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HomeMy WebLinkAbout2018-08-29 BDHRA Minutes BANYAN DRIVE HAWAI‘I REDEVELOPMENT AGENCY COUNTY OF HAWAI‘I MINUTES August 29, 2018 The Banyan Drive Hawaiʽi Redevelopment Agency met at 2:01 p.m. in the County of Hawai‘i, Aupuni Center Conference Room, 101 Pauahi Street, Hilo, Hawai‘i, with Chairman Brian DeLima presiding. MEMBERS PRESENT: Brian DeLima (Chairman), K.T. Cannon-Eger, Nathan Gaddis, and Barry Taniguchi MEMBERS ABSENT & EXCUSED: Elmer Gorospe ALSO PRESENT: David Ige (Governor of Hawai‘i), Michael Yee (Planning Director), Amy Self (Deputy Corporation Counsel for the Agency), Jeffrey Darrow (Planning Division Manager), Kim Tanaka (Secretary), Kaialiʻi Kahele (Senator), Sue Lee Loy (Councilwoman), Chris Todd (State Representative), Gordon Heit (DLNR Representative) A quorum was present with four members in attendance. DELIMA: Welcome everyone. The meeting of the Banyan Drive Hawai‘i Redevelopment Agency is called to order. I’d like to recognize that we have Governor Ige with us today, and Governor, welcome. We really appreciate the fact that you are on-island with Senator Kahele and Representative Todd. I really would love to give you the opportunity to address everyone that’s here today. And thank you again for coming. IGE: Thank you so much for giving me some time. I hadn’t really planned to make a statement, but I just really wanted to thank you for your interest and commitment in the Banyan Drive property. You know, I think as we’ve worked through some the eruption activities and the hurricane, we have talked more and more about economic development and about revitalization of Hawai‘i County in general and clearly, I think when we look at all of the economic opportunities on Hawai‘i Island, you know, we always come back to Banyan Drive and what can we do to make a stronger economic presence in East Hawai‘i and what kind of investment can we encourage. What kind of economic growth can we encourage in the Banyan Drive area. So just want to thank each and every one of you for your interest in Banyan Drive and certainly look forward to working with all of you to see what opportunities and challenges lay before the County and the State as we look for opportunities to transform and reshape the economy of Hawai‘i Island. Thank you. DELIMA: Thank you, Governor. STATEMENTS FROM THE PUBLIC There were approximately 13 members of the public in attendance. At 2:01 p.m. Chairman DeLima opened the floor to take statements from the public. Page 1 of 6 Banyan Drive Hawaiʽi Redevelopment Agency August 29, 2018 Minutes DELIMA: We have a relatively short agenda. The focus is the discussion of the Tower Development proposal for the former Uncle Billy’s or Hilo Hotel. We have an opportunity to take statements from the public at this point. Are there any statements from the public on items on the agenda? We also have been joined by Councilmember Lee Loy. Welcome. LEE LOY: Thank you. DELIMA: So we have Donald Inouye. Mr. Inouye, you’re welcome to address the matter but your—we’re going to put your agenda item on the next agency meeting. INOUYE: No, it has nothing to do with that. DELIMA: Okay. INOUYE: (inaudible) your agenda. DELIMA: Okay. So that’s going to be at the next meeting. INOUYE: Yeah. No, I understand. DELIMA: Okay, I appreciate that. BUSINESS OF AGENCY The Agency took this item up at 2:02 p.m. with approximately 13 members of the public in attendance. 1. Open discussion regarding the Tower Development proposal for the former Uncle Billy’s Hilo Bay Hotel site. This agenda item is for information and discussion purposes only. DELIMA: So we’ll move to the business of the agency, open discussion regarding the Tower Development proposal for the former Uncle Billy’s Hilo Hotel site. It states that this agenda item is for information and discussion purposes only. Since the Redevelopment Agency doesn’t have the authority to actually approve the proposal, we can, however, support the proposal if the members of the Board choose to do so, the Agency choose to do so, but with that I’ll ask Gordon to kind of give us a report of where it’s at, if you know. HEIT: As far as DLNR is concerned, we’re kind of at a crossroads as far as how we can proceed with the, this request for interest. We, like we said, we put it out there for the public to submit interest. We’ve received one application and so with that, we really don’t know where to go next. We—in order for us to proceed with a request for proposal which would be next step, we actually would need to have either an environmental assessment done or, at the very minimum, an environmental assessment or environmental impact statement. And so that’s kind of where we’re at right now. Page 2 of 6 Banyan Drive Hawaiʽi Redevelopment Agency August 29, 2018 Minutes DELIMA: At the last meeting we were advised that the request for interest, as Gordon reported, there was only one interest submitted by Tower Development and the concern was that the cost of actual demolition of the Banyan—of Uncle Billy’s was such that no monies were appropriated to do so. So the concept was that perhaps a private investor would be willing to undertake the responsibility to demolish the existing structure that’s not occupied and build a hotel onsite that would be consistent with our Redevelopment Agency’s plan. At the same time, it was recognized that Tower Development had the land across the street that would probably be necessary in order to effectuate a hotel that has adequate parking under existing Planning scheme. So, at the last meeting I asked that we place this on the agenda because, quite frankly, if Tower Development is interested, they hold the lease, a long-term lease, on the land across the street that I was hoping that as an agency, we would send a letter of support of—obviously the State has to negotiate with Tower Development, we’re not saying that you give them a blank check, but that we issue a agency, our agency’s support for the effort to proceed with those plans if it’s in the interest of the taxpayers in the State of Hawai‘i. That’s where I was coming from in terms of asking that this be placed on the agenda, and I would invite comment and discussion or even a motion to that effect if there’s some support. K.T. you had your hand up? CANNON-EGER: (Shakes head) DELIMA: Oh, I guess I was inviting you to have your hand up. (Laughs) The Chair will entertain a motion to that effect if people were— CANNON-EGER: So moved. DELIMA: Is there a second? GADDIS: Second. DELIMA: Okay. Any discussion? Anyone want to discuss this? Senator, do you want to say a few words or your thoughts on it? Or Mr. Yee? Senator. KAHELE: Thank you. And I just want to thank, again, the Board members and everyone for reconvening at this meeting. It’s good to be back; it just seems like we were here last month. And you know, this is definitely something that I’m glad that we’ve put on the agenda and hopefully we can support, the BDHRA can support it. You know, I think Tower Development has proved that they can do a project of this magnitude on the peninsula, and it’s something that we definitely should look at DLNRs perspective. You know, I don’t know if in the original request for interest if there were other interested parties. I think, if I’m not mistaken, Tower was the only one to put a proposed plan forth for the Uncle Billy’s property. HEIT: Correct. We did have a site inspection of the property prior to the deadline for the request for interest. There was several other interested parties. They didn’t submit any, any application so, the only one was from Tower. DELIMA: Gordon, is it accurate though that once an RFP goes out that other interested people could actually put in proposals despite not putting in an intent or interest—I don’t know what’s the answer to that but— Page 3 of 6 Banyan Drive Hawaiʽi Redevelopment Agency August 29, 2018 Minutes HEIT: Yeah, I’m not sure, I’ll try to answer, I’d make the assumption you could. I mean, because it’s a different process so, for the request for proposal and yeah, kind of I guess, resets the program as far as being able to submit any type of application. DELIMA: And the holdup is the environmental studies, but if we’re only gonna—if the environmental impact statement is just focused on that parcel, it would, I would tend to think it’d be less than what the previous projections were for the entire peninsula. HEIT: Correct, correct. Again that’s what, you know, part of this agency’s tasked to do is, you know, do we do it piecemeal property by property, or do we do the whole Banyan Drive as one, you know, one developed area. I guess that’s, you know, what we need to work on. DELIMA: The sooner we replace a empty dilapidated structure right on the shoreline the better. HEIT: Yeah, again yeah, you know it’s in need of immediate attention. DELIMA: I appreciate that. Any further discussion by anyone? Okay. GADDIS: I’m curious to hear from Planning if they have any feedback or anything as well. DELIMA: Yeah. YEE: I think it’s certainly within the purview of the Board to, to provide a letter of support. You know, I can’t stop always wearing my Planning hat, and always wishing to have a master plan that we have in front of us that we could follow, but I also, months ago, sat there and I said if we weren’t going to get the funding this year from the Leg, we can’t keep banging our heads against the wall and to do nothing. And certainly the Mayor has certainly talked about wanting to do something and so this is just one step. I mean, a letter of support certainly indicates where you folks want to go. There’s still a lot of hurdles for even Tower Development to, to, to make it pencil out, but is it a step in the right direction with somebody who’s very interested in doing so? Certainly. And so I’m supportive of seeing a letter go forward but I think concurrently there are many of us still trying to find the funding to do a master plan. DELIMA: I think we all concur with the Planning Director’s statement. It’s been the sense of the Agency. If there’s no further discussion, the Chair will call for a vote. All those in favor of the motion say aye. ALL: Aye. DELIMA: Opposed say nay. Motion is carried. ADMINISTRATIVE MATTERS The Agency took this item up at 2:13 p.m. 1. Approval of minutes from the July 25, 2018, Banyan Drive Hawaiʻi Redevelopment Agency meeting. DELIMA: We’ll then proceed with administrative matters. As I indicated, Mr. Inouye submitted a letter for agendizing, but unfortunately it was prior—it was not in time to be placed Page 4 of 6 Banyan Drive Hawaiʽi Redevelopment Agency August 29, 2018 Minutes on this agenda so we’ll place it on the next agenda for discussion and action. And it pertains to his lease on the Reed’s Bay property. And we need to approve the minutes as circulated from July 25, 2018. Is there a motion to approve? GADDIS: I make a motion to approve the minutes. DELIMA: Is there a second? CANNON-EGER: Second. DELIMA: It’s moved and second. Any discussion? All those in favor say aye. ALL: Aye. DELIMA: Opposed say nay. Motion is carried. ANNOUNCEMENTS The Agency took this item up at 2:14 p.m. 1. Next meeting date. th DELIMA: Our next meeting is the last Wednesday in September, which is? The 26 of September. Before we adjourn I will invite Councilmember Lee Loy if you wanted to make any statements? LEE LOY: I’m just happy. It feels like something’s moving forward even if it’s a little bit slow. DELIMA: And Representative Todd already shook his head that he didn’t want to say anything, but thank you very much, Representative for coming today. If not, Senator? KAHELE: You know I just wanna note that I’m sure all of you had seen, as part of the County of Hawai‘i’s, you know, wish list I guess you could say for the disaster request and we’re entertaining it in a separate issue on Friday, part of it was money allocated to Banyan Drive. I think you read that in the Tribune Herald and part of it was to fund the EIS. So, you know, I think what Mayor Kim and his administration is doing and I think it’s the right thing to do, is to look not just at Puna, but the entire Hawai‘i Island as a whole, especially here in East Hawai‘i. And if that’s something that makes sense, then that would be welcome, you know, because otherwise Representative Todd and myself have to go through an entire legislative session and hope for the best come next year, and we don’t want to be here next year still talking about can we do an EA or EIS and is it going to cost a half million dollars or a million dollars. And so we want to be in the process by this time next year. DELIMA: Thank you, Senator. You know what I feel really good about, Senator Kahele, and Councilmember Lee Loy, and Representative Todd? You guys are young and I know, I know that in the, I know that we’re in good hands now and for the future. And so I really appreciate your thoughtfulness and your energy and your commitment and I feel good about the fact that you’re doing what you folks are doing. And Governor, you’ve come to the right meeting because this is the shortest meeting we’ve ever had. And so, with that—K.T? K.T. you’ll have the last word. Page 5 of 6 Banyan Drive Hawaiʽi Redevelopment Agency August 29, 2018 Minutes CANNON-EGER: Thank you Mr. Chairman. Just for the members of the committee, I’d like to present you with a copy of the North American Japanese Garden Association Journal that talks about ways in which a Japanese garden can be an economic driver for a community. Also included is our current newsletter from Friends of Lili‘uokalani Gardens. We have a major event th coming up on Saturday the 8 of September, and that is the annual Queen’s Birthday Festival, He Haliʻa Aloha No Lili‘uokalani from 10 a.m. until pau. We’re working along on pond mucking days; Representative Todd has come along and helped pull buckets of muck out of the nd pond, so all of you are invited to come along too on Saturday the 22 of September from 8 until noon. Thank you. DELIMA: Thank you very much K.T. and for all the work that you do. There’s some great pictures in here. At this time the Board discussed the need to reschedule the September meeting as several members will be unable to attend the regularly scheduled meeting. The next meeting date will be determined. DELIMA: So with that, we’ll adjourn the meeting. Thank you all for coming and hopefully we’ll have productive and short meetings in the future. Meeting adjourned at 2:17 p.m. Respectfully submitted, Kim Tanaka, Secretary A T T E S T : Brian DeLima, Chairperson Banyan Drive Hawai‘i Redevelopment Agency Page 6 of 6 Banyan Drive Hawaiʽi Redevelopment Agency August 29, 2018 Minutes