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HomeMy WebLinkAboutREP LAAC 043 2026-07-07 2024-2026REPORT OF THE LEGISLATIVE APPROVALS AND ACQUISITIONS COMMITTEE DATE: July 7, 2026 PLACE: Council Chambers Hilo, Hawaii TIME: 12:00 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 937/Bill No. 168 Your Committee on Legislative Approvals and Acquisitions, to which was referred Bill No. 168, reports as follows: Bill No. 168, transmitted by Managing Director William V. Brilhante, Jr., via Communication No. 937, dated May 27, 2026, repeals Ordinance Nos. 19-38, 09-50, 09-49, 06-138, 06-137, 95-118, 92-36, 90-10, 86-49, 533 (1980), and 594 (1973) and amends Chapter 25, Article 8, Section 25-8-3 (North Kona Zoning Map) and Section 25-8-5 (Kailua Urban Zoning Map), of the Hawaii County Code 1983 (2016 Edition, as amended), by changing the district classification from Village Commercial — 7,500 square feet (CV-7.5) and Multiple -Family Residential — 2,500 square feet (RM-2.5) to Double -Family Residential — 3,750 square feet (RD-3.75) and Agricultural — five acres (A-5A) at Hienaloli 4, 5TH, and 6TH, North Kona, Hawaii, covered by Tax Map Key: 7-5-010:013 (Planning Director Initiated) (Area: 6.467 acres). The Leeward Planning Commission forwards its favorable recommendation to revert the current zoning of 3.331 acres from Village Commercial to Double -Family Residential and 3.227 acres from Multiple -Family Residential to Unplanned zoning district. This property is located on the north side of Hualalai Road, approximately 1,000 feet east of its intersection with Kuakini Highway, Hienaloli 4'' and 5 h, North Kona. Planning Director Jeffrey W. Darrow, Land Use Planning Consultant Daryn Arai, and landowner Andy Xie were present in Hilo chambers. Mr. Darrow provided a PowerPoint presentation identified as Communication No. 937.1, noting the request to revert the zoning was made by the current landowners, who no longer intend to pursue the original proposed development of a 104-unit senior independent living community. Mr. Arai noted the landowners are requesting the property be reverted to its original, native zoning designations that existed in the 1970s when the property was purchased. While no specific development plans have been finalized, he indicated that the proposed RD-3.75 zoning on the makai portion could allow for approximately 38 units, likely in duplex configurations, while the agricultural portion could allow for a single-family farm dwelling and up to three accessory dwelling units (ADUs). He emphasized that site constraints, including topography and archaeological considerations, may reduce the overall unit count following further determination. LAAC Report No. 43 LAAC-43 Page 2 July 7, 2026 Committee Member James E. Hustace's inquired why the previously proposed senior living project did not proceed. Mr. Arai stated that he was not fully aware of all prior challenges but noted that both the senior housing and a potential hotel development did not materialize, and the original landowners had since passed away. Mr. Xie added that he did not have knowledge of the prior owners' challenges but confirmed the current intent is to pursue residential housing as he is in the construction industry. Mr. Hustace expressed disappointment that a specialized senior housing project would not move forward but noted support for the proposed housing potential. Committee Member Rebecca Villegas asked about the change in ownership and potential property tax implications. Mr. Arai stated he had not analyzed the tax impacts. Further discussion addressed infrastructure constraints, including roadway conditions along Hualalai Road, drainage concerns, and the area's susceptibility to flooding during Kona Low weather events. Mr. Xie noted he has been familiar with the Kona area since 2017 and is aware of the property area. Ms. Villegas acknowledged the need for additional housing but highlighted the infrastructure challenges associated with the site. Committee Member Holeka Goro Inaba inquired whether reverting the zoning would retain or trigger any affordable housing requirements. Director Darrow explained that repealing prior ordinances would remove all previously imposed conditions, including affordable housing requirements. Mr. Inaba suggested that given the parcel's history and proposed reversion, the Council may wish to further explore whether an affordable housing component should be required. Mr. Arai reiterated that reverting legacy zoning would not carry forward any prior conditions or requirements. Committee Chair Heather L. Kimball noted that Section 4 of the bill, typically used to impose conditions in rezoning ordinances, may not be applicable in this case due to the reversion, and further consultation with Corporation Counsel may be necessary. Committee Member Jenn Kagiwada questioned how the proposed reversion aligns with the County's General Plan and long-term land use vision. Director Darrow explained that while the RD-3.75 portion is consistent with housing objectives, the agricultural portion remains within an urban area and could be subject to future rezoning. He emphasized that the Planning Department's recommendation is based on standard practice to honor landowner requests to revert to prior zoning, rather than a determination of the highest and best use of the property. Ms. Kagiwada expressed concern about the long-term implications, including the possibility that the property could remain undeveloped for extended periods. Committee Member Matt Kaneali`i-Kieinfelder addressed legacy zoning practices. Director Darrow noted that earlier zoning designations predated modern subdivision codes and planning standards, which evolved in the 1980s. Mr. Hustace further inquired about available water units and infrastructure capacity. Mr. Arai stated that 28 water units have been secured, with an additional 22 units available, totaling approximately 50 units. Mr. Arai added that the Department of Water Supply would ultimately determine water allocation requirements for any future development. Discussion also included potential roadway and infrastructure improvements with Director Darrow explaining that such matters would be addressed during the development review process rather than through conditions in the ordinance. LAAC Report No. 43 LAAC-43 Page 3 July 7, 2026 Ms. Kagiwada asked whether the proposed development could include short-term vacation rentals. Director Darrow clarified that the proposed zoning would not permit such uses, although bed -and - breakfast operations may be allowed. Mr. Arai confirmed that no vacation rental uses are being proposed. Your Committee on Legislative Approvals and Acquisitions is in accord with the purpose and intent of Bill No. 168, and recommends its passage at 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 ATHER L. Id BALL, CHAIR LAAC REPORT NO.: 43 ADOPTED: JUL 2 3 2M