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HomeMy WebLinkAboutMIN LAAC 2024/09/16 (2022-2024)Committee on Legislative Approvals and Acquisitions 311t Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii September 16, 2024 CALL TO The regular meeting of the Committee on Legislative Approvals and Acquisitions ORDER: was called to order at 10:30 a.m., in the Council Chambers, Kailua-Kona, by Mr. Holeka Goro Inaba, Chair. ROLL CAI,T - Present: Mr. Holeka Goro Inaba, Chair Ms. Michelle M. Galimba, Vice Chair (via videoconference from Hilo) Ms. Cindy Evans, Member Ms. Jenn Kagiwada, Member (via videoconference from Hilo) Ms. Ashley L. Kierkiewicz, Member (via videoconference from Hilo) Ms. Heather L. Kimball, Member (via videoconference from Hilo) Ms. Susan L. K. Lee Loy, Member (came in later, via videoconference from Hilo) Ms. Rebecca Villegas, Member Absent & Excused: Mr. Matt Uneah'i-Kleinfelder, 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: Chad Wiggins: Maxine Kahaulelio: (representing Waimea PIRA) Chuck Flaherty: (representing Sierra Club Hawaii Island Group) Bill 198 (Comm. 1015); and Bill 199 (Comm. 1015), in opposition. Bill 199 (Comm. 1015), in opposition. Res. 611 (Comm. 1017), in support. Kristin Counter: Bill 198 (Comm. 1015); and Bill 199 (Comm. 1015), in opposition. (See Comm 1015.1) LAAC-31 September 16, 2024 Ceci Davenport: Bill 198 (Comm. 1015); and Bill 199 (Comm. 1015), in opposition. John Kawano: Bill 198 (Comm. 1015); and Bill 199 (Comm. 1015), in opposition. Ana Kahoopii: Bill 198 (Comm. 1015); and Bill 199 (Comm. 1015), in opposition. Benjamin Garfinkle: Bill 198 (Comm. 1015); and Bill 199 (Comm. 1015), in opposition. (See Comm. 1015.2) Change Order As directed by the Chair and with no objection from the Council Members, of Business: the following items were taken out of order: Bill 198: AMENDS THE STATE LAND USE BOUNDARIES MAPS FOR THE COUNTY OF HAWAI'l BY CHANGING THE DISTRICT CLASSIFICATION FROM THE AGRICULTURAL DISTRICT TO THE RURAL DISTRICT AT WAIMEA, SOUTH KOHALA, HAWAI'l, COVERED BY TAX MAP KEY: 6-4-024:027 ;and Bill 199: AMENDS SECTION 25-8-11 (LALAMILO-PU'UKAPU ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI'l COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL — 5 ACRES (A-5a) TO RESIDENTIAL AGRICULTURAL — 0.5 ACRES (RA-0.5a) AND NEIGHBORHOOD COMMERCIAL — 10,000 SQUARE FEET (CN- 10) AT WAIMEA, SOUTH KOHALA, HAWAI'L COVERED BY TAX MAP KEY: 6-4-024:027. (ADDlicant: KauDulehu Land, LLC) (Area: 5.349 Acres) The Leeward Planning Commission forwards its favorable recommendation for this amendment to the State Land Use Boundaries Map and an unfavorable recommendation for the requested change of zone, which would allow applicant to subdivide the property into eight lots consisting of three retail/commercial lots fronting Mdmalahoa Highway and five residential agricultural lots. This property is located at 64-983 Mdmalahoa Highway. Reference: Comm. 10 15 Intr. by: Mr. Inaba (B/R) CHR. INABA: Thank you, Mr. Clerk. Mahalo to our testifiers who came today to share their inana'o on these bills. At the request of the applicant and their Page 2 LAAC-31 September 16, 2024 representative, we will be postponing both bills to October 15t1i. So, with that, I'll ask my Vice Chair for a motion to postpone. MR. HENRICKS: Chair Inaba, we would first need a motion on the floor for a favorable recommendation if anybody is so inclined to make that motion. CHR. INABA: Is there a motion to forward Bill 198 and 199 to Council with a favorable recommendation? MR. HENRICKS: I'm sorry to interrupt again. They would need to be individual motions as these bills are separate and distinct. Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 198 on first reading. Seconded by Ms. Lee Loy. Motion to Postpone: Ms. Kierkiewicz moved to Postpone Bill 198 to October 15, 2024. Seconded by Ms. Lee Loy. CHR. INABA: Any discussion on postponement? MS. KIERKIEWICZ: Chair, just to clarify, the postponement is coming at the request of the applicant? MS. KIERKIEWICZ: They need more time to consider options and coordinate with Planning Department. CHR. INABA: Yes. And I believe Mr. Arai might be online if anyone has questions. But my office did receive the request to postpone. Is there any further discussion on the postponement? All those in favor of postponing Bill 198 to the October 15th Committee meeting, please say "aye." Vote on Motion The motion to postpone Bill 198 to October 15, 2024, was to Postpone: carried by the following voice vote: (Approved) Ayes: Committee Members Evans, Galimba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder — 1. Excused: None. CHR, INABA: With that, a motion to forward Bill 199 to Council with a favorable recommendation, please? Page 3 LAAC-31 September 16, 2024 Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 199 on first reading. Seconded by Ms. Galimba. Motion to Postpone: Ms. Kierkiewicz moved to postpone Bill 199 to October 15, 2024. Seconded by Ms. Galimba. CHR. INABA: Any discussion on the postponement? Vote on Motion Ms. Kierkiewicz moved to postpone Bill 199 to to Postpone: October 15, 2024. Seconded by Ms. Galimba and carried (Approved) by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba — 8. Noes: None. Absent: Committee Member Kdneall'i-Kleinfelder — 1. Excused: None. Return to Order The Chair directed the Committee to return to the order of business. of Business: ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 611-24: AUTHORIZES THE DIRECTOR OF FINANCE TO NEGOTIATE A SIXTY- FIVE YEAR LEASE WITH THE HOUSING AND LAND ENTERPRISE OF HAWAPI COUNTY, DBA: HALE 0 HAWAIJ FOR THE PURPOSE OF DEVELOPMENT AND CONSTRUCTION OF A BELOW MARKET RATE SINGLE-FAMILY HOME ON TAX MAP KEY: 2-4-051:094 FOR A COMMUNITY LAND TRUST PROGRAM AT A SET LEASE AMOUNT OF $ 10.00 PER YEAR Allows for Hale 0 Hawai'l to finance, construct, and sell a below market rate home on state lands, subject to affordability restrictions, to an eligible purchaser for affordable housing and shelter purposes. Reference: Comm. 10 17 Intr. by: Mr. Inaba (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 611-24. Seconded by Ms. Kagiwada. CHR. INABA: We do have Assistant Housing Administrator Harry Yada, I believe, in our Hilo Chambers. Mr. Yada, would you like to just give us an overview and then we'll open it up for discussion? Page 4 LAAC-31 September 1.6, 2024 (Note: At this time, Assistant Housing Administrator Harry Yada came forward to address the members of the Committee.) MR. YADA: Good morning, Committee Chair, Committee Members. The Office of Housing and Community Development requesting authorization for the Director of Finance to negotiate a 65-year lease with Housing Land Enterprises of Hawaii County dba: Hale O Hawai`i, who is the only community land trust I understand on the island. As you know, we previously got Council approval to do a new 65-year lease in the University Heights subdivision in Hilo. The lease was completed. The land trust actually just got their permits and are actually weeks away or maybe have started construction on a single-family home, which is nice to see happening. And this is on state land. The request in front of you is for another lot. It's owned by the state. It's on Laula Road near the AJA Hall. It's a 10,000 square foot lot. And so, given the progress we've made on the University Heights which we considered as kind of a pilot in that it's a lease and a sublease by the land trust, we feel confident we can proceed with the next project on this lot in Hilo near the golf course. We actually have, I think, a representative of the land trust in Kona available to answer any questions. CHR. INABA: Thank you. Ms. Wilkenden, is that correct? If you'd like to come forward and make any comment at this time? And if you could just start off by introducing yourself for the record and your role responsibilities with the organization. (Note: At this time, Hale O Hawai`i Executive Director Loretta Wilkenden came forward to address the members of the Committee MS. WILKENDEN: Good morning and thank you for your time. Good morning, Harry, in Hilo. My name is Lorette Wilkenden. I'm the Executive Director of Hale O Hawai`i. CHR. INABA: Alright. And you can proceed if there's anything you would like to add prior to discussion from Council Members. MS. WILKENDEN: Thank you. As Mr. Yada said, we are beginning construction on the previous home that's in University Heights. Permits have been approved and I think the septic is actually being installed this week or at least very soon, and we look forward very much to the opportunity to work on the second parcel of land, which will allow us to keep working towards our mission of providing affordable homes here in Hawaii. CHR. INABA: Thank you very much. Page 5 LAAC-31 September 16, 2024 MS. WILKENDEN: Thank you. CHR. INABA: Opening it up at this time for discussion. Starting in Hilo. MS. KAGIWADA: Chair? CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Good to see you, Loretta. Thank you for being here and thank you for continuing to pursue these opportunities that help our residents get into affordable homes. Looking forward to that project, the construction starting on the project at University Heights, my friends actually bought the property next door to that lot and have been fixing up the home there so that they can live there as well. So, looking forward to that, and very supportive of this project as well. I think the land trust model is something that most folks can get behind and having these places be affordable to our residents is super important. So, really appreciate the work you've done on this and your continued support for getting affordable housing built on our island. Thank you. MS. WILKENDEN: Thank you. CHR. INABA: Any further discussion? If not MS. GALIMBA: Chair? This is Council Member Galimba. CHR. INABA: Sorry. Go ahead, Council Member Galimba. MS. GALIMBA: Thanks. Just a quick one. I'm just looking at the tax map, and I see that this is adjacent to a 10-acre piece that's owned by the state, and I can't remember. Do you have any plans for that, Mr. Yada? I thought maybe I remember possibly you do. MR. YADA: Yes, we do. This one lot, the subject of today, is an individual lot that for some reason the state never did anything with. We got also as part of this disposition; we got an executive order on actually 30 acres adjacent to it that we currently are planning for single-family as well as potentially multi -family projects within the 30 acres. MS. GALIMBA: Great. I think this is actually possibly the thing I was planning to talk to you about before. Is the Office of Housing planning to do any like lot preparations, or I guess what I'm asking is, I just came back from the Planning conference and there was discussion there about how on Kaua'l, their housing department is actually sort of getting into the development mode as far as preparing. You're putting in infrastructure for developers to develop affordable housing such that some of the risk involved is somewhat mitigated. And I was Page 6 LAAC-31 September 16, 2024 wondering if we are also doing this and if this might be one of those sites where that might be happening? MR. YADA: Yes. We actually have finding to do the engineering and the plans for the roads and infrastructure on this parcel. And we would probably go out for an RFP (Request for Proposal) to develop the multi -family sites as well as single-family lots that will potentially be future, you know, community land trust projects. So, we forecast I think it was thirty something single-family lots as well as two multi -family parcels that could be rentals. This is state land so it can't be sold, but we can do community land trust projects as well as leases for multi -family projects. MS. GALIMBA: Thank you very much. And thanks for the latitude, Chair. Yeah, I support this project, but I also am really glad to hear that we're looking at a little bit more scale with the same model. Thanks very much. I yield. CHR. INABA: Alright. Any further discussion? Just a question. Mr. Yada, the ground lease when we do these types of agreements, does it give the County the opportunity to terminate the lease or are we locked in for the full duration? MR. YADA: Well, I mean, any lease can be terminated if there's a default. Obviously, we hope that never happens. But it's a lease, so it has some default clauses. This would be a sublease to the buyer under a community land trust situation. So, there could be a default theoretically by the buyer, that could maybe reflect, but my understanding is the land trust also has the authorization to assume that we'll buy back the lease from a purchaser. So, we don't anticipate the chances of a, you know, default and a cancellation, but it can always happen. CHR. INABA: Alright. Thank you. With that, all those in favor of forwarding Resolution 611-24 to Council with a favorable recommendation, please say aye. Vote on Res. 611-24: The motion to recommend adoption of Res. 611-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder — 1. Excused: None. Page 7 LAAC-31 September 16, 2024 BILLS FOR ORDINANCES ADJOURN- MENT: Approved: The Chair directed the Committee to proceed to the next order of business, Bills for Ordinances. (Note: The items in this category were taken up previously, out of order.) CHR. INABA: This brings us to the end of our agenda. There being no further business, Chair Inaba adjourned the meeting at 11:20 a.m. F44 Mr. Holeka Goro Inaba, Chair Legislative Approvals and Acquisitions Committee HI/tk 10�ts �� q (Date) Page 8