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HomeMy WebLinkAboutREP LAAC 019 2025-08-05 2024-2026REPORT OF THE LEGISLATIVE APPROVALS AND ACQUISITIONS COMMITTEE DATE: August 5, 2025 PLACE: Council Chambers Hilo, Hawaii TIME: 9:31 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 375Bill No. 67 Your Committee on Legislative Approvals and Acquisitions, to which was referred Bill No. 67, reports as follows: Bill No. 67, transmitted by Managing Director William V. Brilhante, via Communication No. 375, dated June 20, 2025, amends Section 25-8-33 (City of Hilo Zone Map), Article 8, Chapter 25 (Zoning) of the Hawaii County Code 1983 (2016 Edition, as amended), by changing the Zone Map Classification from Single Family Residential—10,000 square feet (RS-10) to General Commercial—10,000 square feet (CG-10) at Waidkea, South Hilo, Hawaii, covered by Tax Map Key: 2-2-022:022 (Applicant: Correa Ohana, LLC) (Area: approx. 33,180 square feet). The Windward Planning Commission forwards its favorable recommendation for the requested change of zone, which would allow the applicant to demolish the existing, single-family dwelling and garage and construct a multi -family apartment complex. The property is located at 1198 Kino`ole Street. Legislative Approvals and Acquisitions meeting of July 22, 2025 Planning Director Jeffrey Darrow and Deputy Director Michelle Alin, Office of Housing and Community Development (OHCD) Administrator Kehau Costa, Deputy Corporation Counsel (DCC) Jean Campbell, and Managing Members of Correa Ohana, LLC, Hank Correa, Jr. and Hank Correa, III, were present for questions. Committee Chair Heather L. Kimball announced an error found on the map of Bill 67, listing Kamand Street twice and it has been corrected via Communication No. 375.2, submitted by Ms. Kagiwada. Mr. Darrow provided a PowerPoint presentation regarding the change of zone application. Committee Member Jenn Kagiwada questioned the need for commercial zoning versus multi -family residential zoning as the proposed project being identified is a multi -family apartment complex. Mr. Darrow explained that the focus is the change of zone and not the proposed development but further noted that multi -family residential provides only limited possibilities for the area; the application for CG-10 is consistent with the area and provides multiple opportunities for development. Mr. Correa also replied that his focus has always been on housing and that the affordable housing route is the primary goal so long the rents justify the costs, adding if it does not pan out there are other opportunities as commercial allows for mixed use; for example, a mom-and-pop business up front with a multi -family unit behind. Ms. Kagiwada noted the possibility for dense affordable housing and appreciates the efforts for such a housing project, however, has concerns that it will end up being another commercial space should the housing project not be realized. LAAC Report No. 19 LAAC-19 Page 2 August 5, 2025 Committee Member Ashley Kierkiewicz inquired as to the proposed audience approximate monthly rental cost for the multi -family apartment complex. Mr. Correa responded that the project would be through an affordable housing platform with the intent to serve 80 percent local residents, further noting that the two buildings would cost approximately $900,000 per building with the rent range of $1,276 - $1,658 per month as of today's cost of construction. Mr. Correa also stated that they have met with the OHCD twice as well as with the prior administration on this project and are confident that they can collaborate with OHCD to provide the much -needed affordable housing for the community while also benefiting from the fair share opportunity. Ms. Kierkiewicz questioned if the Council can revisit the rezoning if the housing project falls through. Ms. Campbell answered that such action by the Council could lead to legal challenges for the County and strongly advised against trying to subtract uses permitted with the zoning. Committee Member James Hustace questioned what form of commercial properties were currently operating in the zoning area. Mr. Darrow answered that there are medical facilities, a public housing establishment, and other general office spaces. Mr. Hustace further inquired on the range of percentage rates for affordable housing. Mr. Darrow advised that when a developer comes in for rezoning for a housing project they are required to do .20 percent affordable housing through either credits or actual housing and if OHCD confirms they are doing 50 percent affordable, Planning then utilizes that figure. Committee Member Dennis "Fresh" Onishi addressed his concerns on the traffic egress and ingress, inquiring whether a traffic study should be an added condition to the change of zone. Mr. Darrow replied that the project and its location are considered smaller with less than 50 vehicles and with the infrastructure already in place being sufficient it does not require any traffic study. Mr. Onishi questioned if this project could be handled like one during his prior experience on the Council where the County implemented a condition so the development would be for student housing for a minimum of ten years. Mr. Darrow replied that it's possible but that they avoid using the rezone process as a spot zone or special permit route and that the department just determines if the infrastructure can fit the requested zoning. Mr. Onishi shared that he wanted assurance that if any changes do happen, it is targeted for development and that a condition be implemented for safeguarding or suggested to keep the zoning as multi -family (RS-10). Mr. Darrow answered that doing so would require the owner/developer to start the process over again. Ms. Kimball suggested that Ms. Kagiwada have a conversation with Mr. Correa to put in the ordinance their representation for the change of zone. Ms. Kimball questioned Condition N and the waiver of fees based on percent of affordability and asked if this development was for 201H. Mr. Darrow ensured that the applicant was not pursuing a 201H and further noted that lots of developers are not going through 201H due to road costs. Bill No. 67 was postponed to August 5, 2025. Legislative Approvals and Acquisitions meeting of August 5, 2025 Planning Director Jeffrey Darrow and applicant Hank Correa, Jr. were available for questions. Committee Member Jenn Kagiwada thanked the applicant for their efforts and the level of discussion. LAAC Report No. 19 LAAC-19 Page 3 August 5, 2025 Ms. Kagiwada added that through no fault of the applicant, this change of zone highlighted the need for the Council to focus on changes to Chapter 11 to provide opportunities to hold a developer accountable to their proposed projects. She further stated that although she prefers to see this area zoned multi- family, it is an area that has the infrastructure for CG-10 and therefore she will support this measure. Committee Member Ashley Kierkiewicz added her appreciation for the dialogue and understands the Council is not approving projects, but the highest and best use of a property, and expressed her support for this change of zone. Your Committee on Legislative Approvals and Acquisitions is in accord with the purpose and intent of Bill No. 67, and recommends its passage on first reading. dbk AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALI`I-KLEINFELDER X KIERKIEWICZ X KIMBALL X ONISHI X VILLEGAS X Respectfully submitted, COMMITTEE ON LEGISLATIVE APPROVALS AND ACQUISITIONS r HEATHER I, 41MBALL, CHAIR LAAC REPORT NO.: 19 ADOPTED: AUG 2 0 2025