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HomeMy WebLinkAboutMIN LAAC 2024/04/30 (2022-2024) Committee on Legislative Approvals and Acquisitions 25th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii April 30, 2024 CALL TO The regular meeting of the Committee on Legislative Approvals and Acquisitions ORDER: was called to order at 9:01 a.m., in the Council Chambers, Kailua-Kona, by Mr. Holeka Goro Inaba, Chair. ROLL CALL: Present: Mr. Holeka Goro Inaba, Chair Ms. Michelle M. Galimba, Vice Chair(via videoconference Hilo) Ms. Cindy Evans, Member(came in later) Ms. Jenn Kagiwada, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Ashley L. Kierkiewicz, Member(via videoconference Hilo) Ms. Heather L. Kimball, Member(came in later; via videoconference Hilo) Ms. Susan L. K. Lee Loy, Member (came in later) Ms. Rebecca Villegas, 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: Reyna Hayashi: Res. 486-24 (Comm. 814), in support. (representing Trust for (See Comm. 814.1) Public Land) Shirley Keakealani: Res. 486-24 (Comm. 814), in support. (representing Na Oiwi Pu`uanahulu) Lehua Alapai: Res. 486-24 (Comm. 814), in support. (representing Na Oiwi Pu`uanahulu) DebraLee Kailiwai-Ray: Res. 486-24 (Comm. 814), in support. (representing Na Oiwi Pu`uanahulu/ Lineal Descendent) LAAC-25 April 30,2024 ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 486-24: AUTHORIZES THE DIRECTOR OF FINANCE TO ENTER INTO NEGOTIATIONS FOR THE ACQUISITION OF LANDS OR A CONSERVATION EASEMENT FOR ALL OR A PORTION OF THE PROPERTY IDENTIFIED AS TAX MAP KEY: 7-1-003:010, ALSO KNOWN AS `ANAEHO`OMALU KAPALAOA, SITUATED IN THE AHUPUA`A OF PU'UANAHULU, DISTRICT OF KONA, UTILIZING THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND The County seeks to acquire approximately 27.38 acres of land to protect and preserve cultural and natural resources and open certain areas of the property for education, gathering, and cultural practices. The parcel is listed as priority number one in the 2023 Annual Report of the Public Access, Open Space, and Natural Resources Preservation Commission. Reference: Comm. 814 Intr. by: Ms. Evans Motion to Approve: Ms. Evans moved to recommend adoption of Res. 486-24. Seconded by Ms. Villegas. CHR. INABA: We have our Property Manager Hamana Ventura joining us this morning. If you would like to just give us a quick overview of the request and then we can take up any discussion. (Note: At this time, Property Manager Hamana Ventura came forward to address the members of the Committee.) MR. VENTURA: Aloha, Chair Inaba, Members of the Committee. Hamana Ventura, Property Manager. Some days I just get these lucky type situations or these chicken skin moments where there's not much I can say. It's been said already. Our stewards, `ohana, they did all of their work to get to this point. We're just asking that we be able to continue this process from our end and get this to the finish line. So, on behalf of the administration, on behalf of the Department of Finance, we'd like to request approval to move forward. CHR. INABA: Thank you. I'm sorry, Council Member Evans, you had the floor. I should've let you ask the questions. Go ahead. MS. EVANS: Alright, thank you. This is such a wonderful project. You know, if anybody's gone down to the Waikoloa Beach Resort area, you know, you can see the amount of traffic and the amount of people, and everybody that's coming to that area. And the history and the heritage that's on this property is priceless. I don't think you could put a number on it. So, I'm really pleased, and I would Page 2 LAAC-25 April 30,2024 ask you, Hamana, if this moves forward and I think it will, can you tell us what you think, how long it might take to acquire this? MR. VENTURA: We remain in touch with Reyna(Hayashi) guys. We'll follow their timeline. But to be proactive and make sure that we're in line with monies that come in from the State, we're already ahead of it and we're making sure that when it times out, that we're going to be ready to go. So, I'll double check, see what their timelines are as far as their closing dates are and then we'll work back from there to make sure that we're doing our due diligence to make sure that we're in line with funding requirements with the State. MS. EVANS: Yeah, I hear that's an important piece because they did get the funding. I mean, they got funding from the State also? MR. VENTURA: Yes. MS. EVANS: Okay. That's really good. Reyna, do you want to come up for a minute please? I'm going to ask this question because I want to recognize the people that really helped put this together. So, the different funding sources and the different people that are at the table to help purchase this, can you just go over that real quickly? (Note: At this time, Trust for Public Land's Aloha `Aina Project Manager Reyna Hayashi came forward to address the members of the Committee.) MS. HAYASHI: Sure. So, you know, Waikoloa Land approached Trust for Public Land early on with interest to sell and I think the reason for that is just because of all the community, you know, support. Originally it was going to be developed and because of the community pushback, I think Waikoloa Land understood the significance, and so really wanted to have a partnership with us. And so, they absolutely have been key and wonderful supporters throughout this whole process. In terms of the funding, so we did secure $3 million in State Legacy Land Conservation fund. The decision was made on March 1st, it will go before the Board of Land and Natural Resources for approval on May l Oh. So, is that next week? Next week Friday. And then the governor releases the funds in June. So then, Na Oiwi can sign a grant agreement this summer for that$3 million. Our option agreement provides us more than enough time to close both with the County and the State. It will take a few months to negotiate the conservation easement, but we've negotiated lots of conservation easements with the County before and Hamana's office and team have been great to work with, so we don't anticipate, you know, any kind of delays with that. I'm hoping we can close by June of 2025. So, we'll see if we can do all the due diligence before then, but we Page 3 LAAC-25 April 30,2024 still need to do an appraisal, a Phase 1 environmental site assessment, and title review, but the title looks clean too. So, I think we're in great shape. MS. EVANS: Thank you. Well, I appreciate you giving the overview. And I want to, ahead of time, in gratitude for those that are going to work on this project and make this project complete hopefully by June 2025. So, thank you to everyone who is going to participate. Thank you. I yield. CHR. INABA: Thank you. Council Member Villegas. MS. VILLEGAS: Aloha, Hamana. Aloha, Reyna. Aloha, `Ohana. Thank you for being here. You know, it was a couple years ago we were in Council and listening to the propositions to create 1,100 more timeshare units, and transition some of the property with Waikoloa Land and then build some affordable housing, and it's a really challenging time to sit up here. But one of the bright spots that came through was talking to the leadership of Waikoloa Land and they mentioned this property. And I had no knowledge of it, or what not, but was just so grateful that they mentioned the interest in it coming to something like PONC (Public Access, Open Space, and Natural Resources Preservation), and my humbled silly opinion was "please find the lineal descendants". Little did I know that the lineal descendants had already found them long before and been working on it. But it's through these kind of synchronistic collaborative works that the timing hits. And thank you, Hamana, for your determination and tenacity to tie all the parts and pieces together because these places are sacred and once they're gone, they're gone. And the knowledge and the wisdom from times when we didn't, not"we", but when there weren't books, right? But that's that inner knowing and the wisdom that you carry in your heart and your mind, Tutu, to come here today and share that with us. I just mahalo you. It's an honor and a privilege to get to sit on the dais at this time when this decision and opportunity is before us, and for me to get to vote in support of this transition of ownership from property for Waikoloa Land and to save in perpetuity forever and ever more for generations to come. This land where you can travel from mauka to makai and learn the lessons that this incredible island and her history and her people have to share with all of us. So, mahalo you. CHR. INABA: Mahalo. Any discussion over in Hilo? MS. KIERKIEWICZ: Yes, Chair. CHR. INABA: Go ahead. MS. KIERKIEWICZ: Mahalo nui. You know, I just wanted to take a moment to kako`o what my colleague, Council Member Villegas, so eloquently shared Page 4 LAAC-25 April 30,2024 and take a moment to mahalo nui the `ohana that have been involved in this process for years, who continue to show up today, all of the community partners that have worked really hard to get us to this particular point. You know, when I reflect on the extensive development of that particular coastline, it just feels really good for us to be in a position to preserve this space which has so many significant natural cultural biological resources that are still there, and an opportunity for community of that`aina to be stewards of that place and it being, you know,just an educational ecosystem that we can visit today and in the future. So, I'll be happily supporting this resolution and very excited by the fact that there are also some funds from the Legacy Land Program that are being dedicated to support acquisition of this parcel. It's not every day that we get these kinds of funding. So, mahalo nui to everybody that was involved there for making that happen. Thank you. CHR. INABA: Council Member Galimba? MS. GALIMBA: Thank you. I also want to thank everyone who made this possible, and absolutely in support. I just wanted to ask a little bit about the funding, especially our funding. So I'm not sure if this would be for Hamana or Reyna, but basically wanted to ask, so we're going to be getting a conservation easement on this piece and wondered is our funding from the PONC only going to be for the conservation easement or is also potentially going to be used for the gap funding between the conservation easement and the $3 million that the Legacy Land provided? MR. VENTURA: Okay. So simply put, upon closing of the fee simple interest of the parcel, we will hold the conservation easement with PONC funds going forward. MS. GALIMBA: Okay. So basically, we would be funding the conservation easement. That would be when we do the appraisal, that's the portion that the PONC funds would be used for? MR. VENTURA: Correct. MS. GALIMBA: Correct? Okay, yes. Thanks very much. I just wanted to get a little bit better understanding of that, and I think this is just a wonderful thing. So, thanks again, for everyone who made this possible. I yield. CHR. INABA: Thank you. Coming back here to Kona. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Mahalo, Chair. It feels a little bit somber, but I really do feel like this is really exciting. To see community take on land, as Ms. Kierkiewicz stated, right next to a massive development that is very tourism Page 5 LAAC-25 April 30,2024 driven and having this piece of`aina be preserved for future generations for community and other people to enjoy. I'm excited. So, I'll be supporting this today, and I'm glad to see something that's moving forward and just very, very proper. Thank you. CHR. INABA: Mahalo. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Also very supportive of this conservation easement acquisition through PONC. This is clearly what PONC was designed for, so very happy to see it. I have just a general question for you, Mr. Ventura. As far as potentially down the line and just so I know for other PONC acquisitions as well. I assume that the conservation easement contract, which was talked about maybe taking like a little over a year, that has to be completed before any potential stewardship grant funds may be negotiated. Is that correct? MR. VENTURA: Correct. MS. KAGIWADA: Okay. So, I'm just thinking about other PONC acquisitions as well as easements. But, yeah, that's good to know. So, this is kind of the first step for the County to really get involved and then potentially there are other steps. Okay. Thank you so much. I'll be supporting. CHR. INABA: Thank you. Okay. No further discussion? I just want to make sure I'm understanding. So the property is to be purchased by the trust and then transferred to a nonprofit, and then we, as County, are purchasing the conservation easement on the property? MR. VENTURA: Yes. CHR. INABA: Okay. I just want to make sure I understand. Council Member Lee Loy, go ahead. MS. LEE LOY: Thanks, Chair. And I was actually following that train of thought. Thanks, and in support. Hamana, when it belongs to a nonprofit and then the County has that conservation easement, can that nonprofit continue to access the funding for maintenance and stewardship? I really want to make sure that, you know, that is the most critical piece. We can purchase but we also need the stewardship piece. MR. VENTURA: Yes. MS. LEE LOY: Great. Thanks Chair, for the latitude. Page 6 LAAC-25 April 30,2024 CHR. INABA: Thank you. With that, mahalo everyone for coming today and I guess the only regret I have about this whole thing is that this property was in my district until the last redistricting. So, Council Member Evans got to do the resolution. But with that, there is a motion on the floor to forward Resolution 486-24 to Council will a favorable recommendation. All those in favor,please say "aye." Vote on Res. 486-24: The motion to recommend adoption of Res. 486-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Inaba—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. CHR. INABA: Mahalo everyone again. With that, next order, Bill 148, please. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 148: AMENDS SECTION 25-8-33 (CITY OF HILO DISTRICT ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM SINGLE-FAMILY RESIDENTIAL— 10,000 SQUARE FEET (RS-10) TO INDUSTRIAL—COMMERCIAL MIXED — 20,000 SQUARE FEET (MCX-20) AT HILO, HAWAI`I, COVERED BY TAX MAP KEY: 2-2-036:076 (Applicant: Manono Corner, LLC) (Area: 21,023 square feet) The Windward Planning Commission forwards its favorable recommendation for this change of zone request, which would allow the applicant to demolish three existing structures and construct a single-story structure for retail and/or office uses, onsite parking, and access driveways. This property is located on the corner of East Lanikaula Street and Manono Street, Waiakea House Lots, South Hilo. Reference: Comm. 815 Intr. by: Mr. Inaba(B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 148 on first reading. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. INABA: We do have the applicants and their representative, Mr. Sid Fuke, here joining us in Kona Chambers today. Mr. Fuke, if you folks could give us an Page 7 LAAC-25 April 30,2024 overview of the request, and then we'll head over to our Planning Department's staff for any further comment. (Note: At this time, Planning Consultant Sidney Fuke and Applicant Bob Hamilton came forward to address the members of the Committee.) MR. FUKE: Good morning, Chair Inaba, Members of the Committee. My name is Sidney Fuke. I'm here assisting a good friend of mine, Bob Hamilton. CHR. INABA: Sorry, can you pull the mic a little closer? MR. FUKE: Sure. CHR. INABA: Thank you. MR. FUKE: Bob, you want to introduce yourself? MR. HAMILTON: Good morning, everyone. My name is Bob Hamilton. resident of Hilo for the last 55 years or so. I own this piece of property in Hilo. I've owned it for approximately 20 years and we're looking to change the zoning so we can put in this commercial. I've been farming in Hilo area or in Hawaii for 45 years. We raise, my business is Plant It Hawaii. We're a fruit tree nursery so we raise a fair amount of the fruit trees in the state over the last 40 years, couple million. And we're just looking—when we bought this property 20 years ago, it was an investment property,just home rentals. And it's getting dilapidated now. The houses are beyond repair, and we'd like to change it. Most of this will pass down on to my kids. And that's our plan. MR. FUKE: Mr. Chair,just to add to that, the property is located within an industrial, well adjacent to an industrial area. There's a UPW (United Public Workers) office close by, there's a warehouse for industrial uses in that area. When you look at it from a regulatory and infrastructure standpoint, you know, it kind of like checks all the boxes. It's industrial designated on the General Plan. The staff and then the commission had recommended certain traffic mitigations which would include the establishment of upgrading on the curb gutter sidewalk and the constructing of a new curb gutter sidewalk section on Lanikaula Street. There're no typical archaeological cultural issues. During the course of the Planning Commission review, however, there was a neighbor who had raised some issues, so we had then called a few times. And then we sat down and met with the neighbors to try to identify the concerns and address them as best as we could. One of the concerns that was raised and, you know, this is written probably in all of the reports that you have, but just to summarize it for you was that, you know, the site could potentially have some environmental issues with gas tanks, so on and so forth. And to the best of the Page 8 LAAC-25 April 30,2024 applicant's knowledge, you know, there is none. But nevertheless, we did propose a condition, Condition D, which requires the applicant to discuss this issue with the Department of Health prior to issuing its plan approval, and if confirmed as is normal, requiring the appropriate remediation, you know, prior to the issuance of a building permit. There was also a concern the neighbor raised concern about like, you know, you may have enough parking for maybe an office space but say if you have like a restaurant or a bar, then people's going to be parking on their property, so on and so forth. So, we had proposed a Condition G, which requires the Planning Director to ramp up any of the parking based on the use. And so, that's kind of like unprecedented as well. There were also concerns about potential noise, you know, nuisance related into the operation; noise, dust, hours of operation. So,what we did propose, and the Planning Commission also had agreed, was Condition H, which would limit the hours of operation from 6:00 a.m. to 10:00 p.m., so as long as the adjoining properties are still zoned for single-family or residential. So, this would albeit obviously, you know, having late night activities like a bar or typical restaurant would generate. We also had proposed a Condition N, which requires a notification to the neighbors at least seven days prior to any land disturbance activity because the concern was if you're going to demolish or if you're going to do construction, then it could some noise effects, dust. Although, they're all regulated by the State Department of Health. But the owners felt like just good neighbor policy, let's talk story, I'll let you guys know when these things are all happening so appropriate precautionary measures could be taken if needed by the surrounding property owner. We also kind of like provided in Condition N that, so far, like contact information in the event that there's possible infraction, you know, similar to what you currently have right now in your short-term vacation rental and also like the geothermal ordinance, rules which require like at least a call information. So, if you have neighbors who are, you know, aggrieved with a certain operation, then they have a number to call. And so, that's embodied within Condition N. The other concern that was raised by the neighbor was that they didn't like the proposed location of the driveway access, which was too close to their property, so we said, fine, okay, we'll utilize the existing driveway. There're actually three existing driveways fronting Manono Street right now. And so, the idea was to consolidate all three and to utilize only one of those three access points. So, in addition to kind of like so called checking all of the regulatory and infrastructure boxes, we feel like we've done as much as we could to address any of these concerns that were raised by the neighbors. And based on that we respectfully request this Committee to favorably recommend the approval of this change of zone. Page 9 LAAC-25 April 30,2024 CHR. INABA: Thank you, Mr. Fuke, opening it up for discussion. Actually, sorry. I said we're going to go to the Planning Department. Director Kern in Hilo Chambers. Go ahead. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Aloha. Good morning, Chair, Members of the Committee. Zendo Kern, Planning Director. I don't really have much more to add. I think the representative did a good job going over the project, it is consistent with the General Plan. There are comprehensive background reports; 65 pages, as well as a recommendation that has a lot of information in there. And I'm here to answer any questions there may be. Thank you. CHR. INABA: Thank you, Director. Alright. Maybe we'll start in Hilo Chambers? Actually, no, we'll start here with the Council Member of the district. Council Member Lee Loy. MS. LEE LOY: Thanks. And forgive me, I wasn't here for testimony. But I did have an opportunity to speak with the neighbor. And so, thank you, Mr. Fuke, for outlining a lot of the concerns and then codifying their concerns and being that good neighbor, and really managing that expectation. Everything that you've shared specifically about noise and what type of generated business would happen, because we know that this zoning district has, I think, 53 or 63 different permitted uses, and so there is a wide range. But I really do believe that the conditions that you've outlined in G and in M, really provides that assurances to that neighbor. And I do want to share with my colleague, you know, this particular property is a block from Hawaii Community College, it's becoming the gateway between Hilo and the University and Waiakea peninsula along Manono Street. We've invested a lot of dollars by way of Complete Streets with curb gutter sidewalks and biking paths that would allow kind of movement from Waiakea peninsula up Manono Street into the University area, really trying to build a walkable community. It's definitely in transition. I think we have lots of other restaurants we know of, Hawaiian Style Cafe, which another block away, and then a block up where we see a lot of our services like Bank of Hawaii, another thing. So, we're really trying to build a community that kind of"live, work, play". I think it's in my district. I think the lines changed a little. And so, I know I share this with my colleague Jenn Kagiwada. But I am in support of and really do appreciate you working it out with the neighbor, especially that driveway access, which I know gets a little wonky because of its relationship right there at the intersection. So, thank you so much. I yield. Page 10 LAAC-25 April 30,2024 CHR. INABA: Mahalo, Council Member Lee Loy. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I have some questions. First, how long have you had this "investment"property, to the owner? MR. HAMILTON: I bought it about 20 years ago. MS. KAGIWADA: Okay. So, I'm a little concerned that one of the reasons you're saying that you want to do this is because the housing became dilapidated, wasn't that your responsibility to keep those up? MR. HAMILTON: We've maintained the houses through the years. They're 80 years old, and this is Hilo. I mean, the termites are an issue. It's just getting really old. MS. KAGIWADA: Okay. MR. HAMILTON: Yeah. MS. KAGIWADA: I have no more questions for you. I'd like to ask Director Kern a couple questions. After hearing what Council Member Lee Loy said, I understand that there's some desire to do this, but I also know how critical it is that we have housing and that we have housing in places that we have housing in places where we have infrastructure. We keep looking for places in Hilo to do infill housing and then at the same time we're taking away some housing so it can be industrial in a neighborhood. So, I understand you're saying it's consistent with then General Plan, but could you explain a little bit to me and to the public how you rationalize this? MR. KERN: Sure. Thank you for the question. Maybe if I have Maija Jackson pull up the LUPAG (Land Use Pattern Allocation Guide) map as well on her side to share that. So, this area of transition in Hilo is definitely an area of transition and has been for quite a number of years. There's not much commercial zoned property in Hilo, especially from a light industrial perspective. So, this is that area where within the General Plan and moving forward is where we want to see some of that growth. There's also some corridors within this area that we'd like to see more multi-family residential. Maybe you can Zoom out on that, Maija, would be helpful. So, I'll just take a step way back about 1983, 84, 85, there was a small business, small engine repair shop at this location and they would fix weedwhackers, lawnmowers, tractors, woodworking, and had a nonconforming use. So, historically, it has been used for that and then they stopped that use and the nonconformity went away. And Mr. Hamilton's used that for the residential use. Page 11 LAAC-25 April 30,2024 So, with any of these changing elements within a community we have to find that balance. And when you look at town, there's not a lot of other areas that would even support any type of mixed use, any type of industrial area. And within those uses we need we also need the infrastructure as well. So, it's really about balance. If you look at the LUPAG map here, the cursor is on that parcel. And so, basically the land area that would be moving in that more mustard color is going to be your medium density urban which would support a lot more multi-family type uses as well as commercial, and then that gray area is our industrial use. And so, if you zoom out, there isn't a lot of potential for much more mixed type industrial uses. This is one of those few parcels that would be in Hilo. A lot of the other areas that you see in town are already developed or have a state of Hawaii land lease on them, or DHHL (Department of Hawaiian Home Lands) land lease on them. So, you know, like I said, it's consistent for the area. It's in transition. And I think we also need to support our businesses and services right along with housing. MS. KAGIWADA: Okay. And how many residential units are in that proposed industrial gray area that you have there? MR. KERN: I do not have that information for you right now. MS. KAGIWADA: Okay. And how many mixed-use housing developments in the kind of orangish zone are already being planned or in the works? MR. KERN: I'm not exactly sure how many are being planned or in the works. MS. KAGIWADA: Multi-family, sorry. Multi-family units. Do we have any plan that we know of? MR. KERN: Not that I am aware of. Maybe Maij a, do you have any awareness? MR. FUKE: If I can just kind of (Note: At this time, Planner Maija Jackson came forward to address the members of the Committee.) MS. JACKSON: No, I'm not aware of any. I think the General Plan designation sets the maximum density that can occur in a zoning as well. But I'm not aware of specific developments that are coming down the line. MR. KERN: Same. Page 12 LAAC-25 April 30,2024 MS. KAGIWADA: Okay. What are the maximums and the zoning for that orangish area? MR. KERN: So, the orange for the medium density urban, that's what it could move to, and that's around up to around 30 units per acre more or less. Right now, a lot of that's still zoned RS-10. So, that would be one unit for every 10,000 square feet of land. So, if somebody wanted to make that transition to utilize that medium density urban, they would have to go through the process that the current applicant's going through just for a different zoning. MS. KAGIWADA: Okay. The problem I have is timing. We're not developing or there's nothing in the works to actually house more people in that neighborhood and yet we're taking away residential places. So, I understand it's in transition, but to me we have this huge problem, which is not enough housing on our island and in the Hilo area. So, I've just got concerns about this going in that direction without I understand your job is to do the very General Plan, but if there's nothing to help people get into homes, once we start changing all these places over to industrial, I have concerns. MR. KERN: And I think if we want to start seeing additional housing in that area for multi-family, we need to bring infrastructure to the site. The cost is very prohibitive to do multi-family development. And then when you have to calculate an offsite infrastructure, that cost gets much more prohibitive. So, again, I think this is an area that we ideally is going to have that mixture of that"live, work, play,"where you have the commercial elements, and you have the residential elements that exist. And I think if we really want to see that we need to invest in infrastructure. MS. KAGIWADA: Okay. Alright. I'm going to think on this one a little bit more. But I have some overall concerns that we're getting rid of residential areas before we have the housing we need for people. Thank you. I yield, Chair. CHR. INABA: Thank you. Council Member Evans. MS. EVANS: Yes. Thank you for being here. I think you have a big project ahead of you from what I'm reading and hearing. My question has to do with the zoning that you chose. You're choosing to go to MCX-20? MR. FUKE: MCX, yes. MS. EVANS: MCX-20. And when I'm looking at the Planning Commission report and I'm getting the impression that you might be focusing on light industrial. But I'm wondering if that code that you've chose gives you something more than light industrial. Page 13 LAAC-25 April 30,2024 MR. FUKE: Councilwoman Evans, there's actually in the Zoning Code, there's three categories of industrial. There's heavy industrial and it's designated MG, and the second heaviest would be ML, that's light or limited industrial. And the most benign industrial type would industrial commercial mixed, MCX, which is what the applicant is requesting. And the applicants request for an MCX is largely out of deference to this area being an area of transition from a land use, you know, as opposed to going for like an MG, where you could have considerably like a gas storage tank and autobody fender shop, so on and so forth. So, this is the most benign type of use for industrial. Within any of the industrial categories, no residential uses are allowed. So, to answer partially Councilwoman Kagiwada's question about, you know, alternative uses, if the property, if in the MCX zone, for example, hypothetically, would allow residential uses, then it's possible they could have a mixed type of land use in that area. The dilemma, you know, given the current zoning designation and the General Plan, rather, the dilemma is that the General Plan states it's industrial and within an industrial area residential uses are not allowed. So, for Mr. Hamilton to apply for, like a multiple-family zoning so he can increase the residential activity, that would not be consistent with the General Plan. And we know that by Charter all land uses have to be consistent with the zoning and General Plan. So, that's the dilemma he faces. Now, if on the other hand the Council changes the Code and say residential use is allowed in an MCX zone, then we would have like a variety uses in that area. But we're dealing with what we have today. The other point was that about 10 or 15 years ago, I was helping another friend of mine to do a multiple-family rezoning project on Laukapu Street, you know, between Lanikaula and Kekuanao`a Street, and the community didn't want it. And so, ultimately, the commission had recommended its approval because of consistency with the medium density General Plan. When it went up to the County Council, the Council denied it. MS. EVANS: Thank you. I guess my questioning is along the line of it is going to be a mixed use commercial industrial. I just wanted to hear a lot more clarity on the level of industrial because there are different types of industrial. There's one's that are more along the manufacturing and processing, which tends to lead towards potentially big trucks and containers on a truck. A lot of people don't like big containers on residential roads. Would that lend itself to adding containers? MR. FUKE: No. No. Page 14 LAAC-25 April 30,2024 MS. EVANS: Because the way it's zoned. And I don't know, Zendo, you're in Hilo. What is your comment on the type of uses industrial. I am concerned about the big trucks and containers and stuff on that road. MR. KERN: For the MCX zoning, it's not heavy truck utilized. That's more of the MG zoning. On page 7 and 8 of the background report, it shows the listed of permitted uses within the MCX, and you'll see it's more of the light industrial office with some maybe restaurant type in there. So, I think it's very appropriate for the roadways in this area. MS. EVANS: Okay. Thank you. I got one other question and that has to do with parking. It's really hard to get a handle on the parking not knowing if your mix is going to be 80 percent commercial, 20 percent industrial. There's no—it has to be 50150, right. So, the market will probably help you determine if it's going to be a commercial retail, you know, selling who knows. It could be doctor's offices, I guess. I don't know if it's commercial. I don't know, commercial retail, commercial clinics, I mean, I don't even know what the flexibility is there. But since we don't know, each use may require more parking. And so, my question has to do with a problem I have in another area in my district where maybe onsite it looks like it's going to work, but you might end up bringing in uses that actually add a lot of parking at certain times of the day. For example, I have a small retail center, and they've got three restaurants. Well, who would've guessed, three restaurants, they don't have enough parking onsite. The problem I have is can the neighborhood even take the overflow. And so, how are you going to manage that in terms of the parking and potential uses? Zendo, what would happen? MR. KERN: So, if this were to be approved, when the applicant comes in with their plan, they have to submit a plan approval first. We review plan approval, and we look at the proposed use as well as the parking, loading, egress, ingress, and all of those components, and make sure that that is consistent with Code. We have our parking calculations for the type of use. So, they would have to meet all Code calculations at the plan approval side first. If it didn't, they would make those proper adjustments, so it did meet Code. And then from there they can move forward with the building permit. MS. EVANS: But if you don't know the mix of the use, since it's commercial industrial, it could go one way or the other. It could go MR. KERN: No. At plan approval, we're looking at it based on what the use is. So, right now, we're going through the rezoning, which could have some latitude on that use. When they come in for plan approval, it would state, you know, "X" amount of square footage of office. We would calculate the parking based on that office use. It might have "X" amount of square footage as say, light storage. We Page 15 LAAC-25 April 30,2024 would then calculate parking based on that. So, it is based on the use. We have to know what the use is when we're going to calculate parking at plan approval. MS. EVANS: Okay. But what about the market? If he puts it on the market, space for lease, in that next—so they can't change that mix in percentage? MR. KERN: If they change the mix in percentage then the plan approval would have to be adjusted and parking and loading would have to be adjusted to meet that requirement. MS. EVANS: Okay. Yeah. Just knowing that neighborhood, I'd hate to see overflow parking out on the streets. I don't think that would work well. Anyway, those were my concerns. Thank you. I yield. CHR. INABA: Thank you. Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. I was interested in this one because there were some community concerns, and I know the Hamilton's very well. Small business owners. Their farm in Aula`a is beautiful, and they do handle sales across the state. So, I'm interested on different levels, but as I sat in the Planning Commission meetings what I heard was commitment by the landowners to take on this project to fix up the area. They've listened intently to the concerns of the neighbors, as did you, Mr. Fuke. And those are actually, the discussions are noted within Bill 148. So, I appreciate that's you've taken in those concerns from the community and you're addressing them. Across the street from those properties, I drive by this all the time. So, across the street from the property in question, you have a commercial center already. I think that's Farm Supply? They sell tractors, they sell lawnmowers, they have a bike shop, they have an auto glass shop. So, this commercial industrial mixed, to me, quite well fits the area. So, I'll be supporting the measure. I'd like to see small businesses working to do more in our community. I like what you've done with the bill itself, and just overall we have good, strong, small business partners here trying to do better for our community and taking an area that is really dilapidated and refurbish it to make it into something that promotes small business, economic gain for our community, blah, blah, blah, blah, blah, all the stuff that we want to see. So, I'll be supporting this. I do appreciate the concerns with the Council Members, but I think you're doing a good thing here. So, I appreciate what you've got in front of us. Thank you. CHR. INABA: Thank you. Heading over to Hilo. Any discussion there? Council Member Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Mr. Fuke, it's been a while. Good to see you. Page 16 LAAC-25 April 30,2024 MR. FUKE: Hi. MS. KIERKIEWICZ: And Mr. Hamilton, it feels really weird calling you that. Uncle Bob. I've known him for a number of years. His eldest daughter, Shel and I were classmates at St. Joseph School. Go, Cardinals. Great to see you. Outstanding member of our community. I know for a fact that he and his wife, Aunty Suzie, do offer affordable rentals to members of our community. And so, I feel they are doing their part to support, ensuring that island families have access to affordable units. I know that was a concern that was raised earlier. You know, having been born and raised here and knowing this particular area very, very well, and my father was also a small business owner, one of the things that he would always talk about was that there were so few commercial properties that were available. And so, when I think about how over time this area has really trended towards more commercial development, I'm absolutely in support of this request to rezone. This is not some continent developer either. This is someone that is part of our community, is a positive contributor, looking to do something useful, looking to solve a problem that we have, which is the need for more commercial space. I really appreciated Mr. Fuke's approach here with engaging neighbors to address any concerns that they may have ahead of coming to Council. We've been through a lot of situations where we're having to hash it out here on the Council floor, but I feel they've really went above and beyond to engage and address those concerns, and they've codified it as conditions of approval and I think really upping the game for what we expect in developers, and for them to be responsible developers. So, I will be supporting this request for a rezone. I think it makes sense given the area that it's located in and the need that our community has. Thank you. I yield. CHR. INABA: Thank you, Council Member Kierkiewicz. Anything else in Hilo? Council Member Galimba, go ahead. MS. GALIMBA: Thank you. Just briefly. I basically just want to second what my colleague, Council Member Kierkiewicz, has just said. I can appreciate some of the concerns, however, there is definitely a need for commercial and industrial spaces in Hilo. I think that became apparent in some of our earlier agenda items. And also, it is pretty remarkable how the community concerns were addressed in this and codified. So, yes, outstanding job and sort of precedence setting. Setting a pretty high standard. So, thank you, and I yield. CHR. INABA: Thank you. Coming back here to Kona. Council Member Kagiwada. Page 17 LAAC-25 April 30,2024 MS. KAGIWADA: Thanks. Yeah. I think you guys have done your due diligence and I appreciate you working with your neighbors and listening to what some of my colleagues have said, I can support this. I do still have issues with, maybe the General Plan and some of this going forward, but my issues are more with us, with internal workings of the County, not with your particular project or wanting to do this rezone. I do want to say one thing, I don't think it's true that there's so little commercial space. I have downtown Hilo in my district and there's a lot of vacant commercial space there. So, we'd like to see some attention paid to making sure we can, you know, use the commercial space we have and support making that provide a really viable place to do business and to go and shop and work. So, I just want us to be really aware of our needs on the bigger scale around housing and supporting our businesses, yes, but not necessarily always going more into our residential areas. So, thank you. And I will be supporting this rezone. CHR. INABA: Thank you. Council Member Villegas. MS. VILLEGAS: Thanking my colleagues for these insightful questions and the recognition of our housing crisis, which I'm sure you folks are very, as a family, which it sounds like, have been a staple in the East Hawaii Community for decades, you're very aware of. I would personally defer to the Council Members who are more they're experts on their district, let's say. And so, it sounds like, I just want to recognize the concerns of my colleague Jennifer Kagiwada as we look at this housing crisis. You know, at face value that's what we see, "Oh no, these homes are then going to become commercial." And I consistently hear even in District 7, people say, "We need more commercial spaces." And I drive around, and we have so many empty commercial spaces. And we're also in this really interesting transitional period with regards to our General Plan. So, thank you, Director Kern, for showing that plan and how those lines are, and what happens when you get industrial here, and residential there, and how that affects things moving forward. So, we're at this tricky tipping point, and I take it to heart when I hear colleagues mention your reputation as a businessman, as a family, and as a landlord in your community. If you were putting in, you know, a box store or bringing in a bunch of external commercial businesses, that would be more of a red flag to me. But when we're looking at supporting small business and local business, I also have a deep honor for the fact that you've codified the concerns. The fact that we don't have any testifiers here today from the neighborhood, or from your neighboring properties, leaves me to believe that their concerns were handled in the prior meeting that you did have with them, and you've taken the necessary steps to codify their concerns and take those into consideration. So, you know, as we all continue to navigate this path of utilizing our precious resources for the greatest highest good, not only of ourselves, but I'm assuming Page 18 LAAC-25 April 30,2024 this is your daughter here, but of future generations and her children and her children's, children's children, because as we develop things, you don't go backwards. You know, it never goes back to what it once was. And so, I just humbly ask for your continued commitment to managing this resource, which is priceless in where in sits in Hilo town, and continuing to participate and communicate with your neighbors, and to ensure that this becomes the highest best use for this property not just financially, but in the long run. And those investments now, that may cost a little more, save money in the long run, right, in value, and engineering, and sustainable practices. So, I would just personally ask that for you and your family. And I'll be supporting this today, and the opinions and the support of my colleagues as they are better experts of the districts that they manage. I yield. CHR. INABA: Thank you, Council Member Villegas. Alright. So, I brought this up with the applicant and Mr. Fuke, and I would like to just hear from Corporation Counsel. Regarding Condition H, I guess I just have concerns being that I'm not seeing a limitation on permitted uses by hour in an ordinance before and if we're going to approve it, I have concerns that we're piecemealing out certain requirements that would otherwise restrict the property owner from full use if granted this change of zone. So, thoughts on that? (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: Good morning. Elizabeth Strance, Corporation Counsel. So, the issue as I understand it is, Condition H, for example, is not a condition contained in the Zoning Code. And so, the Zoning Code says if you have MCX zoning, you can do all of these things, and this Bill says, you can do all of these things between the hours of 6:00 a.m. and 10:00 p.m. And so, is the Council actually affecting a further amendment to the Zoning Code? The answer is, I'm not quite sure. We would need to take a look at that. The concern expressed in the testimony was noise and some uses may not have noise attached to them. And so, if it's appropriate to affect further limitations beyond what the Zoning Code requires, then we might want to come in with a language change to the word, "uses." You know, for example, a permitted use in this zoning area is catering and that's likely that business sometimes starts before 6:00 a.m. but is not likely to create the kind of noise that a bar does, which is also a permitted use within this zoning. And so, making sure that the limitation is appropriate, tailoring it to really the least restrictive use to address the problem. Your discussion has raised a pretty interesting issue that I think we have to look at. You're talking about there's a revolving change happening in this area, and it almost feels like this is the appropriate zoning almost. And so, these special conditions are attempting to address the almost. And so, we can take a quick look at that and provide some Page 19 LAAC-25 April 30,2024 input at the next hearing, and we can talk a little bit more about whether "uses" is the appropriate word if Condition H is appropriate. So, it's to really address the expressed concern that it's trying to solve. CHR. INABA: Okay. Thank you. And I guess in line with some of these different conditions like Condition N "giving notice to adjoining single-family residences if there's going to be land disturbance". "Land disturbance", I'm not sure, is that a term that is existing in the Code, is that grading and grubbing? Maybe Director Kern, I don't know if you know what land disturbance means here? MR. KERN: I'd have to verify. Maybe Maija can verify if it's in the Code? I mean it's pretty industry normal as far as disturbing the land, changing it. I'm not sure if it's actually a term in the Code. Maija, do we have that in the Code? MS. JACKSON: I don't believe it's in the Zoning Code. It may be in the grading and grubbing code. CHR. INABA: Okay. Yeah. So, if we can just maybe get some clarification there. I just want to make sure we know what we're talking about when we're saying this is a trigger, right, that they have to notify the neighbors, so we want to be very clear what that trigger is. I don't necessarily have a problem with Condition N, because it doesn't restrict the usage. Just a notification. But I do, yeah, I would like some guidance on Condition H just so weI watched the Windward Planning Commission hearing on this, and the applicant and Mr. Fuke, these are efforts to address the concerns. I just don't want to have us doing bad policy here and putting in things that might get us in trouble or might be difficult to enforce, which I guess is my last question. For any of these different conditions, who really has the power to enforce this? Because I don't see it within the ordinance itself. So maybe by the next hearing we can have that understanding that if these conditions are not being adhered to, who is responsible and what are the penalties for that? MS. STRANCE: Will do. CHR. INABA: Alright. Thank you. Mr. Fuke, last comments? MR. FUKE: Yeah, I'd just like to kind of make note. You know, relative to that Condition N, it was related to pretty much nuisance noise and dust operationally. Department of Health, for example, is the agency that's responsible for noise control, so the thought was that if there was a complaint regarding the noise, and the neighbor doesn't know who to call, well, you can call the Planning Department because Planning Department would have the information as far as who the contact person is. So, similar to short-term vacation rental and the geothermal resource permits. Page 20 LAAC-25 April 30,2024 The other thing too is, you know, like we have suggested that hours of limitation because the concern was in relation to having bars, you know, like operating way late. So, I kind of wanted to share with this body that the Liquor Commission has the ability to restrict hours of operation, you know, as it relates to noise. So, they can impose that as a condition. So, you know, the stop-gap measure in the event that Condition H is deleted and there's a noise issue related, because it's kind of peculiar to the operation of like a bar. So, when you apply for a liquor license you have to send notices to surrounding property owners. And so, the notice to the surrounding property owners would be in a position to register their concern, and the Liquor Commission, in hearing that, could impose conditions that would provide perimeters of the liquor license. CHR. INABA: Yeah. I mean, it's still a limited view though, because there's other uses that could make noise. So, understanding that the Liquor Commission can put those conditions on, they're not the only type of use. There are all these other uses. So, that's what my concern is, like making sure that our approval makes sense and covers everything as it should, or if it's not the right fit then it's not the right fit for the zoning type. Do we have any other questions, we can take them. Council Member Evans had her light on first, go ahead. MS. EVANS: Okay. Thank you. Yeah, I just wanted to say that I lived for 16 years in Waikiki when I was a State Representative and what was really disturbing at three `o clock in the morning when those truck required by law have to have those back up, "beep, beep, beep," you hear them at three in the morning, four in the morning, five in the morning. You know, it's so noisy. And if in fact, this is a residential and we're going from one to the other, I can see the importance of protecting people from having that kind of noise. I can tell you, it's pretty disturbing. So, anyway, I like the idea of restricting. I'm really grateful that you, as the owner of the property, are even considering the fact that you would be limiting probably some of your uses because those trucks could not come because by law, they have to have that beeping noise when they back up. So, if that's what you're thinking, I think that was very gracious on your part. CHR. INABA: Alright. Thank you, Council Member Evans. However, we have three more to get through. Council Member Villegas. MS. VILLEGAS: Just a quick question. MS. EVANS: Would you like to make a comment? MR. HAMILTON: Yeah. Page 21 LAAC-25 April 30,2024 CHR. INABA: Briefly. MR. HAMILTON: Councilwoman, we've been looking at this for a long time. It's not something we just started to do a year ago. And I've been there, I've been on the property. Our tenants—it was a small woodshop until last month and that tenant moved out. When I go to this property, it's not good for residential for all. The County's put a lot of money into upgrading the roads, the sidewalks, the stop lights. Hilo's changed, so it's busy there and it's really noisy. I would never want to raise kids on this corner. I mean, it's not safe and it's really loud. Even my tenants who just moved out, they said it's just all night long, it's the trucks and it's not the backup signals but it's the Dodges with the big mufflers, and the small cars. That's what's happening in this part of Hilo. And that's why I'd don't feel it's a good use to put residential there myself. It's not the way it's going. So, we are not—our existing building that we're looking at is not big enough to actually have loading docks, so we're not looking to have big truck going there. We're looking at more office space. My accountant's looking for a space. I'd love to get her in there. But we won't have this, it'll take another two years before I can do this. CHR. INABA: Thank you, Mr. Hamilton. I'm going to take Council Member Villegas. Go ahead. MS. VILLEGAS: Actually, I think you might have answered part of my question. My question was just going to be if you've been working on this for a really long time, do you already have businesses or certain industries lined up or in line to utilize these facilities and this space? MR. HAMILTON: No, we don't. We have in mind, but we have no one lined up. MS. VILLEGAS: I'm sorry, you have what? MR. HAMILTON: We have businesses in our mind that we would like there, but we have no one lined up. We have no tenants, pre-tenants. MS. VILLEGAS: Okay. But it sounds like more office, you know, kind of office style as opposed to like a Kentucky Fried Chicken drive thru or something like that? MR. HAMILTON: Yeah, no. The drive thru issue wouldn't happen here because of traffic. The Planning Commission wouldn't let it happen. MS. VILLEGAS: Okay. But it sounds like more office capacity. MR. HAMILTON: Yes. Small business, maybe a lunch shop. Page 22 LAAC-25 April 30,2024 MS. VILLEGAS: Okay. MR. HAMILTON: You know, something that's useful to the college, you know, people can walk there. MS. VILLEGAS: Okay. Thank you. That was my question. CHR. INABA: Thank you, Council Member Villegas. Council Member Lee Loy. MS. LEE LOY: Yeah. Thank you, Chair. I actually wanted to follow up on your Condition H, regarding the limitation of the time, and maybe even Mr. Fuke. I've been around this a long time, and I've actually seen it done. I can't recall if it's done with a change of zone application, but I have seen it done with special permits or use permits. So, I don't think we're stepping outside of the boundaries as far as what we can provide for as conditions of approval. I would love to have Judge Strance weigh in on that. But I think what we do with these conditions of approval, and as the applicant is beginning to demonstrate, is we're really tailoring the various permitted used that fit this transition area. So, to the point of the big trucks or the noisy convenient 7-11 store, a lot of those things just are not conducive to the site and really starts to lend itself to those spaces of the small businesses that we see just across the street. But I would love in follow-up to your concern Council Member Inaba, is to get a read from Judge Strance on that specific condition of approval. I don't think we're out of bounds. I do see it as an entitlement and we've done it in other areas where it can be codified even further through deed restrictions, that they would have to let, you know, various business owners know and/or potential applicants know about these specific guardrails. So, I really do like the way he worked with the neighbor but appreciate that question and providing a bright line of understanding for us on how we carve these conditions up. Thank you. I yield. CHR. INABA: Thank you. Last comment? Council Member Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Just briefly. As I've watched Hilo grow over the last 20 years, this area has become increasingly commercial industrial and there's a scattering of residential houses, and there's nothing wrong with that. But the mixed use is coming, and it has been for a long time. So, I listened to a discussion today about affordable housing, commercial use, commercial spaces, all of that are good valid points but reality is that area is, Downtown Hilo area, is becoming more industrial commercial. It's the flight path of the airport. We have a number of businesses; you have mega box stores. I mean, it's just the growth that we're looking at and this area is suited to this industrial commercial mix. It really is in my eyes. Just even from your joining Page 23 LAAC-25 April 30,2024 parcels, your next door neighbors, you have residential, and you have mixed use commercial, and you have a college. I mean, it just fits. So, I just offer that to my fellow Council Members and just seeing this overall picture of what we're going to look like, what we're growing towards, and good people who come in front of us with a good plan. So, I'll be supporting this as I said, and appreciate my fellow Councilmembers' support. Thank you. CHR. INABA: Thank you. With that, there's a motion on the floor to forward Bill 148 to Council with a favorable recommendation. All those in favor please say "aye." Vote on Bill 148: The motion to recommend passage of Bill 148 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, Chair Inaba—7. Noes: None. Absent: Committee Members Galimba and Kimball —2. Excused: None. CHR. INABA: Thank you, Council Member Kierkiewicz. And thank you to the applicant and Mr. Fuke. We will see you at first reading at Council. Moving on, Bill 149. Bill 149: AMENDS SECTION 25-8-14 (WAIKOLOA VILLAGE ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM OPEN(0) TO INDUSTRIAL-COMMERCIAL MIXED —20,000 SQUARE FEET (MCX-20) AT WAIKOLOA, HAWAI`I, COVERED BY TAX MAP KEY: 6-8-003:041 (Por.) (Applicant: Waik6loa Village Center LLC) (Area: 26.052 acres) The Leeward Planning Commission forwards its favorable recommendation for this change of zone request, which would allow the applicant to develop and operate the Waik6loa Village Light Industrial Center, to include a self-storage facility and flexible use buildings for industrial-commercial business. The property is located on Pua Melia Steet, approximately 0.2 miles southeast of its intersection with Waik6loa Road. Reference: Comm. 816 Intr. by: Mr. Inaba B/R Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 149 on first reading. Seconded by Ms. Villegas. Page 24 LAAC-25 April 30,2024 CHR. INABA: We have again, Mr. Fuke here, as well as Mr. Brown. If you can come forward, give us an overview of the request please, and then we'll head over again to Director Kern in Hilo for any further comment. Mr. Fuke. (Note: At this time, Planning Consultant Sidney Fuke and Applicant Greg Brown came forward to address the members of the Committee.) MR. FUKE: Okay. Hi, again. With me is my client, Greg Brown. Greg, you want to introduce yourself. MR. BROWN: Good morning, Chair Inaba and Committee. I'm Greg Brown with Waikoloa Village Center. MR. FUKE: We also have two other individuals who may participate subject to questions that the Committee might have. But generally, the property is located in Council Member Evans' district, Waikoloa Village. We've had discussions with her. Basically, the property is on the south side of Pua Melia Street, generally across of the fire station. It's a 26-acre area that the applicant is proposing to have rezoned from Open to Mixed Commercial Industrial with the expressed purpose of putting up a self-storage facility, both for open as well as for housed storage activities. They would also have an area set aside for possible other type of industrial related type of uses. Just to provide some background information for the Committee Members. The property was originally zoned Multiple Family and then it was rezoned to Open when the former landowner of Waikoloa Highlands wanted to do either an Arnold Palmer or Jack Nicklaus design course. It was called like Highlands Estate. So, in conjunction with that it rezoned a bunch of properties around the Waikoloa Village core area, that commercial core area, rezoned those areas from Multiple Family to Open and that's the reason why it was designated Open. So, what Mr. Brown wants to do is to have that same property rezoned to Mixed Commercial Industrial. It checks all of the regulatory boxes. It's on the General Plan. It's been designated for industrial uses. It's consistent with the South Kohala Community Development Plan. All of the infrastructure is there or will be provided by the applicant in terms of water or wastewater systems. There's no on-sight development issue. They had archaeological studies done, botanical, and the federal government considered this a clear area in terms of floods. More critically, the requested use would fulfill the needs of the community. There's an absence of really industrially zoned properties in this area and people have been kind of clambering for some sort of area for this type of use. We addressed all of the questions before the Planning Commission. The Commission had favorably recommended its approval. We haven't had the need to have like additional outreach with community members unlike the previous application. So, we're Page 25 LAAC-25 April 30,2024 here basically to request not only your support but to answer any questions that you may have. CHR. INABA: Thank you, Mr. Fuke and Mr. Brown. Anything further to add at this time? MR. BROWN: No. CHR. INABA: Thank you. With that, Director Kern, any further comment before we begin our discussion? (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Thank you, Chair. Nothing further to add. I just want to bring your attention to the background reports, about 385 pages, very comprehensive. A lot of good information in there. I'm happy to answer any questions if they come up. Thank you. CHR. INABA: Thank you, Director. Alright. We're going to start here in Kona. Council Member Evans. MS. EVANS: Thank you. Hello and welcome today. I'm in support of the project. I think it's great to bring this to this community that really needs this type of facilities. But I do have a couple of concerns. One is can you briefly talk about the intersection on Waikoloa Road. I believe you're going to do some big improvements and that is an area that really is bothering people because when you're coming down the hill people tend to do speeding through that intersection. And the other thing is there's now going to be development, a continuing development of housing. It's already been entitled, not yet built out, but you've have what 500, I don't know, you've got 500 homes or something. You have the ability across the way to build that. So, you have a lot happening right there. And so, can you really help us understand how having a stop sign at that intersection, it's not lending itself to a traffic light, of course. But kind of can you walk us through that because that cumulative impact area, it's big, and the community has concerns. MR. FUKE: Yes. That's a very important point. We had a traffic study done. The traffic consultant, by the way, is also available for, you know, elucidation of whatever things that I might not be able to respond upon adequately. But, you know,just for information for the balance of the Committee's information, the access point would essentially be where the current access to the quarry site is. So, that's your access, you know, would be the primary access point. There would also be a roadway connection but not the primary, it would connect to Pua Melia. And that is more for like emergency purposes and that was designed to Page 26 LAAC-25 April 30,2024 kind of help address the notion of"connectivity." But essentially the access point would be near or, you know, the quarry road intersection. So, when the traffic consultant reviewed it, and based on the concurrency provision of the Zoning Code, you had to look at projections, 10 years, 20 years. The conclusion was that at this new intersection the stop sign would have to be, for the project, you know, getting out to Waikoloa Road, there would be a dedicated left turn lane and a dedicated right turn. On Waikoloa Road, the improvements would have to be made,primarily like restriping so that there would be a dedicated left turn lane into the so-called quarry road, so it wouldn't impede, you know, movement going makai. The project that you mentioned, and I'm glad that we did have that conversation because, you know, it's that Castle and Cooke project and they were projected, they have an approval for up to like 700 units, and that would be on the north side of Waikoloa Road. Their intersection is located further mauka of this. So, we had asked the traffic consultant to go back again, take a look at that, and see upon build-out what kind of impact it would have to, you know, Mr. Brown's proposed access way. And the conclusion was that while at some point and time if they do a full build-out, well that Castle and Cooke project, they would be obligated to provide a traffic light at that intersection. So, if they provide a traffic light at their intersection, it will provide an opportunity for what they call like the platooning effect; so, that it would not have too much of a negative impact on traffic going in and out of Mr. Brown's project. So, it's already written in the approved POD (Potential Operational Delineations) that Castle and Cooke have that obligation to construct traffic signals, you know, at their intersection. MS. EVANS: Okay, thank you. So,just as a follow up question. Because of the acceleration, you're going downhill, okay. You'll be going downhill; you'll be turning into this left turn lane, and then you'll be going down and accelerating into a 35 miles per hour(mph) speed limit. That's going to be quite the distance that might I just want to know what you're getting into because I see that this is going to be kind of a lengthy lane to get you where you need to go to accelerate into the traffic which is, like I said, coming down that hill, they speed horribly; 45 to 50 (mph) I'm sure, but I think it's at 30 or 35 (mph). But you still have to get up to that speed. So you've got quite a bit of construction on Waikoloa Road, which would be disruptive to the community but that's kind of how I see it. Have you had that conversation about how it plays out? Because I think it's going to be quite a long road. MR. FUKE: Yes. So, if you're heading makai on Waikoloa Road, to enter Greg's project, the self-storage facility, you'd have to go in, you know, there's going to be a dedicated left turn lane. So, through room is not going to be affected. If and when Castle and Cooke construct their project, provide a traffic light over there, it'll provide, with that light, traffic will definitely have to be Page 27 LAAC-25 April 30,2024 slowing down—slowed down already before you can get access to Mr. Brown's property. MS. EVANS: I know that accidents happen at that corner when people come off Pua Melia and they go out and left to go down Waikoloa. That's where we're having accidents now, today. And so,just a heads up, I don't need to belabor this anymore, but I can talk more to Public Works. But I do have a concern with that intersection because of the line of sight and the speed there. I guess the only other thing is I would ask Zendo, again this is Mixed Use Commercial Industrial, one of the thoughts I had is food processing plants and potentially vertical gardens. So, industrial buildings that would have, where we could start growing food in an urban area and maybe do vertical. That kind of, I guess that the zoning would accommodate agricultural use? MR. KERN: Standby. MS. EVANS: I just love to promote urban gardens. MR. KERN: Yeah. We've got agricultural processing, major, minor, and I don't think we have any problem with somebody doing vertical gardens or incorporating edible landscaping to their project. MS. EVANS: Okay, great. Thank you. Alright. I yield. CHR. INABA: Thank you. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Mr. Kern, when was this property zoned Open? MR. KERN: One second. So, on the background report, Page 2. December 6, 1967, zoning map, Waikoloa Village. It was reclassified State Land Use Urban 1990. It would've been 1990. MR. KANEALI`I-KLEINFELDER: What was the reason? MR. FUKE: So, it wasI can answer that. Like Waikoloa Highlands, actually the Waikoloa development company, they wanted to do an 18-hole golf project and a one-acre lot subdivision, which was proposed to be situated on the mauka side of the village. It's called Waikoloa Highlands. That's currently zoned Ag-l. So, the owner then wanted to do an 18-hole golf course and a residential subdivision, so they rezoned this subject area as well as other areas from Multiple Family Residential to Open, and that's how the Open zone was created. MR. KANEALI`I-KLEINFELDER: Thank you. Where would water and sewer come from? Page 28 LAAC-25 April 30,2024 MR. FUKE: There's a private water company in that area. They have already received the letters of commitment from that water company to provide both water and wastewater service. MR. KERN: Within the background report, Page 8, Section 28, Section 29, Section 30, discusses traffic, water and wastewater. MR. KANEALI`I-KLEINFELDER: Thank you. I always have concerns when I see us going from Open to Commercial and Industrial. That's always a concern. Given the background, that year this was proposed to be an 18-hole golf course and considered as Open, interesting. Yeah. Nonetheless, I had dinner at Pueo's Osteria last night. I love that restaurant, always have. But as I was having dinner I ran into an old friend and what we discussed was a number of things, but the major one was what happens in the case of an emergency? And what I came to understood from that conversation was not too long ago we had an accident that blocked the road on the bottom of Waikoloa Road, and then there was an accident above on Waikoloa Road, which essentially pinned all the traffic and the whole community into Waikoloa Village. I'm saying this to the Planning Department and that we have basically created a problem. There is one way in and one way out. And if we're going to continue to allow an increase in density in the Waikoloa Village area, and from being in the area yesterday and seeing the growth that has happened, if we don't create another access point into and out of Waikoloa Village then we are setting ourselves up for failure. I'll be supporting this measure today, but we need to get a handle on and address the way we plan. And I understand that we're in the middle of our General Plan Review, but I was incredibly concerned last night in that conversation in hearing worst case and thinking worst case of what would happen if this area in particular were to be hit with a fire or multiple fires, which we've seen in the past year, and seeing how people would get out of the community when that happens. So, need it. In good conscious, when we're looking at something like this, we're allowing the continued growth and increased density of Waikoloa Village itself, and yet having no plan whatsoever on how to allow people to get out of the area in a timely manner in the event of an emergency. That does raise questions on our overall plan for our future. Again, I'll be supporting this measure today. Thank you for the background report and for being here. Appreciate it, Mr. Fuke. Thank you. And then as an invested partner in this area, I would highly, highly suggest that the community, yourself, and your partners, start looking at how we get people out of this area once something happens because to me it's not a matter of if, it's just when it's going to happen. Page 29 LAAC-25 April 30,2024 MR. BROWN: Understood. Thank you. MR. KANEALI`I-KLEINFELDER: Thank you. I yield, Chair. CHR. INABA: Thank you. Council Member Villegas. MS. VILLEGAS: Aloha, Mr. Brown. Thank you for being here. Aloha, Sid. Thank you for being here as well. This is a project that you've been working on, envisioning, for a number of years. I just have a quick question. When we spoke and you kind of presented some of your concepts and visions for it a number of years ago, it included some residential rental components to it, and I wondered if that was still part of your project or if you've decided based on this specific zoning change to keep it more that light industrial? MR. BROWN: So, unfortunately, that project wasn't moved forward by the Housing Department. So, we've now applied for just a change of zoning here. But it will provide for housing through Chapter 11, which we will comply with. MS. VILLEGAS: Okay. I'm a little confused. You will provide some housing then? MR. BROWN: Sid, you want to explain that section? MR. FUKE: Sure. Under Chapter 11, there is a requirement for industrial projects of this nature to address Chapter 11. I was actually kind of surprised too, but when I read it, I said, "Oh yeah, it does apply." So how Mr. Brown addresses that need to be addressed prior to receipt of final plan approval. So, he's at this point and time exploring different ways to address that, whether it's to build something within the community or within the 25 or 15 mile radius. He is sensitive to what Council Member Kaneali`i-Kleinfelder mentioned, you know, about Waikoloa Village being like a major cul-de-sac. So, whether building within the so called, the residential building code becomes somewhat problematic. So, he's looking at other properties that are outside of the village court to address this issue. MS. VILLEGAS: Okay. Thank you. I appreciate that, which is, you know, a perk because we know how badly we need housing. And yeah,just to concur with the—we need an evacuation route. And as unfamiliar as I am with the details in Waikoloa, I have heard enough stories about the narrow margins that have saved us from tragic circumstances coming thus forward. So, if or can, as you look at this project, if there's capacity for external road, you know, something to help people get out, I think that's something worth exploring. I am very grateful for the opinion of Council Member Evans as this is her district. Traffic is a challenge in that area. There was a long testimony sent by TJ Osterling, and a lot of the questions there had to do with transportation impact and what's going to Page 30 LAAC-25 April 30,2024 happen on that road. So, I look forward to you guys continuing to explore all of the potential ways to mediate those issues. It's interesting, today I'm learning all about MCX zoning changes. But I don't have any major red flags on this right now. I know one question I wanted to place. I noticed on the map here, there are you know it may not flow all the time, but it appears to be a stream that flows through the property. And so, if I'm interpreting it correctly, you are providing—would you just explain to me what's being provided around that ecosystem? MR. FUKE: So, the project that's going to be rezoned is basically going to be on the north side of that stream. So, it's not going to cross that stream on the south side. It's still going to remain open. It's about a two, two-and-a-half-acre area. MS. VILLEGAS: Gotcha. Now I'm seeing this. So, it's the—for lack of a better, when I look at the map, this is the project that would be the rezoning, and this remains open? MR. FUKE: Correct. Yes. MS. VILLEGAS: Okay. Thank you for helping me clarify that. And it's just such an interesting reflection of the history of our island and our priorities and our zonings when you have something that was multi-family and then it becomes golf course open, which still seems ironic to me that a golf course is considered open space. I guess, specifically, it meets that description by being open, but then here we are going to commercial and mixed use. Yeah, it's just an interesting reflection as we continue to try and navigate best use of our properties. And thank you for taking into consideration, I see that you already have things lined up for solid waste and for wastewater, and hopefully utilizing just cutting edge technologies when it comes to solar, when it comes to water reuse, and just all the things that are available now to ensure that your children and my children and our children's, children's children don't have to go in and fix things in the next 20 years because we went low budget. So, thank you for that. I'll be supporting this proposal today and moving this on from Committee into Council. I yield. MR. FUKE: Thank you. CHR. INABA: Thank you, Council Member Villegas. Council Member Lee Loy, or I can come back to you. MS. LEE LOY: Thanks, Chair. Actually, I just want to lend my support to this. Actually, I'm having a little chuckle listening to my colleagues, and Mr. Fuke, you can appreciate this. You know, like they're getting basically 30 years of land Page 31 LAAC-25 April 30,2024 use history that they're having to walk out and understand why they're making the business decisions that we have to make. And to all of their points, right. This is what happens when Councils put in moratorium, and we stall different developments and other pieces of development don't come online when they need to. I think we're all trying to do a better job as members of Council to manage expectations and provide conditions of approval that really do continue to connect communities in manners by providing commercial and/or housing, basic infrastructure, and connectivity. But I just wanted to say I do appreciate your patience through all of this because I'm like, this is kind of cute. To my colleagues, I'm just going to say, you know, when it comes time to developing roads, we're right in the middle of budget process. Let's put some money in some CIP (Capital Improvement Projects)projects, make that connectivity, so people like Mr. Brown can start moving their projects forward. We can have the housing that all of us so desperately want, and it all starts in two weeks. So, thank you. Thank you for letting me share my thoughts on this project. I yield. CHR. INABA: Thank you. Heading over to Hilo, any discussion? Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Just some quick mana`o. Just want to, you know, take the fact that we have a favorable recommendation by the Leeward Planning Commission. And I appreciate the applicant taking the time to meet with the Waikoloa Village Association and the South Kohala Traffic Safety Committee, and to review the TIAR (Traffic Impact Analysis Report) and include some of those recommendations as part of the conditions of approval. I took the kids holoholo to 69's on Sunday and, you know, drove through Waikoloa Village and I was surprised at just how much that particular community has grown. And so, I think the need for more storage space and other commercial space is certainly something that is going to help to fill in the gap for that particular community. So, I will be supporting this request today. Thank you. CHR. INABA: Thank you. Okay, coming back to Kona. Council Member Evans. MS. EVANS: Thank you. This question is for Zendo. So, this is 27 acres. I'm curious because the stormwater runoff and because I know that land is kind of above it, I mean, it kind of slopes down. So, I can see where we get sometimes those 50-75-year rains, and how it floods Waikoloa Road, and it'll come down Pua Melia, and it'll come down really fast and it could enter this property. So, I'm curious, do you have requirements for—what do they call that where it's not paved where it's pervious? Do you have requirements on percentage of pervious because we do get those really crazy rains, and it causes a lot of havoc? Page 32 LAAC-25 April 30,2024 MR. KERN: Thank you for the question. So, that's not our jurisdiction. Planning does not cover that component of it. That would be Department of Public Works. What we do have is a point here to Condition I of the proposed change of zone. All development generated runoff shall be disposed onsite. It shall not be directed toward any adjacent properties. Additionally, a drainage study shall be prepared prior to plan approval, and the recommended drainage system shall be constructed meeting the approval of the Department of Public Works. And that allows for the developer and their engineers to work on, whether it's drywells and pervious surfaces or other means to really work with any additional water that's generated. So, that is covered in that condition, and we make sure that the drainage study is done within the plan approval component and then all of the actual engineering and drainage work gets done with the Department of Public Works. MS. EVANS: Okay. So, do you know or maybe Sidney knows, do you have to have a certain percentage that is impervious? So, it's not, the whole thing's not paved. MR. FUKE: I don't know whether there is any impervious. But the engineers would have to prepare like a calculation study to determine, you know, if there's any pass-through water in that area as well as what their project would generate in terms of the projected water amount, the volume. And based on that volume, Department of Public Works would have to verify that that volume is accurate, and the consulting engineer would have to determine how they would dispose of that water, whether it's going to be probably more than likely a system with drywells. And Public Works would then determine whether the number of drywells they propose is sufficient to accommodate the projected onsite drainage that would be generated. MS. EVANS: Yeah, I think this is important because when Member Villegas brought up the stream,just so you know, that stream overflows and gets over the road. It does become, talk about road problems. We've got another road problem because it floods over, right, the stream does. And I just see that your project, it could, if they don't do it right, potentially, it may exacerbate. MR. FUKE: Correct. Yes. They cannot push the water into any existing streambeds. It would have to be all contained onsite. MS. EVANS: Okay. Alright. Thank you. I yield. CHR. INABA: Thank you, Council Member Evans. Alright. I guess the only question I have is for Condition L, which is the affordable housing component of this. It says that the requirement shall be approved by the administrator of housing prior to final subdivision approval. I don't see that we're doing, or the intent is to subdivide though, right? Because the timing component to this bill is Page 33 LAAC-25 April 30,2024 regarding construction within—we're completing construction within 10 years. So, I'm not sure if the language in Condition L, as it relates to final subdivision approval, is relevant or in line with what's being proposed. Is that true? MR. FUKE: So, the preferred language, I think, you know, to your point, and I think that's a very good point, because Mr. Brown has no intention of having the property subdivided. But based on Chapter 11, which is the one that's governed, which says either subdivision or plan approval. So, if you want to really be precise to make it consistent with the Housing Code, I would recommend purely editorially,just to say prior to final subdivision or a final plan approval. CHR. INABA: Got it. Yeah, because that part of the Code, if I can recall correctly, is based on the square footage or the number of employees that would likely be employed by the development. So, yeah, I think we can just cleanup that language. And this is a concern in general, but this one is saying that the only thing that really is done is that the requirement is approved. So, I'm not sure what the intent is, however we plan to meet whatever the requirement is. We've seen where developments have not followed through with their affordable housing commitment. So I think we may need to ensure that however the requirement is going to be satisfied, it is done so prior to final plan approval or final occupancy the securing of that permit. So, we can talk offline about how we want to word that. But that isn't something I caught until this affordable housing discussion today. So, let's set a meeting and then we can have those discussions offline. MR. FUKE: Thank you. CHR. INABA: With that, thank you for the presentation, for being here today. There is a motion on the floor to forward Bill 149 to Council with a favorable recommendation. All those in favor, please say "aye." Vote on Bill 149: The motion to recommend passage of Bill 149 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba—7. Noes: None. Absent: Committee Members Galimba and Kaneali`i-Kleinfelder—2. Excused: None. CHR. INABA: Mr. Clerk, Bill 150, please. Page 34 LAAC-25 April 30,2024 Bill 150: AMENDS ORDINANCE NO. 10-101, WHICH RECLASSIFIED LANDS FROM AGRICULTURAL—TWENTY ACRES (A-20a) AND SINGLE-FAMILY RESIDENTIAL—7,500 SQUARE FEET (RS-7.5) TO SINGLE-FAMILY RESIDENTIAL— 15,000 SQUARE FEET (RS-15), SINGLE-FAMILY RESIDENTIAL— 10,000 SQUARE FEET (RS-10), SINGLE-FAMILY RESIDENTIAL—7,500 SQUARE FEET (RS-7.5), AND OPEN AT PAHOA, NORTH KOHALA, HAWAI`I, COVERED BY TAX MAP KEY: 5-5-019:025 AND 027 (PORTIONS) (Applicant: Hawaii Island Community Development Corporation (Area: approximately 18.38 acres) The Leeward Planning Commission forwards its favorable recommendation for the applicant's request for a five-year time extension to Condition C (Final Subdivision Approval) for the development of Phase 3 of the Kumakua Self Help Housing Project. The property is located along the makai side of Akoni Pule Highway, approximately 600 feet west of the Kohala High and Elementary School Complex. Reference: Comm. 817 Intr. by: Mr. Inaba(B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 150 on first reading. Seconded by Ms. Villegas. CHR. INABA: Mr. Kato, good morning. If you would like to give us an overview of the request before us today. If you can, click your mic on the bottom right. Silver button, yes. (Note: At this time, Executive Director of Hawaii Island Community Development Corporation Keith Kato came forward to address the members of the Committee.) MR. KATO: Good morning, Council Members. You know, this property, we acquired this property several years ago. So, it's part of a 31-acre portion donated from the Island Church of Christ. We were able to develop, you know, two prior increments. We're at 44 units in there, but there was a lapse of time where we were not developing in this community basically because of the economic uncertainty that hit the islands. We're at this point ready to go. We have the basic layout we confirmed. We've processed the variance application to basically allow a couple more lots to be developed, and we're ready to go actually. CHR. INABA: Alright. With that, heading over to Hilo. Director Kern. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) Page 35 LAAC-25 April 30,2024 MR. KERN: Thank you, Chair. Nothing more to add but happy to answer any questions. Thank you. CHR. INABA: Thank you. Okay, we're going to start here in Kona. Any discussion or questions? Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Thank you for being here this morning, Mr. Kato, and your lovely staff. You know,just reading through this, I see that this project will be using individual wastewater treatment systems. MR. KATO: I'm sorry. What was the question? MR. KANEALI`I-KLEINFELDER: This is going to be allowing for septic systems to be installed for each house? MR. KATO: Well, we've been discussing this, you know, tentatively with the Department of Health. We're just going to have to see how far they will allow us to go. MR. KANEALI`I-KLEINFELDER: Was there, without looking at the—is a dry sewer being installed as part of the construction? MR. KATO: That's not part of our plan. No. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. I yield, Chair. CHR. INABA: Thank you. Council Member Evans. MS. EVANS: Yeah. I wanted to talk about the Condition K, which says should this self-help subdivision not be developed, the applicant shall comply with the requirements of Chapter 11, Article 1. Can you walk us through with that scenario, what that means if you don't do the self-help? MR. KATO: You know, that's seemed like a kind of a curious situation for us because, you know, all we do is develop affordable housing. If we were not doing self-help housing for some reason, we would just essentially seek other forms of affordable housing that we could develop. MS. EVANS: So, you might do another affordable housing project that wouldn't be self-help, it would qualify potentially to get the funding for affordable? Okay. I was kind of looking at the map and the location of it and I don't see any roads. I see Akoni Pule Highway and you're off of Akoni Pule Highway. So, there's no existing County road so are you going to have to do some easement and then build it out or I'm a little confused by the map. There're no roads. Page 36 LAAC-25 April 30,2024 MR. KATO: When we developed the first increment, we installed an intersection with Akoni Pule Highway, and that road runs basically straight makai. So, we'll be extending that road. So, we'll be using basically an existing intersection at Akoni Pule. MS. EVANS: So, you'll be using the right of way that exists now, and you have to develop it, pave it, or what? I'm sorry. MR. KATO: Well, okay, it'll be our internal roads within the subdivision. The existing connection to the highway is a County road. MS. EVANS: Okay. MR. KERN: Council Member Evans, if I can draw your attention to Page 11 of the background report, and (page) 12. It shows a bit more information there. MS. EVANS: Can you just say it out loud because so the public. I'm just curious about the roads. MR. KERN: It has an illustration basically of what Mr. Kato was saying with the connection road and the purposed subdivisions. I can't really articulate what those are, but it is shown within the background report. MS. EVANS: Okay. Okay. I just got the impression that sometimes self-help housing and some of the affordable housing doesn't have to do the same kind of build out as other subdivisions in terms of roads and road requirements. MR. KATO: Well, we will have access. We have to have legal access. What we have received is a variance from the width of the road. MS. EVANS: Okay. So, you won't have—okay. So, you won't have it wide enough for walking and biking? MR. KATO: No, it will be wide enough. It's a 42-foot wide right of way. MS. EVANS: Okay. Alrighty. MR. KERN: Page 12 of the background report illustrates the proposed layout of the subdivision, roadway widths, lots, configuration, et cetera, and how they're connected to Akoni Pule Highway. MS. EVANS: Okay. Thank you. Okay, I yield. CHR. INABA: Thank you, Council Member Evans. Heading over to Hilo, any questions? Page 37 LAAC-25 April 30,2024 MS. KIERKIEWICZ: Hi, Chair. CHR. INABA: Council Member Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you. I remember my first term being invited to a housing meeting by then Director Michael Yee, and everybody was introducing themselves in the room. And one that stood out for me was like 30 of the 40 people that were there, one of the things they said was, when I grow up, I want to be just like Keith Kato. And that really resonated with me because he has such an incredible reputation in the housing development community and really serving our island families. And so, I really take that to heart whenever I see anything come forward by Keith and his team, because we know that they operate with integrity. And so,just reading through the excellent background materials and understanding where folks were at the time with the great recession and then not really being able toI mean, the financing was there, but the appetite for community just wasn't the right time. But in this moment in time, there is such a need for affordable housing, especially in this community and I think Keith and his team are really well equipped to be developing this. So, I will be supporting their request today. Thanks for being here today, Keith. Good to see you virtually. I yield. CHR. INABA: Thank you. Anything else in Hilo? Alright. Coming back here to Kona. Council Member Lee Loy. MS. LEE LOY: Thank you. Thanks, Mr. Kato, for being here. I have a question as it relates to Condition D, and then as it relates to Condition N, and maybe this is a question for Corporation Counsel or maybe even Zendo, if you have the answer. It looks like the applicants have satisfied a condition through the plan approval process with the variance for roadway access on Akoni Pule Highway. And Judge Strance or Zendo, as you read further down through the conditions of approval, Condition N really is that process that the Council and/or Planning Director may take on in reverting the property back to its original zoning. And I have a question as it relates to takings. Because the applicants have invested in the property and have made some significant investments into that property, I'm wondering if those things are conflicted because I'm also guessing that plan approval also has a timing element and its own conditions of approval, and I'm just trying to mesh all these different conditions of approval together and make sure we're not stepping on ourselves. CHR. INABA: Corporation Counsel? (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) Page 38 LAAC-25 April 30,2024 MS. STRANCE: Good morning. Elizabeth Strance, Corporation Counsel. You asked a fairly complicated question. The issue about taking and regulatory taking is an ad hoc evaluation. I think it was a good question though where this amendment is reflecting progress. At what point in the development would any reversion result in an illegal taking, and without more familiarity with the property I couldn't answer that question. The other issue that comes up is once you're into partial development, would the property even be suitable for reversion to another use. So, if you go from Open to Residential, are there areas that are already paved or otherwise developed? So, those would be the sorts of considerations that we would have to undertake, but without more familiarity with the property or under what circumstances could this provision be enforced, I really can't answer. But I think you raised a question that it would not be, and something that's automatic. It would have to be something that would be evaluated. MS. LEE LOY: Okay. Does that severability clause that we provide at the end of our ordinance kind of help lend itself to that, which basically says if, you know, any portion of it is held invalid, does that help? I mean, I'm watching my colleagues really trying to write nice conditions of approval that have cadence and action behind it, and here we have, you know, a process and they're doing their job. They're satisfying various conditions of approval, and we've run out of time. But, you know, we've also authored legislation that says, right, plan extensions come as initiated by the Planning Director by the Council. And like I said, I just don't want to step on ourselves. Does the severability clause help? MS. STRANCE: Yes. I always think that it's helpful because if one part is found illegal, you don't have to throw the baby out with the bathwater. MS. LEE LOY: Okay. Maybe we can have an offline conversation. But thank you. Thank you for exploring that with me. Thanks, Mr. Kato. Thank you, Chair. I'll be in support of this measure. I yield. CHR. INABA: Thank you, Council Member Lee Loy. And then I just want to point out that typically we're going to be seeing bills come to us with those last two conditions in the bill referencing the time condition part. Condition N, which is the last condition in this bill, lefts language directly from the Code with the understanding though that we'd always have to take up that ad hoc kind of analysis of whether it could be a taking or not, and also with Planning Department's direction as to what is most appropriate at that time. But I just wanted to remind us that this language is from the Code directly. Any other discussion? Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Just to the Planning Department, mahalo for adjusting Condition I and bringing up the fair share value to be more compatible to current market rates. Thank you. Page 39 LAAC-25 April 30,2024 CHR. INABA: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I was going to say the same thing. And thank you, Mr. Kato, for your ongoing and persistent support of trying to house our people here and for being willing to contribute to the fair share fund. I'm in support. Thank you so much. CHR. INABA: Alrighty. Okay. So, I think I need to just need to make sure I'm wrapping my head around this correctly. So, we have essentially a request for extension of time. It's my understanding that the original request was for five years. Is that correct? MR. KATO: Yes. CHR. INABA: Okay. And then it turned into ten years at what point of this process? MR. KATO: The ten years is a recommendation from the department. Our initial request was basically to mirror the original five-year time limit, but apparently the department is moving towards ten years as being an appropriate time. CHR. INABA: Okay. I have a little concern with Condition K because we look at these bills in the sense of just the use, right, not necessarily the specific project. But in this case Condition K is referring really to your folks' specific project, which is what we are essentially granting an extension for. And I know it's your folk's full intention to see this project through and get it done. I just wonder if that last part, the "should the self-help subdivision not be developed,"I just find it problematic because if something does go sideways, essentially, we're allowing a future property owner to do the bare minimum, which is what Chapter 11 is. But today we're sitting here discussing "self-help" and that's what the extension is based on. So, I think we might need to have a conversation on the side as well because it kind of falls in line with the last point of the last bill. But I'm in support of this. I just think we want to be uniform in the way we're awarding and approving these conditions. So, I will have my office reach out to you to schedule some time. And again, I mean, you know, we didn't go through this whole process with the timing of conditions and it's something that we're continuing to go through but as I stated when we went through those bills, I'm in support of giving more time. Like, if you requested five and the department is recommending ten, then let's give the ten and make sure that weI hope none of the Council ever sees you in ten years because I hope this project is done and built and we have people in these units. So, thank you, Director Kern, for extending that window, and to the Planning Commission as well. I'd like to move us forward. Is there a specific question you want to ask? Go ahead, Council Member Kaneali`i-Kleinfelder. Page 40 LAAC-25 April 30,2024 MR. KANEALI`I-KLEINFELDER: Mr. Kato,just looking at some of the documents they gave us. This program, or this housing program, was originally financed through the USDA (United States Department of Agriculture) World Development 502 Direct Loan Program? Because it's been so long, is that funding still secured or is it necessary anymore? Are you using other funding sources to move the project forward? MR. KATO: Yeah. This is going to be a this has been part of the program since back in the 80's. But, you know, this self-help program has been continuously funded by congress. It's renewed every year. I think the good part about it is it has support from both republicans and democrats so its kind of doesn't really matter who's in control because these programs are nationwide and there are rural areas. And so, you know, there's just continuous support. MR. KANEALI`I-KLEINFELDER: Okay. So funding is not a problem then, going into the future? MR. KATO: Right. MR. KANEALI`I-KLEINFELDER: Okay. Thank you, Mr. Kato. CHR. INABA: Alright. Last question from myself is, is there a 201H associated with this already or will we be expecting to see one? MR. KATO: No. We won't be needing to use a 201H process. CHR. INABA: Okay. Thank you. With that, then there's a motion on the floor to forward Bill 150 to Council with a favorable recommendation. All those in favor please say "aye." Vote on Bill 150: The motion to recommend passage of Bill 150 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba—8. Noes: None. Absent: Committee Members Galimba— 1. Excused: None. CHR. INABA: We will talk story offline Mr. Kato. Thank you, Mr. Nishimoto, for being here as well. We'll push right through to what I believe is our last agenda item. Page 41 LAAC-25 April 30,2024 Bill 151: AMENDS ORDINANCE NOS. 00-90 AND 91-27, WHICH RECLASSIFIED LANDS FROM OPEN (0) TO VILLAGE COMMERCIAL (CV-10) AT KEAHUOLU, NORTH KONA, HAWAI`I, COVERED BY TAX MAP KEY: 7-4-015:015 (PORTION) (Applicant: Lili`uokalani Trust) (Area: 0.874 acre) The Leeward Planning Commission forwards its favorable recommendation for the applicant's request to delete Condition B (time to submit and secure Final Plan Approval), Condition C (time to commence construction), Condition D (Eho Street improvements), Condition F (Eho Street/Queen Ka`ahumanu Highway intersection improvements), and Condition K(Administrative Time Extension). The property is located along the makai side of Queen Ka`ahumanu Highway between Eho Street and the Kona Coast Shopping Center. Reference: Comm. 818 Intr. by: Mr. Inaba(B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 151 on first reading. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. INABA: We have our representatives from Lili`uokalani Trust(LT) here today. And I believe we have a presentation to pull up and we also should have a copy of the presentation in our pinkies, which is Communication 818.1 for those wanting to access it online. If you could introduce yourself and your position before giving us the introduction. (Note: At this time, Lili`uokalani Trust Manager Bryan Esmeralda came forward to address the members of the Committee.) MR. ESMERALDA: Thank you, Chair Inaba, Committee Members. My name is Brian Esmeralda, the Manager of Land Planning for Lili`uokalani Trust(LT). Thanks for having us today. I do have a presentation. I'll keep it very brief so that we can get into questions. (Note: At this time, Lili`uokalani Trust Manager Bryan Esmeralda came forward and provided a PowerPoint presentation to the members of the Committee. For Viewing of the subject presentation, see the DVD copy of the meeting proceedings on file in the Clerk's Office. A copy of the PowerPoint presentation is made a part of the record, see Comm. 818.1.) MR. ESMERALDA: With that, again,just requesting this body's favorable recommendation to the Council for amendments to Ordinance 00-90. Also, I believe in the Planning Department's recommendation, because the ordinance was rather old, they proposed to restate all of the Conditions using current standard language, so LT is supportive of that. Mahalo. Page 42 LAAC-25 April 30,2024 CHR. INABA: Thank you. Heading over to Hilo. Director Kern, any further comment at this time? (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Thank you, Chair. No. The applicant did a great job giving the presentation. It's really a housekeeping matter. I'm happy to answer any questions. Thank you. CHR. INABA: Thank you. We'll start in Hilo this time. Any questions there or discussion? MS. KIERKIEWICZ: Chair, I think it's a very straightforward request and I just want to confirm, Brian Esmeralda, did we go to UH (University of Hawaii) Hilo together, Model United Nations (MUN). MR. ESMERALDA: We did. Political Science. Model UN. Yup. MS. KIERKIEWICZ: Okay. It is you. Aloha. Nice to see you. Again, very straightforward request. I'll be supporting. Thank you, Chair. CHR. INABA: Everyone's her classmate today. Bringing it here to Kona. Any discussion? Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: One question for you, Sir. Thank you for the presentation. How does this project align with the goals of Lili`uokalani Trust? MR. ESMERALDA: So, any future leasing and development of this property would provide income for the trust in order to support or mission in providing programs for the keiki. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. CHR. INABA: Council Member Villegas. MS. VILLEGAS: Yes. Aloha. Nice to see you again. Thank you for presenting this pretty straightforward for us. It seems to be taking out conditions that are no longer relevant and ensuring that the language is in alignment with what we need moving forward. This area in kind of this industrial, I mean we always called it the old industrial area, right, and this is that new right hand turn that you can take to go into the old industrial area before you get to Palani Road. MR. ESMERALDA: Correct. Page 43 LAAC-25 April 30,2024 MS. VILLEGAS: So, those improvements have been made there. And sort of on topic, but off topic at the same time, you know District 7, I mean I get consistent requests from community members about properties that are under QLT's (Queen Lili`uokalani Trust) management and why they remain empty. And, you know, I do my best to answer in the capacities that I have been educated by you guys on the priorities, which is a vast responsibility, and I complement you on over the past decades, the incredible improvements that have been made. Unfortunately, there were some historic times of some really challenging behaviors by different people who were allowed to be in positions of leadership, and I'm so grateful that that era is past. And so, I guess for me, I just would ask for your continued support of District 7 as we navigate a time that we have so many needs and they tend to be socioeconomic for our communities. You know, the keiki museum, we've got our unhoused issues, and I just ask that as properties like this, you know, come up that you guys consider helping us meet some of those needs that are specific to this area. That's just my own personal plea as I try to find ways to mitigate the issues we're facing based with the properties and the real estate, and the requirements, and all the different things. So, I'll be supporting this today and I would be remised if I did not take the opportunity to put my own personal plea in there because we are struggling with a number of different things as we're one of the most urban areas on the island. We therefore get the socioeconomic issues associated with that and don't always have all the resources to navigate or mitigate that. So, thank you. I'll be supporting this today. Thank you for making this very clean and clear and concise, which after a morning of intense zoning approvals, makes it more of a pleasure to review. So, I'll yield at this time. MR. ESMERALDA: Mahalo. CHR. INABA: Alrighty. I think it's really straightforward. I guess my only thing and I'm pretty sure I shared this in our meeting is, I prefer to have the time conditions, and I would like to see that, I believe right now Eho Street is still a one-way at the top portion? MR. ESMERALDA: Yup, that's correct. CHR. INABA: And should there be any change or, you know, development on the property there—and I know you folks have already made those improvements, but as a person who actually drives over there often, it really is inconvenient that it is only a one-way, and if we have more use in the area, I think it might require having it both ways. And I don't want to move that goal post now, but I think I just don't want to grant a forever zoning with the potential of more development later and then there's no ability to revisit. And based on what you folks have Page 44 LAAC-25 April 30,2024 represented, there is no imminent plans for development, so I think maybe that would be something I kind of feel strongly about and happy to put it out ten years like the other request that we granted today. But I just think it's in the best interest of the community to come back and visit that should there not be any development or should there be significant development outside of, you know, what's under the scope of the trust. So, we can maybe have a quick meeting. But that's what I want to present today, and maybe we can take up an amendment similar to that or in line with that at the Council reading. And I believe, because there's additional considerations, the last bullet is talking about non-performance being a result of unforeseen circumstances. I don't even want to get into that. The request here is here, but if we are to put in the time extension then we would also include those last two conditions that are standard language from the Code in line with that timing condition. MR. ESMERALDA: Sure. CHR. INABA: So, we can talk about that offline,but just wanted to share that today and then we can see what comes at our Council Meeting. Any further comment? It doesn't look like it. Shouldn't have asked. Okay, moving on. There is a motion on the floor to send Bill 151 to Council with a favorable recommendation. All those in favor? Vote on Bill 151: The motion to recommend passage of Bill 151 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba—8. Noes: None. Absent: Committee Members Galimba— 1. Excused: None. CHR. INABA: That brings us to the end of our agenda. Page 45 LAAC-25 April 30,2024 ADJOURN- There being no further business, Chair Inaba adjourned the meeting MENT: at 11:37 a.m. CHR. INABA: Mahalo. Approved: Mr. Holeka Goro Inaba, Chair (Date) Legislative Approvals and Acquisitions Committee HUtk Page 46