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HomeMy WebLinkAboutPD BACKGROUND AND RECOMMENDATION REPORT BR-CCInitiated-Bi11127-Timed Conditions for Rezones41224 COUNTY OF HAWAII PLANNING DEPARTMENT BACKGROUND AND RECOMMENDATION COUNTY COUNCIL INITIATED BILL NO. 127 (PL-CCI-2024-000006) AMENDMENT TO CHAPTER 25,ARTICLE 2,DIVISION 4, SECTION 25-2-44, OF THE HAWAII COUNTY CODE 1983 (2016 EDITION,AS AMENDED), RELATED TO CONDITIONS ON CHANGE OF ZONE The County Council referred a bill for an ordinance amending Chapter 25 (Zoning), Article 2, Division 4 of the Hawaii County Code 1983 (2016 Edition, as Amended), Relating to Conditions in Change of Zone. Bill 127 establishes a requirement for the Planning Director to specify a time by which performance conditions must be complete in a recommendation for a Change of Zone. PURPOSE OF BILL 127 1. The Hawaii County Council has introduced Bill No. 127, (Planning Department Exhibit 1),which seeks to amend Chapter 25 (Zoning), Article 2, Division 4, Section 25-2-44 of the Hawaii County Code 1983 (2016 Edition, as Amended) (HCC),relating to conditions in Change of Zone ordinances by adding the following language: "Within any ordinance for a change ofzone that includes any such conditions, the director shall specify the time by which all conditions shall be completed." According to the bill's introducer, Bill 127 mandates that the Planning Director specify a time frame for the completion of all conditions of approval in each change of zone ordinance. Since the council's approval of Bill 1941 in 2023, the Planning Commissions and County Council have received change of zone applications from the Planning Department with proposed draft conditions that do not contain a time frame in which all conditions must be met. Bill 127 will ensure that all change of zone applications are processed fairly and set to a specific timeline for timely completion. It will also allow for confidence in land use patterns across Hawaii island. 'Bill 194 was a bill for an ordinance which sought to amend Section 25-2-44 of the Hawaii County Code to,amongst other provisions,prohibit the Planning Director from including conditions allowing an administrative time extension to change of zone recommendations.The Zoning Code was amended with these changes by Ordinance No.23 38 on April 19,2023. -1- AUTHORITY 2. HCC Section 25-2-44. (Conditions on change of zone) authorizes the Council to impose conditions on an applicant's use of a property. Subsection (a) states: "Within any ordinance for a change ofzone, the council may impose conditions on the applicant's use of the property subject to the change ofzone provided that the council finds that the conditions are: (1) Necessary to prevent circumstances which may be adverse to the public health, safety, and welfare; or (2) Reasonably conceived to fu f ll needs directly emanating from the land use proposed with respect to: (A) Protection of the public from the potentially deleterious effects of the proposed use, or (B) Fulfillment of the need for public service demands created by the proposed use. " The proposed code change would compel the Planning Director to specify a time by which all such conditions of approval be completed. AGENCIES—NO COMMENTS/CONCERNS 3. Department of Public Works- Engineering Division, Department of Water Supply, and Police Department. AGENCIES-NO RESPONSE PROVIDED 4. Department of Public Works-Traffic Division, Department of Public Works- Building Division, Department of Environmental Management, Fire Department, Office of Housing and Community Development, and Department of Research and Development. PUBLIC COMMENTS PROVIDED 5. None as of the date of this writing. PLANNING ANALYSIS OF THE IMPACTS OF BILL 127 Since the 1980's, Planning Directors have recommended the addition of conditions to change of zone ordinances that included a timing element(e.g., time to secure plan approval/final subdivision approval, time to commence and complete phases of development,time to complete construction, etc.). These timed conditions were usually placed on ordinances based on applicant's representations on the amount of time -2- needed to complete development of a project or subdivision or the Planning Department's best estimates on how long the development process or components thereof would take. Over the years,unless more time was requested by an applicant, Planning Directors would usually recommend a 5-year development completion condition (e.g., time to complete construction for non-residential projects or time to secure final subdivision approval for change of zone applications that would result in a subdivision) with the possibility of up to a 5-year time extension should the applicant meet the criteria for granting one. In most cases this timeframe was sufficient to complete the required action, however, in some cases, applicants were unable to meet the timed requirements, which would require the applicant to apply for a time extension with the Planning Department for recommendation from the Planning Commission and ultimately approval, modification, or denial by the County Council. Until an ordinance is brought current with an amendment, it is considered stale,meaning the Planning Department will not process or issue Final Plan Approval/Final Subdivision Approval or sign-off on any building permits, until an amendment for time extension is secured. Over the last year or so,the current Planning Director has opted to start excluding timed conditions in cases where the proposed change of zone meets the applicable guidelines for granting a change of zone, is consistent with the General Plan (GP) and applicable Community Development Plan (CDP) (e.g. a change of zone from A-l0a to FA-3a outside of the urban area or a change of zone from RS-10 to CN-10 inside the urban area). Conversely, the Planning Director has added timed conditions to change of zone requests on lands in fringe areas between urban and non-urban land use designations typically located around urban growth boundaries. Unlike other Planning Commission permits (e.g., Special Permits, Use Permits, SMA Use Permits, Shoreline Setback Variances, etc.), a Change of Zone does not sanction or compel a specific project or development, thus any land use permitted in the zoning district is allowed,thus while applicant's usually include information on a proposed project in their change of zone application, the Planning Director must consider that other land uses permitted in the zoning district are possible and assess the potential impacts of the full range of permitted land uses accordingly. As such,the Planning Director has been recommending performance conditions which would require an applicant to complete certain tasks to ensure adequate -3- infrastructure and mitigate impacts of a project that would be allowed by proposed zoning prior to securing final subdivision approval or final plan approval/certificate of occupancy, etc. for any possible project or development. These conditions compel an applicant to meet the requirements of current State statute and County Code through subsequent processes that require sign-off by appropriate agencies. This practice is consistent with how some other municipalities approve zoning district changes though consideration of how the zoning change complements overall land use patterns, consistency with long-range plans, and availability of necessary infrastructure. This allows an owner to subsequently develop their property pursuant to development codes at any time,without having to meet arbitrary timing conditions. It is the Planning Director's belief that if the proposed zoning district meets the preceding requirements (including the provision of adequate performance conditions) and would result in an appropriate land use pattern that would further benefit the general public, then there is no need for timed conditions. Furthermore,this will alleviate unanticipated impediments to development of a project(e.g., economic downturn,natural disasters, extended agency review periods, etc.) and allow applicants/owners/developers flexibility to develop a project as favorable conditions allow. Finally,the Planning Director believes that this approach satisfies the Zoning Code requirements for adding conditions of approval for a change of zone outlined in HCC Section 25-2-44. PLANNING DIRECTOR'S RECOMMENDATION The Planning Director appreciates the time and effort the County Council has taken to draft the legislation; however,he cannot support the bill as currently written, thus the Planning Director recommends that the Planning Commissions send an unfavorable recommendation of Bill No. 194 to the County Council. Despite the preceding, the Planning Director is interested in working with the County Council to address their concerns and to ensure that change of zone ordinances contain appropriate conditions to ensure the intent of the Zoning Code. Some suggestions include: I. Strengthen standard performance conditions: As previously mentioned, the Planning Director has been recommending applicable performance conditions rather than timed conditions for change of zone applications. These conditions are meant to ensure adequate infrastructure is provided and address health and safety -4- needs prior to completion of any project facilitated by a change of zone. These performance conditions largely address ensuring water availability,wastewater provision, and traffic mitigation through roadway design and improvements. The current performance condition language that the Director typically recommends includes: a. Water: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 ofHawai`i to the DWS. A water commitment deposit shall be paid to DWS within 180 days from the effective date of this ordinance in accordance with Rule 5 of the Department of Water Supply's Rules and Regulations. The applicant is responsible for maintaining valid water commitments to support the proposed use until such time that required water facilities charges are paid in full. b. Water: The applicant shall construct necessary water system improvements as required by the Department of Water Supply, which may include, but not be limited to, [SPECIFY IWROVEMENTS]. C. Water: 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/industrial zoning. (Note: the Fire Department is a reviewing agency for building permits and will ensure compliance with this condition prior to issuance Certificate of Occupancy) d. Wastewater: The property shall connect to the public sewer in accordance with Section 21-5 of the Hawai`i County Code prior to issuance of a Certificate of Occupancy. e. Wastewater: The method ofsewage disposal shall meet with the requirements of the Department of Health. f. Traffic/Roads:Should the applicants, successors or assigns develop a land use which the Planning Department, in consultation with the Department of Public Works, determines will generate over 50 peak hour trips, a Traffic Impact Analysis Report(TZAR)shall be submitted for -5- review and approval by the Department of Public Works prior to Final Plan Approval. The applicants shall implement, when required by the Department of Public Works, at no cost to the County, any transportation system improvements to[Name of Road] that may be deemed necessary by the Department of Public Works. (Note: There are similar conditions addressing State Department of Transportation's authority should the roadway be under their jurisdiction). In the preceding examples, the conditions direct that certain actions must occur prior to the final approval of the development, no matter when an applicant/landowner/developer chooses to develop the property. Should the County Council feel that these conditions are not sufficient to direct development performance,the Planning Director would be willing to work with them to clarify the conditions. 2. Tolling: There has been significant discussion at the County Council level about tolling, or stopping the running of a time period,when applications are under government agency review from the overall development timeframe. This will allow an applicant who is diligently working toward acquiring the necessary government approvals to not be penalized by overly long agency review of a project(e.g., archaeological review and approval from the State Historic Preservation Division, a Letter of Map Revision or LOMR from the Federal Emergency Management Agency/Department of Public Works, grading permits, Plan Approval/Final Subdivision Approval, building permits, etc.). The Planning Director is in support of this provision and is willing to work with the County Council to craft acceptable tolling condition language. 3. Informed Development Timing: The Planning Director can work with State and County agencies and industry professionals to craft a general development timeframe matrix that describes the average timeframes that each step of the development process should take. While this will not address the specifics of all situations, it will help inform applicants on how to best craft their anticipated development timeline and `right-size' their application request for proposed projects. This could also be an informative tool to help the public understand development process steps and anticipated timeframes. -6- 4. Timing Condition Requirement Exemptions: In some cases,timed conditions on change of zone ordinances are not appropriate. For example: a. When rezoning a property to an Open zoning designation where the intent is to ensure open space/scenic/historic/cultural resource protection, public and recreational uses, etc. In this case,where development of the property is not the intent, it doesn't make sense to apply a timed condition for permitted uses. b. When the Planning Director or County Council are initiating a reversion of zoning to the previous zoning district designation, the Planning Director usually recommends removal of all conditions of the zoning ordinance and the requirements of the original zoning district designation control development of the property. In this case, adding a timed condition is not appropriate. C. Where a property has split zoning, and an applicant is seeking to align one portion of the property with the zoning of the remainder of the property. Should the Planning Director be compelled to add a timed condition to the zoning ordinance, it would only apply to a portion of the property and not the entire property. These examples illustrate that prescribing a timing condition for development in all cases is inappropriate and there should be a provision for exempting this requirement as necessary. For the reasons detailed above, the Planning Director recommends that the Planning Commissions send an unfavorable recommendation of Bill No. 127 as currently written. The Windward and Leeward Planning Commissions are required to take action on Bill 127 as described in Section 25-2-43(b) of the zoning code (Planning Department Exhibit 2). This bill was transmitted by the County Council to the Department on February 20, 2024,which means the commissions are required to transmit their recommendations to the council by June 19, 2024. The commissions may recommend approval of all, some, or none of the Director's suggestions. The commissions may also recommend their own revisions to the bill. The Windward and Leeward Planning Commission's recommendations will be forwarded separately,but at the same time, to -7- the County Council for their consideration and decision. In the event the commission fails to act on the proposed bill by this date, such inaction shall be considered as an unfavorable recommendation by the commissions. -8- Ashley L. Kierkiewicz (808)961-8265 County Council District IV »iv.or ashley.kierkiewicz@hawaiicounty.gov Policy Committee on PlanningPolicy Committee on Infrastructure Land Use and Development—Chair and Assets— Vice Chair c', 1h Of•N�'i' CAH PLANNING DEPT HAWAII COUNTY COUNCIL FEB202024AH10:153 Hawaii County Building RECD HAND DELIVERER 25 Aupuni Street - Hilo,Hawaii 96720 TO: Zendo Kern, Director Planning Department FROM: Ashley L. Kierkiewicz, Council Member DATE: February 20, 2024 SUBJECT: Referral of Bill 127; an Ordinance amending Chapter 25, Articles 2, Division 4, Section 25-2-44, of the Hawaii County Code 1983 (2016 Edition, As Amended), related to Conditions on Change of Zone. Pursuant to Section 25-2-43(b) of the Hawaii County Code, I am forwarding a legislative item for your comment and recommendation. On February 20, 2024, the Committee on Planning, Land Use, and Development voted to forward Bill 127 to the Planning Director and the Windward and Leeward Planning Commissions. Upon completion of your and the Commissions review, please transmit your comments and recommendations to Council Chairperson Heather Kimball. This will facilitate further deliberation and action on the proposed measure by the Committee. Thank you for your attention to this matter. W � Enc. AK/kj Planning Dept. Exhibit Hawai`i County Is an Equal Opportunity Provider and Employer V ! COUNTY OF HAWAII STATE OF HAWAII r•. BILL NO. 127 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 25,ARTICLE 2, DIVISION 4, SECTION 25- 2-44, OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATED TO CONDITIONS ON CHANGE OF ZONE. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Chapter 25, article 2, division 4, section 25-2-44, of the Hawaii County Code 1983 (2016 Edition, as amended), is amended by amending subsection(a) to read as follows: "(a) Within any ordinance for a change of zone,the council may impose conditions on the applicant's use of the property subject to the change of zone provided that the council finds that the conditions are: (1) Necessary to prevent circumstances which may be adverse to the public health, safety and welfare; or (2) Reasonably conceived to fulfill needs directly emanating from the land use proposed, with respect to: (A) Protection of the public from the potentially deleterious effects of the proposed use, or (B) Fulfillment of the need for public service demands created by the proposed use. Within any ordinance for a change of zone that includes any such conditions,the director shall specify the time by which all conditions shall be completed " SECTION 2. New material is underscored. In printing this ordinance,the underscoring need not be included. SECTION 3. Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. SECTION 4. This ordinance shall take effect upon its approval. INTRODUCED BY: Cs �� COUNCIEUMMR, API Hawaii Date of Introduction: Date of 1 st Reading: Date of 2nd Reading: Effective Date: REFERENCE Comm. 694 2 § 25-2-43 HAWAII COUNTY CODE (c) Notice by mail to surrounding owners and lessees of record of properties within the boundaries established by section 25-2-4, shall not be required for any amendment initiated by the council or the director. In lieu of mailing written notice to surrounding property owners and lessees of record, the director shall publish notice of the commission's public hearing in at least two newspapers of general circulation in the County, once a week for three consecutive weeks, with the last notice to be at least ten days prior to the hearing. The notice shall specify the time, date and place of the hearing, its purpose and a description of any property which may be involved. (d) Notice to owners of any properties specifically subject to the proposed amendment shall be provided by mail from the director, no later than thirty days prior to the commission's public hearing on the amendment. (1996, ord 96-160, sec 2; ratified April 6, 1999.) Section 25-2-44. Conditions on change of zone. (a) Within any ordinance for a change of zone, the council may impose conditions on the applicant's use of the property subject to the change of zone provided that the council finds that the conditions are: (1) Necessary to prevent circumstances which may be adverse to the public health, safety and welfare; or (2) Reasonably conceived to fulfill needs directly emanating from the land use proposed with respect to: (A) Protection of the public from the potentially deleterious effects of the proposed use, or (B) Fulfillment of the need for public service demands created by the proposed use. (b) Requests to change or alter the conditions of any change of zone ordinance shall be processed in the same manner as a zone change, unless the council authorizes the changes or alterations to be made by the director. (c) A condition granting an administrative time extension by the director shall not be included in any change of zone ordinance. However, an initial time extension for the performance of conditions within a change of zone ordinance may be granted by the council via resolution upon a finding that the following circumstances exist: (1) The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant and that are not the result of the applicant's fault or negligence; (2) Granting of the time extension would not be contrary to the general plan or this chapter; (3) Granting of the time extension would not be contrary to the original reasons for the granting of the change of zone; (4) 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); and Planning Dept. Exhibit 2 SUPP. 14 (7-2023) 25-28 ZONING § 25-2-44 (5) The request for the time extension is submitted to the director prior to the expiration of time for the performance of conditions included in the original change of zone ordinance. When a request for initial time extension is received by the director, the director shall recommend approval or denial and submit a notice to council through the mayor. In the case of a recommended approval, the director shall also submit a resolution to council through the mayor for consideration and action. If an applicant should require an additional time extension beyond the time extension provided via council resolution, the request shall be processed pursuant to section 25-2-42. (d) A request for any time extension, change, or alteration of conditions shall be submitted in writing to the director, in lieu of the application required for an applicant-initiated change of zone. Requests for initial time extensions shall be forwarded to the council for its consideration. All requests, excluding requests for initial time extensions via council resolution, shall be accompanied by a filing fee of $500. (e) If the applicant fails to fulfill any conditions of the zone change within the specified time limitations, the director or council may initiate the process for enactment of an ordinance reverting the affected property back to its original zoning designation or a more appropriate zoning designation in accordance with section 25-2-43. (1996, ord 96-160, sec 2; ratified April 6, 1999; am 2023, ord 23-38, sec 1.) Section 25-2-45. Nonsignificant zoning changes. (a) The director may administratively grant any nonsignificant zoning change. A nonsignificant zoning change must comply with the designations for the property set forth in the general plan and any development plan adopted by ordinance, and not result in an increase or decrease in any zoning designation affecting more than five percent of the area, or one acre, of any lot, whichever is less. (b) The applicant for a nonsignificant zoning change shall give notice to surrounding owners and lessees of record, pursuant to section 25-2-4, and shall post a sign for public notification as provided by section 25-2-12. (1996, ord 96-160, sec 2; ratified April 6, 1999; am 2008, ord 08-48, sec 2.) 25-28.1 SUPP. 14 (7-2023)