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HomeMy WebLinkAboutMIN LAAC 2025/12/16 (2024-2026)Committee on Legislative Approvals and Acquisitions 17t' Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii December 16, 2025 CALL TO The regular meeting of the Committee on Legislative Approvals and Acquisitions ORDER: was called to order at 11:34 a.m., in the Council Chambers, Kailua-Kona, by Ms. Heather L. Kimball, Chair. ROLL CALL: Present: Ms. Heather L. Kimball, Chair Mr. Dennis "Fresh" Onishi, Vice Chair (came in later) Ms. Michelle M. Galimba, Member Mr. James E. Hustace, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Mr. Kaneali`i-Kleinfelder, Member (came in later) Ms. Rebecca Villegas, Member Absent & Excused: Ms. Ashley L. Kierkiewicz, 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: (There were none.) BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. LAAC-17 December 16, 2025 Bill 111: AMENDS SECTION 25-8-33 (CITY OF HILO ZONE MAP) ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL — 3 ACRES (A-3a) TO SINGLE- FAMILY RESIDENTIAL — 10,000 SQUARE FEET (RS-10) AT WAIAKEA, SOUTH HILO, HAWAI`l, COVERED BY TAX MAP KEY: 2-4-080:014 (Applicant: Mailani Development LLC) (Area: 4.4669 acres) The Windward Planning Commission forwards its favorable recommendation for the requested change of zone, which would allow the applicant to subdivide the property into 14 house lots and a road lot. The property is located at 1077 Abe Street. Reference: Comm.638 Intr. by: Council Member Kimball (B/R) ; and Comm. 638.1: From Planning Director Jeffrey Darrow, dated December 3, 2025, transmitting a PowerPoint presentation for Bill 111. Motion to Approve: Ms. Kagiwada moved to recommend passage of Bill 111 on first reading. Seconded by Ms. Galimba. CHR. KIMBALL: With that I will invite the Planning Department Director Darrow to provide the presentation on this agenda item. Director Darrow. (Note: At this time, Planning Director Jeffrey Darrow 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, or online at http://hawaiicounty.gov.granicus.com. A copy of the PowerPoint presentation is made a part of the record, see Comm. 638.1.) CHR. KIMBALL: Thank you, Director. At this time, I'd like to ask the applicant or the applicant's representative if they'd like to make any comments before we begin our deliberations. Please introduce yourself for the record. (Note: At this time, Land Use Planning Consultant Daryn Arai came forward to address the members of the Committee.) MR. ARAI: Happy Holidays Chair Kimball and members of the committee. My name is Daryn Arai. I'm a Land Use Planning Consultant, residing in Hilo, assisting the applicant, Mailani Development, who is represented by Charles Umemoto, sitting next to me on my right. Sorry we couldn't be in Kona personally before you today, but we do have Mr. Sidney Fuke sitting in your Kona Chambers as well, and he's also assisting Mailani Development with this Page 2 LAAC-17 December 16, 2025 change of zone application. We appreciate the favorable recommendation on this rezoning request by the Planning Director as well as by the Windward Planning Commission and we agree to the proposed conditions of approval. As the Director's presentation highlighted, the project is situated within a portion of Waiakea Homestead that is completely surrounded by a single-family residential development. This project is basically almost like infrlling an area that has been long established as a residential community. The County Council, say, in the past six years, has approved a number of rezoning in the immediate area that now provides up to 90 single-family residential home sites to local and Hawaii State residents. And speaking to people who are creating these new subdivisions, more than 90 percent of those lots have been sold to local and Hawaii residents. So it's been a great accomplishment. The applicant has a proven track record. The land immediately makai of the subject property to the east was developed by him to a rezoning back in 2019, where now 27 single-family residential lots now exist and homes are currently under construction. The applicant wants to continue providing those types of residential opportunities to more residents within our state. So we look forward to your favorable consideration of this change of zone request. And both Charles, myself, and Sidney in Kona, can make ourselves available for any questions that you have. CHR. KIMBALL: Thank you, Mr. Arai. With that I will pass it over to the body. I see Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Overall, very supportive of this zoning change. I just wonder if somebody, and maybe this is Director Darrow, could speak to the information about the changes to Ahe Street, because that's the thing that I'm a little confused about, because it looks so nonconformed. When I look at it right now, what Abe Street is doing there, it's got this kind of break in it. And so can somebody explain to me what's going to be happening with that road, if anything? MR. DARROW: Aloha, Council Member Kagiwada. I'm just trying to pull up the information. This was part of a previous change of zone, and part of that change of zone had a condition requiring the applicant to, upon request from the County, to dedicate that portion of that property to the County for the County to be able to construct that portion of the roadway. So this currently utilizes a driveway access for the property that's below the current subject property. It is not part of this application. It was a separate application. MS. KAGIWADA: So is that going to be happening? It's going to be dedicated to the County. Page 3 LAAC-17 December 16, 2025 MR. DARROW: That is completely up to the time frame of the Department of Public Works when they're ready to improve that portion of Abe Street. At that time, they will request that the applicant subdivide it out and dedicate it to the County so that they can approve it. I'm not sure of any particular time frame at this time. MS. KAGIWADA: Okay. So as far as the road changes go to Kikaha, that's just going to be similar to what was done at Mailani Street, which extends to Abe Street. Is that correct? MR. DARROW: Correct. MS. KAGIWADA: And then it will be up to the County to improve Abe street and make that a full connected road there. MR. DARROW: Yes. MS. KAGIWADA: Okay. I guess I need — MR. DARROW: There's a portion as you can —I'm not sure you can see on the map —the lower portion where Abe Street is located was rezoned this year, in fact, and included that condition regarding the dedication of Abe Street. There's another property between this property and Abe to the east and that currently there's a good chance in the future. We'll see what happens that they may come in for a change of zone and at that point they can provide connectivity or possibly the County could request to condemn that portion of the property for the connection. MS. KAGIWADA: Okay. Yeah. Because right now it seems like if you bring Kikaha down to Abe Street, you can only go —I'm sorry, I don't know what direction that is; it's south. MR. DARROW: South. MS. KAGIWADA: Southeast, south. But you can't go the other direction, correct? MR. DARROW: Correct. MS. KAGIWADA: Okay. Alright. Yeah. That was really my question about that. I do appreciate the building residential infill like this. So I'm supportive of the project overall. I yield. CHR. KIMBALL: Thank you, Council Member Kagiwada. Council Member Hustace. Page 4 LAAC-17 December 16, 2025 MR. HUSTACE: Thank you, Chair. Director Darrow, just a question on the subdivision. There's an existing home site on that southern corner there. They have access off of private property across a graveled Abe Street, correct? MR. DARROW: Correct, MR. HUSTACE: Will their access change, as shown in the subdivision proposal, to Kikaha Street instead or it will remain off of Ahe Street? MR. DARROW: According to the applicant the access onto Ahe Street will be abandoned and they will provide access onto Kikaha Street. MR. HUSTACE: Okay. Thank you. CHR. KIMBALL: Thank you, Council Member Hustace. Please let the record reflect that Council Member Onishi and Council Member Kaneali`i-Kleinfelder have joined us. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Mr. Darrow, there's an interesting note in one of the Communications, 638 I believe, regarding the change of conditions for the fair share contributions given the allowable density that is possible. Can you just run through that quickly? It's the first time, maybe not the first time that we have seen it, but the first time that I've seen it discussed at length. MR. DARROW: Thank you, Council Member Kdneali`i-Kleinfelder. This is the first time that we're discussing this. You know, we had quite a lengthy discussion in the Planning Department regarding the change to the zoning code regarding `ohana's and accessory dwelling units (ADU). Typically, when you see a rezoning come through for residential type lots, or even agricultural, you usually will see a condition that prohibits the allowance of a second dwelling, whether it be an `ohana or whether it be an additional farm dwelling, whatever it may be. Because of the direction of the administration, the Council, the state regarding every opportunity to provide housing opportunities, we've taken that condition out, which allows for people that come in for rezonings to be able to allow additional dwelling units, whether it be agricultural or accessory dwelling units. With that said, if people take advantage of that allowance, it obviously continues to have a larger impact on the region, and fair share has always been put in place to be able to kind of assist with the regional impacts that happen based on higher density for a particular rezoning action. So in this case, it's obviously not going to happen, but the potential is there that each one of these lots could build up to three additional accessory dwelling units. That's highly unlikely. But the fact is that most likely several of them may take advantage of this and build additional Page 5 LAAC-17 December 16, 2025 dwelling units. And so at that point, when they come in for a building permit, Planning will catch that it was part of a rezoning with this condition and there will be a required fair share payment for that prior to the issuance of a building permit. MR. KANEALI`I-KLEINFELDER: The three ADUs, where does that number come from? MR. DARROW: Chapter 25-6-30 on. That's our new accessory dwelling unit section in the Zoning Code. MR. KANEALI`I-KLEINFELDER: Three was the maximum? I thought it was more than that. MR. DARROW: You have one main dwelling and up to three accessory dwelling units. MR. KANEALI`I-KLEINFELDER: So four units total? MR. DARROW: Correct. MR. KANEALI`I-KLEINFELDER: Okay. And the wording, the fair share contribution shall have a combined value of $17,921.82 per lot/ADU. Does that mean that each lot with one home will have a fair share contribution of $17,921, or does each additional dwelling unit come with that same fair share contribution? MR. DARROW: So typically what will happen is the applicant will come in for a subdivision. Prior to final subdivision, they will need to pay their fair share for the proposed lots minus one. The minus one is the existing lot, which is currently, you know, they have an existing lot. So we don't obviously charge for the existing lot. But there will be 13 additional lots, so they will need to pay 13 times 17, plus thousand dollars prior to final subdivision approval. That is just for the first house and lot. Any additional or accessory dwelling unit will again trigger a payment of fair share for that additional unit. And that will occur when they come in. It could be, you know, five years from now; it could be 10 years from now, when they come in for a building permit. MR. KANEALI`I-KLEINFELDER: Okay. So in the event that someone does build one, two, or three units on their property, then each time an ADU is built, there is a potential requirement or potential for another fair share contribution for that parcel? MR. DARROW: It would be a requirement based on this condition in the rezone. MR. KANEALI`I-KLEINFELDER: And the requirement is —say you have lot, whatever, you know, lot number one, they have one home. Their first fair share Page 6 LAAC-17 December 16, 2025 contribution will be $17,921. But if they proceed to build another unit, what then is the additional fair share contribution? MR. DARROW: If they come in within a period of time and I believe it's three years from the approval of this, it will remain as it is. There is an adjustment if you look at the bottom of the condition, it talks about —I'm sorry, it's up —just by — MR. KANEALI`I-KLEINFELDER: I saw it. Honolulu, the pricing. MR. DARROW: Yeah. The HCPI (Honolulu Consumer Price Index) Index — that's how we adjust. Every year it adjusts. And so at the time they come in, they'll adjust that Honolulu Consumer Price Index, and whatever it is at that point, that will be the fair share. Now keep in mind, this is brand new. This is the first application that the committee is seeing, and it's being brought forth for this discussion. It is something that you may agree with. It is something you may not agree with. So again, the reason we did, you know, speak about this at Windward Planning Commission, that this was going to be the first time this is coming forward. So again, it's good that we're discussing this because that's the whole point. If the Council feels like this is too much, then it can be removed. If they feel this is appropriate, it can remain in. MR. KANEALI`I-KLEINFELDER: Okay. Sorry, circling back. If someone buys a lot, or the applicant makes 13 lots, whatever it is —you have lot number one, you have one home, $17,921. Upon the building of the second ADU, what is the fair share contribution? MR. DARROW: If they come in within a relatively short time, which again is about three years from the date of approval of this ordinance, the HCPI will not change. So it will be this price. If they come in later on, the longer it waits, the higher that price goes because the index will change. MR. KANEALI`I-KLEINFELDER: Okay. MR. DARROW: There's an adjustment that happens every year. MR. KANEALI`I-KLEINFELDER: Okay. So each ADU triggers an equal fair share contribution that's set in the ordinance. Not each parcel, but each ADU that's built on, could be the same parcel, is that right? MR. DARROW: Correct. MR. KANEALI`I-KLEINFELDER: Interesting. Okay. Thank you very much, Jeff. I appreciate it. Page 7 LAAC-17 December 16, 2025 MR. DARROW: Thank you. MR. KANEALI`I-KLEINFELDER: I yield. CHR. KIMBALL: Thank you, Council Member Kaneali`i-Kleinfelder. Any questions from anyone else? All right. I would just to follow on what Council Member Kaneali`i-Kleinfelder was asking, just a couple of points. So this lot, if approved, and the subdivision, would have an affordable housing requirement. Does the department or Office of Housing typically waive those fair share fees with the lots that are meant to be provided at the affordable cost? MR. DARROW: We were just talking about that. That usually only happens in a 201H-type application where fair share fees can be waived. In this particular case, prior to the applicant complying with affordable housing requirements, to get final subdivision approval, they may have an agreement in place. But basically, they still are required to pay the fair share for the number of additional lots they're creating in the subdivision. I do feel that we should have that conversation in regards to whether or not fair share should be applied to the units that are required by affordable housing guidelines. If you recall, we have that language that was put in that kind of said that it's at the end of Condition M that allowed developers the opportunity that if they proposed up to 50 percent -plus of affordable housing with their project, the fair share would be waived accordingly. So we have it there, but we have not discussed the waiving of fair share for the 20 percent that's required. CHR. KIMBALL: Thank you, Director. Yeah, I think that it's important for us, as a body, to have a conversation about it at some point or another. The other thing of note is that these lots will not be served by municipal wastewater, which means that they would still be constrained by the DOH's (Department of Health) requirements of a maximum of five bedrooms tied to an individual wastewater system. Correct? MR. DARROW: That's correct for 13 of the lots. One of the lots has 20,000 square feet. So they actually would be able to put two septic systems. CHR. KIMBALL: Okay. I'm sure you may not know this. Do you have any idea, is there a sewer system available anywhere in the vicinity of this area? Is it somewhere that's going to be potential build -out for wastewater? MR. DARROW: I am not sure of the closest location, but our understanding is it's not anywhere in close proximity. CHR. KIMBALL: That's unfortunate. Okay. I'll try to get an answer for the rest of the body about that next time we meet, about if there's any potential or build - out in this area because unfortunately that still presents a barrier for us in terms of giving desirable infill in some of these areas where density is appropriate. Page 8 LAAC-17 December 16, 2025 Without any further comments from the body, we'll move forward to the vote to approve Bill 111. Council Member Inaba. MR. INABA: Sorry. Real quick. Regarding the affordable housing requirement to the applicant. How do you folks intend to meet that three -credit affordable housing requirement? MR. ARAI: Thank you for the question, Council Member Inaba. The applicant has been in discussion with the Office of Housing and Community Development on how to set aside the obligations, which currently stand at 2.8, rounding up to three housing credits that he needs to earn. He's currently exploring a possibility of off -site rental opportunities in order to satisfy those obligations. Right now it's still being discussed. So again, the opportunities could be on -site; it could be also off -site. But he is exploring those types of rental opportunities. MR. INABA: Alright. Thank you, Mr. Arai. Thank you, Chair. I yield. CHR. KIMBALL: Any further comments? Seeing none. All those in favor of approving Bill 111 and forwarding to Council with a favorable recommendation, please say "aye." Vote on Bill 111: The motion to recommend passage of Bill 111 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Onishi, Villegas, and Chair Kimball — 8. Noes: None. Absent: Committee Member Kierkiewicz —1. Excused: None. CHR. KIMBALL: With that, there is no other business on our agenda. Thank you to the director and the applicant and their representatives for being here today. With that, we are adjourned. Mahalo. MR. ARAI: Thank you. Happy holidays. CHR. KIMBALL: Thank you. Page 9 LAAC-17 ADJOURN- MENT: Approved: December 16, 2025 There being no further business, Chair Kimball adjourned the meeting at 12:04 p.m. CW. Heather L. Kim all, Chair Legislative Approvals and Acquisitions Committee HI/mp (Date) Page 10