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HomeMy WebLinkAbout2007-10-05 TVOLCANO PLANNING COMMISSION COUNTY OF HAWAI‘I HEARING TRANSCRIPT OCTOBER 5, 2007 VOLCANO FAIRWAYS A regularly advertised hearing on the application of DEVELOPMENT CORPORATION (REZ 769) was called to order at 9:22 a.m. in the County of Hawaii, Aupuni Center Conference Room, 101 Pauahi Street, Hilo, Hawaii, with Chairman William Graham presiding. PRESENT: William Graham ABSENT & EXCUSED: C. Kimo Alameda Takashi Domingo Andrew Iwashita Shelly Ogata Alvin Rho Rene’ Siracusa Rell Woodward Rodney Watanabe Ivan Torigoe, Deputy Corporation Counsel Christopher Yuen, Planning Director Jeff Darrow, Staff Planner And approximately 12 people from the public in attendance APPLICANT: VOLCANO FAIRWAYS DEVELOPMENT CORPORATION (REZ 769) Amendment to Condition B (Time to secure final subdivision approval) of Change of Zone Ordinance No.94-98, which rezoned 16.78 acres of land from Agricultural 1-acre (A-1a) and Open (O) to a Single-Family Residential 15,000-square foot (RS-15) district. The property is located adjacent to the Volcano Golf and Country Club Subdivision and the Volcano Golf Course, Keauhou, Ka’u, Hawaii, TMK: 9-9-6:8. GRAHAM: So we’ll move on to our next item, which is a new business item. The applicant here is the Volcano Fairways Development Corporation. Again this is a zoning ordinance amendment, so we’ll be making a recommendation and taking public testimony today, and the County Council will make the final decision. This is an amendment to Condition B which relates to the time to secure final subdivision approval. It’s an amendment to a Change of Zone Ordinance No. 94-98 which rezoned 16.78 acres of land from Ag-1a and Open to a Single-Family Residential 15,000 square foot district. And the property in question is located adjacent to the Volcano Golf and Country Club Subdivision. In just a second Jeff will give a little presentation on this. And I might remind the public if you want to testify on this item please sign in over here with Sharon at the end. Jeff, whenever you’re ready you can go ahead. Thank you. DARROW: Thank you, Mr. Chairman. Sorry for the delay. If I can direct your attention to the location map. The area of this application is within the Kau District of EXHIBIT B 1 Hawaii. More specifically we’re looking at the Volcano Golf Country Club. For reference this white line moving in an east-west direction is the Hawaii Belt Road. We have Piimoana Drive that is coming from the Hawaii Belt Road to this particular location identified in the blue dot. This is the area of this application. The applicant in this case, Volcano Fairways Development Corporation, is requesting an amendment to Ordinance 94-98 which was originally approved on September 13, 1994 to allow the change of zone from Agricultural 1-acre and Open zonings to RS-15 or Single- Family Residential 15,000 square feet. This was to allow a 40-lot subdivision, which this map that you’re looking at at this time is the final plat map that has been submitted by the applicants to the Planning Department. The applicants were required by Ordinance 94 98 to submit plans for tentative approval within one year from the effective date of the ordinance, which the applicants did comply. Along with that on Condition B, it required the applicants to receive final plan approval or final subdivision one year after receiving tentative approval. This did not happen.Additionally, there were no requests for an administrative time extension and no requests to have a time extension to the Commission and to the Council. The applicants in this case have submitted quite a thorough background of their compliance with the conditions of the ordinance, which has been distributed to the Planning Commission, as well as annual progress reports identifying the compliance with those conditions. The Planning Director is recommending that this time extension request be sent to the County Council with a favorable recommendation from the Planning Commission. Are there any questions? GRAHAM: Commissioner Siracusa? SIRACUSA: Yes. Jeff, would you explain for us please the color coding on the map. DARROW: Sure. SIRACUSA: Yellow is obvious. DARROW: Yeah. We’ll start with the yellow, the yellow is Single- Family Residential 15,000 square feet. As you can see, there have already been numerous subdivisions created in this particular area. I believe this is number five of five subdivisions in this area. The lighter colored zoning that you’ll see is Agriculture, or lighter colored green is Agricultural 1 acre. The darker colored green is Agricultural 20 acres. And then portions on the south side of the subdivision are a medium type of green which are zoned Open. We also have this particular green here which is identified as National Park. So this is actually the National Park on this area; and then up here, this is the forest reserve, this particular zoning up in this area, which isn’t colored. It’s identified by trees. GRAHAM: Commissioner Siracusa, follow-up? EXHIBIT B 2 SIRACUSA: Yes, please. I didn’t see anything in my packet about it but seeing as how it’s forest reserve on one side and National Park on the other, I’m wondering if a flora and fauna study was ever done, or environmental assessment, or did that all happen before those requirements were in place. DARROW: I’m not sure if that was done previously. It wasn’t done at this time. Maybe if I can defer that to the applicant, but it doesn’t look like it’s part of this application. GRAHAM: Jeff, could I do a little follow-up also? DARROW: Sure. GRAHAM: It’s sort of on Commissioner Siracusa’s thing. I have never really visited this area so I presume what’s shown there for roads and cul-de-sacs and all, that’s already in place.Is that correct? DARROW: Correct. These are all, they have homes. I mean it’s a fully developed subdivision in this area, as well as on this particular property infrastructure improvements have already been constructed. So there are two roads on this property. GRAHAM: Okay. And then, secondly, where is the golf course in particular? I don’t think we got any description where the golf course holes are, and the clubhouse, and all that stuff. DARROW: If I can -. GRAHAM: We’ll defer on that until the applicant? DARROW: Right. GRAHAM: Okay. DARROW: Thank you. GRAHAM: Good. Any other questions from Commissioners? All right then, if we could have the applicant come forward. Could I swear you both in now first? Do you swear or affirm to tell the truth on this matter today before the Planning Commission? HENDERSON: I do. LIM: We do. GRAHAM: Thank you. EXHIBIT B 3 LIM: Thank you, Mr. Chairman. GRAHAM: And you may go ahead, Mr. Lim, and give your name and address, please, as you begin. LIM: Thank you. Steven Lim from Carlsmith Ball representing Volcano Fairways Development Corporation. Seated to my right is Mr. Richard Henderson who is a principal of the applicant. The project here has been before the County for the last 12 years now. What happened, and with respect to some of the questions raised, the floral and fauna study I don’t believe a formal, you know, study that you see now days was conducted. This was an area that was previously graded. And we’ve passed out, I don’t know if we’ve passed out pictures to you of the subject area showing the already constructed infrastructure. Jeff will be passing them out now. As you come off of the main highway and come in towards the subject property, the golf clubhouse is located on the right. On both sides of the road in that olive green, I guess it is, are the golf course and the golf course holes. So separating the project area from the National Park zoning is the golf course; and I think you’ll be able to see some of that in those photos. GRAHAM: Thank you, Mr. Lim. LIM: Essentially what we’re here for is a request to amend the Zoning Ordinance to allow additional time to obtain final subdivision approval. Since the last timeframe ran out, the reason why that occurred was the project was very close to going for its final financing, the market at that point in time fell through the floor, lost financing, and the, one of the principals, Greg Hall, who was working on the project passed away. And so there were a lot of things that fell through the cracks. So over the past two years, Mr. Henderson has been working to get the project back up to speed. We’ve finished completion of all the infrastructure and the Department of Public Works has approved that infrastructure. We then entered into an affordable housing agreement with the County anticipating that we would be required to follow the 20 percent that is currently available now; and so we’ve done that with the Office of Housing and Community Development. And this is the last remaining item before we go for a final subdivision approval. We’ve already posted the bonding agreement for the subdivision; and so we’re asking for your support in extending the time to obtain final subdivision approval. GRAHAM: Thank you. Mr. Henderson, if you have any comments, and give your name and address first, please. HENDERSON: Yeah, I’m Richard Henderson. I live at 1101 Waianuenue Avenue, Hilo, Hawaii. And this has been a long drawn-out project. Originally the property was developed by Ernie Kai, the 1, 2, 3, and 4 unit was the original subdivision. He got into trouble and we bought the subdivision from him. It was a Bishop Estate leasehold. So in the process of acquiring the property, we went to the Bishop Estate and we bought the EXHIBIT B 4 fee. So we changed it from a leasehold subdivision to a fee subdivision. In the process of acquiring the fee, we acquired this 16.7 acres which was zoned Urban under the Land Use zoning, but was zoned Ag under the County, Ag and Open under the County zoning. So in order to get this zoned and subdivided, we had to come to the County Council; and at that time it was a real problem because the members were kind of opposed to -. This is a catchment area, the Volcano is all catchment, and there is a real big problem of getting approval of a Water Department waiver through the Council. We finally did that and we finally got involved. By the time we got involved with the actual development, the real estate market was gone and we couldn’t get the financing for the improvement. And so in the meantime Greg Hall who was our main real estate guy passed away. So the things just came to a halt. And then with the market recovering we kind of got started again. And so we’re here before you asking for the time extension so we can complete the subdivision. Actually the subdivision is completed, all we need is final approval from the Planning Director. GRAHAM: Thank you. Do you have any questions for the applicants from the Commissioners? Commissioner Siracusa. SIRACUSA: Yes. In your application you state that one of the reasons for the 10-year hiatus was that you were undergoing Board reorganization. And I was wondering, usually Board reorganization is a matter that’s under the control, you know, it’s not something you don’t have any control over. But now you’ve explained with the passing of this primary board member, that would explain some of it. But ten years’ worth? I mean, was it just that or could you be a little more clear about what the reasons for the hiatus were? I mean it seems to me the economic conditions don’t last that long, other people are able to get financing and do business. And one person’s demise can, you know, set things back for a year, maybe two, but ten years seems an extraordinary long time; and I’d like to have a fuller picture of what was involved. LIM: I think it was a combination of the market and the transition on the board. And you’ll notice the initial applicant was Hilo Shopping Center, Incorporated, which is a related -. SIRACUSA: Please speak louder, Steven, I want to hear you. LIM: I’m sorry. It was a combination of the financing, the interest rate, and the change over the board in the passing of Mr. Hall. The long period of time, I think, was partly related to the transition from the Hilo Shopping Center, Inc. entities with the Volcano Fairways Development Corporation. That took some time. I think that the market was the primary reason why. You know, Mr. Henderson is doing this primarily on his own and so he doesn’t have access to the major capital market that you see for the larger projects. So he has to be a little bit more concerned about his, you know, the feasibility of going forward. So I think until he felt that the market was sufficient to support the cost for the project that he didn’t feel comfortable going forward. And, well, two years ago I think he finally made the decision he’s going to go ahead and finish the subdivision; and that’s what he has done. So he basically put in all the EXHIBIT B 5 infrastructure, it’s ready to go; and we’ve been proactive in satisfying the current affordable housing requirement. As a part of this amendment of the zoning ordinance we’re also picking up, which we didn’t have before, the fair share contributions for about $10,000 or $11,000 per lot now, I suppose. So we’re accepting those items as part of the return to the County; and so that’s why we ask for your support. GRAHAM: Mr. Lim, and also you are okay with all of the conditions suggested by the Planning Director? LIM: We’ve reviewed the background report and the recommendation of the Planning Director and we concur. GRAHAM: Thank you. Commissioner Siracusa, follow-up? SIRACUSA: Yes. If you’ve been then putting in the infrastructure this last couple of years then please explain to me your reasoning why you didn’t at that time, why you waited until now to ask for the time extension. GRAHAM: Mr. Lim? LIM: Yes. We’ve been in discussions with the Planning Director in terms of trying to do this without going for a rezoning of the property; and we’ve been working with him over the past, over a year now, I think. But he’s made a decision that the time to get final subdivision was a condition of the change of zone ordinance and therefore he couldn’t as the administrator waive that timeframe. So, you know, try as much as we could, we weren’t successful, so that’s why we’re here today. So all of the efforts to try to, you know, to try to finish up the subdivision and do those types of things were taken, you know, by Mr. Henderson in an effort to try to push that administrative decision; but the Director felt that he couldn’t do that, so that’s why we’re here before you today. So a lot of the expenditures he has done has been, you know, pretty much on his own nickel to some degree; and we felt that that was necessary to address the concerns that you’re raising that this has been a long time. GRAHAM: Any other Commissioners have any questions? Commissioner Watanabe. WATANABE: Well, first of all, Mr. Lim, thank you for accepting the affordable housing requirements, the current ones. But I would like you to clarify something regarding the letter from Martha Lane and where she claims that, you know, a pin was relocated. And if you could clarify for the record and maybe even if you could point that out on the subdivision map. LIM: Okay. I believe Martha Lane’s property is located in this section of the pre-existing subdivision that is located next to the property. When you look at the project map, this is what we call Lot 33. It’s kind of an easy point to find on the subdivision. Mrs. Lane’s lot we believe is right around here.It’s quite near the tip of EXHIBIT B 6 this, so it’s probably here. But in any event it’s adjacent to this point on the project. So she’s contending that the subdivision has relocated this corner pin, I guess, closer to her property than she felt it should be. We checked with our surveyor, Inaba Engineering, yesterday and essentially that’s what it says on the map. You’ll see, I don’t know if you can, your copy is as big as this, but the subdivision map shows pipe and then parenthesis it says “(fd),” which means pipe is found. So that was proof from our engineer that he didn’t set that pipe. That was there already. We checked with respect to whether we as the developer and potential seller to Ms. Lane made any representations about open views and those types of things. And we were informed that this is, I guess she purchased the property approximately two or so years ago, but it wasn’t from us. And so she should talk to her surveyor and her broker with respect to these issues. GRAHAM: Follow-up, Commissioner Watanabe? WATANABE: Yeah, just one short follow-up. You know, because that pinnacle that’s sticking out is pretty narrow, would you be able to build anything in that area that might affect her viewplane? LIM: We don’t believe so. Because of the setback requirements for a house, I don’t think you could fit a house in there. And as part of our CC&Rs we checked on Lot 33 and there is a, what we call a use restriction, a special use restriction that requires that no vegetation or structures higher than 36 inches above finished grade be constructed in that area near her house. WATANABE: Okay, then I guess that would address both of her concerns then, yeah? LIM: Yeah, we hope so. GRAHAM: Thank you, Commissioner Watanabe. Any other questions from Commissioners? Commissioner Siracusa. SIRACUSA: Yes, I wanted to get back to my question about flora and fauna studies and EA; and you answered so softly. You always have such a soft voice and you don’t keep the mike right next to you, and I have hearing problems. So that’s a terrible combination. Would you please reiterate what you said about that. I think you said something about the land was already cleared but -. LIM: That’s correct. We have a -. SIRACUSA: An EA would not only address what’s on the property itself but the impact of the development on, say, the forest reserve and the National Park. LIM: Right. I think that the photos that we’re showing you indicate that the property has been graded. In the initial go-around on the rezoning, I don’t believe EXHIBIT B 7 that a formal flora and fauna study was done in large part because that area had been graded. There is no typical Chapter 343 type of environmental assessment that was done. SIRACUSA: No trigger. LIM: The photos that you can see, you’ll see these pine trees. They’re called Tsugi cedar trees. WATANABE: Tsugi? LIM: Tsugi, yeah, t-s-u-g-i, tsugi cedar trees. These are trees that are specifically called out in the CC&Rs for preservation as much as possible. And those are really the only things that have been growing above the brush that has come up, the ginger and the pasture grass. So, you know, in terms of the impacts on the potential flora and fauna, I think in this area that was probably graded over long ago. And the presence of the Volcano Golf course just on the, I guess that’s the south side, yeah, south side of the project, all along the south side of the project would mitigate against any impacts on the National Forest. GRAHAM: Thank you, Mr. Lim. One more, Commissioner Siracusa? SIRACUSA: Yeah. I’m not Iwashita, by the way. GRAHAM: Did I say that wrong, I’m sorry. SIRACUSA: Yeah. That’s okay. GRAHAM: Sorry. SIRACUSA: We have a letter here from Stewart and Alexandria Hussey. Did you receive that in your file this morning? LIM: Yes. We just got a copy of that. And after having spoken -. SIRACUSA: Have you had a chance to look it over? LIM: Yes, we have. SIRACUSA: She is making some, well, she, they expressed their support but they have some concerns. And she lists three things that they would like to see in the conditions. And I would like to have your take on those items. LIM: I think we can do these three, well, the first two things we can do just on our own. And, you know, we’ve just received this, we hadn’t heard any word from the Husseys. We know who they are; and I think Mr. Henderson and his representatives will be talking to the Husseys after this hearing to assure them that they, EXHIBIT B 8 we’ll notify them as to what’s happening. There shouldn’t be any further dust mitigation issues because all of the construction infrastructure has been completed and approved by the Department of Public Works. The last issue is an emergency access roadway from the Volcano Golf and Country Club development out to the road. This has been an on- going issue that is currently being worked on by the County Civil Defense and the Volcano Golf and Country Club Community Association. SIRACUSA: Has a footprint for that emergency road been determined yet? LIM: No. SIRACUSA: Oh, cause I was going to ask you if it was to show it to me on the map. Okay. But Civil Defense is working with them on that? LIM: That’s correct. The last I heard on it was any potential access wasn’t going to be through this subdivision. SIRACUSA: Okay, no more questions. GRAHAM: Thank you, Commissioner Siracusa. Commissioner Watanabe? WATANABE: Is it appropriate to make a motion now or should we -? GRAHAM: Well, hold on for a second. Any other questions for the applicant at this time? All right, well, thank you both for your testimony. You may be seated back. LIM: Thank you. GRAHAM: And, again, I’ll ask the public if there’s anyone here from the public that wishes to give any testimony on this, come forward right now, cause we don’t have anyone signed up. All right, then I think we’re open to a -. DARROW: Mr. Chair? GRAHAM: Excuse me a second. Mr. Darrow? DARROW: Thank you, Mr. Chairman. Before we go any further, I’d like to introduce a few items into the record. Since the application was sent out to the Planning Commission, we have received several correspondences; and I just want to bring those into the record. They include emails from Kim Tavares, and also included in that email was a forward from John Schinnerer, I’m not sure if I’m pronouncing that right; and also an email from John Lyle, along with a response from the applicant to Mr. Lyle. Additionally, we received comment letters from the Police Department, Fire Department, Department of Water Supply, and the Office of Housing and Community Development. And then more recently we received the letter from Martha Lane; and this morning we EXHIBIT B 9 received the fax from Stewart and Alexandria Hussey, just introducing those into the record. Thank you. GRAHAM: Thank you, Jeff. Commissioner Watanabe? WATANABE: Before I make a motion, I’d like to move that we close the hearing. WOODWARD: Second. WATANABE: Moved by Commissioner Watanabe, seconded by Commissioner Woodward, to close the hearing. All in favor say aye. COMMISSIONERS: Aye. GRAHAM: Any opposed? All right, the hearing is closed then. Go ahead Commissioner Watanabe. WATANABE: I move that we forward a favorable recommendation to the County Council for Change of Zone Ordinance No. 94 98, REZ 769 as revised by the Planning Director and based on his recommendations. DOMINGO: Second. GRAHAM: All right. Thank you. Moved by Commissioner Watanabe, seconded by Commissioner Domingo, that we send a favorable recommendation. Any comments on the motion? Any other comments from the Commissioners? Jeff, go ahead. DARROW: Thank you, Mr. Chairman. The motion before us is to send a favorable recommendation on the applicant’s request for a time extension for Condition B of Ordinance 94-98. With that I’ll take the roll call. Commissioner Watanabe? WATANABE: Aye. DARROW: Commissioner Domingo? DOMINGO: Aye. DARROW: Commissioner Ogata? OGATA: Aye. DARROW: Commissioner Siracusa? EXHIBIT B 10 SIRACUSA: Aye. DARROW: Commissioner Woodward? WOODWARD: Aye. DARROW: And Mr. Chairman? GRAHAM: Aye. DARRROW: The motion passes six to zero. GRAHAM: Thank you, Jeff. Thank you, Mr. Lim. LIM: Thank you. The discussion ended at 9:47 a.m. Respectfully submitted, Sharon M. Nomura, Secretary EXHIBIT B 11