HomeMy WebLinkAboutCOM 0919.000 1998-2000
4OJM1V OF N~wO
William G. Davis
Stephen K. Yamashim Managing Director
Mayor
Henry Cho
~r'T Deputy Managing Director
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<LI11XI1fv1 of pufu n
25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 961-8211 Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suite 103 • Kailua-Kona, Hawaii 96740
(808) 329-5226 Fax(808)326-5663
September 8, 2000
Honorable James Y. Arakaki, Chairman
and Members of the County Council
County of Hawaii o
25 Aupuni Street `
Hilo, HI 96720r
Dear Chairman Arakaki and Members: -
State Land Use Boundary Amendment Application (SLU 00-003) Co
Request: Agricultural to Urban cn
Change of Zone Application (REZ 00-003) _
Request: A-la to RA-.5a
Applicant: Dennis Inouye
Tax Map Key: 2-4-35:25
Amendment to Change of Zone Ordinance No. 91 116 (REZ 698)
Applicant: Kaneshiro and Sons Enterprises, Ltd.
Request: Extension of Time to Condition B, Delete Condition C
Tax Man Key: 1-5-7:20
As required by Chapter 4, Sec. 5-4.3(C), Hawaii County Charter, transmitted herewith for the
County Council's consideration and action are the Planning Commission's letters and
enclosures regarding the above-referenced requests.
Sincerely,
e
Stephen K"Yamashiro
Mayor
LA81500MAY
Enclosures
cc: Planning Department Comm. No. 9I 9
'91.11 s/ 1.j File No. Al
Ref, To:-RC
Ref. Date__ ~ 1 I p nog
VVP l~
Stephen K Yamashiro
Mayor .
(9IILiltfV II ~2iilI2CT
PLANNING COMMISSION
25 Aupuni Street, Room 109 • Hilo, Hawaii %720.4252
(808) %1-8288 • pax (SOS) %1-%15
S[ C' U 8 2000
Honorable James Y. Arakaki, Chairman
and Members of the County Council
County of Hawaii
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Arakaki and Members:
Amendment to Change of Zone Ordinance No. 91 116 (REZ 698)
Applicant: Kaneshiro and Sons Enterprises, Ltd.
Request: Extension of Time to Condition B, Delete Condition C
Tax Map W: 1-5-7720
The Planning Commission, after a duly held public hearing on August 15, 2000, voted to
recommend for your approval the proposed legislative bill to amend Condition B (secure Final
Plan Approval) and delete Condition C (commence construction) of Ordinance No. 91-116,
which reclassified approximately 4.901 acres of land from an Agricultural (A-la) to
Neighborhood Commercial (CN-20) zoned district. The property is located at the junction of
the Pahoa Bypass Road and Keaau-Pahoa Road and also bordered by Kahakai Boulevard,
Keonepoko Iki Homesteads, Pahoa, Puna, Hawaii.
The Commission concurs with the following Planning Director's reasons for recommending
favorable consideration of the request:
The purpose of this request is to amend Conditions B and C in the ordinance
relating to Final Plan Approval and commencement of construction. Effective
December 2, 1991, Ordinance No. 91 116 changed the district classification of the
subject property from A-la to CN-20. The applicant requested the change of zone to
establish a supermarket on the site. The property was also the subject of a State Land
Use Boundary Amendment from Agricultural to Urban. The subject property is
located south of the Pahoa By-Pass Road between the Keaau-Pahoa Road and the
Honorable James Y. Arakaki, Chairman
and Members of the County Council
Page 2
Kahakai Boulevard extension. Access to the property is from Kahakai Boulevard,
which has an approximate 50-foot right-of-way.
The applicant is requesting an amendment to Condition B and C of Ordinance
No. 91 116 for an additional five (5) years to complete construction of the project.
The applicant has stated that development plans were stalled due to the economic
downturn since the rezoning was approved. Furthermore, the applicant relinquished its
development rights of this property to another entity in 1994. That entity was unable
to proceed with the project, and the development rights were recently returned to the
applicant. The applicant hopes to complete construction within the requested 5-year
period.
It should be noted that public testimony and the Commission expressed concerns
relative to granting further administrative extension of time for the complete
construction requirement. Therefore, the Commission included within Condition B a
provision that limits the Planning Director's ability to allow any discretionary extension
relative to the construction on the project site.
Since the rezoning was approved, there has been no change to the General Plan
affecting this area. Although the Zoning Code has been revised, all applicable
requirements such as setback and height will be complied with. All essential utilities
and services are available to the site. Thus, the granting of this time extension would
not be contrary to the original request. Furthermore, the request would not adversely
impact the commercial land use pattern in Pahoa, as directly across the subject property
on Kahakai Boulevard, a Change of Zone from A-la to CN-20 was approved under
Ordinance No. 98 128 effective November 18, 1998. On July 31, the County Council
approved a SLU Boundary Amendment from Agricultural to Urban (SLU 1067) and a
Change of Zone from A-la to MCX-20 (REZ 946) for TMK: 1-5-7: 80 located west of
the subject property. Finally, agencies reviewing the request had no comments or
objections.
Based on the above findings, the proposed amendments are not contrary to the original reasons
for approving the Change of Zone.
Honorable James Y. Arakaki, Chairman
and Members of the County Council
Page 3
For your favorable consideration, an amendment to Ordinance No. 91 116 is transmitted.
We are enclosing a copy of the staff background and photographs from the public for your
information.
Sincerely,
Richard B. Baker, Jr., Chairman
Planning Commission
LkanesWroUPC
Enclosures
cc: Mr. Sidney Fuke
Department of Public Works
Department of Water Supply
Department of Land & Natural Resources
Kazu Hayashida, Director/DOT-Highways, Honolulu
BKaneshiroOl .doc-8/9/00
COUNTY OF HAWAII PLANNING DEPARTMENT
BACKGROUND REPORT
KANESHIRO AND SONS ENTERPRISES, LTD.
CHANGE OF ZONE ORDINANCE NO.91 116 (REZ 698)
AMENDMENT TO CONDITIONS B AND C
KANESHIRO AND SONS ENTERPRISES, LTD has submitted a request to amend
Condition B (secure Final Plan Approval) and delete Condition C (commence construction) of
Ordinance No. 91 116, which reclassified approximately 4.901 acres of land from an Agricultural
(A-1 a) to a Neighborhood Commercial (CN-20) zoned district. The property is located at the
junction of the Pahoa Bypass Road and Keaau-Pahoa Road and bordered by Kahakai Boulevard,
Keonepoko Iki Homesteads, Pahoa, Puna, Hawaii, TMK: 1-5-7:20.
GENERAL INFORMATION
1. Land Ownership: Kaneshiro and Sons Enterprises, Ltd. is the fee owner of the subject
property.
CFIR NOLOGY
2. December 2, 1991: Effective date of Ordinance No. 91 116 which changed the district
classification of the subject property from A-la to CN-20. The applicant requested the
change of zone to establish a supermarket on the site. The property was also the subject
of a State Land Use Boundary Amendment from Agricultural to Urban. (See Exhibit A -
Ordinance No. 91 116)
3. November 25, 1992: The Planning Director grants a one-year administrative extension
of time to December 2, 1993 to comply with Condition B (secure Final Plan Approval).
4. November 26, 1993: The Planning Director grants Final Plan Approval No. 2902.
Pursuant to Condition C, construction of the proposed supermarket should have
commenced within one year from the date of Final Plan Approval. FPA No. 2902
expired on November 26, 1995 since plans were not utilized within two years from Final
Plan Approval.
5. August 30, 1996: Planning Director informs applicant that this department will initiate
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downzoning of the property due to non-compliance with the conditions of approval.
6. September 13,1996: Applicant requests that the downzoning not be initiated, as
potential lessees are being sought.
7. February 15, 2000: The County Council requests the Planning Director to downzone
the property to its original designation of A-1 a. (See Exhibit B -February 15, 2000
Letter)
8. March 20, 2000: The applicant requests that the property not be downzoned. (See
Exhibit C - March 20, 2000 letter and status report from applicant)
APPLICANT'S RED 1> E T
9. Request: The applicant is requesting an amendment to Condition B and C of Ordinance
No. 91 116 for an additional five (5) years to complete construction of the proposed
project. The applicant has stated that development plans were stalled due to the
economic downturn since the rezoning was approved. Furthermore, the applicant
relinquished its development rights of this property to another entity in 1994. That entity
was unable to proceed with the project, and the development rights were recently returned
to the applicant. The applicant hopes to complete construction within the requested 5-
year period. (See Exhibit D - June 12, 2000 Request to amend Ordinance No. 91116)
STATE AND COUNTY PLANS
10. SLU: Urban.
11. GP Consistency: Land Use and Economic Elements.
12. GP LUPAG Map: Urban Expansion. This designation allows for a mix of high density,
medium density, low density, industrial and/or open designations in areas where new
settlements may be desirable, but where the specific settlement pattern and mix of uses
have not yet been determined.
13. County Zoning: Neighborhood Commercial (CN-20).
14. SMA: The property is not situated within the Special Management Area.
DESCRIPTION OF SUBJECT PROPERTY AND SURROUNDING AREA
15. Property: The subject property is approximately 4.901 acres in size, roughly triangular
in shape and vacant.
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16. Surrounding Zoning/Land Uses: Surrounding lands are zoned A-la, CN-20 and MCX-
20 and include a mix of residential, commercial, vacant, and agricultural uses.
17. SLU Boundary Amendments and Rezonings in the Vicinity: TMK: 1-5-7: 21 directly
across from the subject property on Kahakai Boulevard, was granted a SLU Boundary
Amendment from Agricultural to Urban (SLU 1016) and a Change of Zone from A-1 a to
CN-20 (REZ 903) under Ordinance No. 98 128 effective November 18, 1998. On July
31, 2000, the County Council approved a SLU Boundary Amendment from Agricultural
to Urban (SLU 1067) and a Change of Zone from A-la to MCX-20 (REZ 946) for TMK:
1-5-7: 80 located west of the subject property.
18. U.S.D.A. Soil Type: Pahoehoe lava series (rLW).
19. Land Study Bureau Soil Rating: "E" or Very Poor.
20. ALISH: Unclassified.
21. FIRM: Zone "X", an area outside of the 500-year flood plain.
22. Flora/Fauna and Archaeological Resources: An archaeological inventory survey of
the project site was conducted by Paul H. Rosendahl, Ph.D., Inc. in 1991. According to
the report, no evidence of prehistoric or potentially early historic use or occupation was
observed. No major lava tube openings were observed on the parcel or adjacent lands.
Vegetation consists of ornamental landscape trees, shrubs and grasses. No endangered
species of flora were identified on the site.
23. Topography: The subject property is relatively level.
PUBLIC UTILITIES AND SERVICES
24. Access: Access to the site is proposed from Kahakai Boulevard, a County roadway with
an approximately 50-foot right-of-way. The property is located south of the Pahoa By-
Pass Road between the Keaau-Pahoa Road and the Kahakai Boulevard extension.
25. Water: Water is available to accommodate the proposed use.
26. Other Essential Utilities and Services: All other services are available to the site.
AGENCIES' COMMENTS
27. Department of Public Works (July 20, 2000 Memo):
"We have reviewed the subject application forwarded by your memo dated June 22, 2000
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and [have] no comments or objections on the request."
28. Police Department (June 29, 2000 Memo):
"Staff has reviewed the above-referenced application and has no objections to the
applicant's request for an additional five years to complete construction of "...any
development on the subject site." However, we would appreciate the opportunity to
comment on any proposed development on that site at the proper time."
29. Fire Department (July 12, 2000 Memo):
"We have no comments regarding the amendment to the above-referenced Change of
Zone Ordinance."
30. Department of Transportation Hilo (June 27, 2000 Memo):
"Not applicable"
AGENCIES - NO RESPONSE
31. Department of Water Supply, Real Property Tax Office, Department of Health,
Department of Transportation, Honolulu.
PUBLIC COMMENTS
32. The Department has not received any written comments or objections from the
public on the request.
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COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 498
ORDINANCE NO. 91 116
AN ORDINANCE AMENDING SECTION 25-107 (PAHOA ZONE MAP),
ARTICLE 3, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE,
BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL
(A-la) TO NEIGHBORHOOD COMMERCIAL (CN-20) AT KEONEPOKO, PUNA,
HAWAII, COVERED BY TAX MAP KEY 1-5-07:20.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Section 25-107, Article 3, Chapter 25 (Zoning
Code) of the Hawaii County Code, is amended to change the
district classification of property described hereinafter as
follows:
The district classification of the following area
situated at Keonepoko, Puna, Hawaii, shall be Neighborhood
Commercial (CN-20):
Beginning at a point at the southeast corner of this
parcel of land and on the northerly side of Kahakai
Boulevard, the coordinates of said point of beginning
referred to Government Survey Triangulation Station "olaa"
being 34,554.85 feet South and 35,137.78 feet East and
running by azimuths measured clockwise from true South:
1. 700 34' 732.05 feet along the northerly
side of Kahakai Boulevard
to a point at the easterly
side of the Keaau-Pahoa
Road (F.A.S.P. No. S-0130
(8)); thence along the
easterly side of the
Keaau-Pahoa Road (F.A.S.P.
No. S-0130 (8)) for the
neat three (3) courses
along a curve to the left
having a radius of
2,904.79 feet, the chord
EXHIBIT azimuths and distances
A being:
A
2. 152° 15' 29.2" 216.99 feet;
3. 149° 43' 03.4" 40.56 feet;
4. 1490 O1' 01.7" 30.47 feet;
5. 148° 43' 49.91 feet along the easterly
side of the Keaau-Pahoa
Road (F.A.S.P. No. S-0130
(8));
6. 2380 43' 10.00 feet along a jog in the
Keaau-Pahoa Road Project
No. RS-0130 (18); thence
along the easterly side of
Keaau-Pahoa Road Project
No. RS-0130 (18) along a
curve to the right having
a radius of 180.00 feet,
the chord azimuth and
distance being:
7. 1770 40' 35" 174.31 feet; thence along the
Keaau-Pahoa Road Project
No. RS-0130 (18) along a
curve to the right having
a radius of 39.87 feet,
the chord azimuth and
distance being:
8. 2490 48' 32" 54.56 feet; thence along the
southerly side of the
Keaau-Pahoa Road Project
No. RS-0130 (18) along a
curve to the left having a
radius of 1,370.00 feet,
the chord azimuth and
distance being:
9. 2890 59' 27" 142.96 feet;
10. 2870 00' 353.36 feet along the southerly
side of the Keaau-Pahoa
Road Project No. RS-0130
(18);
-2-
11. 1970 00' 10.00 feet along a jog in the
Keaau-Pahoa Road Project
No. RS-0130 (18);
12. 2870 00' 298.51 feet along the southerly
side of the Keaau-Pahoa
Road Project No. RS-0130
(18); thence along the
southerly side of the
Keaau-Pahoa Road Project
No. RS-0130 (18) along a
curve to the right having
a radius of 1,940.00 feet,
the chord azimuth and
distance being:
13. 2870 31' 43.5" 35.81 feet;
14. 3280 50' 11.43 feet along a jog in the
Keaau-Pahoa Road Project
No. RS-0130 (18) to the
point of beginning and
containing an area of
4.901 Acres.
All as shown on the map attached hereto, marked
Exhibit "A" and by reference made a part hereof.
SECTION 2. This change in district classification is
conditioned upon the following: (A) the applicant, its
successors or assigns shall comply with all stated conditions
of approval; (B) final Plan Approval for the development shall
be secured from the Planning.Department within one year from
the effective date of the change of zone. To assure adequate
time for plan approval review and in accordance with Chapter
25-244 (Zoning Code), plans shall be submitted a minimum of
forty-five days prior to the date by which plan approval must
be secured; (C) construction shall commence within one year
-3-
from the date of receipt of Final Plan Approval and shall be
completed within two years thereafter; (D) curbs, gutters,
sidewalks and pavement improvements shall be provided within
the Kahakai Boulevard extension right-of-way fronting the
property meeting with the approval of the Department of Public
Works prior to receipt of a certificate of occupancy for any
portion of the development. Further, a 25-foot radius shall be
provided at the Kahakai Boulevard-Pahoa Road intersection. In
order to construct the commercial standard road, utilities
shall be relocated, if necessary; (E) access to the property
shall meet with the approval of the Department of Public
Works. Direct access to the property shall be limited only to
the Kahakai Boulevard extension. Improvements at the
intersection of Kahakai Boulevard extension and Pahoa Road,
which shall include the provision of left- and right-turn lanes
on Kahakai Boulevard extension, and a left-turn lane on Pahoa
Road, shall be installed as required by the Department of
Public Works prior to receipt of a certificate of occupancy for
any portion of the development; '(F) improvements, if any, to
the Pahoa By-Pass Road, which may include extending the
left-turn storage lane leading to the connector road, shall be
installed as required by the State Department of
Transportation-Highways Division, prior to receipt of a
certificate of occupancy for any portion of the development;
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(G) a drainage system shall be installed meeting with the
approval of the Department of Public Works; (H) should any
unidentified sites or remains such as artifacts, shell, bone,
or charcoal deposits, human burials, rock or coral alignments,
pavings or walks be encountered, work in the immediate area
shall cease and the Planning Department shall be immediately
notified. Subsequent work shall proceed upon an archaeological
clearance from the Planning Department when it finds that
sufficient mitigative measures have been taken; (I) all other
laws, rules, regulations and requirements of State and County
agencies shall be complied with; (J) should the Council adopt a
Unified Impact Fees ordinance setting forth criteria for the
imposition of exactions or the assessment of impact fees,
conditions included herein may, at the developer's election, be
satisfied by performance in accordance with the requirements of
the Unified Impact Fees Ordinance; (K) an annual progress
report shall be submitted to the Planning Director prior to the
anniversary date of the effective date of this change of zone.
The report shall include, but not be limited to, the status of
the development and to what extent the conditions of approval
are being complied with. This condition shall remain in effect
until all of the conditions of approval have been complied and
the Planning Director acknowledges that further reports are not
required; and, (L) an extension of time for the performance of
conditions within the ordinance may be granted by the Planning
-5-
Director upon the following circumstances: 1) the
non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant,
successors or assigns, and that are not the result of their
fault or negligence; 2) granting of the time extension would
not be contrary to the general plan or zoning code; 3) granting
of the time extension would not be contrary to the original
reasons for the granting of the change of zone; 4) the time
extension granted shall be for a period not to exceed the
period originally granted for performance (i.e., a condition to
be performed within one year may be extended for up to one
additional year); and 5) if the applicant should require an
additional extension of time, the Planning Director shall
submit the applicant's request to the County Council for
appropriate action. Further, should any of the conditions not
be met or substantially complied with in a timely fashion, the
Director shall initiate rezoning of the area to its original or
more appropriate designation.
SECTION 3. In the event that any portion of the ordinance
is declared invalid, such invalidity shall not affect the other
-6-
SECTION 4. This ordinance shall take effect upon its
approval.
INTRODUCED BY:
COU1 CIL MEMB R, CO TY OF HAWAII
Hilo, Hawaii
Date of Introduction: November 6, 1991
Date of 1st Reading: November 6, 1991
Date of 2nd Reading: November 20, 1991
Effective Date: December 2, 1991
APPROVED AS TO FORM AND LEGALITY:
e a
OEFUTyCORPO ON COUNSEL
DATED: $C~ 1991
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AMENDMENT TO THE ZONING CODE
AMENDING SECTION 'Z6-107 (PAHOA ZONE MAI°)
ARTICLE a, CHAI°TER 25 (=ONINB CODC) OF THE
HAWAII COLJN77' COVM B7' CHANOINM THE
DISTIRICT CLASS?FiCATION FROM AGRICULTURAL
(A-la) To NEIGHBORHOOD CCMME12C1AL (CN-~O)
AT KMONEPOKO, 1°UNA, HAYVAII.
PRt PAfiCD 8Y = PLANNING ®~pA9iT1+'1 C-NT
COUNT7' OF HAWAII
'MM : I-S-07 ='a0 AUG. "22, I9~I
CURTIS TYLER, Iii ` Tel: 808 961-8273
CounnhnemEer Fax: (808) 969-3291
~rrE of.°w .
COUNTY COUNCIL
County of Hawaii
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 96720
February 15, 2000
TO: Virginia Goldstein
Planning Director r
FR: J. Curtis Tyler III
Planning Committee Vice Chair
RE: Ordinance No. 91-116
Kaneshiro and Sons Enterprises
As per the testimony by Del Pranke at today's Planning Committee meeting, could you
please initiate the rezoning of TMK: 1-5-07:20 to its original designation of A-Ia.
Ordinance No. 91-116 was adopted by the County Council on December 2, 1991 and
time extensions were granted, but the construction of the supermarket never materialized.
Therefore, in accordance with the last condition of Ordinance No. 91-116, "should any of
the conditions not be met or substantially complied with in a timely fashion, the Director
shall initiate rezoning of the area to its original or more appropriate designation."
Please find enclosed a transcribed "draft" of Mr. Pranke's testimony for your
information.
Please feel free to call Barbara Hashimoto at extension 8493 if you have any questions.
Thank you.
EXHIBIT
P~
77-63+9 J`dalani St., S,JAi. 1-A Kaiiua-krone, Hawaii 96940 Kona Telephone: (808) 326-5684 Fax: (808) 326-5697
COMMITTEE ON PLANNING DRAFT
25 rx Session
Hilo, Hawaii
Tuesday, February 15, 2000
The meeting of the Committee on Planning was called to order at 1:42 p.m., in the
Councilroom, Hawaii County Building, by Mr. Curtis Tyler, Acting Chair.
ATTENDANCE: Present:
Mr. Curtis Tyler, Acting Chair
Mr. Aaron Chung, Member
Mr. Leningrad Elarionoff, Member
Ms. Julie Jacobson, Member
Ms. Nancy Pisicchio, Member
Mr. Al Smith, Member (came in later)
Mr. Dominic Yagong, Member
Mr. James Y. Arakaki, Ex-Officio Member
Absent & Excused:
Ms. Bobby Jean Leithead-Todd, Chair
Also Present:
Ms. Barbara Hashimoto, Leg. And. Asst. II, Ofc. of the Leg. Aud.
Ms. Glynis Yamada, Council Services Assistant 11
PC-25 t, February 15, 2000
ACTING CHR. TYLER: At this time, seeing no new business, we have
statements from the public. And I have one statement from the public on
items not on the agenda from Mr. Del Pranke. Good afternoon,
Mr. Pranke.
DEL PRANKE: Good afternoon, sir.
ACTING CHR. TYLER: I think you know we're-
MR. PRANKE: Each of you got a copy of this (SEE ATT. "A"), I
assume, from the Planning Department and Ordinance 91-116. Not a
month goes by that somebody in Puna doesn't ask me whatever happened
to our shopping center? Hundreds and hundreds of people-and the forms
are still on file down in the Planning Department, I saw the file yesterday,
have filled out a-petitions to have this re-this land area that I've marked
on the map, on the back page-rezoned from agricultural to commercial
with the promise that a shopping center would be built there by Kaneshiro
and Sons, Limited. They used to own Food Fair.
When they sold to Food-sold Food Fair to Sure Save, Sure Save did not
buy that property from Kaneshiro and Sons. It's still owned by Kaneshiro
and Sons. Food Fair bought only the Right of First Refusal for the first
10,000 square feet just about enough to build a Wiki Wiki Mart and
keep a shopping center from going in.
Sure Save is in bankruptcy now. No judge in their right mind would allow
them to build a supermarket there now. Kaneshiro and Sons entered into a
10 or 20-year none competition agreement when they sold Food Fair, so
they can't build a shopping center and-a supermarket there and operate it.
They could build it and lease it to somebody but they haven't done
anything.
And as you can see from the documents I've given you, those, that
shopping center was supposed to have been started before November 26,
1994. That's in the letter from Virginia Goldstein back to them. And, of
course, Ordinance 91-116 says at the end, "should any of the conditions
not be met or substantially complied with in a timely fashion, the Director
shall initiate rezoning of the area to its original or more appropriate
designation".
This came up, once again, recently, when Pahoa Auto Parts moved down
to a lot right across from them and they were told by the County, oh, we
ran across this by the Planning Department and that should have been
Page 2
PC-25' February 15, 2000
down-zoned. So they know down there that it should have been zoned
back to agricultural.
We, if it pragmatically, the folks in Puna would love to have a shopping
center but, pragmatically, we're not gonna get a shopping center. So we
don't think somebody should have a $2 million windfall bonus because the
law wasn't followed. The law clearly says that Virginia Goldstein is
supposed to, or the Planning Director, is supposed to initiate to you folks a
change back to the original agricultural. That's what wed like to see. If
somebody comes up with a plan to turn that into a shopping center again,
I'm sure we can go around and get the petitions again.
But at this point, that's not what's gonna happen and we're afraid we're
gonna end up with a McDonalds or an oil change place or something out
there, instead of what we really need.
So, we're bringing this to you. I brought it to the attention of Planning
Department before, including at a meeting when-or the Planning
Commission, when Ms. Goldstein was there, and this was several years
ago. This still has not been resolved. So, I'm hoping that by bringing it to
your attention that somebody will be able to-I know Mr. Smith has
shown some interest in it and I'm sure that if he gets some of them down
there, they'll send something up. But it should be done. It should be taken
care of. Thank you.
ACTING CHR. TYLER: Are there any questions of Mr. Pranke?
Mr. Pranke, I just, I have a question. When you went down to the
Planning Department, have you been down there recently since your visit
to the Planning Commission?
MR. PRANKE: Oh, yes, I was there yesterday.
ACTING CHR. TYLER: And what did they say about this?
MR. PRANKE: They said that on the computer down there, this land is
zoned, is now zoned commercial as of 1990. The law wasn't passed until
'91 but I was told that that could be, that was when the approval was first
requested in 1990. They didn't know exactly.
ACTING CHR. TYLER: I see, okay. Well, yeah?
MR. PRANKE: It, some people-everybody every time I put this out, oh,
yeah, there's some land scam there. Probably, what's happened is there's
some lapse in the County procedures that doesn't allow for you folks to
Page 3
PC-25 + ' iV February 15, 2000
`j 1y Il s
know when this stuff has happened and you passed a law-or the Council
passes the law, obviously, you folks weren't the ones. And then it doesn't
get followed unless somebody follows it up. And, so there may be a lapse
in the procedures.
ACTING CHR. TYLER: Well, based on the information that you
provided to us, it looks to me like the Effective Date of this rezoning was
December 2"d, 1991.
MR. PRANKE: It should have been, but the computer says 1990.
ACTING CHR. TYLER: Well, not should have been, it was-'cause
that's, this is the copy of the ordinance but-
MR. PRANKE: Right.
ACTING CHR. TYLER: Maybe the computer is wrong. We'll have, I'd
like to have the staff look into that. Also, with respect to the letter from
the Planning Director to Mr. Nagata, their architect, she-dated December
28`n 1994 just for those who are watching. It indicates that, in addition
to the construction "should have commenced on or before November 26.
1994" that the Final Plan Approval No. 2902 expired on November the
26"i, 1995, and that pursuant to Section 25-10, that-of the County Code,
that the Plan Approval shall become voided and, thereafter, may not be
used.
So, unless there's an objection from any of the Committee members, I'll
have the staff look into this and get a report back to us, 'cause it appears to
me that it should have, the process should have begun to down-zone this.
Mr. Smith, you have this, it's in your district-do you have any-
MR. SMITH: No, I've got no problems.
MR. PRANKE: He and I talked about this at some length before and he's,
I think he's pretty up on it.
ACTING CHR. TYLER: Okay.
MR. SMITH: Yeah.
MR. PRANKE: Thank you, Mr. Smith. Thank you, Mr. Tyler. Thank
you all.
Page 4
PC-25 February 15, 2000
ACTING CHR. TYLER: Thank you, Mr. Pranke, for bringing this matter
to our attention.
MR. PRANKE: The people of Puna thank you.
ACTING CHR. TYLER: Ladies and gentlemen, is there any-are there
any other statements from the public on items not on the agenda? Hearing
none, the Chair would entertain a motion to adjourn.
ADJOURNMENT: There being no further business, at 1:57 p.m. Mr. Smith moved that
the meeting be adjourned. Seconded by Mr. Yagong and followed by the
following vote:
In Favor: Committee Members Chung, Elarionoff, Jacobson,
Pisicchio, Smith, Yagong, and Acting Chair Tyler
Opposed: None
Absent & Excused: Committee Chair Leithead-Todd
Council Services Asst. II
Approved:
Ms. Bobby Jean Leithead-Todd
CHAIR
Page 5
KANESHIRO & SONS ENTERPRISE, INC.
2159 Kinoole Street, #4 Phone (808) 959-0524
Hilo, Hawaii 96720 Fax (808) 959-0530
March 20, 2000
Ms. Virginia Goldstein: '
Planning Director, County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
RE: Tax Map Key 3rd 1-5-7:20
Dear Ms. Goldstein:
Thank you very much for your interest in Kaneshiro and Sons Enterprise's Pahoa
property. We have made much progress in the last 12 months that I feel will allow our company
to begin to recover from recent setbacks.
1. Why did we decide to expand to Pahoa? (Brief Background) Kaneshiro and
Sons Enterprise, Inc., is a sister company of Pacific Hawaiian, Ltd., which operated the Food Fair
chain (Kilauea Street, Kinoole Street, Naalehu). Food Fair has always been committed to the
working families of Hilo. We have consistently developed the product line and marketing strategy
to provide working and lower income families necessities and a few "extras" at good prices. For
many years we were associated with the Wigwam discount operation. We were also the largest
retail outlet for discount children's clothing in Hilo and for Dickey's work apparel (very popular
with blue collar workers). Our pharmacy provided senior citizens competitively priced drugs
without the long wait they experienced at other larger pharmacies.
Other retailers in the late 1980's and early 1990's attempted to go "upscale" to increase
profit margins. Kaneshiro and Sons decided to hold firm to the philosophy started by my
grandfather and grandmother (see below), to serve working people. We therefore purchased the
Pahoa property with the idea of bringing our marketing concept to the families of this area. Many
families of Pahoa and the surrounding area have to be very careful to meet their day-to-day needs.
For that reason there were not and are not too many businesses who would readily invest in this
area. We believe that the people of Pahoa deserve better access to retail products at reasonable
costs and that once retailers overcome their initial reluctance, they will find it financially
rewarding to serve this community.
If anything, the need for retailers with this philosophy in Pahoa has increased since the
time of our rezoning in 1991.
EXHIBIT
2. Why have we not been able to proceed with our project? The present zoning
was approved in late 1991 just as the economic downturn caused by the Gulf War began being
felt. No one could have anticipated then that Hawaii would be the hardest hit state and that
although the rest of the nation would eventually recover and prosper, our state and island would
struggle to this very day.
Food Fair and K&S also fell on difficult times after 1991 and in 1994 we made a very
painful decision to cease our involvement in retail operations. In order to honor an obligation to
our employees, we sold our retail operation to the Sure Save Supermarket chain to preserve the
jobs of many of our loyal and dedicated workers. Leaving the business started by my
grandparents was not easy.
Despite our setback, we never gave up our dream to serve the working families of Pahoa.
Part of the purchase agreement with Sure Save gave the chain the first right to lease a large retail
space once we developed the property. We felt that this was a very important commitment in the
eyes of potential other tenants. However, the poor economy made it difficult to develop interest
in investing in a Big Island project. We did not and could not have foreseen that the economic
recovery, which we felt was imminent in 1994, would not materialize and that Sure Save would
become another victim.
Within a year after we sold Food Fair's assets to Sure Save, they terminated the lease on
the Kilauea property. We have tried aggressively but unsuccessfully to find another tenant. The
loss of this cash flow severely affected our ability to invest in the Pahoa property.
About two years after the sale of assets, Sure Save began experiencing severe financial
difficulties and we entered into long and protracted renegotiations relating to the Kinoole
property. We also entered similarly difficult renegotiations with a landowner adjacent to the
parcel. Both of these matters were not fully resolved until 1999. Due to the uncertainty relating
to negotiations, we were not able to begin preliminary work on the Pahoa property. Our
uncertainty relating to the Kinoole parcel was unfortunately no secret to potential tenants of
Pahoa. This had a chilling effect on businesses we called on.
As you know, last year Sure Save filed for Chapter 11 protection creating even further
uncertainty and delay relating to Pahoa. We lost a great deal of back rent due to the Chapter 11
filing. However, our family decided that a quick resolution of all outstanding issues with Sure
Save would in the long run allow us to begin the recovery process that hopefully will lead to the
completion of the Pahoa project.
3. What progress have we made in the last year that will help us recover and
refocus attention on the Pahoa project? The last year has been very painful for us but we have
resolved many issues which affected the attractiveness of the Pahoa project. First, in partial
exchange for a waiver of all claims against Sure Save, the bankruptcy court canceled a non
competition agreement, which kept Pacific-Hawaiian, Ltd., out of the retail business. We now
plan to revitalize the Kinoole street complex and reenter the retail field. We believe that within
12-24 months, this property will again become productive and will begin generating the capital
needed to invest into the Pahoa project. Second, the bankruptcy court extinguished the first right
of refusal agreement with Sure Save, which they could have sold as an asset. Since it may take
years for the Chapter 11 case to be finally concluded, the right of refusal could have been a source
of continued uncertainty and reluctance for potential Pahoa tenants. Given the amount of back
rent we were owed, this was an expensive exchange but one that we believe will make the Pahoa
property less uncertain to investors and tenants. Third, we have received serious inquiries about
the Kilauea property. If this property becomes economically productive, it could also be the
source of much needed capital. Fourth; we have completed an agreement with a property owner
adjacent to the Kinoole street property. We can now project our long-term financial obligation
relating to this matter. Fifth, the Pahoa area remains an untapped market.
4. Is commercial zoning still appropriate? I think this is the real question, which
goes, beyond our past setbacks. We are still committed to providing Pahoa's families a
convenient, safe, well-planned and well-built place to purchase basic needs. The community
needs have not diminished since 1991, in fact, it has probably grown. The appropriateness of
commercial activity at the location has not changed since 1991. It remains the most accessible
and visible site for retail customers of Pahoa. There is no need for the land to return to
agricultural uses. It was not used for agricultural purposes before 1991. No one has expressed
an interest in agricultural uses on this or adjacent property. Down zoning would not serve the
needs of the community. We believe that if a landowner is willing and committed to obtaining the
capital to develop the site, commercial zoning is still appropriate.
5. Do we plan to honor our commitment? Kaneshiro and Sons Enterprise, Inc.,
and Pacific Hawaiian, Ltd., are family owned and operated companies in existence for more than
50 years. My grandparents Naozo and Shira Kaneshiro, immigrants from Okinawa, operated a
store (the predecessor to the food Fair chain) in the plantation town of Kukuihaele for many years
before the companies were incorporated. They endured many hardships and helped many other
Big island families through difficult times by extending credit and forgiving repayment
obligations. My father Eijiro Kaneshiro and his brothers entered the family business and
continued building the companies. They continued Grandfather's commitment to the community
by supporting many civic, athletic and charitable organizations. They lost a great deal in the 1960
tidal wave but decided not to abandon downtown Hilo and took part in the difficult rebuilding
process. My grandfather supported the rebuilding of downtown and felt an obligation to the
community. He passed on his beliefs to Kaneshiro and Sons Enterprise, Inc., and the family
involved in the business is committed to carrying on his legacy.
Conclusion
Thank you again for your interest in our property. We humbly ask that we be given the
opportunity to realize our dream of providing the Pahoa community with access to reasonably
priced necessities. Please contact me if you would like further information.
Sincerely,
Glenn Kaneshiro,
Vice President and General Manager
cc: Bobby Jean Leithead-Todd
SidneyFuke, P.-ining Consultant
100 Pauahi Street, Suite 212 • Hilo, Hawaii 96720 • Planning • Variance • Zoning
Telephone: (808) 969-1522 • Fax: (808) 969-7996 • Subdivision • Land Use Pennits
Environmental Reports
June 12, 2000
Ms. Virginia Goldstein, Director
Planning Department
COUNTY OF HAWAII
25 Aupuni Street
Hilo, HI 96720
Dear Ms. Goldstein:
Subject: Time Extension Request - Ord. No. 91-116 (REZ 698)
Kaneshiro & Sons Enterprises, Ltd.
Keonopoko Iki Homesteads, Pahoa, Puna, H1, TMK: 1-5-07: 20
On behalf of Kaneshiro & Sons Enterprises, Ltd., this letter is to request a time
extension to conditions B and C of the subject ordinance. Specifically, the request is to give
the applicant an additional five (5) years from the date of this amendment to complete
construction of the subject project.
BACKGROUND
Prior to 1994, the applicant, through another business entity called Pacific Hawaiian,
dba Food Fair, operated two supermarkets in Hilo. The applicant then planned to open
another supermarket complex on the subject parcel and applied for the required zone change
in 1990.
The County Council subsequently approved Ordinance No. 91-116, which became
effective on December 2, 1991, and resulted in the rezoning of the subject property from A-
la to CN-20. The rezoning was approved subject to a number of performance conditions.
Condition B required that Final Plan Approval be secured within a year of the zone
change (December 2,1992). An extension to December 2, 1993 to comply with this
requirement was granted by the Planning Director. Subsequently, Final Plan Approval was
issued on November 26, 1993.
Condition C required that construction commence within a year of receipt of Final
Plan Approval or before November 26, 1994. A request to extend this date was then filed by
the applicant's architect on October 31, 1994. However, on December 28, 1994, the
Department concluded that the extension can only be considered by the County Council.
Although it could be argued that the Director had the authority to issue an extension at that
time (as the request applied to another condition), it is really moot at this point.
EXHIBIT
ll
Ms. Virginia Goldstein, Director
June 12, 2000
Page 2
In the meantime, the applicant sold the assets and liabilities of its company called
Pacific Hawaiian, Ltd. dba Food Fair), which included the associated real estate assets and
land use entitlements, in 1994 to Sure Save Supermarket, Ltd. The new owner also had the
first right of refusal to construct and operate a store on the subject property. As a result, the
applicant did not really pursue the needed time extension.
When Sure Save Supermarket, Ltd. filed for a "reorganization" petition in 1998, the
applicant eventually terminated Sure Save's first right of refusal to develop said property.
The applicant is thus in a better position to and wants to do something with the property.
NATURE OF REQUEST
The applicant is seeking five (5) years from the effective date of the proposed
amendment to complete construction of this facility. This would be consistent with
construction performance conditions currently required by the County.
The specific requests to accommodate this change would thus be:
a. The deletion of conditions B and C in their entirety;
b. The inclusion of a new condition B to read as follows (or any other language
as may be deemed appropriate by your office to capture the essence of the
request):
"Construction of any development on the subject site shall be completed
within five (5) years from the effective date of this amendment. Prior to
commencing construction, Final Plan Approval shall be secured from the
Planning Director in accordance with Chapter 25-2-70 of the Zoning Code.
Plans shall identify the proposed structures, vehicular traffic, paved driveway
access and parking stalls associated with the proposed uses. Landscaping
shall also be indicated on the plans and be provided for the purpose of
mitigating any adverse noise or visual impacts to adjacent properties."; and
c. The re-lettering of the remaining conditions.
NATURE AND REASONS FOR REQUEST
In considering time extensions, there are certain circumstances that must be
demonstrated. These circumstances and justifications follow:
Ms. Virginia Goldstein, Director
June 12, 2000
Page 3
1. Unforeseen Conditions
After the rezoning was approved in December 1991, the world witnessed an
economic meltdown, particularly in Asia, that affected Hawaii. Many projects
were put on hold or abandoned. This malaise also made it difficult to secure
the required financing for projects of this nature. This is understandably a
condition that was not anticipated and certainly beyond the control of the
applicant.
At the same time, the applicant relinquished its development rights of this
property to another entity in 1994. That entity in the meantime was unable to
regrettably deliver a needed product, and the development rights were recently
returned to the applicant.
With an improved economic climate and unencumbered interest to the
property, the applicant has a renewed, optimistic outlook in the development
of this project. The applicant hopes to complete construction of a project on
this site within the requested 5-year period.
2. General Plan and Zoning Code
Since the rezoning was granted, there has been no change to the General Plan
affecting this area. Further, although the Zoning Code has been revised, all
applicable requirements such as setback, height, and the like will be complied
with. Thus, it is maintained that granting this time extension would not be
contrary to the regulatory documents used to justify the original request.
3. Original Reasons for Granting Rezoning
The reasons for approving this project have not changed. Specifically and in
summary: a) the request is consistent with the General Plan LUPAG map and
policies; b) all of the required infrastructure (particularly water) is still
available; c) there is a need or demand for this type of service in lower Puna;
d) it would not adversely impact the commercial land use pattern of Pahoa, a
town that continues to be the center of major employment activity in this
area.
Based on the foregoing, the applicant respectfully requests your favorable processing
of this matter. Pursuant to the Zoning Code, please find enclosed the following:
Ms. Virginia Goldstein, Director
June 12, 2000
Page 4
a. Twenty (20) sets of this request;
b. A list of surrounding property owners within three hundred (300) feet of the
subject property; and
c. A filing fee of $250.
Should you have any questions on this matter, please feel free to contact me. Thank
you very much.
Sinc@rely,
SIDNEY M. FUKE
Planning Consultant
Enclosure
cc Mr. Glenn Kaneshiro w/ enclosure
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