HomeMy WebLinkAboutREP PC 112 09/06/2000 1998-2000 REPORT OF THE
COMMITTEE ON PLANNING
DATE: September 06, 2000 Re: C-906/Bill No. 310
PLACE: Councitroom
TIME: 1:39 p.m.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Planning, to which was referred Bill No. 310, transmitted by Mayor
Stephen K. Yamashiro per Communication No. 906, dated August 22, 2000, regarding the
change of zone amendment request by Kamehameha Investment Corporation, at Kahaluu,
North Kona, Hawaii, TMK: 7-8-10:94 (formerly portion of 2), reports as follows:
Bill No. 310 amends Ordinance No. 97-79, which reclassified approximately 10.375 acres of
land from an Unplanned to a Village Commercial (CV-7.5) zoned district, by amending
Conditions B and D. Condition B extends the submission date for the SMA Use Permit to five
years instead of one year from the effective date of this amendment; and Condition D states the
construction of the commercial office building shall be completed within five years from the
effective date of the SMA Use Pertnit instead of the change of zone ordinance.
The irregular-shaped subject property, owned in fee by the applicant, is located on the west side
of the Kamehameha III Road northeast of the Keauhou Shopping Center. The subject property is
located within the Kahalu`u Historic District, therefore, compliance with Chapter 343, HRS, is
required in conjunction with the Special Management Area (SMA) Application and prior to
development of the property.
Ordinance No. 97-79 approved the Village Commercial (CV-7.5) district classification to allow
the construction of an office complex, which would tie in with the existing Keauhou Shopping
Village. On September 23, 1998, the Planning Director granted an administrative extension of
time until June 9, ] 999, to comply with Condition B. On June 30, 1999, another time extension
was granted until June 9, 2000, to comply with Condition B. On July 9, 1999, Final Subdivision
approval was granted by the Planning Director for the creation of two lots.
Because Hawaii's economy has not fared well, and two of the hotels (Kona Surf Hotel and Kona
Lagoon Hotel) have closed, the only remaining "primary economic engines for the Keauhou
area" is the newly renovated Keauhou Beach Hotel "With respect to the Keauhou Shopping
Center, which is run by Kamehameha Schools-the tenant mix is very dependent upon the
success of the hotels. So, when the hotels do poorly, as they are doing now,...the tenant spaces in
the Keauhou Shopping Center are filled up by office uses" which "don't give the best economic
return for a resort shopping center. Once ...the hotels get renovated and re-energized,".. "the
tenant mix that goes into the shopping center will then allow" the applicant "to take the
PC-112
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commercial tenants out and put them into this project." Hence, the applicant is requesting the
five yeaz time extension until June 8, 2005, to compensate for the economic downturn, and
delays in plan approvals for new developments due to the reorganization of its corporate
structure. Steve Lim, representative for the applicant, also stated they would like to complete the
project in one year, if they could, but it just cannot be done.
Your Committee, on the whole, agreed that one year is too short a time to complete this project,
therefore, a five year extension is reasonable. Committee Member Julie Jacobson, however,
stated that although she is really not opposed to this amendment, she will oppose it "more on the
general sense of doing time extensions and the feeling that ...we always do give them, that we are
encouraging a speculative kind of approach to development, to sign up for something that you
may or may not be able to do."
In response to Ms. Jacobson's comment, Your Chair explained that the speculative rezoning
usually refers to people who come in, change zoning, then turn around and sell it. However,
Kamehameha Schools/Bishop Estate is "extremely reluctant to sell any oP' their "property and
it's only been under forced legislation from the State Legislature that" they "have, in fact, sold
property."
Mr. Joseph Spencer of KIC then stated that the "commercial properties aze -become the
perpetual income stream to Kamehameha Schools as opposed to, say, some residential
developments in which we are forced to sell the fee under the proposed development -those
types of developments."
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. 310, and
recommends it pass first reading.
AYES NOES A & E EX
LEITHEAD-TODD X
TYLER X
CHUNG X
GLARIONOPP X Respectfully submitted
JACOBSON X
PISICCHIO X COMMITTE N PL /G7
SMITH X J/
YAGONG X uC~
ARAKAKI E.O.M. x B JEA LEITHEAD-TODD, CHAIR
PC REPORT NO. 1 12
ADOPTED: ~ '2 ~ 2~