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Home My WebLink About2024-03-15 PL-REZ-2022-000033 LUC Agenda and Meeting Minutes DeVera, Ashley From: Daryn Arai <Daryn.Arai@outlook.com> Sent: Friday, March 15, 2024 2:11 PM To: Planning Internet Mail Cc: Roland Higashi; Richard Wheelock; Robert G. Williams; Michael Matsukawa; Jackson, Maija; Kay, Christian Subject: PL-REZ-2022-000033 Kona Three LLC - Agenda and Minutes of the State Land Use Commission hearing regarding LUC Docket A83-549 Attachments: A83-549-Kona-Vistas-2024-02-07-Meeting-Minutes.pdf Aloha Director Kern. As part of the record associated with the above-described docket regarding Kona Three LLC's request to amend Ordinance No. 02-131, we would like to include the attached minutes of the State Land Use Commission's status and progress report meeting regarding its Decision and Order affecting the project site. Daryn Daryn Arai Land Use Planning Consultant Mobile: (808) 895-3218 �'$ X959 +a h'9� NOTICE OF MEETING LAND USE COMMISSION In-Person Meeting AGENDA DATE: February 7, 2024 TIME: 9:30 a.m. LOCATION: West Hawaii Civic Center, Community Meeting Hale, Building G 74-5044 Ane Keohokalole Highway, Kailua-Kona, HI 96740 I. Call To Order II. Approval of Minutes for December 6, 2024 Ill. Tentative Meeting Schedule IV. A83-549 Kona Vistas LLC (Hawai`i) Status and progress report and action (if necessary) in response to the 2022 annual report. Approximately 173.66 Acres, Identified by Tax Map Key No. 7-6-21: 4, 9, 10, 11, 12, 13, 15, 16 and 17 at Holualoa First and Second, North Kona, Hawaii. V. Adjournment Public Testimony. You may submit written testimony Online: https://luc.hawaii.gov/testimony, Fax: (808) 587-3827, Email: dbedt.luc.web@hawaii.gov, or Mail:State Land Use Commission, P.O. Box 2359, Honolulu, HI, 96814-2359. To ensure the Commissioners have time to review your written testimony,we suggest that it reaches us at least 24 hours before the meeting. If you intend to provide oral testimony,you must attend the meeting in person at the meeting location indicated on the meeting agenda. For more information about testifying at LUC meetings, please visit our website: https://luc.hawaii.gov/21843. Executive Session. During the scheduled meeting,the Commission may elect to consult with its legal counsel in executive session pursuant to HRS§92-5. Special Assistance. If you need an auxiliary aid/service or other accommodation due to a disability, please contact the State Land Use Commission at(808) 587-3823 or dbedt.luc.web@hawaii.gov as soon as possible. Requests made as early as possible have a greater likelihood of being fulfilled. Upon request,this notice is available in alternate/accessible formats. Meeting Materials. Meeting materials for this meeting are available for public review on the LUC website at http://luc.hawaii.gov or at the LUC office located on O'ahu at 235 S. Beretania Street,Suite 406, Honolulu, HI 96813 pursuant to HRS §92-7.5. Page 1 of 1 LAND USE COMMISSION MEETING MINUTES February 7th, 2024—9:30 a.m. Pursuant to Hawai`i Revised Statutes, HRS §92 as amended, the Commission conducted its meeting in person. Interested persons submitting written testimony were recommended to submit their written Statements 24 hours in advance of the meeting to allow for distribution to the Commission prior to the meeting. IN PERSON: West Hawaii Civic Center, Community Meeting Hale, Building G 74-5044 Ane Keohokalole Highway, Kailua-Kona, HI 96740 YOUTUBE RECORDING: (https://www.voutube.com/watch?v=Vv7 "'::" '•.7) COMMISSIONERS PRESENT: STAFF PRESENT: Dan Giovanni Daniel Orodenker, Executive Officer(zoom) Lee Ohigashi Scott Derrickson, Chief Planner Gary Okuda Martina Segura, Staff Planner George Atta Ariana Kwan, Chief Clerk Melvin Kahele Julie China, Esq. Deputy Attorney General Ku`ike Kamakea-`Ohelo Michael Yamane COURT REPORTER: Nancy Carr Smith Naegeli Deposition and Trial (Via Zoom Recording) CALL TO ORDER (YouTube: 00:00:06) Chair Dan Giovanni called the meeting to order at 9:30 a.m. APPROVAL OF THE MINUTES (YouTube: 00:03:25) The first agenda item was the approval of the December 6th, 2023, Minutes. There was no written testimony, or members of the public who wished to testify on the approval of the Minutes. Commissioner Ohigashi moved to adopt the December 6th, 2023, Minutes, and Commissioner Yamane seconded the motion. December 6th, 2023, Minutes were approved with 8 ayes, 0 nays, 1 excused. TENTATIVE MEETING SCHEDULE (YouTube: 00:04:23) Chair Giovanni called for Land Use Commission Staff to provide the Tentative Meeting Schedule. Chief Planner, Scott Derrickson provided the following tentative meeting dates, and cautioned the Commissioners not to plan to release the remaining days due to upcoming items: March 6, 2024: A92-683 Halekua Development (O`ahu) March 7, 2024: Litigation Update and Rule Postponement (O`ahu) May 8, 2024: A92-686 AMFAC/HHFDC (Maui) May 9, 22-23, 2024: SP09-40 Waimanalo Gulch (O`ahu) LUC Meeting Minutes February 7, 2024, Kona Vistas(Hawai'i) See LUC Meeting Transcripts for further details Page 1 of 3 A83-549 Kona Vistas LLC (Hawai`i) (YouTube: 00:07:20) Status and progress report and action (if necessary) in response to the 2022 annual report. Approximately 173.66 Acres, Identified by Tax Map Key No. 7-6-21: 4, 9, 10, 11, 12, 13, 15, 16 and 17 at Holualoa First and Second, North Kona, Hawaii. Appearances Office of Planning and Sustainable County Development("OPSD") Jeffery Darrow, Deputy Director of Planning Katia Balassiano, Program Administrator Michelle Ahn, Esq. Deputy Corporation Counsel Allison Kato, Esq. Deputy Attorney General (zoom) Susan Kuntz, Housing Administrator Petitioner Daryn Arai, Land Use Consultant Michael Matsukawa, Counsel Public Richard Wheelock, member of Kona Three LLC David Blancett-Maddock Robert Williams, member of Kona Three LLC Diane Blancett-Maddock Roland Higashi, member of Kona Three LLC Mark Van Pernis Renee Inaba Joel Gimpel John Powell Brandon Busch Lamaku Mikahala Roy Janice Kerr Douglas Cichowicz Craig Bo Kahui Hiram Rivera Cheryl Tanguay Disclosures (YouTube: 00:13:24) Commissioner Okuda disclosed that eight years ago when he was nominated to be a commissioner, he asked Michael Matsukawa to explain the fundamentals of land use law. Additionally, Okuda disclosed that he was involved with an action with Matsukawa's brother, but stated neither of these representations have financial interest, or would affect his ability to be fair and objective regarding this Petition. There were no objections to his continued participation. During the public testimony portion of the hearing, Commissioner Okuda disclosed his previous work with Mark Van Pernis, and there were no objections to his continued participation. Later in the hearing, Commissioner Atta recognized Mr. Wheelock, and disclosed that he had done work with Mr. Wheelock in the past on projects on `Oahu. There were no objections to his continued participation (YouTube: 02:16:20). Public Testimony Round One (YouTube: 00:19:05-01:32:27) The Land Use Commission received 15 written testimonies prior to the start of the meeting from the public on this matter. Chair Giovanni opened the meeting up for testimony on the matter, and there were 12 members of the public who provided testimony. Ten of the testifiers were in opposition to the project's continuation, and two members of the public testified in support. Testifiers included David Blancett-Maddock, Diane Blancett-Maddock, Mark Van Pernis, Renee Inaba, Joel Gimpel, John Powell, Brandon Busch, Lamaku Mikahala Roy, Janice Kerr, Douglas Cichowicz, Craig Bo Kahui, and Hiram Rivera. LUC Meeting Minutes February 7, 2024, Kona Vistas(Hawai`i) yr_; See LUC Meeting Transcripts for further details Page 2 Of 3 NO USE COMMISSION Presentations (YouTube: 01:32:43) Daryn Arai presented the petitioners status update and included updates on the Petitioners efforts at the County level. Commissioners questioned the Petitioners on the amount of affordable housing units to be built by Petitioner, the obligation of building the 22 affordable housing units, county proceedings, and the intentions for building and the timing of building. The County of Hawaii presented that Planning Director Zendo Kern has been "walled off" from this matter because of his involvement during his previous work, the prior agreement for affordable housing met expiration after seven amendments, and the status of the planning departments decisions and actions. Commissioners questioned the County on the development timing of the affordable housing units, determination for the location of the affordable housing, and amendments to the zoning (YouTube:02:23:43). The Office of Planning and Sustainable Development presented that the Petitioners and County's presentation is sufficient in providing and update and shows the Parties are working towards competition of the conditions set by the Commission. Commissioners questioned the OPSD on the traffic in the area and the State Department of Transportation's input on the project, questions on the process and concerns of the community, and the willingness to meet with the community members who shared concerns (YouTube:02:54:23). Petitioners' final rebuttal included that the chapter 343 and county council action processes included public input and notification, the county council dictates the criteria of the development, standing, development style and intention of the affordable housing, and the inapplicability of short-term rentals (YouTube:03:04:20). Public Testimony Round Two (YouTube: 03:14:00) Once again, Chair Giovanni opened the meeting up for public testimony on this matter, and there were nine members of the public who provided testimony with concerns and opposition to the project's continuation. Testifiers included David Blancett-Maddock, Diane Blancett-Maddock, Cheryl Tanguay, Mark Van Pernis, Renee Inaba, Joel Gimpel, John Powell, Janice Kerr, and Douglas Cichowicz. Deliberations (YouTube: 03:51:50) The Commission believes that the Petitioner met their burden to provide a status report. The Commission requests on the record that the Petitioner provide updates regarding the status of the County Planning Commission and Council process and proceedings, resolutions involving the State, as well as the continuation of annual report filings. ADJOURNMENT(YouTube: 04:03:16) With no further business the meeting was adjourned at 2:20 p.m. LUC Meeting Minutes February 7, 2024, Kona Vistas(Hawai`i) See LUC Meeting Transcripts for further details Page.3 Of 3 NO USE COMMISSION.