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HomeMy WebLinkAboutPD RECOMMENDATION REPORT (PL-SPP-2022-000018) RAhuPohakuHoomaluhia AmendSPP.-12/20/22 COUNTY OF HAWAII PLANNING DEPARTMENT RECOMMENDATION AHU POHAKU HO`OMALUHIA LLC (FORMERLY ROBERT WATKINS AND JEAN SUNDERLAND) AMENDMEMT TO SPECIAL PERMIT No. 1117(PL-SPP-2022-000018) Upon careful review of the request against the guidelines for granting an amendment to a Special Permit, the Planning Director recommends that the request to increase the number of guest rooms from sixteen to thirty-six by constructing twenty additional guest rooms at Hawaii Island Retreat, on an approximately 5.0-acre portion of a 14.5-acre parcel of land situated in the State Land Use Agricultural District 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 findings: The applicant is requesting to amend the existing Special Permit (SPP No. 1117), originally approved by the Planning Commission on August 2, 2001, to allow a 16-room permaculture and wellness retreat on an approximately 5.0-acre portion of a 14.5-acre parcel of land situated in the State Land Use Agricultural District. The applicant wishes to increase the number of guest rooms from 16 to 36 by building 20, 400-square foot hales with the goal of offering guests the option of single-occupancy rooms. The new hale structures will be sited in a manner that does not disrupt or impact the existing garden and orchards. According to the applicant, there will be up to 5 new full and/or part-time employees and the projected cost of the additional 20 units is $1.8 million. Building plans will be prepared upon approval of the requested amendments, with construction of 10 of the 20 units commencing no later than 18 months after approval, and construction of the remaining 10 units commencing approximately 5 —6 years after approval. The grounds for approving a Special Permit are based on Rule 6-7 in the Planning Commission Rules. It states that the Planning Commission shall not approve a Special Permit unless it is found that the proposed use (a) is an unusual and reasonable use of land situated within the Agricultural or Rural District, whichever the case may be; and(b) the proposed use would promote the effectiveness and objectives of Chapter 205, Hawaii Revised Statutes, as amended. As the applicant is proposing to amend the scope of the use, the request has been analyzed as if it were a new Special Permit request. The proposed use is an unusual and reasonable use of land situated within the State Land Use Agricultural District and would promote the effectiveness and objectives of the State Land Use Law and Regulations and Chapter 205, HRS, as amended. In recognizing that lands within agricultural districts might not be best suited for agricultural activities and yet classified as such, and in recognition that certain types of uses might not be strictly agricultural in nature, yet reasonable in such districts, the legislature has provided for the Special Permit process to allow certain unusual and reasonable uses within the Agricultural district. The request is unusual in that the proposed use is not strictly agricultural in nature. The permit area is a 5-acre portion of the 14.5-acre subject property, and the applicant states that additional guest rooms will stay within the existing 2-acre portion of the permit area presently used for the retreat center. Comments from the Office of Planning and Sustainable Development expressed concern that the 3 remaining acres of the permit area set aside for agriculture shall be preserved. As such, a condition of the permit will require that 3 acres of the 5-acre permit area be maintained for productive agricultural uses. Thus, the proposed use is an unusual and reasonable use of land situated in the State Land Use Agricultural District. In addition to the above listed criteria, the Planning Commission shall also consider the criteria listed under Section 6-3(b)(5) (A) through (G). In considering the criteria, the Planning Director recommends the following: (A) Such use shall not be contrary to the objectives sought to be accomplished by the Land Use Law and Regulations. The State Land Use Law and Regulations are intended to preserve, protect, and encourage the development of lands for those uses to which they are best suited in the interest of the public welfare of the people and the State of Hawaii. In the case of the Agricultural District, the intent is to preserve or keep lands of high agricultural potential in agricultural use. Although the soils on the -2- property are classified by the Land Study Bureau's rating system as class "C" or"Fair" and"E" or"Very Poor" soils for agricultural productivity, they are designated Prime Agricultural Lands and Other Important Agricultural Lands on the ALISH map. A condition of approval required the applicants to develop an agricultural plan that sets aside a minimum of 3 acres of the 5-acre permit area to be developed for agricultural uses. The applicant is proposing to construct the additional guest rooms in a manner that preserves existing agriculture, thus they should not displace any existing agricultural activity or diminish the agricultural potential of the property. As evaluated above, the applicants' request is considered an unusual and reasonable use of agricultural land that will not adversely affect the preservation of lands with high agricultural potential in the County of Hawaii. Thus, the establishment of the proposed use will not be contrary to the objectives sought to be accomplished by the State Land Use Law and Regulations. (B) The desired use would not adversely affect surrounding properties. Surrounding land uses in the immediate vicinity consist primarily of pasture, agriculture, and residential uses, with the closest dwelling located approximately 400 feet mauka of the permit area. The applicant has proposed siting the new guest rooms adjacent to existing landscaping which should provide some visual screening from neighboring properties. Once the additional guest rooms are in use, the applicant expects there to be a minor increase in traffic on Maluhia Road and Lokahi Road, however they do not expect the traffic to affect Akoni Pule Highway given the relatively small increase in use. Based on the applicant's statement regarding an established preference by retreat guests for single-occupancy rooms, it is likely that overall guest numbers will not significantly increase, rather guests who previously had to share a double-occupancy room can now reserve their own. The Planning Department has received public comments from adjacent landowners expressing concerns about the impacts of increased use of the access roads, including exacerbation of dust issues and unsafe conditions resulting from cars speeding on the roads. On January 19, 2023, the Leeward Planning Commission granted standing -3- to participate in a contested case hearing to Petitioners Charles A. Anderson, EWM Enterprises, LP, and Kohala Makani Kai, LLC. The Parties held a mediation conference and came to an agreement with amendments, dated December 18, 2023. Based on this agreement the Planning Director recommends a revision to the original Condition No. 6 of SPP 1117, to address the petitioner's concerns about impacts to the access roads, and recommends adding Conditions No. 3 and 11, to establish a setback from the petitioner's property line and to require removal of an existing wind turbine on the subject property. Also based on the agreement, on July 12, 2023, Charles A. Anderson, EWM Enterprises, LP and Kohala Makani Wai, LLC withdrew their petitions for standing in a contested case hearing. The Planning Director feels that given the preceding, the applicant has shown willingness to work with surrounding neighbors to address concerns with vehicular traffic on the access roads and will continue to address issues as they arise. In accordance with the original Condition No. 11 of SPP 1117, if the applicant is unable to resolve complaints relating to interference or nuisance with the surrounding community, the Planning Director shall investigate and, if necessary, suspend the permit. Additionally, to address complaints and issues from a Notice of Violation issued in 2015, the Planning Director is recommending a condition be included to prohibit the subject property from being used for weddings. (C) Such use shall not unreasonably burden public agencies to provide roads and streets, sewers, water, drainage, school improvements, and police and fire protection. The subject property is currently served by a 5/8-inch water meter, which is limited to one unit of water with an average daily usage of 400 gallons. According to the Department of Water Supply(DWS), the average daily water usage over the past two years has been approximately 4,100 gallons per day, far exceeding the capacity of the existing meter. Additionally, DWS notes that current water availability conditions in the area is limited to one unit of water per existing lot of record. The applicant has responded to DWS by noting that the high water usage rate was due largely to recent drought conditions requiring County water for agricultural activities. To address agricultural water needs, the applicant has installed sprinklers and drip lines, -4- and plans to construct a non-potable well, both of which the applicant believes should reduce use of County water. Additionally, as previously mentioned, the new guest rooms will likely be primarily single occupancy and should not significantly increase potable water demand. Based on the preceding, the Planning Director recommends a condition be added to the permit to limit use of the County potable water to an average of 400 gallons per day and provide any additional potable water from on-site potable water storage tanks. The applicant proposes to install additional septic system(s) to address the wastewater needs of the additional guest rooms. In an email dated November 25, 2022, the Department of Health(DOH) indicated that the additional individual wastewater systems could negatively impact the ocean due to proximity and soil type,however, despite attempts to follow up by the applicant, DOH has not specified a preferred method of wastewater disposal. According to the applicant, they will comply with DOH requirements if the proposed septic tanks are deemed insufficient during the building permit process, including the potential installation of an anaerobic septic system. A condition of approval will be included requiring that the applicant install a wastewater treatment and disposal system meeting with the approval of DOH. (D) Unusual conditions, trends, and needs have arisen since district boundaries and regulations were established. In the 1960's and 1970's, the State's agricultural district boundaries and regulations were established and subsequently amended pursuant to HRS Chapter 205. Since then, demand has increased for alternative health and wellness tourism for guests who seek a more peaceful, remote environment as an alternative to resort venues. The amendment request would meet this demand by increasing availability of accommodations for visitors seeking such an alternative that incorporates agricultural uses into the healing and wellness experience being offered by the existing retreat center. (E) The land upon which the proposed use is sought is unsuited for the uses permitted within the district. While this criteria for approval of a Special Permit seeks to utilize "unsuitable" agricultural lands for non-agricultural uses, the Planning Department recommended approval for the original Special Permit based on the notion -5- that certain non-agricultural uses may be appropriate on lands suitable for agriculture. As part of the amendment request, the applicant states that the retreat center will continue operating with a balance of co-existing agricultural and non-agricultural uses including trainings offered on sustainability and gardening and food grown on site being provided to guests. Furthermore, as noted previously, the applicant will maintain 3 acres of the permit area for agricultural uses. The Planning Director is supportive of this balanced approach to maintain the cultivation and productivity of agricultural lands while increasing the number of available guest rooms. (F) The use will not substantially alter or change the essential character of the land and the present use. The subject property has been used as a retreat center for 13 years, with the Special Permit originally being granted in 2001. Current agricultural uses on the land will not be diminished by the additional guest rooms given that the applicant has proposed to maintain existing orchards and crops and continue to integrate agricultural activities into the operations of the center, such as by serving food grown on the property to retreat participants. Additionally, the new guest rooms, designed as single-story, 400-square-foot hales, will be sited adjacent to existing gardens and orchards, including mango,banana, lemons, oranges, grapefruit, lilikoi, ti, and vegetable plots. Given the preceding, the proposed use will not substantially alter or change the essential character of the land or its present use. (G) The request will not be contrary to the General Plan,North Kohala Community Development Plan (CDP) and other documents such as Design Plans. The County of Hawai`i's General Plan is the policy document for the long-range comprehensive development of the island of Hawaii. One of the purposes of the General Plan is to guide the pattern of future development in this County based on long-term goals. The General Plan Land Use Pattern Allocation Guide (LUPAG) Map designates the subject property as Important Agricultural Land and Open, however the proposed work is within the area designated Important Agricultural Land. As previously stated, the 5-acre permit area presently includes 3 acres of agricultural land planted with fruit trees, Hawaiian medicinal plants, and organic -6- vegetable gardens, which will be maintained with the proposed development. Thus, the proposed use will support many of the agricultural land use policies of the General Plan and North Kohala CDP including the following policies: General Plan-Land Use-Agricultural Policy - Ensure that development of important agricultural land be primarily for agricultural use. North Kohala CDP Strategy 1.4 - Promote and support a community of diversified agriculture. Additionally, the proposed use complements the following land use goals and policies of the General Plan: Land Use - Designate and allocate land uses in appropriate proportions and in keeping with the social, cultural, and physical environments of the County. - Encourage the development and maintenance of communities meeting the needs of its residents in balance with the physical and social environment. Finally, the North Kohala CDP addressed special permits allowing overnight accommodations, such as "retreats," and raised concerns about negative impacts that such developments may have on the area's limited infrastructure and small-town feel. While the CDP reflected community sentiment in 2008 in recommending that special permits allowing large-scale overnight accommodations not be approved, the Planning Department has received testimony from the Acting Chair of the Growth Management Group of the North Kohala CDP Advisory Group (now the Kohala Community Access Group or KCAG) stating current support of the amendment request. The reasons cited include unobtrusive siting of the additional guest rooms, community benefits in the form of job opportunities and shoreline public access, continued agricultural uses, and the ability to provide a distinct experience for visitors that reflects the character of the Kohala District. The letter further stated that KCAG would like to review the recorded Public Access Plan and suggest any changes that may be needed, which subsequently occurred in March and April of 2024. The applicant drafted amendments to the public access plan, -7- which will be addressed by conditions of the recommendation regarding the request to amend SMA 417. Given the preceding, the request will not be contrary to the General Plan and North Kohala Community Development Plan. The proposed use is not contrary to the objectives sought to be accomplished by Chapter 205A, Hawaii Revised Statutes, relating to coastal zone management program. The Special Management Area (SMA) is part of the Coastal Zone Management Program, regulated by the County. The subject property is located in the SMA and the applicant has concurrently applied to amend their existing SMA Use Permit for which the Planning Director is also recommending approval as the proposed use meets the criteria for granting an SMA Permit. The request will not have a significant adverse impact to traditional and customary Hawaiian Rights. In 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. These rights must be addressed in terms of the cultural, historical, and natural resources and the associated traditional and customary practices of the site. Investigation of valued resources: An archeological assessment of the subject property, including the permit area, was done by Haun and Associates on February 16, 2001. Additionally, a botanical survey of the subject property was conducted on February 12, 2001. The valuable cultural, historical, and natural resources found in the area: The archeological assessment concluded that no historic or prehistoric artifacts or structures were observed on the proposed building sites. The Lincoln Family Burial Site is located near the subject property, to which access is provided in accordance with the recorded public access plan. By letter dated October 5, 2022, the State Historic Preservation Division (SHPD) indicated that a previous project review resulted in a"no historic properties affected" determination and that due to the impacts on the permit area by the development of the existing retreat center, it is unlikely that any unidentified historic -8- properties remain intact within the permit area and SHPD noted no objection to the approval of the present request. The botanical survey noted that endemic or indigenous species of plants found within the general area were situated within the Conservation District and not within the permit area. At that time, the study concluded that the establishment of the retreat center would not impact existing endemic and indigenous plants. According to recent comments from the State Department of Land and Natural Resources, Division of Forestry and Wildlife (DOFAW), the Hawaiian Hawk(`Io) Hawaiian Goose (Nene), Hawaiian Stilt, Hawaiian Coot, Hawaiian Duck, Hawaiian Hoary Bat(Ope`ape`a), and Blackburn's Sphinx Moth may occur in the project vicinity. Possible adverse effects or impairment of valued resources: Some vegetation may be destroyed by construction of the additional guest rooms, but there is no evidence of adverse effects or impairments to valued resources. Feasible actions to protect native Hawaiian rights: Adherence to the requirements of the public access plan will continue to ensure access to the shoreline for fishing and gathering, along with access to the existing burial area nearby the subject property. Should any unidentified cultural or historical resources be encountered during construction activities, a condition of approval requires the applicant to cease work until SHPD finds that sufficient mitigation measures have been taken. An additional condition of approval will be included, to address recommendations from DOFAW regarding protection of listed or endangered species and avoiding the spread of invasive species and pathogens. Lastly, this recommendation 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 -9- will be considered a violation that may result in enforcement action by the Planning Department and/or the affected agencies. Based on the above considerations, the proposed request to increase the number of guest rooms from sixteen to thirty-six by constructing twenty additional guest rooms at Hawaii Island Retreat is an unusual and reasonable use of land in the Agricultural district and would promote the effectiveness and objectives of Chapter 205, Hawaii Revised Statutes. Approval of this request is subject to the following conditions: 1. The applicants, successor or assigns (Applicant) shall be responsible for complying with all stated conditions of approval. 2. The number of additional guest rooms shall be limited to a maximum of 20. The proposed addition to the existing retreat shall be established within five (5) years from the effective date of this amended permit. Prior to establishing this use, the [ams] Applicant shall secure Final Plan Approval from the Planning Director in accordance with the Zoning Code, Sections 25-2-7l(f), 25-2-72, 25-2-76 and 25-2-77. Plans shall identify all existing and proposed structures, fire protection measures, potable water sources, parking area(s), access driveway(s) and landscaping associated with the proposed use. [The ffpplieat4s shall tielify the Planning Depaftffienf, in , of the fit.] shall 7 bttt not be lifflited 7 the Kehala Hawaiian Civie 1 Na"ttli-a L L' 3. All new structures directly related to the expansion of the retreat and which adjoin TMK No. 5-4-009:005 will have a minimum l 00-foot setback from the property line. -10- 4. The construction of the retreat and the operation of all of its related facilities and activities shall be conducted in a manner that is substantially representative of plans and details as contained with the Applications for Special Management Area Use Permit and Special Use Permit, Proposed Hawaiian Permaculture and Wellness Retreat dated March 2001. Additionally, construction and operation of the additional guest rooms shall be conducted in a manner that is substantially representative of plans and details contained in the Applications to Amend Special Management Area Use Permit No. 417 and Special Permit No. 1117 received by the Planning Department on June 14, 2022, additional information dated December 30, 2022, and representations made to the Leeward Planning Commission. 5. Weddings shall be prohibited on the subject property. [m]6. site, Meeting wit-h the J a*y poftion of the proposed fetfe4. The agfietfltufal plan shall 7 a4 a J ] Pursuant to the approved agricultural plan, the Applicant shall, at a minimum, continue agricultural cultivation of three(3) acres of land within the 5-acre permit area. [6-.]7• [Aeeess f6f the pr-ejeet ffeffi the Akeiii Pule Highway shall be othef than utiiaii Mill Road. Said dfiveway ae-eeess sh-A-11-be impr-oved, meeting with the appr-oval of the St J ]Prior to issuance of a certificate of occupancy for any additional Vuest rooms, a.) the Applicant shall make the following improvements to the following three roads: Lokahi Road 1.) Improve the existingtwenjy (20) foot wide gravel road with a sixteen (16) foot wide asphalt pavement and a two (2) foot compacted gravel shoulder on each side for a total improved width of twent.T�) feet. 2.) Install speed humps within the paved section of the road at a minimum of one every 300 feet or at a distance agreed upon by the property owners of TMK Nos. (3) 5-4-009:005, 5-4- -11- 009:010, 5-4-009:011, 5-4-009:012 and 5-4-009:013. 3.) Install appropriate and typical traffic-related signage within the road right-of-way such as road markings, speed limit, upcoming speed humps, no passing zone, etc.; Maluhia Road 1.) Install additional two (2) foot wide compacted gravel shoulders to widen existing seventeen(17) foot wide paved roadway to the extent that this installation will not potentially damage or require relocation of existing water lines. 2.) Install appropriate and typical traffic-related signage within the road right-of-way such as road markings, peed limit, upcoming humps, no passing zones, etc. 3.) Install si nnaage which states "Dangerous Drop Off Proceed with Caution" and reflective markers on steel posts which are approximately six (6) feet above ground and installed approximately every fifteen (15) feet along approximately 300 feet of Maluhia Road which borders or is adjacent to the Hanaula Gulch; Old Pratt Road (between Maluhia Road and Lokahi Road) 1.) Install a sixteen (16) foot wide paved road plus two (2) foot wide compacted gravel shoulders on each side for a total improved width of twenty (20) feet. 2.) Install appropriate and typical traffic-related signage within the road right-of-way such as road markings, speed limit, upcoming speed humps, no passing zone, etc.; b.)Applicant will assume responsibility for conducting a minimum quarterly maintenance of the three roads, including mowing and tree trimming, as needed, and performing repairs to the pavement and gravel shoulders of the roads. The roads shall be kept free from pine needles and other debris by sweeping/blowing and trimming of ironwood and other trees along roads; c.) Applicant will add the property owners whose property the three roads (Maluhia Road, Lokahi Road and Old Pratt Road between Maluhia Road and Lokahi Road) traverse and the property owners of TMK Nos. (3) 5-4-009:001, 5-4-009:005, 5-4-009:10, 5-4-009:011, 5-4-009:012, 5-4-009:013, 5-4- 009:015, 5-4-009:017, 5-4-009:018, 5-4-009 :019, 5-4-009:024, 5-4-009:025, 5-4- 009:026, 5-4-009:028, 5-4-009:029 (the "Additional Insureds") who have easement rights on Maluhia Road as additional insureds on Applicant's liability insurance. Such insurance shall be comprehensive general liability insurance (including personal injury and property damages from automobile accidents) with an A rated company in minimum amounts of at least $1,000,000 per person and $3,000,000 per occurrence. The Additional Insureds shall be entitled to notice of cancellation or non-renewal under the policy or policies. -12- Applicant shall provide each of the Additional Insureds copies of the initial certificates of insurance and all renewal certificates of insurance within ten (10) days of issuance. [-7-.]S. The [mss] Applicant, in consultation with the Fire Department, shall provide for the fire-flow needs of the proposed retreat, including the additional guest rooms. 9. Prior to issuance of a certificate of occupancy for any additional guest rooms, the applicant shall provide on-site water storage for potable water needs exceeding the average 400 gallon per day capacity of the existing Department of Water Supply water meter. [x]10. [Septie tanks and soil absafpfian systems field may be used in liett of an Refebie septie systefft with leaeh field fat:Et 16 Foom Hawaiian Pet=mEtettittife Effid Weliftess Retfea+. The "plieattts shall ffieet all appheable pfevisieii of Hawaii Adffiiiiistfative Rules, Chap 11 62.] Prior to issuance of a certificate of occupancy for any additional guest rooms, the applicant shall install wastewater disposal systems for the additional ,guest rooms, meeting with the approval of the Department of Health. 11. The Applicant shall take down the wind turbine installed on Applicant's property by March 15, 2024. 12. All development-generated runoff shall be disposed of on site and not directed toward any adjacent properties. 13. All earthwork and grading. activity shall conform to Chapter 10, Erosion and Sediment Control of the Hawaii County Code. [#-.]14. [ > of ehafeeal deposits, human buf > > warAE when it rinds thM s„rr;,iefA fnit , ati;.o me os have i ee +^ ]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 -13- construction work, the Applicant shall 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. 15. Should any state or federally listed or endangered species be found on the subject property, the Applicant shall comply with all applicable requirements of the Department of Land and Natural Resources-Division of Forestry and Wildlife and/or the United States Fish and Wildlife Service. [4-0-.]16. Comply with all other applicable laws, rules, regulations and requirements of the affected government agencies for the proposed use, including those of the Department of Health and the Fire Department. [44-.]17. If the [ams] Applicant fails to comply with the conditions of approval or causes complaint(s)relating to any interference or nuisance and is unable to resolve them with the surrounding community, the Planning Director shall investigate and, if necessary, suspend the permit. The Planning Director shall then refer the matter to the Planning Commission to revoke the permit. Upon appropriate findings by the Planning Commission, if the [wants] Applicant fails to comply with the conditions of approval or has caused any unreasonable interference or nuisance on the surrounding community, the permit may be revoked. [4-2--.]18. An initial extension of time for the performance of conditions within [t4e]this amended permit may be granted by the Planning Director upon the following circumstances: A. Non-performance is the result of conditions that could not have been foreseen or are beyond the control of the [applieants] 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. Granting of the time extension would not be contrary to the original reasons for the granting of the permit. -14- 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). 19. 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. -15-