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HomeMy WebLinkAboutPD Recommendation Report (PL-USE-2026-000046)1 RKeaauBenioffHealthCenterUSE – 7/31/26 COUNTY OF HAWAII PLANNING DEPARTMENT RECOMMENDATION REPORT KEAʻAU BENIOFF HEALTH CENTER USE PERMIT APPLICATION NO. PL-USE-2026-000046 Upon review of the request against the guidelines for granting a Use Permit, the Planning Director recommends that the request to construct and operate an approximately 40,000-square foot Keaʻau Benioff Health Center medical clinic and related improvements be approved by the Planning Commission. Since this recommendation is made without the benefit of public testimony, the Planning Director reserves the right to modify and/or amend this position based on additional information presented at the public hearing. This approval recommendation is based on the following findings: The applicant is requesting a Use Permit to construct and operate an approximately 40,000-square foot medical clinic and accessory uses on an approximately 20.018-acre portion of a 108.8-acre parcel. The applicant proposes to construct the Keaʻau Benioff Health Center, consisting of a single-story, approximately 40,000-square-foot medical center comprised of a clinical wing, a behavioral health wing, urgent care, primary and specialty care, imaging, laboratory, counseling and related outpatient services. The project plans identify 204 parking stalls, including ADA 22 accessible stalls, loading areas, internal circulation, landscaping, drainage facilities, utilities, and an on-site wastewater treatment system. The facility would not operate as an emergency room or drug-rehabilitation facility. According to the applicant, ambulances would not routinely deliver patients to the facility, although patient transfers could occur when necessary. According to the applicant, the proposed Keaʻau Benioff Health Center is needed to address the growing demand for healthcare services in the Puna District, including urgent care, specialty care, imaging, primary care, laboratory, and behavioral health services. According to the application, Puna is the fastest- growing region in the State, and existing healthcare facilities are insufficient to meet the increasing demand for these services. The proposed health center is 2 intended to improve access to medical services for Puna residents, reduce the need to travel to Hilo for healthcare, alleviate overcrowding and long wait times at Hilo Benioff Medical Center, and support the healthcare objectives of the County General Plan 2045 and the Puna Community Development Plan. The proposed Keaʻau Benioff Health Center will employ approximately 95 employees and 25 healthcare providers, for a total staffing level of approximately 120 personnel. Staff will include medical professionals, administrators, therapists, social workers, maintenance, and custodial personnel. Urgent-care services are proposed from 8:00 a.m. to 8:00 p.m., seven days per week, including holidays. Other clinical and administrative services are generally proposed from 8:00 a.m. to 4:00 p.m., Monday through Friday. Groundbreaking is anticipated in spring 2027, with completion by the end of 2028 or early 2029. The estimated cost of the overall project is approximately $90 million. The Zoning Code requires a Use Permit for the proposed health center within the County's Agricultural-20 acres (A-20a) zoning district. In considering a Use Permit for any proposed use, Rule 7 of the Planning Commission relating to Use Permit, requires that such action conform to the following guidelines: A. The granting of the proposed use shall be consistent with the general purpose of the zoning district, the intent and purpose of the Zoning Code, and the County General Plan; B. The granting of the proposed use shall not be materially detrimental to the public welfare nor cause substantial adverse impact to the community’s character or to surrounding properties; and C. The granting of the proposed use shall not unreasonably burden public agencies to provide roads and streets, sewers, water, drainage, school improvements, police and fire protection and other related infrastructure. 3 The proposed request meets the guidelines for approval of a Use Permit, for the reasons listed below: The granting of the proposed use shall be consistent with the general purpose of the zoning district, the intent and purpose of the Zoning Code, and the County General Plan. The intent and purpose of the Zoning Code is to promote the health, safety, and general welfare of the community through regulations governing the location and use of buildings and lands, density, parking, and other aspects of development. Although the subject property is situated within the State Land Use Urban District, it retains a County zoning designation of Agricultural, 20-acre minimum (A-20a). While a medical clinic is not permitted as a matter of right within the A-20a zoning district, the Zoning Code allows such a use to be considered through the issuance of a Use Permit when the property is situated within the State Land Use Urban District. The Use Permit process provides an avenue to review proposed uses on a case-by-case basis to determine infrastructure needs and identify and address potential impacts to surrounding properties and existing uses. The proposed Keaʻau Benioff Health Center will be required to comply with applicable Zoning Code requirements relating to building height, setbacks, parking, landscaping, signage, lighting, and other site-development standards through the Plan Approval process. The General Plan 2045 Land Use Map designates the Project Site as Medium Density Urban, which is within the County's Urban Growth Area. The Urban Growth Area is intended to accommodate future urban growth and development in areas where a higher intensity of uses can be supported. The Project Site is also located in proximity to the existing Keaʻau urban area and Volcano Highway, a major transportation corridor. The General Plan 2045 serves as the County's long-range policy guide for future growth and development. The proposed request is consistent with Objective 13 and the following applicable policies:  Policy 13.7: Within the “high- and medium-density” area, commercial development shall be focused on major streets, while interior blocks 4 should be zoned primarily for small lot single-family and multi-family residential use.  Policy 13.8: Focus on medium- and high-density residential and commercial uses in communities that can sustain a higher intensity of uses and where consistent with General Plan Land Use Map and existing town character.  Policy 36.2: Partner with government, private and nonprofit agencies, and other stakeholders to ensure equitable access to healthcare services.  Policy 36.3: Ensure healthy communities through aligned land use and infrastructure policies.  Policy 36.10: Establish a comprehensive network of health and wellness services. The proposed medical facility is consistent with these policies because it would establish a higher-intensity, community-serving use within an area designated for Medium Density Urban development and in proximity to Volcano Highway, a major transportation corridor. The surrounding Keaʻau area contains a mix of residential, commercial, industrial, recreational, and public uses. Accordingly, the proposed development is consistent with the General Plan's direction to focus higher-intensity development in areas where such development is supported by the General Plan Land Use Map and existing community character. The proposed facility would also expand access to medical and behavioral health services within the greater Puna community, furthering the General Plan's objectives and policies to promote equitable access to healthcare and establish a comprehensive network of health and wellness services. Furthermore, the Project Site is located within the planning area of the Puna Community Development Plan (PCDP) and within the Keaʻau Regional Town Center boundary. The PCDP seeks to direct future growth away from dispersed development patterns and toward village and town centers where infrastructure, services, employment, and community facilities can be more efficiently provided. The PCDP identifies Keaʻau as a Regional Town Center intended to accommodate 5 a range of residential, commercial, public, and community-serving uses, including region-serving facilities such as medical services. The Project Site is situated immediately north of the Keaʻau Village Master Plan area but remains within the broader Keaʻau Regional Town Center boundary. Its location within the Regional Town Center places the Project Site within an area intended to accommodate region-serving uses and the future growth of Keaʻau. The proposed health center would complement the residential, commercial, public, and community-serving uses planned within the adjacent Keaʻau Village area by providing healthcare services to residents of Keaʻau and the broader Puna District. Its location near Volcano Highway would also provide convenient regional access while supporting the PCDP's objective of concentrating services and employment within designated village and town centers. More specifically, the proposed request supports PCDP Section 3.1.1 goals to improve the quality of life and economic opportunities for Puna residents and make services and community facilities more accessible within village and town centers. It also supports Section 4.1.2 objectives to provide more services and employment within Puna's village and town centers, create employment opportunities within the district, and reduce the need for long-distance commuting. The proposed Keaʻau Benioff Health Center would further these objectives by expanding access to healthcare services within Puna, reducing the need for residents to travel to Hilo for routine and specialty medical services, and providing a region-serving facility and employment opportunities within the Keaʻau Regional Town Center. Based on the above, the proposed Keaʻau Benioff Health Center is consistent with the intent and purpose of the Zoning Code and supports the applicable goals and policies of the General Plan 2045 and Puna Community Development Plan related to the appropriate location of urban development and the provision of community and healthcare services. The granting of the proposed use shall not be materially detrimental to the public welfare nor cause substantial adverse impact to the community’s character or to surrounding properties. The proposed Keaʻau 6 Benioff Health Center would be located in an area characterized by a mix of agricultural, residential, commercial, industrial, recreational, and public uses. The surrounding area reflects a transition between the developed Keaʻau urban area to the east and predominantly agricultural and undeveloped lands to the west. The proposed medical facility would provide a community-serving use in proximity to the existing Keaʻau urban area and is not anticipated to substantially alter the existing character of the surrounding area. The proposed health center would be located on the approximately 20.018- acre project site and would consist of a single-story, approximately 40,000-square- foot medical office building with associated parking, internal roadways, landscaping, utilities, and drainage improvements. The application narrative identifies approximately 13 acres of disturbance, while the Final Environmental Assessment describes approximately 17.4 acres. Reconciliation of the disturbance area during Final Plan Approval, together with the single-story design, setbacks, and proposed landscaping, will allow the Planning Department to verify the project footprint and measures intended to reduce visual and other impacts. Operational impacts are also expected to be limited. The facility would provide urgent care, primary and specialty care, imaging, laboratory, behavioral health, and counseling services and would employ approximately 120 employees and healthcare providers. Most clinical services would operate during daytime hours, with urgent care available from approximately 8:00 a.m. to 8:00 p.m., seven days a week. Patient visits would generally occur by appointment, which would help distribute activity throughout the day, while adequate off-street parking and loading areas would be provided on-site to accommodate employees, patients, and visitors. While construction of the health center and related improvements would result in temporary impacts, including noise, dust, equipment activity, and construction traffic, these impacts would cease upon completion of construction. The Project Site is also separated from much of the existing residential development in Keaʻau by Volcano Highway and intervening agricultural, recreational, commercial, and industrial lands. Given this separation and the 7 temporary nature of construction activities, construction-related impacts are not anticipated to result in substantial long-term adverse effects on surrounding properties. Potential environmental impacts associated with the proposed development have also been evaluated. Botanical and faunal surveys concluded that significant impacts are not anticipated with implementation of the identified avoidance and mitigation measures. Archaeological work for the broader project area includes a 2004 archaeological assessment accepted in 2005, a 2014 investigation accepted in 2014, and an archaeological inventory survey based on 2016 fieldwork, submitted in 2017 and accepted by SHPD on February 12, 2018. Three plantation- era sites were identified outside and not adjacent to the current project area, and no precontact sites were identified within the project footprint. SHPD did not provide comments on the current Use Permit referral as of the date of this report. The proposed health center and associated access driveway were evaluated pursuant to Chapter 343, Hawaiʻi Revised Statutes. On May 1, 2026, the Hawaiʻi Health Systems Corporation, East Hawaiʻi Region, accepted the Final Environmental Assessment and issued a Finding of No Significant Impact, which was published on May 8, 2026. Soil screening conducted in September 2025 identified arsenic-impacted soils within portions of the project area. The Final Environmental Assessment requires a project-specific contaminated-media management plan approved by the Department of Health, Hazard Evaluation and Emergency Response Office, before disturbance of identified soils. The preceding will be added as a condition of approval. Based on the foregoing, and with compliance with the recommended conditions of approval, the proposed Keaʻau Benioff Health Center is not anticipated to be materially detrimental to the public welfare or cause substantial adverse impacts to the character of the surrounding community or properties. The granting of the proposed use shall not unreasonably burden public agencies to provide roads and streets, sewers, water, drainage, school improvements, police and fire protection and other related 8 infrastructure. The proposed Keaʻau Benioff Health Center is not anticipated to unreasonably burden public agencies or existing infrastructure. Adequate access, water, wastewater, drainage, and emergency services are available or can be provided to accommodate the proposed development, subject to compliance with applicable agency requirements and recommended conditions of approval. With respect to roads and traffic, a Traffic Impact Analysis Report (TIAR) was prepared to evaluate potential traffic impacts associated with the proposed health center. The TIAR estimates that the facility would generate approximately 96 vehicle trips during the AM peak hour and 144 vehicle trips during the PM peak hour. The analysis determined that all signalized study intersections are projected to operate at acceptable overall levels of service under Future (2028) With Project conditions, and no roadway or intersection improvements were recommended to accommodate project-generated traffic. The Hawaiʻi Department of Transportation (HDOT) stated that it had no objection to the proposed development and did not anticipate significant impacts to the State highway system. Because access would connect to State Route 11 through the Shipman Park driveway area, HDOT requires continued coordination with its Hawaiʻi District office; all required State highway access, utility, and right- of-way approvals and permits; any necessary driveway modifications and easements; and mitigation of unanticipated project-related traffic impacts at no cost to the State. These requirements apply to the integrated health-center project and are addressed through coordinated conditions in this Use Permit and companion Special Permit. County water service is proposed for the health center. The Department of Water Supply stated that water can be made available from existing 16-inch waterlines, subject to its requirements. Before issuance of a water commitment, the applicant must provide engineer-certified maximum-day, peak-flow, and irrigation-demand calculations. The applicant is also responsible for applicable deposits and facilities charges; any required service lateral, meter, and system improvements; a reduced-pressure backflow-prevention assembly within five feet of the meter; fire hydrants generally no more than 300 feet apart and within 9 150 feet of required points; relocation of affected water facilities; and required conveyances and easements before final subdivision approval or water service. The preceding will be added as a condition of this permit. There is no County wastewater collection system available to serve the Project Site. The proposed development would instead be served by an on-site wastewater treatment system designed, permitted, and constructed in accordance with State Department of Health requirements prior to operation of the facility. Accordingly, the proposed use would not require the County to extend its wastewater collection system to serve the Project Site. Police and fire services are available within Keaʻau Village. The proposed development will also be required to comply with applicable Fire Department requirements, including requirements related to emergency access and fire protection. Based on the foregoing, and with compliance with the recommended conditions of approval and applicable agency requirements, the proposed use is not anticipated to unreasonably burden public agencies to provide roads and streets, sewer, water, drainage, police and fire protection, or other related infrastructure. In addition to the criteria for granting a Use Permit, the request is not contrary to Chapter 205A, Hawaiʻi Revised Statutes, relating to the Coastal Zone Management Program. The property is outside the Special Management Area and approximately four miles from the nearest shoreline. The record does not identify exposure of the project site to coastal hazards or effects on beaches, marine resources, coastal ecosystems, or designated shoreline or mountain access. Thus, the proposed request is not anticipated to adversely affect those resources. The request will not have a significant adverse impact upon traditional and customary Native Hawaiian rights. In view of the Hawaiʻi State Supreme Court's decisions in Public Access Shoreline Hawaiʻi v. Hawaiʻi County Planning Commission (“PASH”) and Ka Paʻakai O Ka ʻĀina v. Land Use Commission, the potential effects of the proposed project on traditional and customary Native 10 Hawaiian rights must be addressed in terms of the cultural, historical, and natural resources present within the project area, the traditional and customary practices associated with those resources, potential effects of the proposed project, and feasible measures available to protect such rights and resources.  Investigation of valued resources: Although a Cultural Impact Assessment was not prepared specifically for the proposed project, the applicant submitted a 2017 Cultural Impact Assessment prepared for the broader Keaʻau Village Master Plan area. Archaeological work includes a 2004 archaeological assessment accepted in 2005, a 2014 investigation accepted in 2014, and an archaeological inventory survey based on 2016 fieldwork, submitted in 2017 and accepted by SHPD on February 12, 2018. Additional cultural consultation occurred during the Chapter 343 environmental review. The current Use Permit application was referred to SHPD; no response had been received as of the date of this report.  The valued cultural, historical, and natural resources found in the permit area: The broader Keaʻau and Puna area has a documented cultural history that includes traditional practices such as lāʻau lapaʻau and gathering lauhala for weaving. However, these practices were identified within the broader Puna District and were not identified as occurring within the permit area. The permit area has been extensively disturbed by commercial sugarcane cultivation, repeated clearing, and other agricultural activities and does not appear to contain native plant resources typically associated with traditional Hawaiian gathering practices. Prior archaeological investigations did not identify early historic or traditional Hawaiian remains or pre-Contact archaeological sites within the project area. Based on the information presently available, the record does not identify specific cultural or historical resources, traditional gathering areas, or ongoing traditional and customary Native Hawaiian practices within the permit area. With respect to natural resources, no threatened or endangered wildlife species were observed during the field surveys. However, several State and/or federally listed species may fly over, forage, roost, or otherwise utilize resources within or in the vicinity of the project area, including 11 the Hawaiian hoary bat (ʻŌpeʻapeʻa), Hawaiian hawk (ʻIo), Hawaiian goose (Nēnē), Hawaiian petrel (ʻUaʻu), Newell’s shearwater (ʻAʻo), Hawaiian coot (ʻAlae keʻokeʻo), Hawaiian duck (Koloa Maoli), Hawaiian stilt (Aeʻo), and band- rumped storm-petrel (ʻAkēʻakē). The disturbed agricultural character of the permit area limits suitable habitat for these species; however, some may occasionally traverse or utilize the area. Applicable avoidance and minimization measures have been identified to reduce potential impacts to listed species during construction and operation of the project.  Possible adverse effect or impairment of valued resources: The proposed action consists of the construction and use of a paved access driveway and associated infrastructure across previously disturbed agricultural land. Because no specific cultural resources, traditional gathering areas, or ongoing traditional and customary Native Hawaiian practices were identified within the permit area, the proposed action is not anticipated to remove or restrict access to such resources, prevent traditional gathering, or otherwise interfere with the exercise of protected Native Hawaiian rights. The Final Environmental Assessment similarly concluded that no significant adverse impacts to cultural resources, traditional practices, or gathering rights are anticipated.  Feasible actions to protect Native Hawaiian rights: The available record does not identify specific cultural resources or traditional and customary practices exercised within the permit area. Nevertheless, previously unidentified resources may be encountered. Work in the immediate vicinity of any archaeological or cultural find shall cease, the find shall be protected, and SHPD shall be contacted. Any human remains shall be addressed in accordance with Chapter 6E, Hawaiʻi Revised Statutes. These measures, together with consideration of any consultation or testimony received before decision-making, are intended to avoid or minimize potential effects on protected rights and resources. Lastly, this approval is made with the understanding that the applicant remains responsible for complying with all other applicable governmental requirements in connection with the approved use prior to its commencement or 12 establishment upon the subject property. Additional governmental requirements may include Final Plan Approval, subdivision approval, building permits, grading and grubbing permits, State highway approvals, Department of Water Supply requirements, Department of Health wastewater approvals, Fire Code compliance, Americans with Disabilities Act requirements, and electrical, plumbing, building, and other permits. Compliance with all applicable governmental requirements is a condition of this approval; failure to comply with such requirements may constitute a violation subject to enforcement action by the Planning Department and/or affected agencies. Based on the preceding findings, the establishment and operation of the Keaʻau Benioff Health Center and related improvements would promote the effectiveness and objectives of the Zoning Code, General Plan 2045, and Puna Community Development Plan. Approval of this request is subject to the following conditions: 1. The applicant(s), its successor(s) or assign(s) (“Applicant”) shall be responsible for complying with all of the stated conditions of approval. 2. The establishment and operation of the Keaʻau Benioff Health Center and related improvements shall be conducted in a manner substantially representative of the plans and details contained within the Use Permit Application (PL-USE-2026-000046) and any representations made to the Windward Planning Commission. Any substantial expansion of the facility or uses beyond what was represented shall require an amendment to this permit. 3. Construction of the proposed development shall be completed within ten (10) years from the effective date of this permit. Prior to construction, the Applicant(s) shall secure Final Plan Approval for the proposed development from the Planning Director in accordance with Section 25-2-70, Chapter 25 (Zoning Code), Hawai‘i County Code. Plans shall identify all existing and/or proposed structure(s), paved driveway access and parking stalls associated with the proposed development. Landscaping shall be indicated on the plans for the purpose of mitigating any adverse noise or visual impacts to adjacent properties in accordance with the requirements of Planning Department’s Rule 13 No. 17 (Landscaping Requirements) and Chapter 25 (Zoning Code), Hawai‘i County Code. 4. Prior to the issuance of a water commitment by the Department of Water Supply (DWS), the Applicant(s) shall submit the anticipated maximum daily water usage calculations as prepared by a professional engineer licensed in the State of Hawai‘i to the DWS. A water commitment deposit shall be paid to the DWS within one hundred and eighty (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. 5. The method of sewage disposal shall meet with the requirements of the State Department of Health. The Applicant shall obtain all required approvals for the proposed onsite wastewater treatment works prior to the issuance of a Certificate of Occupancy for the proposed health center. 6. A drainage study shall be prepared by a professional civil engineer licensed in the State of Hawaiʻi and submitted to the Department of Public Works- Engineering Division for review as part of the Final Plan Approval process. Any required drainage improvements shall be constructed meeting with the approval of the Department of Public Works prior to the issuance of a Certificate of Occupancy. 7. All earthwork and grading activity shall conform to Chapter 10, Erosion and Sedimentation Control of the Hawai‘i County Code. 8. To the extent applicable, vegetation clearing and construction activities shall incorporate the mitigation measures identified in the Final Environmental Assessment for the protection of threatened and endangered species, including measures relating to the Hawaiian hoary bat, Hawaiian hawk, and protected seabirds. 9. In the event that surface or subsurface historic or cultural resources, including human skeletal remains, structural remains, cultural deposits, or other previously unidentified archaeological resources are identified during ground- 14 disturbing or construction activities, 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. Subsequent work in the affected area shall proceed only upon receiving appropriate archaeological clearance. Any human remains encountered shall be treated in accordance with Chapter 6E, Hawaiʻi Revised Statutes, and other applicable requirements. 10. Should any state or federally listed or endangered species be found on the subject property, the Applicant shall comply with all applicable requirements of Department of Land and Natural Resources- Division of Forestry and Wildlife and/or the United States Fish and Wildlife Service. 11. Prior to ground disturbance within any area identified as containing arsenic- impacted soil, the Applicant shall prepare and obtain approval from the State Department of Health, Hazard Evaluation and Emergency Response Office, of a project-specific contaminated-media management plan. The plan shall address dust monitoring and suppression, worker and public protection, soil handling, stockpiling, transport, and lawful disposal. The Applicant shall implement the approved plan throughout construction and provide evidence of approval to the Planning Director before the affected ground disturbance begins. 12. The Applicant shall comply with all applicable County, State and Federal laws, rules, regulations and requirements. 13. Should any of these conditions not be met or substantially complied with in a timely fashion, the Planning Director may initiate procedures to revoke this Use Permit.