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HomeMy WebLinkAbout2021-11-18 Leeward Exh B (Public Testimony re Items 3 thru 8) LEEWARD PLANNING COMMISSION COUNTY OF HAWAII TESTIMONY TRANSCRIPT NOVEMBER 18, 2021 Public testimony regarding the applications of WAIKOLOA LAND COMPANY (AMEND SMA 25, PL-SMA-2021-000004, PL-REZ-2021-000005, PL-SMA-2021-000002, PL-SMA- 2021-000003, and PL-REZ-2021-000004)was called to order at 10:04 a.m. via live stream online meeting, with Chairman Michael Vitousek presiding. COMMISSIONERS PRESENT: Michael Vitousek, Shani Armbruster, Barbara DeFranco, Mahina Paishon-Duarte, and Faith "Faye" Yates ABSENT AND EXCUSED: Clement"CJ" Kanuha III ALSO IN ATTENDANCE: Dalilah Schlueter, Esq. (Counsel for the Commission), Jean Campbell, Esq. (Counsel for the Planning Department), Zendo Kern (Planning Director), Maija Jackson (Planning Program Manager), Christian Kay (Planner), Jessica Andrews (Planner), Tracie-Lee Camero (Planner), Eric Cook (Planner), and Noriko Sauer(Commission Secretary) APPLICANT: WAIKOLOA LAND COMPANY (AMEND SMA 25) Request to amend Special Management Area Use Permit No. 25 to withdraw three (3)non- contiguous land areas identified as "Area A", "Area B", and "Area C" comprising the proposed Kumu Hou at Waikoloa project totaling approximately 182.9 acres from the land area covered under SMA 25, which allowed the development of the Waikoloa Beach Resort complex. The properties are located between the 75- and 76- mile markers on Queen Ka`ahumanu Highway and west(makai) of the highway to the King's Highway Foot Trail, `Anaeho`omalu and Waikoloa, South Kohala, Hawaii, TMKs: (3) 6-9-008:013 (por.), 021, 022, 025, 027 (por.), 028 (por.), 029 (por.), 031 (por.), and 033. APPLICANT: WAIKOLOA LAND COMPANY (PL-SMA-2021-000004) Application for a Special Management Area Use Permit to allow the development of 900 multi- family timeshare units, community support facilities, golf support facilities,public parks and paths and related improvements within approximately 133.8 acres of land identified as "Area B" and to allow the development of a new brackish water irrigation source and distribution system to support the landscape irrigation needs of the project within 3.1 acres of land identified as "Area C" of the proposed Kumu Hou at Waikoloa project situated within the Special Management Area. The properties are located between the 75- and 76- mile markers on Queen Ka`ahumanu Highway and west(makai) of the highway to the King's Highway Foot Trail, `Anaeho`omalu and Waikoloa, South Kohala, Hawaii, TMKs: (3) 6-9-008:013 (por.), 022, 025, 028 (por.), 029 (por.), and 033. 1 EXHIBIT B APPLICANT: WAIKOLOA LAND COMPANY (PL-REZ-2021-000005) Application for a Change of Zone from an Open, Multiple-Family Residential-4,000 square feet (RM-4), Multiple-Family Residential-6,000 square feet(RM-6), Multiple-Family Residential- 8,000 square feet(RM-8) and Village Commercial-10,000 square feet(CV-10) zoning districts to a Project District zoning district for 133.822 acres of land identified as "Area B" of the proposed Kumu Hou at Waikoloa project. The properties are located between the 75- and 76-mile markers on Queen Ka`ahumanu Highway and west(makai) of the highway to the King's Highway Foot Trail, `Anaeho`omalu and Waikoloa, South Kohala, Hawaii, TMKs: (3) 6-9-008:013 (por.), 022, 025, 029 (por.), and 033. APPLICANT: WAIKOLOA LAND COMPANY (PL-SMA-2021-000002) Application for a Special Management Area Use Permit for to allow the development of 264 multi-family timeshare units and related improvements within an approximately 38.6-acre portion of"Area A" of the proposed Kumu Hou at Waikoloa project situated within the Special Management Area. The properties are located between the 75- and 76- mile markers on Queen Ka`ahumanu Highway and west(makai) of the highway to the King's Highway Foot Trail, `Anaeho`omalu and Waikoloa, South Kohala, Hawaii, TMKs: (3) 6-9-008:021, 027 (por.), 028 (por.), and 031 (por.). APPLICANT: WAIKOLOA LAND COMPANY (PL-SMA-2021-000003) Application for a Special Management Area Use Permit for to allow the development of 25 single-family residential lots and related infrastructure within a portion of land within an approximately 7.3-acre portion of"Area A" of the Kumu Hou at Waikoloa project situated within the Special Management Area. The properties are located between the 75- and 76- mile markers on Queen Ka`ahumanu Highway and west(makai) of the highway to the King's Highway Foot Trail, `Anaeho`omalu and Waikoloa, South Kohala, Hawaii, TMKs: (3) 6-9- 008:021 and 028 (por.). APPLICANT: WAIKOLOA LAND COMPANY (PL-REZ-2021-000004) Application for a Change of Zone from an Open and Multiple-Family Residential 8,000 square feet(RM-8) zoning districts to Multiple-Family Residential 6,000 square feet(RM-6) and Single-Family Residential-10,000 square feet(RS-10) zoning districts for 45.932 acres of land identified as "Area A" of the proposed Kumu Hou at Waikoloa project. The properties are located between the 75- and 76- mile markers on Queen Ka`ahumanu Highway and west(makai) of the highway to the King's Highway Foot Trail, `Anaeho`omalu and Waikoloa, South Kohala, Hawaii, TMKs: (3) 6-9-008:021, 027 (por.), 028 (por.), and 031 (por.). Secretary's Note: "- - -" indicates indiscernible speech due to internet/technical difficulties or simultaneous talk. VITOUSEK: Moving on to the next agenda item Waikoloa Land SMA's and Rezone's. The first testifier we have is Nathaniel Kinney. Is Eric from the Planning Department are you keeping track of the time? JACKSON: Chair, Eric is keeping track, but the bell is really quiet. So, we are trying to work on to make it louder. 2 EXHIBIT B VITOUSEK: Okay, I'd love it if we could let the testifiers know when we are approaching that 2 �/z minute mark. JACKSON: Yep, we sure will. VITOUSEK: Sorry, did you have any questions for any of the testifiers so far? YATES: Mike, are you addressing me? VITOUSEK: Yes, I saw you had your hand up. YATES: Yes, excuse me. I'm trying to look for I guess the application regarding what we're talking about. Was this in the previous memo that we got? Because I kind of sort of want to know what they are asking for. I mean I understand what we're talking about but, I was looking through my papers here to see what the application is. VITOUSEK: I think there'll be a presentation from the applicant when the agenda item comes forward. YATES: Okay, okay, all right, thank you. VITOUSEK: You bet. Continuing on with the public testimony. Nathaniel Kinney are you available? KINNEY: Yes, I am here Chair. VITOUSEK: Okay. KINNEY: Members of the Commission, the Hawaii Regional Council of Carpentry would like to offer their strong support for the Kumu Hou at Waikoloa. Kumu Hou is committed to using union labor throughout the projects development and that's going to support hundreds of local laborers and their families showcasing a deep commitment to Hawaii Island. Kumu Hou is good for Hawaii Island and our community. Time shares are resilient and stable, and these are the qualities that we need to get out of this downturn from the pandemics partial effect on us. Timeshares are generally the first to return to operation and draws higher occupancy then hotels and because timeshare owners return more often as hotel guests, they also tend to have a greater appreciation and respect for our community. They spend more while they're here and, most importantly, timeshare visitors do not encroach into community spaces, unlike vacation rentals. Simply put timeshare visitors are some of our State's most reliable and highest spending guests. We believe we need the economic boost that Kumu Hou at Waikoloa will provide. The project is a substantial investment at Waikoloa and is another example of thoughtful stewardship by the Waikoloa Land Company, which has a track record of responsible development on the island and I just wanted to thank you for your consideration. Mahalo. 3 EXHIBIT B VITOUSEK: Thank you very much, next up, we have Shane Nobriga. NOBRIGA: Thanks, Commissioner. My name is Shane Nobriga. I am the golf course Superintendent for Waikoloa Beach Resort. I'm a strong supporter of the Kumu Hou project. I'm very excited to hear the project plans of building workforce affordable rental housing for the kama`aina. For the past twenty-two (22)years I've been commuting to Waikoloa Beach Resort from the Puna district and also Laupahoehoe. Many of the better paying jobs are on the west side of the island, so many of us make that long drive. We drive from a total of 2 hours to a four (4) hour round trip. This daily distance travel is very taxing on my body and my vehicles and the long dark driving sometimes in bad weather could be dangerous. But this is a typical week for all of us that make this commute. I find myself barely keeping up with home chores and often falling asleep during our family time. Fortunately, I had no luck finding reasonable paying work on the east side of the island. For this reason, I'm a firm supporter of this project knowing there will be opportunity for people like me to live moments from work. Doing so creates healthier family relationships in decreasing the physical and financial strain from driving across the island to get to work as many people still do today. Thank you so much for considering in allowing this project to help provide a better quality of life for the working community. Mahalo for your time. VITOUSEK: Thank you very much we appreciate it. Next up is Stephanie Donoho. DONOHO: Aloha Commissioners, first, I just want to say thank you all for your service and I'm Stephanie Donoho and I'm with the Kohala Coast Resort Association (KCRA). Prior to my tenure with KCRA I worked for the County of Hawaii and the Department of Research and Development. So, I want to thank the staff members from the Planning Department and Corporation Counsel, who are on. But also have served as a Volunteer Commission Member for the Real Property Tax Working Group, so I understand the time and commitment that you're putting forward in this. And I just want to thank all of you for taking the time to thoroughly review and vet these discussion items for our community it's so important. You have my written testimony, and I will try not to be duplicative in what I'm saying, but I want to share with you this is the first time that the Kohala Coast Resort Association is commenting on a project that is taking place within our resorts. We don't typically try to weigh in on those projects we like to give the community their opportunity to weigh in. But I have to say, the affordable housing component of this Kumu Hou Project at Waikoloa Land Company. This is the first time I have seen a resort development offer affordable housing rental units within the footprint of the resort, and it goes above and beyond their commitment for their development. This is in addition to the commitment for their development, this is no less than an additional hundred and forty-two (142)rental units for kama`aina. I'd like to clear up a myth, I've seen some commentary in social media and public media that this is just building for people who work within the resorts. There is no priority given to people who work within the resorts, this is a kama`aina housing projects, so it may be that there are schoolteachers who are living in these houses, because it's based on income levels. So, I just want to be clear that it is not a self-serving thing. It is looking at private industries stepping up 4 EXHIBIT B and recognizing that we have a role to play in building more affordable housing. I serve on the Vibrant Hawaii Housing Coalition and there are a number of non-profit agencies and Community Associations that are constantly trying to address our islands affordable housing needs. I'm so impressed that Waikoloa Land is doing this and that they're doing it in the first phase of their development. In terms of the timeshare components and all of that, I will let the Commission make their decision. Thank you, I have one minute to summarize based on the bell. Is that correct? VITOUSEK: Thirty (30) seconds. DONOHO: 30 seconds. So, in terms of accountability, we pay seventy-three (73) million dollars in property taxes to the County of Hawaii each year and pay nearly sixty (60) million in transient accommodations taxes and twenty-five (25) million in general excise taxes. We believe this project will be a very good addition to Waikoloa Land. Thank you for the opportunity to testify. VITOUSEK: Thank you very much we appreciate your time. Next, we have Bobby Brown. BROWN: Aloha everybody, my name is Bobby Brown, can you hear me? VITOUSEK: Yes. BROWN: Okay great. I am a union carpenter here in Kona coming before you to testify for Kumu Hou at Waikoloa. Also, standing with me today I have written testimony from a hundred and forty-six (146) of my brothers and sisters. They're out there working to put some food on the table today, so they couldn't be here. But I wanted to make mention of their written testimony I think everyone has it. I've been a carpenter here and a member of the Carpenters Union for over thirty-seven (37) years. I'm very familiar with the Waikoloa Land Company and the work that they do. I worked on many of their projects, they put a lot of food on my table, and I appreciate them. And here's our testimony that we're giving today,we strongly support plans for Kumu Hou at Waikoloa. For over forty (40) years the Waikoloa Land Company has been a thoughtful steward of the area, investing in and supporting the community and surrounding businesses. Kumu Hou is committed to using union labor throughout the projects development supporting hundreds of local laborers and our families and showcasing a deep commitment to Hawaii island. Upon completion Kumu Hou will generate much needed jobs and housing for our local residents. The project will create economic momentum and an investment in our communities when we need it the most. Kumu Hou will generate an additional foot traffic for the surrounding businesses providing a steady stream of consumers who can ensure businesses, especially those who've been impacted by the decline of tourism, because of the pandemic. We want those businesses to have a chance to survive and thrive and this project will help do that. Kumu Hou is a smart, thoughtful development that will attract substantial new investment for the State and County of Hawaii. Through Kumu Hou, the Waikoloa Land Company is taking every opportunity to support Hawaii island residents and create a bright future for the Kohala 5 EXHIBIT B Coast. Supporting Kumu Hou is an investment in Waikoloa in the future of our Hawaii island community and we strongly support it and thank you for your time. VITOUSEK: Thank you very much. Next up we have Michael Cadaoas. Michael are you there? CADAOAS: Good morning, can you hear me? VITOUSEK: Yes, thank you. CADAOAS: Alright. Good morning, commissioners, my name is Michael Cadaoas, thank you for allowing me to testify in today's hearing. I am a thirty (30)plus years and a member of the Hawaii Regional Council of Carpenters, also known as the Hawaii Carpenters Union. I strongly support Waikoloa Land Company and their plans for the Kumu Hou at Waikoloa project. This project will employ hundreds of people during the construction phase and after its completion. Maintenance requires a lot of work which will create a lot of needed jobs. Waikoloa Land Company strides on enhancing the natural environment through years of quality planning. Their dedication and history speak for itself. Definitely the Waikoloa Land Company has been a positive benefit to us all and the `aina. On behalf of over a hundred(100) of my brothers and sisters of the Hawaii Carpenters Union from every corner of the Big Island, who all petition to support Kumu Hou and the Waikoloa Land Company. Thank you very much. VITOUSEK: Thank you very much for your time we appreciate it. Next, we have Ross Birch. BIRCH: Aloha, Director Kern, and members of the Commission, I appreciate the opportunity to provide testimony in support of the Waikoloa Land Company Kumu Hou project. I provided written testimony as well, and much like the others, previous and Stephanie I'm not going to reiterate and reread a lot of that testimony that was provided. Included there were some statistics on the timeshare visitor and their impact to the island and to the economy. As well as the inventory of timeshare properties as it is related to other properties within the island in a favorable way. I just want to reiterate some things and go through as far as looking at this project. It is the exact example of what we're looking for future development from the tourism industry. It's using a smaller footprint than it had originally put on its plans. The workforce housing is phenomenal, and it also includes a non-profit contribution through its directives. The timeshare visitor and this project will attract, engage, and educate the responsible traveler. We're really looking forward to the opportunity for this project to go forward and it has my full support from the Island of Hawaii Visitor Bureau. Mahalo. VITOUSEK: Thank you very much. Next is Christopher Delaunay. DELAUNAY: Aloha, Commissioner's. Christopher Delaunay with Pacific Resource Partnership for a non-profit Market Recovery Trust Fund, which represents approximately 7,000 men and women union carpenters and 240 large and small contractors in the State of Hawaii. 6 EXHIBIT B Our members also reside and work on Hawaii island. So, we are in strong support of the Kumu Hou Waikoloa projects. We believe this project will create many economic benefits for the County and the State. It will increase real property tax, TAT and GET revenue. It will generate more visitor resident spending in our local economy. It will create more than 1,000 permanent jobs for local residents. Specifically, the project will create 260 to 520 full-time development related jobs during construction and an estimated 470 permanent full-time direct jobs and 610 indirect jobs upon completion. Importantly, this project will also provide more affordable workforce housing for Hawaii island residents, no less than 142 affordable workforce rental housing units for kama`aina in the 30%to 80% AMI bracket. The 2019 Housing Planning Study indicates that about 30% of the housing need in Hawaii island is within this AMI bracket, so we see tremendous benefits with this project, and we look forward and hope for your favorable consideration. Thank you. VITOUSEK: Thank you. And finally, we have Rhonda Doyle. DOYLE: Hi, I'm Rhonda. VITOUSEK: Hi, go ahead. DOYLE: I'm just going to read a letter that I compiled but it's not the letter I submitted. Hello, my name is Rhonda Doyle, and I would like to thank the County of Hawaii for allowing comments on the proposed development in Waikoloa Beach. The topic of workforce housing is a priority of businesses in our state who are suffering from a lack of applicants. They are also having to contend with more full-time residents who do not need to work and are retired. After COVID we are seeing a nationwide migration of the population to find a better life. We cannot begrudge those who care to live somewhere better. If you've been to the DMV lately or driven our roads, we can see that many of these folks are moving from out of state. This is adding to our already scarce resources, namely housing, water and building materials. Rather than grumble about these issues, we all need to be prepared for change, but mindful planning must occur before such a massive development is approved. Long ago, when the railroad was being built, employers were prepared to house labor in temporary moveable structures or bunk houses. Local on-island companies have the ability to manufacture these types of structures to be used for employee housing. This could be an opportunity to house workers on an as needed or nightly basis to fill some of these vacancies. This would also assist current workers struggling to commute. Gaining jobs in any community is a winning bet, unfortunately skilled labor is finite. If anybody has flown to Oahu, after 5p.m. you will witness multiple construction crews and employees who live on neighboring islands. How can companies afford to pay for airfare and hotels with escalating prices? Cost will eventually be passed on to consumers and the local community. Jobs are great but where the new employees will reside locally is what needs to be considered. I'm concerned that our magical State of Hawaii will not be able to sustain the number of new families moving to or visiting the State. When will we need an additional lane from Waikoloa to the Kona Airport? I believe infrastructure must be a top priority to handle this growth. 7 EXHIBIT B Therefore, I'm requesting a current environmental impact study to address these challenges for our new post COVID Hawaii. Thank you. VITOUSEK: Thank you very much. That concludes our public testimony. Can we have a motion to close public testimony please? Unless there are any questions, sorry are there any questions that any of the Commissioners have for the testifiers? VISTOUSEK: Commissioner Paishon-Duarte. PAISHON-DUARTE: Sure, the first question is to Mr. Ross Birch. One of the things that struck mein your in your testimony. You said that this project might provide opportunity to engage and educate responsible visitors. My question to you is how would this occur? How will the engagement and education of responsible visitors occur? Timeshare visitors I believe. VITOUSEK: Mr. Birch still available? JACKSON: No, it looks like he dropped off the meeting. Sorry. VITOUSEK: Perhaps we can ask that question to the applicant. PAISHON-DUARTE: May I ask another question? VITOUSEK: Of course. PAISHON-DURTE: Thank you. Next question I have is for I believe Mr. Nathaniel Kinney. My question is so you said in your testimony that time shared guests or time-shared guests spend more. I would like to know; I want to know what your sources for that information and in comparison, to who? To whom? KINNEY: It's just generally how I believe that time share guests spend more in the community versus people who stays at an Airbnb's and transit vacation rentals "-- -". But if you'd like, I can go back and find the source of exact data and get that back to you if you need that Commissioner. PAISHON-DUARTE: That would be very helpful. I'd like to better understand the economic, the overall economic impact of timeshare we get. Thank you. KINNEY: One thing that I think we can be sure of though Commissioner is that when guests don't stay in hotels or in timeshares and they stay in the community. There is a palpable lack of affordable housing is more transitive vacation units "- --" affordable housing. So that's one issue that we do like to highlight is the difference between like a hotel or timeshare versus what is basically a proliferation of transit vacation units"- --"valuable affordable housing. DONOHO: Commissioner, I'm sorry to interrupt but I might be able to provide a little bit of insight into that in terms of a research opportunity. On the Hawaii Tourism Authority's (HTA) website underneath the research tab. They did a report on timeshare visitors a specific 8 EXHIBIT B standalone report and that might be providing some of the data that you need. So, if you go to hawaiitourismauthority.org and click on the research link. They take a deeper dive into various types of spending by different visitor groups. Hope that's helpful. PAISHON-DUARTE: Chair may I respond is that okay? VITOUSEK: Sure. PAISHON-DUARTE: Thank you, sorry Miss Donoho. I will definitely take a look at that information. I'm familiar with the HTA's, they have tremendous amount of resources there for the public to peruse. I will look also if that data is localized for the given area. I have one final question — DONOHO: I'm sorry, I do believe that they break it out a little bit more. If you look at the island data for the visitor, each visitor group. I'm not certain if that time share report has it broken down but you can get it monthly by islands if that's helpful. PAISHON-DUARTE Thank you, I'm familiar with those reports they are very helpful, thank you. Chair may I ask one final question? VITOUSEK: Yep. PAISHON-DUARTE: Thank you very much. This question is for Mr. Christopher Delaunay. I apologize if I mispronounced your name. You also shared and I appreciated your testimony the contributions to our kama`aina workforce housing. May I ask what kind of assurances, what are the assurances that the workforce housing that is to be developed will be offered to kama`aina? And then my second question to you are what are your overall, sorry— VITOUSEK: Before we go in to far, is Mr. Delaunay still on the line? JACKSON: He is still on, but he just logged back in so he may have only heard half the question. VITOUSEK: I just want to make sure that the questions as a public testify Mr. Delaunay may not have the information that the applicant would have so just want to make sure that we're asking relevant questions to the testimony of the applicant but go ahead. PAISHON-DUARTE: Thank you Chair. I'll rephrase my question; Mr. Delaunay I appreciate your testimony for all the benefits for this project. I just like to ask; do you see any potential downsides? Do you see any potential downsides if this project were to move forward? DELAUNAY: No, I don't. I see a lot of benefits as I stated in my testimony. Especially in terms of housing and generating more revenue for the County and the State, as well as more jobs. PAISHON-DUARTE: Thank you. 9 EXHIBIT B JACKSON: Chair Vitousek, Mr. Birch has logged back on if you would like him to provide a response to Commissioner Paishon-Duarte. VITOUSEK: Commissioner Paishon-Duarte would you like to ask your question of Mr. Birch? PAISHON-DUARTE: Thank you Chair. Mr. Birch thank you for your testimony. I wanted to just ask you mentioned in your testimony that there's an opportunity to engage and educate the timeshare visitors. My question to you is how would this take place? BIRCH: I think it's part of the project plan. First and foremost, the timeshare visitor themselves are a longer stay. I'll reiterate a lot of what the questions were as well earlier from the statistical standpoint is that they do spend a lot more money. Based on the fact that their stay is at least probably 4 to 5 days longer than our average stay for the island. So that accumulates as well as their pre-paid vacation. So, anything that's pre-paid in advance allows them to have more discretionary spending when they're on their vacation so they do spend a lot more money in the community and throughout the opportunities within the resort on that side. They are return visitors, so they're very familiar with the product, so that means we're attracting more of a responsible visitor they know that they're going to come back again the following year. So, they're going to be a little bit more responsible or have more of a responsible minded visit because they will be coming back. They build relationships with individuals within the resort areas and the communities. As well as understanding that this project specifically is going to have a cultural interaction and community-based opportunities for their staff and cultural practitioners to engage and communicate with the visitors as they come in and provide opportunities, even thru our Malama Hawaii projects as well. So, there's a lot of different ways of engagement on that side and this project sets up very well for that. PAISHON-DUARTE: Mahalo. VITOUSEK: Okay, Commissioner Yates do you have a question? It's on mute, there you go. YATES: Yes, I'm listening to all of the testimony here and talking and I believe the first or second gentleman that came on talked about affordable housing for people who work there at Waikoloa or did I misunderstand that. Because, as I'm listening to everybody talking, they're talking about timeshare, all refers to timeshare and where does it show affordable housing for the people who are going to work there and live there. Or am I misunderstanding? VITOUSEK: Good question. I think that question is probably best for the applicant. When they do their presentation, we can ask them that I think that would probably be the best place. YATES: Yes, good as I don't see anything here this says about people who work here have a place to stay and it talks about time share. VITOUSEK: Yeah. 10 EXHIBIT B YATES: So, I'm just— VITOUSEK: Absolutely, I think the applicant probably be the best person to ask that question. YATES: Okay. VITOUSEK: Terrific, any further questions for the testifiers? Okay. The public testimony ended at 10:33 a.m. Respectfully submitted, Melissa Dacayanan-Salvador Secretary to Boards and Commissions 11 EXHIBIT B