PL-CCI-2022-000002 S. DONOHO, KOHALA COAST RESORT ASSN TESTIMONY 10.6.2022

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Kohala Coast RESORT ASSOCIATION October 7, 2022 Michael Vitousek, Chair Hawaii County Leeward Planning Commission Hawaii County Aupuni Center 101 Pauahi Street, Suite 3 Hilo, HI 96720 RE: Opposition to changes suggested by County Council Bill 194 — agenda item 4 Dear Chair Vitousek and Members of the Leeward Planning Commission, The Kohala Coast Resort Association (KCRA) is opposed to the changes outlined in County Council Bill 194, an Ordinance Amending Chapter 25, Article 2, Division 4 of Hawaii County Code 1983 (2016 Edition, as amended), relating to conditions on change of zone actions. The proposed bill would no longer allow the current practice, allowing the Planning Director to extend the time allowed to satisfy conditions within a change of zone ordinance, unless specifically allowed by the Hawaii County Council. We believe this change would add unnecessary time and expense to an already lengthy approval process. In April 2022, the University of Hawaii's Economic Research Organization (UHERO) published a brief stating that Hawaii had some of the most restrictive regulations in the nation, making it difficult to meet the state's demand for housing, especially affordable workforce housing. Using the Wharton Residential Land Use Regulatory Index (Wharton Index), UHERO showed that Hawaii County leads the nation with the most onerous regulatory environment. The full report can be viewed here: https://uhero.hawaii.edu/wp- content/uploads/2022/04/MeasuringTheBurdenOfHousingRegulationlnHawaii.pdf. This proposal, if approved, would add another layer to that regulatory process. This proposal could also open the door to challenges if the Hawaii County Council members serving at the time when an extension was requested by the Planning Director were in disagreement with the decision of the previous Hawaii County Council members who initially granted the change in zone. Projects could flounder, as there would be no guarantee that subsequent councils wouldn't try to amend the conditions specified in the change in zoning agreement between the county and developer. The KCRA has been a staunch supporter of affordable workforce housing projects throughout Hawaii Island. We serve on Vibrant Hawaii's Housing Coalition and have supported the Planning Department's efforts to update zoning and building codes to find creative solutions to address our affordable housing needs. We believe the changes requested in Bill 194 would further delay the rollout of affordable housing projects across our island. KCRA members employ 5,000 people, supporting 20,000 Hawaii Island residents at their hotels, timeshares, restaurants, retail outlets, golf courses and spas. Additionally, in 2022, KCRA members will pay an estimated $60 million in state and county TAT, and $40 million in state and county GET. Further, KCRA members, and the residents within our resorts, pay $134 million in property taxes to Hawaii County, one third of total collections. And finally, between 2016 and the present, KCRA members have invested more than $1.65 billion in infrastructure and property upgrades, supporting Hawaii Island's construction industry. Please allow the Planning Director to continue to use his/her discretion when determining if a timeline should be extended, without additional Hawaii County Council approvals. Sincerely, P� Stephanie Donoho Administrative Director, Kohala Coast Resort Association PO Box 6991, Kamuela, HI 96743 * (808) 747-5762 * kohalacoastresortassn@gmail.com * www.kohalacoastresorts.com