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HomeMy WebLinkAboutCOM 0075.000 2024-2026C. Kimo Alameda, Ph.D. Mayor William V. Brilhante, Jr. Managing Director Merrick Nishimoto Deputy Managing Director County of Hawaii - Office of the Mayor 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • Phone (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 Phone (808) 323-4444 • Fax (808) 323-4440 December 24, 2024 The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Chairman Inaba and Members of the County Council: SUBJECT: Change of Zone Amendment Application No. PL-REZ-2024-000065 Amendment to Change of Zone Ordinance No. 16 85 (REZ-05-000023) Applicant: Big Island Candies, Inc. Request: Amendment for Time Extension of Condition C (Complete Construction Timing), and Conditions D, E, and F (Roadway Improvements) Tax Map Key: (3) 2-2-034:066, 078, and 079, Waiakea, S. Hilo, Hawaii As required by Chapter 7, Sec. 6-7.5 (a)(3), Hawai`i County Charter, transmitted herewith for the County Council's consideration and action is the Windward Planning Commission letter regarding the above -referenced request. Sincerely, WILLIAM V. BRI, Managing Director TCouncilBigIslandCandiesPL-REZ-2024-065 Enclosures cc: Planning Department Comrn. No. s Ref. To: County of Hawaii is an Equal Opportunity Provider and Employer. Ref. Date 4 i^ - 3 20-25 C. Kimo Alameda, Ph.D. Mayor yLti� William V. Brilhante, Jr. _ Managing Director ��; is U � OF H► County of Hawaii WINDWARD PLANNING COMMISSION Aupuni Center 101 Pauahi Street, Suite 3 Hi, Hawaii 96720 Phone(808) 961-8288 Fax(808)961-8742 December 23, 2024 The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Chairman Inaba and Members of the County Council: Louis Daniele 11I, Chair Chantel Perrin, Vice Chair Lauren Balog Wayne De Luz Gordon Takaki SUBJECT: Change of Zone Amendment Application No. PL-REZ-2024-000065 Amendment to Change of Zone Ordinance No. 16 85 (REZ-05-000023) Applicant: Big Island Candies, Inc. Request: Amendment for Time Extension of Condition C (Complete Construction Timing), and Conditions D, E, and F (Roadway Improvements) Tax Map Key: (3) 2-2-034:066, 078, and 079, Waiakea, S. Hilo, Hawaii The Windward Planning Commission (Commission), at its duly held public hearing on December 5, 2024, considered the above -referenced application for a Change of Zone Amendment for an eight (8) year time extension to Condition C (Time Requirement to Complete Construction) and Conditions D, E, and F (Roadway Improvements) of Ordinance No. 1.6 85. The subject properties are located along the makai side of Kekuando`a Street between Laukapu Street and Hinano Street, Waiakea House Lots, Waiakea, South Hilo, Hawaii. The Commission voted to forward a favorable recommendation to the County Council based on the Planning Director's recommendation. The Commission concurred with the Planning Director's following reasons for a favorable consideration of the request. Criteria for granting the favorable recommendation are shown below in bold print. www.planning.hawaiicounty.Qov Hatvai`i County is an Equal Opportunity Provider and Employer plannin hawaiicountv.gov The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii December 23, 2024 Page 2 The applicant has submitted a request for an 8-year time extension to condition C and amendments to Conditions D, E and F of Change of Zone Ordinance No. 16-85, which rezoned approximately 45,450 square feet of land from a Single -Family Residential — 10,000 square feet (RS-10) to a General Commercial-20,000 square feet (CG-20) zoning district, to specify that required road improvements be constructed prior to occupancy permits for further development of the subject parcels, rather than within a specific timeframe. The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicants, successors, or assigns, and that are not the result of their fault or negligence. The applicant originally proposed to develop a production facility, cold storage, and visitor center on the subject properties. However, according to the applicant the delays in meeting the development conditions for Big Island Candies (BIC) are attributed to a variety of external factors impacting their financial and operational capabilities. A significant contributor is the adverse economic environment, including a weakened yen -to -dollar exchange rate that has reduced Japanese tourism, a critical market for BIC. Additionally, inflation has constrained the spending power of mainland tourists, directly affecting BIC's sales and, consequently, its capacity to fund expansions. This challenging economic backdrop has led BIC to seek extensions in zoning and construction deadlines as they navigate these market constraints. Furthermore, BIC has faced operational difficulties, including persistent labor shortages and supply chain issues that have increased the costs of materials and limited production capacity. These issues, exacerbated by the COVID-19 pandemic, have delayed BIC's ability to meet the scheduled development milestones for additional production and storage facilities. Past natural events, such as the 2018 lava flow, also limited visitor traffic to the region, compounding the economic strain on BIC's operations during that period. These factors, along with the pandemic's long-term effects, have hampered the company's plans for expansion and construction. BIC may plan to build a new production and storage facility at a different scale and design than what was originally proposed on Parcels 78 and 79 at Kekuanao`a and Laukapu Streets in the future, however, given the preceding discussion, those plans will not occur in the near term, thus they are requesting the 8-year time extension. Currently, Parcel 66 is used as a residential property and is occupied by two dwellings, which are permitted within the existing Commercial General (CG) zoning. Parcels 78 and 79, located at the corner of Kekuanao`a and Laukapu Streets, are used for temporary employee parking which is an accessory use to the main structure on an adjacent parcel. The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii December 23, 2024 Page 3 Additionally, BIC has requested amendments to specific development conditions, particularly those related to road improvement requirements, to allow for greater flexibility in their timeline. Given the economic pressures and shifting market conditions, extending deadlines for facility and road improvements will enable BIC to adapt to these circumstances more effectively, while maintaining economic viability and meeting the zoning requirements in a more sustainable manner. Based on the preceding, the Director has determined that the non-performance of required conditions of approval is the result of conditions that could not have been foreseen or are beyond the control of the applicant, and that are not the result of their fault or negligence. Granting of the proposed amendments would not be contrary to the General Plan, Community Development Plan, Zoning Code nor the original reasons for granting the Change of Zone. The Land Use Pattern Allocation Guide (LUPAG) Map component of the General Plan is a representation of the document's goals and policies to guide the coordinated growth and development of the County. It reflects a graphic depiction of the physical relationship among the various land uses. The LUPAG Map establishes the basic urban and non -urban form for areas within the County. The proposed request continues to conform to the LUPAG Map, which designates the property as High Density Urban (hdu) and allows for General commercial, multiple family residential and related services (multiple family residential up to 87 units per acre). There have not been any significant changes to the General Plan for this area since this request was originally approved that would affect this project. The existing CG-20 zoning and any subsequent commercial development of the property will continue to support a land use pattern consistent with the General Plan's hdu LUPAG designation. The approval of this time extension request and amendments to several conditions would not be contrary to the General Plan and zoning code, therefore, the Director recommends retaining the property's existing CG-20 zoning. Despite the 1975 Hilo Community Development Plan's suggested residential designation, this area is transitioning to commercial and light industrial uses. Land uses in the immediate area are a mix of commercial, industrial and residential uses. The property is bordered to the east and south by residential properties zoned Single -Family Residential-10,000 square feet (RS-10) and Neighborhood Commercial-10,000 square feet (CN-10,000). The area fronting Kekuanao`a Street is a mix of residential, commercial, and limited industrial including a Church between parcels 66 and 79, thus the proposed change of zone would be consistent with the zoning/land uses in the area. The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii December 23, 2024 Page 4 Access to the project site is currently from Kekuanao`a Street to the existing single-family dwellings on Parcel 66 and from Hinano Street for Parcels 78 and 79. Condition G of Ordinance No. 06-114 prohibits access from Kekuanao`a Street once the single-family dwellings are demolished. Access to Parcels 78 and 79 will be from Laukapu Street and access to Parcel 66 will be from Hinano Street. Roadway conditions D, E, and F will be amended as requested to reflect timing of roadway improvement requirements associated with further development of the properties prior to occupancy. To be consistent with the concurrency requirements of the Zoning Code, a condition of approval will require submittal of a Traffic Impact Analysis Report (TIAR) if a land use is developed that would generate over 50 peak hour trips. The applicant will be responsible for constructing any improvements identified in the TIAR required by the Department of Public Works. Electricity and telephone, fire, police, and emergency medical services are all available to the site nearby in Hilo. Based on the preceding, the proposed request will not unreasonably burden public agencies to provide for infrastructure and utilities to the project site. In their amendment request letter, the applicant proposed language to clarify the construction deadline and roadway improvement timeline. While previous Directors insisted on strict adherence to the timed performance conditions, the current administration is open to the applicant's suggested amendment language to roadway improvement conditions. Additionally, if approved, the amendment to Condition C will require some development to occur within 8 years of the amendment, thus if that development requires a certificate of occupancy, the roadway improvements will be triggered. Appropriate infrastructure such as water, wastewater, and roadway access are available or will be constructed by the applicant to support uses permitted under the CG-20 zoning. Conditions of approval will require the applicant to comply with Department of Water Supply (DWS) and Fire Department requirements to provide potable water and fire suppression water to the site, and to connect to the County sewer in the area. Based on the preceding, the request to amend Condition C (time to complete construction) to allow a time extension to complete construction of the proposed project and associated Conditions D, E, and F (Roadway Infrastructure) is not contrary to the original reasons for granting the change of zone. The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii December 23, 2024 Page 5 The request is not contrary to Chapter 205A, Hawaii Revised Statutes, relating to Coastal Zone Management. The project site is situated approximately 0.34 miles from the nearest shoreline and is not situated within the Special Management Area, there is no direct public access to the shoreline or mountains located within the project site, and commercial development of the property will be required to follow County drainage code for on -site drainage mitigation and to connect to the County sewer. As such, the proposed development should not have any substantial adverse impacts on coastal processes or conditions, nor will its approval be contrary to the objectives and policies of Chapter 205A, HRS relating to Coastal Zone Management. The development will to the extent feasible, reasonably protect native Hawaiian rights if they are found to exist. In view of the Hawaii State Supreme Court's "PASH" and "Ka Pa `akai O Ka ` Aina" decisions, the issue relative to native Hawaiian rights, such as gathering and fishing rights, must be addressed in terms of the cultural, historical, and natural resources and the associated traditional and customary practices of the site. Investigation of valued resources: No formal archaeological reconnaissance survey, oral history of kama`aina accounts of the area, historical survey of documentary records, or botanical study was included in the application, however, during the previous change of zone amendment in 2016, the Department of Land and Natural Resources — State Historic Preservation Division (SHPD) determined that although no archaeological inventory survey had been conducted, aerial photos indicated that the area had been subject to previous grading which has significantly altered the land. In addition, there is no evidence of any traditional and customary Native Hawaiian rights being practiced on the site, nor existence of any known valued cultural, historical or native resources in the area. The valuable cultural, historical, and natural resources found within the project site. Although no professional surveys were conducted on this site, the area has been improved and is located within an urban environment close to commercial, industrial and residential uses, it is unlikely that rare or endangered floral or faunal resources are on the site. Possible adverse effect or impairment of valued resources and feasible actions to protect native Hawaiian rights: There is no evidence of any valued cultural, historical, and/or natural resources found on the site, thus to the extent which traditional and customary native Hawaiian rights are exercised, the proposed action will not affect traditional Hawaiian rights; therefore, no action is necessary to protect these rights. However, conditions of approval will require the applicant to implement the archaeological monitoring plan and to follow necessary mitigation procedures in the event of an inadvertent find of archaeological remains while developing the property. With implementation of the mentioned conditions of approval the proposed action will not affect traditional Hawaiian rights. The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii December 23, 2024 Page 6 Lastly, this recommendation is made with the understanding that the applicant remains responsible for complying with all other applicable governmental requirements in connection with the proposed use, prior to its commencement or establishment upon the subject properties. Additional governmental requirements may include the issuance of building permits, compliance with the Fire Code, installation of improvements required by the American with Disabilities Act (ADA), among many others. Compliance with all applicable governmental requirements is a condition of this approval; failure to comply with such requirements will be considered a violation that may result in enforcement action by the Planning Department and/or the affected agencies. Based on the preceding findings, the Planning Director recommends that a favorable recommendation be forwarded to the County Council to amend Ordinance No 16-85. The accompanying draft bill to amend Ordinance No. 16-85 is provided for your consideration. Please note the proposed conditions of approval attached to the draft bill. Material to be deleted is bracketed and struct through; new material is underscored. This recommendation does not, however, sanction the specific plans submitted with the application as they may be subject to change given specific code and regulatory requirements of the affected agencies. The Planning Department's background report, recommendation report, PowerPoint presentation, and public testimonies are available for review at the following Laserfiche Weblink address: https://records.hawaiicounty.gov/weblink/Browse.aspx?dbid=l&startid=140583 The Commission hearing minutes of the December 5, 2024, meeting can be found at the following link once it is available: https://records.hawaiicounty.gov/weblink/Browse.aspx?dbid=l &startid=140429 Should there be any questions, please feel free to contact Planning Program Manager, Maija Jackson at (808) 961-8159. Sincerely, Go�cl;lanieGe 111 l—is Daniele III (Dec 23, 202409:46 FIST) Louis Daniele 1II, Chairman Windward Planning Commission P\wp60\PC\PCC2024-4\LBiglslandCandiesPL-REZ-2024-065wpe The Honorable Chairman Holeka Goro Inaba and Members of the County Council County of Hawaii December 23, 2024 Page 7 Enclosure: Draft Bill cc w/enclosure via email: Thomas Yeh, Esq., Law Offices of Yeh & Kim Department of Public Works Department of Water Supply Windward Planning Commission Jeffrey W. Darrow, Acting Planning Director Jean Campbell, Esq., Deputy Corporation Counsel Suzanna Tiapula, Esq., Deputy Corporation Counsel