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Home My WebLink AboutREP PC 001 2019/01/08 2018-2020 REPORT OF THE COMMITTEE ON PLANNING DATE: January 8,2019 Re: Comm.No. 13/Bill No. 1 PLACE: Council Chambers Hilo, Hawai`i TIME: 1:40 p.m. Council Chair and Members Hawai`i County Council Hilo,Hawaii 96720 Your Committee on Planning,to which was referred Bill No. 1,reports as follows: Bill No. 1,transmitted by Mayor Harry Kim via Communication No. 13, dated November 19, 2018, amends Ordinance No. 99-42 which reclassified lands from Open(0)to Project District(ED) at Kaupulehu,North Kona, Hawai`i, covered by Tax Map Key: 7-2-003, Portion of 1 (Applicant: KD Acquisition, LLLP and Hualalai Investors, LLP; formerly Kaupulehu Developments) (Area: approximately 1,078.63 Acres). Mayor Kim forwarded the Leeward Planning Commission's favorable recommendation to accept the Overall Status Report required by Condition BB, and to grant a 20-year time extension to Condition B (Development Period). The property,known as the Kaupulehu Project District,is located between the 87 and 84 mile markers of the Queen Ka`ahumanu Highway. Representing the project before Your Committee was Attorney Steven Lim of Carlsmith Ball. Mr. Lim updated the Council on recent progress regarding the project. He said that on November 2, 2018, Kaupulehu Developments Acquisition, LLLP and Hualalai Investors, LLP (KDA&HI) "commemorated in writing"that they would assist the Department of Transportation to redo an intersection of Queen Ka`ahumanu Highway to accommodate proper turning and acceleration lanes per Department of Transportation's requirements resulting from their Traffic Impact Analysis report. On December 20,2018,KD acknowledged their appreciation to their two-person monitoring committee for cultural and resource development, made up of Leina'ala Keakealani Lightner and Hannah Kihalani Springer, who initiated the communication that initiated the development of the project. Lastly, on January 7, 2019, KDA&HI received a letter from the State Historic Preservation District (SHPD) approving the project for both Lots A and B. Mr. Lim noted that SHPD's approval was the last remaining hurdle to commence the final planning of this project and implement their next phase. He then explained the work being done towards opening the shoreline to the public,noting that this area was dangerous,rocky coastline and not a beach. Mr. Lim described a managed public access area with both safety and cultural elements needing to be considered,and that appropriate signage would need to be created and approved by the Planning Department. He stated for the record that the area could be accessed by the public within a year from adoption of the amended ordinance. PC Report No.: 1 PC-1 Page 2 January 8, 2019 Council Member Karen Eoff noted her concerns, in particular Condition S, as it states that public access would be tied to the opening of a golf course. Council Member Maile David concurred with Council Member Eoff's remarks and questioned whether public access could proceed without a golf course. She explained that her issue lies within the fact that the ordinance and what is actually occurring are different. Mr. Lim assured her that he would submit progress reports to the Planning Department and include final details of the public access plan, including a contingency plan. Council Member David said she would like the ordinance to be changed to include the public access timing of not more than 12 months and the 20-year time extension and asked Mr. Lim's position on this. He noted that he would like a 20-year extension or even open-ended, so that KDA.&HI would not have to sit before the Council in this fashion again. Council Member David then brought up Planning Director discretion and the Planning Commission process,which provides both the public and the Council with an opportunity to follow the administrative review to grant time extensions, done in five-year increments, and noted that this was not done with this project. Mr. Lim stated KDA&HI would follow through with whatever is necessary. Committee Vice-Chair Lee Loy noted that another entitlement document,namely a Special Management Area Permit, also requires public access and is also being addressed by KDA&HI. She then asked for representatives from Corporation Counsel or the Planning Department to provide input. Deputy Corporation Counsel Amy Self explained that in her opinion the original conditions should be amended as the ordinance was essentially being used as a checklist for the Planning Department and it should reflect the current status of the project. Planning Program Manager Jeffrey Darrow said that this project has addressed department and committee recommendations over the years and that asking for a 20-year time extension legislatively and also through the Planning Commission would result in a 40-year extension. Committee Vice-Chair Lee Loy thanked the applicant for their work, noting that it took the SHPD six years to review and approve this project. She noted there should be no more hurdles for this project and reminded everyone that reports are provided to the Planning Department annually. She stated that applicant is committed to opening the shoreline to the public in less than a year's time and it should be permitted, and then committed to working with Corporation Counsel and the developer to craft the appropriate language and move this bill out of committee. Council Member Eoff also offered to assist with the rewording of the ordinance and wanted to be a part of the process. Mr. Lim stated they would prefer to work with the Council Members individually and that KDA&HI already had preliminary language in mind. Council Member Matt Kaneali`i-Kleinfelder asked for more specifics about the public access, and it was clarified that the public did not have unsupervised access to the shoreline at this time. Council Chair Aaron S. Y. Chung then brought up a technical aspect of the process by asking if KDA& HI should have even been included in the rezoning ordinance,20 years later, if they had already been in compliance with county standards by submission of their annual updates to the Planning Department. He noted that while the bill makes things "cleaner,"there are no assurances of its passage,nor that more hurdles would not be placed in front of the developer in the future. Council Chair Chung said he would vote in favor of the bill, though he questioned the need for it. PC Report No.: 1 PC-1 Page 3 January 8, 2019 Council Member Herbert M. "Tim"Richards,III agreed with Council Chair Chun 's points. Public �' g access to the shoreline and upgrades to the highway were beneficial for all, and the Council need not hinder the progress of this project. Council Member Eoff explained that the bill was a suggestion from one of the conditions that KDA& HI had received during standard Planning Department processes. She felt that improving the language in the ordinance around public access would not take much time or delay the project. Mr. Lim then noted that if the Council still wanted to them-to pursue the bill,they had other sections in the ordinance that they could also improve upon and would be willing to submit the amendments by the close of the meeting. Corporation Counsel Deputy Self reiterated her previous point that language should be specific so the Planning Department is clear on implementation. Council Member Rebecca Ville as suggested that it was more important to do things-correctly rather than quickly. The vote was then taken on the motion to move this measure to Council with a positive recommendation and passed unanimously with nine"ayes." Your Committee on Planning is in accord with the purpose and intent of Bill No. 1, and recommends its passage on first reading. ck AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON PLANNING EOFF X KIERKIEWICZ X KANEALI`I-KLEINFELDER X LEE LOY X POINDEXTER x ASHLEY L. KIERKIEWICZ, CHAIR RICHARDS X PC REPORT NO.: 1 VILLEGAS X ADOPTED: JAN 2 3 2079