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HomeMy WebLinkAboutCOM 0601.025 2020-2022 Ashley L.Kierkiewie o�`Y or Z �q•.-- w, Office:(808)961-8265 Council Member Fax:(808)961-8912 District 4 Puna +;� �# ashley.kierkiewicz@hawaiicounty.gov �rE oF•N'.�► i i HAWAII COUNTY COUNCIL Hawaii County Building 25 Aupuni Street Hilo,Hawaii 96720 MEMORANDUM --� DATE: April 1, 2022 r� a1 I TO: Maile David, Council Chairperson '` And Members of the Hawaii County Council I FROM: Ashley L. Kierkiewicz, Council Member SUBJECT: Additional Material-Bill No. 115 i Please see the attached letter as additional material to be presented with Bill No. 115 during the April 6, 2022, Council meeting. i Mahalo. AK/j s i Comm o Ref. To Serving the Interests of the People of Our Island � � Mawai`i County is an Equal Opportunity Provider and Employer Ref. Ded i WAIKOLOA March 28, 2022 Honorable Maile David, Council Chair CD Honorable Ashley Kierkiewicz, Planning Committee Chair ; County Council COUNTY OF HAWAII 25 Aupuni Streeti�r Hilo, Hawaii 96720 Honorable Chair David and Honorable Planning Committee Chair Kierkiewicz: Subject: Proposed Conditions -Bill No. 115, Draft 2 (Kumu Hou at Waikoloa) At the Council's meeting of March 23, 2022,the Council approved the subject bill on first reading, with an added amendment to proposed Condition II relating to the insertion of the SHPD number assigned to the Kings Highway Foot Trail. In conjunction with the second reading on the amended bill, however, it is our understanding that the Council will be considering three (3)possible amendments which are attached. In sum, these amendments relate to: 1. Condition GG relating to the Applicant's plans to reduce the potable water demand on the Waimea Aquifer through implementation of its water conservation and new irrigation system. We had suggested an amendment of a clarifying nature, and the Council elected to defer action on this pending receipt of a"clean" version of the proposed amendment. In that regard, we would like to propose some editorial amendments that replace the term"will"to "shall" and"reduce"with"offset". Further, as well as one clarifying how this program would be monitored by the Planning Department. This language, when queried by the Council at the last meeting, the Planning Director noted that it addressed his concern. 2. Condition II relating to the Waikoloa Foundation. Chair David noted her reservations regarding its legal and precedential appropriateness as a condition of the zoning. The Applicant understands and can accept those reservations. At the same time, it wants to find a way to assure the Council and the public in a very transparent manner that it 150 Waikoloa Beach Drive e Waikoloa, Hawaii 96738 ® Phone (808) 886-1000 ® Fax (808) 886-8896 Honorable Council Chair David Honorable Council Planning Committee Chair Kierkiewicz March 28, 2022 Page 2 remains committed to doing what has been represented in the original draft of proposed Condition II. In that regard,the Applicant proposes to replace the existing proposal with a new one as noted in the attached. The new proposal would require the Foundation submit a correspondence to the Planning Director, with a copy to the County Council, which addresses and outlines the mission and objectives of the Foundation. While for information purposes only,that correspondence should clearly indicate the Foundation's commitment to, among other matters, help the broader community in the way of affordable housing and destination management initiatives, as well as enhancing the delivery of potable water to support residential development in the North and South Kohala Districts. In the interest of transparency and accountability, the condition would also require that the Annual Progress Report(Condition DD) specifically include a discussion of the status of the Foundation relative to its mission and objectives. As a public document, all would then be informed as to how the Foundation is performing with respect to its stated mission. 3. Condition Z relating to the Workforce/Affordable Housing. This condition is already included in Draft 2 of Bill No. 115, which was approved for first reading. At the March 23 meeting, Councilmember Inaba proposed an amendment (Comm. No. 601.16) to that condition. As we were only made aware of that amendment at that meeting and did not have a reasonable opportunity to digest and review it internally among other affected parties,the Council did not act on the proposed amendment to give the Applicant a chance to review and comment on it. While we appreciate the concerns of Councilmember Inaba as expressed in his proposed amendment, we cannot agree with the amendments. However, we do admit that two (2) items have caused us to pause and to revisit. These relate to the number of units and timing of their delivery. In sum, Councilmember Inaba's proposal, among other matters, deletes the reference to "As represented by". It also, while calling for an agreement, does not identify with whom, and usually it would be with the County Office of Housing and Community Development. It also mandates the construction of 250 more units within the Resort, while removing the opportunity for a 201H application. Finally, it required that all 150 Waikoloa Beach Drive ® Waikoloa, Hawaii 96738 * Phone (808) 886-1000 + Fax (808) 886-8896 Honorable Council Chair David Honorable Council Planning Committee Chair Kierkiewicz March 28, 2022 Page 3 and not a portion of the 140 units be delivered before occupancy of the first time share unit. We have since communicated our thoughts with Councilmember Inaba and would like to share them with the Council as well as offer some suggested amendments to Condition Z that deal with the matter of additional units and timing of their delivery. First of all, it is only appropriate that a housing agreement be executed between the Developer and the County through its Office of Housing and Community Development. Such an agreement is necessary whereby rental rates,penalty, and other terms would be clearly outlined. This is a standard requirement, as with all other County-approved affordable housing projects Further, we believe that some of the legal concerns the Chair expressed with respect to the proposed condition on the Waikoloa Foundation also apply here. Specifically, conditions must meet the Constitutional and/or legal test or tenets of"nexus" and proportionality." In that regard, while the proposed workforce and affordable housing can be argued to have a"nexus"to Kumu Hou,the matter of proportionality"must still be addressed. The Resort has already fulfilled its affordable housing obligation, which was predicated upon the Resort's overall density of 6,365 units; and the Kumn Hou project, if approved,would fall within that density cap. The Resort fulfilled this obligation in two (2) ways—first in the donation of a 3+/- acre multiple-family zoned land within Waikoloa Village in 1981, which is the site of the Jack Hall Memorial rental housing project. The other was through the donation of 300 acres of single- family residential zoned land in 1991 that is the site of the County's developing Kamakoa Nui Housing Project. Thus, any requirement could trigger an argument that the "proportionality"tenet has been breached. Notwithstanding that proportionality tenet, the Applicant still proposes to provide a minimum of 140 workforce/affordable rental housing with emphasis on 60% or lower AMI group, as outlined in Condition Z. To minimize the chance of any potential proportionality" challenge, the Condition has been worded with the caveat of, "As represented by". This caveat would clearly indicate that this condition is the result of 150 Waikoloa Beach Drive Waikoloa, Hawaii 96738 Phone (808) 886-1000 Fax (808) 886-8896 Honorable Council Chair David Honorable Council Planning Committee Chair Kierkiewicz March 28, 2022 Page 4 representation and commitment of the Applicant and not the result of a Council mandate. The existing condition already reflects the Applicant's commitment for a minimum of 140 units within the Resort and if the designated site cannot support that number, on another suitable property within the Resort. The Applicant further believes that having 140 affordable housing units, especially within the Resort, is a win for the community. As such, it has represented that if the designated site can accommodate more than 140 units, subject to the approval of a 201H application,the Applicant would provide more units on that site. Thus, retention of this provision is critical to enhancing the opportunity for more units within this 100% affordable rental community. Taking all matters into consideration,the Applicant would like to recommend amendments that address these two (2) items—additional units and timing of their delivery. Specifically,the Applicant is willing to: • Cause the development of an-additional 60 units on TMK: 6-9-008:032, provided that the appropriate relief from the zoning and pertinent development codes are secured through the approval of a Section 201H, Hawaii Revised Statutes application. Secondly,there are no on-site,particularly archaeological and cultural constraints that would preclude the development of 200 units. While an AMI mix is not specified for these additional units, they would still be subject to the County's Affordable Housing Guidelines. • Deliver the first 140 units prior to issuance of occupancy permit for the first time share unit and any additional units as feasible and permitted on TMK: 6- 9008: 032, no later than the issuance of the 451"time share unit. Working off of the language the approved draft 2 of Ordinance No. 115, we prepared the attached draft of proposed amendments to Condition Z incorporating the above representations for your consideration. 150 Waikoloa Beach Drive e Waikoloa, Hawaii 96738 ® Phone (808) 886-1000 ® Fax (808) 886-8896 Honorable Council Chair David Honorable Council Planning Committee Chair Kierkiewicz March 28, 2022 Page 5 We look forward to discussing these proposed amendments/requests and responding to any questions you and the Council may have at its April 6 meeting. In the meantime,however, if you have any questions, please feel free to contact me or our local planning consultant, Sidney Fuke. Thank you very much! Sincerely, S TT HEAD Vice-President Enclosure Copy—All Councilmembers w/enclosure via email Mr. John Plunkett, Waikoloa Land Company w/enclosure via email 150 Waikoloa Beach Drive Waikoloa, Hawaii 96738 ® Phone (808) 886-1000 ® Fax (808) 886-8896 i i i PROPOSED AMENDMENTS TO BILL NO. 115 ( DRAFT 2) I (Bracketed items to be deleted; underscored to be added) i I Condition GG (Water) "The applicant [will] shall effect conservation and/or new irrigation systems within the Resort that [reduce] offset the Resort's overall potable water j I draws from the Waimea Aquifer System by at least 540,000 gallons per day, with such measures to be phased in over time, [in measures at least proportionate to the development within the area covered by this i ordinance] with the amounts of new potable water draws from the aquifer attributable to development within the area covered by this j ordinance being at least offset by conservation measures undertaken throughout the Resort as a whole, in any given year. A detailed report outlining the proposed conservation measures with implementation j a timetable shall be provided to the Planning Department in conjunction with the Annual Progress Report requirement of Condition DD and its updates." i I Condition Z (Affordable[Workforce Housing) Condition Z: As represented by the Applicant, the Applicant shall cause the development of a minimum [of] 140 units workforce housing on a property identified by TMK: 6-9-008:032 and/or other properties within the resort in accordance with mutually agreeable terms between the Applicant and the County through its Office of Housing and Community Development. i I i i i i Further, as represented by the applicant, an additional 60 units would be constructed on TMK: 6-9-008:032 provided that the appropriate reliefs if needed, from the zoning and pertinent development codes are secured I through the approval of a Section 201 H, Hawaii Revised Statutes, application and there are no on-site, particularly archaeological and cultural constraints, which would affect the ability of the site [or sites] to accommodate these I additional units. The workforce housing project shall be rented pursuant to affordable housing guidelines established by the State of Hawaii, Hawaii Housing and Finance Development Corporation, for a minimum of 65 years from initial occupancy of the first unit and shall include a minimum of 2 electric vehicle charging stations and accommodation for on-site childcare for the completed development. Of the initial 140 units, s[S]ixty (60) percent [of the total units] shall target households earning 30% to 60% of the prevailing County Area Median Income (AMI) with the balance targeting households earning up to 120% of RMI. Any additional units shall be rented in accordance with prevailing affordable housing guidelines. Final terms shall be established in a workforce housing agreement executed between the County and the Applicant and/or its successors or assigns and shall include the Applicant's infrastructure construction and land conveyance obligations and operational considerations such as tenant income and other eligibility criteria. i I i An occupancy permit for [the first phase of the] a no less than 140 unit workforce housing project shall be obtained no later than issuance of an occupancy permit for any time share unit within the area covered this ordinance. Any additional units on TMK: 6-9-008:032, if feasible and permitted, shall be completed prior to issuance of occupancy permit far j the 451St time share unit within the area covered by this i I ordinance. I I Conditions DD, EE, and II (WAIKOLOA FOUNDATION) Amend proposed new Condition II and existing Conditions DD and EE: • Replace proposed Condition II with the following: "Within 90 days of the effective date of this ordinance, the Applicant shall submit a correspondence to the Planning Director, with a copy to the County Council, which addresses the mission and obiectives of the Waikoloa Foundation. • Amend Condition DD relating to Annual Progress Report as follows: "An annual progress report shall be submitted to the Planning Director prior to the anniversary date of the approval of this Project District Ordinance. The report shall include, but not be limited to, the status of the development and the extent to which the conditions of approval are being satisfied. It shall also include a discussion of the Waikoloa Foundation's initiatives, particularly as they might relate to support affordable housing, destination management initiatives, and potable water needs to support residential developments { within the North and South Kohala districts.