An amended version of a bill that would allow residential development in Hawaii County’s industrial-commercial mixed-use zoning districts has been postponed until the Feb. 4 County Council meeting for possible further amendment.
The vote, 9-0, occurred Jan. 7 and was subsequent to an 8-1 vote against the bill in which the only yes vote was that of Vice Chairman Dennis “Fresh” Onishi, the measure’s author.
Medium Commercial-Industrial districts, also known as MCX districts, consist of a mix of light industrial and commercial businesses such as warehouses, distribution, light manufacturing, agricultural processing, equipment sales and auto repair. Bill 63 would add residential use to that mix.
Riley Smith, president and CEO of Lanihau Properties, supported the measure, saying it would allow his company and others to develop workforce housing in Kona.
“I think what a lot of the large employers on our island are finding is that it’s very difficult to retain employees. And one of the difficulties is that a lot of our workforce travel long distances to be able to get to where their place of employment is,” Smith told council members. “… And what we find is there’s a lot of individuals that end up sleeping in their cars at night on Ane Keohokalole Highway because they can’t afford the effort that it takes to drive back to the east side of this island every day.”
Bill Moore, a Hilo-based planning consultant who testified with Smith, said that Hawaii Business Park, which is MCX-zoned on about 140 acres, has an affordable housing condition and is “one of the rare projects in Kona that has water.” He said it also has “a road network that interconnects with other areas on either side (and) close proximity” to the Kealakehe schools.
Josephine Keliipio of Kailua-Kona, who opposed the measure, encouraged Smith and Moore to attend Tuesday’s Kona Community Development Plan Action Committee Meeting “to further discuss this issue.”
Planning Director Jeff Darrow testified that dwellings allowed in the amended bill would be “as an accessory to the main uses of the MCX district.”
The dwellings, which could be single-family, double-family or multiple-family “would be an incidental and subordinate use to the permitted uses within the MCX district” intended as an opportunity for employees to live close to where they work, Darrow said.
“There was concern regarding affordable housing requirements,” he added, and referred to Chapter 11 of the County Code, its affordable housing guidelines, which are expected to be reviewed and possibly changed soon.
“MCX does trigger when you reach a certain level of jobs. And I believe and it’s quite large, it’s like, 100 full-time jobs,” Darrow said. “And then, you have to meet requirements of Chapter 11 through an agreement through (Office of Housing and Community Development). So, this would apply to somebody who is coming in that has a rezoning, currently, that calls for an affordable housing agreement, or somebody new that comes in and applies for a rezoning to MCX.
“Granted, that may change shortly with the changes that may occur with Chapter 11, (but) if it’s accessory, and if it’s subordinate and incidental to the original use, it should be OK.”
Councilman James Hustace of Waimea voiced numerous concerns about amendments which he said changed the bill’s intent.
“What are the thresholds to allow for more workforce housing, because now you’ve eliminated dwellings from permitted use?” he asked Darrow.
Darrow replied the amendments are “trying to address the main concerns that we’re hearing, which is that the dwellings are not the primary use on these properties … .”
“No, I understand that relationship in trying to solve that workforce demand in those areas, but it may not be in the scale that we might be needing, though. We’ve scaled it way back so it’s not primary permitted use, and I’m not quite clear on the threshold, so we may see a greater need down the road,” Hustace said.
“For housing?” Darrow asked.
“For workforce housing in these areas that are mixed use that have potential down the road,” Hustace replied.
“I understand your point. At this point, we’ve had nothing,” Darrow answered. “It’s adding something, and I think it’s a pretty good balance that … it really opens up the door to allow something … to where you can have a large-scale business and workforce housing on the same property.”
Kona Councilwoman Rebecca Villegas asked Onishi if he introduced the bill at the request of Smith and Moore, and Onishi replied that he had not.
“When I was first on the council, the council allowed homeless shelters in the area, and that’s when I brought up about having family housing … which got shut down,” Onishi said. “Then, earlier last year, we allowed hospitals and senior homes. And that’s what brought this back again. Because if we’re going to have those uses, why can we not have our families working in the certain areas to have their home there.? Then they don’t have to worry about traveling so much. Everything would be close to them.”
In response to a question from Council Chairman Holeka Inaba, Darrow said “MCX zoning does not allow short-term visitor rentals.”
Villegas said she wanted the bill to be delayed so the amendments could be viewed by the Kona CDP Action Committee. She added that she has reservations about the measure, saying, “While the intention may be to allow for workforce housing, there is no requirement that is what would legally be required to happen.”
“I look at all the condo units that were built on Ala Moana Shopping Center,” she said. “Those are not workforce housing. And, yeah, they’re in city central … and could allow for people to have access and work, especially at that shopping center. But the price? Way out of anything attainable for a workforce. Same thing that we’re seeing happening in Kakaako.
“So, when I look at Kona and I look at the desirability to live … in an urban corridor, I don’t see our families wanting to live down there.”
Puna Councilman Matt Kaneali‘i-Kleinfelder asked Real Property Tax Administrator Lisa Miura about tax rates for commercial properties versus affordable housing. She replied the commercial property tax rate is $10.70 per 1,000 square feet and the affordable housing rate is $5.95 per 1,000 square feet.
“So, the property would be taxed at approximately half if the bill was to pass and affordable housing built?”
“Correct,” Miura answered.
Ka‘u Councilwoman Michelle Galimba asked Darrow if there was a difference between “intent versus reality” in the word “accessory.”
The planning director replied that questions and answers about those decisions would be made during the permit and planning approval process.
“I don’t think we’re in the business of monitoring what happens later,” Darrow said. “If the intention was there originally, that option we were trying to achieve by having them live and work in close proximity has been achieved. … I don’t know what we can do within the code to enforce that or restrict it. … They need the workers. They’re providing an opportunity that is going to draw the workers to them because there is such a great need for workers right now. Most of the businesses are really struggling right now to fill that demand.”
Galimba said she’d like to “if anything, err on the side of creating workforce housing.”
“I do think there are a lot of people living in their cars and having to drive from very far,” she said. “And that causes a lot of problems for our island as far as road infrastructure as well as, obviously, for these folks and their families.”
Email John Burnett at jburnett@hawaiitribune-herald.com.
