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HomeMy WebLinkAboutPD Recommendation Report (PL-SMA-2022-000025) R Ola Brew SMA 3/20/2023 COUNTY OF HAWAI`I PLANNING DEPARTMENT RECOMMENDATION HAWAIIAN OLA BREWING CORPORATION SPECIAL MANAGEMENT AREA USE PERMIT APPLICATION (PL-SMA-2022-000025) Upon careful review of the applicant's request against the guidelines for granting of a Special Management Area Use Permit, the Planning Director recommends that this request to convert the existing Wainaku Executive Center into a micro-distillery, restaurant, and bar, which includes grading for new parking and the installation of a wastewater system to accommodate the new uses on 12.31 acres of land the Special Management Area be approved by the Planning Commission. Since this recommendation is made without the benefit of public testimony, the Director reserves the right to modify and/or alter this recommendation based upon additional information presented at the public hearing. This approval recommendation is based on the following: The applicant requests a Special Management Area Use Permit to convert the existing Wainaku Center into a micro-distillery, restaurant, and bar. Exterior work includes the following: • Grading and excavation work from a large hill on the west side of the building to allow for additional parking as well as the various wastewater subsurface structures. • Installation of a new wastewater system, including connections to county sewer lines and on-site wastewater pre-treatment equipment. • Installation of safety fencing, related development, and other appurtenant structures on the subject property to support the new uses. The interior work will consist of: • Re-design and renovation work to convert the existing Wainaku Center building to accept the new micro-distillery equipment, restaurant kitchen, and other related infrastructure. The first floor will house the micro- distillery and agricultural processing facility while the second floor will serve as the bar and restaurant. Hawaiian Ola Brewing Corporation has been searching for a property with Industrial zoning to accommodate its expanding business profiles and growth. Expansion into restaurants,bars,pubs,brewing, and distilling are all allowed uses within the Industrial zone. Hawaiian Ola Brewing Corporation learned in late 2021 that the Edmund C. Olson Trust No.2 was going to sell its Wainaku Ventures, LLC properties. The MG-5a and Mg- la zoning of the properties met the objective of the Corporation. The proposed use of the building will be limited to a restaurant, Bar, and Micro-Distillery and the brewing of beer will not be performed at this site. The grounds for approving development within the Special Management Area are based on HRS, Chapter 205A-26(2) (Special Management Area guidelines) and Rule 9- 11(e) of the Planning Commission Rules of Practice and Procedure. Planning Commission Rule 9-11(e) states that the Authority (Planning Commission) may permit the proposed development only upon finding that: 1. The development will not have any substantial adverse environmental or ecological effect except as such adverse effect is minimized to the extent practicable and is clearly outweighed by public health, safety or compelling public interest; 2. The development is consistent with the objectives and policies and the Special Management Area guidelines as provided by Chapter 205A, HRS; 3. The development is consistent with the General Plan, Community Plan, Zoning Code and other applicable ordinances; 4. The development will,to the extent feasible,reasonably protect native Hawaiian rights if they are found to exist, including specific factual findings regarding: a. The identity and scope of valued cultural historical or natural resources in the petition area, including the extent to which traditional and customary native Hawaiian rights are exercised in the petition area; b. The extent to which those resources including traditional and customary native Hawaiian rights, will be affected or impaired by the proposed action; and c. The feasible action, if any, to be taken by the Authority to reasonably protect any valued cultural, historical or natural resources including any existing traditional and customary native Hawaii rights. -2- In review of the SMA guidelines as listed under HRS 205A-26(2)(A), the proposed development will not have any substantial adverse environmental or ecological effect, except as such adverse effect is minimized to the extent practicable and clearly outweighed by public health, safety, or compelling public interest. In considering the significance of potential environmental effects,the Director shall consider the sum of those effects that adversely affect the quality of the environment and shall evaluate the overall and cumulative effects of the action on the Special Management Area. Such adverse effects shall include,but not be limited to,the potential cumulative impact of individual developments, each one of which taken in itself might not have a substantial adverse effect and eliminate planning options. The proposed project did not meet the criteria in State law for the requirement of an environmental assessment or environmental impact statement. While one of the subject parcels is located along the shoreline, no work is proposed within the shoreline setback area and as such no HRS 205A trigger was identified. In review of the SMA guidelines as listed under HRS 205A, the proposed development is consistent with the objectives and policies as provided by Chapter 205A, HRS, and Special Management Area guidelines contained in Rule No. 9 of the Planning Commission Rules of Practice and Procedure. The purpose of Chapter 205A, Hawaii Revised Statutes (HRS) and Special Management Area Rules and Regulations of the County of Hawaii, is to preserve,protect, and where possible, to restore the natural resources of the coastal zone areas. Therefore, special controls on development within an area along the shoreline are necessary to avoid permanent loss of valuable resources and the foreclosure of management options. The objectives and policies of Chapter 205A,HRS include,but are not limited to,the protection of coastal recreational resources, historic resources, scenic and open space resources, coastal ecosystems, marine resources, beaches, and controlling development in coastal hazard areas. Coastal Recreational Resources: Recreational activities on the subject parcels include fishing and sightseeing from Ale`ale`a Point which are accessed via an existing pedestrian public access trail from Parcel 002 to the shoreline on Parcel 001. There are no -3- significant recreational resources located directly on the subject property other than the fishing access as the site has been fully developed for over 100 years. Therefore, the proposed project will not have any impact on the coastline or other areas utilized for public recreational activities at Ale`ale`a Point, nor would it impede or hinder the public's ability to access the shoreline. Historic and Cultural Resources: Other than the fishing site at Ale`ale`a Point, there are no known traditional native Hawaiian or valued cultural resources that exist upon the subject properties. The properties were used extensively for Sugarcane processing, warehousing, and offloading of bagged sugar to moored ocean carriers. Industrial use of the properties appears to have commenced in 1884 and the seawall was constructed in 1921. The fishing site at Ale`ale`a point is well known and used regularly by the surrounding community and others who know of the site. Pedestrian public access to the fishing site is via a foot path that descends from the parking area on Parcel 002 to the fishing area. Scientific Consultant Services, Inc.prepared a Draft Archeological Inventory Survey(AIS)for the project area in January 2023. One previously identified archaeological site (Site 950-10-35-21133), the Hilo Sugar Company Wainaku Sugar Mill facilities, was documented during the AIS study. Site 950-10-35-21133 consisted of 16 early Historic era to Modern era sugar mill features. The features were remnant portions of several building foundations, a renovated warehouse building, a railroad tunnel, two segments of seawall, a mill yard,and a reinforced concrete flume trestle. Based on their review,the State Historic Preservation Division (SHPD) requested that the identification and treatment of potential architectural historic properties be addressed separately in a Reconnaissance Level Survey (RLS). The applicant has completed the RLS report, and it is currently under review by SHPD for recommendations and approval. Staff notes that the RLS describes five (5) structures on the main parcel (001)that were determined to have historic significance. The noted structures include, 1)the Rail Tunnel,2)seawall segment(south),3)seawall segment (north),4)a concrete flume(Wai'au Flume)segment near the parking lot,and 5)a concrete flume (Wai'au Flume) segment near the entrance to the property. Staff notes that the RLS includes descriptions of all structures that were evaluated for significance criteria, and concluded that "with such a large proportion of its historic structures reduced to -4- foundations remnants and other that do not retain integrity, the property does not possess the necessary continuity and concentration of resources to support an intact historic district". Scenic and Open Space Resources: Scenic views of Hilo Bay and town from the main parcel (Ale`ale`a Point) along the shoreline will be maintained and preserved, and with more visitors to the site from the proposed changes, will be viewed by more people. Access to the site will be maintained so that the public may visit the shoreline for sightseeing. No views from the highway exist due to the vegetation and topography of the landscape between the highway and property. Management of the property includes vegetation control which in the past has overrun this area. Coastal Ecosystems, Marine Resources, Beaches: The development will employ BMP's during excavation work ensuring that the activities will not adversely affect a)water quality, b) existing areas of open water free of visible structures, c) existing and potential fisheries and fishing grounds, d) wildlife habitats, or e) potential or existing agricultural uses of the land. A new drywell is planned to be installed at the makai edge of the current existing parking area thus retaining and handling any increased surface water flow from the new parking area pavement. Additionally,wastewater will no longer discharge into the subsurface through leech fields but will be pre-treated on site and removed via a proposed connection to the County's wastewater system thus minimizing impacts to the nearshore area. Coastal Hazards: The project site is not located in a tsunami inundation zone due to the presence of a 40-foot-high seawall that bounds the makai side of the main subject parcel (001). According to the FIRM maps prepared by the Federal Emergency Management Agency (FEMA), the subject parcel is designated as Flood Zone "X"which is considered in an "area of minimal flood hazard, usually depicted as above the 500-year flood level", however, a small section of the main parcel (001) does have a section located within the VE Flood Zone. No proposed activities are located in the VE zone. The development will be subject to the requirements of Chapter 27 - Flood Control, of the Hawaii County Code in order to minimize the effects of coastal hazards. In addition, all buildings will be constructed in conformance with Uniform Building Code specifications. -5- The proposed development is consistent with the County General Plan, Hilo Community Development Plan(CDP),Zoning Code and other applicable ordinances. The General Plan Land Use Pattern Allocation Guide(LUPAG)for the County of Hawaii is a policy document expressing the broad goals and policies for the long-range development of the Island of Hawai'i. The plan was adopted by ordinance in 1989 and revised in 2005. The proposed development is consistent with the General Plan LUPAG Map designation of Resort Node(ren)which includes areas that are a mix ofvisitor-related uses such as hotels, condos, single-family and multiple family residential units,golfcourses and other typical resort recreational facilities, resort commercial complexes, and other support services. Staff notes that the project site has been designated as a "minor resort area", under the General Plan section on Standards (14.7.4) and as designed will complement the goals,policies, and standards of the Land Use (Economic, Environmental and Land Use) Elements of the General Plan. The proposed action is in balance with the natural, cultural, and social environment of the County, and it will create temporary construction jobs for local residents and indirectly affect the economy through construction industry purchases from local suppliers as well as permanent jobs for employees of the future restaurant, bar and micro-distillery. The Hawaii County Department of Planning zoning designation for the subject parcels is General-Industrial 5-acres (MG-5a)(Parcel 001) and MG-la(Parcel 002),which applies to areas for uses that are generally considered to be offensive or have some element of danger. The proposed project of creating a micro-distillery, restaurant, and bar are permitted uses within the MG zoning district and do not require a use permit. The development will conform to the requirements of the zoning district relative to permissible uses, maximum allowable height, minimum yard setbacks, minimum off-street parking, and landscaping requirements. Lastly, the proposed development is consistent with the Hilo Community Development Plan (Hilo CDP). The Hilo CDP was adopted by the Hawai`i County Planning Commission, by Resolution No. 1 on May 21, 1975 and guides decisions within the Hilo Urban Area and surrounding regions. -6- The project site is located within an area adequately served with essential services such as water, electricity, and telephone. Wastewater will be pre-treated on-site before being disposed of via a new connection to the existing County sewer line which will be extended to this project site prior to use. Conditions of approval will require the applicant to install and/or upgrade any necessary water and sewer lines to connect to the County's main water and sewer lines within the adjacent streets. Possible traffic impacts from Hawaiian Ola Brewing's restaurant, Bar, and micro- distillery may create a visitor traffic count of 185 persons per day. Using an assumed passenger per vehicle at a maximum of 1.0 visitors per vehicle results in 185 vehicles, however a minimum of approximately 2.0 visitors per vehicle equates to 93 vehicles per day. Staff and operations, including deliveries of Ki leaf root, are expected to number around 20 vehicle entry and exits at Parcel 001's main access site. These estimated numbers add approximately 113 entries/exits from Parcel 001's main access point. With the highway as the primary entry/exit site having four lanes,complete with acceleration and deceleration lanes,and a storage capacity for four vehicles for left hand turns from the highway to parcel 001, the vehicular traffic counts are not expected to have a significant impact to the use of highway. Additionally, traffic from the proposed development will be limited to the afternoon and evening hours when traffic conditions on the highway are at the lowest levels. Peak entry/exits from parcel 001 are forecasted to not exceed 25 per hour. It was recommended by the State Department of Transportation (DOT)that the applicant should consult with the DOT highways Division regarding access and safety and any permitting requirements. Additionally, DOT states that if future expansion of the use goes beyond what was represented in the application that an updated Traffic Analysis (TA) or Traffic Impact Analysis Report(TIAR) may be required. The development will to the extent feasible, reasonably protect native Hawaiian rights if they are found to exist. hi view of the Hawaii State Supreme Court's "PASH" and "Ka Pa'akai O Ka'Aina" decisions, the issue relative to native Hawaiian rights, such as gathering and fishing rights, must be addressed in terms of the cultural, historical, and natural resources and the associated traditional and customary practices of the site. -7- Investigation of valued resources: A draft Archeological Inventory Survey (AIS) of the subject parcels was completed in January, 2023 which was submitted to the State Historic Preservation Division (SHPD) for review under Ch. 6E-42. SHPD requested that the identification and treatment of potential architectural historic properties be addressed separately in a Reconnaissance Level Survey (RLS). The applicant has completed the RLS and it was submitted to SHPD for review and acceptance. The applicant is currently working to complete the SHPD review and will implement all recommendations prior to development of the property. The valuable cultural, historical, and natural resources found in the area: One previously identified archaeological site (Site 950-10-35-21133), the Hilo Sugar Company Wainaku Sugar Mill facilities,was documented during the AIS study. Site 950-10-35-21133 consisted of 16 early Historic era to Modern era sugar mill features. The features were remnant portions of several building foundations, a renovated warehouse building, a railroad tunnel,two segments of seawall, a mill yard, and a reinforced concrete flume trestle. Natural resources located on the subject parcel include the pedestrian public access path to the Ale`ale`a Point for fishing and sightseeing; the proposed project aims to record this easement/access in perpetuity and is currently in the process of recording the easement with the State Bureau of Conveyances (BOC). Possible adverse effects or impairment of valued resources: There is no evidence that the flora in the area is particularly desired or used for cultural practices, however, Hawaiian fishing rights along the shoreline will not be affected by this project since the existing access will be maintained and kept in perpetuity as a permanent pedestrian easement. There may be short term impacts from the construction activities for the development as well as the new proposed uses, however best management practices will be in place to mitigate these short-term impacts. Feasible actions to protect native Hawaiian rights: The proposed development will not restrict access to,and the use of natural resources at the shoreline as the subject property will maintain the existing fishing access. A condition of approval has also been added to protect any unidentified cultural, historical, and natural resources in the event any are encountered during construction. To the extent that traditional and customary native -8- Hawaiian rights are exercised, the proposed action will not affect traditional Hawaiian rights. Lastly, this approval is made with the understanding that the Applicant remains responsible for complying with all other applicable government requirements in connection with the approved use, prior to its commencement or establishment upon the subject property. Additional governmental requirements may include the issuance of building permits, the installation of approved wastewater disposal systems, compliance with Fire Code,installation of improvements required by the American with Disabilities Act(ADA), among many others. Compliance with all applicable governmental requirements is a condition of this approval; failure to comply with such requirements will be considered a violation that may result in enforcement action by the Planning Department and/or the affected agencies. Based on the above findings, the proposed development will not have substantial adverse impacts on the environment, nor will its approval be contrary to the objectives and policies of Chapter 205A, HRS, relating to Coastal Zone Management and Rule No. 9 of the Planning Commission relating to the Special Management Area. Approval of this request is subject to the following conditions: 1. The applicant(s), its successor(s) or assign(s) (Applicant) shall be responsible for complying with all of the stated conditions of approval. 2. The Applicant shall secure all necessary approvals and permits from other affected Federal, State, and County agencies as necessary to comply with all applicable laws and regulation, including but not limited to the State Department of Health Wastewater Branch and the County Department of Environmental Management. 3. Construction and operation of the proposed micro-distillery, restaurant, and bar shall be conducted in a manner that is substantially representative of plans and details as contained within the Special Management Area Use Permit application dated December 19, 2022, and representations made to the Windward Planning Commission. 4. Prior to the issuance of a water commitment by the Department of Water Supply (DWS), the Applicant shall submit the anticipated maximum daily water usage calculations as prepared by a professional engineer licensed in the State of Hawaii to the DWS. If it is -9- determined that the existing 1 1/2 -inch meter cannot accommodate the additional demand, a larger meter will need to be installed. 5. The Applicant shall implement any improvements required by the Fire Department and/or Department of Water Supply to ensure that fire protection requirements can be met for commercial uses prior to issuance of a Certificate of Occupancy. 6. Construction of the proposed development shall be completed within six(6)years from the effective date of this permit. Prior to construction, the Applicant shall secure Final Plan Approval for the proposed development from the Planning Director in accordance with Section 25-2-70, Chapter 25 (Zoning Code), Hawaii County Code. Plans shall identify all existing and/or proposed structure(s),paved driveway access and parking stalls associated with the proposed development. Landscaping shall be indicated on the plans for the purpose of mitigating any adverse noise or visual impacts to adjacent properties in accordance with the requirements of Planning Department's Rule No. 17 (Landscaping Requirements) and Chapter 25 (Zoning Code), Hawaii County Code. 7. All driveway connections to Highway 19 (Hawai`i Belt Road) shall conform to Chapter 22, County Streets, of the Hawaii County Code, including recommendations from the State Department of Transportation. 8. Before construction plans are approved, the Applicant shall consult with the Hawaii Department of Transportation (HDOT) Highways Division, Hawaii District regarding access/safety and any necessary permit requirements. 9. Any future expansion or intensification of land use beyond what is presented under his application may required an updated TA or TIAR to be submitted to the HDOT for review and acceptance. The study should identify potential traffic generated by the project impacts to the State facility and provide mitigation at no cost to the State. 10. The Applicant shall comply with Chapter 27 -Flood Control, of the Hawaii County Code. 11. All earthwork and grading shall conform to Chapter 10,Erosion and Sedimentation Control of the Hawaii County Code. 12. The Applicant shall not, at any time, impede or otherwise restrict public access to the shoreline at Ale`ale`a Point and within the public pedestrian access easement located on the subject parcels. -i0- 13. Artificial light from exterior lighting fixtures, including, but not necessarily limited to floodlights, up-lights or spotlights used for decorative or aesthetic purposes shall be prohibited if the light directly illuminates, or is directed to project across property boundaries toward, the shoreline and ocean waters, except as may otherwise be permitted pursuant to Section 205A-71(b), Hawaii Revised Statutes. 14. All development generated runoff shall be disposed of on site and shall not be directed toward any adjacent properties. A drainage study shall be prepared by a professional civil engineer licensed in the State of Hawaii and submitted to the Department of Public Works prior to issuance of Final Plan Approval. Any recommended drainage improvements, if required, shall be constructed meeting with the approval of the Department of Public Works prior to receipt of a Certificate of Occupancy for any portion of the development. 15. A Solid Waste Management Plan shall be submitted to the Department of Environmental Management for review and approval prior to the issuance of Final Plan Approval. 16. Sewer lines shall be installed within the development to connect with the County's sewer system, meeting with the approval of the Department of Environmental Management, and prior to the issuance of a Certificate of Occupancy. 17. During construction,measures shall be taken to minimize the potential of both fugitive dust and runoff sedimentation. Such measures shall be in compliance with construction industry standards and practices utilized during construction projects of the State of Hawaii. 18. A National Pollutant Discharge Elimination System (NPDES)permit, if required, shall be secured from the State Department of Health before the commencement of construction activities. 19. In the event that surface or subsurface historic resources,including human skeletal remains, structural remains (e.g. rock walls,terraces,platforms, etc.), cultural deposits,marine shell concentrations, sand deposits, or sink holes are identified during the demolition and/or construction work, cease work in the immediate vicinity of the find, protect the find from additional disturbance and contact the State Historic Preservation Division at (808) 933- 7651. Subsequent work shall proceed upon an archaeological clearance from DLNR-SHPD when it finds that sufficient mitigation measures have been taken. -11- 20. An annual progress report shall be submitted to the Planning Director prior to the anniversary date of the effective date of this permit. The report shall include, but not be limited to, the status of the development and to what extent the conditions of approval are being complied with. This condition shall remain in effect until all of the conditions of approval have been complied with and the Planning Director acknowledges that further reports are not required. 21. An initial extension of time for the performance of conditions within this permit may be granted by the Planning Director upon the following circumstances: A. The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant, successors or assigns, and that are not the result of their fault or negligence. B. Granting of the time extension would not be contrary to the General Plan or Zoning Code. C. The granting of the time extension would not be contrary to the original reasons for the granting of this permit. D. The time extension granted shall be for a period not to exceed the period originally granted for performance(i.e., a condition to be performed within one year may be extended for up to one additional year). E. If the applicant should require an additional extension of time, the Planning Department shall submit the applicant's request to the Planning Commission for appropriate action. 22. Should any of the foregoing conditions not be met or substantially complied with in a timely fashion, the Planning Director may initiate procedures to revoke the permit. -12-