PD BACKGROUND REPORT (PL-SPP-2023-000052)

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I. INTRODUCTION Matthew, Jane, and Stephen Dietrich("applicants") are requesting a Special Permit to convert a permitted nonconforming Short-Term Vacation Rental (STVR)to a Bed and Breakfast and legitimize an existing campground operation on a portion of the property located at 28-1435 Old Mamalahoa Highway in South Hilo, Hawaii. The subject site, identified by TMK (3) 2-8-012: 022, is 2.0 acres and is zoned Agricultural-20 acres (A-20a). Access to the site is off Old Mamalahoa Highway, approximately 1 mile north of its intersection with Highway 19 (Figure 1). The applicants have been operating a successful business renting out campsites since 2012. The goal of the business has been to provide minimal accommodations that blend into the surrounding area and embrace the cultural experiences offered by the Hamakua Coast Community. For years, guests of the property have enjoyed the alternative visitor experience afforded by the opportunity to stay in the rural Hamakua area and have supported local businesses and farms through their patronage. The applicants were unaware that their business was in violation of the County Zoning Code until they received a Warning Letter from the Planning Department dated September 29, 2022, pertaining to the use of the six (6) unpermitted campsites. Thus, the applicants are now seeking a Special Permit to remedy that violation and legitimize the accommodations. Additionally, the property contains a single-family dwelling which operates as a Short-Term Vacation Rental under Permit Number STVR-19-363828 and Non-Conforming Use Certification Number NUC-19-1557. The applicants wish to instead operate the dwelling as a Bed and Breakfast under this Special Permit request. Upon approval of this request, the applicants will forfeit their STVR NUC in exchange for the Bed and Breakfast permit. The River Rainforest Tiny Cabin noted in the Warning Letter is on the applicants' family's property located in Pepe`ekeo. This cabin was listed on the applicants' website to help generate more bookings for his family's hosted rental. This cabin does not exist on the subject property and will therefore not be a part of the Special Permit request in any way. The subject property currently contains one (1) single-family residence operating as an STVR, six (6) campsites, a paved driveway, eleven (11)parking spaces, a cesspool, and a rainwater catchment tank. If approved, the Special Permit would allow the following: 1. The single-family residence to operate as a Bed and Breakfast; 2. The permitting of six (6) overnight campsites; 3. The development of one (1) bathhouse to support the camping accommodations; and 4. The conversion of the existing cesspool to an Individual Wastewater System (IWS). The Special Permit area will encompass approximately 1-acre of the subject parcel. Previous owners of the property finished the basement level of the house without permits. The applicant proposes to only use the basement level for storage purposes. The applicants' intention is to provide minimal overnight accommodations which will allow visitors an opportunity to enjoy and learn about the historic Hamakua area and also bolster support for other local businesses and farms in the neighborhood. 4