HomeMy WebLinkAbout2022-08-04 Windward Exh B (Item 4 Ke'aloha Lani PL-REZ-2022-000023 WINDWARD PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
AUGUST 4, 2022
A regularly advertised hearing on the application of KEALOHA LANI LLC (FORMERLY
HAWAII ISLAND DISTILLING LLC) (PL-REZ-2022-000023) (AMEND REZ 17-000218)
was called to order at 10:57 a.m. in the County of Hawaii Council Chambers, 25 Aupuni Street,
Hilo, Hawaii with Vice Chair Michelle Galimba presiding.
COMMISSIONERS IN ATTENDANCE: Michelle Galimba, Lauren Balog, John C. Cross,
Louis Daniele III, and Wayne De Luz.
ABSENT AND EXCUSED: Gilbert Aguinaldo and Dennis Lin.
ALSO IN ATTENDANCE: Malia Kekai Esq. (Counsel for the Commission), Jean
Campbell, Esq. (Counsel for the Planning Department), Jeffrey Darrow (Deputy Planning
Director), Christian Kay (Planner), Tracie-Lee Camero (Planner), Jessica Andrews (Planner),
Jessica Andrews (Zoom Host), Maija Jackson (Planning Program Manager), and Melissa
Dacayanan-Salvador (Windward Planning Commission Secretary).
And 1 member from the public in attendance.
APPLICANT: KEALOHA LANI LLC (FORMERLY HAWAII ISLAND DISTILLING
LLC) (PL-REZ-2022-000023) (AMEND REZ 17-000218)
Application for an amendment to Condition E(Timing of Fire Flow Improvements) and
Condition I(Timing of Roadway Improvements) of Ordinance No. 17-65 which reclassified
6.505 acres of land from Agricultural-20 acres (A-20a) to General Industrial - 20,000 square feet
(MG-20) zoned district. The applicant is requesting these amendments to change the
development trigger for these required improvements from prior to issuance of Certificate of
Occupancy to prior to Final Subdivision Approval. The subject property is located east of
Highway 11 (Volcano Highway), west of Railroad Avenue, and north of Highway 130 (Kea`au-
Pahoa Highway), Kea`au, Puna, Hawaii, TMK: (3) 1-6-141:002.
Secretary's Note: "—" indicates that there were technical and/or internet difficulties, which made
the conversation inaudible.
GALIMBA: For Item No. 4, the applicant is Ke'aloha Lani, LLC, formerly Hawaii Island
Distilling, LLC, PL-REZ-2022-000023, Amend REZ 17-000218. Application for an amendment
to Condition E (Timing of Fire Flow Improvements) and Condition I (Timing of Roadway
Improvements) of Ordinance No.17-65 which reclassified 6.505 acres of land from Agricultural-
20 acres to General Industrial-20, 000 square feet zoned district. The applicant is requesting
these amendments to change the development trigger for these required improvements from prior
to issuance of Certificate of Occupancy to prior to final subdivision approval. The subject
property is located east of Highway 11, west of Railroad Avenue and north of Highway 130,
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EXHIBIT B
Kea`au, Puna, Hawaii, TMK: (3) 1-6-141:parcel 002. The staff presentation will be by Tracie-
Lee Camero.
CAMERO: Good morning, Chair, and members of the Windward Planning Commission.
Before you today we have Ke`aloha Lani, LLC. As the Chair mentioned their request is
currently to amend Condition E and Condition I of Change of Zone Ordinance No. 17 65. As
stated, the applicant is requesting an amendment of Condition E which is the timing for fire flow
improvements and Condition I which is the timing of roadway improvements of Ordinance No.
17 65 which reclassified 6.505 acres of land from Agricultural-20 acres to General Industrial-
20,000 square feet.
The applicant's stated reasons for the request was the applicant believes that the requirement for
the industrial or commercial level roadway improvements and water requirements are driven by
the industrial zoning and any subdivision based on that zoning designation. The applicant
further stated that the requirements or standards like the roadway improvement requirements
would not be applicable if a use were permitted within a special permit for this property.
Therefore, the applicant is requesting similar consideration i.e., that the road and water
infrastructure improvements be deferred to the subdivision process and not the building permit
process which is what it's currently stated.
Before you is the location map. The subject property is located east of Highway 11 which you
can see runs in a north to south direction and it's located west of Railroad Avenue and north of
Highway 130 in the Kea`au district within the Puna Ahupua'a. This is the County zoning map.
The subject property is outlined in red and indicated to you with the color gray. The surrounding
properties for the areas include FA-2 acres, Agricultural-5 acres and I apologize the FA-2 acres
is shown to you with the aqua color and the agricultural zone districts are shown to you in the
various green shades. There's also a similar industrial zoning located across Volcano Road
which you can see in the purple color.
The State Land Use Boundary Map for the area is Urban as you can see it's outlined in red also
the Urban designation is pink, the green designation shows the Agricultural State Land Use
designation which is most of the surrounding areas. This is the LUPAG map for the subject
property which again is outlined in red. The LUPAG designation shown on this map is orange
which is Medium Density Urban. However, in 2017 the Planning Director determined that it
was actually within the Gen, I apologize, the Industrial zone district. Which you can see is on
the purple and it's to the right of your screen. You have various zoning districts within the
LUPAG designation in this area such as LDU shown at top left-hand corner. You have the
Important Agricultural Land shown in the green, Extensive Agricultural Land shown in the
white, the Conservation and the UE shown in the lower left-hand side of your screen.
This is an aerial map of the subject property. Currently there is a PV system that's located on the
subject property. There's also a distilling that was approved back in 20, I apologize, it was
approved by a Special Permit back in 1993. Which is shown on this property, and it also
continues on to the surrounding properties within the area. You have the Volcano Highway
which runs in a top to bottom direction on your left-hand side of the screen and the Shipment
Industrial is located across the street in that area.
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EXHIBIT B
In 2017, when the applicant came before the Planning Commission this was the proposed site
plan that they had submitted to us. It included the existing solar array farm, which is currently
there, as well as some of the microbrewery covered lanai, a beer sampling area and parking for
the use. Up until this point, it's my understanding as well as what the applicant has submitted
that none of this has been developed yet.
In 2021, the applicant completed a CPR of the subject property. Where they did provide a
separate lot which is for the current PV array so, before you this is the CPR map that was
submitted by the applicant.
These are the current site photos of the subject property. To the left you have a view of the
entrance of the subject property facing east. So, this is at the end of Shipment Road which is
formerly known as Slaughter House Road for those of you familiar with the area. Shipman Road
continues on to the left in this northern direction and straight ahead is the applicant's existing
entrance to the subject property. This is actually the start of TMK 1 and 24, where two side by
side roadway and utility easements are located that access the subject property as well as the
distilling that's located further east.
The photo on your right is a photo of you driving further east on the subject property. However,
you're facing north, and it currently shows the existing solar panel array on the property. Other
than that, there isn't anything else located on the subject property at the moment.
On the screen before you is the applicant's proposed amendments to Condition E. As you can
see the applicant has proposed to amend the timing trigger for the fire improvements to be final
subdivision approval. And again, the applicant's proposed amendment to Condition I include the
timing trigger for the applicant's roadway improvements to be final subdivision approval as well.
Currently the Planning Director is recommending forwarding a favorable recommendation to the
County Council. However, he is recommending modifications for the applicant's proposed
amendments to Condition E and Condition I of Ordinance No.17 65. So, on your screen before
you I have the Planning Director's recommended proposed language and his proposed
modifications to the request. On the right-hand side, you have the applicant's proposed language
which was discussed earlier that he is currently proposing to remove the timing trigger of
Certificate of Occupancy to final subdivision approval. And to the right of your screen is the
Planning Director's view on this. So, the one thing that I wanted to note about the Planning
Director's recommendation is that the Planning Director believes that the timing trigger for this
condition should not be changed. The Planning Director understands that the Fire Department
will review the plans at some point or another against their Code. Based on that, the Planning
Director does not support the applicant's request to defer the timing trigger. However, the
Planning Director is recommending to add that last statement that allows for the Fire Department
to review this at any time and determine when they feel their Code needs to be made.
So, before you is the proposed request that the Planning Director has with his modifications. I
tried to take out the Ramseyer version because it's quite cumbersome when you review a
condition of the Ramseyer version. So, as you can see the Planning Director's proposed
amendment to Condition E is that prior to receipt of Certificate of Occupancy the applicant shall
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EXHIBIT B
provide a fire hydrant within 150 feet of the property and either upgrade the existing 4-inch
water line to a 12-inch water line for a distance of approximately 800 feet or provide a private
water system capable of providing a minimum flow of 2,000 gallons per minute for a 2 hour
duration and a pipeline velocity of less than 10 feet per second or provide another method of fire
protection as approved by the Fire Department.
Now for Condition L As you can see it's quite long. So, I'll try my best to summarize all of this.
For Condition I the applicant again requested that the timing trigger be the final subdivision
approval. As you can see on the left-hand side of your screen the Planning Director believes that
the timing trigger for this condition should still be Certificate of Occupancy. However, we do
recognize that currently on the parcel there is a solar panel PV as well as a shed that hasn't been
built yet. So therefore, we are requesting that prior to Certificate of Occupancy for any new
structure excluding structures that do not require a Certificate of Occupancy thus the storage
building or a utility shed would not trigger this condition. Furthermore, if and when the property
is subdivided and/or a CPR has occurred the road improvement requirements of the Subdivision
Code would then be triggered. One of the things that the Planning Director is proposing right
now is that we remove the specific wording of the standard details for Public Works
Construction and replace it with the following language. Which would account for any possible
changes that we may have to the public or standard details as well as the Subdivision Code
which we know can change at any time and moment.
So, you can see the changes that are being proposed are underlying on the slide to the left. I tried
to take out some of the Ramseyer version again because it just seemed a little bit too much
wording on one slide. This last slide shows you finally what the Planning Director has proposed
for this condition and without any of the Ramseyer version on it. As you can see like we
discussed, he is recommending that we put prior to receipt of Certificate of Occupancy for any
new structures excluding structures not requiring a Certificate of Occupancy such as a storage
and/or utility shed as well as the last statement which would still require the applicant to meet
with the requirements of Chapter 23, of the Hawaii County Subdivision Code at any time that
they come in for a subdivision and/or a CPR of the subject property.
So, that concludes my presentation, and I can turn the floor back to the Chair.
GALIMBA: Thank you. Commissioners do you have any questions or clarification from the
staff? If not, we will move on to the applicant we can always come back and ask questions.
APPLICANT: Came up to the table.
GALIMBA: Please raise your hands so I can swear you in. Do you swear or affirm to tell the
truth on this matter now before the Windward Planning Commission?
APPLICANT: Yes, I do.
GALIMBA: Thank you. Please state your name and the town you live in and go ahead.
FUKE: Sure. Good morning again this will be hopefully very brief. My name is Sidney Fuke-
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EXHIBIT B
GALIMBA: Sorry, wait I have to ask you. Have you received the background and
recommendation reports?
FUKE: Yes.
GALIMBA: And do you agree with the Planning Director's recommendations including the
proposed conditions?
FUKE: Yes. We've had a chance to review it with the applicant and the applicant is totally
agreeable to the revised recommendation that we had submitted to the Planning Department and
so whatever was presented by your staff is totally acceptable.
GALIMBA: Okay.
FUKE: Their report is always very comprehensive. Again,just for the record my name is
Sidney Fuke and I live in Hilo. With me today, I'd like to acknowledge the presence of Geoli
Ng, she's sitting back there. And just rather than going into the detail just gonna give you some
general background as far as this area that might be of more interest, I think so. The properties
were like the former owner was Hawaii Brewery Development and subsequently became
Hawaii Island Distilling, LLC. So, one of the founders of the developer. He was the founder of
Hawaiian Springs, and he still lives in Honolulu. But it did Brew Moon if you remember where
Brew Moon was in Kaka`ako and he's the founder of Kai Vodka and so, he saw this area as like
a great resource, a lot of artesian water. Excellent and so he wanted to create, his interest was to
create sort of like a beverage community that would take advantage of some of the agricultural
products in that area. Because there's a lot of microbreweries going on right now and we know
that you have agricultural products and people use like for vodka they use like different essence.
So having mango, papaya in ready access to this stuff so he felt like this area was kind of like a
natch.
So, along the way he had about 141/z acres through over time. Got a Special Permit within which
a portion of it is where the Hawaiian Springs is and then he secured the zone change of just
across the street where the subject of this ordinance. So, then along came the current owner
and so, he bought out everything less Hawaiian Springs. And so, the current owner right now is
they have the "—" I have to get it from her, Geoli. So, it's called Waiakea, Waiakea, um
Waiakea Springs. So, the water comes from over there. They're in the process now applying for
a building permit and hopefully we don't have to come back before this Commission to ask for
an extension. But probably we will because the building permit process takes "X"-while and
construction is going to be "Y" and they're going to need to have according to the terms of the
Special Permit have it completed by October of next year. So, it's going to be rather tight so I
just kind of wanted to provide that information. Letting you know that there is a chance that we
may have to go in for a time extension on that Special Permit.
So, the way the original rezoning condition read is just prior to issuance of any occupancy permit
that they had to do this. What I call like this Cadillac version of improvements, water system,
and roadway system and so what they felt like they wanted to do right now as Tracie had
mentioned construction of a storage shed associated with the solar array. But if you look at the
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EXHIBIT B
condition. They got to do all this water system and all of the roadway system and just for storage
shed so, it just kind of didn't make any sense. So,the idea was to and kind of flip it around
along the lines of what the staff is recommending to say that sure if you're going to have an
occupancy permit that's going to be heavily traffic generated then fine. You're going to have to
make certain roadway improvements. If you're going to have to subdivide, then obviously the
Subdivision Code kicks in. So, you're going to have to make all of those improvements and that
you recognize.
So as far as that's on the roadway. On the Fire Department too. The existing language right now
is a is an almost like a direct excerpt of what the Water Department would require as part of a
subdivision. But today if you go in for a building permit, the Water Department really doesn't
kind of come into the picture, but the Fire Department comes. And they tell you like if you don't
have water, you're going to need to have like maybe a hydrant constructed or you have to have
like a storage tank or you're going to have a sprinkler system. So, what we finally agreed to is
like to say, yes. The caveat that the staff included allows for that provision. It states all of these
that you got to do but on the other hand if Fire Department says if you can comply with Fire
that's fine and so that's perfectly acceptable and essentially that's the request and we ask for
your favorable consideration.
GALIMBA: Thank you. Are there any testifier,public testifiers on this matter? Seeing none—
ANDREWS: No, there are none.
GALIMBA: —Okay, thank you. Commissioners do you have any questions of the applicant of
a fact finding? Oh, go ahead.
DE LUZ: Mr. Fuke, so they're asking for these considerations so they can move forward with
just the storage and the solar array. But isn't there a pre-existing, there's no other pre-existing
structure on the property?
FUKE: The only existing structures are the Hawaiian Springs —
DE LUZ: Okay.
FUKE: —which is already there. It's a bottling plant and then the solar array. They're in the
process of applying for a building permit for a new bottling plant which is going to be for this
Waiakea Water. Currently what they're doing is that they're drying the water and then they're
bottling it someplace in Hilo and maybe Geoli can answer that. But the water comes from the
well, one of the existing wells there. So, the building permit that they're seeking is for a new
bottling plant on that site. So, when that permit comes in then obviously some measure
There're going to need occupancy permit.
DE LUZ: Right.
FUKE: So, the improvements from an existing 16-to 20-foot-wide pavement will probably be
triggered.
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EXHIBIT B
DE LUZ: Oh so, so this is just more of a partial build out.
FUKE: Correct, yeah, it's over time.
DE LUZ: Okay.
FUKE: Yeah. So, and then the other condition is that if and when they subdivide the property or
a CPR then the requirements of the Subdivision Code kicks in. Which means now you have to
put the full what you call the BMW or Cadillac version of the infrastructure both water and your
roadway system.
DE LUZ: Yeah, I was just curious why they wouldn't have done that already when they made
that Special Permit for that area. That wasn't done then? Wasn't required, I guess.
FUKE: Yeah, it was all just up to the discretion of the Planning Commission at that time and —
DE LUZ: Okay.
FUKE: —there was no specific roadway improvements and water line improvements.
Actually, both Fire and Water Department is basically saying, and you don't use. Water
Department basically say that you don't use our water to bottle. That's all they're saying. And
Public Works did not make any mention about roadway improvements. When you came in for
the zone change for this particular area. Remember like there's this roadway that services both
sides. On the right-hand side if you go in it's like this Special Permit area plus the Hawaiian
Springs on the left-hand side it's like only the 6-acre area which became Industrial zone. So, in
conjunction with the industrial zone application the developer at that time Hawaii Brewery
Company had represented they were going to subdivide the land. So, when they were going to
subdivide like may be creating like 2-acre blocks out of that 6-acre parcel. Then both Public
Works and the Fire Dep—, Water Department looked at it in terms of a subdivision standards
and those subdivision standards got carried into the ordinance.
DE LUZ: Oh.
FUKE: So, what we're saying. At that time, we said like yeah, okay, we're going to subdivide
the land, but we didn't think far down the road. Now we have the solar array, they want to put
up a storage shed and if you put up a storage shed the way the existing condition reads right now
you got to put in all of these improvements, and it just doesn't make sense. So, essentially just to
have the infrastructure not to escape the infrastructure requirements but just to have the
infrastructure requirements tied in with their actual impact. You know storage shed probably
minimal impact. You do like a visitor center, yes.
DE LUZ: Thank you for clarification. Thank you, Chair.
GALIMBA: If there's no other questions, could we get a motion on this item?
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EXHIBIT B
DANIELE: Okay, I move that a favorable recommendation be forwarded to the County Council
on the application to amend Change of Zone Ordinance No. 17 65, based on the Planning
Director's recommendations, which shall be adopted.
DE LUZ: I'll second.
GALIMBA: Great. So, it's been moved by Commissioner Danielle and seconded by
Commissioner De Luz. Do we have any discussion? I'm seeing none, can we call for the
question.
CAMERO: Commissioner Danielle? Oh, I'm doing the roll call vote right?
GALIMBA: Yeah.
DANIELE: Oh, aye.
CAMERO: Commissioner De Luz?
DE LUZ: Aye.
CAMERO: Commissioner Balog?
BALOG: Aye.
CAMERO: Commissioner Cross?
CROSS: Aye.
CAMERO: And Chair Galimba?
GALIMBA: Aye.
CAMERO: The motion carries five to zero with Commissioner Aguinaldo and Commissioner
Lin excused. Thank you so much.
GALIMBA: Thank you, you will be notified of the decision in writing.
The item ended at 11:21 a.m.
Respectfully submitted,
Melissa Dacayanan-Salvador, Secretary
Windward Planning Commission
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