HomeMy WebLinkAboutPD Recommendation Report Big Island Candies (PL-REZ-024-065)1
RBigIslandCandiesAmendREZ.ak.10.29.24
COUNTY OF HAWAI‘I PLANNING DEPARTMENT RECOMMENDATION
BIG ISLAND CANDIES, INC AMENDMENT TO CHANGE OF ZONE ORDINANCE NO. 16-85 (REZ 05-000023/PL-REZ-2024-000065)
Upon careful review for an 8-year time extension to Condition C (time requirement to
commence construction) and amendments to Conditions D, E, and F (roadway infrastructure
improvements) of Change of Zone Ordinance No. 16-85, the Planning Director is recommending
that a favorable recommendation be forwarded to the Hawaiʻi County Council. Since this
recommendation is made without the benefit of public testimony, the Director reserves the right
to modify and/or alter the recommendation. This favorable recommendation is based on the
following findings:
The applicant has submitted a request for an 8-year time extension to condition C
and amendments to Conditions D, E and F of Change of Zone Ordinance No. 16-85,
which rezoned approximately 45,450 square feet of land from a Single-Family
Residential – 10,000 square feet (RS-10) to a General Commercial-20,000 square feet
(CG-20) zoning district, to specify that required road improvements be constructed prior
to occupancy permits for further development of the subject parcels, rather than within a
specific timeframe.
The non-performance is the result of conditions that could not have been
foreseen or are beyond the control of the applicants, successors, or assigns, and that
are not the result of their fault or negligence. The applicant originally proposed to
develop a production facility, cold storage, and visitor center on the subject properties.
However, according to the applicant the delays in meeting the development conditions
for Big Island Candies (BIC) are attributed to a variety of external factors impacting their
financial and operational capabilities. A significant contributor is the adverse economic
environment, including a weakened yen-to-dollar exchange rate that has reduced
Japanese tourism, a critical market for BIC. Additionally, inflation has constrained the
spending power of mainland tourists, directly affecting BIC’s sales and, consequently, its
capacity to fund expansions. This challenging economic backdrop has led BIC to seek
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extensions in zoning and construction deadlines as they navigate these market constraints.
Furthermore, BIC has faced operational difficulties, including persistent labor
shortages and supply chain issues that have increased the costs of materials and limited
production capacity. These issues, exacerbated by the COVID-19 pandemic, have
delayed BIC’s ability to meet the scheduled development milestones for additional
production and storage facilities. Past natural events, such as the 2018 lava flow, also
limited visitor traffic to the region, compounding the economic strain on BIC’s
operations during that period. These factors, along with the pandemic’s long-term effects,
have hampered the company’s plans for expansion and construction.
BIC may plan to build a new production and storage facility at a different scale
and design than what was originally proposed on Parcels 78 and 79 at Kekūanāoʻa and
Laukapu Streets in the future, however, given the preceding discussion, those plans will
not occur in the near term, thus they are requesting the 8-year time extension. Currently,
Parcel 66 is used as a residential property and is occupied by two dwellings, which are
permitted within the existing Commercial General (CG) zoning. Parcels 78 and 79,
located at the corner of Kekūanāoʻa and Laukapu Streets, are used for temporary
employee parking which is an accessory use to the main structure on an adjacent parcel.
Additionally, BIC has requested amendments to specific development conditions,
particularly those related to road improvement requirements, to allow for greater
flexibility in their timeline. Given the economic pressures and shifting market conditions,
extending deadlines for facility and road improvements will enable BIC to adapt to these
circumstances more effectively, while maintaining economic viability and meeting the
zoning requirements in a more sustainable manner.
Based on the preceding, the Director has determined that the non-performance of
required conditions of approval 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 their
fault or negligence.
Granting of the proposed amendments would not be contrary to the General
Plan, Community Development Plan, Zoning Code nor the original reasons for
granting the Change of Zone. The Land Use Pattern Allocation Guide (LUPAG) Map
component of the General Plan is a representation of the document’s goals and policies to
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guide the coordinated growth and development of the County. It reflects a graphic
depiction of the physical relationship among the various land uses. The LUPAG Map
establishes the basic urban and non-urban form for areas within the County.
The proposed request continues to conform to the LUPAG Map, which designates
the property as High Density Urban (hdu) and allows for General commercial, multiple
family residential and related services (multiple family residential up to 87 units per
acre). There have not been any significant changes to the General Plan for this area since
this request was originally approved that would affect this project. The existing CG-20
zoning and any subsequent commercial development of the property will continue to
support a land use pattern consistent with the General Plan’s hdu LUPAG designation.
The approval of this time extension request and amendments to several conditions would
not be contrary to the General Plan and zoning code, therefore, the Director recommends
retaining the property’s existing CG-20 zoning.
Despite the 1975 Hilo Community Development Plan’s suggested residential
designation, this area is transitioning to commercial and light industrial uses. Land uses
in the immediate area are a mix of commercial, industrial and residential uses. The
property is bordered to the east and south by residential properties zoned Single-Family
Residential-10,000 square feet (RS-10) and Neighborhood Commercial-10,000 square
feet (CN-10,000). The area fronting Kekūanāoʻa Street is a mix of residential,
commercial, and limited industrial including a Church between parcels 66 and 79, thus
the proposed change of zone would be consistent with the zoning/land uses in the area.
Access to the project site is currently from Kekūanāoʻa Street to the existing
single-family dwellings on Parcel 66 and from Hinano Street for Parcels 78 and 79.
Condition G of Ordinance No. 06-114 prohibits access from Kekūanāoʻa Street once the
single-family dwellings are demolished. Access to Parcels 78 and 79 will be from
Laukapu Street and access to Parcel 66 will be from Hinano Street. Roadway conditions
D, E, and F will be amended as requested to reflect timing of roadway improvement
requirements associated with further development of the properties prior to occupancy.
To be consistent with the concurrency requirements of the Zoning Code, a
condition of approval will require submittal of a Traffic Impact Analysis Report (TIAR)
if a land use is developed that would generate over 50 peak hour trips. The applicant will
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be responsible for constructing any improvements identified in the TIAR required by the
Department of Public Works.
Electricity and telephone, fire, police, and emergency medical services are all
available to the site nearby in Hilo. Based on the preceding, the proposed request will not
unreasonably burden public agencies to provide for infrastructure and utilities to the
project site.
In their amendment request letter, the applicant proposed language to clarify the
construction deadline and roadway improvement timeline. While previous Directors
insisted on strict adherence to the timed performance conditions, the current
administration is open to the applicant’s suggested amendment language to roadway
improvement conditions. Additionally, if approved, the amendment to Condition C will
require some development to occur within 8 years of the amendment, thus if that
development requires a certificate of occupancy, the roadway improvements will be
triggered.
Appropriate infrastructure such as water, wastewater, and roadway access are
available or will be constructed by the applicant to support uses permitted under the
CG-20 zoning. Conditions of approval will require the applicant to comply with
Department of Water Supply (DWS) and Fire Department requirements to provide
potable water and fire suppression water to the site, and to connect to the County sewer in
the area.
Based on the preceding, the request to amend Condition C (time to complete
construction) to allow a time extension to complete construction of the proposed project
and associated Conditions D, E, and F (Roadway Infrastructure) is not contrary to the
original reasons for granting the change of zone.
The request is not contrary to Chapter 205A, Hawaiʻi Revised Statutes,
relating to Coastal Zone Management. The project site is situated approximately 0.34
miles from the nearest shoreline and is not situated within the Special Management Area,
there is no direct public access to the shoreline or mountains located within the project
site, and commercial development of the property will be required to follow County
drainage code for on-site drainage mitigation and to connect to the County sewer. As
such, the proposed development should not have any substantial adverse impacts on
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coastal processes or conditions, nor will its approval be contrary to the objectives and
policies of Chapter 205A, HRS relating to Coastal Zone Management.
The development will to the extent feasible, reasonably protect native
Hawaiian rights if they are found to exist. In view of the Hawai‘i State Supreme
Court’s “PASH” and “Ka Pa‘akai O Ka‘ Āina” 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.
Investigation of valued resources: No formal archaeological reconnaissance
survey, oral history of kamaʻaina accounts of the area, historical survey of documentary
records, or botanical study was included in the application, however, during the previous
change of zone amendment in 2016, the Department of Land and Natural Resources –
State Historic Preservation Division (SHPD) determined that although no archaeological
inventory survey had been conducted, aerial photos indicated that the area had been
subject to previous grading which has significantly altered the land. In addition, there is
no evidence of any traditional and customary Native Hawaiian rights being practiced on
the site, nor existence of any known valued cultural, historical or native resources in the
area.
The valuable cultural, historical, and natural resources found within the project
site. Although no professional surveys were conducted on this site, the area has been
improved and is located within an urban environment close to commercial, industrial and
residential uses, it is unlikely that rare or endangered floral or faunal resources are on the
site.
Possible adverse effect or impairment of valued resources and feasible actions to
protect native Hawaiian rights: There is no evidence of any valued cultural, historical,
and/or natural resources found on the site, thus to the extent which traditional and
customary native Hawaiian rights are exercised, the proposed action will not affect
traditional Hawaiian rights; therefore, no action is necessary to protect these rights.
However, conditions of approval will require the applicant to implement the
archaeological monitoring plan and to follow necessary mitigation procedures in the
event of an inadvertent find of archaeological remains while developing the property.
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With implementation of the mentioned conditions of approval the proposed action will
not affect traditional Hawaiian rights.
Lastly, this recommendation is made with the understanding that the applicant
remains responsible for complying with all other applicable governmental requirements
in connection with the proposed use, prior to its commencement or establishment upon
the subject properties. Additional governmental requirements may include the issuance
of building permits, compliance with the 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 preceding findings, the Planning Director recommends that a favorable
recommendation be forwarded to the County Council to amend Ordinance No 16-85.
The accompanying draft bill to amend Ordinance No. 16-85 is provided for your
consideration. Please note the proposed conditions of approval attached to the draft bill. Material
to be deleted is bracketed and struct through; new material is underscored.
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COUNTY OF HAWAI‘I STATE OF HAWAI‘I
BILL NO.
ORDINANCE NO.
AN ORDINANCE AMENDING ORDINANCE NO. 16 85 WHICH AMENDED ORDINANCE
NO. 06 114, WHICH AMENDED SECTION 25-8-33 (CITY OF HILO ZONE MAP),
ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAIʻI COUNTY CODE 1983 (2016 EDITION, AS AMENDED) BY CHANGING THE DISTRICT CLASSIFICATION FROM SINGLE FAMILY RESIDENTIAL – 10,000 SQUARE FEET (RS-10) TO GENERAL COMMERCIAL – 20,000 SQUARE FEET (CG-20) AT WAIĀKEA HOUSE LOTS, HAWAI‘I,
COVERED BY TAX MAP KEY: 2-2-034:066, 078 & 079.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I:
SECTION 1. Section 2 of Ordinance No. 16 85 is amended as follows
“SECTION 2. In accordance with Section 25-2-44, Hawai‘i County Code 1983 (2016
Edition, as amended), the County Council finds the following 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.
INSERT CONDITIONS ”
(Planning Dept.)
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SECTION 2. Material to be deleted is bracketed and stricken. New material is
underscored.
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 which 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:
COUNCIL MEMBER, COUNTY OF HAWAI‘I
, Hawai‘i Date of Introduction: Date of 1st Reading: Date of 2nd Reading:
Effective Date:
CBigIslnadCandiesAmendREZ.ak.11.19.24
BIG ISLAND CANDIES, INC.
CHANGE OF ZONE ORDINANCE 16 85 (REZ 05-023/PL-REZ-2024-000065)
AMENDMENT TO CONDITIONS C, D, E, & F
CONDITIONS OF APPROVAL
A.The applicant(s), successor(s) or assign(s) (“applicant”) shall be responsible for
complying with all of the stated conditions of approval.
B.The applicant shall construct necessary water system improvements as required by
the Department of Water Supply (DWS), which may include, but not be limited to,
the installation of a reduced pressure type backflow prevention assembly and
improvements to meet DWS’ commercial zoning fire flow standard of 2,000 GPM at
the site for fire protection. 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. The applicant shall comply with all other applicable DWS
policies and requirements.
C.Construction of the proposed improvements shall be completed within eight (8) years
from the effective date of this amended ordinance. [This time period shall include
securing Final Plan Approval from the Planning Director in accordance with the
Zoning Code. Plans shall identify proposed structure(s), fire protection measures,
access roadway, driveway and parking stalls. Landscaping shall be indicated on the
plans for the purpose of mitigating any potential adverse noise or visual impacts to
adjoining parcels. Landscaping shall be provided in accordance with the
requirements of Planning Department's Rule No. 17 (Landscaping
Requirements).]The time during which required plans, reports, studies, or relevant
permit applications are under review for approvals by government agencies shall not
count towards the deadline established in the ordinance. To justify this tolling, the
applicant shall provide evidence of the excluded time period to the planning
department for its review and approval, which shall consist of dates obtained from a
government agency website, permitting program, or office indicating when the
required plans, reports, studies, or permit applications were submitted, approved,
denied, or returned by the government agency. Any request for tolling shall be
verified and approved in writing by the director prior to the deadline established by
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the ordinance. The director shall notify the council of any approval of a request for
tolling within thirty days of such approval. If any conditions have not been completed
by the deadline, or if a time extension request has not been submitted in accordance
with section 25-2-44(c), the planning department shall inform the applicant that the
ordinance is null and void without further action by the County. In that event, the
zoning designation of the property(s) affected by the ordinance shall automatically
revert to its immediate prior zoning designation.
D. The applicant shall include securing Final Plan Approval from the Planning Director
in accordance with the Zoning Code. Plans for any new improvements shall identify
proposed structure(s), fire protection measures, access roadway, driveway and
parking stalls. Landscaping shall be indicated on the plans for the purpose of
mitigating any potential adverse noise or visual impacts to adjoining parcels.
Landscaping shall be provided in accordance with the requirements of Planning
Department’s Rule No. 17 (Landscaping Requirements).
[D.] E. A five-foot-wide future road widening strip along the Hīnano Street and Laukapu
street frontages and a 10-foot-wide future road widening strip along the Kekūanāoʻa
Street frontage shall be subdivided and dedicated to the County [within eight (8)
years from the effective date of this amended ordinance or] prior to issuance of
occupancy permits for the [proposed] further development[, whichever is sooner] of
the property.
[E.] F. The applicant shall provide full improvements to the project’s frontage along
Kekūanāoʻa Street and Laukapu Street consisting of, but not limited to, pavement
widening with concrete curb, gutter and sidewalk, drainage improvements, and any
required utility relocation, meeting with the approval of the Department of Public
Works[, within eight (8) years from the effective date of this amended ordinance or]
prior to issuance of occupancy permits for the [proposed] further development[,
whichever is sooner] of the property. The improvements shall be located within the
future road widening setback.
[F.] G. The applicant shall [P]provide a minimum 20-foot corner radius (property line) at the
intersection of the future road widening setback lines along Kekūanāoʻa Street and
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Laukapu Street. The applicant shall [P]provide a 33-foot corner radius (conforming
to the back edge of the existing sidewalk) at the intersection of the future road
widening setback lines along Kekūanāoʻa Street and Hīnano Street [within eight (8)
years from the effective date of this amended ordinance or] prior to issuance of
occupancy permits for the [proposed] further development[, whichever is sooner] of
the property.
[G.] H. Access shall be prohibited from Kekūanāoʻa Street, except for access to the two
existing homes until they are demolished.
[H.] I. The applicant shall [I]install streetlights and traffic control devices as required by the
Traffic Division, Department of Public Works. The applicant shall be responsible for
the design, purchase, and installation of such devices.
[I.] J. Should the applicant(s), successor(s) or assign(s) 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
(TIAR) shall be submitted for review and approval by the Department of Public
Works prior to Final Plan Approval. The applicant(s) shall implement, when required
by the Department of Public Works, at no cost to the County, any transportation
system improvements to Laukapu Street, Hīnano Street, or Kekūanāoʻa Street that
may be deemed necessary by the Department of Public Works.
[J.] K. Any existing and/or proposed structures 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.
[K.] L. If required by the Director of the Department of Environmental Management, the
applicant shall conduct a sewer study in accordance with the then applicable
wastewater system design standards prior to approval to connect to the County sewer
system. Prior to the issuance of a Certificate of Occupancy, the applicant shall
provide such sewer line or other facility improvements as the Director of the
Department of Environmental Management may reasonably require, which the sewer
study may indicate are advisable for mitigation of impacts of the development.
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[L.] M. 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 [and the
recommended drainage system shall be constructed,] by a professional civil engineer
licensed in the State of Hawaiʻi and submitted to the Department of Public Works
prior to issuance of a construction permit. Any recommended drainage
improvements, if required, shall be constructed meeting the approval of the
Department of Public Works prior to the receipt of a certificate of occupancy.
[M.] N. A Solid Waste Management Plan shall be submitted to the Department of
Environmental Management for review and approval prior to the issuance of a
Certificate of Occupancy.
[N.] O. All earthwork activity shall conform to Chapter 10, Erosion and Sedimentation
Control, of the Hawai‘i County Code.
[O.] P. [ Should any remains of historic sites, such as rock walls, terraces, platforms, marine
shell concentrations or human burials be encountered, work in the immediate area
shall cease and the Department of Land and Natural Resources - State Historic
Preservation Division (DLNR-SHPD) shall be immediately notified. Subsequent
work shall proceed upon an archaeological clearance from the DLNR-SHPD when it
finds that sufficient mitigation measures have been taken.] 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, the applicant shall cease work in the immediate vicinity of
the find, protect the find from additional disturbance and contact the Department of
Land and Natural Resources-State Historic Preservation Division (DLNR-SHPD) 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.
[P.] Q. Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for
imposition of exactions or the assessment of impact fees, conditions included herein
shall be credited towards the requirements of the Unified Impact Fees Ordinance.
[Q.] R. To ensure that the Goals and Policies of the Housing Element of the General Plan are
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implemented, the applicant shall comply with the requirements of Chapter 11,
Article 1, Hawai‘i County Code relating to Affordable Housing Policy. This
requirement shall be approved by the Administrator of the Office of Housing and
Community Development prior to final plan approval for any new residential
structures.
[R.] S. If the applicant(s), successors, or assigns develop residential units on the subject
properties, the applicant(s) shall make its (their) fair share contribution to mitigate the
potential regional impacts of the properties with respect to parks and recreation, fire,
police, solid waste disposal facilities and roads. The fair share contribution shall
become due and payable prior to receipt of Final Plan Approval. The fair share
contribution for each lot shall be based on the actual number of residential units
developed. The fair share contribution in a form of cash, land, facilities or any
combination thereof shall be determined by the County Council. The fair share
contribution may be adjusted annually beginning three years after the effective date of
this ordinance, based on the percentage change in the Honolulu Consumer Price
Index (HCPI). The fair share contribution shall have a maximum combined value of
[$8,754.58] $11,018.76 per multiple family residential unit ([$13,672.20] $17,171.49
per single family residential unit). The total amount shall be determined with the
actual number of units according to the calculation and payment provisions set forth
in this condition. The fair share contribution per multiple family residential unit
(single family residential units) shall be allocated as follows:
1. [$4,318.39] $5,435.24 per multiple family residential unit ([$6,608.08] per
single family residential unit) to the County to support park and
recreational improvements and facilities;
2. [$136.48] $171.78 per multiple family residential unit ([$317.37] $399.45
per single family residential unit) to the County to support police facilities;
3. [$419.84] $528.42 per multiple family residential unit ([$626.84] $788.96
per single family residential unit) to the County to support fire facilities;
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4. [$187.12] $235.52 per multiple family residential unit ([$274.44] $345.41
per single family residential unit) to the County to support solid waste
facilities; and
5. [$3,692.75] $4,647.80 per multiple family residential unit ([$5,845.47]
$7,357.27 per single family residential unit) to the County to support road
and traffic improvements.
In lieu of paying the fair share contribution, the applicant may contribute land and/or
construct improvements/facilities related to parks and recreation, fire, police, solid
waste disposal facilities and roads within the region impacted by the proposed
development, subject to the review and recommendation of the Planning Director,
upon consultation with the appropriate agencies and approval of the County Council.
[S.] T. The applicant shall comply with all applicable County, State and Federal laws, rules,
regulations and requirements.
[T.] U. An annual progress report shall be submitted to the Planning Director prior to the
anniversary date of enactment of the ordinance. The report shall include, but not be
limited to, the status of the development and the extent to which the conditions of
approval have been satisfied. This condition shall remain in effect until all of the
conditions of approval have been satisfied and the Planning Director acknowledges
that further reports are not required.
[U.] V. If the applicant should require an additional extension of time, the Planning Director
shall submit the applicant’s request to the Hawai‘i County Council for appropriate
action in accordance with Section 25-2-44, subsection (d), of the Hawaiʻi County
Code.
[Should any of the conditions not be met or substantially complied with in a timely fashion,
the Planning Director may initiate rezoning of the subject area to its original or more
appropriate designation.]
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AMENDMENT TO THE. ZONING CODE,
AMENDING SECTION 25-8-33 (CITY OF HILO ZONE MAP)
ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE
1983 (2005 EDITION), BY CHANGING THE DISTRICT CLASSIFICATION
FROM SINGLE-FAMILY RESIDENTIAL (RS -10)
TO GENERAL COMMERCIAL (CG -20)
AT WAIAKEA HOUSE LOTS, FIRST SERIES, SOUTH HILO, HAWAII
PREPARED BY: PLANNING DEPARTMENT
COUNTY OF HAWAII.
Date: December 7, 2005
8 079 int„ ici-rl nonfIIPS Inc •11881
EXHIBIT "A" FOR REFERENCE ONLY