under the understanding that this
body will make decisions for the Department of Hawaiian Home Lands. And so that question
about whether the County has control over what happens, I would like to hear a legal opinion on
that here.
GRAHAM: If I may, Commissioner Siracusa, I don't believe this body has any
jurisdiction or any decision making in that regard right now. Would you just like it as a piece of
information from the Planning Director?
SIRACUSA: Well, what I mean is if the decision to put up a big box store, a superstore,
on Hawaiian Home lands is not in our purview, if we have nothing to say about it, then a lot of
people are sitting here and wasting their time. It's only if their big box stores can be banned
elsewhere on the island besides Hawaiian Home lands that it becomes relevant.
CAMPBELL: Mr. Chairman, may I address that real succinctly?
GRAHAM: Hold on a second, please. Mr. Yuen, would you like to speak to that at
all?
YUEN: Well, the question of County zoning jurisdiction over Hawaiian Home
lands is one that actually goes back quite a long ways. The first pontroversy over that actually
was in 1970-1971. And it's a matter that has actually never been definitively litigated. But there
have been a number of Corporation Counsel and State Attorney General opinions on the subject.
It's clear that the counties have no jurisdiction to prevent the use of Hawaiian Home lands for
residential or pastoral purposes, and agicultural purposes, as decided by the Hawaiian Homes
Commission. The situation with respect to the Commercial and Industrial leases is not
absolutely clear; but there were Corporation Counsel and Attorney General opinions indicating
that the County zoning did not apply to those sites. So for that reason the County did not take
legal action and interfere with the building of the Wal-Mart Store that is currently in Hilo on
Hawaiian Home's site, even though it was not appropriately zoned for that site. In 2002 the
County based upon this understanding entered into an MOA with the Department of Hawaiian
Home that essentially said that with respect to County zoning that the Hawaiian Home could
develop as it wished. Hawaiian Home is supposed to follow their own master plan but that the
County would not hold Hawaiian Home to County zoning with respect to all sites, including
these Commercial and Industrial sites. So the long and short of it is that to take, for example, the
area that's immediately behind Wal-Mart, that's still in ML zone. And actually the Wal-Mart
Center if you look on the maps of the County it's in the ML zone. But the County is, if the
Hawaiian Homes Commission makes a decision to lease that for a Commercial site, which is not
as I mentioned before Retail/Commercial, is not allowed by the zoning, the County will say, yes,
you can do that; and the County will then process, for example, building permits, plan approvals
and the like for that site. Now Hawaiian Home will according to the MOA follow normal
requirements not related to the use of the land. But what I mean is they would follow something
like the height limit, the number of parking spaces, handicap stalls, landscaping, and those kinds
of requirements that go with the development of the site. That's part of the MOA. But the
County would allow Hawaiian Home to make the decision as far as the basic use of the site:
That's the gist of the MOA.
GRAHAM: Thank you.
SIRACUSA: Follow-up please?
GRAHAM: I'd like to go forward as much as I can with public testimony.
SIRP,CUSA: Okay, just quickly for clarification.
GRAHAM: Yes, Commissioner Siracusa.
SIRACUSA: So the people who are here because they oppose a superstore on Hawaiian
Home lands specifically are taking their concerns to the wrong body then. They should be taking
those concerns to DHHL: But people who are against or for superstores in general that's what
this hearing is about. Is that correct?
YUEN: Right. The Hawaiian Home Department based on the decision by the
Commission, just to give you an example, has put the site that's right behind the current Wal-
Mart up for lease, and Wal-Mart was the bidder and is currently negotiating with Hawaiian
Home to put a store on that site. But that's a decision of the Hawaiian Homes Commission, not
by any County authority.
SIRACUSA: Thank you.
GRAHAM: Thank you for bringing all this up, Commissioner Siracusa. I do think it's
quite relevant.
SIRACUSA: I thought that some of the people out in the audience needed to understand
that distinction.
GRAHAM: Yes. Let me move on to our next testifier, please.
CAMPBELL: Mr. Chairman, I just want to invite you all to the showing of the
documentary at the Keaau Community Center Thursday at 7 p.m. Mahalo.
GRAHAM: That was Paul Campbell speaking again. Melvin Yasutake, please. Could
you start with your name and address and give your testimony.
YASUTAKE: Hi. My name is Melvin Yasutake and I live in Kurtistown. I'm
representing myself, and my concern was about the traffic around that area. Because I go to the
gym in the back by Bacon Universal and some days the traffic is horrendous over there in trying
to get out or get in. And if Wal-Mart builds a superstore there it's going to be, I mean, to me it's
going to be worse, and you've got Home Depot. And I believe that area is not going to be able
to handle the crowd around that area. Okay, thank you.
GRAHAM: Thank you for your testimony, sir. Any questions?
SIl2ACUSA: Yes.
GRAHAM: Commissioner Siracusa?
SIRACUSA: Yes. You oppose the superstore on that site. Do you oppose superstores
in general or do you, you know, does it matter to you? Depends on the site specific, your
concerns?
YASUTAKE: I oppose any superstores. `Cause I travel to the mainland and I see some
of them; and the communities, they look devastated to me.
SIRACUSA: Thank you for making that clearer.
GRAHAM: Thank you, sir. Donna Leong, please. Give your name and address first
and then your testimony.
LEONG: Aloha kakou. My name is Donna Leong. I live at 60 Komohane Street in
Keaukaha. When I take a look at this, the number 5 on your agenda, I am in favor of this
proposed amendment which would not permit superstores in any zoning. Now I'm looking at
your wording of "in any zoning district." So if we have districts on our island that are already
designated, that means in none of the districts? Am I reading this correctly that there would be
no superstores?
GRAHAM: I believe you are.
LEONG: And so I am in favor of it for three reasons.
Number one, you know, our mom and pop stores which have really cemented our lifestyle here
in Hawaii are gone. When we have a superstore come in, do you have a choice of what to buy as
we did with mom and pop stores? You know, you could go to the best crackseed shops and get
crackseeds. Can you do that today? Or does it come out of a package that is displayed in 40
other stores or in just the superstores? And so that particulaz lifestyle is gone.
The second also when you talk about economics and you talk about if, you know, we'll be
making money or there will be more jobs or that people can climb the economic ladder, when we
take a look at that, how far up the ladder do we want to go, or can we be satisfied with the easy
living that we have today? If we take a look at superstores, are they to save us money? Are they
to give us jobs? Because if it does save us money, where does that money go? Now large
superstores say that, you know, they'll take care of the local district that they will be in, they'll
take care of the environment that they'll be in, and they'll take care of the people. But when you
take a look at it as I've seen in other superstores, and the one that we have here is Wal-Mart, it's
that a lot of the entry level jobs are for locals. But when you graduate to the higher levels in that
job capacity, they're not. And so how much of that will be benefit our children?
8
The third reason, taking a look at superstores, is that when we see superstores, we're going to see
nothing else. And I think that takes away from where we are able to make choices. Choices are
gone for us with superstores for that. And superstores, you know, if we had a million and a half
people as Honolulu does, it makes lots and tremendous money. Yeah, but why does Costco sit in
Kona instead of Hilo? Cause I consider that a superstore too. Okay, so when you define here
exceeding 90,000 gross square feet, you Irnow, that's quite a large store if we want to do that.
The other thing I wanted to address is I did not know that there was a Sa that they would be
attaching where you, I know that the Planning Department had come up with let's pick a zone
then for superstores for that. And I am concerned about that portion because, one, this particular
amendment here bans superstores while your Sa creates, creates a situation where they can have
superstores. And that's where it concerns me. Because I live on Hawaiian Home lands, and
believe it or not I'm building a house after 25 years after I have gotten ahanded-down lease from
my grandmother, only now building. So, you know, you can see the time span that it takes to
work with Hawaiian Home in order to get someone on there to live. When you take a look at
how much property or how much land, I kind of visualize selling land, but we do it all the time
and it's just the way of American life for there. But I can see the caring of land which I've been
brought up to do. When you take a look at that, then lands that are specifically going or is stated
in other laws to rehabilitate an indigenous people, where there's a cloud that we have verses who
has jurisdiction over whom or where's the governance -. You know, we talk about County
planning, we talk about Hawaiian Home's jurisdiction. And yet even though if you say no
superstores you're going to do it in new zoning, Hawaiian Home can just say, well, we're going
to build there anyway. So how much jurisdiction does the County have? And if they do then I
as a Hawaiian Homesteader would like the Planning Commission to come in favor with us and
say no superstores on Hawaiian Home lands. Thank you.
GRAHAM: Thank you, Ms. Leong. Any comments, questions from the
Commissioners? All right, I'll take the next three testifiers. Thank you for yours. I have James
Kim, Terry Crowley and John Yates, III, if you folks would come forward. Could you all raise
your right hand, please. And do you swear or affirm to tell the truth before the Planning
Commission today on this matter?
TESTIFIERS: Yes. I do.
GRAHAM: Thank you. Keep in mind, again, we're looking at the two agenda items.
Item 5 was initiated by the Council which would effectively ban superstores and Item Sa was
initiated by the Planning Director which would give the opportunity for the Council to create a
district where they could be allowed if the Council so chose. So you might just be cleaz in those
regards with your testimony. Mr. James Kim, if you would go first, and I'll ask you to give your
name and address, and then go ahead with your testimony.
KIM: My name is James Kim. I live at in 1184 Puhau Street. I'm against all
superstores cause if they were to build a superstore where they want to, have you ever seen the
traffic there? I know you guys pass out there. Have you ever tried crossing the street with your
kids? It's impossible. So I'm looking at traffic congestion, you know, maybe some accidents
happening. So I'm against all superstores. Even somewhere else in another district, I don't think
so. That's all I have to say.
9
GRAHAM: Thank you very much for your concise and clear testimony. Terry
Crowley next, please.
CROWLEY: Yes, sir.
GRAHAM: Name and address, please.
CROWLEY: My name is Terry Crowley and my address is 227 East Palai Street.
Chairman Graham and Commissioners, good morning. My name is Terry Crowley and I'm the
store manager for the Hilo Wal-Marc. Thank you for the opportunity to testify against
Resolution 21-07 which is Item 5 on the agenda. I helped open the Hilo store as a manager in
the mid-1990s, but first came to the islands in 1971 when I began a 24-year in the US Navy as a
Naval Officer in the submarine force. My wife is a native Hawaiian. She was bom and raised in
Keaukaha. We currently live on Department of Hawaiian Home Lands. We have a farm lot
down on East Palai. Actually mymother-in-law and my father-in-law, the late John and Mani-,
I'm sorry, John and Lani Manuia were one of the original farmers there in Panaewa.
All of us want to see the island thrive with smart growth and planning. Unfortunately that's
something that this legislation does not do. Strong community involvement also is important to
us. We were pleased to honor Pahoa High and Intermediate School Cynthia McAnish as our
store's teacher of the year last year. And we're proud to say that she went on to be named Wal-
Mart's 2006 Teacher of the Year for the State of Hawaii. In all Pahoa High School received
$11,000 in educational grants from that program. More recently we've tried to help our
neighbors, specifically around the Panaewa Park, where they recently had a fire. We've tried to
direct work parties to go and help, with our associates; and we've started fund raising activities
also to help raise funds to repair the park facilities. We also work with many local suppliers and
vendors. The Keaukaha-Panaewa Fanners Association also holds farmers markets there daily;
and we've had that ever since the store first opened. This bill would keep us from expanding our
local supplier-base with additional farmers and local businesses. So when it comes down to it,
we are against this resolution and urge you to vote against it. Thank you for your time.
GRAHAM: Thank you, sir. I'll have John Yates, please.
YATES: -Okay. Morning Chairman Graham and Commissioners. My name is John
Yates. I am a local resident ofKailua-Kona, 73-4400 Holoholo Street. My family has been here
in Hawaii for several generations. Some of you might even be familiar with my late great
grandfather, Julian R. Yates who was a senator at one time for the island.
I just want to make mention that I am a Konawaena graduate, I won't tell you the year, but I am
a Konawaenan and am proud to be a Konawaena High School grad. I'm here today to testify
against Resolution 21-07. For the past three years I've served as the store manager for the
Kailua-Kona Wal-Mart. I want you to know that I enjoy running a store for a company that truly
cares about the community that it operates in. Each year we're able to provide thousands of
dollars in grants in in-kind donations to various nonprofits across the island. Last year our grants
in donations totaled more than $100,000 for our Big Island Community, and that's between the
Hilo and Kailua-Kona stores. Among those efforts, you might recall the immediate disaster
relief with the Hawaii chapter of the American Red Cross following last October's earthquake
10
where we were helping with local police and also the Red Cross issues. Just this last week we
wanted to be the lead store in Hawaii to celebrate the 20`h amiiversary of the partnership between
the Children's Miracle Network and Wal-Mart. My company also encourages me for
community involvement. I'm proud to be considered among the Friends of the Drug Court: I've
also coached numerous youth and adult leagues for both football, basketball and soccer.
This legislation does not help our community. It stifles competition and is unfair. Please think
of our residents, think of our community, and please vote against this resolution. Thank you for
your time.
GRAHAM: Thank you for your testimony. Okay, Commissioner Siracusa?
SIRt1CUSA: I am aware of some of the philanthropic things that the Wal-Mart
company has done. Are you by mentioning this, and the previous testifier- also I noticed made a
special point of mentioning these donations that you have made, would you continue if this
Resolution passed, would you continue to make donations to the community, or are you trying to
hint to us that you would cease to do so?
KIM: I can't speak for the corporation, but I can just tell you the store that I run
would continue and I would feel that they would actually get larger going forward.
GRAHAM: Thank you, sir.
SIRACUSA: Thank you.
GRAHAM: All right. I appreciate your testimony?
OGATA: Mr. Chair? I'm sorry, I have a question.
GRAHAM: Oh, excuse me. Go ahead, Shelly.
OGATA: And this perhaps maybe addressed to Mr. Crowley as well. Both of you
have spoken very highly of some of the benefits of a so-called supercenter to the community.
But I would like to hear from both of you what perhaps some of the risks and perhaps some of
the adverse effects that could happen to our community as well.
GRAHAM: Mr. Yates, you want to address that first?
YATES: Well, I'll try the best I can on that one as far as -. We've got a lot more
positives obviously, especially being from the islands and seeing it developed. I remember
specifically when I left the islands to go to college thinking what a world there is out there when
I finally got there. I said, wow, you can actually buy milk for $3 a gallon or whatever it was
back then instead of what the price was when I was growing up. So actually I have a lot more
benefits. I can tell you that if we didn't have that I believe grocery prices would not be what
they should be today on the island, which, you know, the savings to each household, including to
myself with a household of five, is something that I would look forward to personally.
11
GRAHAM: Thank you. Mr. Crowley, do you have any comment on that, too?
CROWLEY: I can't give you any specifics as far as risks that are involved; but as we've
talked about before, we live in this community and our families grew up in this community. And
as I stated my wife was born and raised here, our families are here. So if there are risks that are
involved, we are going to address any of the risks, we'll try to address them as best we can and
try and fix whatever is brought to our attention.
GRAHAM: My understanding of Commissioner Ogata's question for you was just to
give you an opportunity to speak to the issues that other people have testified that are problems
for them, that's all.
YATES: Well, I'd like to make one comment on something that was just brought
up. One, again, I am the general store manager again so I'm born and raised as local as you can
get. So as far as opportunities for locals, it's unlimited. I also want to make mention that I have
13 upper managers where 9 of them are local. So the majority of my staff is from the island here
locally and they have a great opporhmity to advance as far as they'd like to.
GRAHAM: Thank you, sir.
CROWLEY: And I would say the same thing. I have 13 and 9 of my 13 are locals from
Hawaii, graduated from Hawaii schools.
GRAHAM: Thank you. Any follow-up, Commissioner Ogata? No?
OGATA: No.
GRAHAM: Thank you both.
IWASHITA: Mr. Chair?
GRAHAM: Yes, Commissioner Iwashita.
IWASHITA: Thank you, Mr. Chair. Just for the record, I'm a Hilo High School
graduate. My recollection, we used to bust up Kona a lot at football.
YATES: Oh, that's not true.
IWASHITA: I have a couple, I guess I'd ask for your comment. Part of our material
includes articles that talk about, you know, sort of obvious thing to me, that superstores would
require a super parking lot, yeah, in order to accommodate the people that you expect to come.
And so the claim is that that adversely affects traffic, not just in the area but in the surrounding
areas. So do you have any comments about that? That would be one of the, in my mind, an
adverse impact of having a superstore that would haue a super parking lot and super traffic
problems.
CROWLEY: I can't speak personally of it.
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GRAHAM: Mr. Crowley, go ahead, yes.
CROWLEY: Yes, I'm sorry. I can't speak personally of it, other than the fact I visited
the mainland too and I've been to some of the supercenters that they have there, and their
parking lots are not any much bigger than the one that we currently have in Hilo. It depends, you
know, obviously on the size of the store. But just for the ones that I've seen they're not much
bigger than the parking lots that we have.
GRAHAM: Thank you.
YATES: Can I also make a comment to that, Chair?
GRAHAM: Yes, Mr. Yates.
YATES: Okay. If you look at the demographics of our Kona store, right next door
is the Safeway. The way I look at it is the traffic, if you go into a supermarket plus the general
store that exists today, it benefits if you have one location. In fact, I think there will be less
traffic by having to just go to one location. We're right next to each other, we're neighbors,
everybody goes to the saine location. The rest I can't really speak for. Our market manager had
to step out so that would be my comment to that.
IWASHITA: The other question I had for both of you is that, you know, one of the
things that the Council resolution talks about is that, you know, state-wide we're trying to
promote what's called smart growth or, you know, making our communities more pedestrian
friendly and so forth. And, I guess, this superstore, super parking lot image that T have doesn't
really promote developing more towns like Hilo, and, you know, those developed in a time when
there were less cars, obviously. But that's basically the idea that the resolution talks about. How
do you see a superstore, you know, adding to? `Cause I don't redly see how it can add to the
development of a more pedestrian-oriented town.
GRAHAM: Mr. Yates?
YATES: I have not -.
IWASHITA: "More simply put, how many people are going to walk to your store and
walk away with bags in their hands and go home?
YATES: I have not seen any plans for any type of blueprint for what might be
coming or hoping to come. I can just tell you that even based on a statement here that our
market manager was going to read Wal-Mart stands ready and willing to sit down at the table
with our County leaders and discuss community problems, traffic. I've personally sat down with
the Mayor and talked about homeless, drug problems, things that really aren't you know, a direct
concern but we do have an impact on that on how we can help. So myself even traffic is a major
concern there in Kona. So I don't know if that answers your question but I'm really not prepared
to discuss or have any blueprints. I have not seen or been involved in any conversations with
that.
IWASHITA: Thank you.
13
GRAHAM: Thank you, sir. Anything else from the Commissioners? All right, thank
you all for your extended testimony and response to the Commissioners' questions. We're past
12 o'clock and I'm going to need to leave. But would the Commission like to try to finish this
agenda before lunch or take a, I guess we're going to take a lunch break.
IWASHITA: How many more testifiers?
ALAMEDA: We only have five more.
IWASHITA: Five more testifiers.
GRAHAM: We have five more testifiers, if we want to just take the testimony then
break for lunch and, you know -.
ALAMEDA: Yeah.
IWASHITA: Yeah.
PUBLIC: Yeah.
GRAHAM: All right. Maybe I can pass this over to Commissioner Alameda and he
can do that.
(Commissioner Graham left the meeting at this time, 12:07 p.m.)
ALAMEDA: Hi, ladies and gentlemen, aloha.
PUBLIC: Aloha.
ALAMEDA: My name is Kimo Alameda. I'll be the facilitator in this meeting. I'm the
first vice-chair. And so if I drop dead then Rodney Watanabe will take my place. All right,
okay. Okay, let me call up the next testifiers. So we have a Samuel Kaleleiki, all right, Cory
Harden, Kale Gumapac. Let me swear you in. If you can please raise your right hand. Do you
swear or affirm to tell-the truth now before the Hawaii County Planning Commission?
TESTIFIERS: I do.
ALAMEDA: Okay, thank you very much. We can start on my far right. So if you
could please state your name and address for the record. You can speak into the mike. That way
we can get everything recorded.
GUMAPAC: My name is Kale Gumapac and I live in Puna, Paradise Park.
ALAMEDA: Go ahead, Kale. You may share your testimony with us.
GUMAPAC: You know, this reminds me of an interesting song that was written back
in, a few years ago. You know, they paved paradise and put up one parking lot, they paved
14
pazadise and they put up one parking lot. Don't it always seem to go that you don't know what
you've got till it's gone. They paved paradise and put up a parking lot. Your responsibility, oh,
I forget, I represent the Kanaka Council; and the Kanaka Council is made up of all of the leaders
from the different Hawaiian organizations throughout this island. It's your responsibility as a
Commissioner, Planning Commissioner, to also respect the Constitution of the State of Hawaii.
And it's our responsibility to remind you about that responsibility. And the responsibility that
I'm talking about is in regards to Article 12, Section 7, "The State reaffirms and shall protect all
rights, customarily and traditionally exercised for subsistence, cultural and religious purposes
and possessed by ahupua`a tenants who are descendents of native Hawaiians who inhabited the
Hawaiian Islands." The Kanaka Council takes the position that all superstores must and should
be banned from Hawaii. The superstores are not in keeping with our cultural traditional rights
here in Hawaii. The superstores are a threat to the very fabric that we are here today. Let's not
kid ourselves. The superstores and Wal-Mart guys make it a practice to find locations where
they can usurp all of the existing laws that are now existing to make it easier for the superstores
to be built. They have done that on the mainland. They have done it when they have been shut
down. And so where do they go? They go to the Indians to have the Indians to go and buy land
so that the Indians when they buy the land now they can put it under the reservation and is no
longer under the jurisdiction of the County and other bodies. The Wal-Mart attorneys, and
E kala mai for the managers here because those aze local boys, they're not back in the main
office planning out and understanding how they can make all of these things happen. All of their
attorneys, they knew long time ago when they built this Wal-Mart that the superstore was going
to be planned. And it was no accident that they went on Hawaiian Home lands, because they
knew that the County doesn't have jurisdiction over Hawaiian Home lands. And the issues that
you guys are talking about right now as to whether or not you have the jurisdiction or not, they
already know that. This is, you guys are just going through a formality to do this kind of stuff.
And the Wal-Mart guys back at their home office, they know you guys cannot make the decision.
So this is why they come onto Hawaiian Home lands. And I oppose that.
And I also oppose the superstores because it's a threat to people like us in Puna. Because why?
We're going to be forced to drive all the way into Hilo and pay all of that expense and gas in
order to just go shopping in Hilo. For what? They're going to save us 10 to 15 cent per item
when we pay $3 or $4 per gallon on gas? It's also a threat in the Fabric that we make up of the
ahupuaa concept that we're trying to push that we have district shopping centers so that each of
the districts will be able to sustain the district of Puna, the district of Kau, the district of Hilo, the
district of Kona. When you approve these superstores, you guys are forcing all of the people to
drive all this way and you're helping to make Wal-Mart more money. They don't care about
what's happening. The donations that they're making to the people over here, that's not even a
drop in the bucket. Because Wal-Mart is the biggest corporation in the entire world. And what
is a $100,000 to them because they're going to donate? So the Kanaka Council opposes, opposes
any development and approval of the superstores, and we will do whatever is necessary to
continue to oppose it.
ALAMEDA: Thank you, Mr. Gumapac. Any questions? Commissioner Siracusa.
SIRACUSA: I just wanted to assure the testifier that the reason I asked that question
about that donations was because I wanted to find out if he was sort of threatening us with
withdrawal of donations, not just because I wanted to say oh, whoopee, Wal-Mart, thank you for
15
all those donations. And I was glad that he was not threatening us with that. But that doesn't
mean that I, you know, support that.
GUMAPAC: Well, if they decide to add more to the pot, that's good. So that will help
our local people even more. But let's keep it small as far as the stores go.
IWASHITA: I just, are you taking action with Hawaiian Home lands, too?
GUMAPAC: Absolutely.
IWASHITA: Okay, thank you.
ALAMEDA: Thank you. Ma'am, could you please state your name and address for the
record.
HARDEN: Cory Harden, 18-4033 Kanahele Place in Mt. View. I urge you to keep
superstores off Hawaii Island. I urge you to vote for the amendment to ban superstores and
against the amendment for a superstore zoning district.
As you know Kauai bans superstores and bans are also proposed on Oahu and Maui.
Superstores may cause Wal-Mart affects even if they're not Wal-Marts. I brought some data
from the high cost of low prices website which has citations for every point that it makes. It
seems fairly credible.
I do have two comments based on what the Wal-Mart managers just said. I am real disturbed
when you were asked about problems and risks that there might be that you didn't come up with
any until we thought about it a while. That makes me concern o#' whether you're looking at the
effects on the community realistically. And it could raise questions in some people's minds
about how forthcoming Wal-Mart is about, you know, some of the downsides. Everything has
an upside and a downside. So that was my reaction to what they said.
ALAMEDA: Ma'am, if you can just direct your comments to us.
HARDEN: Oh, sorry. When I'm insulting someone I like to address them directly.
Okay. Also this website said that Wal-Mart does give many donations, but they're apt to be
small donations. So you'll see a large number of donations and not realize they're not very big.
When Wal-Mart opens sales nearby businesses go down 17 to 61 percent. The effect is worse in
coral areas. It takes some time but it does happen. In Hilo we still have lots of downtown
businesses opened. They seem to be catering to cmise ship passengers. Is that the kind of town
that we want?
Average hourly Wal-Mart employee earns about $4,000 less than the Federal annual poverty
level for a family of four. Almost half of Wal-Mart Associates children are on Medicaid or not
under any health insurance program at all.
16
Wal-Mart has been sued in several states for wage and hour abuses, such as having employees
work off the clock and deleting time from payroll records. And if these folks here take issue
with anything I say, I'd be happy to hear from them. Wal-Mart is being sued for discrimination
against 1.6 million former and current female employees. Wal-Mart instructs its managers to
increase numbers of part time employees to keep their costs down.
When Wal-Mart comes to an area the wages are apt to go down.
WATANABE: Mr. Chair, you know, she's addressing a lot of stuff to Wal-Mart and etc.,
but it's really a generic type of definition. So I for myself I'd appreciate it if you'd referred to
superstores as opposed to Wal-Mart. It's not us against Wal-Mart kind of issue.
HARDEN: I'm citing the statistics because Wal-Mart is a very likely candidate.
They're planning to, they're thinking seriously of the Hilo site; and the superstore effects, as I
said, could be similar to the Wal-Mart. I'm not assuming that it would all be Wal-Mart. So -.
ALAMEDA: Could you summarized.
HARDEN: Bud I'll finish quickly. Wages tend to go down not, around the Wal-Mart
in general. Wal-Mart's environmental record is outstanding for violations, $1 million in
violations (2005), 22 stores; $3 million for storm water violations in nine states (2004); $1
million for violations (2001), 17 locations. in Pennsylvania they halted all the Wal-Mart
construction after water quality violations.
And Wal-Mart is apt to leave behind large vacant stores, which is what they're talking about also
doing in Hilo. They're going to move to the next one so they're apt to leave these eyesores
behind.
So basically if you're looking at Wal-Mart effects also in the superstores, I don't think it's
something we can afford.
ALAMEDA: Thank you, Ms. Harden. Any questions for Cory? Seeing none, you may
be seated. Thank you for your testimony. Yes, sir, Samuel.
KALELEIKI: Aloka Ka Kou.
ALAMEDA: Aloha.
KALELEIKL My name is Samuel Kaleleiki. I live in Puna, 15-2727 Hinalea Street. I
am here because of this ad, this ad here. It caught my eye. Thirty thousand plus Hawaiians are
still on the list. I was on the list for 25 years. In 2005 just received my parcel. I speak directly
to the kanaka maolis here; and I think there's only about 5 or 7 of us here. The rest, look at this
picture, look at this total picture of what's going on. This entire room here is going to plan for
the kanaka maolis, going to plan all of this happenings on this molcu. I am a member of the
Kanaka Council.
It also states the iwi on this flyer here, when any time you do development you haue to dig up the
terrain. In that terrain there are iwis of kanaka maolis. The iwi shows ownership of that
17
property, but it's irrelevant. Wa]-Mart in Honolulu took all the iwi of my kupuna in the aina
there and put them in containers. They're still in containers.
So kanaka maolis I speak to you directly. You need to demand and command and have everyone
here who's a citizen of the State of Hawaii read Article 12, especially Section 7 of Article 12. It
will tell you as planners what you must do, our officials what you must do. It states there firmly.
It states that right there. And this flyer is what brought me here today. I could hardly wait to get
here to speak. You may just be planners; but like I said I speak directly to the kanaka maolis
which probably this room of 20 people is only about 7 or 8 kanaka maolis. Kanaka maolis, you
need to demand and command. Also, I urge kanaka maolis also to learn Article 12 and
especially Section 7. You'll be surprised. All the happenings, all the yao yao that's going on,
this dog and pony show that's being produced, any time the Council sits and they see a kanaka
maoli, you see a smirk. That's the way they grade it, that's the way they're raised. We are the
only ones that really know the meaning of aloha. Really know what the meaning of aloha
means; and that's love, love for your fellow man. All those others here they spell aloha
m-o-n-e-y.
We've got the super ferry that's coming here. All those guys in Honolulu going to put their,
especially the fishermen,-going to fill up their coolers with ice, they're going to come out to our
shorelines here, and fish it, go back to the ferry that evening, go back and sell it. So, again, thank
you for listening to me. And I hope I can get one kanaka maoli to reseazch or go find Article 12,
Section 7, and if you follow me I have a bunch of it in my automobile; and I'll be glad to share it
with you, also the planners. So, any questions? Thank you very much.
ALAMEDA: Questions? Commissioner Siracusa?
SIRACUSA: Yes. I had an opportunity to look at that green paper but I believe that the
other Commissioners have not. Would you mind passing, would it be okay to pass it along?
KALELEIBI: I can read it. Yeah, I can read it or I can pass, leave it here.
SIRACUSA: Just pass it along, that would be okay, yeah.
ALAMEDA: Staff, Jeff. We'll take a look at it.
SIItACUSA: If you have other copies. Thank you so much.
ALAMEDA: Thank you, Uncle, thank you for your time today. I appreciate it. Mahalo.
Okay, well, we're moving right along. I know our Commissioners are getting hungry but you
guys must be more hungry. So we've got two more testifiers. Patrick and Donald, please come
forward.
You've already heazd some of the testimony; and may I ask that you bring something new to the
table, or you could say "ditto". But I've got to swear you in first. Uncle Pat, you're already
sworn in already, yeah?
KAHAWAIOLA`A: Yes.
18
ALAMEDA: Maybe raise your hand. Do you swear or affirm to tell the truth now
before the Hawaii County Planning Commission?
TESTIFIERS: I do.
ALAMEDA: Thank you, sir. I'll start on my far right. If you can state your name and
address, again, I guess for the record, then you may proceed.
KAHAWAIOLA`A: Yes. My name is Patrick Kahawaiola`a. I live in Panaewa now. I do and
I want to preface this by saying I think the former chairman before he left mentioned when he
started this part of the agenda was you had 5 and Sa, but I think he said the Wal-Mart
amendment; and I think that's what predicated the fact that everybody else started to talk about
the superstore as being the Wal-Mart. But it is by no fact, no stretch of the imagination every
news article that I have read, it only details about this superstore and who that individual is going
to be. The Wal-Mart was the only bidder for the area of land and, therefore, I think it's not
inappropriate for all of us to continue to believe that Wal-Mart is the superstore that maybe here.
Both of your amendments, I would like anyone'to correct me if I am wrong, I look at 5 as being a
ban and Sa as to create, I-mean there's an amendment here to the County Council, excuse me, to
the County Zoning Code to ban superstores and the other is to create a special zoning to allow
superstores. So, please bear with me, I don't have anything written but I do have this based on
the fact that I am an advocate for Hawaiian Home lands. So if this is going to be built on
Hawaiian Home lands, if that's what we're talking about, I just need to give some clarification to
all of you that the reason that I am here is to let you know that before you, Wal-Mart or anyone
else, this is not an anti Wal-Mart thing, this is anti use of Hawaiian Home lands. They're coming
before this County Council to ask your permission to rezone the land or zone lands.
I think the Director made a statement when was asked by one of,the Commissioners is this legal
to, if we don't have the jurisdiction why are we talking about it. He gave a long, I thought
Mr. Torigoe would answer the question but they gave it to Mr. Yuen or he volunteered. Well,
Mr. Yuen is an attorney so he can give his legal opinion, too, but I thought he doesn't represent
this Commission. And I think Commissioner Siracusa's request was for a legal opinion and I
would loved to have heard it from Mr. Torigoe cause he represents this Commission, not
Mr. Yuen. Mr. Yuen is an attorney but he doesn't represent this Commission. And if Mr.
Torigoe agrees with Mr.Yuen's assessment of the jurisdiction of the County that they have on
these lands, then I would entertain to all of you then why would this County need an MOA?
Why do they need an MOA with the Department of Hawaiian Home to say that their zoning does
apply or don't apply. If you don't have the right to it then you don't belong. The Department of
Hawaiian Home has no business even to come in here and ask you. They have responsibilities to
the beneficiaries, and maybe, as Uncle Sam mentioned there's about 5 or 7 of us who are
beneficiaries of the Act. So they have an obligation to the beneficiaries, not to the County of
Hawaii. And the reason I raise that question is just that.
When, in this case it was Waiakea Center who built the Wal-Mart in that azea. When they got
the lease they had an obligation under the HRS because the public was going to use that place. It
was not built just for Hawaiians. It was for the public to use. So when they have an obligation
that the public was going to use the area or use Hawaiian Home lands then they have an
obligation to comply with everything that the County says needs to be put in place, everything.
19
That's getting permits, that's going through every zoning requirement. Whatever they needed to
do they needed to comply. But what has happened is they failed to or the County closed their
eyes and allowed it to happen without having to get a permit for grubbing or whatever they
needed, electrical and all of that. They didn't need to do that. But the beneficiaries have got to
come before this. If I wanted to rezone some Hawaiian Home lands I'd have to come before
you, I'd have to get a zoning permit, I'd have to get a plan designed,.I've got to go get a building
permit, electrical permit. As a beneficiary I've got to go do it. I believe you don't have the right
to tell me that. But you do have a right to tell the Department of Hawaiian Home how they use
their lands when they invite the general public onto the land. The Act was set aside to make
lands available for us to use. We needed to be 50 percent the blood. I'm not going to dispute the
blood. That's another great contention among us Hawaiians. But that's what the Act was made
to do. Prince Kuhio set that aside, not to be used for Commercial. But when they bring
Commercial, I think you have all the rights to argue that; and this is the conflicting reports that
we're getting as Hawaiians. When they say even if we have the ban it doesn't apply on
Hawaiian Home's. Even if we do have, it doesn't apply on Hawaiian Home. I can go to the
Planning Department right now and put in a request to have my home, to build my home, and
they will hit it with a stamp that says "Not Applicable." That's all you need to do. Just go there.
They'll stamp it "Not Applicable" because it's on Hawaiian Home lands. They don't do that if
Mr. Rodillas or somebody up in Kaumana did it. They don't go in there where it says "Not
applicable." But in this County the message is "Not Applicable." So that's what I need for all of
you to understand. I think the County has an obligation under HRS 171 to look at these lands.
I am opposed to this, excuse me, I'm opposed to the amendment that would allow big box stores.
So I'm in favor of the ban here. I would be against the creation of a specific area that you're
talking because nothing in here addresses Hawaiian Home. So I think maybe you were right,
Commissioner Siracusa, about saying that we should go to Hawaiian Home to argue that. But
we can't, we can't go to Hawaiian Home when they come to you. They came to you. It's
Hawaiian Home who's going to continue to come to you because they have an MOA with you,
with this County. So I do say I'm against the ban here; and I'm against anything that would
create a new zoning on Hawaiian Home lands because you don't have that authority to do that;
and you may all want to seek a legal opinion from your legal representation, not Mr. Yuen.
Mr. Yuen is the Planning Director, he's not the guy that gives you legal opinions. Thank you.
ALAMEDA: Thank you. Any questions? Yes, go ahead.
SIRACUSA: Just one for clarification. You say you support the ban and you are
opposed to the amendment Sa on our agenda item. You're opposed to superstores on any
Hawaiian Home lands. Are you also then also opposed to superstores, period, not on Hawaiian
Home lands?
KAHAWAIOLA`A: I would be because, and that's only based on what I've read in the
newspaper, because that's the only way we get information anyway, how we get any
information. And they only suggested two places that you could have a superstore: One was on
Hawaiian Home lands and the other was at Shipman Industrial Park, that's the only two places.
And I doubt if Shipman is going to allow a, but they may and the guys in Puna maybe happy; I
don't know. But anything to deal with Hawaiian Home lands, no, because Hawaiian Home lands
should be for pastoral, agricultural and residential. It should not be used for commercial. They
have over 60 acres of our land being used there and everybody in Hilo benefits from it.
20
Everybody in Hilo benefits from 60 acres of Hawaiian Home lands being used while our list of
waiting applicants grow every day. So yes if they build something for the general public on our
lands you should have oversight. For the general public you should have the oversight because I
think you, you are the people that should care for the general public. But if it's for me, nah; stay
away. Thank you.
ALAMEDA: Thank you. Seeing no further questions, thank you Uncle Pat. Mahalo.
All right last but not least, Donald, can you please state your name and address for the record.
WESSELS: Donald Wessels. I'm from Pepeekeo.
ALAMEDA: All right, go ahead.
WESSELS: I've got a statement here.
ALAMEDA: Sure.
WESSELS: In my research of Wal-Mart I discovered that they are not a monopoly but
a monopsony. A monopsony produces the same economic prgblems as does a monopoly. While
monopoly allows overcharging of customers, a monopsony can dictate underpaying suppliers.
SIRACUSA: Would you bring your mike closer to your mouth, please.
WESSELS: I'm sorry. This eventually forces the suppliers to cut corners, produce
lower wages, poorer working conditions, and outsourcing of production and off-shoring to
corporate tax havens.
What this means locally is many of the so-called Hawaiian products sold in Wal-Mart are made
in such places as Nicaragua or China. And they don't use Hawaiian suppliers because they can't
keep afloat with the low wholesale prices that Wal-Mart dictates. On top of forcing suppliers to
move to countries that allow sweatshop labor or close down, they are forcing our small local
mom and pop shops out of business, because they can't compete with Wal-Mart's low prices.
On Hawaii Island we have local grocery stores, such as KTA, that will be threatened by Wal-
Mart's Hilo and Kona. superstores. I have been a faithful customer of KTA in Hilo for most of
my 18 years of living in Hawaii, Hawaii County. I noticed that many of their employees are
working for them for much of the time that I have been their patron. I'm assuming that the
reason the employees stay with KTA, for so long, is that they provide descent wages and
benefits. The Wal-Mart supercenters will begin to undercut the prices of local grocery stores
forcing them to narrow their profit margins. This will economically pressure local grocers to
lower wages and minimize benefits or be forced out of business. As low wages will result -.
ALAMEDA: Donald, sorry to interrupt. Are you going to read the -cause we've got
the letter I believe. Fellow Commissioners, did you get -?
WESSELS: I've never sent this.
ALAMEDA: That sounds familiar to me. Could you summarize it or is it long?
21
WESSELS: I was about half way.
ALAMEDA: Okay, go ahead
WESSELS: What Wal-Mart is doing is, what Wal-Mart is doing and it should be, got
me off-line -. What Wal-Mart is doing is legal, it should not be. I'm here to say that we must
end this monopsony process and protect our profits, our wages and our way of life here on the
Island of Hawaii. These kinds of economic pressures are degrading the ability of Hawaii citizens
to demand a living wage and local retailers and supplies from maintaining a decent profit.
In summary, I support the Big Box Ban set forth by the Hawaii Couirty Council. hi fact, it
doesn't go far enough to right this inherently undemocratic situation. We have a right to demand
that companies who do business here be accountable to the citizens of this County. We need to
make a living too.
I leave you with these questions. How far will the economic squeeze go and who or what will
stop it? Will our businesses be pressured to pay us 15 cents per hour to remain profitable while
will Hawaii's labor force have to compete for slave wages around the world to have any
employment at all? Mahalo.
ALAMEDA: All right. Donald, thank you for keeping it concise. Any questions for our
testifier? Okey, dokey, seeing none you maybe seated. Thank you for coming today. And
thank you to the public for coming. That's what these hearings are for, you know, it's for the
public to share with us your opinions, your perspectives, and then for us to think about it, and for
us to kind of make a decision. So we appreciate you all coming. We will break for lunch and
then we will talk about it more as Fellow Commissioners, but we won't vote on it today or we
will talk a little bit about whether or not we're going to vote on part of it. But we' Il definitely be
taking it up, or half of it, again in Kona. So seeing no, Fellow Commissioners, if there's no
objections for us breaking for lunch, I'd like to do that at this time, and come back probably at,
let's see, about 1:45. Yeah? Okay.
RECESSED The Chair called a recess at 12:35 p.m.
RECONVENED The meeting reconvened at 1:54 p.m.
ALAMEDA: The Hawaii County Planning Commission now returns to order. Welcome
back. We're ready to talk a little bit about how we're going to proceed with this Agenda Item
Nos. 5 and Sa. So I would like to turn it over to Norman to give us some lead. Go ahead.
HAYASHI: Thank you, Mr. Chair. Just for the Commissioners' information, just
some minor problem that we may have is that we had put the County Council's amendment on
the superstores as well as the Planning Director's proposed amendment at the next Kona meeting
on June 22"d, and this was advertised in the papers on June 2"d. So there maybe some problems
if the Commission were to act on the County Council's initiation seeing that we had advertised
another hearing out in Kona, or an opportunity for the Kona people to discuss this particular
request. But, you know, that's something as far as we're concerned we can, you know, have the
newspapers cross that item out. That's not a problem. But just maybe a slight technicality.
22
ALAMEDA: Mr. Torigoe, do you see that as a slight technicality or a big technicality?
TORIGOE: Well, once it has been published then you have the problem with like if
there's somebody in Kona who looks at the ad and says, okay, it's coming to Kona, before the
Commission votes on it they're going to come back over to Kona and I'll have a chance to testify
on it. So in that sense, you know, you probably, since it has been advertised you probably don't
want to lull people -. You know, people who wanted to testify from Kona might have come
today if they thought today was the last meeting on Item 5, is what I'm saying.
ALAMEDA: Mr. Hayashi, you have anything to respond to what Mr. -?
HAYASHI: No. I'll leave it up to the Commission to decide.
ALAMEDA: Okay, I'll go with Commissioner Iwashita and then I'll go with
Commissioner Siracusa. Commissioner Iwashita?
IWASHITA: Given that, you know, I'm always, I would like to think of myself as the
great protector of the right to be able to, you know, come out and express your views before this
body. So with that disclosure, if it's appropriate I'll move to, you know, continue further hearing
on this matter till the next Kona meeting.
ALAMEDA: Okay. Thank you, Commissioner Iwashita. Let's hear from
Commissioner Siracusa first. Commissioner Siracusa?
SII2ACUSA: Well, I'll cancel that. We11, I was hoping that, you know, like that we
could just vote on one and get it out of the way. Because it's not the last chance because it will
go back up to the Council and people will have a chance to testify at the Council, and probably
on both sides of the island as well.
ALAMEDA: That's true. That's correct. How about on this side?
WATANABE: I'm all for just rehearing it at the Kona meeting as publicized.
ALAMEDA: Okay. Commissioner Woodward?
WOODWARD: I agree.
ALAMEDA: Commissioner Ogata?
OGATA: Agree.
ALAMEDA: Okay. Maybe a motion might be the next best step.
IWASHITA: I move that we continue this matter to be, both Items 5 and Sa for further
hearing at the next Kona meeting as noticed in the paper.
WATANABE: Second.
23
ALAMEDA: Okay, motion made by Commissioner Iwashita to continue this to the next
hearing in Kona, seconded by Commissioner Watanabe. Discussion? I guess we'll save the
discussion for our Kona meeting. Okay.
SIRACUSA: I had a question for the Director. And once w,e vote on this then I don't
think I'll be able to ask him, right, because the matter will be closed -.
ALAMEDA: Go ahead.
SIRACUSA: Till the next Kona meeting. So, okay, we're talking about a definition of a
superstore as a business exceeding 90,000 gross square feet, offering for sale more than 25,000
different stock keeping units, and dedicating more than 20,000 gross square feet of floor area.
What if someone decides to build something that is just a tinny bit under? Then it will -? I mean
you could go just two feet under, two stock items under, you know, and then suddenly they will
not meet the definition and so they could build it. I mean, I'm concerned about how tight do we
want to hold these definitions.
ALAMEDA: Okay, hold that question. We're going to get back to that. Commissioner
Watanabe, you have something to add?
WATANABE: Yeah, comment to Ms. Siracusa's question there. I believe you'll be able
to discuss that even if we move, you know, to approve hearing this again in the Kona meeting
because that's part of the stuff I expected to discuss today. You know, so I don't flunk whether
we agree to hear it again at the Kona meeting that that precludes you from discussing that when
we actually get into the subject.
ALAMEDA: So you're saying rather than discuss it now we should just wait till the
Kona meeting?
WATANABE: I'm suggesting that we call for the vote, yeah, as far as whether we're
going to -. Cause all we had was a motion and a second but no vote.
ALAMEDA: Right, right. Commissioner Siracusa, are you okay with calling for the
vote and then -.
SIRACUSA: If we can discuss then after that vote, yes.
ALAMEDA: Mr. Torigoe?
TORIGOE: Well, you know, if you move to continue and it passes then you're going
to basically continue it at that point. So -.
WATANABE: Do I have that wrong then?
TORIGOE: What's that? No, I mean, you're saying that when we go to Kona then
you can discuss that again, is that what you're saying, or -?
24
WATANABE: Oh, okay, maybe I had that wrong then. My understanding was we're just
agreeing to hear it in Kona again, not that we're going to close this hearing today on that subject.
Now maybe I interpreted that wrong.
TORIGOE: Well, you know, if you want to entertain more discussion then maybe you
can just lay aside this motion for the time being and, you know, entertain a little more discussion.
IWASHITA: Without objection.
TORIGOE: If there's no objection by anybody.
ALAMEDA: Well, we have a motion on the table already, and seconded. So we could
either -.
WATANABE: I would withraw my second then.
IWASHITA: Without objection.
ALAMEDA: Is there any objection to withdrawing the motion so that we could have a
"q and a" real quick on this? Commissioner Iwashita?
IWASHITA: I believe legal counsel's suggestion was that we lay on the table the
motion to continue the matter, and then we could have the discussion and bring it off the table,
and then vote on it later. And that's, I have no objection to that.
ALAMEDA: Mr. Torigoe, was that the -?
TORIGOE: Yeah, that's fine. And if there's no objection by the Commission then you
can just do that and have your discussion, and then, you know, bring it up again when you're
done.
ALAMEDA: Okay, then how do I retrack?
IWASHITA: You don't have to. Multi-level, we're doing multi-track.
ALAMEDA: Okay.
TORIGOE: Yeah, at this point if none of the Commissioners have any objections to
laying the pending motion to continue on the table, then just lay it on the table right now and go
ahead with your discussion; and then when you're done with your discussion then call up the
motion again.
ALAMEDA: All right. So we're in discussion mode. Director?
YUEN: Well, okay, so that's done. I was going to answer a question.
ALAMEDA: Okay, go ahead.
25
YUEN: The definition, all those numbers in the definition came from the Council
bill and, yes, if you are 89,999 square feet you are not a supercenter or superstore, so yes. And
this is not, I mean, in zoning and in other areas you do draw certain lines. You have a 55 mile an
hour speed limit and you do 55 you're okay; and if you do 56 you're speeding. But it is true, and
as I said these numbers did come from the Council bill and if you do not fit under all the criteria,
then you're not considered a superstore and are not specially regulated under either bill.
SIRACU5A: So just to clarify it, all three sets of criteria have to be met?
YUEN: That's right.
SIRACUSA: And so someone who wants basically a superstore but is willing to fudge a
little bit on the numbers, like subtracting one from each set of numbers, then it would not fit the
superstore criteria and they could go ahead and -?
YUEN: Right, right. To take the ban bill, for example, actually you wouldn't have
to fudge three sets, you just fudge one. If you do not exceed one of those criteria, any one of
those criteria, then you're not a superstore under the definition, yes.
SIRACUSA: Then I sort of fail to see how any of these, you know, the Council
generated bill or your version, would, you know, address the definition of a superstore if all
someone has to do is subtract one from any of those dimensions.
YUEN: Well, it does apply. There are types of stores that, the Wal-Mart
supercenter being one, that typically do exceed all these three classifications. If the bill were
passed, say the ban bill were passed, and they came in with a modified version of their store that
either devoted less square footage to groceries or had fewer overall the number of stock items or
was smaller in the overall size it would not be a superstore, yes. .
ALAMEDA: Commissioner Siracusa?
SIRACUSA: Okay, I had another question for the Director. And that is in the event
that, in the case of the Director generated version which would set aside a certain zoning
category that wouldn't come out of Ag land, for example, would come out of something that's
already say Limited Industrial or whatever it is, would Rule 17 still apply or would we have to
look at modifying Rule 17 specifically for superstores?
YUEN: Good point. You would have to create a modification; or, actually that is a
good point and we could in the course of this bill change it so that it said landscaping should be
the same as, for example, MCX landscaping requirements.
SIRACUSA: Well, one of my concerns is that, you know, like you look at the KTA or
Wal-Mart or by Macy's there, all of those parking lots are just, it reminds me of Lawrence of
Arabia when they're standing at the edge of the desert and they say "This is the devil's anvil"
and you can see the heat waves arising, you know. We really don't have any kind of, the
landscaping, if those parking lots are in conformance then they're not really doing their job in
terms of shading and preventing, you know, like that heat escape. Or certainly in terms of they
pave so much that there's no opportunity really for rainwater to enter a permeable surface,
26
because there is no permeable surface and none of that water ends up in the aquifer. And it
seems like, l mean, it's so hot. There's nothing from the edges of the parcel going through to the
entrance of the store. It seems to me like if we're going to have something that's such a huge
store which would generate a huge parking lot that we ought to be looking at amending Rule 17
also to put a lot more plantings, tree shading types of plantings in the body of the parking area.
ALAMEDA: Commissioner Woodward.
WOODWARD: I think the question you brought up about definition is the biggest
drawback to this bill. Because from what we've heard and from what I've read you can build a
200,000 square foot store and only have 19,000 square feet in groceries and have as rnany stock
keeping items you wanted, you're still not qualified as a superstore. In any one criteria as long
as you fall below that guideline you're not a superstore, even if it's 200,000 squaze feet or pick a
number. So, you know, I think bill is, I don't laiow -. I know what they're trying to achieve but
I don't think it will do it.
ALAMEDA: Other discussion or opinions? Commissioner Watanabe
WATANABE: Yeah. At the last meeting I voiced some concern about whether we were
too narrowly defining the superstore. But that said I think I want to go back to the beginning
portions of this and -. I agree with the Director and I agree with his azguments and I agree with
what he's trying to do. Now whether any ohe of these bills has the potential to have the teeth to
really accomplish what we're hoping we can accomplish is debatable, and I'm not sure I got the
answer for that. But in light of all that's, and inclusive of what has been submitted today,
because we just got one from Cades and Schutte that indicated that, well, now what is the
difference between a 91,000 square foot superstore versus a 75,000 squaze foot K-Mart and a
20,000 square foot KTA Supermarket that's right next door? And I think, you know, as long as
we approach it from a land use issue where we're looking at the Concerns about infrastructure
and traffic flow, then I think we're in pretty good shape. But I think if we try to regulate
commerce with land use laws then I think we're headed down the wrong road. And that's why
I'm really opposed to the Council's version of it. And I think overall the Director has done a
pretty good job with whatever is available to him.
ALAMEDA: All right. Any more discussion items before we sign off and revisit this
agenda again? Commissioner Watanabe?
WATANABE: I've got one more agenda item and it's in keeping with this traffic deal.
And eazlier I had wondered whether there's a difference between say a 90,000-square foot single
purpose store versus a 90,000-square foot multi-purpose store, if the traffic differs there, and if
we can regulate it just by size rather than regulating it by how many items they keep, and
whether there's 20,000 square feet of grocery store space or not, or if that's even a good idea.
And I was hoping that maybe the staff could provide us something in the interim before we
discuss this again in the Kona meeting. And that's what I was hoping to get.
YUEN: We'll look for that. I know that in one of the nationally recognized traffic
engineering studies that there is an estimated trip generation for a supercenter, specifically. And
we can look at that and see if that's significantly different than other kinds of retail
27
establishments. They are based at least to some extent on actual studies and experiences. So
we'll see if we can find that.
ALAMEDA: All right. Seeing no further discussion, we have a motion on the table
made by Commissioner Iwashita, seconded by Commissioner Watanabe, on contimiing this
matter to our next meeting in Kona. No discussion? Very good. Staff?
HAYASHI: Commissioner Iwashita?
IWASHITA: Yes.
HAYASHI: Commissioner Watanabe?
WATANABE; Aye.
HAYASHI: Commissioner Woodward?
WOODWARD: Aye.
HAYASHL Commissioner Ogata?
OGATA: Aye.
HAYASHI: Commissioner Siracusa?
SIItACUSA: Aye.
HAYASHI: And Chair Alameda?
ALAMEDA: Aye.
HAYASHI: Motion carries. All right, thank you. Thank you, Fellow Citizens, for
showing up today.
The discussion ended at 2:20 p.m.
Respectfully submitted,
Shazon M. Nomura, Secretazy
28
PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
May 24, 2007
A regularly advertised hearing on the COUNTY COUNCIL INITIATED AMENDMENT TO
ZONING CODE RELATING TO "SUPERSTORES" RETAIL ESTABLISHMENTS was
called to order at 2:43 p.m. at the King Kamehameha's Kona Beach Hotel, 75-5660 Palani Road,
Kailua-Kona, Hawaii, with Chairman William Graham presiding.
PRESENT: Takashi Domingo
William Graham
Shelly Ogata
Alvin Rho
Rene' Siracusa
Rodney Watanabe
Rell Woodward
ABSENT & EXCUSED: C. Kimo Alameda
Andrew Iwashita
Ivan Torigoe, Deputy Corporation Counsel
Jeff Darrow, Staff Planner
And approximately 14 people from the public in attendance.
INITIATOR: COUNTY COUNCIL
Amendment to Chapter 25 (Zoning Code), Hawaii County Code 1983 (2005 Edition), as
amended, relating to Retail Establishments. The proposed amendment would not permit
"superstores" in any zoning district. "Superstore" means a business exceeding 90,000 gross
square feet, offering for sale more than 25,000 different stock keeping units, and dedicating more
than 20,000 gross square feet of floor area to the sale of groceries.
GRAHAM: We'll move onto our next agenda item today. This one, we have
the County Council as initiator; and it's a proposed amendment to Zoning Code relating to retail
establishments. And the proposed amendment would not permit superstores in any zoning
district, and we have a definition of superstores. Again this is a Zoning Code issue, so we will
only do recommendations. My understanding is we will have two hearings: One here today in
Kona and then our next meeting in Hilo. So we will not be taking any voting action on this
today, but just getting a little description from Jeff on the intention and how this Zoning Code
amendment would work, and also take public testimony. So Jeff, if you would.
DARROW: Thank you, Mr. Chairman. Just briefly I'll reiterate a little bit of
the background and recommendation as provided by the Planning Director. This is a County
Council initiated action requesting that the Planning Director and the Planning Commission
review and recommend an approval to be able to ban superstores on the island. At this tune they
are proposing to define "superstore" as a business exceeding 90,000 gross square feet, offering
for sale more than 25,000 different stockkeeping units, and dedicating more than 20,000 gross
square feet of floor area to the sale of groceries. For reference, a stockkeeping unit is an
individual type of sales item. And within the background it uses an illustration of a can of soup
as being one stocklceeping unit. In essence, the bill proposes to ban a combination of a large
department store with a grocery store. Mainly they are looking at Wal-Mart Superstore types of
stores, but it also would be similar to a Target type of store as well. Under the cun~ent Zoning
Code, there is no definition of a "superstore"; we would just define it under, as a type of retail
establishment. Under the proposed ordinance, the Council defines a "superstore" as well as adds
in under retail establishment the section that states "or superstores" -let me just reiterate the last
line under the definition of retail establishment. It states that the term a retail establishment
"does not include open storage yards for new or used building materials, yards for scrap, salvage
operations for storage or display of automobile parts, service stations, repair garages, veterinary
clinics and hospitals" -and then it adds in a phrase - "or `superstores' as defined in this section,
as superstore shall not be permitted in any zoning district in the County of Hawaii",basically
not allowing superstores on the island.
The Planning Director has reviewed this request, and is recommending that the Planning
Commission send an unfavorable recommendation on the bill. He states his reason within the
recommendation. Basically, the Planning Director proposes an alternative approach that the
Zoning Code be amended so that a superstore is a permitted use only in a Superstore District. It
would be a new zoning district that the Planning Director is bringing forth. This would establish
a superstore in an area spzcifically designed for a superstore. Further on it states that the
Planning Director has added on Exhibit D, which is the proposed amendment. For purposes of
today this particular alternative was not published, so there would be no action on that; the only
action that would be taken today would be, you would be looking at the request to send a
recommendation to the Hawaii County Council on its proposed amendment. But the Planning
Director is proposing to submit an alternative, which is already under Exhibit D. Because of not
being published at this point, it can't be, there can be no action on that particular amendment.
But again the Planning Director is recommending an alternative that would allow a new zoning
district called a "Superstore". Right now this would allow most of the commercial uses that are
currently allowed in an MCX, which is a mixed commercial distpct. A developer in a Superstore
district would also want to possibly do other types of uses that would be similar to those in a
Commercial Mixed district. The Superstore district could be rezoned only from a site currently
zoned General Commercial or Commercial-Industrial Mixed, or on a property that would qualify
to be rezoned to CG or MCX under the General Plan. And again, for any of these types of
zonings to occur, obviously they would have to come to the Planning Commission and to the
Hawaii County Council for their approval.
So at this time the Planning Director is recommending that an unfavorable recommendation be
sent for this particular application to the Hawaii County Council, and then at a later date - I
believe on June 5`h -the Planning Director will be presenting his amended alternative request.
It's my understanding as well that this particular item will be rescheduled for a Hilo meeting as
well.
GRAHAM: Thank you, Jeff, If we have any signed-up testifiers, it would be
good have a list. And if the Commissioners have any questions for Jeff, we could ask them right
now. Commissioner Watanabe?
WATANABE: Jeff, just for clarification, he is not expecting us to forward an
unfavorable recommendation at this meeting, right?
2
DARROW: I don't think so. I think -.
WATANABE: We are going to re-discuss, rehash this on the June 5`~' meeting,
right?
DARROW: Correct.
WATANABE: Yeah, thank you.
DARROW: But I believe what's going to happen is, similar to how this is
going to need to be heard on both sides of the island, his proposed amendments will need to be
heard on both sides of the island as well.
WATANABE: Can I follow up?
GRAHAM: Commissioner Watanabe?
WATANABE: Yeah, you know, I liked his comments and all of that. My only
issue with this is -and you might ask him this since he is not here today. Does that mean this,
by this definition of a superstore, does that mean if I have 90,000 gross square feet, 25,000
different stockkeeping units, but 19,000 square feet dedicated to groceries that I'm not a
superstore? So I'm wondering if we defined the superstore maybe too narrowly. Yeah. I'm not
against what he is saying; I'm just saying maybe we defined it too narrowly.
DARROW: I believe the definition actually is initiated by the County Council.
So this was a definition that was proposed by -.
WATANABE: The Council?
DARROW: Yeah, I mean they're suggesting that this be the wording for the
definition of a superstore.
GRAHAM: Okay. Any other questions? Commissioner Domingo?
DOMINGO: Rather than a -, well, a recommendation to deny the Council's
request has been made by him; and in its place he's introducing a bill that would create another
zoning district to enable such a store to be built. Now I think you indicated that naturally it
would have to be under commercial or general designation also, and then within that you would
create the zoning for the superstore?
DARROW: What would happen is a Superstore district would only allow to be
rezoned from a General Commercial, current General Commercial district -.
DOMINGO: Current.
DARROW: Or aCommercial-Industrial Mixed. And again, it would have to
go through the rezoning process, so it would come under scrutiny from the Planning Commission
as well as the Hawaii County Council.
DOMINGO: You know, I'm wondering what's the Planning Director's concern
with regard to him initiating his own bill if in fact it would address the concerns that the Council
may have, or probably not at all. And I think, from what I'm hearing, the Council's concern is
the impact the so-called superstores will create within the community, be it rather infrastructural
impact or their effect on surrounding businesses in a particular area. So I don't know if those
concerns would be addressed also. If not, then, you know, I think his amendment is just
redundant and would not accomplish anything at all. I think we need to decide in actuality in
plain words why we don't want superstores. And I don't think superstores are totally negative,
have a negative impact on a community. Of course, we've heard instances where some of these
stores have created their own problems from where they are in the mainland. And so far, I
haven't seen or heard anything like that happening here on the Big Island or in the State. So I
think before we even consider doing this, we just need to look at its economic impact and impact
on other probably social issues that may or may not be there. Thank you.
GRAHAM: Commissioner Siracusa?
SIRACUSA: Actually, I think that what the Director's proposed resolution does
is the opposite of what the County Council's generated -. Because the County Council is saying
basically no to superstores, and the Director's resolution by saying, well, we can only put it in an
S zone district is enabling superstores. So I think they are quite opposed, and depending on how
you feel about the issue, that seems to be the way, you know, that one would choose to vote;
whether you believe that superstores are a good thing and would do all the things they are saying
they would do, lower prices, blah blah blab, or if you feel that they are too intrusive, it would
destroy other local smaller businesses, and all the other things that are being said on the other
side. I think it's aneither-or. I think they're diametrically opposed, the two resolutions.
GRAHAM: Okay, thank you. I think we can probably discuss some of these
issues a lot better in our next meeting when we have the Planning Director present, and really
today what we're here to do is get public input as much as possible. Jeff?
DARROW: Just for note, I want to bring to the attention as well. The Planning
Department has received numerous letters on this item, basically many for support, many of
opposition, so just mixed coming in from the letters as well.
GRAHAM: All right. Thank you, Jeff. I have nine folks signed up to testify
here today, so maybe I can take four at a time, And since we are late and are tired, I would hope
you could be concise and to the point, and just let us know how you feel about this as clean and
crisply as you can. I'll read off four names, and if you folks would all come forward up to the
table: Brian Halsey, Craig Nishida, Marie Aguilar and Richard Bryant. It looks like maybe
somebody had to go home. So I also have a Rhonda Ulysse signed up. Maybe Rhonda could
come up, if she is here. All right, we'll go with what we have. So could I ask the three of you
now to raise your right hands, please, and do you swear or affirm to tell the truth today on this
matter to the Hawaii County Planning Commission?
TESTIFIERS: Yes.
4
GRAHAM: Thank you very much. I can start with the gentleman on the right,
and start with your name and address, please, and use the microphone, so that we can catch it on
our transcription.
HALSEY: Okay.
GRAHAM: Go right ahead.
HALSEY: Good afternoon. My name is Brian Halsey. My office address is
at 94-595 Kupuohi Street in Waipahu. I am the Hawaii Market Manager for Wal-Mart. I
oversee all the operations for the stores here in the state. I' d like to thank you for this
opportunity to testify against the Resolution 21-07, the Amendment to Chapter 25 of the Hawaii
County Code, relating to Retail Establishments.
We strongly oppose this legislation. It's anti-competitive and unfair.
I've been with the company for over 18 years. Since the mid-90s, I actually helped as an
assistant manager open the Hilo store. And I've come to truly appreciate the people and the
communities on the Big Island, and I want to see the island continue to thrive with smart growth
and planning for generations to come.
One might assume that Wal-Mart would be the only existing business on the Big Island affected
by this legislation. Unfortunately, that assumption would be wrong. Many of the local farmers
and businesses would also be harmed. Why? This bill would keep us from expanding our local
supplier base with additional farmers and local businesses.
Approximately 40 percent of our items for our Hawaii stores come from the State of Hawaii,
from over 487 Hawaii vendors and suppliers, supporting nearly 17,000 jobs. Many are based on
the Big Island. One example is Hawaiian Sunshine Nursery; they have supplied our Hawaii
stores with various giants since 1996. Even our Wal-Mart branded milk and bread is done in the
State of Hawaii by local vendors.
Wal-Mart is proud to be a part of the Big Island. As one of the island's largest employers, we
provide work for more than 750 associates in the two stores in Hilo and Kona. Average full-time
associates earn $12.19 an hour for the State of Hawaii, with great benefits and bonuses.
Wal-Mart stands ready and willing and able to sit down with County leaders to discuss
community problems and concerns to find fair solutions that do not restrict free competition and
unnecessary burden on island residents.
Our goal at Wal-Mart is to be able to serve our communities with the best service and the best
quality and selection at our everyday low price. After all, that's what the residents of Hawaii
deserve.
Thank you again for allowing me to testify.
GRAHAM: Thank you, Mr. Halsey. Do we have any questions for Mr. Halsey
from the Commissioners? Thank you. Yes, Commissioner Woodward?
WOODWARD: I just wondered if you had any current plans for a superstore.
HALSEY: We are in negotiations on the Hilo store.
WOODWARD: Okay. Thank you.
GRAHAM: Okay. Sir, you are next. If you would start with your name and
address.
NISHIDA: My name is Craig Nishida. I don't know if you need my specific
address; I'm actually from Oahu. Do you need -?
GRAHAM: Yes.
NISHIDA: Okay, it's 91-2048 Luahoana Street. It's in Ewa Beach. My
mother side of the family is from Kona; and when I was growing up, I spent many really happy
summers over here. When you get away from Honolulu and you come to the country, it was
wonderful I mean you felt so free. And that's what I love about the Big Island, you know, so
much open space, there is not as much traffic, so many people. And I'd like to see is stay that
way. Unfortunately, superstores would cause a lot more traffic in that particular area, a burden
on the utilities there. And I was horrified to hear about the Superstore district. That just
multiplies the effect that they'll have. People would be driving from far away just to get there,
and that's going to cause a lot more, you know, traffic in that area. You aze going to be wasting
fuel. Instead, there should be a lot more local businesses spread out all over. Just keep the
country country, Thank you very much.
GRAHAM: Thank you, Mr. Nishida. Any comments or questions from the
Commissioners? Thank you both for coming over all the way from Oahu. Ma'am?
AGUILAR: My name is Marie Aguilar. I'm also representing my partner,
Philip Mosher today. My P. O. Box is 1874, Kailua-Kona, Hawaii 96745. I am a business
owner in Kailua-Kona, in historic Kailua Village. I have been here for 14 years.
There is a deep concern from the members of our island community about the commercial
business development on Hawaii Island. Today, the County Council has recommended that you
review superstores aka Big Box stores on Hawaii Island. This is a great vision for County
Council Stacy Higa's action to halt the Big Box stores on this island. The concern For small
businesses is very realistic. This island's foundation for business has been solely in the hands of
families making their living and creating jobs for its community. We have families here with
deep dedication for over five generations who give back to this island and shaze their aloha.
They have worked hard and struggled in high and low economic times.
We are owners of a small business in Kailua-Kona, and do not wish to see the business owners
like myself have the hard economic turndown if Big Box superstores are allowed on this island.
It will hurt every small business owner. We have struggled to make Kailua-Kona a world class
destination. We have the world's best 100% Kona coffee, World Champion Ironman Triathlon,
Big Island Marlin Championship, National Historic sites, Historic National Park along Queen
6
Kaahumanu Highway, Historic ICailua Village and scenic beaches that people travel from around
the world to visit. Our reputation is on the line. We deserve to keep our priorities in place. We
must contribute to the excellence of planning of our comm~u~ity to a world class destination. It is
our responsibility as residents of the County of Hawaii, the Planning Director, the Planning
Commission, the County Councilors to stop Big Box stores. They do not belong in a visitor
destination area - island, I should say.
The traffic congestion azound the island is already in a major problem. The Big Box stores
would cause a gridlock situation in the larger population azeas. The number of visitors to our
island and the growing resident population create a daily heavy use of our highways. We are
experiencing a level now of under developed infrastructure, and it will take years to catch up
with our growth. We can not create more gridlock to our highways now or in the future.
The Planning Commission should make their recommendations to the County Council and the
Planning Director and decide to halt Big Box superstores on Hawaii Island. It is the right
decision. Thank you for allowing me to be here at this meeting and to make my comments
regazding this important decision. I am here because my partner can watch my store. But I can
tell you today, this is a day where there is a cruise ship, and most of the businesses would have
been here today, but they had to take care of their businesses. So I want you to know they would
have been here to represent themselves. And I want to also tell you that today the County
Council of Kauai County voted to ban superstores at 75,000 square feet by a unanimous vote.
Their voice should be heard. They made a great decision. And thank you very much.
GRAHAM: Thank you, Ms. Aguilaz. Any questions from the Commissioners?
Yes, Commissioner Domingo?
DOMINGO: Thank you, Mr. Chairman. Comments not directly involving
superstores, but the fact that there is a gridlock and traffic is congested, I think that is not
contributed by those Wal-Mart or Costco or other huge stores that we have in Kona or in Hilo.
Congestion is here because of the rapid growth and the influx of people from the mainland or
wherever they come from. And because of the huge numbers of in-migrants who come here, that
has caused the problem of congestion in traffic and other problems, social problems that we face.
So regardless of what happens and what the Council decides to do and whether or not superstores
come here, the traffic problem will persist unless we can do something about it. I just want to
make that clear and not blame those huge stores for the problems that we are facing now.
GRAHAM: Thank you. Thank you for your testimony today. I appreciate it.
All right, I have four more testifiers. If you all would come forward, please, Sally Marone,
Gordana Leonard, Alapaki Tampos and Billy Kimi, III. Jeff? Excuse me?
DARROW: Thank you, Mr. Chairman. As a reminder, if any public testifies
and happens to bring written testimony, if we could get that or a copy of that or the original for
our records. Thank you.
GRAHAM: And as a kind of an addendum to what Jeff just said, if you did
bring written testimony and we get it, you don't need to just repeat it verbatim. Maybe you can
just summarize it quickly because we'll be having it to read. All right, thank you. Could Che
7
four of you raise your right hands, please, and do you swear or affirm to tell the truth today on
this matter before the Hawaii County Planning Commission?
TESTIFIERS: Yes.
GRAHAM: Thank you all. I'll start on my right. Could you use the
microphone, give your name and address, and then give us your testimony right away?
MARONE: Yes. My name is Sally Marone, and I live at 77-6128A
Mamalahoa Highway, Holualoa, Hawaii. And I will keep my comments brief. I just wanted to
let you know that I am in support of the Council's bill to ban the superstores. I feel that we need
to keep our West Hawaii as self-sufficient as possible. And bringing more things in from China
and produce from thousands of miles away is not what I see for the development of our island.
GRAHAM: Thank you, Ms. Marone. Any comments or questions from the
Commissioners? Ma'am, you're next. Please start with your name and address.
LEONARD: Aloha. My name is Gordana Leonard, and I live at 75-374 Aloha
Kona Drive in Kailua-Kona, 96740. I'm a member or I'm one, of the Kailua residents who have
been working on the Kona Community Development Plans from almost the beginning, and I'm a
member of the environmental quality working group. But I do not speak on their behalf; I speak
as a private citizen and on behalf of my ohana.
In view of what I've heard the Planning Commissioners' exchange by way of remarks amongst
yourselves, I feel that there is nothing that I need to add other than to say that I strongly support
the proposed amendment put forth by the County Council, which opposes the giant stores; which
I, for the purpose of this particular meeting, was simply going to say are antithetical to the
Hawaiian way of life, antithetical to the even Americanized Hawaiian way of life, antithetical to
the welfare of our children and certainly of a warming planet. And with that, I will thank you
for, whatever it is that you do on behalf of, making wise choice on this particular issue. And I
will testify further when the Planning Director's bill comes up, and give details. Thank you.
GRAHAM: Thank you, Ms. Leonard.
TAMPOS: Aloha.
GRAHAM: Sir, go ahead. Name and address, and then your testimony.
TAMPOS: My name is Alapaki Tampos, and I live at 74-5037 Kealapua
Street. And I live right here up in Kona, right up the hill. And I'm here to testify that I oppose
of these big stores coming in, due to the fact I've been in business for 20 years, and just this past
year I have gone out of business. Maybe al] you folks know the radio station KAPA; you guys
probably heard, "Aloha. Welcome to Alapaki's" -that's me. But now you don't hear me
because I'm out of business. Due to all these superstores coming in, like we have right now
Wal-Mart, K-Mart, I mean that's the type of stores. And now they want to come up with a
superstore? What are they going contain of? Lumber? Like the brother over there said, he
didn't mention that. But how do we know what is a superstore? Just another food super market,
or a combination of all these other things? So all the local businesses, like HPM and all these
8
other small lumber companies, they can go out of business, too. Just like me. And I protest, and
I will hold banners to subject that there is no superstores here in Kona. .Snd like brother
Domingo said, which will it be, Hilo or Kona first, -- When we had our first Costco, we had the
majority of the island coming here to Kona -- which traffic. But will the County or the State
combine together to see what the problem is? Because our infrastructure here in Kona is no
longer, not even progressing. I moved back home here back in 1979, and that's how long I've
been in business in Kona. But now I had to close my business because like we say in Hawaii,
"Where have the mom & pop stores gone?" And I can vouch that there is only one store that
carries all made-in-Hawaii products, it's what, the lady sitting right here in this seat. And also I
was doing that, too. And we support all the local arts and crafts people. But with the superstores
come in, and I vouch for this, when Wal-Mart first came up, the manager of Wal-Mart and one
of the assistant managers came into my shop, Alapaki's, they tried to get me to get into the
groove with them to open up a Hawaiian gift shop in the Wal-Mart right up here. And I knew
that once I get in, they'll take over me, and you know, and so forth on. But needless to say, I'm
just here today to oppose the big, big superstores, and I fully support you folks on the panel.
Mahalo.
GRAHAM: Thank you, Mr. Tampos.
KIMI: Aloha. My name is Billy Kimi, and I'm at 75-5816 Lupa Place in
Kailua-Kona I'm representing Kona Inn Shopping Village right here in Kona. And I just want
to make a few comments because I've just found out about this. And I just want to remind
everybody that we're an island. We have a lot of island styles no matter where we are from.
And I believe the local businesses have suffered enough in the past from all these Big Box brand
companies that come over here to our islands. We are small; we don't have the land like other
places do. And it should stay simple, and let the regular business people move ahead and have
an opportunity to do business with their families for the future. If Kona doesn't maintain this
type of a local retail culture and heritage on the Big Island or the, State of Hawaii, there will be
no reason for any of our tourists to come back and visit us over here. This is what it's all about.
We aze on an island. I oppose not having superstores come into the Big Island of Hawaii or the
State. Aloha. Thank you for letting me speak today. Everybody have a nice afternoon.
GRAHAM: Thank you, Mr. Kimi. Any questions from any of our
Commissioners? Commissioner Domingo?
DOMINGO: One clarification, Mr. Kimi. Your last sentence was "I oppose not
having superstores come to the Big Island." Can you make it more clear forme?
KIMI: Superstores, I do not wish to have anywhere on the State of
Hawaii. Sorry.
GRAHAM: Thank you. All right, thank you all four of you. I appreciate your
testimony today.
TESTIFIERS: Thank you.
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GRAHAM: And we'll be carrying this in our minds when we next meet in
Hilo. So I think we took all our public testimony. I don't think we need to take any action on
this agenda item so -.
DOMINGO: Mr. Chair.
GRAHAM: Yes, Commissioner Domingo? Would you like to give testimony,
sir?
ESTEBON: Yes, please.
GRAHAM: Yes, come forward.
ESTEBON: Gentlemen, thank you for giving me the opportunity. I came in
late, so I wasn't here this morning. But -.
GRAHAM: Okay. Could you -? Do you swear or affirm to tell the truth before
the Commission on this matter today?
ESTEBON: I do.
GRAHAM: Thank you. And could you give your name and address?
ESTEBON: Okay. My name is Rolando Estebon. I live over here in Kailua-
Kona, 75-6164 Hoomama Street, Kailua-Kona. I'm here and I heard your testimony, and then I
really support what the County Council, as well the Planning Commission, have been doing.
And I've been all over, and I may not say all my past experiences, but I swear to God, I just want
to give some comments why I oppose these superstores. First of all, we will have to think, yeah,
corporation. Do you think that they think about, or they see about the picture of the island or
they see the picture of the community? No. They only see the figure, number, nothing else.
They will tell you, of course, that they will benefit the whole community. Yeah? But try to say,
I've got 75,000 items, and they said, oh, we'll get it from the local companies or the local
farmers. But try to take a look. How many percent in a big store they get in their store? Does it
even have 5 percent? Of course not. As the others have testified, most of them are from the
mainland, from China; or whatever. The question is, right, do you expect any tourists to come
down here to see the same old products that came from, and they can see, from the mainland and
all over? They want to see the one that we have here locally. Ninety-five percent or five
percent - it's a big difference.
Secondly, we will have to think, yeah, the question is how much is too much. It is just like we're
building; if you go let it go, you're going to build a mansion in a 10,000-square foot lot. Simple
as that. It will all come to waste.
Thirdly, we will have to think monopolizing. Okay? I'll be true, as I said, I do some research
and everything. There's been research. Yeah? These big companies, big corporations, their
intent is to pull their competitors. And after they kill them all, they can ask their price whatever
they have. And that's going to happen, the same thing over here. And of course we've got to
think how can with the population of the Big Island or the State? We already get K-Mart, we
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already get Wal-Mart, then you got double them up, you kill everybody. And they said, oh, they
give new jobs to the community. They'll give jobs to the community, they're going to need a
thousand jobs opening. But how many will be hired in this community? The rest we're going to
get it, they said they're going to get it. Of course, being a corporation if I cannot get them over
here, I'm going to import my own people. Product wise do you think they're going to get from
you if I can get it cheaper, if I can get it from you but get it more expensive? Of course not.
That's why we have to think all those factors. It's very simple. We don't need those already.
We already being suffering. We don't want to suffer more. I think it's about time for us to
realize the real situation, look at the real picture. And go on and we'll support you, whatever it
takes to support you to ban this one. We need to help people in here, not the big corporation.
They already get their own ways. We need to help these people, small business, more especially,
and the people in this community. So I thank you.
GRAHAM: Thank you for your testimony. Okay. I think we have what we
need on this item already. And in that regard, I think we should move on.
DARROW:
Continue?
GRAHAM: - So we'll carry this one forward until the Hilo meeting. Do we
need to take any vote on that, I think, Jeff?
DARROW: Yeah, I think maybe we should just do a vote for continuance; we
can do anall-in-favor.
GRAHAM: Okay. Is there somebody to move that we have continuance to the
Hilo meeting?
SIRACUSA: Yeah. I'll move that we defer this,matter to the next Hilo meeting.
GRAHAM: Second?
WATANABE: Second.
GRAHAM: All right. Moved by Commissioner Siracusa, seconded by
Commissioner Watanabe. All in favor of continuing this to our Hilo meeting, say "aye" please.
COMMISSIONERS:
GRAHAM:
DARROW:
Aye.
Any opposed? Okay.
Thank you.
GRAHAM: We will continue to the Hilo meeting with this agenda item. I have
folks in the audience raising their hands, but if it's a point of clarification or something, maybe
you can write. We're going to end the meeting in a couple of minutes. Maybe you could ask
one of our staff members here.
PUBLIC: I'm just wondering when the meeting in Hilo is.
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GRAHAM: Jeff, could you tell him the meeting in Hilo?
DARROW: The next scheduled Hilo meeting is June 5`~'.
GRAHAM: Okay. So that finishes our regular agenda items today.
The discussion ended at 3:23 p.m.
Respectfully submitted,
Noriko Sauer
West Hawaii Secretary
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