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HomeMy WebLinkAboutPD Recommendation Report (PL-SMA-2025-000085)R_TALON_1_SMA COUNTY OF HAWAI‘I PLANNING DEPARTMENT RECOMMENDATION TALON 1 PROPERTIES LLC SPECIAL MANAGEMENT AREA USE PERMIT APPLICATION (PL-SMA-2025-000085)_________________________________________________ Upon careful review of the applicant’s request against the guidelines for granting a Special Management Area Use Permit, the Planning Director recommends that this request to construct and operate a three-story, approximately 98,500-square-foot self-storage warehouse with associated parking, loading areas, access improvements, utility extensions, landscaping, drainage improvements, and related development on approximately 2.57 acres of land within the Special Management Area (SMA) be approved by the Planning Commission. Since this recommendation is made without the benefit of public testimony, the 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: The applicant is requesting a Special Management Area Use Permit to construct and operate a three-story self-storage warehouse on approximately 2.57 acres of land situated at 525 Piʻilani Street, Waiākea, South Hilo, Hawaiʻi, TMK: (3) 2-2-033:011. The approximately 98,500-square-foot facility would contain approximately 264 individual storage units together with restrooms, elevators, two covered porte-cocheres, parking and loading areas, landscaping, drainage improvements, utility connections, and related site improvements. The proposed building would have a maximum height of approximately 41 feet 8 inches. The project includes approximately 28 parking stalls, including ADA- accessible stalls, and seven 12-foot by 50-foot loading areas. Existing vehicular access is from Piʻilani Street. The applicant also proposes to extend the presently undeveloped portion of Mililani Street north of Piʻilani Street along the western side of the property to County dedicable standards and to extend the County sewer line north from its existing terminus near the Piʻilani Street/Mililani Street intersection. -2- OPSD summarized the project as including the three-story warehouse, storage units, loading and parking areas, Mililani Street extension, and sewer extension. The estimated development cost is approximately $5 million, and construction is anticipated to be completed within approximately five years. A concurrent application, PL-REZ-2026-000104, requests an amendment to Change of Zone Ordinance No. 92-122 to provide additional time to satisfy outstanding conditions relating to Final Plan Approval and construction. The project site is currently vacant and has previously been used for industrial and warehouse-related activities. The site has also been subject to previous clearing and disturbance. The applicant obtained Special Management Area Minor Permit PL-SMM-2022-000012 for clearing of the property. A Final Environmental Assessment and Finding of No Significant Impact for the Talon 1 Properties Self-Storage Warehouse, PL-ENV-2024-000028, was published in the September 8, 2025, edition of The Environmental Notice. Environmental studies supporting the project include an Archaeological Inventory Survey, Cultural Impact Assessment, biological survey, Traffic Impact Analysis Report, Storm Water Pollution Prevention Plan, and other technical evaluations. The grounds for approving development within the Special Management Area are based on HRS, Chapter 205A-26(2) (Special Management Area guidelines) and Rule 9-11(e) of the Planning Commission Rules of Practice and Procedure. Planning Commission Rule 9-11(e) states that the Authority (Planning Commission) may permit the proposed development only upon finding that: 1. The development will not have any substantial adverse environmental or ecological effect except as such adverse effect is minimized to the extent practicable and is clearly outweighed by public health, safety or compelling public interest; 2. The development is consistent with the objectives and policies and the Special Management Area guidelines as provided by Chapter 205A, HRS; -3- 3. The development is consistent with the General Plan, Community Plan, Zoning Code and other applicable ordinances; 4. The development will, to the extent feasible, reasonably protect native Hawaiian rights if they are found to exist, including specific factual findings regarding: a. The identity and scope of valued cultural historical or natural resources in the petition area, including the extent to which traditional and customary native Hawaiian rights are exercised in the petition area; b. The extent to which those resources including traditional and customary native Hawaiian rights, will be affected or impaired by the proposed action; and c. The feasible action, if any, to be taken by the Authority to reasonably protect any valued cultural, historical or natural resources including any existing traditional and customary native Hawaii rights. In review of the SMA guidelines as listed under HRS 205A-26(2)(A), the proposed development will not have any substantial adverse environmental or ecological effect, except as such adverse effect is minimized to the extent practicable and clearly outweighed by public health, safety, or compelling public interest. The approximately 2.57-acre project site is located in an urbanized portion of Hilo and has been subject to historic industrial, warehouse, clearing, and other land-disturbing activities. Construction of the proposed facility will nevertheless involve substantial site work, including grading, paving, building construction, utility installation, drainage improvements, landscaping, and roadway improvements. The Storm Water Pollution Prevention Plan (SWPPP) estimates that approximately 2.52 acres may be disturbed during construction of the project. Potential temporary environmental impacts will primarily involve construction-related erosion and sedimentation, stormwater runoff, dust, noise, traffic, and disturbance associated with grading and building activity. These impacts can be minimized through compliance with County grading and erosion- -4- control requirements, implementation of the project SWPPP, application of appropriate Best Management Practices (BMPs), and compliance with applicable State Department of Health requirements. The SWPPP requires installation and maintenance of stormwater controls and BMPs throughout construction, regular inspections, corrective action when deficiencies are identified, and continued monitoring for compliance with applicable permit conditions. Because more than one acre of land is expected to be disturbed, OPSD has also recommended consultation with the State Department of Health Clean Water Branch regarding applicable National Pollutant Discharge Elimination System requirements. Long-term environmental effects are expected to be relatively limited. The proposed use is primarily an enclosed storage facility and does not involve industrial processing, manufacturing emissions, extraction of natural resources, or routine use of substantial quantities of hazardous materials. Wastewater will be directed to the County wastewater system rather than disposed of through an individual wastewater system, and site drainage improvements will be required to manage project-generated runoff. The Final Environmental Assessment concluded that the proposed project would not result in significant environmental impacts, and a Finding of No Significant Impact (FONSI) was issued. Based on the foregoing and subject to appropriate conditions of approval, the proposed development is not anticipated to result in any substantial adverse environmental or ecological effect. Any potential impacts can be minimized through adherence to BMPs, regulatory requirements, and appropriate conditions of approval. Accordingly, the project is consistent with the intent and requirements of HRS §205A-26(2)(A). This determination is based on the following: In review of the SMA guidelines as listed under HRS 205A-26, the proposed development is consistent with the objectives and policies as provided by Chapter 205A-26, HRS, and Special Management Area guidelines contained in Rule No. 9 of the Planning Commission Rules of -5- Practice and Procedure. The purpose of Chapter 205A-26, Hawaiʻi Revised Statutes (HRS) and Rule 9 of the Planning Commission Rules of Practice and Procedure, is to preserve, protect, and where possible, to restore the natural resources of the coastal zone areas. Therefore, special controls on development within an area along the shoreline are necessary to avoid permanent loss of valuable resources and the foreclosure of management options. The objectives and policies of Chapter 205A- 26, HRS and Rule 9-10(h) include, but are not limited to, the protection of coastal recreational resources, historic resources, scenic and open space resources, coastal ecosystems, marine resources, beaches, and controlling development in coastal hazard areas. The proposed development has been reviewed in accordance with the objectives and policies of the Coastal Zone Management Act, Chapter 205A, Hawaiʻi Revised Statutes (HRS), including the Special Management Area (SMA) guidelines set forth under HRS §205A-26, and Rule No. 9 of the County of Hawaiʻi Planning Commission Rules of Practice and Procedure. The following provides an evaluation of the project’s consistency with applicable resource categories: Recreational Resources: The subject property itself does not contain public recreational facilities. However, the property is located approximately 625 feet east of the Wailoa River/Waiākea Fishpond and Wailoa River State Recreation Area, while the Hoʻolulu Park recreational complex is located generally east and northeast of the site. The FEA determined that existing access to Wailoa River State Recreation Area via Piʻilani Street would not be affected by the proposed development. Construction traffic and project operations will occur in an area already used for commercial, recreational, residential, and other urban activities. A Traffic Impact Analysis Report was completed for the project and found that existing study intersections generally operate at acceptable levels of service. At Manono Street and Piʻilani Street, existing movements were identified as operating at Level of Service C or better during the analyzed peak periods. The Hawaiʻi Police -6- Department reviewed the proposal and does not anticipate significant traffic or public-safety concerns. The project is therefore not anticipated to adversely affect access to or use of nearby recreational resources. Historic Resources: An Archaeological Inventory Survey (AIS) conducted in 2018 identified one historic site consisting of a concrete slab interpreted as a historic foundation or walkway associated with previous industrial activity on the property. The site was determined significant for its informational value. Mapping, written descriptions, and photography were considered adequate documentation, and no further work or preservation was recommended. Four displaced isolated objects associated with historic activities were also identified. The proposed project is not anticipated to adversely affect known historic properties. A standard archaeological discovery condition should nevertheless be imposed requiring work to cease and SHPD to be contacted if previously unidentified historic or cultural resources are encountered during construction. In connection with the 2018 Special Management Area Use Permit and Change of Zone amendment applications for a proposed potable water well and bottling facility, SHPD reviewed and accepted the Archaeological Inventory Survey for the subject property and issued a determination of “no historic properties affected” for that prior project. Although that determination applied to a different development proposal, the accepted AIS remains relevant to the archaeological resources documented on the subject property. Planning Staff notes that the current self- storage project was also submitted to SHPD for review pursuant to HRS Chapter 6E-42; to date, no response has been received. Scenic and Open Space Resources: Wailoa River State Recreation Area and the Waiākea Fishpond are significant scenic and open-space resources located west of the project site. The Hoʻolulu Park complex also provides substantial recreational open space to the east and northeast. -7- The proposed building will be approximately three stories and 41 feet 8 inches high. Although the project site is presently separated from Wailoa River State Recreation Area by intervening vacant lands and vegetation, protection of scenic resources should not rely exclusively on vegetation located on property outside the applicant’s control. The project will therefore incorporate landscaping, building treatment, setbacks, and other design measures to reduce the visual mass of the structure and minimize potential effects on surrounding recreational and open-space areas. The proposed building height is below the 45-foot height limit applicable to the ML district. Landscaping and final architectural treatment will be reviewed through Plan Approval. Exterior lighting will also be designed and shielded to minimize unnecessary glare and light spill onto surrounding properties and toward coastal and recreational resources. Coastal Ecosystems and Marine Resources: The project site is not a shoreline parcel and does not contain beaches, dunes, wetlands, or identified sensitive coastal ecosystems. However, the property is approximately 625 feet from the Wailoa River/Waiākea Fishpond, which is hydrologically connected to Hilo Bay. Protection of water quality is therefore an important consideration. The project proposes connection to the County wastewater system, together with an engineered drainage system and construction BMPs to control stormwater runoff. The FEA concluded that wastewater and stormwater controls would prevent significant adverse effects on coastal ecosystems and downstream resources. OPSD has further recommended incorporation of Low Impact Development (LID) measures, including infiltration basins or trenches, rain gardens, vegetated filter strips, and similar approaches intended to preserve or enhance predevelopment hydrology and reduce runoff. Incorporation of Low-Impact Development (LID) measures, as required by a condition of approval, together with implementation of the SWPPP and applicable NPDES requirements, will reduce -8- the potential for sediment, pollutants, and increased runoff to enter downstream coastal waters. Economic Uses: The subject property does not support fishing, aquaculture, agriculture, navigation, or other coastal-dependent economic activity. Development of the property will therefore not displace existing coastal-dependent economic use. The proposed project represents approximately $5 million private investment and will generate construction activity and ongoing commercial use of a presently vacant urban parcel. Coastal Hazards: The property is located within the SMA as well as within FEMA Flood Zone X. The FEA concluded that the property is outside the mapped 500-year floodplain and is not expected to be significantly affected by coastal flooding or the analyzed sea-level-rise exposure. The project would replace a vacant parcel with a nonresidential, primarily storage-oriented use rather than establishing intensive residential occupancy in proximity to coastal hazard areas. Compliance with applicable flood-control, drainage, building-code, and emergency-access requirements will further reduce risks to life and property. Based on the foregoing, the proposed development is consistent with the applicable objectives, policies, and guidelines of Chapter 205A, HRS, and Rule No. 9 of the Planning Commission Rules of Practice and Procedure. The proposed development is consistent with the County General Plan, Hilo Community Development Plan (HCDP), Zoning Code, and other applicable ordinances. The subject property is classified Urban by the State Land Use Commission and was designated Industrial on the 2005 General Plan Land Use Pattern Allocation Guide Map pursuant to General Plan Amendment Ordinance No. 91-72. The Industrial designation was intended to accommodate manufacturing and processing uses, wholesaling, large storage and transportation facilities, and light industrial and industrial-commercial activities. A self-storage -9- warehouse is consistent with the storage and service-industrial character contemplated by this designation. The property is currently zoned Limited Industrial-20,000 square feet (ML- 20) pursuant to Change of Zone Ordinance No. 92-122. The proposed self-storage warehouse represents a storage-oriented use compatible with the purpose and intent of the ML district. Approval of the concurrently processed amendment to Ordinance No. 92-122 will be required to provide additional time for compliance with outstanding Final Plan Approval and construction conditions. The Hilo Community Development Plan predates the General Plan amendment and subsequent rezoning of the property and recommends residential and recreational/open-space uses in portions of the broader area. The project does not expand industrial zoning into adjacent recreational or residential lands and is confined to a parcel that has been designated and zoned for industrial use for more than three decades. Surrounding zoning and land uses are mixed. The Hoʻolulu Park complex and Wailoa River State Recreation Area are zoned Open; lands to the south and southeast are primarily General Commercial-7,500 square feet (CG-7.5); lands farther west and southwest are primarily Resort-Hotel, 750 square feet (V-.75); and residential neighborhoods zoned RS-10 occur farther south. The proposed self- storage use is comparatively passive relative to many manufacturing or processing uses potentially allowed within an industrial district and can be made compatible with surrounding uses through appropriate landscaping, lighting, drainage, access, and operational controls. General Plan 2045 Subsequent to acceptance of the subject application, the County adopted General Plan 2045 through Ordinance No. 26-44, effective June 26, 2026. While the application is being evaluated under the General Plan in effect when the application was accepted, staff have also reviewed the project for general consistency with the County’s newly adopted long-range land use framework. -10- The new Plan establishes a Light/Service Industrial designation for uses such as business parks, distribution centers, product assembly, research and development, laboratories, and other light service-industrial activities, and identifies ML and MCX zoning as compatible. Significantly, the Industrial Center Standard Guidelines specifically identify Waiākea Houselots as an existing Service and Innovation industrial location associated with Light Industrial land use and ML/MCX zoning. Such areas are described as being located close to population centers and supporting non-noxious business and industrial uses on reasonably level lands with access to paved roads. General Plan 2045 also provides that industrial development should occur in areas adequately served by transportation, utilities, and other essential infrastructure; supports warehouse uses near major transportation corridors, airports, and harbors; and calls for mitigation of industrial impacts on surrounding uses through landscaping, trees, open space, buffers, and other appropriate conditions. The proposed development utilizes an existing industrially zoned parcel within Hilo rather than expanding industrial development into rural, agricultural, natural, or undeveloped lands. Water, wastewater, roadway, electrical, police, fire, and other urban services are available in the surrounding area, although additional improvements and agency approvals will be required. Accordingly, the proposed development is not contrary to and is generally consistent with the land use pattern and applicable industrial development policies of General Plan 2045. Infrastructure and Public Services The Department of Water Supply has indicated that water can be made available from an existing six-inch waterline within Piʻilani Street and has no objection to the proposed SMA Use Permit, subject to compliance with its requirements. DWS requires engineered water-demand calculations, appropriate facilities charges and meter sizing, installation of reduced-pressure backflow prevention, and relocation or adjustment of water facilities where necessary. DWS additionally noted that the existing six-inch Piʻilani Street waterline and eight-inch -11- Manono Street waterline are inadequate to provide the 2,000-gallons-per-minute fire-flow requirement under its Water System Standards. This matter must therefore be resolved with DWS and the Hawaiʻi Fire Department prior to occupancy of the proposed building. Wastewater will be handled through the County wastewater system. The project proposes to extend the existing sewer line from its present terminus near Piʻilani Street and Mililani Street. The Department of Environmental Management may require additional sewer analysis and facility improvements prior to connection. The proposed extension of Mililani Street and other roadway improvements will remain subject to review and approval by the Department of Public Works. The project TIAR identifies no unacceptable existing intersection operations attributable to the proposed use, although future background traffic growth may warrant improvements to the Manono Street/Piʻilani Street intersection. Police does not anticipate significant traffic or public-safety concerns. 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 Paʻakai O KaʻAina” 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: A Cultural Impact Assessment (CIA) was prepared for the project and included archival research, review of historic and cultural literature, agency and organizational consultation, public notices, and consultation with persons knowledgeable about the cultural history of Waiākea and the broader Hilo area. The CIA documents the substantial cultural significance of Waiākea Ahupuaʻa and Hilo Bay, including traditional settlement, agriculture, freshwater resources, fishponds, fishing, gathering, religious sites, and other cultural practices. The CIA notes that letters of inquiry were sent to organizations and -12- individuals with knowledge of the project area, public notices were published, historical and cultural source material was reviewed extensively, and cultural consultation was undertaken. An Archaeological Inventory Survey was also completed for the subject property and identified one historic concrete feature associated with prior industrial use. The valuable cultural, historical, and natural resources found in the area: Waiākea Ahupuaʻa and the Hilo Bay area contain important cultural and natural resources, including Wailoa River/Waiākea Fishpond, freshwater resources, former agricultural areas, traditional settlement areas, historic and cultural sites, and areas historically associated with fishing and gathering. During consultation, members of the Waiākea Ahupuaʻa Crown Land Heirs emphasized the cultural importance of the broader Hilo landscape and expressed a desire that development recognize and, where feasible, incorporate traditional cultural places and practices. However, the CIA found no evidence that the subject 2.57-acre parcel itself was historically used for religious practices, canoeing, fishing, gathering of river or marine resources, culturally significant gathering or collecting, or agricultural practices. The CIA concluded that significant cultural practices occurred elsewhere in the broader area, particularly north and west of the project site, but that there was no evidence that those practices occurred on the subject property. Possible adverse effects or impairment of valued resources: The subject property has experienced substantial previous disturbance and industrial use. No ongoing traditional or customary Native Hawaiian gathering, fishing, access, or other practice has been identified on the parcel. The proposed project will not obstruct public access to Wailoa River State Recreation Area or known cultural resources located outside the property. The known archaeological feature on the property has been adequately documented, and no further preservation work was recommended. Therefore, based on the available record, the development is not expected to adversely affect identified traditional and customary Native Hawaiian practices. -13- Feasible actions to protect native Hawaiian rights: No additional project- specific mitigation is presently necessary to protect any identified traditional or customary practices on the subject parcel as none were identified or described by the community. Based on the foregoing, the Planning Director finds that the proposed development will, to the extent feasible, reasonably protect Native Hawaiian traditional and customary rights. In addition, if archaeological or cultural materials are encountered during project implementation, work should cease in the vicinity of the discovery and further coordination with SHPD should occur before construction resumes. These measures provide the practical mechanism for identifying valued cultural resources, assessing any traditional and customary practices that may be associated with them, and ensuring that native Hawaiian rights are reasonably protected to the extent feasible in accordance with PASH, Ka Paʻakai O Ka ʻĀina, HRS Chapter 6E, and HRS §205A-26. Lastly, this approval is made with the understanding that the Applicant remains responsible for complying with all other applicable government requirements in connection with the approved use, prior to its commencement or establishment upon the subject property. Additional governmental requirements may include the issuance of building permits, the installation of approved wastewater disposal systems, compliance with 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 above findings, the proposed development will not have substantial adverse impacts on the environment, nor will its approval be contrary to the objectives and policies of Chapter 205A, HRS, relating to Coastal Zone Management and Rule No. 9 of the Planning Commission relating to the Special Management Area. Approval of this request is subject to the following conditions: -14- 1. The applicant(s), its successor(s), or assign(s) (Applicant) shall be responsible for complying with all stated conditions of approval. 2. The Applicant shall secure all necessary approvals and permits from other affected Federal, State, and County agencies as necessary to comply with all applicable laws and regulations. 3. Other than the proposed project as described in this permit, no further work is permitted under this approval. 4. The effective date of this Special Management Area Use Permit shall be the effective date of the amendment to Change of Zone Ordinance No. 92-122 associated with PL-REZ-2026-000104. 5. The Applicant shall comply with conditions of the approved amendment to Change of Zone Ordinance No. 92 122 (REZ 727). 6. Construction of the storage facility and related improvements shall be conducted in a manner that is substantially representative of plans and details as contained within the SMA Application dated June 4, 2026, and representations made to the Windward Planning Commission. 7. Construction shall be completed within five (5) years from the effective date of this permit. Prior to construction, the Applicant 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 structures, paved driveway access, parking stalls, landscaping, and other improvements associated with the proposed development. Landscaping shall be indicated on the plans for the purpose of mitigating adverse noise or visual impacts to adjacent properties in accordance with the requirements of Planning Department Rule No. 17 (Landscaping Requirements) and Chapter 25, Hawai‘i County Code. 8. Artificial light from exterior lighting fixtures, including, but not necessarily limited to floodlights, up-lights or spotlights used for decorative or aesthetic purposes shall be prohibited if the light directly illuminates, or is directed to project across property boundaries toward, the shoreline and ocean waters, except as may otherwise be -15- permitted pursuant to Section 205A-71(b), Hawai‘i Revised Statutes. 9. The applicant shall comply with Chapter 27 - Flood Control, of the Hawai‘i County Code. 10. All earthwork and grading shall conform to Chapter 10, Erosion and Sedimentation Control of the Hawai‘i County Code. 11. 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. 12. All development generated runoff shall be disposed of on site and shall not be directed toward any adjacent properties. 13. The Applicant shall ensure that excessive siltation and turbidity are contained or otherwise minimized through the use of silt containment devices or barriers, or other approved Best Management Practices to minimize impacts to the nearshore and riverine areas. 14. During construction, measures shall be taken to minimize the potential of both fugitive dust and runoff sedimentation. Such measures shall be in compliance with construction industry standards and practices utilized during construction projects of the State of Hawai‘i. 15. 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 State Historic Preservation Division 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. 16. An initial extension of time for the performance of conditions within this permit may be granted by the Planning Director upon the following circumstances: A. The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant, successors or assigns, and that are not the result of their fault or negligence. -16- B. Granting of the time extension would not be contrary to the General Plan or Zoning Code. C. Granting of the time extension would not be contrary to the original reasons for the granting of this permit. D. 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). E. If the Applicant should require an additional extension of time, the Planning Department shall submit the applicant's request to the Planning Commission for appropriate action. 17. That in issuing this permit, the Commission has relied on the information and data that the Applicant has provided in connection with this permit. If, subsequent to this permit, such information and data prove to be false, incomplete or inaccurate, this permit may be modified, suspended or revoked, in whole or in part, and/or the Commission may, in addition, institute appropriate legal proceedings. 18. Should any of the foregoing conditions not be met or substantially complied with in a timely fashion, the Planning Director may initiate procedures to revoke the permit.