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HomeMy WebLinkAboutREP LAAC 048 2026-10-06 2024-2026REPORT OF THE LEGISLATIVE APPROVALS AND ACQUISITIONS COMMITTEE DATE: October 6, 2026 PLACE: Council Chambers Hilo, Hawaii TIME: 12:36 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 1025/13ill No. 187 Your Committee on Legislative Approvals and Acquisitions, to which was referred Bill No. 187, reports as follows: Bill No. 187, transmitted by Managing Director William V. Brilhante, Jr., via Communication No. 1025, dated July 21, 2026, amends section 25-8-14 (Waik6loa Village District Zone Map), Article 8, Chapter 25 (Zoning Code) of the Hawaii County Code (2016 Edition, as amended), by changing the district classification from Residential and Agricultural —1 acre (RA -IA) and Open (0) to Multiple -Family Residential — 1,500 square feet (RM-1.5), Family Agricultural —1 acre (FA -IA), Agricultural —10 acres (A-10A), and Open (0) at Waik6loa, South Kohala, Hawaii, covered by a portion of Tax Map Key: 6-8-002:016 (Applicant: Waikoloa Green LLC) (Area: 14,868 acres). The Leeward Planning Commission forwards its favorable recommendation for this amendment to the State Land Use Boundaries Map for the requested change of zone, which would allow the applicant to develop a 400-unit multiple -family housing complex with a clubhouse and related improvements. The property is located at the southeast side of Pua Melia Street, approximately 810 feet south of its intersection with Waik6loa Road. Legislative Approvals and Acquisitions Meeting of September 1, 2026 Planning Director Jeffrey Darrow, Planning Consultant John Pipan, and applicant Waikoloa Green LLC Principals Jon Yoshimura and Daniel Popkin were present in the Chambers. Mr. Darrow provided an overview of the Planning Department's recommendations. Mr. Yoshimura and Ms. Popkin provided an overview of the proposed development explaining a four-year planning process that intended to address workforce, affordable, and market -rate housing, community gathering space, food security, renewable energy, and a Hawaiian sense of place. They also discussed working with the community, Hawaiian Electric, the State Department of Transportation (DOT), and wildfire -safety advocates on infrastructure hardening, firebreaks, and emergency access. They explained the project is phased over an extended period and would not strain the aquifer. Committee Member James E. Hustace shared that the Waik6loa community faces continuing wildfire risks and asked about Hawaii Water Service (HWS), system capacity, water availability, and planned investments. The applicant said HWS had been consulted early and that the project team included water -resource expertise. Mr. Pipan disputed assumptions in published material about the Waimea Aquifer explaining that the aquifer had not undergone the Commission on Water Resource Management's (CWRM) formal groundwater management area designation process. The applicant stated that future water sources and costs could change over the project's development. LAAC Report No. 48 LAAC-48 Page 2 October 6, 2026 Committee Member Ashley L. Kierkiewicz raised concerns regarding the cumulative implications of water use and the need to understand how the proposed development would affect water availability for other existing and future developments. Committee Member Jenn Kagiwada acknowledged positive project elements but emphasized the County's responsibility to examine whether projected demand could approach sustainable -yield limits and affect other projects. She also questioned whether demand estimates for the agricultural parcels reflected actual agricultural production. The applicant said HWS had been consulted and had used a conservative demand estimate for the agricultural portions and that the long development timeframe would allow future water conditions to be reassessed. Mr. Hustace asked about community engagement and benefits that the project would provide to Waik6loa residents. The applicant described outreach to the Waik6loa Village Association identified needs for community facilities and emergency services, proposed five acres for a possible community center or related public facility, and discussed a conservation easement of approximately 111 acres with the Waik6loa Dry Forest Initiative. The applicant stated that the easement would provide an opportunity for stewardship, including restoration using drought and fire resistant native plants and trail access. Bill No. 187 was amended with the contents of Communication Nos. 1025.2, 1025.3, and 1025.5, and postponed, as amended to Draft 2, to September 15, 2026. Legislative Approvals and Acquisitions Meeting of September 15, 2026 Planning Director Jeffrey Darrow, Planning Consultant John Pipan, and applicant Waikoloa Green LLC Principals Jon Yoshimura and Daniel Popkin were present in the Chambers. The applicant reported that an engineering review found the original water demand estimate had been overstated and presented a revised estimate reflecting a 72 percent reduction. The applicant also reiterated its proposed development initiatives and a $10 million fair -share contribution. It described proposed water conservation measures and further work with the DOT on firebreaks and the Kamakoa Nui emergency egress. Planning Consultant John Pipan responded to testimony concerning environmental review, the existing trail, and Chapter 343 of the Hawaii Revised Statutes (HRS) stating that the project did not trigger an Environmental Assessment or Environmental Impact Statement on the grounds identified by testifiers and discussed the potential role of Na Ala Hele Trail and Access Program if the trail were determined to be a state trail interest. Committee Member Holeka Goro Inaba's requested Jonathan Scheuer, Ph.D., of Kahalawai Consulting, to provide an independent presentation on Hawaii water law, the public trust doctrine, and the state's groundwater management framework under HRS Chapter 174C and asked for an independent, non -biased perspective on the water resource issues. Dr. Scheuer explained that the Waimea aquifer had not been formally designated as a groundwater management area and discussed concerns about sustainable yield, existing and projected demand, and gaps in available data. He noted that the County's Water Use and Development Plan was last updated in 2010 and emphasized coordination between land use and water resource planning. He also discussed the County's responsibility to consider public trust purposes, including domestic needs, Native Hawaiian LAAC Report No. 48 LAAC-48 Page 3 October 6, 2026 traditional and customary practices, ecological resources, Department of Hawaiian Home Lands (DHHL) needs, and agriculture with emphasis on identifying actual water needs, considering alternatives, and assessing potential impacts on public trust uses. Mr. Inaba also sought additional information from the Planning Department regarding other proposed developments and the cumulative water implications, further stating that the water issue needed to be considered in conjunction with other projects and requested additional coordination with CWRM. Committee Member James E. Hustace stated that housing was needed but that wildfire, evacuation, drainage, and other infrastructure concerns had to be addressed. He emphasized that conditions could reduce risk but not eliminate it and called for responsible growth. Committee Member Dennis "Fresh" Onishi questioned whether the agricultural lots would support commercial farming or primarily family residences with agricultural areas and asked where the food hub's agricultural production would occur. He expressed concern that portions of the presentation appeared to extend beyond what was specifically reflected in the proposal. The applicant explained that the agricultural component was intended to include family homes with agricultural plots rather than conventional commercial farms. Committee Member Matt Kaneali`i-Kleinfelder said more time was needed to assess the water information and said more time was needed to assess the water information and the proposed amendment. He questioned the County's incomplete understanding of water sources and cumulative demand and requested a list of pending and proposed developments. Mr. Darrow said the Planning Department was developing such information. Mr. Kaneali`i-Kleinfelder also raised concerns about unreported well use and the need for a holistic assessment of housing, water, and infrastructure. Committee Member Rebecca Villegas stated that Dr. Scheuer's presentation was alarming as it raised concerns about future water use and remaining aquifer capacity. She drew on lessons from Maui and cautioned against waiting until resources or infrastructure reached a critical point. Ms. Villegas emphasized that her concerns were not intended as criticism of the applicant but reflected the broader question of whether the County was approaching a point at which available infrastructure and water resources could no longer safely support additional development. Committee Member Michelle M. Galimba observed that a large development's water impacts could be reduced if suitable resources and conservation measures were identified and noted that agricultural activity could include alternatives such as aquaponics. Committee Member Jenn Kagiwada asked about the public trust doctrine and relevant case law, including Kauai Springs. Dr. Scheuer discussed the need to identify actual project needs, consider alternative sources, and evaluate effects on ecosystems, Native Hawaiian cultural practices, DHHL needs, public uses, and farming. Mr. Pipan noted that HWS had access to brackish water from the adjacent `Anaeho`omalu Aquifer and other potential non -potable sources. Ms. Kagiwada expressed concern about the County's public trust responsibilities and noted that further information could be obtained through postponement. Committee Member Ashley L. Kierkiewicz said water availability remained unresolved and requested additional CWRM information before determining whether the project and existing commitments could be accommodated. Committee Chair Heather L. Kimball agreed that additional information from CWRM would be beneficial and that she would attempt to obtain further information or participation from CWRM. LAAC Report No. 48 LAAC-48 Page 4 October 6, 2026 Bill No. 187, Draft 2 was then amended with the contents of Communication Nos. 1025.10 and 1025.11, and postponed, as amended to Draft 3, to the October 6, 2026. Legislative Approvals and Acquisitions Meeting of October 6, 2026 Planning Director Jeffrey Darrow, Planning Consultant John Pipan, and applicant Waikoloa Green LLC Principals Jon Yoshimura and Daniel Popkin were present in the Chambers, and Deputy Director of the Department of Land and Natural Resources and Water Resource Management Commissioner Ciara W.K. Kahahane was present via Zoom. Committee Chair Heather L. Kimball referenced Communications 1025.18, 1025.19, and 1025.20, which contained information from the Department of Water Supply, HWS, and the CWRM. The applicant requested favorable action, emphasizing the need for housing, describing more than 600 proposed homes, including approximately 400 rental units near the Waik6loa Shopping Center and potential paths to homeownership. The applicant discussed work on roadway connections, including a willingness to pursue an additional connection, and reiterated the position that there would be no water, no development. The applicant cited HWS's Will Serve letter and studies suggesting that additional well testing could provide further information about available water. The applicant also emphasized conservation and Condition B, which would prevent development from proceeding without demonstrated water service. The applicant stated that it had worked in good faith to address wildfire risks and disputed allegations of coordination with the Planning Department to conceal or minimize those concerns. Committee Member James E. Hustace said the central question was whether growth could proceed responsibly while protecting the community, acknowledging concerns regarding wildfire, roads, schools, drainage, and other infrastructure while also recognizing the need for economic development. He cited strengthened drainage and flood -mitigation provisions, affordable -housing sequencing, and a $2.5 million Capital Improvement Project allocation he submitted for Waik6loa design and infrastructure needs. Mr. Darrow stated that he did not identify a current HRS Chapter 43 trigger based on the use of state or County land or funds or applicable archaeological - registration provisions and explained that the General Plan 2045-related amendments addressed Firewise USA, evacuation concerns, and that conditions and annual reporting provided checkpoints for monitoring the project. Ms. Kahahane addressed the Council's request for information regarding the Waimea Aquifer and sustainable yield. She explained that CWRM had reviewed non -reporting wells and estimated their pumping capacity at approximately 0.122 million gallons per day. She stated that the Waimea Aquifer was operating at approximately 91 percent of its approved sustainable yield, which is approximately 16 million gallons per day. Ms. Kahahane further explained that CWRM did not have sufficient project -specific information to determine the proposed development's effect on the aquifer because the specific water source had not been identified. She also stated that there was no consistently agreed -upon definition of "authorized planned use" and that the County had not completed an updated Waimea water -use plan since the previous planning work. Ms. Kahahane also stated that CWRM had completed a deep monitoring well they've monitored since February 2026, and they have not observed concerning changes. Committee Member Matt Kaneali`i-Kleinfelder asked about the County's water -use planning, non - reporting wells, and whether a comprehensive list of proposed developments could help CWRM track LAAC Report No. 48 LAAC-48 Page 5 October 6, 2026 cumulative demand. Ms. Kahahane agreed that closer coordination between land -use and water - resource planning would be helpful. Mr. Kaneali`i-Kleinfelder expressed concerns about water, wildfire, evacuation roads, affordable housing, and said he could not support the development because he believed the broader safety and infrastructure issues remained unresolved. Committee Member Dennis " Fresh" Onishi asked whether the applicant would purchase water from HWS or develop its own wells and asked about the status of unexploded -ordinance and defense -site concerns. The applicant explained that surveys were being conducted and that applicable conditions would apply. Mr. Onishi questioned the expected development timeframe, affordability and affordable housing requirements, area median income, and the cost of housing. He expressed concern that housing prices in the $700,000 to $1,000,000 range would be inaccessible to working families. Mr. Onishi asked about the nature of HWS's pumping authority. CWRM clarified that because the area was not a designated groundwater management area, HWS did not hold_a permit specifying an aquifer allocation in gallons per day in the same manner as in a designated area; pumping capacity and sustainable yield are distinct. Mr. Onishi requested HWS participation in future discussions. Committee Member Rebecca Villegas emphasized that HWS's ability to pump water did not necessarily establish that the aquifer could sustainably support the projected demand and stated that CVA IM was the appropriate entity to address this concern. Ms. Villegas raised concerns about drinking water, fire protection, evacuation, and infrastructure, and ultimately could not support a development that could place residents at risk if an emergency occurred before adequate infrastructure was available. Committee Member Jenn Kagiwada acknowledged the need for housing but questioned whether the community could rely on further infrastructure promises. She also recognized that requiring a single development to bear the entire cost of a regional roadway would not necessarily be reasonable. Ms. Kagiwada stated that she viewed the roadway as an important leverage point for ensuring that meaningful progress was made toward improving community safety. She further discussed the possibility of deferring the matter until a measurable commitment could demonstrate that the County, developer, and other stakeholders were seriously addressing the infrastructure needs of the Waik6loa community. The Committee then voted to amend Bill No. 187, Draft 3 with the contents of Communication No. 1025.21. Your Committee on Legislative Approvals and Acquisitions is not in accord with the purpose and intent of Bill No. 187, as amended to Draft 4, and forwards it to Council with a negative recommendation. 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 A PROV ;e AC UI I O� Cat. HEATHER L. KIMBALL, CHAIR LAAC REPORT NO.: 48 ADOPTED: