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The Honorable J Yoshimoto, Chairman and Members of the County Council Page 2 growing rapidly. In the 2000 census, the Hawaiian Ocean View Census Designated Place had a population of 2178. It had more than doubled since 1990. The population within HOVE continues to grow. In 2005 -2006, building permits for 435 new homes were issued in this general area. This is more than the number of building permits for new homes issued in the districts of North Hilo, Hamakua, North Kohala, and South Kona combined in that time period. The County Planning Department favors the development of a light industrial - commercial area nearby to serve population of this area. This will give people an opportunity to have services located closer to their homes, and provide a location for service- oriented businesses. The closest town with industrial /commercial areas is Na`alehu, which is about 14 miles away by road. A number of commercial and industrial -type enterprises have been approved on Highway 11, in the vicinity of HOVE on both sides of the highway. To date, all of these have been permitted through the issuance of Special Permits by the Planning Commission. All of the land in the area is within the State Land Use Agricultural District. The nearest land in the State Land Use Urban District is located in Wai`ohinu, which is about 12 miles away by road. The Special Permit route is available to the applicant, and only requires Planning Commission action, not approved by the County Council. It is not the proper use of the State Land Use law to utilize Special Permits to gradually establish a town center, permit by permit. The Special Permit is a procedure meant to accommodate unique and unusual situations that may arise in the agricultural district. It creates some flexibility in the Agricultural district, which is otherwise subject to rather limited, agricultural- related uses under the state law. But urban areas, like a commercial center, should be in the State Land Use Urban District and should be properly zoned by the county. The 2005 General Plan update expanded the urban center in this area, centered around the existing Special Permit areas. The applicant's request is consistent with the General Plan LUPAG map designation for this area, which is identified as Urban Expansion Area and the applicant is also requesting a concurrent Change of Zone from A -la to MCX -3a to develop a mini storage facility. The approval of the reclassification of the subject property from the State Land Use Agricultural to the Urban District will not be violative of Section 205 -2, Chapter 205, Hawaii Revised Statutes, nor will it be inconsistent with the Land Use