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Home My WebLink AboutREP PC 102 11/06/2008 2006-2008REPORT OF THE COMMITTEE ON PLANNING DATE: November 6, 2008 PLACE: Sheraton Keauhou Bay Resort and Spa 78-128 Ehukai Street Kailua-Kona, Hawaii TIME: 9:15 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. 1551Bi11391 Your Committee on Planning, to which was referred Bill 391, reports as follows: Bill 391, transmitted via Communication 1551 from Mayor Harry Kim, dated October 21, 2008, presents a Change of Zone Request by HONPA HONGWANJI HILO BETSUIN at Kawili Street, Waiakea Cane Lots, Waiakea, South Hilo, Hawaii, TMK: Z-4-001:116. Bill 391 seeks to amend Section 25-8-33 (City of Hilo Zone Map), Article 8, Chapter 25 (Zoning Code) of the Hawaii County Code 1983 (2005 Edition), by changing the District Classification from Single Family Residential - 10,000 Square Feet (RS-10) to Multiple Family Residential - 1,500 Square Feet (RM-1.5) at Waiakea, South Hilo, Hawaii. Communication 1551 reports that the Hawaii County Planning Commission, as required by Chapter 4, Sec. 6-4.3(C), Hawaii County Charter, considered the above request on October 3, 2008 and voted to recommend approval of the proposed change of zone. Communication 1551 also noted that an amendment to Condition P (fair share fees) and Condition R (affordable housing) requested by the applicant was not supported by the Planning Director. The proposed amendment requests that Conditions P and R not apply to any units that are planned to accommodate students attending the University of Hawaii at Hilo or other institutions of higher learning within Hawaii County. Planning Director Yuen noted that his unfavorable recommendation against waiving the fair share and affordable housing conditions is based on the fact that only the County Council, as the legislative body for the County, has the authority to determine whether to waive requirements of the County Code, Chapter 11, for housing and it should be the County Council to decide if a specific project has so much merit that fair share payments normally required, should be waived. The Commission concurred with the Planning Director's reasons for recommending a favorable consideration of the change of zone. Communication 1551 transmits the following findings and recommendations: The subject property is located on the south side of Kawili Street, approximately 300 feet west of Kinoole Street and 500 feet east of Kapiolani Street, Waiakea Cane Lots, Waiakea, South Hilo, Hawaii. PC Rcpart No. 102 Communication 1551 Bill 391 Page 2 of 4 2. Applicant is requesting a change of zone from RS-10 to RM-1.5 a parcel of land consisting of four acres. 3. Applicant proposes to lease the property to a company that will design, build, finance and operate a 106-unit, 400-bed student housing facility for students attending the nearby University ofHawai`i at Hilo and Hawaii Community College. 4. Construction cost of the project, including off-site infrastructure, would be approximately $40 to $50 million and commencement of construction would begin once all necessary permits and approvals were obtained and take about 14-16 months to complete. 5. Access to the subject property is from Kawili Street, atwo-lane major arterial roadway with aright-of--way width of about 80 feet, owned and maintained by the County. The applicant is proposing a single, unsignalized project driveway at Kawili Street with dedicated left-turn and right-turn lanes from the site. 6. County water is available to the site and the project will connect to the sewer line located on the north side of Kawili Street. 7. Electric and telephone services are available to the site and police and fire services are located within 1.5 miles of the subject property. The Hilo Medical Center is located about three miles from the site. 8. The Planning Director recommended favorably on this request based on the following: • The change of zone request will conform to the goals, policies and standards of the General Plan. • The Land Use Pattern Allocation Guide (LUPAG) Map designates this area as Medium Density Urban, which reflects uses that are single-family and multiple- family residential, and village and neighborhood commercial in character. The proposed change of zone will be consistent with the surrounding land uses in the area and will provide for an orderly development of the area. • The Change of Zone request is not contrary to Chapter 205A, Hawaii Revised Statutes relating to Coastal Zone Management as the subject property is not located in the Special Management Area, being located over a mile from the nearest shoreline at an elevation of about 60 feet above sea level and outside the tsunami evacuation zone. • An archaeological assessment prepared by Haun & Associates found no evidence of any traditional and customary native Hawaiian rights being practiced on the site, nor existence of any known valued cultural, historical or native resources in the area. It is also noted that the subject property has been urbanized and extensively developed. • The project site is located within Zone "X", an area determined to be outside the 500- year flood plain. At the November 6, 2008 meeting, Sidney Fuke was present representing applicant and gave a brief background of the proposed project and how Honpa Hongwanji developed the idea for a student housing project. Mr. Fuke noted that a Memorandum of Agreement was developed between Honpa Hongwanji Hilo Betsuin and Place Properties to develop the proposed student housing and that the conditions as proposed by the Planning Director and the Planning Commission are generally acceptable, except for two conditions. Mr. Fuke then requested that the Council consider applicant's amendment and relieve the applicant from the fair share and affordable housing requirements. PC Repor[ No. 102 Communication 1551 Bi11391 Page 3 of 4 Councilmember Jacobson stated he was in support of applicant's proposal for student housing but that if the fair share and affordable housing conditions are going to be relaxed, he could not see the project moving ahead because the project would appear more like afor-profit than affordable student housing. Mr. Fuke explained that the applicant's intent and suggestion is that only if the project turns out to be for student housing, then applicant would want relief from the requirements of fair share and affordable housing. If applicant elects to do anything other than a student housing project then naturally applicant agrees that the fair share and affordable housing conditions would apply. Mr. Jacobson noted that although applicant is proposing a student housing project, once the change of zone is approved the type of project can change into various other types of development. Councilmember Yagong noted that the proposal to amend that Mr. Fuke is proposing should not be discussed. Mr. Yagong stated he certainly supports the idea of student housing especially since some of the drawbacks for bringing students to Hilo is the availability of housing and affordability and therefore we definitely need housing. However, if the project is truly going to be a student housing then he supports the project and inquired what kind of relationship or partnership the applicant has with the University of Hawaii. Mr. Fuke noted that there is no legal arrangement with the University of Hawaii at Hilo that the property to be set aside exclusively for student housing but he was optimistic that should the change of zone be approved, the developer (Place Properties) could then look at the numbers and if the numbers pencil out, proceed with the student housing. Council Chair Hoffmann noted that there was no mention that the proposed project site is located within a University District and therefore entitled to other allowances for developments that occur within the University District. Mr. Hoffmann felt that a proposal such as this student housing project would give some teeth to the University District Ordinance previously approved by the Council. Councilmember Yoshimoto stated his support for the proposed change of zone application because it fulfills a need in the community. Your Committee concurs with the Planning Commission and the Planning Director's favorable recommendation for approval of the Change of Zone request. PC Report No. 102 COnllnUlllcaGOn 1551 Bill 391 Page 4 of 4 Your Committee on Planning is in accord with the purpose and intent of Bi11391 and recommends it pass first reading. and AYES NOES A&E EX FORD X RIGA X HOFFMANN X II{EDA X JACOBSON X NAEOLE X PILAGO X YAGONG X YOSHIMOTO X Respectfully submitted, COMIvIITTEE ON ~, / i K. ANGEL PC REPORT NO. 102 ADOPTED: JAN 2 3 1009