PD BACKGROUND REPORT (PL-SMA-2023-000027)

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BDLFujimoto_SMA 4/1/23 COUNTY OF HAWAI`I PLANNING DEPARTMENT BACKGROUND REPORT D&L FUJIMOTO LLC SPECIAL MANAGEMENT AREA USE PERMIT APPLICATION (PL-SMA-2023-000027) D&L FUJIMOTO LLC has submitted an application to amend Condition No. 7 (public parking requirement) of Special Management Area (SMA) Use Permit No. 51 (SMA 51) to clarify the management and use of twenty (20) public parking stalls located on a 1.468-acre parcel situated within the SMA. The subject property is located makai of Kuakini Highway, along the south side of Hanama Place, in Kailua Village, at 75-5722 Hanama Place, Ke6pu 3rd, North Kona District, Hawaii, TMK: (3) 7-5-007:033. PROPOSED PROJECT 1. Request: D&L Fujimoto LLC (Applicant) seeks a SMA Use Permit amendment to enable the applicant to exercise reasonable controls over the "public use" parking area on its property as was required by Condition No. 7 of SMA No. 51. On January 31, 1978, SMA Use Permit (No. 51) was approved by the Planning Commission for a proposed retail food market and related improvements, including parking and landscaping. The proposed project designated twenty (20) parking stalls on the makai side of the proposed building for public use as a condition of the SMA Use permit (Condition No. 7). With the closure of the food market, the structure now houses a variety of uses consistent with the site's resort zoning (V- .75) and the parking stalls designated under SMA No. 51 have continued to be set aside for public use. However, over time, there has been on-going abuse of the free public parking as there are no restrictions on these twenty (20) parking stalls. Staff notes that original condition of SMA No. 51 states the "parking stalls on the makai side of the building shall be clearly identified for public use" with the stated intent of the parking as to "enhance the economic development of Kailua while providing partial solution of the parking problems in the area". After a discussion between the Planning Director and the Applicant, the Applicant submitted an updated request to delete Condition No. 7 of SMA 51, instead of amending it. The applicant submitted their request via email (Planning Department Exhibit 1 — March 24, -1-