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HomeMy WebLinkAbout2020-08-20 Leeward Exh B (Amend Zoning Code re Primary Airports) LEEWARD PLANNING COMMISSION COUNTY OF HAWAII HEARING TRANSCRIPT AUGUST 20, 2020 A regularly advertised hearing on the PLANNING DIRECTOR INITIATED AMENDMENT TO CHAPTER 25 OF THE HAWAII COUNTY CODE, RELATING TO PRIMARY AIRPORTS was called to order at 11:36 a.m. via livestream online meeting, with Chairperson Nancy Carr Smith presiding. COMMISSIONERS IN ATTENDANCE: Nancy Carr Smith, Perry Kealoha, Max Newberg, Mark Van Pernis, Michael Vitousek and Faith "Faye" Yates ALSO IN ATTENDANCE: J Yoshimoto, Esq. (Counsel for the Commission), Michael Yee (Planning Director), John Mukai, Esq. (Counsel for the Planning Director), Alex Roy (Planner), Jeff Darrow (Planning Program Manager), Maija Jackson (Planner), Christian Kay (Planner), Tracie-Lee Camero (Planner), Rachelle Ley (Secretary to the Planning Director), Kim Tanaka (Board and Commission Secretary) and Noriko Sauer (Leeward Planning Commission Secretary) INITIATOR: PLANNING DIRECTOR An ordinance amending Chapter 25 (Zoning Code), Articles 1 and 5 of the Hawaii County Code 1983 (2016 Edition, as amended), relating to primary airports. The purpose of these amendments is to establish a land use called "Primary Airports"by adding a definition, identifying accessory land uses, and adding the land use as a permitted use within the County's Limited Industrial (ML) and General Industrial (MG) zoning districts. Secretary's Note: "- - -" indicates that there were technical and/or internet difficulties, which made the conversation inaudible. CARR SMITH: Agenda Item No. 3 is initiated by the Planning Director: An ordinance amending Chapter 25 of the Zoning Code, Articles 1 and 5 of the Hawaii County Code 1983, the 2016 Edition, as amended, relating to primary airports. The purpose of these amendments is to establish a land use called primary airports by adding a definition, identifying accessory land uses, and adding the land use as a permitted use within the County's Limited Industrial and General Industrial zoning districts. Alex, I believe you are going to provide the presentation on this. Go ahead, please. ROY: Okay. Today I'm presenting the Planning Director initiated amendment to Chapter 25 of the Zoning Code, Article 1 and Article 5, relating to primary airports. The Planning Director is initiating an amendment to the Zoning Code relating to primary airports. The only reference in the Zoning Code currently that refers to an airport type use is listed as "airfields, heliports and private landing strips." Additionally, these uses are not defined in the Zoning Code and do not mention any accessory uses, such as a hotel, that may be normally 1 EXHIBIT B associated with an airport. This amendment will alter and amend the definition, or create the definition, of primary airport in the definition section of the Zoning Code, as defined by the FAA, the Federal Aviation Administration. Also included in the definition is a general list of accessory land uses that are normally associated with what's called a primary airport. So to define, "Primary airport"means a publicly owned airport that has more than 10,000 passenger boardings each calendar year, as defined by the FAA. Now, standard accessory uses for the Primary airports include retail establishments, shopping, duty-free, dining, rentals, automobile rentals, businesses service that service, businesses that service the airport, offices, conference centers and hotels—common uses we have all seen at airports, especially rural airports, across America. The accessory uses must be located on publicly owned lands and support airport operations—so that's a key. This amendment will define "Primary airport" in the definition section of the Zoning Code, as I just defined above. The County has two international airports—of course, we know—Hilo and Kona. Hilo is situated within the County's Limited Industrial, or ML, zoning district, and, while the Kona International Airport is within the General Industrial, or MG, zoning district. Both are on publicly-owned lands. These airports are constantly expanding and require the need to provide additional services to meet that expansion. Currently, there is a number of accessory land uses associated with the primary airports but are, that are not permitted within these, that aren't permitted within the Limited Industrial and the General Industrial zoning districtsso, retail establishments, automobile rentals which are not permitted in MG, offices, business,personal. So the main reason, or the primary reason, for this amendment is to bring these uses in line with the Zoning Code. Secondary reason for this amendment is that the County has received a request from the Department of Transportation, that's a State department, State DOT Airports Division, to allow for conference centers and for overnight accommodations, i.e. a hotel, to support airport operations. So that support of airport operations means airport personnel, visitors, stranded passengers, and this, of course, is primarily for the Kona International Airport. A hotel/conference center is identified at the Kona International Airport in their current master plan, which was updated in 2010. The master plan states that"many airports support hotels onsite in support of flight crews and overnight stays for passengers traveling early the next day." In addition, FAA regulations require rest periods for pilots between flights and the distance between an available hotel can affect flight schedule. So if they have to drive all the way into Kona, so the idea is that this would provide one of those areas for, to, for the flight crews onsite, so they wouldn't have to travel. Okay, lastly, this new primary airport land use, along with its accessory uses, will be added as a permitted use only within the County's ML and MG zoning districts. So that's—and then the requirement along that, the Plan Approval must be secured by the planning director. So this means that an applicant will need to submit plans to the Planning Department for Plan Approval prior to any expansion of accessory uses, including the conference center and/or the hotel. The Plan Approval review will allow the planning director to approve this request, including the requested accessory uses. Additionally, it will allow them to, allow the planning director to review and approve the associated elements of each of the use, such as the height of their hotel, the amount of rooms, parking, setbacks, landscaping, etcetera. 2 EXHIBIT B Here is a shot of the Hilo International Airport zoning. You can see that the airport is primarily within the ML-20 zoning district. But for you, here is the Ellison Onizuka Kona International Airport, which is, you can see both Open and the General Industrial, MG, 1-acre, MG-la. We received a number of comments that people were concerned that this would impact the Conservation district. So I've included a map of the Conservation district in blue. Urban is orange, or red, depending on your computer, and the Agricultural zoning district is in green. But as you can see, the Urban district encompasses the entire airport area. Anything that's in the Conservation district is not included. We have no authority, and so it would be a moot point that this would affect the Conservation district because it can't, cannot. The County has no authority; the DLNR manages and regulates, through the Office of Conservation and Coastal Lands, the Conservation district. So this is not going to go in the Conservation district because it wouldn't be allowed; it would only be allowed in the Urban zoned area that has appropriate County zoning, such as ML, or in this case MG for the Kona Airport. So the Planning Director is recommending that PC submit a favorable recommendation to the Hawaii County Council in support of the Planning Director's initiated primary airports. And that ends my presentation. CARR SMITH: - - - NEWBERG: You are muted, Nancy. CARR SMITH: Sorry about that. Thanks, Max. Director Yee, did you have any comments at this point? YEE: No comments right now. CARR SMITH: All right. Any questions, Commissioners, for the staff? Mike, go ahead. VITOUSEK: Are there any plans that would depict where the proposed hotel will be located on the 2010 master plan? ROY: I actually had the conversation with Jeff yesterday, and there was a map, very preliminary map, that was brought forth that indicated it would be kind of on the, I guess it would be, looking at the map, the eastern side of, the eastern, lower eastern portion of that Urban zoned area. But the plan is definitely not set in stone, and in fact, the Planning Department had many issues with that, one of which was the coordination with the development of the Conservation district, which requires, of course, DLNR or a State Land Use Boundary Amendment. So at present there is no real solid location other than within the Urban zoned, or MG zoned, area, but I haven't seen any specifics. Now, we have a testifier, I know, that may speak to that plan, so you may be able to ask more about that. But right now, there is no set, nothing set. 3 EXHIBIT B VITOUSEK: I guess that would kind of answer the question about how soon it's likely to occur. It seems like it's totally conceptual at this point; this is just taking care of some zoning issues, and there is not like actual plans in place that this is intending to accomplish. Is that right? ROY: Yes, exactly. This is VITOUSEK: Yeah. ROY: this is an attempt to bring the zoning and the code and the allowable uses in line with what is commonly found at these types of airport, which is VITOUSEK: And also in part with what's already occurring there? ROY: Exactly. VITOUSEK: Yeah. ROY: Exactly. And I wanted to note that while there are other ML and MG zoned lands, they won't be allowed to follow that unless they are considered a primary airport, which means that they have to have that 10,000-person-per-year situation. So Kona and Hilo would be the only places this could possibly work. And then, ultimately, Kona is the one that is being looked at as more necessary. VITOUSEK: Thank you. CARR SMITH: Mr. Van Pernis. VAN PERNIS: Thank you. Would you give me, Christian [sic], more of a how the hotelI understand from your presentation that all accessory uses have to be on public land—so does that mean a hotel pays rent to the State or County or what? First of all, am I right that it has to be on public land? ROY: I'm not sure how to answer, I don't know what requirements would be, you know—maybe Jeff or Director Yee can answer that. I'm not sure. I have to look into that for you. CARR SMITH: Okay. Jeff? VAN PERNIS: - - -public land? CARR SMITH: Mr. Van Pernis, Jeff is going to try to respond to your question. DARROW: So the lands that we are looking at currently with the public, where the airports, are publicly owned. If there are businesses on there, that's probably paying some sort of rent or lease, using the public land. But I believe we have representatives from the Department of Transportation's Airports Division that will be able to answer how they work with those particular entities. Thank you. 4 EXHIBIT B CARR SMITH: Okay, we'll wait for that testimony then. Anything else, Commissioners? Max, go ahead. NEWBERG: I don't know if this mirrors Mr. Van Pernis's question, but would the lands that could be used commercially, should it be a hotel, should it be eateries, what have you, being that it would be on public land, would those buildings be subject to Davis-Bacon - - - in regards to their construction? CARR SMITH: Jeff? DARROW: Again, I think we should defer that to the representatives from the Department of Transportation in regards to that. Thank you. CARR SMITH: Very good. All right. Staff, or Director, did you, is Mr. Yuen's presence considered public testimony or part of the presentation or what? ROY: That would be public testimony. CARR SMITH: All right, very good. So if I see this correctly, we have Chauncey Wong Yuen, Craig Bisgard, Janice Palma-Glennie, Melvin Mason, Jr. and—is that the extent of our public testifiers for this agenda item? Or is Randall a part of this as well? LEY: Hi, this is Rachelle. Randall is not, I believe, but Shannon Rudolph should be, but she got disconnected, so we are waiting for her to rejoin. CARR SMITH: All right— LEY: ightLEY: In the meantime, Janice does need to leave soon, so CARR SMITH: Okay. LEY: either Chauncey or Janice should go first. CARR SMITH: All right. I'd like to swear you all in at one time, if that's all right with you. You don't mid raising your right hand, folks that I mentioned? Do you swear or affirm to tell the truth on this matter before the Leeward Planning Commission? TESTIFIERS: I do. CARR SMITH: Thank you. All right, we'll, we'll let Janice go ahead and begin, and then she can drop off. Go ahead, Janice PALMA-GLENNIE: Thank you very much CARR SMITH: yeah, tell who you are where you are from, and try to limit it to around three minutes, if you can,please. 5 EXHIBIT B PALMA-GLENNIE: Aloha, Commissioners. My name is Janice Palma-Glennie. I'm testifying on behalf of the Surfrider Foundation's Kona Kai Ea Chapter today. I am living in Kailua-Kona. Our mission is to protect and enjoy oceans and water waves. Our concern with the proposed zoning changes are the impacts that they'll have on our State's waters and other natural and cultural resources, especially in those, especially if those changes include a hotel conference center. An environmental attorney, as environmental attorney David Kimo Frankel wrote in his testimony to the Planning Director regarding his proposal, "The Kona coastline should remain free from urbanization to the maximum extent possible." In fact, that's what 90 percent of thousands of Kona Community Development Plan stakeholders said at years-long charrettes and hearings that led the creation of CDP, which is County law. "Keeping development mauka of the highway protects water quality and scenic vistas"points also resoundingly agreed upon by residents during each of the landmark development battles our community has fought and won over several decades, some within a stone's throw of the airport. Protected public lands like `O`oma, a Conservation zone treasure whose protection was won after 20 years of community struggles. It's adjacent, or less than a mile from the airport. `O`oma is now thankfully protected as a County park, but because of lack of management funding, its natural resources are threatened. This is also true of Kekaha Kai State Park, which is on the airport's boundary. And it's true of many others. Yet, oddly, we are discussing the possibility of building a hotel in that area despite not knowing how big it might be and what impacts it will have. Why would we risk such precious resources when many hotels have occupancy of as low as ten percent and only seasonally full? Wouldn't it be better to focus on more immediate public needs and support existing accommodations built on Resort zoned land instead of changing County Code to accommodate hotels where they aren't allowed? There are huge costs associated with urbanizing the Kona coastline, many whose dollar values are difficult to determine. Potable water is precious. From where will this project obtain it? Toxic runoff onto nearshore reefs that feed our people and economy and keep Hawaiian culture alive is also at threat. And wastewater treatment is the bogeyman of West Hawaii. How would the extra development affect these critical resources whose values are incalculable? Kona isn't like most major airports. And"normally" doesn't mean, means "not always" in regulation to amenities. We are not Denver, San Francisco; we are a dead-end facility, and it's safe to say many people like it that way. Short intentional layovers don't happen here and relatively few occur due to weather or other issues. And travel to a hotel in West Hawaii often takes less time than one close to the San Francisco Airport. This rare need as it's called doesn't seem dire enough to throw millions of tax dollars away when our financial resources have been ravaged by COVID-19 and the past volcanic eruption. Frankly, we see this plan as nose under the tent of coastal hotel development. After tremendous sacrifice and hard-won success stopping so many huge development to back off, Kona residents have a hard time feeling confident that more of the same aren't the focus of the powers that be, when this is one of the first large projects being zeroed in on by our County and State during the pandemic. And with so many reginal needs and government coppers running dry, it's mystifying that this is the project our overworked underfunded Planning Department is focusing upon. If we've learned 6 EXHIBIT B lessons from the past and current hard times, it seems like our leaders would see the madness of putting more eggs into the tourism basket. One other concern we have is that people generally want to see successful agencies with great track records taking on more responsibility. Why would we entrust an agency to manage and expand the airport facility when it allowed the Honolulu Airport to degrade to North America's third worst? And I have one comment that wasn't in my testimony from what Planning said. Despite the project not being in Conservation land directly, it certainly will affect Conservation lands that are adjacent to it. And as far as building a quarantine hotel at the airport, we have plenty of hotels that can be used, especially when there is a pandemic, which creates even lower occupancy. And to close, with all these concerns and more, we ask the committee members parse the land use and financial needs of our residents in a different light than those who need proposed zoning amendment. We hope that you and the Planning Department will focus on more sustainable, diverse, less tourism dependent projects, especially ones that don't sit precariously close to our special hard-won places and our delicate coastline. Mahalo for your time, and thank you so much for letting me go before other speakers. CARR SMITH: Thank you very much, Janice, appreciate it. All right, let's move on. Mr. Yuen and Mr. Bisgard, you folks want to be next? And please let us know your name and where you are calling in from and what your position is,please. And unmute, please. WONG YUEN: Okay, are we good now? CARR SMITH: Yes, go ahead. WONG YUEN: Okay, thank you. Chair Carr Smith and Members, thank you so much for allowing us to contribute this morning. My name is Chauncey Wong Yuen. Real quickly, I'm a Big Island boy, born in Hilo but raised in Kona. I graduated from Konawaena High School. I count on amongst my mentors, the original environmentalists that were here on this coast, folks like Alice Greenwell and, who took us up into the mountains, and[inaudible] Sutherland, my teachers. We are talking about John Wahinekapu, my scoutmaster, who taught us values of the scout law. So these lands on which this airport sits are near and dear to me. In fact, before this airport was an airport, I grew up in Kailua, having walked as a scout from Palani Road all the way to what now is the existing Honok6hau Harbor and `Ai`opio fishtrap where we can't[inaudible]. So I'm just saying all of this to let you know that, you know, we are not making decisions or, or looking at planning and development from a State-wide point of view. So as we are looking at this development—I've been here 50 years, all 50 years of it, I started working here at this airport in 1970. I was a kid then, 16 years old, working for my dad with the Gray Line corporation. I joined Hawaiian Airlines in 1973, Aloha Airlines in 1995, and I've been with the State of Hawaii since 2002. So, I've managed both airports in Hilo and in Kona. During the period, of course, we've seen, you know, much growth. And if it were not for the pandemic, we actually had this opportunity to reset and take a look at what we are going to do with facilities in particular. 7 EXHIBIT B Now, the - - - hotel has been something that has been in our development plans for some time now. First, I think Janice alluded to some of the concerns about it, and I certainly understand that. First off, the hotel will serve business travelers and transit passengers that we're starting to really see an increase in it, as the schedules peaked before the pandemic. We certainly have overnight flight crews. We do, almost all the carriers, all six of them that are at the airport, overnight flight crews. And those crews are traveling right now the distance between eight miles to Kailua town and up to 20 miles to Waikoloa to be housed and then get back to the airport. You know, Director Yee used in his presentation the word, "stranded." That, that I - - -because when people are stranded in Kona Airport, I mean I have a vision of people being left over when we had - - - in March of 2018, we had a lightning-strike storm here in Kona, and being in open-air environment, it's, we have no protection. Yet, there were no hotel rooms available for—and we've met numerous times with hotel association and others to establish, you know, accommodations during that kind of period, and it's almost as if nothing short of an emergency declared by our mayor would get them to offer, you know, ball rooms and the like in the absence of hotel rooms. A lot of times that we call, or the airlines have made arrangements to try and get hotel rooms, there were none. And so I- - -to the people—in fact, one night, I remember we had 464 people hold up in our airport in rain, in lightning, because there were no hotel rooms to get them to. Now, you might say that, you know, hey, you know, what about your airport? And it's true, you know, we really do need to get to the next development of, terminal development, which could allow us more enclosed facilities, but until that happens, hotels become imperative in a stranded situation. You know, hotel is nearly universal in almost all airports in the United States of our size, and even, even some smaller, universal around the world. I, I, one of my favorite airport hotels is one in New Zealand up, when I get off the airplane and go to the baggage claim, I just continue to walk off to the - - - hotel, and stay overnight until I get my ride down to Tauranga or the south areas in the next morning. So it's a convenience, and it's something that our travelers and others look forward to. The other thing is businesses that come you know, there is a concern over our strong reliance on tourism, but when businesses start to grow again, I mean, the airport is essential to accommodate those business travelers that need to get and establish new business, whether it's a return to agriculture or other business practices, you know, the hotel is going to factor in. And we are not in direct competition with the resort; it's not our intention to build a resort-type hotel here. We are talking about overnight accommodations of the kind that you would normally see at any, any airport in the United States. So, you know, a few weeks ago we met with the DLNR, you know; we were concerned about coastal accidents that had been happening, you know, and trying to see if we can limit that even further without, without, you know, encroaching on an existing shoreline access road. And so we are partnering with the DLNR to look at that. We were concerned that our coastline is home to what's been, you know, we work closely with the Marine Mammal Center, we just had a shipment, in fact, a few weeks ago of monk seals, you know. Nothing pleases me more as a native Hawaiian to see the return of the monk seal to what would be like ancestral home waters here. So, of course, and having spent night along the fishtrap at`Ai`opio and hiking from what was then Honok6hau to the airport at Kaloko and `O`oma and beyond, I mean, I'm quite familiar with the coastline, and we had scouted a lot of that before there was even transportation and roadways into this area. So we're quite 8 EXHIBIT B concerned. And also, we practice the habits that our kupuna taught us about malama `aina in caring. Those are - - -they are values that have been instilled in us. And, yes, we are here. We are not as vocal as some of the others in terms of environment, but we are still here, we are still here. So, with that being said, I'll take on some of the questions that I think- - - about Davis-Bacon. Davis-Bacon is paid on CARR SMITH: Chauncey, excuse me, if you don't mind, if we can, we are going to keep on going with our testimony, and then we'll follow back up with questions, if that's okay with you. WONG YUEN: Okay, very good, very good CARR SMITH: Okay. WONG YUEN: Chair, thank you. CARR SMITH: All right— WONG ightWONG YUEN: So, anyway, I think, I think that wraps it up CARR SMITH: Okay WONG YUEN: I'll wait for the questions down the road. Thank you so much. CARR SMITH: Okay, very good. I've been asked to go to Shannon Rudolph next. Perhaps, there is a timing issue as well. Shannon, are you there? RUDOLPH: - - - CARR - -CARR SMITH: Yes, Shannon, I need to swear you in. I don't believe you were on when I swore the others in. Is that correct? RUDOLPH: - - - CARR - -CARR SMITH: Can you unmute, please? Were you on when we swore in the testifiers? RUDOLPH: - - - CARR - -CARR SMITH: Can you unmute, please? Shannon, were you on when I swore in the other testifiers? RUDOLPH: Am I unmuted - - -? CARR SMITH: Yes, you are. Were you on when I swore in the other testifiers or not— RUDOLPH: otRUDOLPH: Yes. 9 EXHIBIT B CARR SMITH: You were? All right RUDOLPH: Yes. CARR SMITH: very good. Can you proceed, please, with your testimony? Try to keep it to three minutes, if can,please. RUDOLPH: Yes - - -you deny CARR SMITH: Please state your - - - state RUDOLPH: —okay for a - - - oh - - - CARR - -CARR SMITH: Go ahead. RUDOLPH: Okay - - - deny this - - - or this okay. People in Kona fought hard and long for this conservation land that's surrounding the airport. Anyone get stranded - - -the closest hotels are ten minutes away; that's not that much inconvenience. - - -was built- - -before the corona- - - did was hardly add any guests at all. It- - - empty, and that's when we had tourists and no virus. I'm conce- - -that area. I know the National Park has been worried about it, too. They try to do a water management- - -. I just don't see any benefit from having a hotel at the airport. We have so little public land around Kona for people to go to. It's, it's just not a good idea. And I hope that you don't approve this, when people can drive ten minutes into town - - -. Thank you. CARR SMITH: Very good, thank you, Shannon, thank you. - - -yourself now,please. All right. Can we please go back to Mr. Bisgard? Could you please state your name and tell us your position here? BISGARD: Yes, good afternoon. My name is Craig Bisgard. I'm in a room with Chauncey here. I'm the property manager for the Kona Airport. And I'm mostly here to listen and support Chauncey. But my job would come in after the fact; when we start looking for potential lessees that want to come in and do this development, I'll be there to kind of walk through the process. Yeah, so, today I'm just here with Chauncey to answer questions, if I can, when the time comes. Thank you. CARR SMITH: Very good, thank you. Mr. Mason, thank you for waiting patiently. Would you like to go ahead with your testimony? MASON: Sure. CARR SMITH: Thank you. MASON: I guess, you know, I actually turned in testimony in the, when the Windward CARR SMITH: Let us, tell us who you are and what your j ob is as it relates to all this, if can. 10 EXHIBIT B MASON: My English name is Melvin Mason, Jr. `O wau `o ko`u inoa H5'M5kua Ke`e'aimoku. I was born and raised in Hamakua up in Honoka`a, also raised in Waipi`o Valley, Valley of the Kings, very sacred and very beautiful place. It's a, you know, it's a blessing, you know, to actually come from there. And just because of the culture and how in that I actually grew up in it where with my kupuna, you know, being able to teach and to exert not just with farming kalo but with the culture and traditions and values and also ma ka `olelo Hawaii, with in our `olelo Hawaii, you know, the older language that I've learned, that I grew up with. And, you know, the things for me is that I understand culture and traditions and values and the `aina, the wai, ulu wai, and I've seen often, you know, if many—and I do respect, you know, other people's testimony even against it. But I am the, I am actually the CEO of Keahole Hotel and Suites LLC. I was the one who actually propositioned and proposed this to be built. A real kanaka, not a foreigner coming from America or Japan or China. I'm Hawaiian. And the reason why I did it is because I saw an opportunity. And I saw the opportunity that, in the respect with `aina, I'm very much—my father is actually buried in Mauna Kea with six other kings who was on my ancestry. And the things for me with this is, you know, this testimony, which I greatly appreciate, you know, Madam Chair and Commissioners, and for me, it's a very interesting concept because it is very cultural. And when I approached this idea and came through envision, and I had met Chauncey, you know—honestly, I went through a lot of hoops and a lot of, a lot of red tape, black tape, purple tape, blue tape, white tape, everything that had, even with Ethics Board, and I was actually one of the main guys who started to develop and direct this process but she attracted and brought some of those allies. And, actually, it also created the development. I'm the former CEO and president of Keahole FBO I LLC, which is actually the big development with the FBO at the end. And, for me, the hotel, it's a very cultural-base buildout. There is a requirement to actually building this place, ana ma ka `olelo Hawaii, you have to actually speak, able to speak Hawaiian, read Hawaiian and write in Hawaiian. I wrote a curriculum actually in, in Hawaiian; it went tourism, hospitality, customer service. And I actually, he's implementing into a CTE department, the DOE. I've already, I'm also the CEO of Kalea Goal [phonetic], it's a drone education company, and we are the first guys in history that actually put Hawaiian language in training with technology. And we are contracted actually various schools that we do this already. My all hopes is this, you know, everybody is always making the excuse that, you know, our kids are leaving; I'm building this for kids to stay. This is an opportunity and place to actually be able to make this happen, because the way this design, you know, talked about water, I can answer that; actually, I have a commitment and agreement to,with NELHA, to run on the ocean, the oceanwater. I'm also a former, consulted also Koyo USA, brought investment money to develop the bottled water company called MaHaLo Water. And the thing for me with this development, being from where I'm at, is that I saw the need and the want, and because people were talking about, you know, the money and it's running out and CAFRs this and that; well, I'm the only guy who actually offered, even in the beginning when I met Chauncey, for five acres I was willing to pay eight million dollars for 35-year use of land. And the part that really comes down to this land is that I compare myself to the DOD; Perl Harbor, a thousand acres,people like talk about environment, go look at the USS Arizona, leaking fuels stay up today, and nobody doing nothing. Yet a thousand acres paying one dollar. Well, the offers that I put on the table is because, why I push this is because my pressing against even government are stopping to raising taxes on the people. Enough. This is an opportunity because of the taxes they are taking away from the county level, from the tourism tax. For me, it's a lease, there is a lease, going to be paying rent, and even in proposition negotiations, there'll be a percentage of earnings. My whole thing is that it's not just helping myself as a 11 EXHIBIT B businessman, because culturally I can prove a lot of things, and the thing that—you know what, I can even take people to a moot position. And the characterization this need is the support, because you people want to talk environment, we're going to lessen the traffic out of the airport by keeping the workforce of the airline industry in the hotel that we are building there, so they are not going to come out on Queen Ka`ahumanu Highway. You know, I was at many of the meetings, `O`oma and everything, even with the federal government, the National Parks. So, I think you know, I'm trying to keep it three minutes, and I think probably over already but the proposition for me is it's very Hawaiian-based. It's going to be mostly green, actually, hotel in all of Hawaii, because we are putting a SWAC system in there, it's seawater air conditioning, and we're desalinating the water that's going to come through, and we are also putting solar. So, and, part of which people want to add on, well, everybody using the airport now, everybody forgot about what Governor Burns had done; the P5'aiea was taken away, a very cultural site, a very big cultural site, the lua training grounds, that was taken away. But instead of me for come here as a kanaka and Hawaiian to - - - in my face - - - enough to fight or hand out my - - -plan. And part of the plan is, even when I mentioned this in, you know, the Windward meeting was that- - - area, I'm actually bringing back and developing the P5'aiea like it once was, and bringing that site to where the `aina is supposed to be. Like everybody changing the names, but people don't realize the names of the places are characterized through spirit, the mind, art, and the body to ensure alignment of everything above and below. So the way we are building even this hotel that I offered to propose to the State government. I was also helping them to create funding. And I don't know about he's trying to do that to even help the government to make money, because I know it's keep on going up and up, and our land tax is going up. I do know, you know, District 7, 8 and 9, you know, paying the high, it was 70 percent of the income of the County. So the heaviness, the burdens upon this situation is that, for me, is, why building to offer this, is to lessen the burden of the tax payers, the people to keep on paying tax when we cannot develop on public trust lands, which we all know for fact is all crown lands. I'm not here about that argument. Especially, if I put my mo`o ku`auhau down, my genealogy, I'm not here for that argument. So the thing for me is a support, and asking for a support is very cultural, because this, this whole thing came down from a pule and, and the needs of our keiki that- - - learn an education because it's a very educational way that I'm actually designing, even with the workforce, where other hotels can actuallybecause one thing why I even want to come to this and come to public with this is because I've often experiencedI went around the world twice. I graduated from Honoka`a School. I don't have no university college degree, but I have experience in business, corporate business. And the thing is that here with government—and, honestly, I had easier business in dealings with, you know, doing communist, business in communist country and China, Japan, and Sweden, even in America, in the States, and, here, it's more, been, honestly, the most difficult, it's been - - -works for since 2006, and making sure that everything is pono. So, conservation-wise, yeah, I do understand, you know, I do know. And that's why it is delicate, the way we chose the certain areas of the `aina in that areas was way could go, and way will go. So, for me, it's, you know, I'm, I'm open to a lot of questions and, but yet, you know, I'm willing to actually put things in perspective, because, you know,people are too general. And I do understand about `O`oma. I actually been at the, the caves. I know a lot of the burial sites. So there's a lot of things that people wasn't there for for a lot of different areas and things. So, you know, even Kohanaiki, you know, plenty other places. So, my, my thing is the support for this is, helping the DOT, and honestly, you know, fulfilling things that have been envisioned years ago, but doing it in a pono way. 12 EXHIBIT B CARR SMITH: Okay, thank you so much. I was asked to mention Shannon Rudolph failed to mention that she's been a resident of Kona for over 40 years, so she wanted to make sure that you folks were aware of that, so that's on the record now. All right, Commissioners thank you all for your testimonyCommissioners, do you have any questions for the testifiers? Mr. Van Pernis. VAN PERNIS: Thank you. I have the same question I had for staff, of Mr. Wong Yuen and Mr. Bisgard. Doesn't this limit accessory uses on public land? And if so, what is the arrangement for private use of public lands? WONG YUEN: So—Mr. Van Pernis, thank you—the arrangement, if I got your question correctly, it's arrangement for private use of public land, okay, so the disposition would be through a long-term lease. We would want that all interested parties, so it's not, it would be, would be able to present to us a request for proposal, an RFP, that we would respond to and evaluate on a case-by-case basis. That would be the vehicle by which the State would issue a lease and collect rents due us. I hope that answers your question. If not, I can listen in and provide more information as I can. CARR SMITH: Mr. Van Pernis, does that answer your question? VAN PERNIS: Not totally. Is compensation paid to the State or some entity,public entity, for the private use of public land? WONG YUEN: Yes, the compensation is through rent fee to the State. CARR SMITH: Mark? WONG YUEN: Okay, and there, now, initially, okay, here is another answer I can, maybe I'll ask Craig to chime in on particulars there, but, also, in certain leases, there are certain minimum annual guarantees, their targets that are contained in these leases. So you might have a VAN PERNIS: Does that include compensation? WONG YUEN: —group compensation, you said? VAN PERNIS: The, is compensation included in the guarantees? WONG YUEN: Okay, so, in, in addition—okay, let me, let me just say it this way, and then I'll try to zero in on what you are asking me better, but, we get a flat land lease straightforward agreed-upon rate for the lease of the land. Then the business itself based on its income on an annualized basis, we get, we can structure it so that we get a percentage of that. Then there are other, there could be other fees or, or, that are applicable in the lease. And I'm not, you know, too familiar; maybe if Craig can comment on that, I'll have him do that. But I don't know if that answered, you are saying, you know, I'm not sure if I answered your question. VAN PERNIS: Paid to the State as part of private use of public land at the airport. Money paid. 13 EXHIBIT B BISGARD: Yes, are you asking, is the money paid to the State for the use of public land? I think the answer is yes. VAN PERNIS: Is money paid to the State on every occasion of private use of public land? Well, by "every occasion" mean, whatever entity uses the public land pays money to the State? MASON: I can say, I can say yes—if you don't mind, Craig CARR SMITH: Mr. Mason. MASON: Yes. If you don't mind CARR SMITH: Okay. MASON: I can say, the reason why is because I was one of the main guys that have been in stages. I actually had offered. When we went to create the lease and stuff and the development of the direct this process, there were other companies that are actually there, Signature Corporation—and this has to do with Keahole FBO I LLC—and I was the only guy who offered eight million at first. And the thing was that nobody was actually offering much of anything but a dollar, or actually revocable permits was only paying like only a couple of hundred dollars a month. So the thing that came, what came through with the Keahole FBO I in the process that actually got created, started through the DLNR Ethics Board, everybody, and I was the one that's getting pretty much nailed by everybody, but, including, you know, Legislation, Governor's Office, the Finance Department, I actually took myself through in the competition of beginning stage in 2015. When we put our application in for property, they are in the south end, there were, there were about twelve other applicants. We were the only local guys who was there,pretty much me; everybody else was like literally only looking for themselves in development and not the industry itself and the support of education and the local, the local government. So the thing that came out, there's actually, the lease that is in that you can, you know, people can get information to is technically at that time, I think, was Signature Corporation and Air Service Hawaii was paying about I think 40, about 40,000 when started, you know, for this 40,000 annual rate. We actually came in in the beginning annual rate, was about 500, or 474,000, 39744. So, yes, money actually, it goes, the lease and the money goes to the State, and it increases annually, and it goes all into the term and extent to the lease itself. CARR SMITH: Okay, thank you, Mr. Mason. Anybody else have questions? YATES: I do. CARR SMITH: Faye, go ahead. YATES: You mentioned something about the—Mr. Mason—taxes that are collected that would help us. Now, I don't know who the "us" is. I'm just wondering about it. The airports comes under the State, correct? MASON: Yes. 14 EXHIBIT B YATES: Under Department, I mean, you know, State of Hawaii. MASON: But the County YATES: Now MASON: —collects— YATES: now, if we are looking at doing hotels and, but when it comes under primary airports, that's when you can build other things at the airport? Is that, how is it governed, as well as taxes? When you say it's going to help us with taxes, I don't know how that happens MASON: Property YATES: this island MASON: property YATES: —goes to the State, so I'm not understanding how taxes are going to help us as a county. So I'm just wondering, you know, there seems to be a lot of different things like who's going to determine, who's going to take care, what airport comes in there, how many airports come there, you know, those kinds of things. And, for yourself and for Mr. Wong Yuen, do you folks currently work for the State? Are you, you have an entity that you folks are, come under that, you know, where people can have questions answered? Or is it just yourself CARR SMITH: Go ahead, Mr. Mason YATES: want to know like who are you guys,where do you folks come, where are you coming from? MASON: The County makes property taxes, right? And that's the thing that the County collects and that's where they make their money. So, you know, any, any development that goes on, even in public trust lands, you know, the County actually does collect property taxes. Therefore, the lease that that is actually made with the State government, which is, you know, the DOT at this time, is, that goes to either the CAFR or it goes to the general fund, all depends on how the lease was actually stated. So the things for me is that the creation even of the jobs is most important, because I'm actually willing to pay higher than any other hotel. And, because I know the numbers. And the part for me, being a local boy from here, it's an entity; I come from a corporate entity. I created the entity. I guess Chauncey them can speak for themselves, but they do actually work for the government, State government at the airport. YATES: I- - - like when you say taxesI know that, you know, everybody has to pay taxes. County, transient taxes, are you saying taxes on these people will come in, build a hotel, so on top of them paying rent or, you know, lease, rent, whatever it is, taxes on top of that then goes to the County? But if it's State land, doesn't the State also get monies for that, too? 15 EXHIBIT B WONG YUEN: Yes, that's correct— MASON: orrectMASON: Yes, both sides. YATES: And then the State will turn around and take our money because they don't have enough. So then how does that help us as a county? MASON: Well, for, out of my experience in this,what actually on County is, is the business is local. If you really want to talk about the GDP of Hawaii, actually No. 1 GDP of Hawaii is military, not—and I've been saying for years—not tourism. But tourism in Hawaii—because I actually brought in 2014, 3,028 tourists myself out of the Japan, with two other guys that work with me. And the part of the opportunity of the cultural basis in respect for the land and money is that I actually offered about five million dollars just for that site. And the thing that that comes for the investments and stuff is that we're, I, I am a local domestic company in Hawaii, local boy, Hawaiian. I'm not an international business. So that's the thing; if the money, the property, County gets their part, the lease, the State gets their part, no matter if it's the department[inaudible]. WONG YUEN: Commissioner Yates CARR SMITH: Mr. Wong Yuen, did you have anything to add? WONG YUEN: Yeah, thank you, Chair. What I'd like to add, so, for Commissioner Yate's understanding, is that, you know, No. 1, this is private development, so there is no County funds being expended to build this project, or to build any project, it would not be, that's, that's what we are asking, it will be private development. The State has ownership, or stewardship, over these lands at the airport, and we would be leasing these for the benefit of the people actually, because the money does come back to the State CAFR, the State treasury. So there is no money being expended by us. And by way of relationship, you know, Melvin and I have been friends, but, you know, he is a distinct company, I am a government employee. He is one of many that would be likely, likely submit to an RFP; it will be out there for all entities to bid on, including the Kohala Coast resorts, all of them. Anybody would be able to do this, so it's not limited to him. So I just want to make that distinction and clear. If there are any other questions about that—and I'm sorry, Commissioner Van Pernis, if we've not, you know, understood, and forgive me for that, we'll try to answer your question as best as we can. CARR SMITH: Mr. Vitousek. VITOUSEK: Yeah, thank you. I feel like we are getting way ahead of ourselves on this, and, we were, as if we were reviewing the construction of a hotel, which we are not. This, this area is within the Special Management Area. It's also State land. So in the event that a hotel is going to be applying to be built at this area, it would require a Special Management Area Permit that the Commission will have to review in order to take into account the effects of the project. It will also trigger Hawaii Revised Statutes Chapter 343, which will require the preparation of an environmental assessment that will take into account the effects of the proposed hotel. All of this will have to be reviewed in the event that a hotel is built at this airport. I think right now we are looking at a zoning change that brings the current uses of the airport in line with the permitted use of 16 EXHIBIT B the zoning, and eventually may lead to a hotel, if the proper environmental review and permitting review is completed upon review of the specifics of that project. I think this discussion about the hotel is great, but it's getting way ahead of what we are doing here today. CARR SMITH: Agreed. Any other comments from Commissioners? KEALOHA: I will echo the same sentiment. CARR SMITH: As would L Anyone else? Yeah, this is not a project that we are looking at here, so. All right, if there are no further questions for testifiers, Director Yee, did you have anything to add? YEE: - - - Sorry, no questions. I'll wait for you to close public testimony, then CARR SMITH: Okay YEE: comment. CARR SMITH: very good, okay. I want to put on the record that we had several written testimony submitted. We heard from the folks here, and in addition to that, we had Laura Johnson, Megan Leatherman, Mark Koppel, David Kimo Frankel, Donna Grabow, Jack Zimmerman, Simmy McMichael, and Dana Melina Keawe; they were all in opposition of this. With that, with putting that on the record, I'd like the motion to close public testimony, please. KEALOHA: So move. CARR SMITH: Was that Perry? Okay, and I've got two twos. I saw Max first, so NEWBERG: I've just got a brief question, if I may, Chair. CARR SMITH: Oh, okay, go ahead, Max. NEWBERG: I'm not getting ahead of ourselves. I do appreciate those comments - - -. Simply out of curiosity, Mr. Mason, are you a developer by chance or that's my only question out of curiosity. Thank you. MASON: Am Ion? CARR SMITH: Go ahead, Mr. Mason. MASON: Yes, I'm going to be developing this. CARR SMITH: All right, very good. Let's go back to the motion. Mr. Kealoha made a motion to close public testimony and NEWBERG: Second. 17 EXHIBIT B CARR SMITH: Mr. Newberg has a second. All in favor? Aye? Anybody opposed? No. Okay, public testimony is closed. Testifiers, thank you for your statements. The Commissioners will now proceed to deliberation, so you are welcome to log off of WebEx and switch to the YouTube channel, if you'd like to continue observing the hearing. Thank you all very much for being here. [All testifiers logged off.] Director Yee, did you have a comment at this point? YEE: Yes, I thought it would be helpful for you to know that when I first started in this position in 2017, I had a meeting quite soon after with Chauncey and the Airports to start discussing the implementation of the master plan. And, certainly, hotel was one of the primary things on the table that they were looking at and wanting to initiate. But I wanted us to understand that they have a master plan. It was adopted. We were part of the collaboration that has to occur to implement the master plan, and bringing this forward was one way to help with the implementation of that master plan. You know, I'm a, you know, we are Planning, right, I'm a planner, so, you know, trying to effectuate it is, and trying to remove unnecessary barriers is part of my job. But, also, I think part of the concern from community would be around checks and balances. And, and Mike Vitousek talked about the SMA—in fact, Mike, you should throw your name in with the next mayor for planning director—but, he covered it. There are, we made sure that, the Airports had asked that not to go through Plan Approval, and we didn't agree with that. So we are, there is an ability for us to really review what's coming to us to assure that it's an accessory and, let's say for instance, it's not a resort; not to going to allow like resort pools to attract that kind of clientele. So I feel as if there is checks and balances to ensure that there, that it is proper development that's happening around the airport. Thank you. CARR SMITH: Thank you very much. All right,with that, I'll entertain a motion for action on this item. NEWBERG: Chair? CARR SMITH: Yes, Mr. Newberg. NEWBERG: I'd like to move that a favorable recommendation be forwarded to the County Council for the Planning Director initiated ordinance amending Chapter 12[sic], Zoning Code, Articles 1 and 5 of the Hawaii County Code, relating to primary airports based on the Planning Director's recommendation, which shall be adopted. CARR SMITH: Very good, thank you. VITOUSEK: I'll second that. CARR SMITH: Mr. Vitousek? That was a second by Mr. Vitousek Very good. Staff, could you take a roll call vote,please? VITOUSEK: Actually, one 18 EXHIBIT B CARR SMITH: I- - - any other discussion VITOUSEK: just want to add. CARR SMITH: Yeah, go ahead. VITOUSEK: on discussion. CARR SMITH: Yeah. VITOUSEK: You know, I just, I just want to point out, you know, that a lot of this is done in order to make existing uses, I guess, permitted and allowable under the zoning. And I feel like a lot of times when we are here at the Planning Commission, people who are doing things that are outside of the Zoning Code and all that is often times held against them, and I just think that, you know, the approach that we are taking here of trying to bring everything into compliance and making sure the zoning works to continue the uses that are existing and unharmful are good approach to take. CARR SMITH: Thank you. Any other discussion? Go ahead, Max. NEWBERG: Yeah, I add to that as well just briefly. I see this is a way forward to bring Kona into this—I'll be optimistic and say post-COVID world of where we are trying to reach out and be more well-established. I think the airport at this time is on that wave, and I can see a lot of advantages coming through this initiation. But my only concern is that the first thing anyone would see of Kona, should it be their first time, is this airport area, and to protect that with well-vetted projects that will profit the community. I know this isn't something that we can handle at this level, but I would like to see that area itself pertaining to development remain under Davis-Bacon Law to assure that the contractors are bidding in an effort to build quality products that will benefit all of the folks here for time to come. Thank you. CARR SMITH: Very good, thank you. Any other discussion? All right, seeing none, Alex, could we have a roll call vote, please? ROY: Commissioner Newberg? NEWBERG: Aye. ROY: Commissioner Vitousek? VITOUSEK: Aye. ROY: Commissioner Kealoha? KEALOHA: Aye. ROY: Commissioner Van Pernis? 19 EXHIBIT B VAN PERNIS: Aye. ROY: Commissioner Yates? YATES: Aye. ROY: And Chair Carr Smith? CARR SMITH: Aye. ROY: The Planning Department initiated passes, six-zero. CARR SMITH: Thank you very much. Appreciate you guys' work on this. The hearing was adjourned at 12:43 p.m. Respectfully submitted, Noriko Sauer, Secretary Leeward Planning Commission 20 EXHIBIT B