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HomeMy WebLinkAbout2012-06-07 Windward Transcript HI Island Bd. of Realtors PLANNING COMMISSION COUNTY OF HAWAI‘I HEARING TRANSCRIPT JUNE 7, 2012 HAWAII ISLAND BOARD OF REALTORS A regularly advertised hearing on the application of ‘ (REZ 12-153) was called to order at 9:22 a.m. in the Council Chambers, Hawai‘i County Building, 25 Aupuni Street, Hilo, Hawai‘i, with Chairman Zendo Kern presiding. COMMISSIONERS PRESENT: Zendo Kern, Dean Au, Ronald Gonzales, and Stephen Ono STAFF PRESENT: Ivan Torigoe (Deputy Corporation Counsel), B. J. Leithead Todd (Planning Director), Daryn Arai (Planning Program Manager), Phyllis Fujimoto (Staff Planner), Jeff Darrow (Staff Planner), and Sharon Nomura (Secretary) ABSENT AND EXCUSED: Wallace Ishibashi and Raylene Moses And 7 people from the public in attendance. APPLICANT: HAWAII ISLAND BOARD OF REALTORS (REZ 12-153) ‘ Change of Zone from a Single Family Residential-10,000 square feet (RS-10) to General Commercial- 20,000 square feet (CG-20) for 20,160 square feet of land. The property is located along the northeast (makai) side of Kino‘ole Street, approximately 250 feet northwest of the Kino‘ole Street-Lanikaula Street intersection, Waiākea Houselots, Waiākea, South Hilo, Hawai‘i, TMK: 2-2-024:005. KERN: Application No. 3, Hawai‘i Island Board of Realtors (REZ 12-153), Change of Zone from a Single Family Residential-10,000 square feet (RS-10) to General Commercial-20,000 square feet (CG- 20) for 20,160 square feet of land, located on TMK: 2-2-024:005 in Waiākea Houselots on Kino‘ole Street-Lanikaula Street intersection. And I’ll take the opportunity to thank the staff for doing such a great job of preparing all of our background reports and recommendation. We do appreciate all your hard work. With that, we’ll move on to staff presentation. Jeff? ‘ DARROW: Thank you, Mr. Chairman. As mentioned our next applicant is the Hawaii Island Board of Realtors. They’re requesting a Change of Zone. The location of this subject property is within the South Hilo district. More specifically, we’re looking at Kilauea running in a north/south direction in the middle of the map, as well as Kino‘ole Street. They’re running parallel. We have Lono Street that is running in a, I guess, north/south as well. But, additionally we have West Lanikāula Street. The subject property is identified with a black outline on the lower portion of the map. Again, the different colors represent the different types of zoning. The yellow is representative of Single-Family Residential – 10,000 square feet. The darker colors that you see on the map, as well as the lighter brown colors, represent both Commercial zoning as well as Multiple Family Residential zoning. These different darker colors represent Commercial or General Commercial zoning, which is similar to what the applicant is requesting. This is the General Plan LUPAG Map for the property. The red identifies High Density Urban, which allows for General Commercial as well as Multiple Family Residential type uses. 1 EXHIBIT A This is an aerial of the photo. We have Kino‘ole Street running through the middle of the map, West Lanikaula on the lower right-hand portion. The subject property is identified with a little red “x,” and so you’ll see there is an existing dwelling on the property at this time. The applicant is requesting a change of zone from Single Family Residential-10,000 square feet (RS-10) to General Commercial-20,000 square feet (CG-20). The applicant is proposing to renovate and convert the existing dwelling into an office for use by the Hawai‘i Island Board of Realtors. This is the applicant’s site plan that was submitted along with the application. On your left side of the map, you have Kino‘ole Street, and then we show the different accesses coming into the property. Parking will be in the rear portion of the property. As you can see that there’s also an open area which will be . mainly lawn Parking is in the rear, the proposed office, existing dwelling and, again, we have two accesses onto Kinoole Street. Here are some site photos of the area. This is Kino‘ole Street looking towards the north. The subject property is on the right. Again, we’re looking at the subject property looking to the south; and this is the current access on the property. The Planning Director is recommending that the Planning Commission forward a favorable recommendation to the County Council for this change of zone request. We do have one letter that has been submitted to the Planning Commission, and if I can bring that to your attention. This was dated, th in fact, it was received June 4, and it’s from Susan McGinn who is an adjoining neighbor. On the property to the lower portion on the map here to the south, this is a flag lot property. She owns the property in the rear portion of the flag. So there is a flag that comes off a roadway lot, and then her property is here. KERN: Could you move it back to the aerial photo, please? DARROW: Sure no problem. KERN: The aerial -. DARROW: What I can do, this might be a little better, we’ve gotten little better aerials for you. So this one kind of gives you a better idea. So we have the flag coming in the back, and then this is the property that she owns. And then this is where the access is to the subject property. So in her letter she mentions concerns regarding, you know, parking affecting her, I'm sorry parking in this location affecting her property, and she brings in different impacts that might happen. This is a little better view. Again, we can see her property is here. You have the flag onto Kino‘ole, this is the subject property here. Parking will be generally in this location. This is a good time to maybe let our Planning Program Manager Darren Arai speak to a situation regarding landscaping. KERN: Very good. DARROW: Thank you. KERN: Thank you. Daryn, good morning. 2 EXHIBIT A ARAI: Hi. Good morning, Commissioners. Thank you for allowing me to speak. With the receipt of the letter from the adjoining property owner expressing their concerns about the potential commercial use of this property, I felt it best to not simply, and I don't believe those owners are present here today. So not that I’m advocating for their position, I simply want to make sure that you understand the Department’s concerns regarding the concerns that they’ve expressed. The applicant’s proposal is to renovate the existing structure for use as their offices. However, what you are approving today is a change of zone. Attached to your background report that was transmitted to you earlier is a section of the Zoning Code that identifies all of the range of uses that will be permitted should this change of zone request be approved. Now we believe, if you'll note in the conditions that we have not included any specific or additional conditions to address the specific concerns of the neighbor. We simply make reference to Planning Department Rule Number 17, which is our standard landscaping requirements, and it's those landscaping requirements that are applied to all commercial properties throughout the island when they develop their property. The reason we have not included any additional requirements is simply because we feel that should this zoning be approved the standards that apply to all commercial properties when they adjoin a residential zoned property should be applied. It’s a standard. It’s a standard that's already in place and that we should treat this property no different. So we do not want to see specific additional landscaping or mitigating type of measures implemented in an ordinance. So in essence we do not wish to legislate landscaping or additional landscaping. We feel the existing standards already in place is adequate to address the concerns. Now obviously it is probably not going to be adequate for the neighbor, you know, they probably don't want to see anything or be able to see anything there. But I believe that if you feel this is an appropriate zoning designation for this particular area then the existing standards should prevail. So I hope I’ve expressed myself clearly enough. KERN: Makes sense. Any questions for Daryn, on that? Seeing none, any other questions for Jeff? Seeing none, you pau, Jeff? DARROW: Yes. KERN: Thank you very much. Okay, can I get the applicant or their representative to please come forward? And will you both be speaking today? TESTIFIERS: Yes KERN: Can I get people to raise your right hand? Do you swear to tell the truth today before the Windward Planning Commission? TESTIFIERS: Yes KERN: Very good. And just before you begin name and address and you can make any comments that you'd like. Just, before that though, you folks received the background report and recommendations? 3 EXHIBIT A TESTIFIERS: Yes KERN: And feel free to make any comments on that at this point in time. MELROSE: Okay my name is Jeff Melrose, 1405 Waianuenue Avenue, and I'm here to represent the Hawaii Island Board of Realtors. KRAUS: I’m Mealoha Kraus and my address is 427 Iwalani Street in Hilo. And I am the president of the Hawaii Island Board of Realtors. And, oh, sorry, go ahead. KERN: No, no, it’s all you. KRAUS: We are here today hoping that you’ll recommend approval for our rezoning. We purchased this building in hopes of actually owning our own building, sort of walking our talk, so to speak. And we like the idea of having an older Hilo home serving as our office. We feel like it is representative of our homes here, and it is in an area that's consistent with the General Plan. So we felt like it was a good selection. We intend to be great neighbors who are only there during business hours. Normally we have three staff members there during the day and occasionally we have larger educational classes or committee meetings. But they are, you know, on a much more inconsistent basis. The parking we wanted to put in the back in an effort to maintain the look and feel of the neighborhood. And we are going to put in or intend to put in the minimum amount of required stalls because we don't have that many people there, but will allow for overflow with the additional gravel area. I mean that about covers it. Thank you. KERN: Thank you. Jeff, you -? MELROSE: No, just entertaining questions -. I think, I appreciate the interpretation of the landscape conversation, and it has certainly been a concern from the Board of Realtors. They would like to be able to be a good neighbor. They see themselves as a fairly light footprint in that particular area, and would certainly be sensitive in the kind of landscaping or even, you know, a small wall or something that would help to make that not an issue for neighbors. So, but they are pleased to have an old building, and there is very little change in the building itself. I think they have to do an ADA ramp, and get an ingress and egress through that. There’s a hydrant, and there are a couple of other things that will be required to actually enhance the neighborhood safety as well. So, that's about it. KERN: Very good. Thank you. Any questions? AU: Mr. Chair? KERN: All right, Commissioner Au? AU: When was this property purchased by the Hawai‘i Island Board of Realtors? 4 EXHIBIT A KRAUS: I believe we closed in November of last year. AU: Okay, so you are using that facility as a -? o: KRAUS: N AU: It's not being used? KRAUS: It is currently rented. AU: Okay. KERN: Commissioner Ono? ONO: Just out of curiosity, if we look at the size of this room and we’re using microphones to dialogue here, do you plan to do any structural changes in terms of your planning, your instructional, your lessons? How do you accommodate, how will you accommodate the audience that you intend to teach or conduct classes with? I mean, to me it impacts the neighbors if you’re having a PA system in there, your traffic, your bathroom facilities. Are you planning any changes? MELROSE: I think the internal improvements are very slight. The only kinds of, the kind of scale we are talking about are under 20 people. There will be no PA system. There is not intended to be any, you know, large, large gatherings on the property. When they have large activities, they will go to large facilities. This is just a place to do on-going professional development classes for realtors. So they don't expect to do anything in the evening time or on the weekends, and that would not, it may be an adaptation of the existing garage. There are several rooms in the building that are above and beyond the need all the current staff on a daily basis that will be available for meetings and educational programs. So there's no large-scale -. ONO: The rest of the facilities will remain the same? MELROSE: Yes. KRAUS: We will have to, I think, add an ADA bathroom. But – . ONO: I'm sorry I can't hear you. KRAUS: An ADA bathroom. ONO: I see. KRAUS: But it will be, the intent of, as we have talked to the architects so far is that it will be right next to the existing bathroom. KERN: Thank you very much. Any other questions for the applicant/or representative? Seeing none, –. 5 EXHIBIT A AU: Mr. Chairman? KERN: Commissioner Au. AU: In the event that this rezoning is approved with us and then the County Council, and then you go along and you do your, you guys have your place of business, and the neighbor builds a house, are you willing to accommodate them and put up some shrubs and trees, and maybe a fence? MELROSE: I think what we are willing to say at this point is that by, at an absolute minimum we will meet the landscape requirements. That those are, there is a requirement to landscape the size of a residential facility. I think that the Board of Realtors will, prior to them building a home, build some additional shrubbery around the back edge of the property. It's a very quiet edge of the property. So, you know, whether we go above and beyond what the Code requires, I don't know that I could commit that at the moment. But I think that the intention is to be a sound, to create a sound and visual barrier along the side, which is the intention of the Code. ONO: One more question, Chair. KERN: Commissioner Ono. ONO: The letter was referring to the loss of value of her property. And I am not a real estate person so I need to ask. When you develop a commercial property, doesn’t that increase the value of the property or does it really lower the value of the neighboring property? MELROSE: You know, I think that’s a relative circumstance. I think that if you bought it for a residential purpose, which is what this person said they had bought the property for, I don't, I mean I think if Burger King moved in next door that might have an impact on the value of the property. A quiet office is operating, you know, doesn't have students renting it and playing music loud at night -- and which is the other use that the building has been in for some period of time -- is actually, would be a substantially quieter use. And it is in an area where the high density in the General Plan prevails and that other properties along this have been moving into these kinds of commercial uses, the dialysis facility most recently I think. So, you know, I think they have what they have. I am not sure that the values change in this circumstance. KERN: Commissioner Ono? ONO: So in terms of the resident, that resident’s property, would her property tax increase or decrease with the development of your property? I mean, I don't know –. KRAUS: Her property tax or her value? ONO: I beg your pardon? KRAUS: Her property tax or her value? 6 EXHIBIT A ONO: The property tax, it’s based on the value of the land, I’m assuming. KRAUS: Yeah. ONO: So that with your development, would you say that her taxes are going to go up or down? KRAUS: I believe it would remain the same because she would still have a residential use; and the value is still going to be assessed, you know, according to the sales that are, have occurred in the area. ONO: So if I'm hearing you correctly the improvements on your property will not affect hers, is what you're saying? KRAUS: I'm not an appraiser but I do think that it would depend on whether it's the County appraiser looking at it for tax purposes versus a residential appraiser looking at it. But they probably wouldn't use it as a comparable because it is a commercial property, not a residential. MELROSE: I would also add that her property is currently taxed as unimproved residential rate, which is a high rate. She has no home on it. When she puts her home on it, when she makes the investment in that property and lives in it as she says she's intending to, the taxes will actually go down as a result of her homeowners exemption. So, I mean, it's hard just to answer that question in general. But it is still a blank piece of property today and it will be taxed as such, and then she has got some distance before she actually installs her home and, you know, settles into the property. KERN: Madam Director? LEITHEAD TODD: I was going to elaborate on that. Assuming that she paid $100,000 for her lot, her real property taxes on it right now because she has no exemptions would be approximately $1000 a year. It would be $9.95 per thousand. If she builds the house on it and spends $100,000 building a house, then she has land and a house worth $200,000. But she now qualifies for the homeowners rate, if she's an owner/occupant of $5.55 per thousand; and she also gets up to possibly $180,000 in exemptions. So she may end up, possibly depending on the value of the house, she could end up paying, and her age, paying as little as $100 a year in taxes versus the $1000 that she’s currently paying. And I know this because the newspaper did an article on how much I pay in taxes and compared me to the renters next door and didn’t look at the fact that I have a series people who have hit 70 in my neighborhood and qualify and they’re all paying $100 a year even though they have nicer houses than I do. So her taxes, it’s exactly like Mr. Melrose has stated. Once she builds her house, she is most likely going to be paying less than she currently pays on the vacant land. The area is in transition. There are a number of properties both on this street as well as the next street over that are gradually in the, changing over to either commercial uses where you have stores or office uses. Not far away from there is, on the corner is Tsukazaki, Menezes and Yeh. It’s right next to the dialysis center. They didn't change the home at all, except the ADA ramps. But this is going to be a high demand area over time because of the proximity to the university. As the university grows there is going to be interest in this area. So her value will be driven more by what lots and houses around her sell for than anything that the Chamber does is next door to her. 7 EXHIBIT A And I might say that in terms of quiet enjoyment, being the mother of a number of children who have gone through teenage years, my neighbors probably wish that I was an office as opposed to the kids played trumpet and electric guitar, and at least we got rid of the drums. So, you know, I'm just saying that in a normal neighborhood, if you have someone next door with children you’re far more likely to have noise in the evenings during the period of time that you want quiet than having an office next door which will be shut down and be very quiet at night. You know, that’s just the nature of a residential life. KERN: Thank you, Madam Director. Any other questions for the applicant or their representative? Seeing none you folks may have a seat. Thank you. There is no one signed up from the public to testify. So with that I’ll take a motion. Commissioner Au? AU: Thank you, Mr. Chair. I move to send a favorable recommendation to the Hawai‘i County Council for applicant Hawai‘i Island Board of Realtors (REZ 12-153). KERN: With conditions? AU: With conditions. KERN: Second? Gonzales: I second the motion. KERN: Very good. Discussion? Any discussion? I’ll throw in my two cents here. I think this does make sense. It’s High Density Urban on the LUPAG Map. There are sound level laws that require certain decibels at the property line. And the neighbor also has the option to put additional landscaping there if they so decide, which will be a little bit impact to them. But, I mean, this place, this area of Hilo is going to be moving in toward further development, without a doubt, over the next 5, 10, 15, 20 years. So I think this is an alignment with the General Plan. And I’m going to support this. Any other discussion? Seeing none, we’ll take the vote, Jeff. DARROW: Thank you, Mr. Chairman. The motion before us is to send a favorable recommendation to the Hawai‘i County Council for this change of zone request. With that I’ll take the motion. Commissioner Au? AU: Aye. DARROW: Commissioner Gonzales GONZALES: Aye. DARROW: Commissioner Ono? ONO: Aye. DARROW: And Mr. Chairman? 8 EXHIBIT A KERN: Aye. DARROW: The motion passes four to zero. KERN: You folks will be notified in writing. Thank you. The discussion ended at 9:44 a.m. Respectfully submitted, Sharon M. Nomura, Secretary Windward Planning Commission 9 EXHIBIT A