HomeMy WebLinkAboutREP PC 048 2022/03/08 (2020-2022) REPORT OF THE
COMMITTEE ON PLANNING
DATE: March 8, 2022 Re: Comm. No. 595/Bill No. 112
PLACE: Council Chambers
Hilo, Hawaii
TIME: 10:31 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Planning, to which was referred Bill No. 112, reports as follows:
Bill No. 112, submitted by Mayor Mitchell D. Roth via Communication 595, dated January 18, 2022,
amends Section 25-8-13 (Puak6-`Anaeho`omalu Zone Map), Article 8, Chapter 25 (Zoning) of the
Hawaii County Code 1983 (2016 Edition, As Amended), by changing the district classification
from Open (0) and Multiple-Family Residential— 8,000 Square Feet(RM-8)to Multiple-Family
Residential—6,000 Square Feet(RM-6) and Single-Family Residential— 10,000 Square Feet(RS-10)
at Waikoloa, South Kohala, Hawaii, covered by Tax Map Key 6-9-008:021, Por. 027, Por. 028, and
Por. 031. The applicant is Waikoloa Land Company and the property area is 45.932 acres. Bill
No. 112 was introduced by Committee Chair Ashley Kierkiewicz by request.
The Leeward Planning Commission forwards its favorable recommendation for this change of
zone, which would allow the applicant to construct 264 multi-family residential units and create
25 single-family residential lots with associated infrastructure. The properties are located
between the 75- and 76-mile markers on Queen Ka`ahumanu Highway and west(Makai) of the
highway to the King's Highway Foot Trail, `Aneho`omalu and Waikoloa.
Committee Chair Ashley Kierkiewicz clarified that Bill No. 112 and Bill No. 115 are for the
same project and that discussion would be global, covering both Bills. This matter was
postponed on the February 8, 2022 and February 22, 2022 Planning Committee meetings.
Planning consultant Sidney Fuke was present in the Hilo Chambers to represent the applicant.
Mr. Fuke explained that this is a large development that will have island wide benefits such as
economic opportunities, better tourism management, increased property tax revenue, and much
needed housing units. The proposed development would add 900 timeshare units, 140 affordable
workforce housing units, and become a revenue source for the newly-established Waikoloa
Foundation which will invest in initiatives throughout Hawaii Island.
John Plunkett, Vice-President of Waikoloa Land Company, was present in the Hilo Chambers to
explain why the area is being repurposed. He shared the history of Waikoloa Resort, the
economic activity and infrastructure it provides, and that they prioritize being an all-inclusive
community to bring in visitors and kama`aina alike. Through the Kumu Hou project, they intend
to manage impacts of tourism by concentrating visitors to the resort area, while also providing
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community benefits and island-wide investments through the Waikoloa Foundation, which will
be partially funded by the sales tax of the timeshare units.
Anne Bouslag, Project Director with PBR Hawaii & Associates, Inc., explained the revised
masterplan, its impacts, and regulatory compliance components. She noted the proximity to the
King's Trail and that the development will take place entirely mauka of the trail to avoid any
disruptions to the cultural site. She also noted that the 800-foot setback from Queen Ka`ahumanu
Highway will remain open space to preserve the natural geography and scenery of the
environment. Ms. Bouslag went over the proposed map with Your Committee and explained that
the planning is intended to reduce traffic congestion, maximize open space where possible, and
provide better connectivity and public spaces. An updated traffic study will be conducted after
Final Plan Approval is granted. She also said that an Archeological Inventory Survey was
conducted in 2021 and concluded that no historic properties would be impacted. The freshwater
service in the area is provided by Hawaii Water Service Company who has indicated that they
are willing and able to supply the development. Irrigation systems are being proposed in Area C
which will use brackish water for irrigation purposes. She emphasized that no freshwater will be
used for irrigation, and that they are prioritizing drought resistance and native vegetation which
will have a net decrease on the amount of water drawn from the `Anaeho`omalu Aquifer.
Stanford Carr of Stanford Carr Development explained the workforce housing component. He
acknowledged the hardships resort workers face such as long commute times and cost of living.
He shared plans to leverage the 201H process to increase housing density beyond the proposed
140 units. The desire to provide housing at 60-120 percent of AMI (Average Median Income), so
an individual worker with an annual income of$18,000 will be able to afford a one-bedroom unit
at $450 a month and a family of four making $61,360 a year can afford a unit at $1,200 a month,
utilities included.
Cary Boedekker, Founder and President of the Waikoloa Foundation, explained that the
Waikoloa Foundation will be funded through a percentage of every timeshare sold (2 percent);
this is estimated to be $50 million over the duration of the project. She emphasized that the
Waikoloa Foundation will support stewardship and destination management activities as well as
local initiatives that advance quality of life for island residents.
Committee Member Heather Kimball asked about density and preserving open space. She asked
if the density will remain within the 3,000 visitor units and 3,365 residential units allowed by the
SMA (Special Management Area)permit and if the remaining open golf holes would be
developed for timeshares or other non-open space uses. Mr. Fuke responded via Communication
No. 601.3 that Kumu Hou's density actually decreases, that units will remain within the limits of
the SMA permit, and that they will commit to keeping the remaining 27 golf holes in the golf
course or as open space.
Committee Member Sue Lee Loy asked if the Waikoloa Foundation will cap the foundation's
revenue at $50 million to which Mr. Plunkett responded that they are hopeful to make more and
that the $50 million was estimated from a third party. She then encouraged the applicants to
explore adding sustainable elements to the development such as electric vehicle charging
stations, solar panels, or LEED (Leadership in Energy Design) components. Committee Member
Lee Loy then discussed the lack of emergency response automated external defibrillators (AED)
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in the resort complex and added that AEDs should be required on commercial properties to aid in
first responder situations.
Committee Member Holeka Inaba asked if there was County-specific data to support the
decision for 900 timeshare units and what the assumed increase in groundwater is. Mr. Plunkett
provided the requested timeshare data via Communication No. 601.2, and Tom Nance,
hydrologist, responded that nearly 545,000 gallons of freshwater will be drawn daily. Mr. Nance
further explained that they plan to reduce the net draw of water from the `Anaeho`omalu aquifer
by taking out nine of the current golf holes, reusing brackish water and installing drought
resistant and native vegetation.
Committee Member Rebecca Villegas noted the current housing shortage across the islands and
discussed the impacts tourism has had on residents and the environment. She commended the
applicant for the workforce housing component but added there should be more housing units as
opposed to timeshares.
Committee Member Maile David noted the negative impacts of tourism and asked how
affordable the workforce housing units will be. Mr. Fuke answered that 60 percent of all units
will be in the 30-60 percent AMI range, and the remaining units will be up to 120 percent AMI.
Committee Members Tim Richards and Aaron Chung both commended the project for its
sustainable planning and the economic benefits the County will receive through increases in real
property tax. Committee Member Chung noted that Stanford Carr is a respectable housing
developer who sees his projects through. Committee Member Richards praised the creative
model of using the Waikoloa Foundation to reinvest in communities and for being a leader in
developing workforce housing units.
Committee Chair Kierkiewicz summarized the concerns of Your Committee such as the
workforce housing component, open space requirements, water usage impacts on the aquifers,
legally binding the Waikoloa Foundation's commitment, and required installation of AEDs.
Many of these concerns are addressed via amendments to Bill No. 115 in Communications
No. 601.6 through 601.10. She had emphasized the need for childcare services for the workforce
housing component and requested survey data on timeshare occupants and usage of resort
amenities, which was provided via Communication No. 601.2. She thanked the applicants for
their ongoing engagement and noted how well thought out the planned development was.
The vote was then taken on the motion to move this measure to Council with a favorable
recommendation and passed with 7 "ayes."
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Your Committee on Planning is in accord with the purpose and intent of Bill No. 112, and recommends
its passage on first reading.
's
AYES NOES ABS Ex Respectfully submitted,
CHUNG X
DAVID x COMMITTEE ON PLANNING
INABA X
KANEALI`I-KLEINFELDER X
KIERKIEWICZ X
KIMBALL X
LEE LOY x ASHLEY L. KIERKIEWICZ, CHAIR
RICHARDS X PC REPORT NO.: 48
VILLEGAS x ADOPTED: MAR 2 3 2022