.PD BACKGROUND REPORT (PL-SPP-2024-000061)

Home

I. INTRODUCTION Axel and Michelle Kratel ("applicants") are requesting a Special Permit to operate a 4- bedroom bed and breakfast on the subject agriculturally zoned property. The property is located at 2893 Kaiwiki Road, approximately 4.5 miles west of the intersection of Kaiwiki Road and Wainaku Street in Hilo, HI (Figure 1). It consists of 13.618 acres of land and contains an active biointensive regenerative farm with a focus on forestry and native plant conservation and soil regeneration and specializing in Christmas tree propagation, ornamental conifers, coffee and tea, carbon farming and timber production. The applicants own and manage the farm and live in an existing 4-bedroom farm dwelling on the property constructed in 1995 and permitted under Building Permit Nos. 941655 and B2006-2531H. The property also contains an "As-Built" guest house consisting of 1 bedroom, 1 bathroom, and a living/dining space and an additional farm dwelling containing three (3)detached bedrooms. The guesthouse is currently used as a hosted rental and the applicants recently submitted an "As-Built" building permit application to permit it. That permit application, PW.B2023-003 83 1,is currently processing with the Building Division. An Additional Farm Dwelling Agreement(AFDA)has been issued for the additional farm dwelling and"As-Built" plans for the additional farm dwelling are currently being finalized by an architect. Once the AFDA has been recorded with the Bureau of Conveyances, an "As- Built' building permit application will be submitted for the additional farm dwelling. The applicants are requesting a Special Permit to operate the guesthouse and 3-bedroom farm dwelling as a 4-bedroom bed and breakfast. The maximum occupancy of the bed and breakfast would be 10 guests and the applicants, who reside in the other farm dwelling on the property,will serve as the on-site caretakers. Additionally, in conjunction with this Special Permit request,the applicants request to swap the designations of the two dwellings so that the structure currently considered the primary farm dwelling, in which the applicants live, becomes the additional farm dwelling and the structures currently considered to be the additional farm dwelling and guest house,which will be used as the bed and breakfast, becomes the primary farm dwelling with guest house. Historically,the applicants have offered some of the detached bedrooms as housing for farm workers on the property. Approval of this bed and breakfast permit request will allow them the ability to generate supplemental income by offering the rooms to short-term guests during times when less farm labor is needed. In addition to generating supplemental income,the applicants hope that the overnight accommodations on their farm will raise awareness of and interest in biointensive regenerative farming practices and native plant conservation and forestry, as well as the importance of supporting local farmers in Hawaii County. An approximately 500 square foot open air pavilion is proposed on the lawn near the bed and breakfast to provide the landowners and their guests a covered area from which to relax and enjoy views of the farm. 4