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HomeMy WebLinkAboutPD Recommendation Report (PL-SPP-2026-000136)1 RKeaauBenioffHealthCenterSPP – 7/31/26 COUNTY OF HAWAII PLANNING DEPARTMENT RECOMMENDATION REPORT KEAʻAU BENIOFF HEALTH CENTER SPECIAL PERMIT APPLICATION NO. PL-SPP-2026-000136 Upon review of the request against the guidelines for granting a Special Permit, the Planning Director recommends that the request for a Special Permit to construct and use an access driveway and associated utility improvements on an approximately 2.648-acre portion of a 1,246.941-acre property 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 alter this recommendation based upon additional information presented at the public hearing. This approval recommendation is based on the following findings: The applicant, Hilo Benioff Medical Center, requests a Special Permit to construct and use a two-lane access driveway, including associated street lighting and electrical, telecommunications, and other utility infrastructure, on approximately 2.648 acres within the State Land Use Agricultural District. The proposed driveway would traverse a portion of TMK (3) 1-6-003:007 and provide access from Volcano Highway to the proposed Keaʻau Benioff Health Center on adjoining TMK (3) 1-6-003:127. The applicant proposes to construct a new two-lane paved access driveway to serve the proposed Keaʻau Benioff Health Center. The driveway would extend west (mauka) from the intersection of Volcano Highway (State Route 11) and Old Keaʻau-Pāhoa Road (State Route 139), then turn north toward the Project Site. The driveway would be located within a 60-foot-wide right-of-way to be owned and maintained by W.H. Shipman, Limited. The applicant anticipates a minimum pavement width of 20 feet to comply with Fire Department requirements, with the remaining shoulder areas consisting of compacted gravel or grass. The entire driveway corridor encompasses approximately 3.266 acres. Of this area, approximately 2.648 acres would traverse TMK (3) 1-6-003:007 within the State Land Use Agricultural District and are the subject of this Special Permit request. 2 The remaining approximately 0.618 acre is located on adjoining TMK (3) 1-6-003:127 within the State Land Use Urban District and is included in the companion Use Permit application (PL-USE-2026-000046). The driveway corridor would ultimately be subdivided from the affected parcels as a separate roadway lot/right-of-way. The proposed driveway would serve the proposed Keaʻau Benioff Health Center, which is the subject of a concurrently filed Use Permit application (PL-USE-2026-000046). The health center would consist of an approximately 40,000-square-foot, single-story medical-office complex containing clinical and behavioral-health wings. Associated development would include parking, loading areas, internal roadways, landscaping, drainage improvements, utility infrastructure, and an onsite wastewater-treatment system. According to the applicant, the proposed driveway is necessary to provide safe and direct access from Volcano Highway to the proposed health center. The health center is intended to address the growing demand for urgent care, specialty care, imaging, primary care, laboratory, and behavioral-health services within the Puna District. The applicant states that providing these services in Keaʻau would reduce the need for Puna residents to travel to Hilo while helping to alleviate overcrowding and long wait times at Hilo Benioff Medical Center. The proposed health center would provide urgent care services seven days per week, including holidays, from 8:00 a.m. to 8:00 p.m. Primary care, specialty care, imaging, laboratory, behavioral-health, and counseling services would generally operate Monday through Friday from 8:00 a.m. to 4:00 p.m. The facility would employ approximately 95 employees and 25 healthcare providers and is anticipated to serve over 100 patients per day. The facility would provide outpatient services and would not operate as an emergency room or drug-rehabilitation facility. Groundbreaking is anticipated in spring 2027, with project completion expected by the end of 2028 or early 2029. The estimated cost of the overall health-center development is approximately $90 million. 3 The criteria for approving a Special Permit are based on Rule 6-7 of the Planning Commission Rules. The Planning Commission shall not approve a Special Permit unless it is found that the proposed use: (a) is an unusual and reasonable use of land situated within the Agricultural or Rural District, whichever the case may be; and (b) would promote the effectiveness and objectives of Chapter 205, Hawaiʻi Revised Statutes, as amended. The proposed use is an unusual and reasonable use of land situated within the State Land Use Agricultural District and would promote the effectiveness and objectives of the State Land Use Law and Regulations and Chapter 205, Hawaiʻi Revised Statutes, as amended. In recognizing that lands within agricultural districts may not be best suited for agricultural activities, and that certain uses, although not strictly agricultural in nature, may nevertheless be reasonable within these districts, the legislature established the Special Permit process to allow certain unusual and reasonable uses within the Agricultural District. The State Land Use Law and Regulations are intended to preserve, protect, and encourage the development of lands for the uses to which they are best suited in the interest of the public welfare of the people of the State of Hawaiʻi. Within the Agricultural District, the primary intent is to preserve lands with high agricultural potential for agricultural use. The request is unusual because the proposed access driveway and associated utilities are not agricultural uses. However, the driveway is necessary to provide safe and direct access to the proposed Keaʻau Benioff Health Center, a region-serving public-health facility located on adjoining land within the State Land Use Urban District. The driveway would occupy approximately 2.648 acres of a much larger 1,246.941-acre agricultural parcel and would follow a relatively narrow corridor between the proposed health-center site and Volcano Highway. The Special Permit area has been historically disturbed by commercial sugarcane cultivation and subsequent agricultural activities. The proposed driveway corridor traverses lands classified by the Land Study Bureau as Class C, or “Fair,” and Class D, or “Poor,” for agricultural productivity. According to the 4 Agricultural Lands of Importance to the State of Hawaiʻi map, the driveway area is generally classified as Other Important Agricultural Land with portions not classified under ALISH. The soil type within the project area is Panaʻewa very cobbly hydrous loam, 2 to 10 percent slopes, which is not classified as Prime Farmland. While approval of the request would introduce a nonagricultural use within the State Land Use Agricultural District, the driveway would affect only a limited portion of a substantially larger property and would not prevent continued agricultural use of the remaining lands. The driveway would support a significant public-health facility intended to serve the growing healthcare needs of Puna and South Hilo. Based on the preceding, the request is considered an unusual and reasonable use of agricultural land. In addition to the criteria above, the Planning Commission shall consider the criteria listed under Section 6-3(b)(5)(A) through (G). In considering these criteria, the Planning Director recommends the following: (A) Such use shall not be contrary to the objectives sought to be accomplished by the Land Use Law and Regulations. The proposed access driveway is considered an unusual and reasonable use of agricultural land and is not expected to adversely affect the preservation or agricultural use of the County’s highest-quality agricultural lands. The Special Permit area would occupy approximately 2.648 acres of a 1,246.941-acre property. Although portions of the driveway corridor are identified as Other Important Agricultural Land and include Class C and Class D agricultural soils, the proposed improvements would be confined to a narrow access corridor. The remaining portion of the property would continue to be available for agricultural use. The driveway is also necessary to provide access to a proposed health center situated within the State Land Use Urban District and within an area planned for future urban and regional development. Therefore, the request will not be contrary to the objectives sought to be accomplished by the State Land Use Law and Regulations. 5 (B) The desired use would not adversely affect surrounding properties. The proposed driveway would be located west of Volcano Highway and north of Herbert Shipman Park. Surrounding lands include a mix of agricultural, residential, commercial, industrial, recreational, and public uses. Herbert Shipman Park, zoned A-20a, is located to the south, while a portion of adjoining TMK (3) 1-6-003:127 is zoned MCX-20, with the Shipman Industrial Business Park, zoned MG-20a, located farther north. East of Volcano Highway are residential subdivisions zoned RS-15, the Puna Hongwanji Mission property zoned CV-10, and Keaʻau Village, which includes commercial and residential development, schools, and public uses. Lands to the west consist primarily of agricultural and undeveloped lands owned by W.H. Shipman, Limited. The driveway would primarily traverse previously disturbed agricultural land. No buildings or intensive commercial operations are proposed within the Special Permit area. Improvements would consist primarily of a 60-foot-wide right- of-way containing an approximately 20-foot-wide paved driveway, shoulders, drainage improvements, street lighting, and electrical and telecommunications utilities. Construction activities may temporarily generate dust, noise, and construction traffic. These impacts would be temporary and would be addressed through compliance with applicable grading, erosion-control, noise, and construction requirements. Permanent lighting would be required to comply with the Hawaiʻi County Outdoor Lighting Code and should be fully shielded to minimize glare and impacts upon adjoining properties and listed seabirds. The proposed driveway would be separated from most residential development by Volcano Highway, Herbert Shipman Park, and other intervening lands. The large size of subject property and the limited width of the access corridor would also provide substantial separation from agricultural activities on the remainder of the property. Based on the preceding, the proposed use is not anticipated to adversely affect surrounding properties. 6 (C) Such use shall not unreasonably burden public agencies to provide roads and streets, sewers, water, drainage, school improvements, and police and fire protection. Access to the proposed health center would be provided by the new approximately one-half-mile driveway extending from Volcano Highway. The driveway would be placed within a 60-foot-wide right-of-way and would be owned and maintained by W.H. Shipman, Limited. The applicant anticipates that a minimum paved width of approximately 20 feet will be required to satisfy Fire Department access requirements. The applicant submitted a Traffic Impact Analysis Report that analyzed four intersections: 1. Route 11 and Route 130; 2. Route 11 and Route 139/Shipman Park Driveway; 3. Route 11 and Paʻahana Street/Naʻauao Road; and 4. Route 130 and Route 139. The TIAR concluded that the studied intersections would generally continue to operate at acceptable overall levels of service under projected 2028 with-project conditions and did not recommend intersection improvements to accommodate the proposed health center. HDOT nevertheless requires continued coordination and permits and requires the applicant to mitigate any unanticipated project-related traffic impacts at no cost to the State. The Hawaiʻi Department of Transportation stated that it had no objection to the Special Permit application and did not anticipate significant impacts to the State highway system. Before construction, the applicant must coordinate with HDOT’s Hawaiʻi District office; obtain all required State highway access, utility, right-of-way, and work permits; provide any necessary modifications and easements; and mitigate unanticipated project-related impacts at no cost to the State. A condition reflecting these requirements is recommended. County water service is proposed for the health center, with utility infrastructure extending through the access corridor. The detailed water-service 7 requirements are included in the companion Use Permit conditions; work within the Special Permit corridor must also comply with applicable DWS approvals. Wastewater and solid waste disposal requirements are included in the companion Use Permit conditions. The property is located within Flood Zone X, an area determined to be outside the 500-year floodplain. The application identifies a drainage basin that crosses the proposed driveway corridor. The applicant proposes to construct an appropriate drainage feature where the drainage path crosses beneath the access road. A condition of approval will require the preparation of a drainage study and construction of any drainage improvements required by the Department of Public Works. Electrical and telecommunications services would be extended through the driveway corridor. Police, fire, emergency-medical, and other public services are available in the Keaʻau and Hilo areas. Based on the preceding, and subject to compliance with agency requirements and recommended conditions of approval, the requested use is not expected to unreasonably burden public agencies to provide roads, water, drainage, wastewater, police, fire, or other public services. (D) Unusual conditions, trends, and needs have arisen since the district boundaries and regulations were established. The Agricultural District boundary predates the present need for permanent access to the adjoining Urban District site selected for a region-serving health center. The proposed corridor would connect the Urban District project site to Volcano Highway while also improving access to surrounding W.H. Shipman lands. The project responds to the increased demand for health-care services in Puna and to the planning direction that concentrates regional services within the Keaʻau Regional Town Center. These circumstances support consideration of the limited access and utility corridor through the Special Permit process. (E) The land upon which the proposed use is sought is unsuited for the uses permitted within the district. The proposed driveway corridor traverses land historically used for sugarcane cultivation and subsequent agricultural activities. According to the Land Study Bureau’s Detailed Land Classification 8 System, soils within the Special Permit area are classified as Class C, or “Fair,” and Class D, or “Poor,” for agricultural productivity. The U.S. Department of Agriculture identifies the soil as Panaʻewa very cobbly hydrous loam, 2 to 10 percent slopes, which is not classified as Prime Farmland. Although portions of the permit area retain some agricultural potential, the driveway would occupy only approximately 2.648 acres of a 1,246.941-acre parcel. Approval of the driveway would not preclude agricultural use of the remainder of the property. Based on these factors, the land upon which the use is proposed is not considered well suited for sustained independent agricultural use. (F) The use will not substantially alter or change the essential character of the land and the present use. The proposed driveway would affect approximately 2.648 acres of a 1,246.941-acre parcel. The improvements would be confined to a relatively narrow 60-foot-wide corridor and would consist of a two- lane paved driveway, shoulders, drainage features, street lighting, and electrical and telecommunications utilities. The surrounding area is transitional in character and includes agricultural lands, Herbert Shipman Park, Volcano Highway, Keaʻau Village, residential neighborhoods, schools, commercial uses, and the Shipman Business Park. The General Plan and Puna Community Development Plan identify the broader Keaʻau area for continued development as a regional town center. The driveway will not introduce industrial operations or another intensive use within the Agricultural District. The remaining lands within the subject parcel would retain their existing character and availability for agricultural use. Therefore, the proposed use would not substantially alter the essential character of the property or surrounding area. (G) The request will not be contrary to the General Plan, Puna Community Development Plan, and other applicable planning documents. The General Plan 2045 Land Use Map identifies the Special Permit area and adjoining health center site within the Medium Density Urban designation. This designation is intended to accommodate a mix of village and neighborhood commercial, light service industrial, and residential uses. The proposed driveway 9 would provide necessary access and supporting infrastructure for the proposed Keaʻau Benioff Health Center on the adjoining parcel and would not conflict with the planned urban character of the area. The General Plan 2045 establishes goals and policies supporting sustainable and resilient communities, adequate infrastructure and public services, and access to healthcare and other essential community services. The proposed driveway would support these objectives by facilitating development of a regional health center intended to improve access to urgent care, primary and specialty care, imaging, laboratory, and behavioral health services for residents of Puna and South Hilo. The Puna Community Development Plan (PCDP) identifies the project area within the Keaʻau Regional Town Center and encourages the concentration of services and community facilities within village and town centers. The PCDP specifically seeks to improve access to emergency and primary medical care, provide more services within Puna's village and town centers, and reduce the need for residents to travel outside of Puna for services. The PCDP further identifies the portion of the Keaʻau Regional Town Center containing the Project Site for region- serving uses, including proposed medical facilities. The proposed driveway is an integral component of the health center and would provide permanent access between the facility and Volcano Highway. Accordingly, the request would support the planned development of the Keaʻau Regional Town Center and further the General Plan 2045 and PCDP objectives of concentrating infrastructure and region-serving services within designated growth areas. Therefore, the request is not contrary to the General Plan 2045 or the Puna Community Development Plan. The proposed use is not contrary to the objectives sought to be accomplished by Chapter 205A, Hawaiʻi Revised Statutes, relating to Coastal Zone Management program. The subject property is outside the Special Management Area and approximately four miles from the nearest coastline. The record does not identify effects on shoreline access, beaches, marine waters, coastal ecosystems, or designated shoreline or mountain access. Therefore, the 10 proposed use is not anticipated to adversely affect coastal resources or public access. The request will not have a significant adverse impact to traditional and customary Hawaiian Rights. In view of the Hawaiʻi State Supreme Court’s “PASH” and “Ka Paʻakai O KaʻAina” decisions, the issue relative to native Hawaiian 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: 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 11 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 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 12 protected rights and resources Lastly, this recommendation is made with the understanding that the applicants remain responsible for complying with all other applicable governmental requirements in connection with the proposed use. 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 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 proposed access driveway and associated utility improvements constitute an unusual and reasonable use of land within the State Land Use Agricultural District and would promote the effectiveness and objectives of Chapter 205, Hawaiʻi Revised Statutes. 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 stated conditions of approval. 2. The construction of the access driveway and associated utility improvements shall be conducted in a manner that is substantially representative of plans and details contained within the Special Permit Application (PL-SPP-2026-000136) received by the Planning Department on June 2, 2026, and any representations made to the Windward Planning Commission. Any substantial expansion of the facility or uses beyond what is represented in these documents shall require an amendment to this permit. 3. Prior to the issuance of a Certificate of Occupancy for the medical clinic, the applicant shall complete construction of the 20-foot driveway within a 60-foot-wide road lot. 4. Access to the subject property from State Route 11 shall meet with the approval of the State Department of Transportation. Prior to construction, the Applicant shall coordinate with HDOT’s Hawaiʻi District office and obtain 13 all required access, utility, right-of-way, and work permits; provide any necessary modifications and easements; and mitigate unanticipated project-related traffic impacts at no cost to the State. 5. Utility and water-system improvements within the Special Permit corridor shall comply with applicable Department of Water Supply requirements and approvals. Detailed water-service requirements for the health center shall be satisfied under companion Use Permit PL-USE-2026-000046. 6. 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 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 with the approval of the Department of Public Works prior to receipt of Final Subdivision Approval. 7. All earthwork and grading activity shall conform to Chapter 10, Erosion and Sedimentation Control of the Hawai‘i County Code. 8. The Applicant shall notify prospective purchasers, tenants, or lessees of the subject property that farming operations and practices on adjacent or contiguous land in the State Land Use Agricultural District are protected under Hawaiʻi Revised Statutes Chapter 165, the Hawaiʻi Right to Farm Act. This notice shall be included in any disclosure required for the sale or transfer of the subject parcel. 9. 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. 10. 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 14 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 (SHPD) at (808) 933-7651. Subsequent work shall proceed upon archaeological clearance from SHPD when it finds that sufficient mitigation measures have been taken. 11. 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. 12. 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 addressing 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 affected ground disturbance begins. 13. The Applicant shall comply with applicable County, State and Federal laws, rules, regulations and requirements of the affected government agencies for the proposed uses. 14. 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.