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HomeMy WebLinkAbout2017-02-16 Leeward Exh A (REZ 16-215 & SMA 16-066) LEEWARD PLANNING COMMISSION COUNTY OF HAWAI‘I HEARING TRANSCRIPT FEBRUARY 16, 2017 A regularly advertised hearing on the applications of RB2 INVESTORS, LLC (REZ 16-000215 and SMA 16-000066) was called to order at 9:32 a.m. in the West Hawai‘i Civic Center, Community Center, Building G, 74-5044 Ane Keohokālole Highway, Kailua-Kona, Hawai‘i, with Chairman Keith F. Unger presiding. COMMISSIONERS PRESENT: Keith F. Unger, Nancy Carr Smith, Scott Church, Collin Kaholo, Perry Kealoha, Barbara Nobriga and Sonny Shimaoka ALSO PRESENT: Malia Ho (Counsel for the Commission), Michael Yee (Planning Director), Jeff Darrow (Planning Program Manager), Maija Jackson (Planner), Christian Kay (Planner) and Noriko Sauer (Commission Secretary) And five people from the public in attendance. 1. APPLICANT: RB2 INVESTORS, LLC (REZ 16-000215) Application for a Change of Zone from an Agricultural-5 acres (A-5a) to a Commercial- Industrial Mixed Use-20,000 square feet (MCX-20) zoning district for approximately 1.756 acres of land. The parcel is located at 68-148 Ho‘ohana Street within the Mauna Lani Resort, Kalahuipua‘a, South Kohala, Hawai‘i, TMK: 6-8-001:058. 2. APPLICANT: RB2 INVESTORS, LLC (SMA 16-000066) Application for a Special Management Area (SMA) Use Permit to modify and incorporate an existing building and parking lot and add two additional buildings and additional parking to support a 20-unit commercial and light Industrial lease space for businesses, offices, self-storage and a restaurant for approximately 1.756 acres of land situated within the Special Management Area. The parcel is located at 68-148 Ho‘ohana Street within the Mauna Lani Resort, Kalahuipua‘a, South Kohala, Hawai‘i, TMK: 6-8-001:058. UNGER: The first item on the agenda, Applicant RB2 Investors, LLC, application for a Change of Zone from A-5a to Commercial-Industrial Mixed Use-20,000 square feet zoning district for approximately 1.756 acres of land. The parcel is located at 68-148 Ho‘ohana Street within the Mauna Lani Resort, Kalahuipua‘a, South Kohala, Hawai‘i. TMK is 6-8-001: 058. Since this is the same applicant and the same project, we’ll go ahead and hear both items, Number 1 and Number 2. Number 2, RB2 Investors, LLC, application for a Special Management Area Use Permit to modify and incorporate an existing building and parking lot and add two additional buildings and additional parking to support a 20-unit commercial and light Industrial lease space for businesses, offices, self-storage and a restaurant for approximately 1.756 acres of land situated within the Special Management Area. The parcel is located at 68-148 Ho‘ohana Street within the Mauna Lani Resort, Kalahuipua‘a, South Kohala, TMK: 6-8-001: Parcel 58. 1 EXHIBIT A Mr. Kay, would you like to make the presentation? KAY: Yes, thank you, Mr. Chair, and good morning, Commission. So as the Chair stated, we are going to go ahead and just do a presentation for both applications, both the rezone and the Special Management Area Use Permit. If I can direct your attention to the screen. This is a location map of the subject parcel and surrounding area. The subject parcel is located in the South Kohala District of Hawai‘i Island. It’s here outlined in red – sorry it’s a little bit difficult to see. It is located makai of Queen Ka‘ahumanu Highway and to the east of Mauna Lani Drive. Access is off of Ho‘ohana Street, which runs generally east-west through the slide. This is a part of the Mauna Lani Resort area, which is here makai of Ho‘ohana Street and to the highway. The subject parcel and surrounding areas to the east, west and south are zoned Agricultural 5-acre, as indicated by the light-green color on the map. Across Ho‘ohana Street there is areas of Multiple-Family Residential zoning indicated with the brown and mustard colors and some Resort zoning indicated in purple. The State Land Use Boundary designation for the subject property is Urban, as indicated in pink. There is some surrounding Agricultural to the west and south, and that’s indicated in green. The General Plan Land Use Pattern Allocation Guide Map designates the subject property and much of the surrounding area in the Resort Node indicated in purple, and to the east is some Urban Expansion, which is indicated in the black thatching. Pardon me, this is mislabeled; this is a Special Management Area Map for the area. So all of the subject parcel and surrounding area is in the Special Management Area, and that’s why we are having a concurrent SMA Use Permit for this application. Here is an aerial photograph of the subject property again outlined in red. Ho‘ohana Street is running generally east-west, makai of the subject property. There is an existing roughly 6,600-square foot structure on the property; this is the former site of the Seagull School at Mauna Lani, which was a preschool and daycare that was set up for workers at Mauna Lani. It was approved under a Use Permit in 1990 and operated until 2013 when it closed down. You can see there were two driveway accesses to the property, one in to the driveway, pardon me, to the parking lot here, and then out. The other kind of circular structures here, not structures, but features here, are old playground pads. You can’t see it very well, but there is a fence along the mauka portion of the parcel that kind of jogs in here, and that was put in place to help to create a 15-foot buffer around some historical features that were on the adjacent parcel. So the applicant is requesting a Change of Zone from an Agricultural 5-acre to an Industrial-Commercial Mixed Use 20,000-square foot zoning district for 1.756 acres of land. A Special Management Area Use Permit to modify and incorporate an existing, vacant 6,667-square foot building and parking lot and add two additional buildings and additional parking to support a 20-unit commercial and light industrial lease space for businesses, offices, self-storage and a restaurant café. The applicant proposes to develop the project in two phases. Phase 1 will focus on the expansion of the existing 6,667-square foot building to create eight commercial and light industrial spaces for lease to local businesses including a restaurant and café or café. The applicant is also proposing an additional 1,000-square foot building to be developed as a self-storage business as part of Phase 1. The second phase will include a single-story, 8,220-square foot building to accommodate up to ten additional spaces for lease. The parking lot will also be improved and expanded from 21 to 68 paved parking spaces. Construction of the first phase is expected to begin 2 EXHIBIT A within six months of obtaining the proper permits and cost approximately one and a half million dollars. Based on market conditions, the applicant expects to commence construction of the second phase within three to five years after the initial phase is complete. The applicant is requesting this because they believe that a Change of Zone from A-5a to Commercial-Industrial Mixed Use-20 would allow for the development of the subject site into intermediate commercial and light industrial lease space to meet the local demand by businesses in the region. Here is the applicant’s site plan and also phasing for the project. Again, Ho‘ohana Street on this map is running toward the bottom of the slide. And what we see here, the pink dash line is going to be Phase 1. You see a driveway here going into an expanded parking area. This is the existing building here that will be expanded and repurposed for commercial and light industrial uses, more parking around the back, and Phase 1 will also include this self-storage facility, which is on the western boundary of the parcel. Phase 2, again, will be that second roughly 8,220-square foot building and that will be, again, once Phase 1 has commenced within two to five years. Here is a view of the subject parcel, a view of the driveway and parking lot. This is an older picture taken off of Google, so again you can see this was a Seagull School at Mauna Lani. Entrance here into the parking lot area that’s, exit is right around this area. The school building is behind these trees. Here is a front view of the existing structure that’s going to be repurposed. Again, this is an old playground pad. This is the western boundary of the subject parcel, and the applicant indicated that the self-storage will be roughly built between these two trees. And here is another view from the west of the school, and this is kind of the area where the back fence jogs in. Here is a view of Ho‘ohana Street looking east, with the subject parcel on the right. Another view of Ho‘ohana Street looking west, with the subject parcel on the left. The Planning Director is recommending a favorable recommendation be sent up to the County Council, with conditions for the Change of Zone, and he is also recommending approval of the SMA Use Permit with conditions. That concludes my presentation. I’m happy to answer any questions that the Commission may have. UNGER: Thank you. Commissioners, are there any questions for the County? Thank you. KAY: Thank you. UNGER: At this time I’d like to call up the applicants. Please raise your right hand. Do you swear or affirm to tell the truth before the Planning Commission? HARRIS: Yes. REDDING: Yes. 3 EXHIBIT A UNGER: Please state your name and where you reside. HARRIS: Hello. My name is Roger Harris. I live in Waimea. And I’m representing Cory Redding and RB2 Investors who are the owner developer of the project. REDDING: Cory Redding. I reside in Salem, Oregon, and am one of the partners of RB2 Investors, LLC. UNGER: Great. Thank you. You can proceed with your presentation. HARRIS: Okay, we will be real short. Basically, this is the old Mauna Lani School site and it’s been vacant for, since 2013. So it will be repurposed as a, let’s say, a little more modest commercial area than the Mauna Lani Shops that are just around the corner, and should be complimentary. It will have some storage space, usable space, and some office space, and potentially a restaurant or two, or any use that wants to be there. There is demand in Mauna Lani for some lower cost, I’d say, commercial office space. We have reviewed the Director’s report and recommendation, and just have two comments, no real objection, and we are happy for the recommendation of approval. The one comment, I think as you know, if you saw the picture of the frontage – Mauna Lani has what’s called resort-standard roadways, so they are basically a stripe and then a paved shoulder along all the properties in Mauna Lani – this one is the back kind of industrial road, service road, so there is kind of a scruffy about a two-foot paved area that’s pretty deteriorated on the left side of that white stripe that you can see. The County is asking for us to push that back a bit and pave it up. What will happen to Ho‘ohana Street when the property across the street – there is a 150 acres due to be developed, called M Sites, which has an SMA and has all the zoning in place – when that goes, it’s supposed to improve the whole street all the way past this area. So in the interim the County is asking us to work with Public Works and improve that shoulder a bit. It’s a question of exactly how much it will be, but subject to Public Works approval. We met with Ki Emler and we think that will be okay with us. The second thing is there is an archaeological site that’s kind of off the property in the back corner, and there is an existing chain-link buffer in accordance with the SHPD recommendation from 1990. We probably won’t reduce the 15-foot buffer they required around the arc site, but we will probably replace the fence so it runs on the 15 feet rather than more than that, which is what it does now; it interferes with our circulation just a little bit. But we’ll confirm the SHPD requirements on that one. So there is really, it’s pretty simple. I’d like to have Cory say a few things or answer any questions. REDDING: Yeah, I think Roger explained the development, I mean, we have talked to several folks in the area and there is definitely a demand for this kind of secondary space that is more affordable for folks, and we think it’s going to be a great need. And we are hopeful that the first building is filled right away, and we can start on the second building and really provide a need to the Mauna Lani area. So we are excited about it and it should be a great project. So thanks for your recommendation. 4 EXHIBIT A UNGER: Great, thank you. Commissioners, are there any questions of the applicant? KAHOLO: Good morning. REDDING: Good morning. KAHOLO: My question is this: If I remember right, there is no existing sewer line attached to that property, heading down to the sewage plant. Are you folks going to do anything with that? HARRIS: Right. Looking at this lower – yeah, well, actually, either one of those, let’s look at the upper picture looking east – the sewer line runs under Ho‘ohana Street but it’s about another 6-800 yards toward Kawaihae, and then it’s a force main coming up from the Orchid Hotel and the whole urban area, and then it goes out to, the sewer treatment plant at Mauna Lani is a private plant, but it’s out beyond there. Our original intention was to hook up to that, but they are saying, the engineers are saying we can’t tap into that force main; we have to lay a whole new one. So we, the condition says we can comply with the Health Department requirements, which probably means, if we can’t solve the hookup to the force main, is to put a sewage system underneath the parking lots at the site. So we’ll comply with the Department of Health requirements, but it’s not, not, it’s proba- it’s fifty-fifty or less that we’ll hook up to the Mauna Lani sewer. KAHOLO: Yeah, my question is because of, you know, you have a plan for restaurant in place. HARRIS: Yeah. KAHOLO: And, you know, a restaurant does, you know, do a lot of movement of whatever waste is there. HARRIS: Right. KAHOLO: So that is my question pertaining to that, you know, sewage line. REDDING: Yeah, great question, we have consulted and have an engineer on board, Mark Grant, and he has looked at our uses, and with a restaurant is obviously the most water need, so the worst case scenario with the, we would only allow one restaurant in each building. We’ve done the calculations on the sewer and water usage per day for that. So we can comply with the regulations with an onsite septic system. We have actually already done the engineering on that, and have that figured out and it does work. KAHOLO: Okay, thank you. UNGER: You make reference to Tokyu, Tokyu Corporation, in regard to the need, possibly if you need extra water, that they’ve agreed to give you more water units. What is your, who are they and what’s your relationship with them? HARRIS: Tokyu Corporation is, you know, the owner of Mauna Lani Resort, and they hold the water allocations. And we have, if you read the water department, we have an allocation from Tokyu and the Water Department, but we do need more from Tokyu, so we are working on that, 5 EXHIBIT A getting an additional allocation. If we can’t get it, we are stuck, but we are, they were using more than the allocation when it was a school, so we are due for that at least. UNGER: Thank you. Carr Smith. CARR SMITH: So if you cannot get the water units that you want, then you adjust your plan in terms of — HARRIS: Right. CARR SMITH: — maybe the restaurants or whatever. HARRIS: Right. CARR SMITH: Okay. I think this is a great project. I think it will serve a need in the Mauna Lani area. Thank you. I’ll be supporting it. UNGER: Thank you. I’d like to open the meeting up to public testimony. If there is any members of the public here that wishes to testify, you may do so now. Seeing no members of the public here to testify, I need to close, I need a motion to close public hearing. NOBRIGA: I so move. SHIMAOKA: I second. UNGER: Motion by Commissioner Nobriga, second by Commissioner Shimaoka. All in favor? COMMISSIONERS: Aye. UNGER: Opposed? \[None.\] Public hearing is closed. Without any other questions or presentations, Commissioners, I need a motion on the, let’s go ahead and we’ll make a motion on Item 1, the application for a Change of Zone, and then I’ll ask for a second motion for the second agenda item. CARR SMITH: Chair Unger, I’d like to make a motion. I move that a favorable recommendation be forwarded to the County Council on the application for Change of Zone, Docket Number REZ 16-215, based on the Planning Director’s recommendation and findings, which shall be adopted. NOBRIGA: I second. UNGER: We have a motion by Commissioner Carr Smith, second by Commissioner Nobriga. The floor is open for discussion. Any discussion? I agree with Commissioner Carr Smith. I think this is a good project, well needed in the Community. I applaud the developers for cleaning up the road frontage there. I caution you all in regard to working around the arc site; that can get very sensitive. But as long as you are in 6 EXHIBIT A compliance with the State Historic Preservation Department, this appears to be a really good project. Could we have a roll call, please? KAY: Thank you, Mr. Chair. Commissioner Carr Smith? CARR SMITH: Aye. KAY: Commissioner Nobriga? NOBRIGA: Aye. KAY: Commissioner Church? CHURCH: Aye. KAY: Commissioner Kaholo? KAHOLO: Aye. KAY: Commissioner Kealoha? KEALOHA: Aye. KAY: Commissioner Shimaoka? SHIMAOKA: Aye. KAY: And Chair Unger? UNGER: Aye. KAY: Thank you. Motions passes with seven ayes. UNGER: We need to take up a motion on the second item, the application for Special Management Area Use Permit to modify and incorporate the existing buildings. SHIMAOKA: Chair, I’d like to make a motion. I move that the application for Special Management Area Use Permit SMA 16-066 be approved based on the Planning Director’s findings, recommendation, and proposed conditions, which shall be adopted. KAHOLO: Second. UNGER: We have a motion by Commissioner Shimaoka, second by Commissioner Kaholo. The floor is open for discussion. Seeing no discussion, could we have a roll call, please? 7 EXHIBIT A KAY: Yes, thank you, Mr. Chair. Commissioner Shimaoka? SHIMAOKA: Aye. KAY: Commissioner Kaholo? KAHOLO: Aye. KAY: Commissioner Carr Smith? CARR SMITH: Aye. KAY: Commissioner Church? CHURCH: Aye. KAY: Commissioner Kealoha? KEALOHA: Aye. KAY: Commissioner Nobriga? NOBRIGA: Aye. KAY: And Chair Unger? UNGER: Aye. KAY: Thank you. Motion carries, seven-nothing. UNGER: Thank you all. You’ll be notified in writing shortly from the Planning Commission. HARRIS: Thank you very much. REDDING: Thank you very much. The discussion ended at 9:54 a.m. Respectfully submitted, Noriko Sauer, Secretary Leeward Planning Commission 8 EXHIBIT A