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Home My WebLink AboutREP PC 036 10/17/2005 2004-2006 REPORT OF THE COMMITTEE ON PLANNING DATE: October 17, 2005 Re: Comm. No. 463/Bill No. 156 PLACE: Council Chambers TIME: 10:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Planning, to which was referred Bill No. 156, reports as follows: Bill No. 156, transmitted by Councilmember Pete Hoffmann via Communication No. 463, dated September 19, 2005, amends Chapter I 1 (Housing), Article 1, Section 11-4(d), Hawai`i County Code, to include affordable housing requirements for industrial park subdivisions. Bill No. 156 requires industrial park developments consisting of multiple individual enterprises, which cumulatively generate over 100 employees on a full-time equivalent basis, to earn one affordable housing credit for every four full-time equivalent jobs created. The bill eliminates the existing reference to "individual" industrial enterprises and inserts new language to clarify that industrial developments which consist of multiple individual enterprises are governed by the same affordable housing requirements as individual industrial enterprises. Communication 463 further clarifies that this amendment applies to industrial park subdivisions to make sure that such developments are governed by the County's affordable housing requirements. One individual testified in person at the October 17`h Planning Committee meeting, Mr. Mark McNett. Mr. McNett stated that, "All my life when I got a job, I moved to live near that job." Mr. McNett also testified about his own efforts to construct an affordable dwelling from recycled materials. Mary Ann K. Todd-Waller submitted written testimony opposing Bill No. 156. Mr. Robert Ward submitted written testimony supporting Bill No. 156. Mr. Ward suggested that a Comprehensive Impact Fee (CIF) ordinance would provide a mechanism for collecting "in lieu of construction" fees for all new construction in the County, and for applying these fees to a County affordable housing plan. Councilmember Hoffmann provided background on the origin of this bill. He explained that the need to expand the definition of large industrial enterprises to include not only "individual" industrial enterprises, but also industrial complexes consisting of multiple individual enterprises, became clear during the discussion surrounding the proposed expansion of Kaloko Industrial Park in September 2005. Under current Chapter 1 l requirements, no affordable housing requirement was triggered by the expansion of Kaloko Industrial Park, since no one individual business in the Park was anticipated to employ over 100 full-time workers. The amended language in Bill No. 156 would impose affordable housing requirements on developers of industrial park subdivisions, in which the cumulative number of jobs created by multiple individual businesses exceeds 100. PC REPORT NO. 36 Communication 463 Bill 156 Page 2 Councilmember Holschuh sought clarification on current Chapter 11 requirements from Planning Director Chris Yuen. Mr. Yuen explained that the recently adopted revisions to Chapter 11 focused primarily on closing the loophole of accepting "in lieu oF' fees rather than actual affordable housing units for residential re-zonings. No changes were made to affordable housing requirements for resort and industrial developments when Chapter I 1 was amended earlier this year. Mr. Yuen explained that Bill No. 156 raises some issues that still need to be resolved, regarding who should meet the affordable housing requirement and who will bear the cost--the initial developer of the industrial subdivision or the end user. Also, it is difficult to determine the exact number of jobs that will be created upon final build-out of an industrial park. Finally, residential units to satisfy affordable housing requirements cannot be developed on industrially- zonedlands. Such units may need to be located off-site, and the Council may need to accept "in lieu of fees to meet the housing requirements for industrial park developments. Mr. Yuen summarized by stating that this bill represents a basic policy decision for the Council, "Do you want to impose affordable housing conditions on industrial park subdivisions?" Councilmember Jacobson expressed support for Bill No. 156 as an "elegant" solution to an issue that the County has not dealt with previously. "It is time to do this," he stated. Mr. Jacobson stressed that the County needs to assure that affordable housing is provided for workers in proximity to their jobs. Councilmember Isbell also voiced support for this bill. Ms. Isbell stated that the bill does not require the developer to build the homes; anon-profit corporation can build the homes instead. Ms. Isbell explained that there is a huge problem in Kona finding workers to fill jobs at Kaloko Industrial Park. The jobs don't pay well, and workers have to drive long distances to work there. She said that on-site housing is a "natural" for large industrial parks. Councilmember Ikeda was concerned about the impact of this bill on small business owners. He expressed concern about increased costs for the end users of industrial subdivisions, the small business owners. Councilmember Higa stated that he wanted to "level the playing field." In other words, eliminate the existing exception for home improvement centers in Section 11-4(d), and include an affordable housing requirement for large commercial developments, as well as for large industrial developments. Councilmember Hoffmann clarified that he did not add the exception for home improvement centers; this exception was already in the law. Mr. Hoffrnann reiterated the County's responsibility to make this policy decision. "When a development creates 2,800 or more jobs, we need to plan for housing for the future workers. The time to do this is now." Mr. Hoffrnann clarified that the requirement, as stated in Bill No. 156, would be assessed on the initial developer. He explained that there are a number of ways for the developer to satisfy this requirement under the existing code. PC REPORT NO. 36 Communication 463 Bill l56 Page 3 Councilmember Isbell stated that this bill applies to large industrial developers, not mom and pop business owners. "This is our way of saying to a large industrial developer, we need your help," she said. Councilmember Higa expressed concern about the long-range implications of this bill. He was concerned that the costs of building affordable housing would prove to be a disincentive for potential developers, especially on the Hilo side of the Island. After this discussion, a motion to approve this measure received 4 aye votes and 3 no votes. According to the Council Rules of Procedure, Rule 12 (1 I a vote of a majority of the entire membership of the Council or Committees shall be necessary to take any action. Therefore, your Committee forwards Bill No. 156 to the full Council with a negative recommendation. lc AVF.S rvors n&e ex Respectfully submitted, ARAKAKI X HIGA X COMMITTEE ON PLANNING HOFFMANN J{ HOLSCHUH IKEDA X ~ ISBELL R K. Angel Pila , Co-Chair JACOBSON PILAGO JZ SAFARIK J~ ' Pete Hoffm nn, Co-C} it PC REPORT NO. 36 ADOPTED: OFFICE INFORMATION ONLY Meeting: March 9, 2007 -Council Meeting (7~' Session) Action: March 9, 2007 -Passed Bill 156, Draft 2, on 151 Reading and filed PC-36. PC Report 36 transmitted Bill 156 with a "negative recommendation" due to a vote of 4-ayes, 3-noes, and 2-absent and excused. December 7, 2005 -Postponed November 9, 2005 -Postponed Re: BILL 156/C-463/PC-36