HomeMy WebLinkAboutCOM 0601.002 2020-2022 SidneyFuke, Planning Consultant
100 Pauahi Street,Suite 212®Hilo,Hawaii 96720 ®Planning®Variance®Zoning
Telephone:(808)969-1522 Cell:(808)989-0640 ®Subdivision®Land Use Permits
E-mail:sidtuke@hawaiiantel.net e Environmental Reports
February 16, 2022
Ms. Ashley Kierkiewicz, Chair
Council Planning Committee ,
COUNTY OF HAAI'I
25 Aupuni Street
Hilo, Hawai'i 96720
Honorable Chair Kierkiewicz: g
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Subject: Bill 115—T : 6-9-008: par 013,022,025,Por 029 and 033
Proposed Kuu Hou Project District Zoning
At the Council Planning Committee meeting of February 8, 2022, the Committee voted to
continue its deliberation on this matter to enable the applicant to further address the 1)
Workforce Housing; 2) Density and Open Space; 3)Need and Market Demand for Timeshare;
and 4) Project's impact on the Waimea Aquifer. In that regard, after due consideration of their
request, we are pleased to transmit the following which we believe address these matters and
more.
Members noted that defibrillators should be considered or included in public or
commercial areas. That is a good point and as such,the applicant is proposing the attached
condition.
On the matter of workforce housing, members wanted clarity and cormnitment that the
project would be a rental one and one targeted towards the lower end of the Area Median Income
(AMI). In that regard,please find attached a draft of a proposed amendment to Condition Z
which specifically makes that commitment, as well as includes a provision for two (2) electric
vehicle charging stations.
It was also brought up whether the density of 3,000 visitor units and 3,365 residential
units covered under SMA Permit No. 25 would not be exceeded and that the remaining golf
holes would eventually be converted for timeshare or other non-open space uses. This comment
is understandable. The short answer is yes, Mumu Hou would be within that cap. Further,the
applicant is prepared to commit that the remaining 27 golf holes will remain in golf course or
open space use.
On the matter of the need and demand for timeshares, attached please find a report, dated
February 14, 2022, prepared by Dr. Ann Bouslog which specifically and comprehensively
Comm. No.
Ref. To: PIPC
Ref. Date EEB 2 2 2'02'2
Honorable Ashley Kierkiewicz, Planning Committee Chair
February 16, 2022
Page 2
addresses this question. It succinctly discusses the importance of timeshares to the community
and towards management of the visitor industry for all, as well as its importance to Mumu Hou.
Dr. Bouslog then follows that up with a discussion of its market demand.
Relative to the project's water resource impact,Mr. Tom Nance, a respected
hydrologist/water resource engineer, offered several observations as reflected in the attached
letter, dated February 16.
• the projected potable water demand from the Waimea Aquifer for the project is .54
million gallons per day (MGD), which is within the Aquifer System's sustainable
yield; and
• Kumu Hou could have a"net zero"impact on the Resort's draws from the Waimea
Aquifer System upon full buildout if certain actions are taken. These would include
the gradual conversion of potable to brackish irrigation water for landscaping of the
common areas and roadways, and use of more drought-tolerant and native species.
Please note that that is the applicant's intention.
Kumu Hou was designed with sustainability as its guiding principle. This is documented
in Appendix 13 of the application, a copy of which—entitled Proposed Sustainability Actions
and Guidelines for Kumu Hou at Waikoloa-is attached. The commitment to retain the
remaining 27 golf holes in golf or open space, as well as the goal of reducing stress on the water
resource in this area are all consistent with this guiding sustainability principle.
With the virtual participation of Mr.Nance and others,we look forward to discussing and
responding to these and any other questions your Committee may have at the February 22
meeting. However, should you have any questions during the interim,please feel free to contact
me. Thank you very much!
Sincerely,
�� VW
SIDNEY M. FUKE
Planning Consultant
Enclosures
Copy—Honorable Maile David, Council Chair and all Councilmembers wl enclosures via email
Mr. John Plunkett,Waikoloa Land Company wl enclosures via email
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PROPOSEDCONDITIONS
Bill No. 115
AUTOMATED EXTERNAL DEFIBRILLATOR (AED)
NEW Condition H: 6. Structures with commercial office or retail uses
shall have an automated external defibrillator (AED) at an easily
accessible public area or appropriate signage noting the location of j
AED.
WORKFORCE HOUSING
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Condition Z: As represented by the Applicant, the Applicant shall cause
the development of a minimum of 140 units workforce housing on a
property identified by TMK: 6-9-008:032 in accordance with mutually j
agreeable terms between the Applicant and the County Office of
Housing and Community Development. The workforce housing project
shall be rented pursuant to affordable housing guidelines established
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by the State of Hawaii, Hawaii Housing and Finance Development
Corporation, for a minimum of 65 years from initial occupancy of the
first unit and shall include a minimum of 2 electric vehicle charging {
stations. Sixty (60) percent of the total units shall target households
earning 30% to 60% of the prevailing County Area Median Income
(AMI) with the balance serving households earning up to 1201 of
AMI. [The] Final terms shall be established in a workforce housing
agreement and shall include the Applicant's infrastructure construction
and land conveyance obligations and operational considerations such
as tenant income and other eligibility criteria. An occupancy permit for
the first phase of the workforce housing project shall be obtained-no
later than issuance of an occupancy permit for any time share unit
within the area covered this ordinance.
MEMORANDUM
DATE: February 14, 2022
PBR HAWAII
&ASSOCIATES, INC. TO: Planning Committee, County Council, County of Hawaii
c/o Ms. Ashley Kierkiewicz, Chairperson
R.5 FAN DUNCAN,ASLA
Pr tua%:kJ E:lt var sxia;r
FROM: Ann M. Bouslog, Ph.D. /PBR HAWAII
RL'SSEL.L Y.J.GHL�NG,FASLA,LEED'APB]),-C
VINCENT SHIGEKUNI REFERENCE: COZ Bills 112 and 115, Kumu Hou/Waikoloa Land Co.
GRANT MURAKANII AIC'RLEED'APBI)+C SUBJECT: NEED AND DEMAND FOR TIMESHARE UNITS
KIMI=MIKAR-II T UEN,LEER"AP BD X
Aloha Chairperson Kierkiewicz and members of the Planning Committee,
TOM SCHNELL,AICP
1>resrr�+;z1
At the Committee hearing on February 8, 2022 regarding the above-referenced matter,
cATIEGULI_Isc>v,AICP Councilmember Holeka Inaba requested further information on the need for timeshare
units on Hawaii Island, and Councilmember Ashley Kierkiewicz requested
T}IO?,IAS S.WITTEN,FASLA
C., , „�,t,,,,,,s information on a recent visitor survey regarding their movements on the Island.
W FF,ANK BRANDT,FASLA
loanj,xt,=�,z As the lead planner for Kumu Hou, and a long-time, Hawaii-based real estate market
PAYMOND T.HIGA,ASIA
analyst, I am pleased to offer this response on behalf of PBR HAWAII's client
��3nx,rflP�'bz J d Waikoloa Land Co. (WLC). The sections below address the need for timeshare units,
&I ARC:SI.IIM ATSU,ASLA the anticipated demand for the Kumu Hou timeshare units, and a summary of results of
the recent visitor survey.
DACHENG DONG_.LEED"AP
a �r tr? _.itxeipti
NEED FOR TIMESHARE
ANS'MIKIKO BC)USLOG,PhD
The need for timeshare units is addressed from three vantage points. These consider
RANfSAl R I+I TAUM
Odt.,Rt,S=>r�?,,,knht,I:a sur important roles additional timeshare units can play for the Island in general, as well as
their importance to fulfillment of key goals of Kumu Hou. In short, timeshare units
N1ICAH 1NICNIILLEN,ASLA,I.EF.D`AP offer,
NATHAIJE RAZO
Sen=r 1,.,.<,e,a,-,U • A tourism management resource and alternative to unplanned visitor sprawl;
GRACE ZHENG,ASLA,LEER!GA,SITES'All • Critical support for the golf complex at Waikoloa Beach Resort; and
•
EZ SC1Yt?KI LA Critical support for the Waikoloa Foundation, with its environmental and cultural
As w wt- service goals, and for the planned affordable housing at the Resort.
GREG NAKAI
``"°`i"`e A tourism management resource
NICOLE SXVANSON,ASLA
jt.x3f C%et32:
Timeshare can play an important part in better management of the impacts of the visitor
industry for local residents. Timeshare units are vacation interests that are sold, as well
1001,Bishop SR x Stk,(()
Hunchulu,I{a+,ni QI8I3..3494 as units that may be used on a daily basis during the extensive marketing period of any
timeshare project. With their relatively large unit sizes, typically including one or more
-a5 „II�7 _a I I€rz
bedrooms and a kitchen, timeshare units appeal to couples, families and others who
enjoy having the extra space and comforts of a home while they travel. Such
accommodations are preferred by large and growing travel market segments, a trend that
is expected to endure as Millennials and Gen X age into dominant positions in travel
markets here in Hawaii, as well as globally.
PLANNING - LANDSCAPE ARCHITECTURE • ENVIRONMENTAL STUDIES • E'vTITLENIEN'T'S . PERMITTING . GRAPHIC DESIGN
3
Planning Committee, County Council, County of Hawaii,
clo Ms. Ashley Kierkiewicz, Chairperson
SUBJECT: DEED AND DEMAND FOR TIMESHARE UNITS
February 14, 2022
Page 2 of 8
This sort of accommodation is very difficult and expensive to find in a hotel setting, and without
viable alternatives such as timeshares offer, demand for this product is frequently satisfied
instead by visitor rental units (VRUs), including whole homes or rooms in homes located in
primary residential communities.
Timeshare units, offered within master planned resort areas with privately maintained
infrastructure, offer a critical pressure reliever to these powerful market forces.
So why are timeshare units especially needed at this time?
Total visitor accommodations on Hawaii Island have been essentially stagnant for the past 15 or
more years, yet many residents feel more and more impacted by visitors lately. This sentiment is
understandable and can be related to major shifts in the mix of accommodations by type. Between
2004 and 2020,the number of hotel rooms on the Island declined by an average of 0.4%per annum,
while timeshare units increased 2.1% per annum ... and VRUs increased 10.5% per annum,
according to data from the State Department of Business, Economic Development, and Tourism
(DBEDT).
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ISBN 11111111M.
Source:DBEDT,Visitor Plant Inventory,annual
Based on these official state statistics, VRUs proliferated five times more rapidly than timeshare
units, even though some of the increases among timeshare units was due only to the conversion of
hotel rooms to timeshare units (often with two or three hotel units becoming one timeshare unit).
Thus, the modest increases seen in the Island's timeshare inventory has by and large not
represented more visitor units, but rather fewer units overall.
Focusing on just timeshare and VRU units,the comparison of inventory trends is even more stark,
with VRUs adding over 1,700 units over the period, a five-fold increase in that dispersed product
type.
Planning Committee, County Council, County of Hawaii,
c/o Ms. Ashley Kierkiewicz, Chairperson
SUBJECT: NEED AND DEMAND FOR TIMESHARE UNITS
February 14, 2022
Page 3 of 8
2020,2192
04, 1338
2020,1877
s �
2004.,445
#i 6# i ! #,' M a M # • i,
Source:DBEDT,Visitor Plant Inventory,annual
Moreover, DBEDT's statistics may reflect only a share of the actual number of units being offered
as short-term vacation rentals. According to data firm Al1TheRooms, which surveys commercial
listings such as Airbnb and VRBO a little differently than in the DBEDT database, on September
15, 2021, 8,792 units and 16,297 rooms were advertised for short-term use on the Island. These
unit listings alone are four times those recognized in the 2020 DBEDT data, and A11TheRooms
shows such listings throughout the Island, from Hawi to Na`alehu, and from Kailua-Kona to
Kea`au.
Without the kind of pressure relief that additional timeshare units can offer, the unbridled and
unplanned proliferation of VRUs can be expected to continue unabated, despite regulatory efforts.
This tourism sprawl may not only degrade the quality of life in some primary residential
communities, but it puts a heavy burden on the civil and community infrastructure of these
communities that is in some cases not compensated by a fair share of state and county taxes.
In addition, every residential unit that is converted in whole or in part to a visitor unit represents a
loss to the primary residential inventory. While many VRUs are appropriately located and
permitted, and pay their fair share of taxes, many others represent a sacrifice of existing resident
living spaces, even as we struggle as a community to build adequate housing solutions for
residents.
In contrast, Kumu Hou's timeshare units, developed on resort-designated lands supported by
privately funded infrastructure, would not cause a loss of existing primary residences, nor would
they burden State and County coffers. Rather, they would offer economic benefits for residents,
while generating significant fiscal benefits to the County and State in terms of additional real
property taxes, transient accommodation taxes, general excise taxes, and other taxes and fees.
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Planning Committee, County Council, County of Hawaii,
c/o IVIS. Ashley Kierkiewicz, Chairperson
SUBJECT: NEED AND DEMAND FOR TIMESHARE UNITS
February 14, 2022
Page 4 of 8
These additional public revenues would be derived from non-resident sources and would provide
a significant boost to fiscal resources to support public priorities.
There is a need for Kumu Hou's timeshare units to support better management of the Island's
visitor industry,to protect residential neighborhoods,to add needed resources to the local tax base
to help with infrastructure and other economic recovery efforts, and to curtail further loss of
precious primary residences throughout the Island.
Waikoloa Beach Resort golf
Kumu Hou's timeshares are critical to the sustainability of the 27-hole golf complex at Waikoloa
Beach Resort. While golf remains a popular recreational activity, ranking seventh among sports
and forms of exercise, according to the U.S. Bureau of Labor Statistics, Kumu Hou is in part an
adaptation to long-standing U.S. and international trends to declining levels of golf play. But WLC
also recognizes that many local residents enjoy playing at the Resort's courses t, and that for many
others, the Resort's fairways, nestled within the natural South Kohala lava, are part of today's
iconic landscape. Kumu Hou makes it possible for WLC to honor its pledge to maintain the 27-
hole complex that now operates at the Resort for the foreseeable future.
Kumu Hou's timeshare guests will be critical to making this financially feasible. On an average
day in 2019,3.7%of visitors staying at the Resort's timeshare units golfed at its courses,compared
to only 0.9%of those staying at the Resort's hotels, and 0.8% of those staying in its condominium
units.
The Kumu Hou timeshare units are needed to support the Resort's 27-hole golf complex,
maintaining this significant recreational resource and the open space and beauty that many
residents enjoy, for the foreseeable future.
The Waikoloa Foundation and affordable housing
As presented in testimony on February 8th, sales of timeshare units at Kumu Hou are tied directly
to the cultural and environmental goals of the Waikoloa Foundation. The approximately $50
million legacy with which WLC intends to endow the Foundation will be funded by a share of the
sales proceeds of each and every timeshare unit sold.
In addition, Kumu Hou's timeshare units are significant to WLC's ability to support the not less
than 140 affordable workforce housing units it has offered within the Resort. The 25-acre site
proposed for affordable housing is already zoned and entitled for multifamily development and
thus could alternatively host more units to serve visitors and off-Island markets. However,
anticipated revenues from Kumu Hou will allow WLC to redirect this site to an affordable housing
mission, and to also contribute the costs of the planning, permitting, and off-site infrastructure
necessary to implement that affordable housing.
1 In 2019, 15%of average daily rounds within the Resort were classified as kama`aina rounds.
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Planning Committee, County Council, County of Hawaii,
c/o Ms. Ashley Kierkiewicz, Chairperson
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SUBJECT: NEED AND DEMAND FOR TIMESHARE UNITS
February 14, 2022
Page 5 of 8
The Mumu Hou timeshare units are needed to support the broad-based cultural and environmental
goals of the Waikoloa Foundation, and to support the not less than 140 affordable workforce
housing units that WLC would like to see implemented within the Resort.
DEMANDFOR TIMESHARE ITS
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A corollary question to the need for timeshare units is the demand for timeshare units. I'm
uncertain if this was the intent of the questions asked during the last hearing, but do respect that
the viability of any real estate product is an appropriate concern for Planning Committee members
as they consider rezoning.
:
Market demand is an issue that WLC considered carefully as it developed its plans for this area.
The focus on timeshare units is validated in other resort areas of the state, where hotel inventories
have stagnated or even declined in number, while investment interest has shifted to timeshare and
initiatives to convert hotel units to timeshare units are common. However, among Kohala Coast
resorts, Waikoloa Beach Resort is currently the only one whose governing structures permit
timeshare units.
7
State and Island market trends
7
The state of Hawaii is a major timeshare market, with approximately 6% of the U.S. inventory.
Hawaii timeshare properties typically enjoy higher average occupancies than other U.S. regions,
second only to California. Hawaii is a sought-after destination because of the wide ability of
timeshare owners to exchange their interests for stays at destinations around the world. Starting in
the 1990s, major brands began to enter the industry, including Hilton, Marriott, and Disney. This
had the effect of elevating the industry's quality in terms of performance standards, marketing
techniques and other metrics.
On Hawaii Island, in the years leading up to the pandemic, timeshare properties outperformed
hotel units by a wide margin:
_81 _80
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2013 2014 2015 2016 2017 2018 2019
Ea Timeshare Occupancy ®Hotel Occupancy
Source: State of Hawaii,Hawaii Tourism Authority,annual
Planning Committee, County Council, County of Hawaii,
c/o Ms. Ashley Kierkiewicz, Chairperson
SUBJECT: NEED AND DEMAND FOR TIMESHARE UNITS
February 14, 2022 3
Page 6 of 8
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Following the severe tourism disruptions of 2020 and 2021, timeshare properties were also among
the first accommodation types to recover. For instance, in the third quarter of 2021, timeshare
properties statewide averaged 86.1%occupancy,compared to 70.5%for hotels. On Hawaii Island,
timeshare resorts realized 77.8% occupancy in the same period quarter, compared to 71.7% for
hotels. Also,on Hawaii Island,timeshare visitors represented 11.7%of visitors in the third quarter
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of 2021, well above their market share of 9.8% in the third quarter of 2019. Occupancies at
timeshare properties also tend to be less seasonal than at hotels, according to Hawaii Tourism
Authority statistics.2
3
As noted, Waikoloa Beach Resort is currently the only master planned resort on the Kohala Coast
that allows timeshare. While other resorts could amend their governing documents to permit
timeshare in the future, doing so would be a difficult and time-consuming process, typically
requiring a supermajority of association members. Therefore, at the present time, about half of the I
West Hawaii timeshare supply is located in the Kailua-Kona to Keauhou areas, and all of those
are stand-alone properties without the amenities of a master-planned resort that tend to keep
visitors on-site. I
Waikoloa Beach Resort timeshare
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Waikoloa Beach Resort timeshare properties are affiliated with one of two operators,Hilton Grand
Vacations (HGV) and Marriott Vacations Worldwide. HGV has approximately 25 years'
experience in marketing timeshare within the Resort, including at the Hilton Kings' Land property,
situated between Areas A and B of Kumu Hou. These brands have brought high visibility to
Hawaii Island generally and Waikoloa Beach Resort in particular. Units in the mauka area of the
Resort where Kumu Hou is planned command lower price points than possible at HGV and
Marriott's oceanfront properties in the Resort, and this will have the effect of broadening the
potential market reach for Kumu Hou.
Together with the state's extremely strong timeshare outlook generally, the demonstrated demand
for timeshare units within the Resort over two and a half decades, the lack of other Kohala Coast
competition, and the golf frontage for all timeshare sites at Kumu Hou, Kumu Hou's proposed
timeshare units are expected to be highly marketable.
SURVEY OF VISITOR MOVEMENT AND ACTIVITIES
With continuing concerns among Hawai`i's residents and other stakeholders about the impact of
visitors on infrastructure and natural and cultural resources, WLC wished to understand the
footprint left by its timeshare guests, especially the time spent within the Resort as opposed to
elsewhere on the Island. To this end, WLC asked Ward Research to conduct an online survey that
achieved a sample of 976 persons, including persons who had visited the Island within the prior
four years (894 persons), and golfers who were surveyed at the Waikoloa Golf Pro Shop (82
persons).'
2 State of Hawaii, Hawaii Tourism Authority, "Hawai`i Timeshare Quarterly:July—September 2021"
s Ward Research Incorporated,"An Assessment of the Footprint of Waikoloa Beach Resort Visitors on Hawaii Island,"
October 2021.
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Planning Committee, County Council, County of Hawaii, 3
c/o Ms. Ashley Kierkiewicz, Chairperson j
SUBJECT: NEED ANIS DEMAND FOR TIMESHARE UNITS
February 14, 2022
Page 7 of 8
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The fall 2021 study found that timeshare guests at the Resort spent more time within the Waikoloa
Resort area than other Island visitors spent near the areas they were staying at. Waikoloa timeshare
guests and Waikoloa Beach Resort guests as a whole reported spending an average of 59% and
61% of their time, respectively, within the Resort. In contrast, survey respondents who were
staying elsewhere on the Island reported spending only 43% of their time at the resort area they
were staying at, or within walking distance for stand-alone properties.
The survey also found that golf was the most popular activity among the Resort guests surveyed,
with 58%golfing during their visit.Also,activities such as visiting a cultural center or participating
in hula or lei-making were enjoyed by 23%, with another 14%reporting visiting a museum.
CONCLUSION
Members of the County Council's Planning Committee appropriately asked for more information
on the need and demand for timeshare units as proposed at Kumu Hou. This memo has shown that
timeshare units fill important needs for:
• Better management of tourism, offering an alternative for market forces that, absent the
development of competitive accommodations, have fueled a rapid and unplanned sprawl of
visitor units into primary residential areas. However, timeshare units can offer the larger units
with kitchens and bedrooms that is demanded by much of today's travel market. When
developed within a master-planned resort that offers privately developed and maintained
infrastructure, as well as public access, timeshare units like those proposed at Kumu Hou can
be an important tourism management tool and means of relieving pressure on the Island's
residential communities.
• Enabling maintenance of the Resort's golf complex, which is enjoyed by many local
residents for recreation as well as for its open space and beauty. While golf play has declined
generally, timeshare visitors remain a critical golf market segment, exhibiting rates of play
more than four times those of the Resort's hotel and condominium visitors. Golf demand
originating from timeshare units at Waikoloa Beach Resort is key to the maintenance of a 27-
hole complex at the Resort for the foreseeable future.
• Generating a major endowment for the Waikoloa Foundation and supporting affordable
housing. Without the revenues projected from the sales of timeshare units,the many important
environmental and cultural service goals of the Waikoloa Foundation, and the not less than
140 units of affordable housing planned within the Resort would not be feasible.
Timeshare has also been shown to be a successful visitor accommodation model statewide. On
Hawaii Island, State data shows that timeshare units outperform hotel units in terms of occupancy
and have shown a quicker and more resilient recovery as pandemic restrictions have eased. Within
Waikoloa Beach Resort itself, timeshare is a well-established and successful product, with some
25 years of successful marketing and sales by HGV and Marriott Vacations Worldwide, including
on sites adjacent to those planned for Kumu Hou. Since Waikoloa Beach Resort is the only resort
along the Kohala Coast that permits timeshare, it is not only a logical location for this needed
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Planning Committee, County Council, County of Hawaii,
c/o Ms. Ashley Kierkiewicz, Chairperson j
SUBJECT: NEED AND DEMAND FOR TIMESHARE UNITS
February 14, 2022
Page 8 of 8
pressure reliever, but one that is highly advantaged in the marketplace.
Finally, this memo summarized results of a Fall 2021 survey of recent visitors to Hawaii Island,
which show that timeshare visitors staying at Waikoloa Beach Resort, and Waikoloa Beach Resort
visitors in general, tend to spend more time within the Resort(or within walking distance of their
place of accommodation) than do other visitors to the Island.
Thank you for allowing me to submit these comments on behalf of WLC. I was born and raised in
the islands and share many of the concerns expressed about tourism and its impacts on local
communities. I have worked on resort, affordable housing, and community-serving projects in
Hawaii for over 30 years and have been qualified as an expert witness for numerous county and
state quasi-judicial processes, as well as in Circuit Court. Kumu Hou stands out in my experience
as a groundbreaking proposal that seeks to create economic benefits while leaving a legacy to
address critical resident needs and broad environmental, cultural, and community interests.
Enclosed please find a resume with more information on my personal background.
I'd be pleased to address any further questions you or other Committee members may have on this
topic, before or during the next hearing on February 22nd
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2022-0214 Timeshare Need FINAL
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VIA, PBR. HAWAII
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ANN MIKIKO BOUSLOG, PHD � s
PROJECT DIRECTOR
Dr. Bouslog has over 30 years of experience in market assessment, ,
economic and fiscal impact analysis, entitlement, and strategic
planning for undertakings throughout Hawaii and around the Pacific.
As Project Director at PBR HAWAII since 2015, Dr. Bouslog has led
efforts to support affordable housing initiatives in Hawaii, preparing
market studies, economic and fiscal impact assessments, 201H
applications, and Interim Planned Development-Transit (IPD-T)
permit applications. Her practice areas also span infrastructure finance,
market and economic aspects of TOD and other regional initiatives;
business planning for community and conservation-oriented facilities; EDUCATION
Ph.Dand resort and visitor industry consultations. Recent and ongoing Corn in Dem University Demography/Sociology,
Hawaii island projects have addressed Office of Housing & Corned University
Community Development's Kamakoa Nui Master Planned MA in Sociology with minor in City&
Community, Kamoleao Community Center, Kea`au Town Center, Regional Planning,Cornell University
Waimea Town,Waikoloa Beach Resort, and Mauna Kea Beach Resort. BA in Urban Studies, Stanford University
Prior to joining PBR HAWAII, Dr. Bouslog served as Forest City PROFESSIONAL AFFILIATIONS
Hawaii's development manager for the $770 million Kamakana Rate Commission,City and County of
Villages, a 2,200-home master planned community in partnership with Honolulu: Commissioner,2017-present
the State of Hawaii, Housing Finance and Development Corporation. Lambda Alpha International:
At Forest City, she also supported entitlement initiatives for a 19- Current Board Member-,Former President,
megawatt solar farm in Kuma, O`ahu. Aloha Chapter;Former Asia/Pacific
Prior professional ventures include founding and operating Mikiko Regional vice President;Former Western
Corporation, a real estate and economic advisory firm, and serving as U.S.Assistant Vice President
Director of KPMG's Hawaii Real Estate and Hospitality Consulting East-West Center Foundation:
practice. In these capacities, Dr. Bouslog directed services for Past Board Member
prominent government, resort, and community developments such as Community Housing Fund at Hawaii
the U.S. Navy (Ford Island and bulk dispositions), U.S. Army Community Foundation:
(Residential Communities Initiative), Department of Hawaiian Home Former Director
Lands, Waikoloa Beach Resort, Mauna Lam Resort, Hualalai, Urban Land Institute,Hawaii Chapter:
Kukui`ula, K6`ele and Manele, Hilton Hawaiian Village, Waikiki Former UrbanPlan Chair&Mgt. Committee
Beachwalk, and Ho`opili, as well as projects in Japan, South Korea,
Malaysia, Saipan, Guam, and Palau. In 2013-14, she helped organize a Kamehameha Schools for-profit
subsidiaries including Bishop Holdings
10+ party mediation to address a proposed critical habitat designation Corporation,Kamehameha Investment
in West Hawaii, resulting in mutually beneficial agreements between Corporation,KUKUI,Inc. and Pauahi
area landowners and the U.S. Fish and Wildlife Service. Management Corporation:
Dr. Bouslog has been qualified as an expert witness on real estate Former member of the Board of Directors of
market and related matters numerous times, before State and County all four entities
agencies as well as in Hawaii Circuit Court. In April 2016, her
testimony before the Hawaii State Land Use Commission on Oahu's
Koa Ridge was cited in the Hawaii Supreme Court decision regarding
the project's LUC redistricting.
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February 16, 2022
22-038 1 20-32
Resource EnL� int,kkiim-,
u `
'l
Ms. Ashley Kierkiewicz, Chair
Council Planning Committee
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
Subject: Bills 112 and 115: Kumu Hou Water Use
Honorable Chair Kierkiewicz:
I understand questions have been raised regarding the proposed Kumu Hou project's potable
water use that would be provided by the Hawaii Water Service Company's(HWSC)wells in the Waimea
Aquifer. 1 am an engineer with a specialty in well development and groundwater use with decades of
experience in West Hawaii and throughout the State of Hawaii. I authored the report on the potential
impacts of Kumu Hou on water resources of the area. This study was included as Appendix 6 to the
Special Management Area(SMA) and Change of Zone(COZ)applications for Kumu Hou.
In the 2019 update of the State's Water Resources Protection Plan, the sustainable yield of the
Waimea Aquifer was reduced from 24 to 16 million gallons per day(MGD)with a provision that the
Aquifer's boundaries may be revised and the sustainable yield would be adjusted accordingly. Current
pumpage from the Waimea Aquifer is about 13.5 MGD. Kumu Hou's projected water use would amount
to about 0.54 MGD at its full buildout and occupancy, estimated to occur in 2042 or later. HWSC has
provided a letter to the Applicant indicating that it is willing and able to serve the potable water needs of
Kumu Hou. That letter was included in the SMA/COZ Application as Appendix 14. This letter fulfills the
Concurrency Requirement relative to potable water under the County's zoning code.
The Applicant and I have evaluated how Kumu Hou could reduce its use of groundwater from the
Waimea Aquifer so that the project's net draft from the Aquifer would be zero. This could be achieved by
several actions, two of which are described below:
• Landscaping on roadways and other common areas within the Resort that are currently
irrigated with potable water could be converted to more drought-tolerant and native species
requiring a lesser amount of irrigation.
• Various common areas now irrigated with potable water could be converted to irrigation by
brackish water from wells in the adjacent Anaehoomalu Aquifer. This could be done on a
proportional basis throughout the buildout and occupation of the Kumu Hou project, so that
there would be no increase in pumpage from the Waimea Aquifer to supply the Kumu Hou
project.
Page 2
February 16, 2022
22-038 1 20-32
With these measures, all potable use by the Kumu Hou project would be offset by an equivalent
reduction of irrigation using potable water—essentially Kumu Hou could have a net zero impact on the
Resort's use of groundwater from the Waimea Aquifer. I will be available at the upcoming meeting on
February 22nd and will be pleased to answer any questions you or your other Committee members may
have on these topics.
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Sincerely,
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Tom Nance
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Proposed Sustainabillity Actions and Guidelines
for Kurnu Hou at Waalkoloa
by PBR HAWAII, May 2021
Kumu Hou at Waikoloa will meet or exceed applicable provisions of governing
County and State plans, laws, rules, ordinances, and standards. With respect to
environmental stewardship and sustainability, the following proposed actions and
guidelines are highlighted.
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ate t':Ccanse a nrtaterrza p fry to the lo -tear►hre of uvrre res�crrc�sz recd'a sstems.
Potable and ground e Reduction in golf course irrigation needs is achieved through the
water repurposing of nine holes, encompassing some 59.9 acres, for other uses.
e Irrigation of Kumu Hou's landscaped areas will be implemented via a new
brackish water irrigation system expected to result in ultimately less draw
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from the Resort's overall brackish water resource (together with golf
course savings).
e Automatically controlled water efficient irrigation system will be
incorporated, with irrigation times limited to cooler times of day to
minimize loss through transpiration.
e Landscape selections will include preference for native and drought- j
tolerant species, in conformance with Hawaii County Code (HCC)
Chapter 25, Section 25-4-59.3.
e Large expanses of as lava will be preserved and/or renaturalized, and the
Gateway Parks will incorporate areas of unmanicured meadow with native 1
grasses and plantings to reduce water use.
e Low-flow plumbing fixtures will be used where appropriate.
Storm water runoff e Planning for stormwater management will include mitigation intended to
ensure that runoff during construction as well as post-development does
not exceed pre-development levels.
e A National Pollutant Discharge Elimination System (NPES)permit will be
obtained prior to construction or grading, as applicable. A NPDES permit
addresses water pollution by regulating point sources that may discharge
into waters of the United States, such as the ocean.
Wastewater e All Kumu Hou wastewater will be directed to the Resort's existing tertiary
treatment facility, with the R1 water output used to water the remaining golf
fairways, further reducing demands on groundwater resources (see "Potable
and ground water", above), potentially also reducing the need for fertilizer
use.
Appendix 13, Page 1
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e All new construction will comply with Hawaii County Plumbing Code
(HCC Ch. 17) and State of Hawaii Department of Health Wastewater
Division requirements.
Nearshore marine e According to a December 2020 marine environmental assessment:conducted
waters for this project by.Marine Research Consultants, Inc., Kumu Hou will not
cause any deleterious changes to the existing condition of nearshore marine
resources, given Best Management Practices such as those noted above,
along with reduction in nutrient flux to the ocean through groundwater
discharge.
Natu eel' eb utywa,rid cu 11tUr -;,fkh r'the,'&na_' f7 El cultural-#£'SOi rcasy naltural tl3d T`Al3Cl'
pro d"
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Land Kumu Hou is located in an established resort zone, recognized by State land
use designation, County zoning, County LUPAG, the South Kohala CDP,
and the existing SMA permit. These designations serve to concentrate such I
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development in appropriate areas and thereby protect other lands in the
region for conservation, agricultural or other non-urban uses.
e The Project Area does not encompass any critical habitat-designated areas.
Cultural and e Archeological sites found in the Project Area were determined to be
historical resources significant only for their information content, which has been documented. I
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e The Resort will continue to provide conservation, public access, and
educational opportunities related to the Kings' Trail, the shoreline trail, its
petroglyph preserve, abrader area, the Kuualii Fishpond,Nawahine Rock
Settlement, and other cultural and historic resources already protected
elsewhere within the Resort.
Shoreline activities ! Due to its distance from the shoreline, Kumu Hou is not anticipated to
impact traditional fishing or gathering practices along the coastline.
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Visual impact e Kumu Hou does not touch the Resort's existing average 800-foot setback
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from Queen Ka`ahumanu Highway, conserving this wide open view of the
area's rugged and iconic landscape.
e Building heights, locations, and color palettes have been conceptualized
with attention to the preservation of important public views, in accordance
with applicable zoning regulations and in recognition Hawaii Revised
Statutes 205A-2, (c)(3)(B).
s Landscape plans around the timeshare and community facilities is conceived
to honor the beauty of the area's natural lava formations, with large areas
left untouched, and other areas "renaturalized".
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e The Gateway Parks will incorporate large areas of retained natural lava
and/or unmanicured meadow with native grasses and plantings to reduce
maintenance and honor the beauty of the existing landscape.
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Appendix 13, Page 2
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• Kumu Hou will not impact profile views of South Kohala's surrounding
mountains.
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Plants • Landscape selections will include preference for native and drought-tolerant
species, in conformance with Hawaii County Code (HCC) Chapter 25,
Section 25-4-59.3.
Fauna • While not observed during the biological survey, to avoid risk during
potential overflights of Hawaiian Petrels and Newell's Sh(.arwaters, no
construction or unshielded equipment maintenance lighting will be permitted
after dark between April and October, all additional permanent lighting will
be minimized and the installation of outdoor lighting fixtures will be shielded
in conformance with Hawai'i County Outdoor Lighting Ordinance (HCC
Chapter 14, Article 9.)
Solid Waste • During demolition of the clubhouse, useful materials and fixtures will be
deconstructed and sold or donated for re-use, diverting the volume of
landfill waste.
Ert�rgy ' C 1ebufl en1"Iro-,n eht:-Reduce consci*ti +rrtraf c n the power vi`at arndfossil
fetefsf
Prom- buiidin desc`gns that f9ster sutteur0abitity..
Design . While Kumu Hou is not currently planned to apply for Leadership in Energy
and Environmental Design (LEED) certification by the United States Green
Building Council, the Applicant will encourage sustainable design strategies
in design, construction, and operations.
• Energy management expertise will be encouraged in all building and facility
design efforts.
• Outdoor lighting fixtures will comply with the County Lighting Code,
avoiding sources that could contribute to light pollution or represent danger
to area birds or other species.
• Timeshare units are expected to include Energy Star Q appliances and other
fixtures as required by County Energy Code.
Appendix 13, Page 3
Sun &Shade To keep the night sky clear and the stars visible, all outdoor lighting will be
in compliance with Hawaii County's Outdoor lighting code, Chapter 14,
Article 9, Hawaii County Code (HCC).
® Native and adaptive shade trees will be provided where appropriate for
shade.
Fossil Fuels ® The expansion of multi-modal and walking paths as shown in the Kumu
Hou Master Plan will encourage alternate modalities that reduce reliance on
fossil fuels.
• Other alternate energy technologies and storage facilities will be encouraged
as opportunities present.
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Appendix 13, Page 4