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Home My WebLink AboutCOM 0595.006 2020-2022 - Docuign Envelope ID:E587D638-AC46-438F-91 E7-94D9DDEEAI C5 Mitchell D.Rothos�y, . '•ov .' . '•'.i4 • Zendo Kern Mayor �•, ' Director • Lee E.Lord • , + _ Jeffrey W.Darrow Managing Director •'••o=- =••. Deputy Director West Hawai`i Office East Hawai`i Office 74-5044 Ane Keohokalole Hwy101 Pauahi Street,Suite 3 Kailua-Kona,Hawai`i 96740 County of Hawaii Hilo,Hawai`i 96720 Phone(808)323-4770 Phone(808)961-8288 Fax(808)327-3563 PLANNING DEPARTMENT Fax(808)961-8742 March 7, 2022 • Ms. Ashley Kierkiewicz, Chair - and Members of the Committee on Planning ' • —#` County of Hawai'i --< 25 Aupuni Street17.1 Hilo, HI 96720 Dear Chair Kierkiewicz and Members: Subject: Bill 112 & 115—Kumu Hou at Waikoloa Project This letter is in response to questions raised at the February 22, 2022, County Council Planning Committee meetingrelated to timeshare entitlements within the existingWest Hawai`i resorts, • � the status of updating the 2010 Hawai`i County Water Usage and Development Plan, and a request by•Councilmember Inaba requesting information on the maximum number of units allowed under current zoning within the Waikoloa Beach Resort. Based on these requests,we have the following to offer: Time Share Allowance & Status of Time Share Development for West Hawai`i Coastal Resorts The Committee requested information on where time share units are permitted within coastal resort developments in West Hawai`i and how many time share unitsl have been built to date. Based on the preceding, staff conducted research on pertinent entitlements (including State Land Use Commission Decision & Order documents, SMA Use Permits, and Change of Zone ordinances) for resort areas from Kohanaiki to the Mauna Kea Beach resort reviewing entitlements to determine permitted uses and dwelling unit caps as well as applicable Annual Progress Reports that articulate number of units built. 1 According to the Zoning Code,Time share units are defined as, "any multiple family dwelling unit or hotel,which is owned, occupied or possessed, under an ownership and/or use agreement among various persons for less than a sixty-day period in any year for any occupant,and is regulated under the provisions of chapter 514E,Hawai`i Revised Statutes,as amended." www.planninc.hawaiicounty.gov Haivai`i County is an Equal Opportunity Provider and Employerplanning c(�i,hawaiicounty.gove�� G ppillill. No. J • R!F To: Pf/ — t r. - ReF.bate MAR ® 8 2022 DocuSign Envelope ID:E587D638-AC46-438F-91 E7-94D9DDEEAI C5 Ms. Ashley Kierkiewicz, Chair and Members of the Committee.on Planning March 7, 2022 Page 2 Based on our review, only three (3) resorts explicitly mention time share units in their entitlement documents (Kaupulehu Project District, Hualalai Project District and Maniniowali Project District). The first two (2) expressly permit time share units and the third (Maniniowali PD) expressly prohibits the development of time share units in the PD ordinance. ■ Kaupulehu Project District: The developers of the Kaupulehu PD are limited to 1,030 dwelling units (530 single-family homes & 530 multiple-family units)pursuant to Project District Ordinance No. 99-42. As of 2018, 170 residential units had been developed and the developers anticipate the development of a total 707 residential units (far fewer than the 1,030-unit cap). The documentation reviewed does not indicate how many of these existing or proposed units are used as time share units. ■ Hualalai Resort Project District: Developers of the Hualalai Resort PD are limited to 612 residential units pursuant to Project District Ordinance No. 00-06. As of 2020, 112 total dwelling units had been developed (65 single-family lots and 47 multiple-family dwelling units). According to their latest Annual Progress Report (APR), the preceding is concluded the extent of the resort-residential development,.despite being entitled for 500 additional units.2 The only undeveloped land area is approximately five (5) acres to be developed for commercial uses. The documentation reviewed does not indicate how many of these existing or proposed units are used as time share units. ■ Maniniowali Project District: Project District Ordinance No. 00-007, which created the Maniniowali PD expressly prohibits time share units. Of the 900 single-family, double- family, and multiple-family units entitled under this ordinance, 140 residential lots had been created as of 2014,which is the date of the most recent APR, however, there has been subsequent subdivision since. It is important to note that despite the limited references to time share units in the above mentioned entitlements, the Zoning Code permits time share units by right in the following zoning districts which may be included within west Hawai`i resort areas: V (Resort-Hotel), CG (General Commercial), and RM (Multiple-Family Residential) provided that they are located within an area designated resort by the General Plan LUPAG map, areas determined by the Planning Director to be within resort areas identified by the GP land use element, except for retreat resort areas, and areas determined for such use by the County Council, by resolution. 2 The discrepancy between entitled units and anticipated units at full build out for both the Kaupulehu and Hualalai PD areas could be caused by a number of factors including site constraints,market desires,and internal caps placed on units developed by resort landowners through CCRs. , DocuSign Envelope ID:E587D638-AC46-438F-91 E7-94D9DDEEA1 C5 Ms. Ashley Kierkiewicz, Chair and Members of the Committee on Planning March 7, 2022 Page 3 Status of updating the 2010 Hawaii County Water Usage and Development Plan (HWUDP) It is the Planning Department's understanding that the 2010 HWUDP identified two aquifer sectors to be considered for further evaluation and detailed assessment. Prioritization of the aquifer areas identified resulted in the selection of the West Mauna Kea Aquifer Sector Area (ASEA) [803]/Waimea Aquifer System Area (ASYA) [80301] and the Hualalai ASEA [809]/Keauhou ASYA [80901] for update. DWS completed the assessment and update for Hualalai/Keauhou and are working with a consultant on the_update for the Waimea aquifer system area. However, the State Commission on Water Resource Management (CWRM) is in the process of updating its Water Resources Protection Plan and is considering combining the Waimea and `Anaeho`omalu aquifer system areas. The State held a hearing in October 2019, but we are not aware of any updates on the status of the State's Plan. More info, including the CWRM staff presentation, can be found on the website. https://dlnr.hawai i.gov/cwrm/planning/hiwaterplan/wrpp/waimea-anaehoomalu/. CWRM establishes sustainable yield and then DWS plans for the appropriate water uses within that aquifer system area. Thus, it is likely DWS is waiting to see if the Waimea and, `Anaeho`omalu aquifers are combined before they do their planning and update the 2010 HWUDP. Maximum Number of Residential Units Allowed with Current Zoning As shown in the attached table provided by the Applicant, the maximum number of residential dwelling units currently allowed with existing zoning in Waikoloa Beach Resort (WBR) is 6,857 , units. Column A of the table shows the units allowed per the current zoning for each project/property in WBR. Column B shows the units built to date and Column C shows the remaining units that are allowed to be built per zoning. Column D provides the estimate of future units based on limits to development that the Applicant has placed on each project/property. Column E shows the total number of units that will be built on each project/property. Various factors may prevent'a project/property from building out to the full extent allowed by zoning. For example, the.current zoning allows 1,326 units to be built on the Kolea Centex property, and 143 units have been built to date, which means that 1,183 additional units could be built in the future with existing zoning. However, the Applicant has placed a cap on further development of this project/property as shown by the zero in Column D. The Planning Department has evaluated the data provided within this table against information in Department files and_has verified the accuracy of this information. Lastly, the Land Use Commission Decision and Order and SMA Permit No. 25 limits WBR to developing a maximum , DocuSign Envelope ID:E587D638-AC46-438F-91 E7-94D9DDEEAI C5 Ms. Ashley Kierkiewicz, Chair and Members of the Committee on Planning March 7, 2022 Page 4 of 1,604 residential units mauka of King's Trail and 1761 residential units makai of the King's Trail for a total of 3,365 residential units, anda maximum of 3,000 visitor units within WBR. a Should you have any questions, please feel free to contact Planning Program Manager, Maija Jackson at(808) 961-8159. Sincerely, DocuSigned by: Alia6 61A, 71 C04DC68548430... _ ZENDO KERN Planning Director Attachment: Waikoloa Beach Resort's Visitor&Residential Units Reconciliation (3/3/22) DocuSign Envelope ID:E587D638-AC46-438F-91 E7-94D9DDEEA1 C5 WBR VISITOR&RESIDENTIAL UNITS RECONCILIATION @ 3/3/22 COLUMNS A B C D E Column A Column B minus B plus D - Units Available Total Allowed Units Units Per Estimated Units Per Zoning Built Zoning Future (Built Plus FP LOT TMK Acres OWNER/PROJECT NAME Code To-Date Code Units Future) 6-9-007-015 10.000 Waikoloa BC LLC-V-2.0a(Lava Lava) 4 4 0 0 4 1562 4 6-9-007-004 12.782 Lonomakua Partners LLC-V-1.25 445 0 445 300 300 1562 8 6-9-007-008 15.735 SMG I Hotel/South Tower Timeshare-V-1.25 548 407 141 141 548 (Marriott) 1853 3A&B 6-9-007:14,39 61.354 Global Resort Partners &Ocean Tower VOA, 2,138 1,193 945 48 1,241 Inc.V-1.25 Proposed Kumu Hou Timeshare 0 0 900 900 Remainder Units 0 0 7 7 Total Visitor Units 3,135 1,604 1,531 1,396 3,000 1562 18 6-9-007-019 11.402 The Shores at Waikoloa-RM-1.5 11, 331 120 211 0 120 1853 2 6-9-009:001 to 011,015 20.150 Naupaka Place-RM-1.5 (1) 585 12 573 0 12 1954 3 6-9-007-031 15.000 The Bay Club-RM 3.0(1) 217 172 45 0 172 1954 4 6-9-007-032 9.539 Kohala Suites-RM 3.0(1) 138 120 18 0 120 1954 6 6-9-010-001 28.574 Hali'i Kai-RM-1.5&RM-3.0(1) 590 192 398 0 192 1954 7 6-9-007-035 22.034 Colony Villas-RM-3.0(1) 319 168 151 0 168 1964 2 6-9-007-009 8.717 Vista Waikoloa-RM-1.5(1) 253 122 131 0 122 2001 3 6-9-008-003 9.796 Fairway Villas RM-1.5(1) 284 165 119 0 165 2334 1 to 26 6-9-011:001 to 026 38.414 Kolea Centex-V-1.25(1) 1,326 143 1,183 0 143 1562 2 6-9-007-002 13.456 Lonomakua-CV-10 468 0 468 408 408 1562 5 6-9-007-005 3.176 Lonomakua-RM 1.5 92 0 92 92 92 2424 Various 6-9-008:012,020 to 024 112.425 HGVC-Kings Lands-RM-4,RM-6,RM-8 804 436 368 366 802 2376 2 6-9-007-035 22.034 Beach Villas-RM 3.0(1) 319 120 199 0 120 2013 1 6-9-012:002,003,007 76.510 JPL Ainamalu-RM,CV,0 583 40 543 380 420 6-9-013:001 to 006 JPL Ainamalu 6-9-015:001&various JPL Ainamalu 1562 20 6-9-007-021 11.005 Beach GC Driving Range-RM-1.5(2) 319 0 319 142 142 2449 A(por) 6-9-008-032 19.675 Workforce Housing-RM-6(Kumu Hou) 142 0 142 142 142 2457 B 6-9-008-033 12.170 Mauka WDC Admin Office-RM-6(to be 87 0 87 0 0 merged with Kumu Hou) Proposed Kumu Hou Single-Family 0 0 25 25 Total Residential Units 6,857 1,810 5,047 1,555 3,365 Total Visitor&Residential Units 9,992 3,414 6,578 2,951 6,365 (1)Existing multi-family and/or single-family development with separate individual unit owners.No future development. (2)Owned by Waikoloa Land Co.;single-family or less dense multi-family development planned.