Loading...
HomeMy WebLinkAboutMIN PC 2022/02/08 2020-2022 Committee on Planning 19th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii February 8, 2022 CALL TO The regular meeting of the Committee on Planning was called to order at ORDER: 2:24 p.m., in the Council Chambers, Hilo, by Ms. Ashley L. Kierkiewicz, Chair. ROLL CALL: Present: Ms. Ashley L. Kierkiewicz, Chair Ms. Rebecca Villegas, Vice Chair Mr. Aaron S. Y. Chung, Member(came in later) Ms. Maile Medeiros David, Member Mr. Holeka Goro Inaba, Member Mr. Matt Kaneali`i-Kleinfelder, Member (came in later) Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Mr. Herbert M. "Tim" Richards, III, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Stephanie Donoho: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Kanani Aton: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Shane Nobriga: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Ross Birch: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Napahu "Douglas" Lilly: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Scott Dodd: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. PC-19 February 8,2022 Ama Lilly: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Ed Teixeira: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Bobby Brown: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Michael Cadaoas: Bill 112 (Comm. 595); comment. Nathaniel Kinney: Bill 112 (Comm. 595); comment. Chuck Flaherty: Comm. 485; comment. Christopher Delaunay: Bill 112 (Comm. 595); and Bill 115 (Comm. 601); comment. Wendy J. Laros: Bill 112 (Comm. 595); comment. Mark Van Pernis: Bill 112 (Comm. 595); and Bill 113 (Comm. 596); and Bill 115 (Comm. 601); comment. CHR KIERKIEWICZ: Mahalo nui, Relley. And for those that were wondering why we had two minutes of testimony time today, according to Council Rule 13, Number 3, letter(e), it is at the discretion of the Chair to set the time that members of the public are allowed to testify. So given that we had a number of testifiers on today's agenda and given that we are at the 3:00 o'clock hour, I used discretion to identify two minutes as being appropriate for members of the public to articulate their sentiments to this body. Thank you, everyone, for understanding. We are at the close of public testimony. Closing it at this time and moving on to business of the day. Mr. Clerk, if you could please start with our Communications. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 485: REQUESTS A DISCUSSION WITH THE PLANNING DEPARTMENT REGARDING THE STATUS AND ANTICIPATED TIMELINE OF THE REVISED GENERAL PLAN From Council Member Ashley L. Kierkiewicz, dated October 27, 2021. Page 2 PC-19 February 8,2022 Motion to Approve: Ms. Lee Loy moved to close file on Comm. 485. Seconded by Mr. Richards. CHR KIERKIEWICZ: Planning Director Kern, if you could please come forward. Members, because of the hour in the day, I'm just going to be asking the Director to provide us a quick update on where we are. Our current General Plan was adopted in 2008. My understanding is that work was done by then Planning Director Kanuha(Duane), to update the General Plan. It has now transcended a few Administrations. And clearly there are some rumors in the community about the existing plan that went out to be vetted and weighed upon by community members as basically being tossed out. Wanted to provide you an opportunity to kind of address those concerns and share with us why and how we are engaging certain consultants. There have been a few change orders that have been filed with this body related to General Plan work in the area of about$300,000. So a lot of time, a lot of financial investment. A lot of community heart and soul went into this document. So Planning Director, if you could just give us a quick update that would be great. Thank you. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Sure. Good afternoon, Madam Chair and members of the Committee. I thank you for being here and giving me the opportunity to provide this update. So yeah, the current General Plan was adopted in 2005. The current draft update was started right at the end of the Kenoi Administration and carried all the way through the last Administration, for the last four years. That plan draft that came forward was basically a rewrite of the General Plan. It's a new version of it. How exactly that decision was made, I'll have to go back and talk to some staff. I think the concept around it was to simplify it in certain ways with lesser sections so didn't have to kind of search everywhere in there. So what I'm doing right now is going through that draft as well as the existing plan and reviewing those together and seeing where they cross over, and where they merge, and where we can add things together. And probably be combining a plan of both of those together. Taking a look at it with the eyes of this Administration; taking with eyes of looking at it with members of our team. We've put together basically like an internal taskforce from all of our various divisions, so they'll be reviewing it; as well as going out to the various departments and agencies to get their review as well. And looking forward to making various revisions. Page 3 PC-19 February 8,2022 It has been a process. I think going through multiple Administrations makes it challenging. The goal is to get it complete during this time. And so with that, anytime there's revisions and changes, there's a consultant onboard for map changes, formatting, et cetera. And that's where we've seen some of those changes. We did have to shift some money around is what you've seen. We haven't been doing much spending because there hasn't been a lot of work this last year. It's been very focused on getting the operations stabilized; getting the backlog taken care of, which the backlog is taken care of, and getting the EPIC (Electronic Processing and Information Center) system up and running and functioning, which it is also doing that for the Planning Department. And right now, we are in full focus. So when I wake up in the morning, I think about General Plan. We have two Lead for Hawaii fellows on it. I have two staff members that are working on it as well as myself. And then, as I said, we're putting together like an internal taskforce to get some help around that and get some different perspective from folks that work in the different divisions. So that's the current process. It's looking like it's going to be about a year of that review, internal. Also talking with, you know, stakeholders, et cetera, going back out to get fresh input with this set of eyes. And then from there, we'll have to some reformatting, any map revisions, document formatting, et cetera. And once that's ready, it will then go out and be submitted to the Planning Commissions and start the overall process of going through Commissions, and then making its way to County Council. CHR KIERKIEWICZ: So, your revisions, then to Commission, which puts us at 2023, potentially? MR. KERN: Realistically, we're probably looking at Q (first quarter) of 2024, if I'm lucky. CHR KIERKIEWICZ: For the document to be sent to Council. Okay, that's helpful. MR. KERN: And it depends on that the Commission does, whether they, you know, postpone in their process. CHR KIERKIEWICZ: Sure. Okay, and there will be another series of public engagement about this kind of merged amalgamation of the various versions that are out there? MR. KERN: Yes. Page 4 PC-19 February 8,2022 CHR KIERKIEWICZ: Okay. MR. KERN: And, you know, right now they've collected a lot of data. We have a lot of data, right? So we have that, and then it's, how's that data used. So we want to really look at that data; how is the current plan? And again, kind of merge them together. The current draft is a little bit simpler in its format. One of the things I like about the existing General Plan is that is has a narrative; it has a story to it. And I like that. I think it pulls in the history. That's important for us to understand. And you know, honestly the—if it was just the current General Plan in ramseyer format, all changed, it would be a little easier. But because we're dealing with these two, it's a bit more complicated. And there's elements of the existing General Plan that I really like. There's some certain elements of the draft that are good. So I'm trying to basically do a hybrid merger of those together to bring out the best of both sides. CHR KIERKIEWICZ: Thank you. And kind of like my review of both documents, it seemed that the second iteration just had a lot more themes, such as culture and climate change. There was a lot more simplicity in the existing plan. And it just made more sense to ensure that we were looking at—say, infrastructure with culture and climate change in mind. So I hope that sort of cleaning up is going to be taking place. MR. KERN: Exactly. And especially on the, you know, I think there's a lot of cultural components in there. One of the areas that I see we can ramp up is the climate change side of it. And I really want to make sure that's current. It's interesting looking back at some of the general numbers as far as what the projections were and seeing where we are now. For example, one of them is that, you know, population and job growth tack at the same pace. I'm not seeing that. There's also, you know, things that we know about short-term vacation rentals now that we have regulations, so we can put those in there was well. So yeah, we are very focused on it. And looking forward to getting it to Council and getting it to the commissions and back out to the public. Make sure it's fully legally vetted and, you know, every process open and to the best that we can possibly do. CHR KIERKIEWICZ: Great. Thank you, Director. Colleagues, any questions or comments for Director Kern on the General Plan? Council Member Kimball. MS. KIMBALL: Thank you, Chair. I just had a question focusing again on the climate change aspect, how the General Plan update is going to intersect with the Climate Action Plan. Page 5 PC-19 February 8,2022 MR. KERN: With CAP (Climate Action Plan)? MS. KIMBALL: Yeah. MR. KERN: So the concept with that is, we want the GP, or the General Plan, I say GP, points at the Climate Action Plan. And the concept around the General Plan is it's not something you're looking to amend all the time. And as things change, you're amending, you're amending. You're trying to set it. And where there's amendments necessary, you'd do it. The CAP is something that's a bit more dynamic in its nature and it can be changing and shifting and growing and adjusting over these years, right? And as technology has come out, information comes out,we can adjust that and change that. And the policy of the GP points at the CAP. So they're connected with a little bit more dynamic in latitude with the CAP than you would have with the GP. That's the concept. MS. KIMBALL: And what's the timeframe then on the CAP. MR. KERN: The CAP, we're looking at around about a year-ish still, right in that zone. Hopefully a little bit less. So far, everything takes a little bit longer than we'd like. MS. KIMBALL: Okay, that's all I had, Chair. Thank you. CHR KIERKIEWICZ: Thank you. Anyone else? Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Zendo, does the General Plan take into account water? MR. KERN: The General Plan takes into account resources, sure. MR. KANEALI`I-KLEINFELDER: Okay. Because they're building out in Kona, different areas of Kona. It was on our Water Use Development Plan. Does it take into account providing water for all those developments that we're looking at? MR. KERN: It's going to have, you know, elements that talk about water. It's not going to be exactly pointing to you have to provide water for all those elements. It's going to be how we work with, you know, CWRM (Commission on Water Resource Management) and DWS (Department of Water Supply)to make sure that all of that works. So I guess maybe if you could clarify your question in the sense of like, are you talking about the growth areas? Page 6 PC-19 February 8,2022 MR. KANEALI`I-KLEINFELDER: Yeah, there's a few areas that are high-growth areas in Kona, or at least the west side of Hawaii. And those were talked about in a discussion with the Department of Water Supply. And we have some fairly large projects in front of us today. And that just kind of brought into my mind, are we thinking about future water use when we talk about the General Plan? MR. KERN: Yeah, absolutely. And we're not only looking at it from a source perspective, but also from a use perspective, right? And so we want to have policies in there to have the appropriate landscaping in the appropriate areas. So if you're in and area where we'd want landscaping that's obviously as native as possible. But that would also require minimum irrigation. And focusing on getting the water that we need in those core areas. So right now, we're working on potential TOD (Transit Oriented Development) area in that urban core, looking at the different elements that we need. Water is obviously a really big one. So the General Plan will be laying out, you know, policies or guidelines towards, we need this to happen. That being said, we can't go tell, you know, CWRM or the Commission on Water Resource Management what to do. They control that element of it, but we can certainly have the policies in place to preserve or use, you know what I mean? Keep it so it says, "Efficient as possible." And I think that's really critical. MR. KANEALI`I-KLEINFELDER: It is. I mean I'm thinking drinking water, yeah? So our kids have water when they want to drink water later on. MR. KERN: Correct. And so, you know, the concept of really focusing on gray water; you know, focusing on green infrastructure, we can get it. Focusing on R-I re-use, etcetera, right? And again, for landscaping minimizing any irrigation that would be needed there. So, for example, the landscaping that you might use in Hilo would be different than you'd use in west side. MR. KANEALI`I-KLEINFELDER: Totally. Because we have MR. KERN: Different rainfall patterns. MR. KANEALI`I-KLEINFELDER: Yes. Okay, thank you for the answer. Thank you, Chair. CHR KIERKIEWICZ: Thank you. Anyone else? Ms. Villegas, go ahead. MS. VILLEGAS: Thank you for explaining. It sounds like from what you explained, the attempt is to mitigate the concerns from people who were making assumptions that the old General Plan got kaputsed, and that the new one is being brought forward. Page 7 PC-19 February 8,2022 Also good to hear that—so, the EPIC system were caught up on all the permits? Is that what you said? MR. KERN: For Planning. MS. VILLEGAS: Okay, gotcha. Sorry, heard it and wanted to clarify. MR. KERN: Well, as I said, with EPIC there's a certain crossover that we have overlap. And individually, our departments really have our own tasks that we have in that regard. And for Planning, EPIC is working quite well, actually. MS. VILLEGAS: Great. I know we can't really divulge too far because that's a different topic. I just wanted to clarify, or ask to clarify. Now when it comes to the CDP (Community Development Plan) Action Committees and those being utilized as you're looking at the General Plan, I know that one of the conversations that's happening related to District 7 is the inclusion of consideration for floodplain mitigation as we're looking at the changes. I know what I'm seeing in my district is lots of development mauka being approved of, bulldozing, flooding, makai; and brown water on our oceans. So I just really want to encourage that all of those things, and as our weather patterns are changing you know, we're dry right now, but we had one of the wettest years on the west side. And we had some of the most intensive degradation to our coral reef ecosystems as the runoff came through. And the soil, which is so prevalent on this side of the island, not so much on the other, and it's just getting washed off into the ocean. So really looking for that consideration and now the technologies that are available from mapping and how those can be seen. I really want to make sure that those are updated. MR. KERN: Correct. We're working on that. We're also uplifting various components of the CDP's into the General Plan. So it's an opportunity for us to kind of bring those policies up in there and go through the AC (Action Committees) process. I witnessed the runoff in some of those areas. I've seen the brown water. And as a surfer, I want to mitigate that to the maximum ability. MS. VILLEGAS: The other thing wanting to take into consideration, I was just in a meeting at one of our little public elementary schools last week talking about the traffic jams around school pickup. We do not have the infrastructure necessary for the continued growth that's slated for Kona. We don't have the roads, we don't have the sewers. We're looking at all of our infrastructure that's already on the coastline needing to be mitigated and moved further mauka. So as we look at that General Plan, and I as the representative of District 7, and with a vision for Page 8 PC-19 February 8,2022 healthy growth in the Kailua Village Business Improvement District area and on that coastline on Alii Drive, it's also getting close to having to just put a hard "no." Because we don't have the roads. We cannot sustain more vehicles. We did, you know, I will totallya lot of us recognize that once the tourist vehicles were off the roads, our roads were fine. We didn't have the traffic issues. But taking that into consideration, when the tourism economy is up and thriving, our roadways, our infrastructure, wasn't built to sustain the number of people. And it puts us in a crisis in Kona because we continue to be inundated with new development opportunities. And I recognize the desirability of this space, and also the west side kind of being the economic teat of the County's budget. But we have to be careful that we don't overextend the utilization of our resources, and in doing so, then catastrophically impact the place in which everybody really wanted to visit. So I'm really hoping for a balanced equitable vision. I mean, we talk about people being priced out of homes. A home on Palisades Road sold for $1.2 million the other day. We are just I don't have the solutions. I wish I did, but I think that our General Plan and making sure that it's authentically and equitably focused on the long-term resilient strategy for a community of people, residents on the island. MR. KERN: That's my goal. MS. VILLEGAS: Thank you for taking those things into consideration. And infrastructure. We've got to get infrastructure in there. MR. KERN: A hundred percent, and that's a big part of it. And I think ultimately utilizing the General Plan for what it's supposed to be, as a guiding document for our island. It takes into account consideration and prioritization, and then where we can get the economies of scale with overlapping. Like if we're doing a road in an area, can we put sewer in at the same time? You know what I mean? What are those needs? We can really have that focus. That's one of my goals. And to even understand where those focuses are in advance, a year in advance. We should have shovel-ready projects in advance that should be driven by these plans that are planning out for what it's going to take to accomplish those needs. So it's a big part of it. MS. VILLEGAS: Yeah, transitioning from the kind of piecemeal infill that we end up just taxing the infrastructure more than contributing. So, thank you for confirming that those things will be taken into consideration. And yeah, your continued work with that. And we'll look forward to but sad to hear the timeframe, but also we as a County have suffered under a lot of mitigating Page 9 PC-19 February 8,2022 circumstances. I mean, we got the lava flow and finally getting a little head above lava; and then, you know, global pandemic. And the short-term vacation rental issues from your department, especially. So, looking forward to more good news and hopefully sooner rather than later. MR. KERN: That's my goal. MS. VILLEGAS: Alright. Thank you. CHR KIERKIEWICZ: Thanks, Vice-Chair. Council Chair David. MS. DAVID: Thank you, Chair Kierkiewicz. Aloha, Director. Going back to the explanation of the versions of the General Plan that you folks are using. Which version are you folks implementing now to approve? MR. KERN: The existing General Plan. MS. DAVID: The existing one without any amendments, right? MR. KERN: Correct. As it's been amended; as it stands amended. I didn't do any amendments. There has been no amendments for a number of years. MS. DAVID: Okay. Some are using the old one. MR. KERN: Yes. I call it the current General Plan. The other one's just a draft. MS. DAVID: Okay, awesome. That's what I wanted to confirm. Thank you for explaining that. And that's my question. MR. KERN: Yeah. So every, you know, application that you see, an analyzation is done based off of the current existing adopted one by the Council. MS. DAVID: Okay. And that's all I wanted to confirm. Thank you so much. CHR KIERKIEWICZ: Thank you. Anyone else? Director,just a few more questions. How does General Plan update potentially impact or not, revisions to Chapter 25 and 23? That's Zoning and Subdivision. MR. KERN: It definitely, you know, impacts those because we're going to be setting policies and objectives that will be pinpointing those. From a timing perspective, I'm going to work on doing both of those kind of concurrently. So we'll be able to hopefully opine on those. Page 10 PC-19 February 8,2022 Ideally, I'd want the General Plan first, and then 25 and 23 right after. But I just don't see any reason why we can't just focus on kind of concurrent running through those with the policies that are there and getting that update, and having a full draft to be reviewed. CHR KIERKIEWICZ: Okay, I'll bring you forward on 23 and 25, because we gave you a good chunk of money during budget, and I just want to make sure that those dollars have been invested well. MR. KERN: We're going out for professional services on that. So give me a little bit of time. CHR KIERKIEWICZ: Okay. Couple more months. MR. KERN: Sure. CHR KIERKIEWICZ: I prefer the end of the fiscal year. And then, so my understanding is, once we have the refresh of the General Plan done, that will then kick start revision of the CDPs that we have. MR. KERN: We will have to go back around for CDPs exactly. CHR KIERKIEWICZ: Okay. One thing that you mentioned was lifting up elements of the CDPs into the General Plan. Just really quickly, can you explain that? The reason why that kind of caught my attention was, for me the General Plan is the General Plan, without being very specific to the various regions and communities around our island. So I'm a little concerned about us getting a little too specific. MR. KERN: Yeah, and the concept isn't to get super specific. The concept is to uplift those general policies where there's overlap. So for example, in certain areas, you have land use maps that kind of conflict a little bit with each other. So then we're going to tighten that up,probably to the CDP one in those cases. So again, keeping it broad and general, not down to a lot of the specifics. I don't want to have a specific plan. I want a General Plan that's dynamic and operable that will then make sense and understand as we do the CDP revisions that those revisions don't mean we have to now do major revisions to the General Plan, because we're uplifting various policies. Certain things just, they're no-brainers. CHR KIERKIEWICZ: Great. Thanks for the explanation. And then, I remember you mentioning something about infrastructure. Just want to make sure that we are also taking a look at how we can better integrate or better plan around our CIP (Capital Improvement Projects Budget)priorities list and that budgeting, as it relates to the General Plan. Page 11 PC-19 February 8,2022 MR. KERN: Correct. And in an ideal world, the General Plan would point to those priorities borrowing some type of emergency or something that we didn't see. And that's the goal and the hope which is why I'm working to getting the other departments to come in on it and weigh in. So there's more buy-in, you know what I mean, from those departments. And ideally that would set forward, "Here's our priorities,"which would then come back to the CIP. CHR KIERKIEWICZ: Great. Thanks for your time and the update on this. Council Member Lee Loy, I didn't see your light. Go ahead. MS. LEE LOY: Yeah, I'll make it quick. Because Ms. Kierkiewicz triggered something. You know, kind of a retooling of Chapter 25 and 23. However,just food for thought, Director. Chapter 16, which is the hierarchy of all of our plans, really needs some refining also. Because we have the General Plan, and then the Community Development Plans, along with our regional plans. And we don't kind of see that structure in the current chapter. So I just wanted to put it out there just as thought as we begin to develop a lot of these refinements. It's just that, there's a lot of sections of our County Code that have not been touched for a long time. And if we really want to start addressing the needs of our community, we have to refresh some of these old and archaic codes at the same time. You don't have to respond. MR. KERN: I agree and I appreciate it, and I'll get into it. MS. LEE LOY: Yeah, great. Thank you, Chair. CHR KIERKIEWICZ: Thanks for elevating that. I know some of these Codes are older than me. Anyway, there is a motion on the floor to close file on Communication 485. All in favor please say "aye." Vote on Comm. 485: The motion to close file on Comm. 485 was carried by Filed the following voice vote: Ayes: Committee Members David, Inaba, Kaneali`i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz—8. Noes: None. Absent: Committee Members Chung— 1. Excused: None. CHR KIERKIEWICZ: Mr. Clerk, we are going to move on to Bills for Ordinances, and we're going to take things out of order. Let's start with Bill 113, please. Page 12 PC-19 February 8,2022 Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following item was taken out of order: BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 113: AMENDS SECTION 25-8-26 (PAHOA ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING) OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM SINGLE—FAMILY RESIDENTIAL— 10,000 SQUARE FEET (RS-10) TO VILLAGE COMMERCIAL—20,000 SQUARE FEET (CV-20) AT WAIAKAHIULA, PUNA, HAWAII, COVERED BY TAX MAP KEY: 1-5-003:037 (Applicant: Aguinaldo 4, LLC) (Area: 1.545 acres) The Windward Planning Commission forwards its favorable recommendation for this change of zone, which would allow the applicant to temporarily use three existing structures for commercial purposes, and then remove the three existing structures and construct a 13,520 square foot mixed-use medical, retail, and office complex with associated infrastructure. The property is located at 15-3070 Pahoa- Kapoho Road, on the southeast corner intersecting with Pahoa-Kalapana Road across Pahoa High School at Kahiahiku Homesteads in Puna. Reference: Comm. 596 Intr. by: Ms. Villegas (B/R) and Comm. 596.1: From Planning Director Zendo Kern, dated February 1, 2022, transmitting the draft transcripts from the Windward Planning Commission's January 6, 2022, meeting. Motion to Approve: Ms. Villegas moved to recommend passage of Bill 113 on first reading. Seconded by Ms. Lee Loy. CHR KIERKIEWICZ: I'm going to disclose that I am a distant relative of the applicant, so will be recusing myself from the discussion and subsequent vote. Let the record reflect that I am now transferring the Chair of Planning Committee for Bill 113 to my Vice Chair, Rebecca Villegas. Relinquish Chair: At this time the Chair relinquished the chair to Vice Chair Villegas. ACTING CHR. VILLEGAS: With that, I would like to invite Mr. Fuke and his associate. Page 13 PC-19 February 8,2022 (Note: At this time, Planning Consultants Sidney Fuke and Daryn Arai came forward to address the members of the Committee.) MR. FUKE: Good afternoon, Madam Chair. My name is Sidney Fuke. I'm the Planning Consultant. You all know Daryn Arai. And actually, the reason why we're here as opposed to the applicant. The applicant is Gilbert Aguinaldo, and as you know, he sits on the Planning Commission. So out of an abundance of ethical caution, he decided to say, "I'll stay away, you guys handle it." And that's the reason why he's not here. But anyway, as your Deputy Clerk pointed out, the property is an acre and a half. It sits on the corner of the Kapoho-Pahoa Road and Kalapana Road,just directly across of the Pahoa High School. It's, you know, he had a use permit for a medical facility back in 2013. Then we all know the history of the lower Puna area, 2014 and 2018 lava flows. So that basically affected his whole timetable. Then 2019 came about, and he said like, "Well, I got this property; I got this use permit." So he wanted to do something for the community. So he constructed several of these structures. Calls it the so-called "community hub." And during the recuperation period from the lava flow, then you know, those facilities were used. However, in this point in time, the use permit limits it only to medical related. And so for him to be able to have greater use of the property for the community, and perhaps implement some of the things that the Kilauea Recovery and Resiliency Plan called for, the thought was to have the property rezoned to Village Commercial-20, and in so being able to all of the things he wants to do for the community. And all of the basic infrastructure is in there, like in terms of water, the wastewater system. It's not in the flood zone, no archaeological lesions or whatever have you. So essentially the property is very clean in terms for being able to develop. The Planning Commission reviewed and recommended favorably in the application, and we're fortunate to also note that there were no objections from the neighbors or the community. So with that, Madam Chair, Mr. Arai and I are more than happy to answer questions. ACTING CHR. VILLEGAS: Thank you so much. Just for my own clarification, is this also the same piece of property that was potentially going to be purchased by the County for the bus hub? MR. FUKE: Yes, correct. Page 14 PC-19 February 8,2022 ACTING CHR. VILLEGAS: Okay, great. Thank you for clarifying that and for sharing. And with that, I'll open up to any questions from my colleagues. Ms. Lee Loy. MS. LEE LOY: Thank you. Just a couple of questions, real quick. We usually start with terms of conditions of approval, and just kind of acknowledging that the applicant has read the terms and conditions of approval, and accepts and acknowledges as outlined in Bill 113. MR. FUKE: Yes, he reviewed it. Well, both Mr. Arai and myself, reviewed the conditions, and he found them acceptable. MS. LEE LOY: Okay. Thank you for that. I kind of want to dig into Condition F. And I just want to be able to set any applicant up for success. And in part, because these structures were developed under a different permit. And now with that, we're moving this into a Commercial zoning, kind of ensuring that the structures can actually go ahead and secure an after-the-fact permit with the structures, and/or has the ability to rehabilitate them to meet the structural requirements as required under the Commercial zoning. MR. FUKE: I will let Mr. Arai answer that. Otherwise, Mr. Aguinaldo will probably scold him for not doing his part. So go ahead, Daryn. MR. ARAI: Good afternoon, Chair Villegas and members of the Committee. Council Member Lee Loy, my recollection is that we provided the Planning Department with records that demonstrated that all three structures obtained building permits and were able to secure a certificate of occupancy as a cultural center. I think that was the original term that it was approved under. That's Commercial. So you're correct in that transitioning to Commercial shouldn't hopefully be a problem. But ultimately, it comes down to the specific type of uses being contemplated. And there may have to be some improvements or renovations or something that is needed. But that is on the applicant to then demonstrate that what type of additional approvals or reviews that would be necessary. And he's willing to abide by that. MS. LEE LOY: Great. Which leads me into the parking requirements through plan approval. And so, the applicant—like I said, I'm trying to set him up for success. And we kind of go down this path. And I see the struggles when we have existing facilities, and then we have to augment a little bit to meet commercial requirements, ADA (Americans with Disabilities Act) compliance, parking, loading. And I want to be clear that he understands that element kind of moving forward. Page 15 PC-19 February 8,2022 MR. ARAI: Yes. He is aware of it. You may also see in your records that he has plans up for just simply the use of the three existing, but also hopefully, the future. And it does include paving of the entire area. Now, one thing that may need to be looked at is that because some of the uses were established during when the emergency proclamation was in place, there may have been certain exceptions, including things like paved access driveway and paved parking area. If he wishes to now use facilities in the absence of that proclamation, he would have to bring at least—for example, the parking up to code. But our understanding is, he did have plans prepared. And he actually went ahead and actually installed drywells in anticipation of those improvements. And those drywells were approved. MS. LEE LOY: And building off of that, because some of the structures have already secured certificate of occupancy, there's other elements in the conditions of approval that require securing access through the Department of Transportation prior to certificate of occupancy. So I'm just kind of—am I misreading that? That's Condition L. MR. FUKE: No. The way that his access will come off of a County road, fortunately, yeah. That's outlined, I think, in Condition L Condition 8 expressly prohibits access off of the State highway. MS. LEE LOY: Thanks for clarifying that, Sidney. And then N, which is, "The drainage study shall be prepared by a licensed civil engineer prior to final plan approval." And again, there's existing structures, so is this final plan approval when we add new structures or in compliance with zoning? MR. FUKE: He would have to submit plan approval for any use on the property. And then in conjunction with the application process, a site drainage plan approved by DPW, as you well aware, it has to be submitted as part of that application. He's totally aware of that, yes. MS. LEE LOY: Great. Thank you for helping me walk through that. Like I said on the face it seems like it's real plug and play, but there's actually a lot more work to be done to satisfy the conditions of approval for the project. Thank you for your answers. Chair, I yield. ACTING CHR. VILLEGAS: Great. Thank you, Council Woman Lee Loy. Any questions from anyone else? No? And with that, we will call for the vote. All those in favor? Page 16 PC-19 February 8,2022 Vote on Bill 113: The motion to recommend passage of Bill 113 on first (Approved) reading was carried by the following voice vote. Ayes: Committee Members David, Kaneali`i-Kleinfelder, Kimball, Lee Loy, Richards, and Acting Chair Villegas —6. Noes: None. Absent: Council Members Chung and Inaba—2. Excused: Council Member Kierkiewicz— 1. Relinquish Chair: At this time the Vice Chair relinquished the chair to Chair Kierkiewicz. MR. FUKE: Thank you very much, interim Chair. CHR KIERKIEWICZ: Mahalo nui, Vice Chair. Let the record reflect that I am assuming Chair of the Planning Committee at 3:30 p.m. Mr. Clerk, we are ready to rock-n-roll with the last remaining items on our agenda. If you could please begin with Bill 112. Bill 112: AMENDS SECTION 25-8-13 (PUAKO-`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 (Applicant: Waikoloa Land Company) (Area: 45.932 acres) The Leeward Planning Commission forwards its favorable recommendation for this change of zone, which would allow the applicant to develop "Area A" of the proposed Kumu Hou project, to consist of up to 264 multi-family residential units, up to 25 sing family residential lots, and 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, `Anaeho`omalu and Waikoloa. Reference: Comm. 595 Intr. by: Ms. Kierkiewicz (B/R) and Page 17 PC-19 February 8,2022 Comm. 595.1: From Planning Director Zendo Kern, dated January 20, 2022, transmitting the testimony and hearing transcripts from the Leeward Planning Commission's November 18, 2021, meeting and the draft testimony and draft hearing transcripts from the December 16, 2021, meeting. ; and Comm. 595.2: From Council Member Ashley L. Kierkiewicz, dated January 28, 2022, transmitting supplemental materials for Bills 112 and 115. (Note: Comm. 595.3, from Planning Consultant Sidney Fuke dated February 3, 2022, transmitting maps and renditions of the Kumu Hou at Waikoloa Project, was circulated.) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 112 on first reading. Seconded by Mr. Richards. CHR KIERKIEWICZ: And just to kind of set the tone for today's discussion, there are two bills related to this project. So, I'm going to allow for Council Members to kind of speak on the project globally rather than separating out the issues based on what's written in the ordinances. So with that, I'd like to call the lead representative for the projects forward, Mr. Fuke. And if you could do me the honor or introducing all members of the team that are participating here in chambers. And do let us know if anybody is Zooming in. MR. BROWN: Excuse me, Chair, do you mind if we have one minute just to get the presentation material up on the screen. CHR KIERKIEWICZ: Would you like me to call a recess? MR. BROWN: Yes,just for a minute, please. Thank you. Recess: At 5:22 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 5:31 p.m. CHR KIERKIEWICZ: Thank you, calling this meeting back in session. Mr. Fuke. (Note: At this time, Planning Consultant Sidney Fuke came forward to address the members of the Committee.) MR. FUKE: Okay, Hi again, Sidney Fuke,just for the record. At any rate, I'd like to just, you know, based on the public testimony you've heard today as well as all of the written testimonies that we've also kind of reviewed, it's kind of clear this sizable project, it touches the lives of not only people who live in Page 18 PC-19 February 8,2022 Waikoloa or even the districts of South and North Kohala or South and North Kona, but really like the entire island. It directly touches people who go there to recreate; whether it's to golf, go to the beach, walk the trails or doing their, I think, affordable "staycation." It touches people who provide goods and services to support the resort. And it touches people, especially as you heard today, for those who commute regularly from all parts of the island to work there. It also indirectly touches people in the form of the amount of tax revenue generated, be it real property or TAT (Transient Accommodation Tax), that goes into the County's coffers and help support the fiscal needs of the entire County. Thus, because of the breadth of this project, rather than doing a solo presentation, as I did like the last one, with Mr. Arai's help of course, I'd thought it be best to have it shared with others. And so, what we have is we have first of all, Mr. John Plunkett, who's sitting to my left. He's Vice President of Waikoloa Land and the master developer of the resort, who will briefly cover the reasons why they're doing this repurposing of this area. He will then be followed by Ms. Ann Bouslag, who works with PBR Hawaii, the principal planning firm that did basically the revised master plan, who will talk about the project, its impact, and the regulatory compliance. She will then be followed by Stanford Carr, sitting over here, the plan developer of the island's first workforce housing project within a resort. And finally, Ms. Cary Boeddeker, she's also over here. She's the daughter and the founder of the original developer of the resort, Ron Boeddeker. And she'll talk about the Waikoloa Foundation. So I'm sure that along the way, you'll have a lot of questions, so feel free to ask them as they do their own presentation. And with that, I'm stepping back and turning it over to Mr. Plunkett. (Note: At this time, Mr. John Plunkett, Vice President of Waikoloa Land Company, came forward to address the members of the Committee.) MR. PLUNKETT: Good afternoon, my name is John Plunkett, and I am here as the owner's representative for Waikoloa Land Company. And we do appreciate you having us here today. I'm going to keep my remarks very brief. Waikoloa Land Company has been in business for over 40 years on the Hawaii Island with essentially the same ownerships since we started. Waikoloa supports over 5,000 local jobs as well as very important public infrastructure, such as the roads, water, trails, beaches, beach access, public access, at no expense to residents. Much of Waikoloa's long-term success, I believe is attributed to the fact that we prioritize being an all-inclusive community. Kama`aina and visitors alike enjoy Page 19 PC-19 February 8,2022 our activities and offerings. And the visitors that we host while high-spending aren't the ultra-high net-worth individuals that you find in many of the other resorts, they're working families just like us. Through Kumu Hou, Waikoloa Land is fulfilling the legacy vision for our residents for the land and culture that makes this place special, for the resorts and businesses providing benefits for our community's future. Please be assured that prior to lifting a pencil to plan this project in earnest, we started considering how we could give back to this community in a number of ways, the community that's embraced us in so many ways over the years. And this will include the additional workforce housing and a significant endowment to the Waikoloa Foundation which will be discussed more in detail by others. Our planning efforts began in earnest after first seeking and incorporating community input. On the front end we instructed our planners to design a project that would stay well under existing plan densities, to be sustainable, and to respect both culture and environment. Reduction of our golf experience from 36 to 27 holes better adapts our golf course experience for market demand while allowing to repurpose nine holes for a development that will support Hawaii Island's sustainable tourism future. We recognize the critical need to keep more visitors within the resort quarters to reduce impact on the community as a whole. Our principal planner, Ann Bouslag of PBR Hawaii, will share more about our efforts to achieve this more desirable balance. Furthermore, as you know, we've committed to develop workforce housing within the boundaries of our resort over and above the affordable housing requirement that has been previously fulfilled by Waikoloa. This is a commitment inspired by our founders as well as the late Mayor Billy Kenoi, whom we engaged with early on in this project. We believe in an inherent responsibility to support those that are employed in our area, and we want our efforts to improve conditions for working families in generations to come. Mayor Billy's support during the early conception of Kumu Hou led us to re-engage with Stanford Carr, who is a developer and doner in our project. You'll hear more from him today on the development of the affordable housing within Waikoloa Resort and for island residents. Page 20 PC-19 February 8,2022 The last thing I wanted to touch on before concluding is our endowment to the Waikoloa Foundation, Cary Boeddeker is the president of this foundation, and is the daughter of our founder, Ron Boeddeker. And she will be discussing this. Through the development of Kumu Hou, Waikoloa Land Company is investing a portion of each timeshare sale from Kumu Hou to a funded endowment for the Waikoloa Foundation that will generate up to $50 million to go into the community. As has been the case since Waikoloa's inception, we remain deeply devoted to contributing to our community and a better future for our residents in the region. Mahalo again for your time. It's been a pleasure to share about this project. I look forward to answering any of your questions following some remarks by my colleagues. I truly hope that you'll find that this project is a model for future projects in the Hawaiian Islands as the way it should be done. At this point, I'll be turning this over to Ann Bouslag, our primary consultant, to discuss many more of the details for Kumu Hou, unless you have any specific questions for me at this point. CHR KIERKIEWICZ: Thank you for your presentation. We'll do questions at the end. MR. PLUNKETT: Okay. Thank you. CHR KIERKIEWICZ: Thank you. (Note: At this time, PBR Hawaii Project Director Ann Bouslag came forward to address the members of the Committee.) MS. BOUSLAG: My name is Ann Bouslag, I'm a project director at PBR Hawaii in Honolulu. Good afternoon, Planning Committee Chair Kierkiewicz and other members of the Committee. As Mr. Plunkett noted, Waikoloa Land Company envisioned Kumu Hou as a refreshed and more sustainable place. Together, we also saw opportunities to enhance the setback from Queen Ka`ahumanu Highway to improve public access to the resort, to update some of the aging common area infrastructure; to attract new investment and jobs to the island as well as to the State. And yet, still maintain a first-class 27-hole golf experience at the resort for the foreseeable future. As planners, PBR was really excited to join the team to help implement these visions. And we do feel that the outcomes have met these terrific goals. I'd like to walk you through some of the highlights of that right now. Page 21 PC-19 February 8,2022 First of all, you've been looking at a map of the existing conditions of Kumu Hou. As you know, it's located in the South Kohala district. This entire area has long been designated for over 50 years as a center of employment for this part of the island and for resort development. The first land use approval it received was in 1968 when it got a State Land Use Commission redesignation. So it's been a long-term plan and idea that this area should be a resort and a center of employment. Waikoloa Beach Resort has organized around two very important environmental and cultural features, and that is the King's Trail,which is here (referring to map being displayed on the projector screen, see Comm. 595.3). It cuts the resort into two parts, about 500 acres in the makai area and 850 acres in the mauka area. The other organizing factor is a very large setback from Queen Ka`ahumanu Highway. The agreement is this would average 800 feet and altogether it's over 126 acres that will be preserved in perpetuity to honor and preserve the beauty of the natural lava in that area and the long vistas that allows. Kumu Hou will be developed entirely mauka of the King's Trail, and it entails no change whatsoever to the boundaries of the 800-foot setback from Queen Ka`ahumanu Highway. Most of the areas you can see here looking at this map, is already developed for golf course, in both these areas. And the areas that aren't have been already planned and entitled for residential use and/or are set aside as dense pahoehoe or `a`a lava areas. Also shown on this map by the way is the location of the affordable housing project that Mr. Carr will be talking about in a little while. Let me go to the next map. Let me show you what adaptations we made to the current plan. First of all, let me explain here that the existing entitled areas would have allowed or do allow residential development in these areas, which hug the setback area and 87 units in this area, as well as in these areas back here, what we call JI, J2 and L2. The new plan for this, we took the 120 units that were planned alongside the setback area and relocated them instead, to be alongside units that were already planned in what we call Area A. This allows a greater setback from the Queen Ka`ahumanu Highway, because with a deeper sight here we can set the buildings further back so visually it will look like a much more open area rather than having buildings hugging the boundary there. We also added some single-family lots up in Area A, which will be accessed from the `Ainamalu community. This area, Area A, is addressed by Bill 112 with RM (Multi-Family Residential), RS (Single-Family Residential), and Open zoning requests. In Area B, which is this area our Kumu Hou, we added new timeshare units, a new and relocated clubhouse in this area, and a new driving range in this Page 22 PC-19 February 8,2022 area. We also eliminated development on the 12-acre parcel, which is now entitled for 87 units in this area. The plan offers better connectivity within the resort by bringing some traffic along Ala Ihi Way and creating walking paths along here by allowing traffic to be distributed from the two ends of Waikoloa Beach Drive. It also, we think, will encourage the distribution of traffic between the two intersections to Waikoloa Beach Resort along Queen Ka`ahumanu Highway, here and here. Also in Area B, we found a site down here for a three-acre new public park and paths. These paths will link Area B to Waikoloa Beach Drive, coming back up here, and to the west, to the Queen's Marketplace, and along to existing paths and routes that lead down to the shoreline. Waikoloa Land Company sees these areas as public parks and expects them to be used by kama`aina as well as by visitors to the area and hopes that they will become well used public spaces. To support the public uses we created public parking spaces, we created a children's play area, and are proposing a comfort station. So this is a preliminary plan for these two park areas leading down with a trail here, crossing the street, and going into this area here that would lead on down towards the west. We also left quite a few areas un-programmed, as you can see here. Our hope is that these areas become areas that families will enjoy playing in, where a mother and her son can play Frisbee, where a local hula halau one day may practice; where visitors can sit and read, where there could be yoga classes, tai-chi classes; a place to have a quiet conversation or just to rest. Just about anything you could imagine. We do hope that it will be used and enjoyed by the public as well as visitors. The parks and paths here, like other infrastructure within the resort, will be entirely maintained, developed, and paid for by the resort with no cost whatsoever to public funding. In our time with the late Mayor Billy Kenoi, we learned that public parks were another passion of his. And so I can tell you that this entire team is really excited to provide this contribution to the community. So given the various diverse types of uses we described in Area B, this is why Area B is proposed for Project District zoning that offers a little bit more flexibility. And that is the area that is addressed by Bill 115. All developments I've described to you today are consistent with existing developments including the State Land Use Commission, the County General Plan, the South Kohala Development Plan, and the new SMA (Special Management Area) that was assigned and approved for this project by the Leeward Planning Commission very recently along with its related conditions. But notably with Kumu Hou the resorts ultimate buildout will be substantially less than it's currently entitled. This is an ariel view taken from near the park areas looking out towards Queen Ka`ahumanu Highway. And I show this to you because we asked our renderer to Page 23 PC-19 February 8,2022 prepare a view of what an area of the resort might look like. And we're excited that we were able to achieve 69 percent of the Kumu Hou footprint as open to the sky. This includes great areas of natural lava, re-naturalized lava, some landscaped areas, parks, pads, sidewalks, and other spaces that would be open to the public. While there will be a little loss of some golf course fairways, I'd like to point out that these new public spaces will be truly public and not available only to paying golfers. Let me give you a little more technical information. In terms of historic resources, Dr. Allan Hahn of Hahn & Associates prepared an archaeological inventory study of the site in 2021. Much of the project area, as you saw earlier, has been previously disturbed or is covered by dense pahoehoe and `a`a lava. Dr. Hahn concluded that the project would not affect historic properties. Nonetheless, after consultation with the State Na Ala Hele Trail and Access Program and the National Park Service, he and Waikoloa Land Company agreed to a network of trail systems and other features that would be preserved onsite. The final draft AIS (Archaeological Inventory Survey) incorporating those plans was submitted for review to SHPD (State of Hawaii Historic Preservation Division) and approved by them in October 2021. In terms of infrastructure, traffic. Because the project buildout is expected to extend 20 years, Waikoloa Land Company agreed to prepare an updated traffic study that will be submitted to the Planning Department for review and approval prior to the issuance of the site plan approval for the 400'h unit in the Kumu Hou Project District. The traffic study itself saw very little impact on highway traffic due to this project with more of the future traffic coming from background noise than from this project. The applicant will also satisfy various traffic mitigations that have been outlined as Condition O of Bill 115. The Leeward Planning Commission also required that a north-south connector road can go back here be developed in this area to connect Waikoloa Beach Resort and Mauna Lani Resort. And the intent again is to provide some internal circulation one day between these resorts, again for the relieving traffic on the highway. In terms of sewer and fresh water, the water service in this area is to be provided and is provided by the private company Hawaii Water Service Company. And they have indicated that they are willing and able to provide water and sewer service to all of Kumu Hou. In terms of irrigation water, Area C here, is the location of a proposed new brackish water irrigation system for Kumu Hou. This hasn't been addressed in any of these bills. We did not request any change of zoning because none is required for the uses intended here. There's no vertical development. Simply two wells here, some transmission lines, and use of an existing resort golf lake. But Page 24 PC-19 February 8,2022 it's important to note that no fresh water will be used for irrigation anywhere in Kumu Hou. Instead, together with Kumu Hou's repurposing of nine fairways that will no longer require watering, and various landscape strategies to emphasize native and drought tolerant species as well as natural and re-naturalized lava and increase in available recycled water that Kumu Hou will bring, this new brackish water system will actually enable the resort to reduce its withdraws from the `Anaeho`omalu Aquifer. MS. VILLEGAS: Chair, may I ask a quick question? CHR KIERKIEWICZ: Absolutely, Vice Chair. Go ahead. MS. VILLEGAS: Hi. Just a quick request for the definition of re-naturalized lava. MS. BOUSLAG: Sure. Natural lava is MS. VILLEGAS: As it was from the source, yeah. MS. BOUSLAG: You can see more on the west side, of course, the wild lava as it was issued by Mauna Loa and our other beautiful mountains here. Re-naturalized lava is when a landscape architect, as there are many in my firm, uses some of the natural lava to create an area that may look like the natural lava but it's actually been touched. In some cases they may save a really outstanding piece of natural lava and do some limited plantings around it. But it's called re-naturalized. MS. VILLEGAS: Great. Thank you. I appreciate that. MS. BOUSLAG: Sure. Of course. Anything else? So we were just getting into economic and fiscal impacts, and I'm getting close to wrapping up here. Kumu Hou is a long-term project. We expect it to take until 2042 or so to buildout. It will generate significant employment and many benefits in those areas to the local community. And it will do so over time and gradually. In the first six years or so we expect development to be in the employment benefits to be concentrated in the development and planning areas with operational years'jobs generated over time once units start being occupiable. At completion and stabilization, employment will have transitioned to be all operational workers. And while we'd like to think of resort workers as the people you might see when you go into a hotel, the person who parks your car, the person who checks you in, the person who cleans the room, those are the direct jobs. The indirect and induced jobs are even more than the direct jobs. And that includes every single type of employment you can imagine in the state for an industry like tourism, which is quite diverse in its economic impacts. So that includes fisherman, farmers, small business owners, teachers, firemen, waiters and waitresses,just Page 25 PC-19 February 8,2022 about every occupation you can think of will be enhanced and supported by the new monies that Kumu Hou would bring into the community. In terms of fiscal impacts for the County, Kumu Hou is expected to generate $6 to $10 million dollars per year in net new taxes at buildout and every year thereafter. This is all in 2020 dollars, so of course that will increase over time. And I've provided a lot of technical information here. Today, we do have a number of our authors, of our technical studies who are standing by on Zoom. So I'd like to pause right now in case anybody has some questions. You can ask them later as well, but if you have any now we are happy to take them. CHR KIERKIEWICZ: We'll take questions at the end. Thank you. MS. BOUSLAG: Okay. Great. Then let me just say that although as you've heard before, Waikoloa Land Company has already fulfilled its affordable housing commitment through the donation of 300 acres of land for the Kamakoa Nui Project up in Waikoloa Village. Along with Kumu Hou, Waikoloa Land Company has elected to forego visitor-related development of a 25-acre zoned site within the resort, and to instead propose to set that aside for workforce housing to support Kumu Hou as well as the whole reagents hardworking employees. And to talk more about that I'm really happy to introduce Mr. Stanford Carr of Stanford Carr Development. (Note: At this time, Developer Stanford Carr came forward to address the members of the Committee.) MR. CARR: I'm honored to be here this afternoon and to collaborate with Waikoloa Land Company. We first collaborated with Waikoloa Land on a community neighborhood in Waikoloa Resort called the Colony at Waikoloa Villas back in 20011 believe. But I first invested in building neighborhoods and communities on this island first started in the Steve Yamashiro Administration back in 1998. We've been here now for 24 years and we look forward to the next 24 years. I really must commend the Waikoloa Development Land Company for embarking on creating workforce rentals within a resort community. This will actually mitigate commuting traffic for the workers of the resort and surrounding resorts. As you heard earlier testimony, some of the workers in the resort have been commuting for over 20-somewhat years, spending two to four hours a day each way, which is very taxing on their body as well as their quality of lifestyle with their family. So I really commend the resort for taking and setting a precedent here to build workforce housing to have a much more inclusive community. We are planning and have worked with Waikoloa Land Company and the resort to data-mine demographics of the workforce household income distribution so that Page 26 PC-19 February 8,2022 we can tailor a community that of mixed-income households that match up and correlate with the fabric of the workforce there at Waikoloa Resort and surrounding neighborhoods. So we are working towards that. We utilize a program called Internal Revenue Code Section 42, which is rental housing; low income housing tax credit program. And we augment that with a HUD (Housing and Urban Development) financing FHA (Federal Housing Administration) Program that allows us to utilize federal and state tax credits, tax exempt bond financing and obtain a 40-year bond loan, which is a fixed rate. We call it a HUD 221(d)(4) Ginnie Mae bond finance. And that allows us to reach deep affordability, and that translates to a single person, you know, making $18,000 a year, renting a one-bedroom apartment for $450 a month, including utilities. Up to 60 percent of the area median income, which translates to a family of four earning $51,360 a year, and paying $1,284 a month towards their household rent and utilities. So we're working on this program to provide a mixed-income community to serve the workforce to address the housing ladder from the very low income to low-moderate, to moderate, servicing also households that do not qualify for a tax credit rental but earn an excess of 60 percent of the area median income up to 120 percent. Again, we're catering it to the community based on the demographic data that we have gathered from surveys collaborating with the resort. You know, our company just to give you a little background, we've been in this business now for 32 years. Technically I've been in it for 34 years. We have over the years developed over 6,000 units on three counties, Oahu, Maui, and the Big Island. We have a wide range of disciplines of workforce rentals to entry-level for sale, both multi-family, single-family. We are also the master developer for Ka Makana. So we take our endeavors even further. It's not just to build neighborhoods in communities, but we also have a nonprofit that provides resources to enrich the residents that live in our rental communities who aspire to become homeowners and we offer them resources of financial literacy, homeownership counseling to assist them for those who aspire to become first-time home buyers. Up on the boards here is an illustrative of our interpretation of a contemporary plantation architecture that we envision creating a more resort-like setting in this rental community. We foresee amenities as a lot of open space, parks, swimming pool, recreation center for the community, as well as we're planning for a childcare facility to assist those that are busy working during the day. With that, I'll turn it over to you. (Note: At this time, Waikoloa Foundation President Cary Boeddeckker , President of Waikoloa Foundation, came forward to address the members of the Committee.) Page 27 PC-19 February 8,2022 MS. BODECKER: Okay. Thanks, Stanford. And good afternoon, Madam Chair. and members of the Council. As was previously stated, my name is Cary Boeddeckker, and I'm the President of the Waikoloa Foundation and the youngest daughter to the late Ron Boeddeckker, developer of Waikoloa Beach Resort. I am here today in support of the Kumu Hou timeshare development project. But before I share with you my thoughts on why this project is good for Hawaii Island I would like to tell you a little bit about myself. I'm the youngest daughter to Ronald and Kitty Boeddeckker and I began coming to Hawaii, and specifically Waikoloa, when I was 10 years old. As I watched my father develop what is today called the gathering place of the Kohala Coast, Waikoloa Beach Resort, as a young girl I would observe my father as he worked so hard to bring his vision for Waikoloa to life. In the early days I would admire how much he cared for the island and its traditions. But it was really over time that his fondness grew and ended up being a lasting love and connection with the culture, the land, and most especially, the people. Some of the greatest memories we have had as a family took place here on the Big Island. I too, have such a deep connection with Hawaii. My very first job was with Ocean Sports Hawaii and the Sea Smoke Catamaran during my summers break, it was a really fun job, too. It is where I too, fell in love with every aspect of Hawaii. And as a young adult I would make any excuse to be involved in Waikoloa, which led me to develop and produce the Waikoloa Nights Concert Series at the Queen's Bowl, which brought acts like Earth, Wind, and Fire, Chicago, Journey, and the Beach Boys, to name a few, to our beautiful island. My point to all of this is that I am invested here. I love everything about Hawaii. My `ohana is here and I'm committed to preserving and protecting these lands for generations to come through my role as the president of the Waikoloa Foundation. You may ask, why would the Waikoloa Foundation be in support of this development project, and I think it's been made abundantly clear today that as President of the foundation and a principal, I have convinced the partners of Waikoloa land to commit a portion of the gross sales proceeds from each timeshare unit back to the Waikoloa Foundation. As John stated earlier, this would equate to an astonishing $50 million over the course of this project. This unprecedented commitment from Waikoloa Land will be a covenant that commits the future project developer to continue upholding this lasting promise to the community. This monumental endowment will be used for many initiatives to help our community, not only within Waikoloa Beach Resort, but island-wide as well. With our newly appointed local advisory board's input, here are just a few of the early initiatives that we are very proud to announce if Kumu Hou is approved. The Page 28 PC-19 February 8,2022 Foundation will be a prime supporter of the Destination Management Action Plan or DMAP as you all know it, offering resources to help manage tourism in a very responsible and regenerative manner. We will continue the work within the resort to facilitate the preservation and the education of our precious cultural sites. We will work on the enhancement of parks within the community to help support the families that will come as a result of the new proposed workforce rental housing project tied to the Kumu Hou approval. We will work to assist and integrate the workforce community and their families in the greater Waikoloa community. I cannot think of a more worthy cause for the foundation than working hand-in-hand with the island's workforce and families and building a more vibrant and sustainable community that not only meets the needs of our visitors, but with this approval can now welcome the island workforce as residents to enjoy the same gathering place that we have become known for. This is the cornerstone in which my father built Waikoloa and which I will continue. One initiative that I am particularly excited about and have already started working on is the plan conversion of the Parker Ranch Recreation Building. I think Scott Dodd talked about it earlier, which is located near Lava Beach Club into the Waikoloa Discovery and Cultural Center. We are thrilled to transform this space back into the community hub it once was. Now with renewed purpose and service of the foundation's mission, we will provide it into perpetuity. The Parker Ranch Building will be the home of the Waikoloa Foundation, and will provide programming, education, and focus its efforts on the historic preservation of the rich cultural heritage at Waikoloa and the surrounding area. Through the creation of this project we are very proud to be a leader in what we believe to be a new sustainable and responsible development model that incorporates the social development, economic, conservation, cultural, and community into one project. It's not just building a building, but it's building a community. We are proud of our efforts to think outside the box and bring to you a comprehensive development package. Since 1977 my father worked hard to be a steward of these lands through the creation of Waikoloa Beach Resort, and I sincerely hope my legacy will be to steward the foundation which will care for the community, its people, and the organizations that perpetuate the foundation's vision, which is to safeguard the precious cultural and environmental attributes that make Hawaii unique. I am privileged to work hand-in-hand with my advisory board members who will guide our activities through their diverse experience and perspective as it relates to the needs of our local community. It's a privilege for our family to continue stewarding their legacy and honoring our responsibility here by dedicating our time, money, and resources to the Waikoloa Page 29 PC-19 February 8,2022 Foundation. The proposed funds from the Kumu Hou timeshare project of approximately $50 million will anchor our efforts in environmental and cultural stewardship for generations to come. I cannot express to you how excited I am about our future. And with your help we can ensure that our community continues to be vibrant, diverse, sustainable, and prosperous. Mahalo for your time today and I so appreciate your consideration for this important project for Hawaii Island. CHR KIERKIEWICZ: Thank you, Ms. Boeddeckker. Thank you, everyone, for your presentations. Mr. Fuke, does that conclude the presentation from the applicant? Great. Also noting the presence of our Planning Director here in chambers. I'm also told that Anne has some of her team available on Zoom if we have questions. I'm going to turn it over to my colleagues for any questions or comments they might have for the applicant. Who'd like to start? If not we will go to the vote. Ms. Kimball. MS. KIMBALL: Thank you, Chair. Thank you all for being here today and thank you for your patience as we went through other business of the day. First of all, I'd actually like to give a shout out to our Leeward Planning Commission. They had a heavy lift with this project. And as I was reading the minutes, thought that there were some very thoughtful questions, comments, and recommendations that came out of that. And I see that the applicant has adopted some of those recommendations. So just wanted to mahalo the commission for their service. You made a point, Sidney, of saying that you were not an expert in mathematics in the commission hearings. But I do want to do a run down, if I may, of all of the entitlement numbers one more time. If somebody wouldn't mind doing that for us today. MR. FUKE: And I still flunked math. So I'm going to refer to Ann Bouslag. MS. BOUSLAG: Let me give you what I think, and hope is a clear overview of them. As you may know, Waikoloa Beach Resort is now entitled for 6,365 units. That's 3,000 visitor units and 3,365 residential units. They were originally granted more than that, but they agreed many years ago, I'm not exactly sure why, but to reduce it to this total, which is now 6,365. MS. KIMBALL: Okay. And I'm going to interrupt you just to point of clarification as we go through this. What is the definition in this scenario of a visitor unit versus a residential unit? MS. BOUSLAG: That's a very good question, because when Waikoloa Beach Resort was originally planned I don't think people envisioned things like timeshare units or, you know, rental units within a condominium project. So originally the entitlements thought of hotels and residential units. There was an opinion by Chris Yuen, I forget the date Page 30 PC-19 February 8,2022 MR. FUKE: 2001, I think so. MS. BOUSLAG: Yeah, we can find you that date if you're interested. But Waikoloa Land Company requested a clarification of this some time ago and then Planning Director Yuen responded very thoughtfully, which has become the guiding principle for this. So now going forward, if you are a hotel you are clearly a visitor unit. If you are a timeshare unit that was developed on resort-zoned lands, it's considered a visitor unit. And even though some timeshare unitsa timeshare unit developed on residential-zoned land, such as an RM designation, would be considered a residential unit for purposes of monitoring this count. And, you know, there had to be some kind of parsing like that, because for instance you have hotels now that are gradually converting to timeshare units. So basically that's the difference now. And so the units in Area A, as we described it, are residential units. Those units were already approved and zoned on RM lands. And we do recognize that the new units proposed in Area B should be considered visitor units because this is new zoning. It was residentially zoned, but some of it was also Open zoned for the golf. So those are acknowledged now by our plan as visitor units. MS. KIMBALL: Can 1-just again, a breakdown of numbers of the plan development between Area A & B? MS. BOUSLAG: So Area A has 263 timeshare units and 25 single-family homes. Those are all residential units in Area A. And Area B has 900 timeshare units. Altogether, Kumu Hou brings 1,063 units. MS. KIMBALL: Could you please bring up the map of the area and just geo-locate me into the historical entitlements. And I'm not looking for a fun math problem here. What I'm wanting to do, and this actually came up in the commission a little bit, is to understand if the entitlement numbers have not yet been reached because of business decisions made by the developer not to develop at a certain density and so now we're actually converting open space to developable land in response to a business decision, and I'm just concerned that that sets a bad precedence because once open space is gone, open space is gone. So the heart of the question that I'm trying to answer is where were these entitlements located? I realize that we're shifting them around. But are we shifting them around in a way that's justifiable? Is it clear where I'm coming from with that angle? So if we can go to the map and just kind of locate where these different entitlements existed. MR. FUKE: Okay. The original approval was approved in 1977, I think, 1978. At that time the SMA law was already in place. And what the approval was for, it expressly stated that the Waikoloa Resort complex would include 3,000 hotel Page 31 PC-19 February 8,2022 rooms, 3,430 multi-family residential units, 2 golf courses, so on and so forth. That occurred back in 1977-1978. That's the original SMA. Then in 1991, there was an amendment to the existing SMA as well as the rezoning of that area mauka of the King's Trail. Because the projected density of 3,000 hotel rooms and 3,400 multiple-family units were all squished down on the makai side. Then in 1991 they said—well, Waikoloa then represented to say like, okay, we will still keep the 3,000-hotel room cap, but nevertheless the number of multiple- family residential units would be reduced by approximately—well, it would be reduced to 3,365 units. So that would be maybe about like a shade under 75-85 units less. But now the multiple-family units and hotel units would be spread across both the mauka and the makai side as opposed to all being squished on the makai side. So the owners were kind of like giving these guys direction essentially, to say, "We have to stay within the limit. We don't want to exceed it." So they, through their land planning efforts, understood like from the owner's standpoint they're going to have to relinquish—well, they wanted to abandon that nine-hole golf course. So how best to use that particular area and still maintain that semblance of open space that the golf course had provided. So I think Ann's presentation kind of showed basically the window, the open space-style window, whatever have you. But essentially to show that there has been really like not too significant of a loss in terms of open space. Also by design, the existing zoning would have had those structures right up to the 600-foot setback line from the Queen Ka`ahumanu Highway. Under this revised plan, it kind of gives an opportunity to kind of shift it further back and therefore to kind of create a little bit more breathing room so to speak. MS. KIMBALL: Thank you for that. I'm not so sure if my time is actually up or if the timer was running CHR KIERKIEWICZ: No, there was a malfunction. You have three minutes left. MS. KIMBALL: Thank you, Chair. Appreciate it. Okay, if we could again just take a look. If you can point out on the map, then to me where those existing entitlements from where we're looking at the revision. MS. BOUSLAG: So makai of the trail in this 500-acre area. There are 1,695 visitor units entitled, and 1,884 residential units entitled in this area. Mauka of the trail, which is all this area(referring to map displayed on the projector screen), including the `Ainamalu community going up here to the highway, there are 1,266 visitor units entitled and 1,367 residential units entitled. Page 32 PC-19 February 8,2022 Where I was headed originally though when started talking, before we started talking about where they go, what I did want to say is that the total entitlements as of now, and I'm not breaking out by mauka-makai, but it's 6,365 units. To date, there are 3,414 developed. So there are remaining entitlements for 2,951 units. The 1,188 units that are being proposed in this plan are a portion of that nearly 3,000 units. And it is the resort developer's job to live within those entitlements. And they will do that. They will manage that one way or another. And I think your question of why slowly, the units get built to the market. I think someone mentioned earlier, there have been a number of disruptions to the economy, so development of all kinds has been slowed. Units will get built when projects can be financed and there's sufficient demand. MS. KIMBALL: Great, thank you. So the million-dollar question there, and maybe this is a question for our Planning Director and Corp. Counsel, so we're back at conversing, so make you hear my questions. So you have these extra entitlements, then that are not going to be absorbs through this project, and I would like clarity today on what happens. Do those just go away forever? Or is there a chance that the company comes back to us and says, "Oh, we've still got more entitlements and we want to expand further." So once these two rezoning ordinances, should they go through and they the SMA is associated, are those extra entitlements above what is being proposed, are those gone, or are those still usable at some point? MR. FUKE: They're actually capped. And again if you would trust my numbers—and I don't really trust my numbers but based on the calculations and I was kind of looking at all of the different spreadsheets. But it amounts to at the end of the day you would have like 405 less visitor units than was originally planned, which was the total allocation of 3,000. And in terms of what was approved by the SMA of 3,365 units, it would be like, with this Kumu Hou project, you'd amount to like less density of 114 residential units. So a total net, if you're looking at overall density, between multiple-family and the visitor units, you're talking about an overall less density of 519 units. This is all kind of like related not so much on the zoning, but it's reflected in the SMA permit. MS. BOUSLAG: And that does account for the planned development of some areas that are now vacant. You know, we've been talking about 140 units here at this site. `Ainamalu as you know is entitled and will build out. So these are projects that don't require rezoning. They're planned, they're entitled; they're in process. Page 33 PC-19 February 8,2022 MS. KIMBALL: Thank you for that. I still don't fully—like my question was answered is answered. So we have 500 and some that are not going to be utilized yes? MR. FUKE: In terms of the overall total density of the resort as well as multiple-family residential, my count has it at 519. MS. KIMBALL: Okay. That's what my count says, too. Our math might not be that bad after all. But my question remains, and Mr. Dodd is it? CHR KIERKIEWICZ: Mr. Plunkett. MS. KIMBALL: Sorry. Mr. Plunkett, apologies. Maybe you understand my question here? MR. PLUNKETT: Maybe this math can get confusing. What Mr. Fuke was alluding to is that after you account for projects that have not been developed yet based upon entitlements that they have currently, we haven't reduced that. But if you as developed to their full entitlement on those specific vacant sites, we would still be under by 519 units. So I could point out a couple of examples if that would help. MS. KIMBALL: No, I think the question is being interpreted more complexly than I'm intending it— MS. tMS. BOUSLAG: (Inaudible) . . . if Kumu Hou is approved, would we come back to seek the additional entitlements that we are entitled to for the rest of the project; and the answer is, maybe. MR. PLUNKETT: Well maybe, but we don't really have any additional land. MS. BOUSLAG: We don't know. MR. PLUNKETT: So all of the projects that have been planned and sold have an entitlement that we've agreed to as a master declarant, and we've come up 519 as a deficit. So I can't say that we wouldn't come in to try to take it up to the entitlement at some point, but I don't see it. And again, I could point you to some specific examples as to why. MS. KIMBALL: Okay. The reason I'm asking is, this is probably the pivot point for me. And why I'm drilling down on this so deeply is that I don't want to see this migration of, "Okay, here we want to take out another nine holes of the golf course, and now we have these entitlements for 400 and some units. I'm trying to really clearly understand with these two ordinances and the associated SMAS going back to the very original entitlements, do we now step back and say that Page 34 PC-19 February 8,2022 we've met the limit of the entitlements or are they still out there. That's the questions. And I feel like I'm getting an answer that they are, and you may come back, we're not certain. MR. PLUNKETT: On the remaining nine holes of the King's Course, we're repurposing nine holes of 18. On the remaining nine holes of the King's Course our agreement with Hilton Grand Vacations because—we're not bogging you down with all that—but we've agreed to operate a 27-hole golf course for at least 15 years. So there's no plan to take that nine holes out. And frankly, that was all involved in a land swap with Hilton Grand Vacations to protect their views for their existing timeshare customers. So that won't be happening. The beach course is under a long-term golf play agreement with the Hilton Waikoloa Village. It will continue forever. We don't really have any additional land. This is really our last significant project that we will be doing. MR. FUKE: You know, I think there are some properties that were underdeveloped in terms of relative to zoning. So hypothetically if you had a property that could conceivably yield mathematically 150 multiple-family units and the developer chose to do only 100, well that's that. But if there are properties that are within that zoned area and they want to do like a tear down every build, then conceivably it could go up to like 150. I hear what you're saying, and I think that the numbers right now are not really you know, we have internal numbers, and the numbers I just shared with you are kind of like internal numbers. There is some question as far as like whether the Planning Department has those numbers to be able to monitor. Because the SMA makes clear what your density cap is, but I think the only way that the department would be in a position to address that is that if they have a numbering system such that if and when a project comes in for plan approval, they can measure the additional density relative to what was allowed. So as a possibility, you know, something that—and I might get scolding after this but something that the Council may want to consider is maybe like a condition calling for such a monitoring system and such ain the ordinance so that it become clear whether the initial numbers are developed by the applicant or whomever. And it'll help the Planning Department and kind of like make us feel like we're being honorable in terms of what we're representing in terms of what the numbers are. MS. KIMBALL: Thank you, Mr. Fuke, for that suggestion. I think that's an excellent suggestion. And you know, I'm just trying to make it easier for the people that are in these 20 years from now, looking and going, "What entitlements were there?" and "Who did what?" and make sure that we have some real clarity Page 35 PC-19 February 8,2022 around that. I'm going to yield for now, Chair. I have a couple more questions, but I want to open questioning for other folks. CHR KIERKIEWICZ: Council Member Kimball, do you feel your question was answered satisfactorily? MS. KIMBALL: Yes, I do. Thank you, Chai. CHR KIERKIEWICZ: Thank you. I see your light on, Ms. Lee Loy. Go ahead, you have the floor. MS. LEE LOY: Yeah, and thank you, Ms. Kimball for that questioning. Because that's actually where I was at. We have a State Land Use boundary amendment, we have old SMAS, and now new SMAS; and Sid,you know me, right? I just want to get to that number and provide assurances to the community that this entitlement process is set and then capped by the SMA. And later on what will not happen is moving these units around to be above or below to SMA line. So I really do think, Sid, if we could work towards something like that, where we could identify the units and ensure back to community 10, 15, 20 years from now, because one thing I noticed in the conditions of approval is we don't have a timeline. And I understand why. This is a long-term project. And the only thing that's afforded back to community is an annual progress report. So I, too, am challenged that as we make the decision here, how do we hold the Boeddekkers and this entire community accountable. So if you don't mind, I would love to work on crafting some of that. The other question I had was around the 25 residential units and then our affordable housing units. And maybe this is for you, Sid, or for you, Stan. Because I don't see any language about keeping these in affordables in perpetuity. But Stanford, I'm guessing because of the way we stack the money, it actually becomes inherent that these rental units and/or residential units stay at this 40 or 60 percent AMI (Average Median Income). MR. PLUNKETT: I'm going to let Stanford answer that. He's the expert in that. MR. CARR: So tax credits and bond allocation as well as rental housing revolving funds, which is the necessary gap financing for these types of projects, are allocated by a competitive basis, by a point system through the Hawaii Housing Finance Development Corporation (HHFDC). We typically commit to keep these affordable for 65 years. You'll never see an in perpetuity. It's just not condoned from a federal level as well. We're dealing with tax credits, bond investors and so forth. But I will say that we have in the past and continue and will do the same here, is commit to a 65-year term of affordability. Page 36 PC-19 February 8,2022 We enter into a regulatory agreement that's recorded against the land. And so it runs with the land. MS. LEE LOY: So that was my other part. Could we do it by deed restrictions. But what I hear you saying is because it's going to be recorded, that actually is the safeguard that this stays affordable at that AMI price point for the 65 years. MR. CARR: Correct. In fact there's annual audits by a third part that's contracted by HHFDC for compliance. These programs are very strict. I will say that I'm personally liable for the tax recapture if there is any unit that is not compliant. So that's why the gene pool is pretty small as to the amount of companies that will take on these types of endeavors, because they're pretty sophisticated financing structure that have a considerable amount of exposure if you don't do things properly. MS. LEE LOY: Great. Then I had a question, and I'm not sure if this is for Ann or for Sidney. The conditions of approval mention a traffic update prior to the 400-unit. MR. PLUNKETT: It was a Planning Commission requirement that we provide that. Is that the simple answer for that? MS. BOUSLAG: Very good. MS. LEE LOY: Yeah. And these are the timeshare units, or ? MS. BOUSLAG: Four hundred unit in Area B, so in what's called the Kumu Hou Project District if it receives Project District Zoning. MS. LEE LOY: Then I had some questions just around some sustainability models. Right? We heard earlier today about, you know,just our entire energy grid, and I was just wondering if there was some element, lead certified element, solar,just some of the things that would keep the cost of electric bills down, being planned, or at least thought of in this project. And I'm sorry, I think I missed a little bit of the front end, but I just I didn't hear that in the presentation. MS. BOUSLAG: Well, in the SMA and change of zone application, there was a report on sustainability with suggested metrics for that. So yes, they've been thought about; and yes, there's an intent to embrace many sustainability measures that seek to protect the land, the water, culture, the air, and so on. MS. LEE LOY: And this is my final question. And this is actually for Ms. Boeddekker. You mentioned the endowment of$50 million, but I kept hearing you repeat"up to" $50 million. I was just wondering if that's a cap or is it kind of you'll spend up to $50 million and then it goes down? Page 37 PC-19 February 8,2022 MS. BOEDDEKKER: No, it's actually a calculation based on two percent of the gross sales price. So today, they don't know exactly what the sales price is. So we can't necessarily commit to a specific number, but it's two percent. MR. PLUNKETT: What we did was we had the economic impact study which estimated timeshare valuations throughout the course of the project in today's dollars. So that two percent was calculated based on a sellout of the project in today's dollars. And that's what 1-1 hope it will be substantially more. So I'm careful with that number. It was a calculation, but it was based upon a calculation from numbers that we got from a third parry, not something that we as the developer came up with. MS. LEE LOY: Great. Thank you for answering my questions, and Stanford knows this as does Sidney. I used to work for Mr. Yamashiro, and so to have the honor and privilege to sit in this chair after watching him go through the process of a lot of entitlements for this particular side of our island, I actually not only find it an honor, but I actually am pushing harder because of what Mr. Yamashiro, along with Mr. Schutte and Taka Domingo taught me about what it takes to sit in this chair. So thank you for being very forthright with your answers. I'm not sure if Ann knows this, but I actually worked for PBR Hawaii. So reading through this was very exciting for me but integrating conditions of approval to hold this project accountable to the goals and missions that they promised is where I'm coming from. So thank you everyone so much for being here. Chair, I yield. CHR KIERKIEWICZ: Thank you, Ms. Lee Loy. Anyone else? Mr. Inaba. MR. INABA: Thank you. Good afternoon, almost evening at this point. Being that the proposed project is in my district, I wanted to see what kind of data we have indicating the need for these additional timeshare units in this resort area, or in West Hawaii in general. MR. PLUNKET: Scott, do you want to work on that one? This is Scott Head. He's our Vice President of Operations. Our primary manager on the ground. (Note: At this time, Scott Head, Vice President of Operations at Waikoloa Land Company, came forward to address the members of the Committee.) MR. HEAD: Great question. I don't have the spreadsheet in front of me, but I believe we did provide—I believe Sid Fuke distributed a spreadsheet summary of kind of a comparison of the number of existing timeshare units by island. For our island, relative to Maui and Kaua`i. That was some of the data that we looked at. Page 38 PC-19 February 8,2022 We tend to believe that timeshare on this island, certainly the numbers reveal that it's undersaturated as a percentage of the overall visitor plant when you compare it to both Maui and to Kauai. Essentially, we have about a half of the number of timeshare units that are on Maui, and a third fewer units that we have on Kauai. The other thing is Waikoloa, of the four resorts along the Kohala Coast, is the only resort that has permitted or allowed timesharing in it. So we note that there's limited capacity by virtue of that. And we have a great example with our Hilton Grand Vacations, who have been operating timeshares since the early 2000's in our resort, in a very, very successful King's Land project. And the conversion of Ocean Tower just shows how much demand there is for this type of inventory in visitor product. So those are the factors that we put into it, to evaluate it, and essentially concluded that this was a good direction for us to go. As we all know, the timeshare industry in Hawaii, and having been her for 15 years and gone through the great recession, has been very resilient, and has maintained relatively stable occupancies. With stable occupancies, as you know, comes stable employment for the workforce associated with those types of visitor units. MR. INABA: Thank you. I don't think I'm getting the answer, a clear as to the need. We're making comparisons to other islands. So I just need to understand the data as to the need here in West Hawaii specifically. Not in comparison to other markets. MR. HEAD: We do think the comparisons are important, but part of the need is actually driven by the demand and our interaction with the major timeshare companies. For example, Marriot Vacations which converted the north tower of the Marriot Hotel essentially sold out when they opened, by virtue of how they sell memberships. Now Kumu Hou won't work exactly like that because it's more of a project that looks more like Hilton King's Lands, and it will be absorbed over a long period of time. I'm not here to tell you that there is demand for timeshare for 900 units on this day. It will occur over 40, 50, 60 units a year, over a long period of time. So it's very incremental. So, and Waikoloa is really the only ideal place to develop timeshare on the South Kohala Coast, in this resort corridor. So, you know, we based upon direct discussions with the timeshare companies, we know that the demand is there for it. MR. INABA: Okay, then beyond that data regarding the comparisons with other counties, was there a specific communication that included any kind of numbers from the timeshare companies or any kind of data indicating the need for it? Because I've asked for it in our private meeting,prior to today's committee meeting, so I still haven't received that. That's what II'm still trying to grasp or at least show the need, but I haven't seen that yet. Page 39 PC-19 February 8,2022 MR. PLUNKETT: We had—and maybe Sid you can help but part of this application we did the economic analysis of it. MR. FUKE: Are you asking whether there's like a statement from Hilton Grand Vacation or Marriot Timeshare or any of those timeshare companies to attest that there is you know, like sort of like, "If you build, I will come,"kind of statement? MR. INABA: I'm asking for anything that would show the need beyond the comparison of the other counties' current number of units. MR. FUKE: So if you have a letter from bonafide timeshare developers like Hilton Grand attesting to the demand and the need for additional timeshare, is that what you're looking for, or are you looking for something other than that? And if you can kind of help us focus in terms of what you're looking for. MR. INABA: I'm looking for anything that's going to help this body make an educated decision showing that there's a need. So I'm not sure because I'm not at work in planning, but this was a request previously put in to your office and to this project which has yet to be made available. So I'm not sure what that looks like. If you folks think that it's a letter from Hilton Grand Vacations or Marriot Vacation Club, that's good. I mean obviously they stand to make a profit from selling additional timeshare units and having them built. Beyond that,perhaps think of some other proof that we need 900 additional timeshare units, whether it's today or over the course. What does that look like? We haven't been able to see that. MR. PLUNKETT: I'm not sure I'm adequately answering your question, but as part of this application, we had an economic analysis done for the Kumu Hou project, and part of that analysis was to do an absorption analysis of timeshare and what they might sell for and what the absorption that we might look. And that led to calculations such as what we could afford to put into the Waikoloa Foundation and so forth. So we did have economic analysis on these types of things. Then we had data, Scott was talking about as to the saturation and the availability within you know, in comparison to the other islands. If you're asking did we go engage a specific market study to answer your specific question, the answer is no because we're in the business. We engage with these developers continually, so we know what timeshares sell for, we know what the absorption is in Waikoloa, and we know what it is on this island. So at you can get all the studies that we want, but we wanted to rely on our own experience. So this is something that we're comfortable over a long period of time, that this project will absorb and be successful. It's the right place on this coast to do this type of Page 40 PC-19 February 8,2022 project. It's in the resort corridor and there is demand for it, and it's the right product. And I think it's the right type of visitor. MR. INABA: Okay, well I don't think I'm going to get any further answers beyond what we're talking about right now. So let's move on then to the traffic study that was done. So I know prior to the 400 unit in Area B, we're going to require an updated report. Is Area A planned to build out first or in conjunction with Area B? Because Area A is what, 3 MS. BOUSLAG: Two hundred and sixty-three units. MR. PLUNKETT: Two hundred and sixty-four units. MR. INABA: Plus the 25. MR. PLUNKETT: Plus the 25, correct. The 264 units that encompass Area A, and Ann may give you some more specific details, were units that were previously approved for the King's Land on Hilton Grand Vacations. And we're doing a land swap with them to create the continued views for all of their units on the golf course. So that's why our agreement with Hilton was that in effect when we came to the County Council new conditions and new things like that would have to apply to what we're asking for, not what they already had, if you follow me. MR. INABA: Okay. I think we're going to need to follow with a question. And the question is 400 units in Area B is what will trigger an updated traffic report. MR. PLUNKETT: Correct. MR. INABA: Will Area A be built in conjunction or prior to those 400 units? Because at that point, we'd be closer to—what is that? Two hundred sixty-three plus 400. So I'm trying to understand how this traffic report, this updated report, is fitting into the overall picture. MR. PLUNKETT: The specific condition applies only to Area B. So Area A can be built in conjunction with it, in answer to your question. MR. INABA: Or prior to. MR. PLUNKETT: Or prior to. MR. INABA: Okay, very well. On page 871 of Communication 595, we've got a letter from the Department of Transportation stating that the traffic analysis should be revised to exclude the widening of Queen Ka`ahumanu from the airport all the way to Waikoloa. So is that what's triggering the 400-unit update? Page 41 PC-19 February 8,2022 MS. BOUSLAG: No. I think the 400-unit update was just a recognition that future conditions are going to be very different from todays, and it's hard to tell. And in fact, when the traffic study was done, we were in the middle of COVID, so there wasn't good baseline information either. But the DOT did ask that question, and the study was done by Wilson, Okamoto & Associates. So we went back to them. I was a little concerned about that as well, that perhaps they had overlooked that. What we learned is they did not assume the widening of Queen Ka`ahumanu Highway until 2045, which was basically after the buildout of the project. So the entire project was assessed for traffic purposes with no buildout of Queen Ka`ahumanu Highway. That's pretty typical in their king of analyses if a project isn't funded, even though it may be proposed. They aren't going to assume that it's going to be implemented. So we did respond to DOT to provide them that information. MR. INABA: Okay, and that assumes that in 2045, with funding that the units be built, and the assumption that Queen Ka`ahumanu will have four lanes at that time, is that right? MS. BOUSLAG: Well the study went to 2045, so the widening had very little impact, and even up until the point of the widening, let's say in 2040 or so, what the Wilson/Okamoto study found was that there was greater traffic on Queen Ka`ahumanu Highway, but the vast majority of that was due to the growth in traffic coming from other areas. That these timeshare units and the 25 single-family homes were going to generate negligible amounts of additional traffic. And you know, in addition being visitor units, they don't come out between six and eight in the morning, or you know, need to go out at time to pick up your kids and so on. So it gets distributed through the day, and there was very negligible impact of Kumu Hou on the degradation and level of service at the intersections they evaluated on Queen Ka`ahumanu Highway. MR. INABA: Now do we have a version of the story where we have full buildout of the units, no widening of the highway? What does that look like? MS. BOUSLAG: This is somewhere I might want to refer to Jason, our civil engineer. I can't recall exactly what the last scenario was, but I know their study projected buildout in 2045, and I believe that's when Queen Ka`ahumanu Highway was assumed to be widened. Why don't we get someone on Zoom here? MR. INABA: The Zoom room is open, if he is in the Zoom, he should be able to hear us and jump in. MS. BOUSLAG: Mr. Takeshi, are you there? MR. INABA: Okay, well you know what? In the meantime I'm going to proceed with some other questions. And if we can get him on. In terms of the water, it Page 42 PC-19 February 8,2022 states here that Waikoloa water system is going to be providing the water. But it was stated earlier that there's an anticipated reduction as a result of these bills being approved. Is that right? MS. BOUSLAG: That was a reduction in the withdrawals from the `Anaeho`omalu aquifer, which is relied upon solely as brackish irrigation water. MR. INABA: Okay. Then in terms of the fresh groundwater, that's going to come from that same company, is that right? MS. BOUSLAG: They provide the service, yes. MR. INABA: Okay, and what is the proposed or assumed increase in need for water? MS. BOUSLAG: The Kumu Hou overall—are we able to get some of the people on Zoom here? I'd like to call on Mr. Tom Nance for that. (Note: At this time, Tom Nance, Water Resource Engineer, came forward to address the members of the Committee.) MR. NANCE: Could you repeat the question to make sure I respond to it correctly? MR. INABA: Sure. In terms of the water, the proposed increase in water usage, what does that look like? How many gallons, millions of gallons per day does that look like for full buildout? MR. NANCE: The use of the potable water at full buildout, that use is estimated to be approximately 540,000 gallons a day. In terms of the brackish water, there's actually going to be a reduction in the brackish water use, a separate system from the potable, based on drawing just from the `Anaeho`omalu aquifer, but with displacement of the nine holes of golf, and the increase in the wastewater being reused for irrigation, there's actually about a 300,000-gallon reduction in the use of the brackish water, 300,000 gallons per day. MR. INABA: Got it. Okay, then I'm going to yield now because I think my time is up, so I'll leave it up to my colleagues. Thank you. CHR KIERKIEWICZ: Vice Chair Villegas, you have the floor. MS. VILLEGAS: Thank you. Just in kind of commiseration with Council Member Inaba, we are in this era of extreme housing crisis. I mean mind you we are not—unfortunately and tragically, the Big Island is not alone in that. That is a statewide and national crisis. So while not a direct reflection of the occurrences Page 43 PC-19 February 8,2022 here in the County, it is top of mind to everyone right now. I may not have understood it accurately, Holeka, but what was resonating with me in your question was when we sit and talk about affordable housing projects, we have somebody like Mr. Carr sit here and talk about an affordable housing project, the numbers that are brought forward are statistics about how many homes are needed in order to house people for this County. So it doesn't necessarily surprise me that you wouldn't necessarily have a number like that, because timeshares aren't need, they're a luxury. And it's a luxuryI mean I have lots of friends who sell timeshare, I know it brings in great income. I also have been spoken to a lot lately about the benefits of timeshare versus short-term vacation rentals in our neighborhoods and keeping those people to that distinct area. But I recognize and wanted to acknowledge the irony and the challenge around those kinds of questions because I don't know of anybody that's not working in real estate or in that luxury accommodation industry that would say, "We need more timeshares," other than for economic and capitalism. So I recognize the irony and the challenges that you'll be faced with to actually get him the data that would show the actual need. We are actually in an era, after being through all we've been through with the coronavirus for the kama`aina and the maka`ainana and kupuna and those crying out for some relief from the inundation and perpetuation of our reliance on the tourist industry. So you're sitting here at a time, which I think is relevant to take into consideration when I know myself, I have received dozens of letters in opposition to this development. And it tends to be from those people within our community who tend to be more ferocious about protecting our resources and this place and the concerns. I'm born and raised on the Big Island. I'm actually fifth generation. I'm a big white girl. I went to college with your brother for a while at Colorado State, but I met him at(inaudible). No, that's fine. He's hilarious, him and Tony. He's hilarious. But I hear you're like the really together one. But we're in this time of transition and of challenges and trying to reidentify who and what the Big Island is and what we want to rely on, and do we want to perpetuate this model of tourism and short-term stays. I do recognize that the Waikoloa area has become kind of that hub, and I appreciate parts of it I appreciate it being just that. I mean we haveI grew up an activist trying to protect Kohanaiki, and you know, through my predecessors and my mentor here, Maile David working with Karen Eoff in ensuring that development had impact fees, pay things forward, so thanks for listening to my, "Coffee at 5:00 p.m." blather. But I'm just recognizing the difference in the testimony and the people that I have been hearing from because I also work with and admire and appreciate a number of the testifiers here who are in complete support of this development and the legacy and the history of your `ohana and your family and the things that have been taken Page 44 PC-19 February 8,2022 into consideration and the extras that have been given. And I can see from that perspective the desire to do no harm, right? It's just we're in this ironic time in history as we look at how we've created our systems. If I could just ask for another minute of CHR KIERKIEWICZ: Go ahead. MS. VILLEGAS: Thank you. So one of my questions is then, will the affordable housing get built first? CHR KIERKIEWICZ: Mr. Plunkett, thank you. MR. PLUNKETT: Yes, it will be. MS. VILLEGAS: Okay. That is good to know. There's a cap of 65 years on the affordable housing. Is there any cap timeframe on the timeshares? MR. PLUNKETT: There were some SMA required timelines. Maybe you could speak to that? MS. BOUSLAG: There's no timeline on the affordable housing as you know. What Mr. Carr is saying is that he would guarantee its affordability for 65 years. Sometimes you don't want to go longer than that for a multi-family building because you don't know the life of the building. MS. VILLEGAS: And I'm not sure where we're going toI mean it's late in the day. We are still just in Committee. I'm not sure where my colleagues stand with this. But these are food for thought things. You don't have to necessarily have to answer them for me right now, Sid. But you know MR. FUKE: I found the answer. MS. VILLEGAS: Of course you did. MR. FUKE: Because it's not a mathematical response, I can get it to you. MS. VILLEGAS: It's a word, not a number? MR. FUKE: Yeah, the Planning Commission had asked the same question that you did, Council Member. So they had imposed a Condition Number 27, which required that, "Construction shall commence . . . "this relates to the 900 timeshares, " . . . within five years of the effective date of the permit and completion, 50 percent of the units within 15 years of the start of construction." And the rationale that was given by the commission chair at that time is that SMA looks at conditions, like the development as it evolves. So there may be different Page 45 PC-19 February 8,2022 access concerns, there may be different requirements for like if this were a coastal property maybe sea level rising and all that stuff. So the commission chair essentially said we should be given an opportunity to, if need be, refresh the conditions. So that's how the conditions came about. We had argued that really, it's like the original project. There was no construction timetable. It started in 1977 when I started working for the County as the Planning Director. And here I am. Maybe this might be my exit strategy, I don't know. MS. VILLEGAS: You're never going to exit, Sid. You're an addict. MR. FUKE: But anyway what I'm saying is it took so long to just be where they are, and yet they have some vacant properties that they kind of want to rearrange. But nevertheless, the commission asked, and we said fine, we can understand. MS. VILLEGAS: Thank you for that. I want to commend also this being the first project to have affordable housing component within a resort area. That's fantastic. One hundred and forty-two still won't be enough, especially with this addition. So not that it becomes the complete responsibility of this resort area, but it's still not enough. I would be remiss not to mention that. Then I have some more specific questions, about what's considered affordable, what are the parameters of that rental, how we keep the utilities affordable in those rental compartments. I also have some more questions about the foundation. The world is full of foundations from properties and families who have done very well in developing areas. So I'd love to learn more to be able to establish trust, authenticity, a sense of place, and you know, a real understanding that all the monies would be spent in West Hawaii or on the Big Island at the minimum, and that what agreements or ideas or parameters are already being looked at. Because the goal is for the Big Island to become self-sustaining and regenerative instead of reliant. And you know, the term sustainability is way overused. So that's why I think regenerative to what we have here and keeping the resources in circulation here. So thank you for your patience with my comments and I look forward to continued conversations. I have a feeling this one's going to get hot, so I think we all have to have our thinking caps on,just from the testimony that I received from a number of people who are very smart, very akamai, and concerned. So thank you. CHR KIERKIEWICZ: Thank you, Vice Chair Villegas. Mr. Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Thank you very much for the presentation today. Very well done, very well scripted. Looking through some of the stuff and the questions that I've heard, and that have been asked by my Page 46 PC-19 February 8,2022 fellow Council members, I'm just going to follow-up kind of across the board. So you're going to have to bear with me. Waikoloa Land Company has multiple trading names. Those are all part of the Waikoloa Land Company, correct? King's Land MR. PLUNKETT: There are a number of entities that operate under the Waikoloa Land Company umbrella. We consider that kind of the original parent company so to speak. It's a complicated organization chart, but they all operate under that umbrella. MR. KANEALI`I-KLEINFELDER: It is, it's a lot of names as far as trade names underneath that. MS. BOUSLAG: But I'm just glad you mentioned Hilton Grand Vacations as a trade name. That is not part of Waikoloa Land Company. MR. KANEALI`I-KLEINFELDER: I don't know if I saidI said? MS. BOUSLAG: I thought you did. Oh, King's Land. MR. KANEALI`I-KLEINFELDER: I said King's Land. King's Land is, correct? MR. PLUNKETT: King's Land is part of Hilton Grand Vacations. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. And then follow-up for you, the Waikoloa Foundation also has four different trade names as well? Or had in the past? The Royal Foundation, there's a few of them that come underneath the MS. BOEDDEKKER: Well, I don't know. I know it's the Waikoloa Foundation today. I just took over two years ago running this. It was basically a dormant organization for many years after my father passed away. I saw the need for the community to have something like this, and I operate it as the Waikoloa Foundation. MR. KANEALI`I-KLEINFELDER: Okay. The reason I'm asking, it's basically what Sue had asked before. How much is coming from those timeshare units, which is I kept hearing, "a percentage of." MS. BOUSLAG: Two percent, yeah. MR. KANEALI`I-KLEINFELDER: And I know you mentioned two percent, so thank you. And then you mentioned, "across the island," and I'm just trying to Page 47 PC-19 February 8,2022 nail it down because none of the timeshare units have a fair share contribution. I don't know if that's normal, but it's in the conditions. Am I wrong? CHR KIERKIEWICZ: Mr. Fuke, can you point out where the fair share contributions are for this project? Thank you. MR. KANEALI`I-KLEINFELDER: There's one condition that actually stated that none of the timeshare units have fair share contributions. MR. FUKE: Actually, there is a fair share contribution for the 900 timeshare units. The one that doesn't have the fair share contribution is the other one that's adjacent to the Mauna Lani property. And the theory behind that, which the Planning Department had agreed to was that Carrie, was already entitled. So that would have been exempt. It's like having zoned properties, so you can't go back retroactively to impose something new. But relative to this Project District area, the 900 additional timeshare units, it would be subject to the fair share. That's found in Condition U. MR. KANEALI`I-KLEINFELDER: Okay. There was one section—and I was wrong, sorry, Maile pointed it out for me. But there is 264 units that are not applicable to the fair share contributions. MR. FUKE: That's right. MR. KANEALI`I-KLEINFELDER: Okay, thank you. That makes me feel better. And can I tie it back into where those contributions are going and how much, and—talk a little bit about island-wide contributions from this possible $50 million MS. BOEDDEKKER: Absolutely. So that question has come up for me actually, is how am I going to use the money. What are we doing with this money? Is it staying in Waikoloa? Is it just specifically for your people there? And the answer is absolutely not. The advisory board that I put together specifically encompasses people and cultural practioners, business leaders that really encompass the entire island. My goal, and under the direction of the advisory committee, I don't want this to be my thing. I want this to be the people's thing. We are honored to be able to have these funds to use to support the community in every way possible. What does that mean today? I don't know. I know what I'm doing today with very little money. I'm doing things like the Food Basket. I'm doing things like virtual field trips online for the keiki. I'm working with Keiki Heroes. These are all island-wide initiatives that I'm doing right now today with, again, very little money in our foundation. So the goal is absolutely to support other foundations, to support other nonprofits, and to really look at the needs of the overall community everywhere. How can we help? That's what we're here for. Page 48 PC-19 February 8,2022 MR. KANEALI`I-KLEINFELDER: Maybe this is a question for Director Kern. How much of the—how much—and there's a percentage of land that's required to be set aside for parks when we look at something like this. What is the percentage, or am I off? (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Good afternoon. Good evening. Zendo Kern, Planning Director. I actually have my Program Manager Maija Jackson on the line. She can help answer that question. Maija are you available on Zoom? (Note: At this time, Planning Program Manager Maija Jackson came forward to address the members of the Committee.) MS. JACKSON: Aloha. MR. KERN: Aloha. MS. JACKSON: So I don't have an exact number for you. If you can give me a moment, I can look up the Parks Code. But when we evaluated the Kumu Hou project, we looked at the Parks Code at that time to see whether they met the standard, and they did. They're actually there's a Land Use Commission order that requires a certain amount of open space. And then the park that they're proposing at the intersection along with the open space required by the Land Use Commission order meets the requirement in the Parks Code. MR. KANEALI`I-KLEINFELDER: Okay. Thank you very much. MS. JACKSON: Thank you too. MR. KANEALI`I-KLEINFELDER: And then tying up another questions: water. And I asked this question earlier. Where is the water coming from for this buildout, this extension of the resort area? MR. KERN: If you're asking me, that would be provided by Hawaii Water Service, and I believe Tom Nance can answer any additional details of that. MR. KANEALI`I-KLEINFELDER: Okay. Mr. Nance are you online? MR. NANCE: Yes, I am. MR. KANEALI`I-KLEINFELDER: What is the aquifer providing for this proj ect? Page 49 PC-19 February 8,2022 MR. NANCE: There actually are two aquifers, the potable water supplied by Hawaii Water Service, all of their wells are in the Waimea aquifer. And all of the irrigation wells providing brackish water are in the `Anaeh`omalu aquifer. MR. KANEALI`I-KLEINFELDER: Is there a report for those aquifers on what is sustainable yield? MS. NANCE: Well the present sustainable yield of the Waimea aquifer is 60 mgd (million gallons per day). The present sustainable yield of the `Anaeh`omalu aquifer is 30 mgd. But those numbers were adopted in the 2019 update of the Water Commission's Water Resource Protection Plan. But they had a footnote to them that the boundaries of the Mahukona, Waimea and `Anaeh`omalu aquifers were under the process of being adjusted. So the sustainable yield aquifer numbers that were in that 2019 report would be subject to revision when that process of adjusting boundaries was completed. MR. KANEALI`I-KLEINFELDER: Correct me if I'm wrong, but I remember hearing somewhere along the line that that water use development plan basically was unchanged from the last time they brought it forward. MR. NANCE: The last time before the 2019 I believe was 2008, and there were changes to the sustainable yields of the Mahukona and the Waimea aquifer systems, but again with this footnote or caveat to the table that said the staff is looking at adjusting boundaries which would also adjust the sustainable yield. MR. KANEALI`I-KLEINFELDER: Okay, would that have a bearing on this project at all, Mr. Nance? MR. NANCE: It should not at this point in time. MR. KANEALI`I-KLEINFELDER: Okay, thank you. Thank you for that, Mr. Nance. This property is larger, or this buildout is larger than 15 acres. Was the Land Use Commission involved in this process at all? MR. KERN: Yes, the Land Use Commission (LUC) was heavily involved in this project, which basically set various conditions, as Ms. Jackson had mentioned, as well as it sent the density in the SMA. And the Land Use set that density. So there was, and everything has been followed with the LUC requirements. MR. KANEALI`I-KLEINFELDER: Okay, thank you. And then is there a copy of the SMA in front of us? It was emailed to us? MR. KERN: It was emailed to you. Page 50 PC-19 February 8,2022 MR. KANEALI`I-KLEINFELDER: But not put inside this document here? MR. KERN: I am not sure. MR. KANEALI`I-KLEINFELDER: Okay. I'm checking my notes. I'm kind of bouncing back and forth between the two bills, so I apologize. Then there was mention of a donation of land of 300 acres for the affordable housing. That's interesting to me. So who donated the land to who? MR. PLUNKETT: Waikoloa Land donated, and I don't remember the exact year, It may have been 1991, 300 acres in Waikoloa Village, for what is known as the Kamakoa Nui Project, which the Office of Housing County development is developing as affordable housing. MR. KERN: So when that was done, that met all of the affordable housing needs for the entirety of the project, with the maximum density that they had. So the additional affordable housing that they're bringing in to the project is above and beyond what was required. MR. KANEALI`I-KLEINFELDER: How many units is that? I'd sayshoots, I don't have the exact number of existing units. I'd say we have a lot more potential units. So right now I know Housing is going through a new master plan of the area and kind of putting the areas off that have some FDS or Formally Defense Site area that isn't cleared. And they're going to be working on the configuration of that to eventually have more projects being developed there. MR. KANEALI`I-KLEINFELDER: Okay, then that donation of the land equaled to the donation of the land to the County, correct, equaled out to the affordable housing units needed to qualify this project—? MR. KERN: It met the affordable housing requirements for the entire project. So all density MR. KANEALI`I-KLEINFELDER: The Waikoloa Land Company projects? MR. KERN: So yeah, when we look at that 6,000-plus, you know, existing entitled units, it would have covered all of that. MR. KANEALI`I-KLEINFELDER: Just the donation of the land, not building them? MR. KERN: That's correct. MR. KANEALI`I-KLEINFELDER: Who's building that? That's County? Page 51 PC-19 February 8,2022 MR. KERN: So County isI don't believe that the County is planning to do a lot more building. My understanding is that the County is going to be looking at redoing the master plan, bringing infrastructure to the sites, then I believe there would be housing developers that would build those. MR. KANEALI`I-KLEINFELDER: Okay, so sum up. Waikoloa Land Company donated 300 acres of land to the County, the County is building out an affordable housing project there. That counted towards the affordable housing requirements for the project that's in front of us now in Bill 112 and 115. MR. KERN: Correct. It covered all of them, yes. MR. KANEALI`I-KLEINFELDER: Plus the small amount of housing that's being built out under this certain project right now. MR. KERN: Correct. MR. KANEALI`I-KLEINFELDER: Interesting. Okay. Thank you. That was my question. Appreciate it. Thank you for being here today. CHR KIERKIEWICZ: Thank you. I'm going to recess this body for about 10-minutes for a quick restroom and stretch break. We'll be back at 5:30 (p.m.). We're in recess. Thank you. Recess: At 5:22 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 5:31 p.m. CHR KIERKIEWICZ: Aloha. Okay, we are back. I am calling this meeting back into session at 5:31 p.m. Mr. Richards, I believe you had your light on. You have the floor. MR. RICHARDS: Thank you, Chair. I've been listening to my colleagues very carefully, and I'm exceedingly familiar with Waikoloa Village and the Waikoloa resort area. Waikoloa Village is in my district though. Being a long-time, life-long resident of Hawaii, I remember when it was Boise-Cascade. And the original—don't make fun the whole structure of that. So listening to the plan and the evolution of what the Waikoloa resort area is planning on doing, I'm very supportive of what you're trying to do. What I fully appreciate is the thoughtfulness of all this. To some of the point that Mr. Kaneali`i-Kleinfelder was asking concerning the water. I've been working with the Hawaii Water Company for decades. I've known them for a long time. They manage both the wastewater and the potable water. Very familiar with the water system, very familiar with what they do for Page 52 PC-19 February 8,2022 Waikoloa Village and resort. So I understand the concern and questions from the Council, but I have no questions, because I'm very familiar with what they're trying to accomplish and what they actually do accomplish for the resort as a whole. I really am fascinated by the concept of the foundation. I really like the idea of investing but reinvesting back into the resort area,but more than resort area. I'm talking about reinvesting in the people of the County because that's something that I—it's a unique model in my mind. I appreciate the fact that being very thoughtful going forward. I also like the idea that we're redefining your golf experience. I think it's not just with building timeshares and/or the affordable housing. It's also paying attention to the resource management, the water or reuse of the wastewater. So I like the structure and how you're coming forward. One of the concerns that was brought to me had to with the setback with the Queen Ka`ahumanu Highway. That's been addressed. It's already been looked at and I appreciate that going forward. I also like the fact that you're paying very close attention to what we can do with the affordable housing. And a summary on that is best described as you don't have to do the affordable housing on this portion but you're choosing to do it because it's the right thing to do and the right direction to go. And members of this Council, we all know we need a lot more housing. But you're actually talking about doing it. And what I really like is that you're doing it first. So many of these projects that come forth they say, "Yep, we're going to do all that, and then we'll finally get around to doing the affordable housing." But doing it the other way is the way I fully appreciated the fact. Because what it does is it gets things going. You know, we had some testimony quite a few hours ago now, talking about employment on the west side and people living on the east side. And I had dinner on that side last night and I was talking to the waitress, and she does the exact same thing. She commutes an hour and a half each way. We have to work harder to reduce the travel miles. We have to do that for safety, but we also have to do it for the—and we use the term "family capital." I know a guy who was working as a bellhop and/or valet, two different resorts, and they worked it out so he could work a full shift at one and then go work a full shift at the second one and then sleep in his car. He did that for three or four days, rotating, and then he'd drive back there to spend the weekend with the family. That's no way to have a life, and it's certainly not a way to have a successful family, because we're missing a parent through all that. So this is a step, and I agree, Rebecca, with what you're saying about affordable housing. But we're actually starting to do something about that, and there's a lot of stuff slated. We as a Council have to embrace the fact that we are going to have to make decisions for housing if we're truly going to have that housing. This is a step towards that direction. Page 53 PC-19 February 8,2022 I like that, because I haveI grew up in North Hawaii, and I have a lot of friends and family, and family of family, that are always looking for housing. If we don't start making a differencea little bit latitude? CHR KIERKIEWICZ: Go ahead. MR. RICHARDS: If we don't start making a difference and making the selection, we're not going to get there. So this is a start. So thank you. I am supportive of this project going forward because I think it redefined how we might be able to do things. Thank you, I yield. MR. PLUNKETT: If I could just interject. I appreciate the comments. Hopefully you'll be able to convince other developers and so forth. Part of our justification for it is frankly it's good business. It's a very constrained labor market here on this island. We have to compete for people to work. And we think that will offer—we have a lot of employees out and Waikoloa, and we think that will offer a competitive edge. So while I think it's a good thing to help address the housing needs, I think it's also good business. MR. RICHARDS: A quick response, Chair. It's more than good business. It's actually taking care of the people, and that is good business, by taking care of the community. CHR KIERKIEWICZ: Thank you. On the affordable housing piece, I know that the intention is to build a minimum of 142, but I recall reading in the minutes of Commission Stanford Carr bringing up the 201H application and there being the possibility of developing upwards of 220. Can someone from the project team confirm that? MR. PLUNKETT: That was a conceptual site plan, and we haven't done all the work. We haven't done the AIS and so forth to determine, you know what the site will actually yield, you know once we go through all that. We would support obviously, but we agreed to a minimum, not less than. We would obviously support however many Stanford can justify, and the site can yield. MR. FUKE: Just to add to that, the 142 was struck because of the existing zoning that entitled the property to 142 units. However, I kind of overheard some discussions about—and we also talked to Mr. Stanford about increasing the density. The thought is that should this project be approved, then there is a very real possibility after the baseline studies are done off the property, and then trying to figure out whether more units can be placed on the property and if more units can be placed on the property, the idea is to seek a 201H exemption. Page 54 PC-19 February 8,2022 CHR KIERKIEWICZ: So that clarity. And just for Council Services, Mr. Plunkett used the term, "AIS,"that's Archaeological Inventory Survey. Thank you. MR. PLUNKETT: That's correct. CHR KIERKIEWICZ: Other questions or comments from my colleagues? Council Chair David. MS. DAVID: Thank you, Chair. Aloha and welcome. Hi, Mr. Fuke. And thanks for the broad discussion on the project, and all the good things that you folks are doing. I have a question on the timeframe, and I think Mr. Fuke kind of answered that. So the workforce housing, the affordable workforce, is this affordable housing or workforce housing? MR. FUKE: It's intended to be a workforce housing project, so according to Mr. Carr, you know, the idea was to have like 60 percent of the units be targeted between 30 to 60 percent AMI, and the balance would be up to 120 AMI. MS. DAVID: Okay, and that's based on the current housing figures, right? MR. FUKE: That's based on the prevailing, you know, like the yeah. MS. DAVID: Then what is the timeframe on building the affordable housing? I know the actual development you folks said the conditions state they need to do within five years they need to complete a certain aspect of it. So where does the workforce housing fit into that process? MR. FUKE: The workforce housing has to be completed, or at least portions of it, the units have to be completed prior to the issuance of any occupancy permit for the timeshare units. So that kind of like really incentivizes them to really get off their duff. They are still, as I mentioned earlier to the Chair, that there are things that need to be done on the ground like they had to complete and have an approved Archaeological Inventory Survey. And if there's a need for a Preservation Plan, you know, all of those protocols would have to be taken. Then the physical design of the project can be developed. Developer is also, you know, Waikoloa Land is prepared and has obligated themselves to Mr. Carr that they would provide the road access leading to the site as well as the utility. So basically, you know, all Mr. Carr asks of everybody,just, he has this property, he's going to develop it, you know, ground up subject to all the archaeological protocols. MS. DAVID: Right, and that archaeological survey, that is expected to be done as soon as the Page 55 PC-19 February 8,2022 MR. PLUNKETT: As soon as we're done here, we would start that. MS. DAVID: Okay. Depends on the results of the archaeological survey then, I assume that your project will either MR. FUKE: It'll determine like how many units you actually can yield on the property. MS. BOUSLAG: And the preservation methods. MR. FUKE: I'm sure that when our too bad he's not here, but when we talked about it, he said he would like to have the ability to perhaps go up to like 200 units, but he doesn't know. But the project is going to be built in phases. MS. DAVID: Okay, and then the timeframe for the phasing out is basically the five years, or the length of the completed project. MR. PLUNKETT: We need to complete it prior to the first occupancy permit for the timeshare project. This was, you know, frankly to the Planning Commission's credit, they wanted teeth behind that promise of ours. MS. DAVID: Alright. I think for now that's the only questions that I had. Okay, well we'll be seeing you two more times anyway in this process. So lots of good discussion and topics to dwell on until we meet again. So thank you so much for everybody's contributions today in helping us understand this whole process. Thank you. MR. FUKE: You're very welcome. MR. PLUNKETT: You're very welcome. MR. FUKE: Can I just make one comment? I have to apologize to Council Member Kleinfelder because I mentioned that the fair share would not have applied to the 270-some odd condos. But it does apply to the 25 units, single-family residential lots. CHR KIERKIEWICZ: Thank you. Mr. Chung, you have the floor. MR. CHUNG: Very briefly, Madam Chair. First of all, I just think all of the comments and the questions that have been asked and made are really good. All fair points. I can only share my perspective. With regard to the increase in timeshares, I cannot say that there is a need for it. I don't thinkI cannot seriously sit here and say, "There is a need for increased timeshares." But at the same time, instead of looking at the need, I'm going to look at the possible benefits. Page 56 PC-19 February 8,2022 Okay, now you already talked about the foundation, that's one component. But we also have to look at real property tax bases and what we are going to generate, and what are the impacts from the development. Generally speaking I think, the timeshares—and the Waikoloa development was intended to keep people onsite. I mean as much as possible. Of course tourists will be what they are, and they'll be going here and there. But for what we can generate in the way of real property taxes, I think we can make some inroads in helping other aspects of our County. Not to put you guys on the spot or anything like that, it's not out of the realm of possibilities. I don't know exactly how timeshares fit into the whole two-tier taxing system, but it might fall into that if we tweak our taxing laws a little bit. So we could generate a little bit more monies there, too. I mean, because we have to look at it in terms of what's the benefit for us, right? I mean having more timeshares in and of itself doesn't benefit the County, it's a development decision, right? But I believe that we can derive a great deal of benefit from the development with not as much impacts as people might imagine. So that's my thoughts, anyway. But I think everybody, all of the comments and questions, are very relevant to, you know, the consideration of this matter. I'm going to be supporting it, because when I look at what you guys have presented in totality, you guys have presented a very thoughtful development. You know, it put a lot of good ideas into trying to come up with a better development than you guys could have come up with under your, whatever you guys had before your present entitlement. But I wanted to say something, and it's kind of unfortunate that the gentleman is not here anymore, Mr. Carr. You know I was on the Council from 1996 to 2004. After I had left at that time, I would often reflect on several things. And one of those things was, you know, we had approved so many developments during those eight years and only two people, large development, actually followed through on their plans. One was out in Pahoa, you know, where they have the Subway. I always wanted to shake the hand of that person. I don't know who it is, but I said, "You guys went for the rezoning, you guys did it." And the other one was Stanford Carr. I was able to track his career from that time. I think it was the first development, his first development on this island. And he came through with a very good development. Actually one of the persons, one of my former colleaguesI'm not going to mention that person's name but who was against that project—would tell me years later that, hey, that actually turned out to be a really good project. And you know, Mr. Carr is a local guy. He's from Maui. You know, I've been able to look, you know, see his career. I learn about him, and he's always done good stuff. You know, sometimes we take leaps of faith for people from different investment outfits from wherever, right? And oftentimes Page 57 PC-19 February 8,2022 they'll just sit on the property, try to spin it, or do all of these different things. Mr. Carr, he does a good job. So you have that workforce housing component, that's a big plus. I was upstairs, sorry, I've got my bad back right, so I was just listening to the testimony. And you've got the workers who are going to benefit from this, right? But you know, if Mr. Carr were here, I would have said, "Nice seeing you after all these years," and you know, "Thanks for doing a good job." That's all I wanted to say. I'll be voting in support of this. Thank you. MR. PLUNKETT: I would just add to that, that when we were coming up with the idea of the affordable housing within the resort, and we had engaged early with former Mayor Billy Kenoi, and we were trying to set the right developer. He was adamant that Stanford was the guy that could actually make it happen. So that was—and plus he was successful in Waikoloa right after 911 building Colony Villas, and he followed through with it and completed the project when a lot of developers were starting to bail out. So our experience was good. MR. FUKE: Just to add to that, I was kind of looking at all of my notes and this project has been over four years in the making. Before we actually had something submitted to the Planning Commission, and a lot of it had to do with this community outreach, you know,just trying to find out like you know, they had this objective already. They kind of wanted to do something with this nine-hole portion of the golf course that's not doing anything. So they kind of like wanted to basically renovate the house. So that's the objective, and then the process becomes like how do you go about doing it? You have to check the laws. You don't want to exceed the density. You have to look at the infrastructure. The more critical and you've got to talk story with your neighbor to find out like, "Hey, if I make this extension is it going to block your view, or what?" You know, that's how they approached it. They're saying like, "Maybe we've got to go out, talk story with the community, have somebody like Billy Kenoi or Kanani Aton go out into the community to talk story." Then as a result of that,you say like, "Well, we've got this property, maybe we should do a workforce housing." So Mayor Billy at that time said, "Great idea." You know, who's going to develop? We should get Stanford. So that's how it's how. So that's how the project evolved. You know, it wasn't something that was thought about like last year, "Hey we've got to do something with that." It was a long, long four years. For that I tell them thank you very much for four years. CHR KIERKIEWICZ: Thanks for that background. Mr. Inaba, you have the floor. Page 58 PC-19 February 8,2022 MR. INABA: Thank you. I just want to circle back. And I think, you know, the bills before us require further conversation at the Committee level is how I feel. But in terms of the water, you know, we've kind of talked about it a little bit, and I would like to know if somebody from either CWRM (Commission on Water Resource Management) or the Department of Water Supply, anybody can give us an idea of what allotment exists, or entitlements exist for water coming from that aquifer. Because we know that the sustainable yield is 16 million gallons per day. Over the last, I believe, 10 years, we've had some—we've had a couple of times where we've exceeded that sustainable yield, and other than that, maybe averaged around maybe 14 million gallons per day in pumping. So I think it really would be smart for this body to know what kind of water usage or entitlements exist beyond the 500,000 gallons that would be pumped in addition if these units were approved. Because we need to always look at the big picture. Especially when besides the Keauhou aquifer, Waimea was kind of the only other problematic aquifer on this island. So there are some other questions. I'm going to ask for a postponement after Chair Kierkiewicz gets a chance to weigh in. But I'm hoping that maybe we can have some of that data prepared for the next time we meet. I just also want to comment real quick, and I'm thankful that we have this foundation that could stand to benefit from these rezonings. Right now, who is on the governing board of this foundation? MR. PLUNKETT: The current board is Ms. Boeddekker is the President and Scott Head and myself. Scott and I are placeholders. The plan is to transition the board from the advisory committee to actually becoming the board, because this is frankly—sort of this is part of our exit plan for Waikoloa, because Kumu Hou is really our last significant project. And the foundation is what we leave, and this advisory board will become the governing board. But Scott and I are, it's fair to say we're basically placeholders. MS. BOEDDEKKER: No offense, John. But yes, you will be kicked off the board. I'm kidding. MR. INABA: So your role as President of the board of the foundation, not President of the foundation. Not like an executive director. MS. BOEDDEKKER: No, the intent is to absolutely hire the executive director. In a foundation of this magnitude, it's needed. Even if this didn't happen, I would need to hire an executive director. The goals I have for this, even if this project doesn't get approved, we will be a foundation that will need to raise money. And I will raise a lot of money, even if we don't do this today, to do amazing community things. And we will have an executive director and we will continue to have an Page 59 PC-19 February 8,2022 advisory board made up of the community, looking to the community for what their needs are. MR. INABA: And when are we looking at having this transition? Because it would make sense if it had already been done, right, to have these community people on the board, the governing board, not—no offense to the people advocating for the project. MS. BOEDDEKKER: No I understand. The first step is just getting the foundation back up and running. So that was my goal initially. Now that we have the advisory board in place, I think there's no question that we want to eventually transition them into the full-fledged board to run this foundation. There's no question. Frankly, I think until I have a significant amount of money to run the foundation, these are very successful people that don't have a lot of time to spend. They're on lots of different foundations that I need to put more boots on the ground doing my work first. Like you talked about, the trust is very important. Yes, I grew up here for a long time, but there's still a sense of trust that I need to develop with the community. Even with my advisory board members although many of them are my friends and I've known them for many years. My job right now is to earn the trust of the community. I think until that time even these advisory board members aren't going to fully invest in this until they understand what our mission and goals are. That's what I'm trying to show. MR. INABA: And I totally support that idea and I would argue that part of buying community trust is getting those people in the position. MS. BOEDDEKKER: Absolutely, I agree. MR. INABA: Like I said, no offense, but not you folks who are over here. Not you, but this whole team was here today advocating for the foundation. MS. BOEDDEKKER: No. Yeah, no, I agree. And they understand that. They understand that totally. MR. INABA: So I brought that up in our private meeting, and I think we should really get moving with that— MS. hatMS. BOEDDEKKER: Yeah, I'm with you. MR. INABA: Because that's not the best— MR. estMR. PLUNKETT: There is a separation Page 60 PC-19 February 8,2022 MR. INABA: And I'll leave that for, you know,perhaps another conversation. I think, Chair, I'm going to yield with that— MS. hatMS. BOEDDEKKER: Yeah, thank you, I appreciate that. MR. INABA: And we can wrap this up. Thank you. CHR KIERKIEWICZ: Any other questions or comments. Ms. Kimball. MS. KIMBALL: It'll be super-fast. I know everybody's getting tired and you haven't had a chance to talk yet. I had just one question from Director Kern or whomever actually. And I may have missed it in all of the documentation. Where did we end up on the near-shore water quality monitoring? Is that going to still happen at regular intervals? MR. KERN: Zendo Kern, Planning Director. Yes. MS. KIMBALL: Okay, great. Thank you. But what is that interval, sir? And I have one more question for you. You're not out of the hotseat yet. What is that interval? MR. KERN: I'll have toMaij a? MS. JACKSON: Yes, the applicant is required to provide annual monitoring reports to the Planning Department and Department of Health. MS. KIMBALL: Great. Thank you, Maija. Then Director, for the next time we talk about this, if we can per contacts and if it's easily accessible, I'd be curious to know how many similarly zoned areas we have left for development on the island, you know, with this appropriate zoning for timeshares. First of all, and second of all, do we have other project areas out there that have these entitlements that have not been taken advantage of. This is obviously that I'm encountering for the first time, so I had a lot of questions about it. So I don't want it now, but is that something that you could provide for our next conversation? MR. KERN: We can look into it, yeah. I'll do my best to get you some information on that. MS. KIMBALL: Okay, great. Thank you. The other questions I had were for Mr. Carr. And since he's not here, we can wait for later in the process. But there were a couple of things around the affordable housing that I did want to talk about. One was this idea of workforce housing and the availability of the funding mechanisms that he plans on using to actually restrict who's eligible. I know we have to comply with Fair Housing, but I was trying to the Maui Housing Plan, Page 61 PC-19 February 8,2022 page 145 has some mechanisms by which to comply with the Fair Housing Plan but also limit who is eligible for the units. So I wanted to refer him to that. The other question I had, had to do with the utilization of housing credits as part of this project. So because the affordable housing requirement has already been satisfied for this project, he would be eligible to seek credits for the development of this project. The only reason I'm bringing it up—and I was hesitant to because I love the affordable housing part of it. Yay, it's the right demographics, all that good stuff, however, if the credit process is incorporated what that means is that some other developer who might develop affordable housing as a requirement at some other location on the island now doesn't have to. They could purchase those credits. So it's kind of a(inaudible) some gains in terms of units. Just something I want us to be thinking about on that conversation. So I understand from you that he does intend to seek credits at least in part for the funding? MR. FUKE: Yeah. It provides an opportunity for additional funds, development funds for the project if he can sell some of those credits. So my short answer to you at that time was yes. I hear what you're saying though. MS. KIMBALL: Chair, I yield. I'm fine with eithersorry, I don't yield yet. I'm fine with either moving this forward today. I still do want to discuss the amendment that Council Member Lee Loy you mentioned before. Preference, I don't mind if we do it in Committee or move it to the next step. I guess since this is a 20-year long project in all likelihood maybe saving in Committee one more week is not—two weeks, is not that big a deal. CHR KIERKIEWICZ: Thank you. MR. KANEALI`I-KLEINFELDER: I was watching other municipalities. The multi-family dwellings that are being built; can those be used as short-term vacation rentals down the line? MR. FUKE: No, they cannot. MR. PLUNKETT: No, they cannot. MR. KANEALI`I-KLEINFELDER: They cannon? Okay, thank you. MR. FUKE: Because very shortly because they'll exceed the cap for the number of visitor units in the resort. MR. KANEALI`I-KLEINFELDER: Thank you. Thank you, Sid. Page 62 PC-19 February 8,2022 CHR KIERKIEWICZ: Thank you. Anyone else? If I could just get a report back on what exactly we are going to be discussing at the next committee meeting, because there was a lot of, "I would like information on x, y, z," There was also another offer to put forward some strengthening of various conditions. So Council Members, if you could just help me out here so that Sid, you can report back on what kind of information you are bringing back to this body so we can have a productive conversation in two weeks. MR. FUKE: Well, if I can read my scribbled notes. I think there were several things that we already have, like an affordable workforce housing condition, and I think the discussion focused on whether that language should be tightened up to reflect several things three things essentially. One is whether they should be specific in terms of the AMI, you know what was represented verbally. Secondly, a 65-year rental cap; and thirdly, the issue of whether they would be eligible for any credits. Is that correct? The other question similar was what Council Member Kimball brought up was about trying to establish a cap. At least like some system of monitoring the cap because there is none right now and trying to find whether we can craft the language to have a monitoring system so that it doesn't exceed. I've answered Council Member Kaneali`i-KI einfelder's question about can others go to timeshare, and we said, "no." But yeah, I think you need to have some kind of an accounting system and yeah, I think we can develop that language as a condition. There were two other things that were not really condition-type but more like wanting to seek information. I think Council Member Inaba brought up. One related just to the whole notion of timeshare in terms of trying to find whether there's really you know, how do you quantify demand essentially. So that's something that we can generate that information. I mentioned to him offline that there is this organization called ARDA, American Resort Developers Association, whose primary focus is to work with timeshare developers. And they have a wealth of information. So working with ARDA or other active timeshare providers such as like Hilton Grand and maybe we can generate the information that he's looking for. The other relates to the potable water and especially the aquifer. I think very simply, looking at like what is the yield, what is the projected amount that this project would use and at the end of the day, what's the leftover. Is that correct? MR. INABA: Oh, everyone looks to me. Okay, yeah, that's correct. And Sid, thank goodness they keep you employed because your mind is so sharp. Just on the water, I wanted to make sure we had the big picture for that aquifer. So yes, I think they shared the water usage that is anticipated for full build-out of this project, but looking at what's been entitled, allotted from the greater aquifer, I Page 63 PC-19 February 8,2022 think we need to have that information. But besides that, I think that was a pretty good recap. Better than I could have done. CHR KIERKIEWICZ: Very thorough. Very excellent. Thank you, Mr. Fuke. Ms. Lee Loy. MS. LEE LOY: And in addition to the water CHR KIERKIEWICZ: Hang on. We need to go into recess. 15 minutes. Technical issues. Thank you. Recess: At 6:05 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 6:14 p.m. CHR KIERKIEWICZ: We are back, Planning Committee has reconvened at 6:14 p.m. Mr. Fuke, thank you for going through that very thorough list of what you're going to report back to the Council. It's really quite extensive. Where we left off, Council Member Lee Loy, you had the floor. MS. LEE LOY: Thank you, Chair. I just wanted to highlight that Water Use and Development Plan, some of the numbers that Mr. Inaba is asking for. I know Mr. Nance can do a fantastic job with identifying the number of water units through the entitlements, but I also know through the work with the Department of Water Supply and the Water Use and Development Plan that we send to CWRM, some of that entitlements is also driven by open building permits which were about to cancel starting March 1st. So if there's a way for Mr. Nance, or to work with John Nishimura over at CWRM on how they develop those plans, I think we get to a more realistic number on the sustainable yield. In addition to—and I'm putting it out there, and this is something that Council Member Inaba and I have been trying to integrate into some of our commercial units, we had heard from a constituent who had a very bad experience down in Waikoloa with her father having suffered a heart attack. And there was no AED's (Automatic External Defibrillators) in that entire resort are. If that is something that we could also include through conditions of approval in this new commercial unit, is to provide one of those AEDs or maybe two, it actually goes a log way in life saving options because the nearest fire station I think is almost 10 minutes away. And if it wasn't for that AED, they would have had a very different situation with their father. So if that's something that you would like to consider, I'd like to also integrate that into our conditions of approval. Just being really transparent about what we're asking for. Chair, with that, I yield. CHR KIERKIEWICZ: Thank you for that. We don't have time to get into this today, but I recall somebody mentioning childcare as being a component of the Page 64 PC-19 February 8,2022 workforce housing. At our next meeting, I'd like just a little bit more clarification around what that looks like. If that's going to be tied to funding from the foundation. And then the other thing, I just ran into Ms. Boeddekker out here during recess, where she kind of talked about serving some of the timeshare membership to see if they are accessing all of the amenities within the resort footprint, and not going beyond that. If you are able to kind of share some of the result from that study, that would be really helpful. I just want to mahalo all of you for your excellent presentations, for being here, for all of the due diligence you've done in engaging community and really pulling forward a worthwhile and thoughtful plan and projects before us. We don't always get developers that are this thoughtful, this engaged, but we really feel that your hearts are in the right place. Clearly there are still some more issues to resolve, so we look forward to having another productive dialog with you in a couple of weeks. Also again just want to thank Leeward Planning Commission for their really well-done, very thorough discussion with all of you which resulted in really strengthened conditions of approval which I think we would have fought for as well. But they really did a lot of that hard work for us. So thank you so much for being with us for this late hour. Gosh, 6:18 already. Thanks everyone. Mr. Inaba, if I could get a motion to postpone,please? Vote on Motion Mr. Inaba moved to postpone Bill 112 to February 22, to Postpone: 2022. Seconded by Ms. Villegas and carried by the (Approved) following voice vote: Ayes: Committee Members David, Inaba, Kaneali`i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz—8. Noes: None. Absent: Committee Members Chung— 1. Excused: None. CHR KIERKIEWICZ: There's one more item I need to read into the record. Mr. Clerk, Bill 115. Page 65 PC-19 February 8,2022 Bill 115: AMENDS SECTION 25-8-13 (PUAKO-`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), MULTIPLE-FAMILY RESIDENTIAL— 4,000 SQUARE FEET (RM-4), MULTIPLE-FAMILY RESIDENTIAL—6,000 SQUARE FEET (RM-6), MULTIPLE-FAMILY RESIDENTIAL—8,000 SQUARE FEET (RM-8) AND VILLAGE COMMERCIAL— 10,000 SQUARE FEET (CV-10) TO PROJECT DISTRICT (PD) AT WAIKOLOA, SOUTH KOHALA, HAWAII, COVERED BY TAX MAP KEYS: 6-9-008: POR. 013, 022, 025, POR. 029 AND 033 (Applicant: Waikoloa Land Company) (Area: 133.822 acres) The Leeward Planning Commission forwards its favorable recommendation for this change of zone, which would allow the applicant to develop "Area B" of the proposed Kumu Hou project, to consist of 900 multi-family residential timeshare units, private community centers, a convenience retail center, golf support facilities, an operations facility,public parks and recreational amenities, and 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, `Anaeho`omalu and Waikoloa. Reference: Comm. 601 Intr. by: Ms. Kierkiewicz (B/R) and Comm. 601.1: From Planning Director Zendo Kern, dated January 20, 2022, transmitting the testimony and hearing transcripts from the Leeward Planning Commission's November 18, 2021, meeting and the draft testimony and draft hearing transcripts from the December 16, 2021, meeting. MS. KIERKIEWICZ: We're done for the evening. We've had quite a bit of discussion on this so I will be looking for a postponement on this measure. Vote on Motion Mr. Inaba moved to postpone Bill 115 to February 22, to Postpone: 2022. Seconded by Ms. Villegas and carried by the (Approved) following voice vote: Ayes: Committee Members David, Inaba, Kaneali`i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz—8. Noes: None. Absent: Committee Members Chung— 1. Excused: None. Page 66 PC-19 February 8, 2022 ADJOURNMENT: There being no further business, at 6:21 p.m., Mr. Inaba moved that the meeting be adjourned. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members David, Inaba, Kaneali`i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz— 8. Noes: None. Absent: Committee Members Chung— 1. Excused: None. CHR. KIERKIEWICZ: Planning Committee is adjourned at 6:21 p.m. Good work everyone Thank you. Approved: Ms Ashley L. Kierkiewicz, Chair Date Planning Committee ALK/ja Page 67