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HomeMy WebLinkAboutREP PC 020 2019/04/09 2018-2020 REPORT OF THE COMMITTEE ON PLANNING DATE: April 9, 2019 Re: Comm. No. 198/Bill No. 49 PLACE: Council Chambers Hilo, Hawai`i TIME: 1:02 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Planning, to which was referred Bill No. 49, reports as follows: Bill No. 49, transmitted by Mayor Harry Kim via Communication No. 198, dated March 21, 2019, is an Ordinance amending Ordinance Number 10-64, which reclassified lands from project district to project district at Ponahawai, South Hilo, Hawai`i, covered by Tax Map Key: 2-3-037:001, 2-3-044:019, and 2-3-049:053. The property is located on the west (mauka) side of the Komohana Street—Ponahawai Street intersection and northeast(makai) of Mohouli Street Extension. At the March 7, 2019 Windward Planning Commission public hearing, the applicant, Wailani Development, LLC, requested amending q se veral conditions with the intention to make the Wailani Project District development less costly. The amendments focus on, "reducing some of the infrastructural requirements, allowing options to address infrastructural requirements, allowing the ability to time the infrastructure improvements to be concurrent with the actual development the improvements are designed to serve, and increasing the residential uses while decreasing the commercial components of the project." In addition to a time extension, the applicant was requesting to modify Condition D (Increase Maximum Residential Units from 518 to 700), Condition E (Reduce Maximum Commercial Area from 480,000 to 420,000 square feet), Condition I (Modify Master Plan Amendment Process), Condition N (Delete Underground Utility Requirement), Condition L (Time Extension for Construction), Condition P (Modify Construction/Completion Requirement of Ponahawai Street Extension), Condition Q (Modify Access Requirements), Condition R(Modify Curb, Gutter, Sidewalk Requirement), Condition KK(Waive Fair Share Requirement for Affordable Housing Units), Condition 00 (Administrative Time Extension). Applicant Dr. Peter Matsuura of Wailani Development, LLC and Planning Consultant Sidney Fuke appeared before the Planning Committee. Mr. Fuke began his presentation addressing some of the public testimony that had been presented regarding the project and recapped an "archeological perspective" of surveys and plans that had been completed before grubbing and grading had occurred. He noted the preservation of several acres of the lot and spoke to concerns of water drainage, giving specifics of what was done to adhere to existing codes and regulatory requirements. PC Report No.:20 PC-20 Page 2 April 9,2019 Mr. Fuke presented a brief history of the project. He explained that Dr. Matsuura, an orthopedic surgeon, worked in his office across the street from the subject property, vacant land called University Terrace. He envisioned building a large residential and medical campus there and decided to purchase the lot. Mr. Fuke explained that Dr. Matsuura formed a family hui, now called Wailani Development, LLC, and pointed out the local family members present before the Council in general seating. Wailani purchased the property in 2009, and with local professional assistance, completed the first phase of required plans while sharing their vision with the community through a series of meetings. Zoning for the project was then approved in 2010, followed by master plan approval in 2011. Project development then began with the hiring of additional consultants and the completion of a water master plan, a sewer plan, a grading plan, roadway construction plans, and the payment of water commitment fees - all of which remain current. By this time Wailani had invested close to a quarter of a million dollars and sought potential tenants, including a local supermarket and a local pharmaceutical company, to assist with paying part of the required infrastructure costs of the project. However, the potential tenants found the costs to be too exorbitant and could not assist. Wailani then hired a friend and development consultant from Maui with extensive development experience in the islands to review the project and provide feedback on what could be done to make the project financially feasible and see it to its completion. Mr. Fuke made special note that Wailani is "in it for the long haul" and not seeking to flip the property, though may sell portions of it or go into joint ventures in the future. Mr. Fuke explained that the current application included 17 amended conditions, 11 of which were requested by the applicant based on the Maui consultant's recommendations and Mr. Fuke's expertise. The remaining six were modified to reflect current development standards and requirements. Of the applicant's proposed amendments, the Planning Department and Commission gave a favorable recommendation to Conditions D, E, I, L, N, KK, and 00. The Commission gave a favorable recommendation to the Planning Department's proposed Conditions J, K, 0, S, FF, GG and HH. Both the Commission and Department gave an unfavorable recommendation to the applicant's proposed amendments to Conditions P, Q and R. Mr. Fuke stated the applicant was willing to concede with their decision on Condition Q (Modify Access Requirements), but asked for editorial changes be made to the condition for clarity. The main area of contention, as noted by Mr. Fuke,related to Conditions P and R in which the entire project be constructed with curbs, gutters, and sidewalks. The applicant wanted to modify this requirement to limit it to only certain areas in order to lower the overall cost of the project. Mr. Fuke provided the comparison of the similar 80' wide, right-of-way Mohouli Street extension in Hilo that was constructed with government funding without curbs, gutters, and sidewalks, and noted the inequity and hypocrisy in requiring a private developer like Wailani to do so. He cited what was required in the County Subdivision Code, which allows residential subdivisions with six or less lots to construct non-dedicable roads, and reasoned that for the residential portion of the development with lots of 15,000 square feet or less, the Subdivision Code should apply. Committee Chair Ashley Kierkiewicz clarified the three amendments to the conditions in which the applicant and the Planning Commission differed. She outlined Mr. Fuke's request that Condition P would eliminate the curb, gutter, and sidewalk requirement for the second stage of PC Report No.:20 PC-20 Page 3 April 9,2019 the construction of Ponahawai Street, that Condition R would be consistent with the County Subdivision Code where the curb, gutter, sidewalk requirement for lots 10,000 feet or smaller is not required, and the language changes to Condition Q. Committee Chair Kierkiewicz then opened the discussion up to the Planning Department to hear the reasoning behind their recommendations. Planning Director Michael Yee explained that the County Council had in the last few years adopted a resolution related to "Complete Streets,"with some members taking a mobility tour on the mainland to better understand this concept to help make Hawai`i Island a more liveable and walkable place to reside, which requires the construction of more curbs, gutters, and sidewalks in new developments. He understood Mr. Fuke's position regarding Mohouli Street and could not understand why the roadway had been constructed without curbs, gutters, and sidewalks, but explained this was not the example from which to move forward with new developments. Planning Program Manager Jeff Darrow also spoke to Director Yee's position, noting that the development should have complete streets as it is intended to be a walkable community. He also acknowledged Planner Maija Jackson's exceptional work on the submittal explaining each of the applicant's requests and the reasons for the Planning Department and Commission's recommendations. Council Member Valerie Poindexter stated that she does believe in complete streets and had been on the mobility tour referenced by Director Yee, but that, "too much cement feels like hell" and contributed to issues of flooding. She expressed her desire to see more natural landscaping and walking paths instead with new developments. Director Yee acknowledged her statements but pointed out that the development is in the urban core of Hilo, not in a smaller agricultural town as she had referenced. Council Chair Aaron Chung explained that the project is located in his district and stated that he was in favor of curbs, gutters, and sidewalks overall, but understood how expensive and cost prohibitive it would be for the developers. He knew this is why the lot had been vacant for so long. He said that when he served on the Council in 2004, he had proposed that the County absorb some of the construction costs of the streets for this project, but the vote failed 5-4. Council Chair Chung favored entertaining this kind of public-private financing partnership again, and stated he would work with staff on the language of the amendments to Conditions P, Q, and R. Committee Vice Chair Sue L. K. Lee Loy followed Council Chair Chung and agreed that developers could not be front-loaded with infrastructure costs that would inhibit them from being able to follow through on projects, particularly if held to a higher standard than roads constructed with public funds. She brought up Ane Keohokalole in Kona example in which curb, gutters, and sidewalks existed on only one side of the street as a possible cost-saving measure. She acknowledged the need to compromise, and agreed that the County should absorb some of the costs of infrastructure as had been mentioned by Council Chair Chung. She reminded everyone that ultimately a development like this would bring in much needed revenue through Real Property Tax. PC Report No.:20 PC-20 Page 4 April 9,2019 Council Member Rebecca Villegas cautioned against making too many exceptions on this project,understanding the desire to do so given that Wailani is a local family developing it, but would set precedent for larger, out-of-state, West Side developers to argue for the same. Council Member Herbert M. "Tim"Richards stated he was in support of Council Chair Chung's position and in support of the development in general. He stated that he was not for"complete streets"but rather"walkable streets." Council Member Karen Eoff expressed her appreciation for the project and the plan to have curbs, gutters, and sidewalks limited to only certain portions of it. She appreciated the idea of walking paths in place of curbs, gutters, and sidewalks. She was also in favor to have the County absorb some infrastructure costs and pointed to the General Excise Tax monies that could potentially help fund construction. Committee Chair Ashley Kierkiewicz posed the question if the complete street model could be adapted without curbs, gutters, and sidewalks. Planning Director Yee stated that it could and had just"kicked off'the complete street partnership with the Department of Public Works on this day. He also stated that he was in agreement that the county should pay for a portion of infrastructure costs. Council Member Matt Kaneali`i-Kleinfelder wondered if the master plan of the project would come back to the Council at a later date. Both Mr. Fuke and Planning Director Yee told him it would not. He asked about the removal of the underground utility condition and felt that this was not aesthetically appropriate. Planning Director Yee stated he agreed, but that in order to assist the developer with completing the project by finding ways to lower costs, he eliminated this requirement. Mr. Fuke explained that insistence on underground utilities by the County would have been a"deal breaker" as the project would not be financially feasible, particularly with being able to meet the affordable housing requirements. Council Member Kaneali`i-Kleinfelder also challenged the idea that this would be a"walkable community" without curbs, gutters, and sidewalks throughout the development. He then asked if there had been an environmental assessment for the project. Mr. Fuke explained there was not, but through the array of studies that had already been completed, all areas of a Hawai`i Revised Statute Chapter 343 environmental assessment had been addressed. Council Chair Chung challenged some of Council Member Kaneali`i-Kleinfelder's statements, noting that he was not being realistic about the need for developers to be profitable and that while it would be ideal to have curbs, gutters, and sidewalks with all new developments, this is neither feasible nor realistic. Council Member Maile Medeiros David stated her appreciation for the discussion and that it was clear all were in favor of complete streets for the county at-large. She noted she had never seen a development project of this scope come forth from individuals who are a part of the local community. She commended Council Chair Chung for being fair and equitable in his approach and her support of his decision to move the project forward. She acknowledged Council Member Kaneali`i-Kleinfelder's very valid concerns and the difficulty in finding the best decisions to move projects forward. PC Report No.:20 PC-20 Page 5 April 9,2019 Committee Chair Kierkiewicz stated how appreciative she was of Wailani to bring affordable housing to the community, the need to aspire to "complete streets" and public-private partnerships, and her support of the possibility of infusing future infrastructure developments with GET monies. A motion was made to move Bill 49 forward with Mr. Fuke and Council Chair Chung drafting new amendments to Conditions P, Q, and R. Your Committee on Planning is in accord with the purpose and intent of Bill No. 49, and recommends its passage on first reading. ck AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON PLANNING EOFF X KANEALI`I-KLEINFELDER X KIERKIEWICXZ X alL LEE LOY X POINDEXTER x ASHLEY L. KIERKIEWICZ, CHAIR RICHARDS X PC REPORT NO.: 20 VILLEGAS X ADOPTED: APR 2 4 2019 PC Report No.:20