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HomeMy WebLinkAboutREP PC 166 11/17/1998 1996-1998 REPORT OF THE COMMITTEE ON PLANNING DATE: November 17, 1998 Re: C-1OSUBiII No. 332 PLACE: Councilroom TIME: 3:00 p.m. Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Planning, to which was referred Bill No. 332, transmitted by Mayor Stephen K. Yamashiro per Communication No. l OS 1, dated October 26, 1998, regarding the change of zone request by Kaupulehu Developments, at Kaupulehu, North Kona, Hawaii, TMK: 7-2-03: Portion of I, reports as follows: Bill No. 332 amends Section 25-8-3 (North and South Kona Districts Zone Map), Article 8, Chapter 25 (Zoning Code) of the Hawaii County Code, by changing the district classification for approximately I ,078.634 acres of land from an Open zoned district to a Project District. Bill No. 332 was originally placed on the November 5, 1998 Planning Committee agenda, at which time Bill No. 332, Draft 2, was also circulated. Bill No. 332 and Bill No. 332, Draft 2, were deferred until today so a site visit and a public hearing could be held on November 13, 1998. Five Council Members, two staff members, three Council-elect Members, and representatives of Belt Collins, the Hualalai Resorts, OHA and the Kaupulehu project trekked through the a a fields at 1:00 p.m. to view the project site. The hour-long walk into the area provided the hikers with an awe-inspiring breathtakingly beautiful landscapeiseascape in its pristine natural form. As Lee Sichter of Belt Collins explained the projected plans, the hikers could visualize the development of the area. The site visit enabled the trekkers to see the shoreline, the impact of the shoreline nn the project site, the elevation ranges of the ancient a'a flows, the vegetation along the shoreline, the scenic landscape of the backdrop mountain ranges in relation to the project site, etc. The public hearing was held at ti:00 p.m. on November 13, 1998, at the King Kamehameha Kona Beach Hotel with six Committee members in attendance. There were only ten speakers, although there was standing room only. One speaker opposed the development, three speakers recommended that the bill be deferred until the SMA decision is rendered by the Court system, and six spoke in favor of the bill. Those in favor of the development represented the ILWU, the Hawaii Carpenter's Union, the Operating Engineers Local Union, and themselves. Also a handful of written testimony was received by Your Committee. Lee Sichter of Belt Collins briefly summarized the project and presented some visual aids. Mike Matsukawa represented himself by testifying that he represented the coalition against the development to the Land Use Commission. He explained that the boundary amendment was tiled because it opposed what the LUC stood for. He also noted that the Court is ready to make its decision whenever they feel it is ready to rule. Mr. Alex Kinzler, the applicant, stated that he is hopeful that the Supreme Court will approve the SMA, and prefers not be to be stuck in the appeals process now. PC-166 PC-166 November 17, 1998 Ben Tsukazaki, who represents Kaupulehu Development, responded to comments from the previous testimonies. I . In regard to the absence of rules of identification of natural cultural resources, none of the laws specify that there have to be natural cultural resources. Also when groups criticize the policies regarding cultural resources, they do not offer any suggestions as to what the guidelines should be. Developments have been following the existing criteria at federal/state levels. 2. The Kona Hawaiian Civic Club does not want to be part of the coalition opposing the SMA. They will only serve in an advisory capacity. 3. Regarding the concern over the contamination of the water by the project, Hualalai Resorts has done water quality testing every so often, so there has not been any water pollution. 4. Regarding the Kamehameha Schools Bishop Est<rte's (KSBE) ahupua'a plan, it is an internal working document with their own policies and how resources will be protected. KSBE is anon-profit entity that was created to protect the ahupua'as and community associations within the ahupua'a. They have stressed that resources will be managed properly. Your Committee was also reminded that the Kaupulehu Development will coordinate efforts with the DLNR to protect the natural resources in the area. The subject property, located on the makai side of Queen Kaahumanu Highway adjacent and north of Kona Village Resort and Hualalai Resort developments, is owned in fee by Kamehameha Schools Bernice Pauahi Bishop Estate. Kaupulehu Developments, a Hawaii general partnership, is the lessee of the subject property. In addition to the change of zone request, Kaupulehu Developments is also requesting a Special Management Area (SMA) Use Permit to allow for a resort residential community with commercial residents' club, golf course and clubhouse, Hawaiian Interpretive Center, public access and safety amenities, and related ancillary facilities. Kona Village is zoned Resort (V-7) and Open and contains 130 hotel units. Hualalai Resort is zoned Resort (V-2.25) Multiple Family (RM-3), Multiple Family (RM-LO), Village Commercial (CV-10) and Open which contains 250 hotel units. Adjacent to the north is the State of Hawaii Puuwaawaa lands, which are zoned Agricultural-Sa and Open. The State Land Use Commission approved the reclassification of approximately 1,009.086 acres from a Conservation to an Urban zoned district with conditions. A Final Environment Impact Statement for the Kaupulehu Resort Expansion was prepared in accordance with the requirements of Chapter 343, Hawaii Revised Statutes, and accepted by the State Land Use Commission on September 22, 1994 as part of the applicant's State Land Llse Boundary Amendment Petition for the proposed Kaupulehu project. Full buildout of the proposed project is projected over 20 years at an anticipated cost of over $100 million (1994 dollars). 'fhe development project can be summarized in the following eight basic elements: Page 2 PC-166 November l7, 1998 Resort/Residential Units: The development will consist of approximately 530 single-family residential units, duplex, and approximately 500 multi-family residential units. The overall density of the entire Project District would be approximately 3.5 units per acre. Residential units will have some direct golf course frontage and 50 oceanfront homesites. 1. Golf Course and Clubhouse: There will be a 36-hole golf course on approximately 415 acres with a clubhouse which will serve as an entryway facility to the resort expansion community. 'Che golf clubhouse, on a 12-acre area, will constitute a secondary retail restaurant and service complex for the resort expansion area. 2. Commercial Land Use: An 1 1-acre neighborhood commercial center will offer products and services in facilities spanning 45,000 square feet of leasable space. 3. Resident's Club: A 3-acre area will be reserved as awater-oriented recreational amenity for project residents, members and guests. 4. Coastal Planning Area: This area would limit the allowed uses and activities and manage the important cultural and environmental resources contained therein. The Hawaiian Interpretive Center is proposed to be located within this area. Approximately 235 acres comprises the Urban Coastal Planning Area. 5. Other Conservation Area: There is a 2.002-acre area approximately 800 feet west of the Coastal Planning Area (Subzone C) which is also in the State Land Use "Conservation" district and not part of the proposed Project District, but part of the Special Management Area request. 6. Public Access: Lateral shoreline access and public facilities, which will include pedestrian shoreline access, parking, restrooms, showers and picnic areas, within the Coastal Planning Area are to be developed in consultation with community groups and in acairdance with the applicable conditions of approval of the Land Use Commission's Decision and Order. The final comprehensive public access plan shall be developed in consultation with the Planning Director and the Department of Land and Natural Resources and shall include mauka-makai and lateral shoreline accesses, parking area(s), signage, emergency response considerations, restrictions on use (if any), provision of recreational and restroom facilities at appropriate locations, and related improvements. 7. Maintenance Area: This area would accommodate ancillary services for the resort residential community, including wastewater treatment facilities, landscape nursery facilities, service vehicle storage area and other utility facilities. The General Plan Land Use Pattern Allocation Guide (LUPAG) Map designates the project area as Urban Expansion Area. 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. The LUPAG Map also designates the entire property's Queen Kaahumanu Highway frontage and along the shoreline as Open Area, which is generally for parks, historic sites, and open space. The project site is located within an area designated as Open (O) by the County. Page 3 PC-166 November 17, 1998 The Kona Regional Plan recogiizes the Kaupulehu area as a resort destination area. The Plan recommends that this area be allowed to develop on an incremental basis as the demand warrants. The project district (PD) zone is intended to provide for a flexible and creative planning approach rather than specific land use zone designations, for quality developments. It will also allow for flexibility in location of specific uses and mixes of structural alternatives. The planning approach would establish a continuity in land uses and designs while providing for a comprehensive network of infrastructural facilities and systems. A variety of uses as well as open space, parks, and other project uses are intended to be in accord with each individual project district objective. A project district may be established as an amendment to the Zoning Code whenever the public necessity, convenience and the general welfare require that a comprehensive planning approach for an area should be adopted in order to establish a continuity in land uses and designs while providing a comprehensive network of infrastructural facilities and systems. In addition, a project district may only be established if the proposed district: l . is consistent with the intent and purpose of this chapter and the County general plan; and 2. will not result in a substantial adverse impact upon Uie surrounding area, community or region. The minimum land area required for a project district is fifty acres. Any uses permitted either directly or conditionally in the RS, RD, RM, RCX, CN, CG, CV or V districts shall be permitted in a project district; provided that each of the proposed uses and the overall densities for residential and hotel uses shall be contained in a master plan for the project district and in the project district enabling ordinance. The project area is a vacant expanse of a'a and pahoehoe lava flows, which is generally flat and rises gently from sea level to an elevation of approximately 220 feet at Queen Kaahumanu Highway. Existing uses include a driveway access to the Kona Village Resort and a water tank at the 120-foot elevation which serves the Kona Village Resort. The project area is located immediately adjacent to the Kona Village and the Four Seasons - Hualalai Resort areas. The a~a flow, a branch of the 1800-1801 historic Kaupulehu Lava Flow that extends through the center of the project azea and rises 10 to 20 feet above the older pahoehoe lava flows on either side of it, covers the western half of the project area"s shoreline and creates a relatively steep and rocky coast. The eastern half of the shoreline is a tidal pool shelf consisting of a broad expanse strewn with a'a clickers and coral rubble, which is covered with up to 5 inches of sand in some areas. The Soil Survey Report, published by the Soil Conservation Service, classifies soils located within the project site as A'a and Pahoehoe Lava Flows, Rock Land and Beach Areas. Rock Land is a miscellaneous land type which consists of pahoehoe lava bedrock covered in places with a thin layer of transported soil. The Land Study Bureau's Detailed Land Classification System classifies soils within the project area having an overall master productivity rating for agricultural use of "E" or "Very Poor". The project area is not classified by the State Department of Agriculture's Agricultural Lands of Importance to Hawaii (ALISII) Map. Page 4 PC-166 November l7, 1998 of the project site and its relation to the surrounding area was conducted by the applicant. The view analysis indicates that the project area will not obstruct the view of the ocean from Queen Kaahumanu Highway. A floral survey of the project site was conducted by Char & Associates in February 1994. Of a total of 44 species inventoried, 28 are introduced or alien species; 2 are originally Polynesian introduction; and 14 are native. Typical vegetation expected to be found within the project site consist of scattered patches of plants on pahoehoe lava flows. The most abundant of the grasses is the fountain grass as well as two native subshrubs, the'ilima and 'uhaloa. Other shrubs found owasionally include pluehea, noni, indigo and nehe. Scattered kiawe trees of short-stature form only three to five percent of the vegetative cover. During a 1985 and a 1994 survey, a single'ohai plant, a proposed endangered species, was located at about the 120-foot elevation on a weathered pahoehoe lava flow with open scrub and scattered kiawe trees. The native caper or maiapilo and Fimbristylis hawaiiensis were found scattered throughout the scrub vegetation. The report concluded that development of the project area will result in the loss of existing vegetation; however, existing vegetation within the proposed Resource Management Area will be less affected, and the existing'ohai plant will be preserved and will not be impacted by the development. An avifaunal and feral mammal survey was conducted in February 1994 by Phillip L. Bruner. The survey did not locate any threatened or endangered species within the project site. The report concluded that "Due to the apparent absence of significant wildlife habitats within the project area, development of residential areas and golf courses is not expected to result in negative impacts to most area fauna." A baseline assessment of the marine environment fronting the project site was conducted by Steven Dollar in September 1993. Marine waters located off of the Kaupulehu coastline are classified as Class AA, which are waters which remain in their natural pristine state as nearly as possible. The assessment concluded that "Four existing factors suggest that cumulative development will not result in a significant negative impact upon The biological performance of the marine ecosystem." These are: 1) None include substantial or significant alterations to the shoreline or coastal resources. 2) The existing wave regime and healthy coral community together indicate the increased runoff and sedimentation is likely to have no significant impact upon marne conditions. Nutrient loading is unlikely given the low residence time of water along the Kaupulehu coast. In addition the existing coral communities are already adapted to wave stress and currently high levels of groundwater extrusion. 3) The naturally dry climate of the region and general lack of rainfall, combined with the flat topography of the area will greatly reduce the propensity for increased sheet flow and runoff, regardless of the cumulative area of hardscape surfaces proposed in the three development areas. 4) Modem golf course management is much more sophisticated than in times past Pesticides and herbicides are used sparingly and only by licensed personnel. The assessment did recognize one impact, that of shoreline modification due to increased shoreline access. The applicant will prepare a Shoreline Management Plan to mitigate biological resource depletion. An archaeological inventory survey of the property which covered approximately 2,184 acres was conducted by Paul H. Rosendahl, Ph.D., Inc. in two phases between 1991 and 1994. According to the final archaeological inventory survey report (1995), a total of l93 sites consisting of 660 discrete features were recorded. Of these sites, 45 are Located outside of the project . None of the sites identified within the project area are located on the Kaupulehu flow of 1800. Of the 193 sites identified, 56 are Page 5 PC-166 November 17, 1998 recommended for no further work. Of the remaining 137 sites, 69 sites are assessed as significant solely for information content and recommended for further data collection. The remaining 68 sites have been recommended for some form of preservation, and forty-four of these sites are recommended for further data collection followed by preservation with interpretive development. Two major trail sites and two other sites are recommended for preservation with interpretive development. Of the 64 sites recommended for preservation, 38 are wholly within the approximately 37-acre preserve area designated as Subzone C. Nineteen sites are situated outside the preserve area but within the project area. The remaining 7 sites recommended for preservation are located outside of the project area. Lateral shoreline access would occur through the Coastal Planning Area. Public facilities will include pedestrian shoreline access, parking, restrooms, showers and picnic areas within the 70-acre recreation area. The final comprehensive public access plan shall be developed in consultation with the Planning Director and the Department of Land and Natural Resources and shall include mauka-makai and lateral shoreline accesses, parking area(s), signage, emergency response considerations, restrictions on use (if any), provision of recreational and restroom facilities at appropriate locations, and related improvements. Queen Kaahumanu Highway is the primary arterial highway which connects Kawaiahe and Kailua-Kona. The highway is a two-lane, two-way State Highway. The existing access to the project area from Queen Kaahumanu Highway is via an existing paved roadway which serves the Hualalai and Kona Village Resorts. Roadways within the Project District will be designed to resort standards. A Traffic Impact Analysis Report conducted in March 1994 by TMC recommended the following highway improvements to accommodate the Year 2015 I . The intersection of Queen Kaahumanu Highway and Kaupulehu Access Road be upgraded to a fully channelized intersection with left turn storage lanes and right turn deceleration lanes on Queen Kaahumanu Highway, in both the northbound and southbound directions; 2. Queen Kaahumanu Highway be widened to provide afour-lane, divided highway; 3. The intersection of Queen Kaahumanu Highway and Kaupulehu Access Road be signalized, when warranted; and 4. Kaupulehu Access Road and the mauka-makai road provide separate right turn, through, left turn lanes. Water will be provided by three new potable water wells and four non-potable wells. Wastewater disposal will be accommodated by a private wastewater treatment plant. Effluent from the treatment facility will be utilized to supplement non-potable irrigation water at the proposed project's 36 hole golf course. Police protection is provided by the Kealakehe Police Station located approximately 5 miles south of the petition area. Fire protection is provided by the County's Fire Station, Located approximately 15 miles south of the petition area. The State Kona Hospital is located in Kealakekua, approximately 24 miles south of the petition area. The North Hawaii Community Hospital is located in Waimea. Public educational facilities are Kahakai, Konawaena and Kealakehe Schools. In addition, several private schools are located in Kamuela, Kapaau, Holualoa, and Honaunau. Page 6 PC-166 November 17, 1998 Bill No. 332, Drafr 2, which included the standard affordable housing language, some minor housekeeping changes and the fair share contributions, was circulated and approved by Your Committee. Your Committee also noted that Condition CC should state the "Director may" instead of the "Director shall", so an amended Drag 3 will be circulated at the Council meeting. Your Committee concurs with the Planning Commission and the Planning Director for recommending a favorable consideration for the change of zone request. Your Committee on Planning is in accord with the intent and purpose of Bill No. 332, Draft 2 as amended to Drafr 3, and recommends it pass firs[ reading. Respectfully submitted, AYES NOES A&E EX LeITHEAO-TOno X COMMITTEE O A G/' TYLER X 7 f ~C~~~~/.G~ CHUNG ~L "C~ C REVNOL~s R O Y JEAN EITHEAD-TODD, CHAIR SANTANGELO sMrrH X PC REPORT NO. 166 vncoNG x ADOPTED M~~R 17 1999 ARAKAKI GO.:N.