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J Yoshimoto, Council Chair and Members of the County Council Page 2 in the area. 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 Planning Director favors the development of a commercial area in close proximity to these established subdivisions to serve the rapidly increasing population. This will give residents an opportunity to shop closer to their homes, and provide a location for service-oriented businesses, like offices for doctors, tax preparers, hairdressers, and the whole host of commercial needs generated by a large residential population. The closest town with commercial areas is Na`alehu. A number of commercial enterprises have been approved on both sides of fronting these subdivisions Highway 11, most of which were approved by Special Permits. All of the land in the area is in the State Land Use Agricultural District except for one property to the east that was approved for a State Land Use Boundary Amendment from Agricultural to Urban. The closest area in the Urban District is in Wai`ohinu. Previously, the General Plan was a constraint as it did not show an urban center in HOVE and Ranchos Subdivisions in the LUPAG map. As a result, the Special Permit became the vehicle to establish the commercial core fronting HOVE and Ranchos Subdivisions. It is generally not proper to utilize Special Permits to gradually establish a town center, permit by permit. The Special Permit is a procedure meant to handle unusual situations that arise in the Agricultural District. It creates some flexibility in the Agricultural District by allowing consideration of urban-type uses on Agricultural lands. But urban areas, like a commercial center, should be in the State Land Use Urban District and be properly zoned by the County. The 2005 General Plan established an urban center in this area, centered around the existing Special Permit areas, and put it on the LUPAG map. This boundary amendment is consistent with the General Plan amendments. The approval of the reclassification from the State Land Use Agricultural to the Urban District for approximately 3 acres will not be violative of Section 205-2, Chapter 205, Hawaii Revised Statutes, nor will it be inconsistent with the Land Use Commission Rules, the County General Plan and the Hawaii State Plan. The applicant is also requesting a concurrent Change of Zone from A-la to CV-40 to develop a commercial project with 54,300 square feet of professional and retail space. Under the Land Use Commission Rules, one of the standards for considering an area for urban