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HomeMy WebLinkAboutMIN PCPLUED 2026/02/03 (2024-2026) DRAFT Policy Committee on Planning, Land Use, and Economic Development 21't Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii February 3, 2026 CALL TO The regular meeting of the Policy Committee on Planning, Land Use, and ORDER: Economic Development was called to order at 1:31 p.m. ;,in the Council Chambers, Hilo, by Ms. Ashley L. Kierkiewicz, Chair. ROLL CALL: Present: Ms. Ashley L. Kierkiewicz, Chair Ms. Michelle M. Galimba, Vice Chair Mr. James E. Hustace,, Member Mr. Holeka Goro Inaba,Member Ms. Jenn Kagiwada, Member' Ms. Heather L. Kimball, Member Mr. Dennis "Fresh" Onishi; Member Ms. Rebecca Villegas, Member Absent& Excused: Mr.-,Matt Kanedli`i-Kleinfelder, Member STATEMENTS The Chair directed the Committee to proceed to the next order of FROM THE business, 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: Robert Golden: Bill 124 (Comm. 708); Bill 125 (Comm. 709); and Bill 126 (Comm. 710), comment. Kevin Kushel: Bill 124 (Comm. 708); Bill 125 (Comm. 709); and Bill 126 (Comm. 710), in support. CHR. KIERKIEWICZ: Thank you. With that, I am going to actually pass the gavel to my Vice Chair Michelle Galimba, as I am introducing the suite of bills that are on today's agenda. Relinquish Chair: At this time, the Chair relinquished the Chair to Vice Chair Galimba. PCPLUED-21 February 3,2026 ACTING CHR. GALIMBA: Thank you. And I will be taking up the Chair at 1:39 p.m., and we will start with Bill 126. Change Order As directed by the Acting Chair and with no object from the Council Members, of Business: the following item was taken out of order: Bill 126: AMENDS CHAPTER 25, ARTICLES 1, 3, 5, AND 7, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO SPECIAL DISTRICTS Creates the Downtown Pahoa commercial district as a new special zoning district; establishes new permitted uses. Reference: Comm. 710 Intr. by: Council Member Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 126 on first reading. Seconded by Mr. Hustace. MS. KIERKIEWICZ: Thank you, Council Member Galimba. And I just want to take a moment to thank Council Chair Inaba for allowing all of these bills to be heard together as a coordinated package in one committee. This has been years in the effort undertaking spanning leadership from the Roth Administration, and now the Alameda Administration. Something that's been built it partnership with community, the Planning Department Recovery Division Corporation Counsel, Mainstreet Pahoa, and dozens and dozens of residents that care very deeply about the Downtown Pahoa Community, because it is a charming and historic town, and because the community has really struggled after the fires that took the Akebono Theater and,L,uquin's Restaurant, the 2018 eruption, and the Pandemic. So, this is one way°iri which we are hoping to reestablish some economic stability and viability in Pahoa and to ensure its long-term stability. Initially, our office had thought about supporting efforts around a Pahoa Master Plan. But this particular effort failed to gain traction three times because of two volcanic events, and then the Pandemic. And in hindsight that was a blessing in disguise because it really helped to clarify exactly what we were trying to get out of this process. A master plan for Pahoa would have been difficult to execute because the town is comprised of more than 330 property owners. To get everybody on the same page around what the plan should say; who should lead it, and where the resources are going to be coming from,proved to be very difficult. Page 2 PCPLUED-21 February 3,2026 So, instead of trying to plan for a single outcome,we decided to do something that was a bit more appropriate, and that is to leverage the legislative tools that we have as Council to empower property owners to do more with their property if they choose to. Keyword, if they choose to. So, this particular bill would establish a Special District for Pahoa. Pahoa already actually has a special district, and that is the Pahoa Village Design guidelines. We'll talk a little bit about that a little lateir today. Those were adopted in 2013, and that was to guide the esthetic development of Pahoa town; wanting to maintain that plantation style character and appeal. This particular special district would expand opportunities for property owners in downtown Pahoa. I'm a streets 44d landmarks kind of girl, and so, if you know Pahoa Town, the Downtown Pahoa Commercial District would be between Post Office Road and Akeakamai Loop where Aunty,Jan's Barber and Paul's Repair is. And it would impact properties that are immediately adjacent to Pahoa Village Road. These particular properties are also within State Land Use Urban, and what we're looking to do is just expand permitted uses,within this area to include not just Commercial Village,but also some Light Industrial uses. And to also elevate cultural enterprise as a viable property use: Because if you go through our zoning code right now, practicing culture and cultuiat enterprise is not something that is`explicitly called out. And I thought it was really important to elevate that,particularly, when you look at all the plans that we have; CDP (Community Development Plan), recovery plans, revitalization plats. So much of our communities have said they want culture to be a point of economic focus and function for the community. So, this Bill 126 would establish a Special District. It would reenforce Pahoa's role as a Regional Town Center. And that's expressly called out in the Puna CDP. Like I mentioned, we're expanding the permitted uses. And then, it would allow for just more economic diversification. One thing I just want to be very clear about is, it's not an improvement district: I'm going to repeat that one more time, this is not an improvement district. There is no special tax assessment that is going to be levied on property owners. This is simply about expanding opportunities in the event that folks want to be able to do more on their property. So, with that, happy to take any questions. But because this is a matter that amends Chapter 25, I will be making a motion to send this to the Planning Commission and Planning Department for their review and recommendation. Thank you, Chair. Page 3 PCPLUED-21 February 3,2026 ACTING CHR. GALIMBA: Council Member Kimball. MS. KIMBALL: Yes, thank you. Super-interesting concept and creative way to solve a challenging problem. I'm not objecting to these definitions, but curious just for my own understanding, with the co-working innovation hub, the creative media space, cultural enterprise as being created and new definition and new uses, were they not covered under commercial activities or other things previously, or is this just being more definitive about those types of uses? MS. KIERKIEWICZ: Chair, if I might. ACTING CHR. GALIMBA: Please du: MS. KIERKIEWICZ: Thank you. For the co-working innovation hub and creative media space, these were intentional call-outs. They could have been covered in one of the definitions that'Were there. 'But I think it was important to be expressly communicating the kinds of'activities that we wanted to see in the town, as with the onset of Hale Halawai O Puna, where the old Akebono Theater lot is located and,wanting to do more cultural gatherings in Pahoa Town. We wanted to have a very specific definition that called out the allowance of cultural enterprise, so that we can attract more of that. MS. KIMBALL: Okay, so, great. Just a question for Director Darrow or even for Corporation Counsel, if we say that these particular call-outs are a permitted use in,a certain area, even though they would be essentially covered. There isn't going to be any potential for anybody to say, well, they're not listed now as a permitted use in all these other zones. Does that mean they're not excluded; do you see what'I'm saying? Like let's say these are all permitted uses under Commercial, and you have Commercial as a permitted use in CV (Commercial Village) zoning district, right? Because these are called out separately as a use in this other area, does that exclude them from now being included in the definition of all the commercial activities? I presume not, but I'm just in abundance of caution here. (Note: At this time, Planning Director Jeffrey W. Darrow came forward to address the members of the Committee.) MR. DARROW: Aloha, Chair Kierkiewicz, Vice Chair Galimba, and Members of the Committee. Jeff Darrow with the Planning Department. We were ironically just talking about that. We are definitely in support of these new types of uses. They're very applicable in our day and age, especially the co-working and innovation hub, and the creative media space. Page 4 PCPLUED-21 February 3,2026 We recently went through a zoning code amendment that included meeting facilities, which has a cultural aspect to it. But this particular use, Cultural Enterprise really focuses on that particular use, and bringing in all the types of uses associated with it. So, we're really in support of that. Being that it's being introduced as part of this, we are in the process of doing our comprehensive zoning code update. This will be a good opportunity for us to include these in other zoning districts. So, as we go through that, we may introduce these sooner to zoning districts, but we definitely are going to include these in the applicable zoning districts across the zoning code. I hope that answers your question. Right now, it's being introduced in this particular district. But again, we're going to look at trying to apply it in other areas. MS. KIMBALL: My only concern here is that in the interim, and you know, we've been waiting on that zoning code update for a long time, is that other zoning districts might be prevented from having'these uses because they're not listed, but they're listed in this other one. And so,just want to make sure. Oh, Corporation Counsel, please, thank you. (Note: At this time Deputy Corporation Counsel Jean Campbell came forward to address,the members of the Committee.) MS. CAMPBELL: Good afternoon everyone. Jean Campbell, Deputy Corporation,Counsel. To answer your question, I think more directly, I think our,interpretation at the department, and I'll let the Director correct me if he thinks otherwise. This is more along the lines of"including but not limited to. So, it wouldn't limit the more general definition that already exists, but it adds specificity tee this particular area. So, I think the short answer to your question; or the way we're interpreting this is, it does not exclude these specifically called-out uses from the more general commercial definition that's still applicable in many other areas. MS. KIMBALL: That's all I needed to hear. Thank you. I yield. ACTING CHR. GALIMBA: Council Member Kierkiewicz. MS. KIERKIEWICZ: I was just going to say, the definitions you see before you, there are only three here, but I think previous drafts, they had like 17 other definitions. But Mr. (Jacob) Perry from LRB (Legislative Research Branch) encouraged me to exercise some restraints and just elevate the most appropriate ones for today. Thank you. Page 5 PCPLUED-21 February 3,2026 Any other questions? If not, I'd like to make a motion to forward this to the Commission. No, okay. Chair, motion to forward Bill 126 to the Windward Planning Commission and Planning Department for review and recommendation. Motion to Refer: Ms. Kierkiewicz moved to forward Bill 126 to the Planning Director and the Windward Planning Commission. Seconded by Mr. Hustace. ACTING CHR. GALIMBA: Any discussion? MS. KIERKIEWICZ: One second. I just wanted to get Corporation Counsel on the record,just kind of reinforcing the appropriateness of this particular motion, because it is an update to Chapter 25. But this has a very regional sort of focus to it. It's okay to send to Windward and not also Leeward in this particular context. We're treating it similar to as we would do a rezone which is the companion measure for this bill. MS. CAMPBELL: Exactly. This is very geographically specific. And so, yes, it would be appropriate to send it only to Windward and not to Leeward. Should something similar come up„in a Leeward area,, that would be sent to the Leeward Planning Commission; MS. KIERKIEWICZ: Thank you, Deputy: ACTING CHR- GALIMBA: Council Member Inaba. MR. INABA. Kalamai ACTING CHR, GALIMBA: So, Windward Commission and Planning Department is where this will be going. All in favor please say "aye." Any opposed? Vote on Motion The vote on the motion to refer Bill 126 to the Planning to Refer: Director and the Windward Planning Commission pursuant (Approved) to Section 25-2-43(b), Hawaii County Code was carried by the following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Galimba—8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: None. Page 6 PCPLUED-21 February 3,2026 ACTING CHR. GALIMBA: I do have to leave myself. So, I will be turning this over to Council Member Kimball. Relinquish Chair: At this time, the Acting Chair relinquished the Chair to Committee Member Kimball. ACTING CHR. KIMBALL: Please let the record reflect that as of 1:52 p.m. I have taken over the Chair. So, we will now go to Bill 124, Mr. Clerk. Return to Order The Acting Chair directed the Committee to return:to the order of business. of Business: BILLS FOR The Acting Chair directed the Committee to proceed to the next order of ORDINANCES: business. Bills for Ordinances. Bill 124: AMENDS SECTION 25-8-26 (PAHOA ZONE MAP), ARTICLE 8 CHAPTER 25 OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED) BY CHANGING THE DISTRICT CLASSIFICATION FROM VILLAGE COMMERCIAL 10,000 SQUARE FEET (CV-10) AND SINGLE-FAMILY RESIDENTIAL 10,000 SQUARE FEET (RS-10) TO DOWNTOWN PAHOA COMMERCIAL (DPC) AT WAIAKAHI`ULA, PUNA, HAWAIJ, COVERED BY THE AREA AS MORE PARTICULARLY DESCRIBED HEREIN Rezones certain areas in Pahoa to a prospective special zoning district classifications to be known as the Downtown Pahoa Commercial District, which is proposed for establishment via Bill No. 126. Reference: Comm. 708 Intr. by: Council Member Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 124 on first reading. Seconded by Mr. Hustace. ACTING CHR. KIMBALL: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. So, Bill 124 is the companion measure to the Downtown Pahoa Commercial District bill that we just forwarded to the Planning Commission. This would authorize a rezone of the properties in this particular area. It's important to note that the County cannot force any property owner into a rezone, so our office over the last couple of years has been in communication with property owners about our intentions to pursue this particular legislative pathway. We are following up now that the bill has been filed with an official letter just requesting their permission to include their TMK (Tax Map Key) in the Page 7 PCPLUED-21 February 3,2026 rezoning ordinance. So, any property owners that do respond to our office by the time this particular bill comes back to Council after being vetted by the commission, the ordinance will be updated with their TMK information. So, just so that you folks are aware for how all of that would play out. We've had a number of community meetings in person and on Zoom to socialize this particular idea. Now folks just need to opt in to take advantage of this. If property owners do not take advantage of this particular rezone, if they want to utilize anything in the DPC (DowntownPahoa Commercial) going forward, they would have to go about applying for a rezone themselves. So, this kind of saves them that particular step, money and time. So, we're hoping that folks see value in the collaboration with the County and take advantage of this particular situation. Thank you, Chair. ACTING CHR. KIMBALL: Alright. Any questions? Council Member Kagiwada. MS. KAGIWADA: Thank you. Just to the maker, so, I understand the 10,000 square feet Residential spaces. Is that'just like, it just happens to fall within that area? Is itbeing used for Single-Family Residential this time, and will that cause any issues if they do opt to go with the Downtown Pahoa Commercial? MS. KIERKIEWICZ: Thatwhole area thafwe are applying this zoning overlays the DPC, is currently Commercial Village. So, there is a mix of residential and businesses. It wouldn't conflict if folks want to still continue to use their home as a residence. This would just provide the opportunity for them to do sotnothing commercial in the event that they wanted to. We often see a lot of families that may not want to be living in Pahoa, but they might see value in turning it into some kind of business enterprise. So, this would all6w them to der that. MS. KAGIWADA: Alright, thank you. And then, I have one more question, which is just around taxation. Will all these properties still be taxed at highest and best use, or is there going to be different real property tax applied to them based on'a new Commercial Zone? MS.:KIERKIEWICZ: I'm so glad that you asked that. There are no changes to real property tax as you know. You are assessed based on how you utilize the property. So, if there is no change to your use,then there's no change to the tax structure that is applied to your particular property. MS. KAGIWADA: Okay. So, the only change would be if you say, had a Residential and then changed to a commercial use or something in the normal way. It would be based on use, not on designation. Page 8 PCPLUED-21 February 3,2026 MS. KIERKIEWICZ: Correct, based on use. MS. KAGIWADA: Alright, based on use. Just wanted clarification on that. Thank you, I yield. ACTING CHR. KIMBALL: Anyone else. Alright, so Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. Motion to forward Bill 124 to the Windward Planning Commission and Planning Department for review and recommendation. Motion to Refer: Ms. Kierkiewicz moved to forward,Bill 124 to the Planning Director and the Windward Planning Commission. Seconded by Mr. Hustace. ACTING CHR. KIMBALL: All those in favor, please say "aye." Any opposed? Vote on Motion The vote on the motion to refer Bill 124 to the Planning to Refer: Director and the Windward Planning Commission pursuant (Approved) to Section 25-2-43(b), Haai`i County Code was carried by the following voice vote: Ayes: Committee Members Husstace, Inaba, Kagiwada, Kierkiewicz, Onishi, Villegas, and Acting Chair Kimball—7 ' Noes: None. Absent: Committee Members Galimba and Kaneali`i- Kleinfelder—2. Excused: None. ACTING,CHR. KIMBALL: Moving on to the last item. Bill 125: AMENDS`CHAPTER 25, ARTICLE 7, DIVISION 4, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO,THE PAHOA VILLAGE DESIGN DISTRICT Clarifies duties, procedures, and other regulations regarding the Pahoa Village Design Guidelines and the Pahoa Design Review Committee; makes other technical and non-substantive amendments. Reference: Comm. 709 Intr. by: Council Member Kierkiewicz Page 9 PCPLUED-21 February 3,2026 Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 125 on first reading. Seconded by Mr. Hustace. ACTING CHR. KIMBALL: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. Like I mentioned earlier, in 2013, the community developed, and then the Council adopted the Pahoa Village Design guidelines. So, that is a Special District overlay that currently exists in Pahoa. These guidelines have helped to suppori'the thoughtful development anesthetic of structures in Pahoa town; Puna Kai Shopping Center is a really good example of how those guidelines have been applied. What this bill does is it actually clarifies how these guidelines are used, including scope of the design review,the process and authority of this particular body, and then the kuleana of the design body. In rimy Various inquiries over the years to three different Planning Directors, no one was quite clear on who is serving on this particular body. It's not like a typical Kailua-Kona Village'Design Commission or a planning commission where members are nominated by the Mayor and confirmed by the Council. It's a bit more grassroots and Ad Hoc. And we definitely want to keep it that way. Pahoa just wants to roll that way, and that's totally fine, but there just needs to be a bit more clarity and,transparency around how folks can apply to serve on this particular body. Soy the applications would be available to community. This code provision specifies the kind of candidates thatwe are looking for as a county. The Action Committee would be in charge of reviewing, vetting, and approving individuals to serve on'ths particular commission. And then it would set out what their kuleana would be. And that is to proactively engage business owners,- folks thatare looking to do any kind of development in Pahoa. That way, folks know from the onset what the expectations are for what the building should look like. Anyway,just again, housekeeping measure providing a bit more guidance in our review of this Section of Code. We also found that this committee every ten years should be reviewing the guidelines. We are passed the ten-year mark. And so, this ordinance, I think, is a very gentle prod at the Planning Department to start engaging the Action Committee and members of the Guideline Commission to start looking at, are these guidelines still applicable? Are there ways in which we want to make any updates? How do we modernize this so that it is a toolkit that folks can actually refer to and use and implement? Page 10 PCPLUED-21 February 3,2026 So, happy to be catalyzing this particular discussion. Really don't mean to make extra work for the Planning Department Director, but happy to be helpful and supportive in this process. Because I think this is something that is very important to Pahoa. Happy to answer any questions folks have. Thank you. ACTING CHR. KIMBALL: Anyone else have questions or comments? Council Member Hustace. MR. HUSTACE: Thank you, Chair. Mahalo, Council Member Kierkiewicz for modifying this, for updating it, for taking action here. It's definitely a much looser organization in the Waimea area as it pertains to kind of it being a design aspect of the community architecturally. So, definitely would like to tone your setting here in kind of setting your standards. So, mahalo. ACTING CHR. KIMBALL: Thank you, Council Member. Anyone else? Alright seeing none, Council Member Kierkiewicz, MS. KIERKIEWICZ: Thank you, Chair. Motion to forward Bill 125 to the Windward Planning Commission and Planning,Llirector for review and recommendation. Motion to Refer: Ms. Kierkiewicz moved to forward:Bill 125 to the Planning Director and the Windward Planning Commission. Seconded by Mr. Hustace. ACTING CHR.KIMBALL: All these in favor, please say "aye." Any opposed? Vote on Motion The vote on the motion to refer Bill 125 to the Planning to Refer; -Director and the Planning Commission and Planning Department (Approved pursuant to Section 25-2-43(b) Hawaii County Code was carried by the following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kierkiewicz, Onishi, Villegas, and Acting Chair Kimball -7. Noes: None. Absent: Committee Members Galimba and Kaneali`i- Kleinfelder-2. Excused: None. Page 11 PCPLUED-21 February 3,2026 ACTING CHR. KIMBALL: Seeing no further business, we are adjourned. The time is now, 2:02 p.m. Thank you. ADJOURN- There being no further business, Acting Chair Kimball adjourned the meeting MENT: at 2:02 p.m. Approved: Ms. Ashley L. Kierkiewicz, Chair (Date) Policy Committee on Planning, Land Use, and Economic Development AK/dt Page 12