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HomeMy WebLinkAboutMIN PC 2022/11/01 2020-2022 Committee on Planning rd 33 Session Hawaiʻi County Building 25 Aupuni Street Hilo, Hawaiʻi November 1, 2022 CALL TO The regular meeting of the Committee on Planning was called to order at 3:00 p.m., ORDER: 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 Kāneali‘i-Kleinfelder, Member (came in later) Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member (came in later) 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: Nathaniel Kinney: Res. 599-22 (Comm. 1079), comment. Stephanie Donoho: Res. 599-22 (Comm. 1079), in support. (representing KCRA (Kohala Coast Resort Association)) Christopher Delaunay: Res. 599-22 (Comm. 1079), comment. Shane Nobriga: Res. 599-22 (Comm. 1079), in support. Dwight Vicente: Res. 599-22 (Comm. 1079); Bill’s 228 & 229 (Comm. 1054), comment. Pane Meatoga, III: Res. 599-22 (Comm. 1079), in support. Wendy Laros: Res. 599-22 (Comm. 1079), in support. (representing Kona Kohala Chamber of Commerce) PC-33 November 1, 2022 Ross Birch: Res. 599-22 (Comm. 1079), in support. Wayne Peerin: Res. 599-22 (Comm. 1079), in support. (representing Operators Engineers) Dean Au: Res. 599-22 (Comm. 1079), in support. (representing Hawai‘i Regional Council of Carpenters) CHR. KIERKIEWICZ: Mr. Clerk, if we could please move on to Bills for Ordinances. 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 228: AMENDS THE STATE LAND USE BOUNDARIES MAPS FOR THE COUNTY OF HAWAIʻI BY CHANGING THE DISTRICT CLASSIFICATION FROM THE AGRICULTURAL DISTRICT TO THE RURAL DISTRICT AT KAWAIHAE, SOUTH KOHALA, HAWAI‘I, COVERED BY TAX MAP KEY: 6-2-009:015 ; and Bill 229: AMENDS SECTION 25-8-7 (NORTH AND SOUTH KOHALA ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL – FIVE ACRES (A-5a) TO RESIDENTIAL AND AGRICULTURAL – TWO ACRES (RA-2a) AT KAWAIHAE, SOUTH KOHALA, HAWAIʻI, COVERED BY TAX MAP KEY: 6-2-009:015 (Applicant: Arte McCullough) (Area: 5.848 Acres) The Leeward Planning Commission forwards its favorable recommendation for this amendment to the State Land Use Boundaries Map and a change of zone, which would allow the applicant to subdivide the property into two lots with an existing single-family dwelling on each lot, for estate planning purposes. The property is located at 62-2225 and 62-2239 Ōuli Street, at the southwest corner of its ʻ intersection with Kawaihae Road, Kanehoa Subdivision in South Kohala. Reference: Comm. 1054 Intr. by: Ms. Kierkiewicz (B/R) Motion to Approve: Mr. Richards moved to recommend passage of Bill 228 on first reading. Seconded by Ms. Lee Loy. Page 2 PC-33 November 1, 2022 CHR. KIERKIEWICZ: Would the applicant and/or their representative please come forward? Committee Members, while we do have Bill 228 on the table for a discussion, I will be opening it up for a global discussion on both 228 and 229. Aloha, Mr. Arai, if you could please introduce yourself and your client for the record and provide us an overview of the request that the Committee is deliberating on today? (Note: At this time, Planning Consultant Daryn Arai and the Applicant Arte McCullough, came forward to address the members of the Committee.) MR. ARAI: Thank you very much. Good afternoon, Chair Kierkiewicz and members of the Committee. My name is Daryn Arai, I’m here this afternoon assisting the applicant sitting to my left, Arte McCullough. Also, joining us today in the chambers, is his wife Kathleen, as well the son of Mr. and Mrs. Jake Moran. The request, I would like to characterize it as like a no-foul no-harm type of rezoning. What you see there now, should this boundary amendment and change of zone be approved, will basically remain the same once a final subdivision approval is issued for this project. But regardless of what will actually happen on the ground should these requests be approved, the area itself is transitioning. The General Plan identifies the area for rural, as a rural community. Kanehoa Subdivision, within which this property resides was approved in 1985 and consists of 35 acre lots. And over the past 37 years, seven of those lots have undergone the same type of state land use boundary amendment and change of zone, as being requested by the applicant. Just makai of this subdivision, Kanehoa, is on a Kona subdivision. That was approved in 1990 and consists of 36 five-acre sized lots, and of those, 25 of those lots have undergone the state land use boundary amendment and change of zone process. So, what the applicant is asking for today is basically the same consideration within a community that is clearly transitioning into rural community. So, with that, we stand ready to answer any questions that you may have. CHR. KIERKIEWICZ: Thank you, Mr. Arai. Mr. McCullough, I want to offer you the opportunity to address this body if you’d like. MR. MCCULLOUGH: I’m sorry, I didn’t hear the question. Let me turn on my hearing aids. Page 3 PC-33 November 1, 2022 CHR. KIERKIEWICZ: No worries. I just wanted to give you the opportunity to address the Council. MR. MCCULLOUGH: Yes. Getting old is terrible. And I’m sorry, again your question? CHR. KIERKIEWICZ: No worries, I just wanted to welcome you. Thank you for being here. I’m giving you the opportunity to address this body, if you’d like. MR. MCCULLOUGH: Thank you. I know a couple of you; at 83 and been here since 1979. I’ve been around the block, we can say, and when my wife and I purchased this property 20-something years ago, we were elated. We have some ground. I didn’t realize the CPR (Condominium Property Regime), what it meant. Somebody said to me in very simple terms, it was designed for Honolulu, for buildings that went vertical. Then all of a sudden, some attorney, realtor, or whatever, decided let’s make subdivisions. Well, the scary part for me was when I learned that, should one of us—one of us being Mr. Moran or myself, get ourselves in trouble. Either the Federal Government or the State Government put a lien on our property, it would automatically lien the other. That scared me. I’ve worked real hard. We don’t own anybody a nickel. And like I said, I’m 83. I want to leave my wife a very clean slate. And this came at a recommendation from Greg Morris and Greg recommended Daryn and here we are. CHR. KIERKIEWICZ: Thank you, Mr. McCullough. I also want to note that we have our Planning Director, Zendo Kern in the gallery should members have questions. I’ll be opening it up for questions and discussion. Mr. Richards. MR. RICHARDS: Thank you, Chair. I just wanted to weigh in early on this conversation. This is my district, and I do know Mr. McCullough. I’m also keenly aware of the CPR concern that is being raised, and this Council has already approved this before in my district a little bit earlier this year. We’re seeing evolution away from the CPR to the actual subdivision which makes all the sense. You know, we have Mr. Arai here who’s very articulate in explaining the history and the direction that we’re going. So, this makes all the sense in the world. And as it was pointed out, nothing is really going to change except the paperwork. And so that’s the idea, is to clean things up for the different parties, so we don’t have a problem going forward. And I think we’ll see more and more of this at least in District 9 coming forth. So, fully support this and thanks for bringing it forward. I yield. Page 4 PC-33 November 1, 2022 CHR. KIERKIEWICZ: Thank you. Anyone else? Okay, seeing none, we have a motion on the floor to forward Bill 228 to the Council with a positive recommendation. All in favor please say “aye. Vote on Bill 228: The motion to recommend passage of Bill 228 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kāneali‘i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz – 8. Noes: None. Absent: Committee Member Chung – 1. Excused: None. CHR. KIERKIEWICZ: May I have a motion to forward Bill 229 to the Council with a positive recommendation? Motion to Approve: Mr. Richards moved to recommend passage of Bill 229 on first reading. Seconded by Ms. Lee Loy. CHR. KIERKIEWICZ: Any discussion on Bill 229? Again, this is the companion measure. No? Okay. Thank you, gentlemen, very straight forward request to resolve some land long-standing ownership issues. So, happy to be supporting this request today to support and facilitate the estate planning for Mr. McCullough. Thank you. MR. MCCULLOUGH: Thank you very much. MR. ARAI: Thank you so much, and thank you for considering us a bit early so the McCullough’s can make their way back to Kawaihae. It’s a long drive, and thanks to the rest of people in the back for giving us the opportunity to jump ahead of them. CHR. KIERKIEWICZ: Absolutely. We have a motion on the floor to send Bill 229 to the Council with a positive recommendation. All in favor please say “aye. Vote on Bill 229: The motion to recommend passage of Bill 229 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kāneali‘i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz – 8. Noes: None. Absent: Committee Member Chung – 1. Excused: None. Page 5 PC-33 November 1, 2022 CHR. KIERKIEWICZ: Thank you. Please drive safe. We will see you at first reading in two weeks. Mr. Clerk, if we could go back to the top of the agenda with Order of Resolutions. Return to Order The Chair directed the Committee to return to the order of business. of Business: ORDER OF The Chair directed the Committee to proceed to the next order of business, Order RESOLUTIONS: of Resolutions. Res. 599-22: AUTHORIZES THE EXEMPTION OF CERTAIN CODE REQUIREMENTS, PURSUANT TO SECTION 201H-38 OF THE HAWAIʻI REVISED STATUTES, FOR THE HOʻOMALU AFFORDABLE HOUSING PROJECT IN WAIKOLOA, HAWAI‘I, COVERED BY TAX MAP KEY: 6-9-008:032 (Area: 25.38 acres) Stanford Carr Development requests exemptions from the density cap set forth in Section 25-5-31 of the Hawaiʻi County Code and the applicable plan review and permits fees set forth in Sections 5-7-1 and 5-7-3, Hawaiʻi County Code, to allow for the development of 229 affordable housing units. Reference: Comm. 1079 Intr. by: Ms. Kierkiewicz (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 599-22. Seconded by Mr. Richards. CHR. KIERKIEWICZ: If I could please call forward the representative for the project, Mr. Stanford Carr, and our Housing Administrator Susan Kunz. Thank you for being here. Please introduce yourselves for the record. Mr. Carr, if you don’t mind introducing your team, your entourage that’s here for you today, and then we’ll ask that you provide us with a quick overview of the request that is before this body. (Note: At this time, Developer Stanford Carr and Housing Administrator Susan Kunz came forward to address the members of the Committee.) MR. CARR: Thank you, Chair Kierkiewicz and the rest of the Committee on Planning. Here today present as part of our team is Kanani Anton, who’s our Cultural Outreach; Sidney Fuke, our Planning Consultant; Scott Head and John Plunkett from Waikoloa Land Company; Anne Bouslog from PBR Hawaiʻi Planning Division; and Daniel Sandmeier, who will be the Project Manager of this community. Next to me to my right is Administrator Susan Kunz, and we’ve been refreshingly working with her and her team in preparation of this hearing with the Office of Housing and Community Development. Page 6 PC-33 November 1, 2022 MS. KUNZ: Thank you. I’d just like to make a few comments and then I’m going to go ahead and turn it over to Stanford and his team. I wanted to let the Council know that the Office of Housing is here today to support this resolution, which will allow certain exemptions to be made for the proposed housing project in accordance with HRS-201H-38 (Hawai‘i Revised Statutes). The proposed project at Hoʻomalu, Waikoloa is a 100 percent affordable housing project, which will offer 229 units at the affordable rate to working families earning no more than 100 percent AMI (Average Median Income). This project is being developed as a response to a housing condition which was mandated during the rezone of the Kumu Hou project district. The current zoning allows for the developer to construct no more than 142 units. However, that same ordinance required that the owner complete a 201H application and go through this process so that a higher density could be reached. The developer and his team are here today to fulfil that obligation. The request being presented today is for the exemption to the Zoning Code, which would allow the developer to build 229 units instead of the 142 original. It will also waive plan-review fees and building permit fees. So, thank you very much and thank you for your work, Stanford, and I will turn it over to Stanford. CHR. KIERKIEWICZ: Thank you, Administrator. Council Members, you should have a copy of the slide deck in your folders. MR. CARR: Good afternoon, everyone on the Committee. (Note: At this time, Mr. Carr provided a PowerPoint presentation to the members of the Committee. For viewing of subject presentation, see the DVD copy of the meeting proceedings on file in the Clerk’s Office, or navigate to the Council’s video archives from the County’s homepage at www.hawaiicounty.gov. A copy of the PowerPoint presentation is made a part of the record, see Comm. 1079.2.) CHR. KIERKIEWICZ: Thank you, Mr. Carr for that overview of the project and the request that we are considering today. Just to remind my colleagues, this is a 201H application, and so this is one of the tools that the Legislature has created to expedite affordable housing production. We are under a timing element. We, as the legislative body have 45 days to review and approve; approve with modifications or deny this particular application and where we are with our Council term. That leaves us with one more Council Meeting in Kona two weeks from now to make a decision on Resolution 599. So just wanted to make sure that folks were aware of where we are with the timing piece. That being said, I’m going to be opening it up for Page 7 PC-33 November 1, 2022 questions and comments from my colleagues. Mr. Richards, your light was on first, you have the floor. MR. RICHARDS: Thank you, Chair. Thanks, Mr. Carr, for giving a very comprehensive explanation of the project you’re trying to deliver. First thing I want to start with is size of your day care. How many kids? I assume you have it scaled to some number. MR. CARR: I believe anywhere between 50 and 100. It’ll be 100. There’s four classrooms that’ll accommodate 25 children per classroom. MR. RICHARDS: And if I heard correctly, I guess conceivably you could have a 100 kids out of the whole development, but theoretically it’s—Chair, audio seems in and out. CHR. KIERKIEWICZ: We’re going to take a quick five-minute recess. I just got a note, that we are frozen on-line. Could we just make sure the streaming is working and if you stopped the screen-share? Going to take a quick two-minute recess. Thank you. Recess: At 3:58 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 4:02 p.m. CHR. KIERKIEWICZ: Alright, thank you very much. I’m calling this meeting back into Committee. We’re out of recess at 4:02 p.m. Okay Mr. Richards, you have the floor. Thank you. MR. RICHARDS: Thank you, Chair. So we were discussing, Mr. Carr, the size of the day care, and you said 100, and that’s when we started to freeze up. MR. CARR: Yes. There’s four classrooms as well as restroom facilities; a full kitchen, a recreation room; outdoor covered lanai. We can accommodate 25 students per classroom, so 100 children. MR. RICHARDS: Okay, and the plan is to—if there’s room to open it up to, not to just the people living there but outside as well, correct? MR. CARR: Correct. Including those who work within the resort community as well. MR. RICHARDS: And so then okay, concerning the—you know, I have to compliment you on your portfolio of what you were talking about. The AMI. So often with the affordable housing, we see 140 percent being used under affordable, and it’s really not. Page 8 PC-33 November 1, 2022 But I have to commend you, because what you did was you took that 65 percent right at the 30-60, and so I commend you for that. That is actually being very, very mindful of that. MR. CARR: Yes. My pleasure. MR. RICHARDS: Concern on the size of the project, one of things you’re here before us today, is to have an accommodation for increasing the size, the total number of units. The layout that you gave us, I’m assuming this is reflective of the 229 that the proposed project is. MR. CARR: That’s correct, Sir. MR. RICHARDS: Okay. And so, it all fits into this? MR. CARR: That’s correct, Sir. MR. RICHARDS: Okay. Alright, thank you. And then, as far as the management of the unit itself, is that something that’ll come under Waikoloa, or is that going to be coming under—? MR. CARR: No, we typically contract with a third-party property manager. We use Hawai‘i Affordable Properties, which actually started on the Big Island, Mike and Charlene. So, will more than likely work with them. They’ve done a good job. They’ve managed approximately 1,500 rental apartments for us on three different islands and seven different properties. MR. RICHARDS: Okay, and where I’m going with that question, is some of the problems with affordable housing is if we have a single individual that says that one of your—where I’m going with that though, is with the management, sometimes some of the projects, if they have a single bedroom and then the individual either has a family now and needs to upgrade, sometimes if they’re in one of these projects, they’re not allowed to apply for a second larger size. Is that going to be allowed in this project, or is that something to work out? MR. CARR: There are strict guidelines, because this program is an IRS (Internal Revenue Service) Code, Section 42, there are income limitations. We go through and randomly audit annually with a third-party consultant that’s hired by HHFDC (Hawai‘i Housing Finance and Development Corporation), as well as we’re also subject to a regulatory agreement by HUD (Housing and Urban Development). This is an FHA (Federal Housing Administration) loan that we utilize so there are strict compliance measures with respect to the income limitations and household size. So as long as the household size falls within the—and the number of people in the house fall within the 60 percent of the area median income translation, they Page 9 PC-33 November 1, 2022 conform, they would comply. If that certain person’s income is too high they would not be permitted. MR. RICHARDS. And that makes sense, you know, as you talked about, I think you said about 15 percent are now ownership and able to purchase a house. So, if they can graduate out, that’s what we’re trying to do here, right? MR. CARR: Correct. The beauty of these types of projects, and we own a number and developed a number of them, is that it’s great for young people. Whether they be single or young couples, because they may qualify based on the income limitations of their jobs today. But as their earning power grows and they get promoted, they are not forced to kick out. So, they can start actually saving a down payment to move up the housing ladder and become a first-time home buyer, which is why, one of the reasons why we created Komohale Services is to provide access to financial literacy, homeownership counseling. Any households that earned 80 percent of the area median income can become first time home buyers. MR. RICHARDS: Okay, which is the final question, statement. It’s kind of a wraparound deal. You’re trying to get young people started; get them up, get them saving, then get them into permanent housing. Taking care of that next generation. So, Chair, I’m going to yield right now. I am very excited about this. This is the right direction. Waikoloa, I’m ecstatic because this is a new way to look at development. Again, taking care of the community while we’re taking care of the business. So, thank you Chair, I yield. CHR. KIERKIEWICZ: Thank you, Council Member Richards. Council Member Inaba. MR. INABA: Mahalo. Mr. Carr, thank you for bringing this back to us so quickly after having passed the rezoning bill earlier this year. To the fee exemptions, you said approximately $227,000. MR. CARR: It was $225,000, approximately. MR. INABA: Okay, and that’s for the plan review fees and the building permit fees combined? MR. CARR: That’s correct. MR. INABA: Okay, thank you. I think it’s wonderful. When it comes to the childcare services, do we have an idea as to the rates at which we’ll be charging folks? I mean, will the folks who live there and work in the resort be able to afford childcare services? Page 10 PC-33 November 1, 2022 MR. CARR: That’s correct. That’s the whole intent and purposes. MR. INABA: Wonderful. Perhaps through the Office of Housing similar to a request for the Finance Department earlier, if we can get approximate numbers for the fees that are being requested to be exempted put into this resolution, I think it benefits us and transparency, because right now we’re just exempting fees. And if we have an amount I think it should be put in. So, a humble request and look forward to supporting this. Thank you, all. CHR. KIERKIEWICZ: Administrator Kunz, did you want to say anything for the record regarding that request? I saw you nod. MS. KUNZ: So yes, there are estimated fees that can give you an idea. So, for the plan review fees, they’re estimated about $37,540. The permitting fees are estimated about $187,701. That’s it. CHR. KIERKIEWICZ: Council Member Inaba. MR. INABA: Sorry, I’ll just ask since she’s here at the table now. Would we be able to get that presented in this resolution, or an amendment to Exhibit A, so we know exactly what we are committing to here? Or, you know, not the exact amount but an approximate amount? MS. KUNZ: An estimated number? I can make sure that that’s included. No problem. MR. INABA: Thank you very much. Chair, I yield. CHR. KIERKIEWICZ: Thank you. Anyone else? Chair David. MS. DAVID: Thank you, Chair Kierkiewicz. Mr. Carr, thank you so much for that presentation, and reconfirming what was already discussed when you folks were first before us. And just wanted to ditto what my Council Members have expressed on this project. Specifically, I’ve seen a lot of 201H requests that come forward before this body and it’s usually asking for the moon. In this situation, this is very reasonable, especially when you’re increasing the number of units, and you have an exemption for that. That’s great. So, it really shows that you have good intentions and community minded spirit about this project, and I really appreciate that. As far as the fees, I think if it’s made part of this—like Mr. Inaba says, I think the transparency and the explanation will be self-evident for anyone else that comes to this Council after Mr. Chung, and I leave when this is finally settled. So, I Page 11 PC-33 November 1, 2022 want to thank everyone for doing a good project like this and setting an example for future developments that benefit the community and our workforce. MR. CARR: Thank you for your kind words. MS. DAVID: Mahalo for everything you folks do. I yield. Thank you, Ms. Kierkiewicz. CHR. KIERKIEWICZ: Thank you, Chair David. Anyone else? Council Member Villegas. MS. VILLEGAS: Sure, I just want to kind of second that and concur. Really appreciate your authentic intention and taking the request that we had spoken about prior and activating them by increasing the number of units that would be provided, going above and beyond by looking at current market needs when it comes to childcare and taking care of our people with that capacity. I know a lot of people who are excited already about this and for the potential of either them or their families for this to provide housing. I also have a personal and professional hope that this could somehow become a model and a template for what would just be included in future development projects and capacities. Mr. Carr, you have a reputation as being a businessman who operates with integrity, and you’ve established yourself with a level of expertise in navigating a housing sector that can otherwise be full of landmines, no pun intended. So, thank you for taking the initiative; for stepping up and for all the efforts of everyone on this team, regardless of if we’ve agreed on all things, all times, but to put this earnest effort forward. I’ll be supporting wholeheartedly, and I also really agree with the inclusion of what those fees are. So, somebody just looking in layman’s terms would be able to understand, and I think anyone would see the value related to the project versus foregoing of those fees for the County. So, thank you for this. MR. CARR: Thank you very much for those kind words. CHR. KIERKIEWICZ: Thank you. Council Member Kimball. MS. KIMBALL: Thank you. Thank you, everyone for being here and your patience today. And that’s quite an impressive shirt, I just had to say, it’s very colorful. MR. CARR: My wife does all my shopping. Page 12 PC-33 November 1, 2022 MS. KIMBALL: I had two questions. One, just because it was brought up again and again in the hearing initially on the rezone. You have quite the extensive archeological survey. I’m assuming that this drawing that we have before us takes into account that survey. This is very close to the final footprint that you guys are anticipating? MR. CARR: That’s correct. We actually designed a second building, a three-story building in order to have a more compact footprint in order to respect the sensitive areas and to have a significant buffer from those sites. So, we have had our discussions and vetted this, and worked with our archeologists as well as some of the lineal descendants. MS. KIMBALL: Okay, great. And then for the site, was there any review of—I don’t know if this falls into the area where there might be potential for unexploded ordinances. Has it been reviewed for that as well? MR. CARR: No. I have no knowledge of any historical potential unexploded ordinances much like we found out up in Waikoloa Village, yah. MS. KIMBALL: Right, right. MR. CARR: I don’t believe there’s been any military exercises in this area. MS. KIMBALL: Okay, okay. And I see your PBR representative at the back nodding, in concurrence with that. MR. CARR: Thank you. MS. KIMBALL: And then you folks will be earning housing credits for this through our Chapter 11 process through this development? MR. CARR: Any housing credits produced will remain with Waikoloa Land Company, not with us. MS. KIMBALL: Okay. Thank you for clarifying. Director Kunz or anybody from Waikoloa Land Company, do you know how many credits are being generated from this project? Because it’s not a one-to-one— MS. KUNZ: I believe Waikoloa Land has already met all of his housing requirements. MS. KIMBALL: No, I’m aware of that, but they’re still earning credits for this by producing— Page 13 PC-33 November 1, 2022 MS. KUNZ: I don’t believe that there’s a housing agreement for this. So, I don’t believe there’s any credits being earned. MS. KIMBALL: Okay, that was not my recollection from the hearing on the rezone. Would you just confirm that next time? MS. KUNZ: Can I double check with my staff? I will do that and report that at the next meeting. MS. KIMBALL: Great. Thank you very much. Okay, great. I’m just asking these questions for transparency and to make sure we have all the details that, you know, like my colleagues, this is very sorely needed in this area. I love that it’s going to keep people close to shopping; people close to their work; reduce those vehicle miles traveled, which is good for families, good for the environment, good for all of us. So, happy to support this moving to Council and just look forward to that one clarifying question. Thanks Chair, I yield. CHR. KIERKIEWICZ: Thank you. Council Member Kāneali‘i-Kleinfelder. MR. KĀNEALI‘I-KLEINFELDER: Thank you, Chair. Thank you today for the presentation and for everyone being here. Good representation by everyone involved. Couple questions for you. Mass Transit Agency (MTA) requested or proposed a bus shelter. What was the final on the bus shelter within the development? MR. CARR: Our response says, we don’t feel it is appropriate for this smaller in- fill community. My understanding is that Waikoloa Resort has a very robust trolly system within the community that people can hop on and hop off. And if there were to be any bus stop, I would imagine a practical place would be in front of the Queens’ Market, and not having—I don’t believe any mass transit bus would intentionally drive into this community to pick up or drop off anyone. MR. KĀNEALI‘I-KLEINFELDER: Okay, thank you. HDOT (State of Hawai‘i, Department of Transportation) requested a more robust multimodal transportation fund. MR. CARR: I believe that Waikoloa Resort in itself has a very robust multimodal transportation program that exists today. Again, this is a workforce rental community. You know, as their further options grow within multimodal, I’m sure that people have a lot more options than they do today. I know on Oʻahu, we were one of the first adopt a car-share program with Servco and the Hui, so they actually have six stalls in one of our complexes with trucks for electric cars. And we also work with a couple other vendors in our rental communities where some families have actually given up a car and relied on hill-riding, Uber Lyft, or bus; Biki bike or the Hui. Page 14 PC-33 November 1, 2022 MR. KĀNEALI‘I-KLEINFELDER: Okay. I appreciate the comments by HDOT and MTA because they’re trying to create, like you are as well, a livable community. And that involves getting our workers who need the housing, to and from jobs, yeah? It’s that crucial element. I mean, how do they get to work? One of our testifiers said, sleeping in cars. And this housing is to defray that. Give people a place to live, but we’ve got to make sure we do our job future planning and try and incorporate all the different elements like multimodal transportation. MR. CARR: I believe their trolley system within the resort would assist people who live here, the ability to not have to jump in their car to go to one of the hotels that they may work or the golf course. MR HEAD: Good afternoon, Council Members. I’m sure you’re very excited to see John and I here again. CHR. KIERKIEWICZ: Mr. Head, if you could just introduce yourself for the record. (Note: At this time, Scott Head of Waikoloa Land Company came forward to address the members of the Committee.) MR. HEAD: My name is Scott Head with Waikoloa Land Company. We don’t have a transportation system within the resort that’s open to the public per se. There are private shuttles that are used by the hotels and the shopping centers. The intent was to provide access to Waikoloa Beach Drive. We have nearly, I believe, it’s 40 Hele On busses that come into the resort on a daily basis. This project’s approximately 1,200 linear feet from Waikoloa Beach Drive, and that’s how people take advantage of the public mass transit system. The expectation is this project would operate in the same mode. Although I would like to say, I think it would be beneficial if Mass Transit could pull into this project. You have over 500 residents living there that will be working along the Kohala Coast, and it has been designed in the porte cochère to have the radius for a bus to turn around. Envision that, in addition to the height of the porte-cochère. So, if I could just put that on the table, and I’m sorry to get up here and contradict you. MR. CARR: It takes a village. MR. HEAD: Yes, thank you. MR. KĀNEALI‘I-KLEINFELDER: Thank you, Mr. Head. I really appreciate that comment, and that’s exactly what I was shooting for. So, I’m putting it out Page 15 PC-33 November 1, 2022 there because we’re having the conversation. It does take a village, and we’re building a village with the intent to give people a place to live. How do they get to where they’re going? And we’re trying to build ridership on our busses at the same time. So, good possible collaboration, yeah? Looking over your Exhibit A, your cost for your project. Within that build cost was two-line items for $4.8 million, exactly the same amount. Is that a typo? It’s in the project costs for construction and building. MR. CARR: What line item would that be? MR. KĀNEALI‘I-KLEINFELDER: This is in the body of the reso, sorry, of your exhibit, which is this bugger. MR. CARR: Okay, if you could just direct me to the category. We categorize all our costs. It’s like, the headline was: Soft Cause, Financing, Interim Costs. MR. KĀNEALI‘I-KLEINFELDER: This was under the Exhibit A Project cost, budget worksheet for Rehabilitation and New Construction; you have Contractor Profit at 3.8 percent of the project at $4.8 million. And right underneath of it, another line item that’s exactly the same. Is that just a drop down or is that a typo? MR. CARR: That’s general requirements. We’re going to have a general contractor build this out. So that general requirements is their overhead. Their administrative fees, their superintendents, you know, all their indirects that’s part of their responsibility; equipment leasing and so forth. And so, profit is a separate line item, period. MR. KĀNEALI‘I-KLEINFELDER: And so, the Contractor Profit right under that Contractor General Requirements is exactly the same amount. Usually when you see those, either it’s a mistake or exactly the same and it’s rare. MR. CARR: They used five percent of the overall—it’s the same assumption of five percent of the total build out total cost. So, it just worked out coincidentally at the same number. It’s not a duplication. MR. KĀNEALI‘I-KLEINFELDER: Okay, thank you. Good answer. And then the developer’s fee came in at $9 million. So, about seven percent of the total project? MR. CARR: Yes, correct. Page 16 PC-33 November 1, 2022 MR. KĀNEALI‘I-KLEINFELDER: Okay. And I’m looking at these numbers because this equals out to our affordability and total costs of the project. I’m just going through it. MR. CARR: Sure. MR. KĀNEALI‘I-KLEINFELDER: Thank you. Talk to me a little about Komohale. That’s an organization, nonprofit run by? MR. CARR: Pam Witty-Oakland who’s the Executive Director. She has been for nearly two years. MR. KĀNEALI‘I-KLEINFELDER: Okay, and it falls under Stanford Carr? MR. CARR: Actually, it’s a separate 501(c)(3) nonprofit organization that Stanford Carr Development funded and seeded to get it started. MR. KĀNEALI‘I-KLEINFELDER: Okay, thank you. I heard it mentioned, but I wasn’t sure how they’re linked. MR. CARR: Yeah, it’s a completely separate entity. I have actually no—I do not sit on the board. It’s made up of other board members. So, it’s very separate, being under a 501(c)(3) nonprofit entity. MR. KĀNEALI‘I-KLEINFELDER: Thank you. And you already touched on the plan review fees and the building permit fees. Thank you. And then the last one is just the numbers, but the document refers to 228 units, but the resolution says 229. MR. CARR: One resident manager unit. MR. KĀNEALI‘I-KLEINFELDER: Okay, that’s the difference. Okay. Well, if we can, I’d love to see some incorporation of Mass Transit’s comments for a bus shelter tie in using County funding. Anything we can do to provide that more multimodal transportation to get people in and out and utilize what we already have, and County infrastructure; and your development as we go forward. That’s my one request. Appreciate your time in reaching out to us as Council Members. I can see it in your documents you submitted, but you’ve touched bases with all of us. I think you guys are doing a good job, and I appreciate the thoroughness of what you put in front of us today. Thank you for being here. MR. CARR: Thank you. Alright. Page 17 PC-33 November 1, 2022 CHR. KIERKIEWICZ: Thank you. Council Member Chung. MR. CHUNG: Real quickly. You know, I was upstairs for most of this discussion. Nice to see you again, Mr. Carr, after all these years. You know, my back has been aching, but I was watching most of the meeting, and I’ve got to say, I was very impressed by the thoroughness of your presentation. Answered all of my questions and then some. But you know, what I wanted to do, I really wanted to come down here and place my vote of confidence on this measure, and then I’m going to go back upstairs and rest again. Because, you know, particularly in response to something that you had made to Mr. Richards. You know, you were talking about first-time buyers and how, you know, you guys try to help them out. This is a local developer, you know. He’s got local sensibilities and I mean from my experience, he’s always trying to do stuff that’s right for our Island, our State. You know, this project and all its nuances and everything is just a reflection of your good attitude towards development. So, I just wanted to say that. I’m looking forward to voting in favor of it, you know, here and at Council, and right after that I’m going to go back upstairs. MR. CARR: Understand. Thank you very much. CHR. KIERKIEWICZ: Okay, Council Member Chung. Anyone else? Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. Yeah, looking forward to putting my stamp of approval on this one, too. Like the rest of my colleagues, I do want to see that calculations on the fees. And not just the amounts; how we calculated them, because I’m looking at your budget worksheet and doing a thumbnail sketch of the different fees that I know would be applicable. Not only building permit fees, but by size along with inspection fees. I’m curious because this is the area of that return on investment and the value, right? The value of why we can offer housing at this very low and very moderate income price point, because so much of that is being taken out up front through the 201H project. Those are my only comments. You know, that had an opportunity to work with Pam also, and all the nonprofit work that we do here on Hawai‘i Island. So, knowing that Pam has already reached out to some of our nonprofits that do the good work over here and also know the community well, they can actually bridge that real quickly, whether it’s Pam or another organization, or multiple nonprofit organizations. But thank you, it’s so good to see you in person too, Mr. Carr. We’ve seen you on Zoom for a long time. Chair, I yield, but you have my support. Thank you. Page 18 PC-33 November 1, 2022 MR. CARR: Thank you very much. CHR. KIERKIEWICZ: Thank you, Council Member Lee Loy. Alright, any other final questions, comments? Mr. Carr, thank you and your team for being here today. Just, mahalo nui for getting it done. I think, you know, we had the ordinance before us for the larger project earlier this year. And I was really pleasantly surprised to be getting a call from your office about, “Hey, let’s talk story about the 201H that we’re going to be submitting.” Thank you for making it happen so quickly and for just being a solid guy. So many people that I respect, respect you. I can really see the passion come through in your presentation today in not just building housing, but really building community and helping all of our local families build up that generational wealth in realizing, potentially, homeownership one day. So, thank you. I think the project that you have described for us today, all the ingredients to be a successful development. I think it really sets the bar high for us for when future developers come forward, the expectation that we have in engaging community and creating a project that really creates a sense of community. So, thank you for all of the time and investment that you’ve put in creating this project. Happy to be supporting it and moving it forward to Council. MR. CARR: Thank you for having me and the opportunity. Aloha. CHR. KIERKIEWICZ: Yes. And thank you, Administrator Kunz for all the work that your office has done to kind of facilitate the agency review on the County and State level. I know it takes a lot to kind of shepherd all that and make that happen. So, glad that we’re able to review this application today. Thank you. Alright Council Members we have a motion on the floor to forward Resolution 599 to the Council with a positive recommendation. All in favor please say “aye.” Vote on Res. 599-22: The motion to recommend adoption of Res. 599-22, (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kāneali‘i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz – 9. Noes: None. Absent: None. Excused: None. CHR. KIERKIEWICZ: Motion carries. We will see you in two weeks for final reading. Page 19 PC-33 November 1,2022 ADJOURN- There being no further business, at 4:32 p.m., Mr. Inaba moved to adjourn the MENT: meeting. Seconded by Ms. Lee Loy, and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kaneali`i-Kleinfelder, Kimball, Lee Loy, Richards, Villegas, and Chair Kierkiewicz—9. Noes: None. Absent: None. Excused: None. CHR. KIERKIEWICZ: We are excused at 4:32 p.m. Mahalo nui. Approved: 1 f2f (i)— Ms. A -.'ey L. Kierkiewicz, Chair (Date) Planning Committee AK/dt Page 20