Aloha and good morning everyone. It is Thursday, August 21st, 2025 and the time is now 9:01 a.m. with the committee on zoning and planning meeting. Please come to order. I would like to welcome committee members Vice Chair Waters, Council Member Topola, Council Member Dos Santos Tam. I understand that council members Cordderero and Okimoto will be coming in shortly. Uh I I did want to say something to the committee members. Given the fact that this committee always has lengthy a lengthy agenda, I do appreciate when people um we have enough quorum to start timely. Um, welcome council member Okimoto. And that's critically important because otherwise um the hearing uh is going to be longer. Uh a couple of months ago we had a 20 minute start time and we can't afford that. So I appreciate uh people coming on time. Although remote verbal testimony is being permitted, this is a regular in-person meeting and not a remote meeting by interactive conference technology under HRS section 92-3.7. Therefore, the meeting will continue notwithstanding loss of audiovisisual communication with remote testifiers or loss of the public broadcast of the meeting. Members of the public will be allowed to provide verbal testimony on all items on the agenda when each item is taken up in two ways. in person in the council chamber and remotely via via video conference or phone. Before testifying, each person shall state their name for the record. Each speaker will be limited to a one minute presentation per item. All persons who register to testify in person will be called one first. Persons who did not register will be given an opportunity to offer testimony after the registered testifiers. Once inerson testimony has concluded, I will proceed to the remote testifiers. When I call your name or the last three digits of your phone number, please follow the prompts to unmute. Both English and Hawaiian are official languages of the state of Hawaii. Pursuant to article 15, section 4 of the Hawaii state constitution and section 113 of the Hawaii Revised Statutes. Members of the public may testify in either language for for verbal uh testimonies offered in Olo Hawaii. Additional time as may be necessary, we allowed for the testifier to provide an English translation of their testimony. Written testimonies, including the testifier's address, email address, and phone number, will be available to the public as described on the posted agenda. As a courtesy, please turn off or silence all cell phones for the duration of this meeting. Thank you. Moving to agenda item number one, bill 33, 2025, CD1. This bill amends the administrative enforcement provisions for violation of the standards and requirements of the land use ordinance. It was introduced by council chair Waters and would allow for the physical posting of a notice of violation or notice of order in a prominent location on the property as an alternative method for the department of planning and permitting to serve the enforcement notice and provide the department with an additional tool to address violators who deliberately avoid or refuse to accept service of the enforcement notice. Members, we have distributed a proposed handcarried CD2 version of the resolution OCS 2025676 which makes the following amendments. At the request of the Department of Planning and Permitting, it deletes RO 21-2-2DCD6, which would have required that the notice of violation include a statement of the actions that are necessary to correct the violation. It adds a new section Six to the bill to amend RO32-5.4 to make conforming amendments relating to references to renumbered ROH sections and section 8 of the bill which provides that the ordinance takes effect upon its approval. It adds that the amendments made to RO2 21-21 152E and section two of the ordinance supersede the amendments made to RO20-21 152E in section 11 of ordinance 25-2. Ordinance 25-2 updated the land use regulations in article 5 of the last land use ordinance and becomes effective on September 30th, 2025. So, the amendments made to the administrative enforcement provisions in this ordinance will supersede the amendments made to the same RO section in ordinance 25-2. Before I call up the administration, I would like to take uh public testimony unless chair waters if did you want to talk about Okay, thank you. Uh proceeding first with in-person testimony in the chamber. Do we have any in-person testifiers for this item? Chair, >> there are none. Is there anyone in the chamber who would like to testify? Please come to the podium and and identify yourself. Seeing none, proceeding on with remote testimony. Clerks, do we have any remote testifiers for this item? >> Chair, there are none. >> Moving forward for the administration, we have uh Don Takuchi Auna, director of planning and permitting. >> Thank you, chair. We are supportive of the proposed CD2. I would like to add one uh little um proposed amendment that we just looked at um for on page three, paragraph 7, it says a requirement that the violator correct the violation by a specified date. And if we could add comma or upon receipt of the notice of violation, that way we can either put a specific date or um depending on the type of violation, it makes sense that they correct it upon upon actual physical notice. >> Chair Waters, do you uh are you open to that? >> Yeah, no objection. Thank you. >> Okay. This would be a verbal amendment. >> Yes. Thank you. >> Okay. Thank you so much. Uh members, are there any questions for the director? The chair recommends um or any discussion? If not, the chair recommends that bill 33 2025 C CD1 be amended to the hand carried CD2 OCS 2025676 with the verbal amendment that was proposed by the DPP director. Any discussion? Any objections or reservations? Hearing none. So the bill has been amended to a CD2. The chair then recommends that bill 33 2025 CD2 be reported out for passage on third reading. Any discussion? Any objections or reservations? Hearing none, so ordered. Moving to agenda item number two for action, bill 51, 2025. This bill amends the Fort Street Mall Special Improvement District number two and supersedes any conflicting provisions. Members, we have a posted on the agenda proposed CD1 version of the bill submitted by Council Member Dantis Tam who also introduced the bill. I will now defer to Council Member Dos Santos Tam for an explanation. >> Thank you, Chair. Uh the because it's posted, the items are listed on the agenda, I believe. Um, but they're all uh comments that came in to support um the the downtown bid and help to improve how it would operate. >> Thank you so much. Ro 28-2.3 requires that all land owners and leies of the properties listed in Bill 51 for inclusion in the amended downtown Honolulu Special Improvement District be notified by mail at least 15 days prior to the council scheduling of the required public hearing. The city clerk's office mailed these notices on August 12th, 2025. RH28-4.3 provides that the council may commence proceedings to approve an ordinance to change the authorized supplemental services and improvements. The supplemental services and improvements to be financed the rate or method of aortionment or a special assessment are the boundaries of the district after receiving a quest a request from the district board as part of miscellaneous communication 405. The chair of the district board transmitted a request to the council consider and adopt amendments to the Fort Street Mall Special Improvement District. Joining us in the council chamber is Chris Fong, senior investment associate at trade wind capital, who'll be providing a brief presentation. For your information, the presentation is available online as miscellaneous communication 440 2025. And Mr. Fong, I do know that you had presented previously. Uh, but just because uh I would like for public dissemination of your um the the bill, I would like for you to succinctly summarize what you did before and then maybe spend some time on the most relevant update. Thank you. >> Good morning, council, and and thanks, Chair Kina. Yeah. So, this is the second presentation I'll be giving on the downtown business improvement district because it is our second hearing. Um, at the last meeting, I did give a more detailed presentation on the business improvement district. Um, I can give a short overview of it for anyone that is tuning in for the first time. Um, but really I I do want to focus on the updates that took place between the last hearing earlier this month and today. Um, So just to to recap, how did we get to this point? So we started this process of evaluating a business improvement district um over a year ago and it started with a conversation between 40 of the major land owners downtown to really talk about the state of the district and there was a recognition in those conversations that it felt like the future of downtown was in jeopardy. issues that the group identified were the um impression of the safety and security of the streets, the insanitary condition of the streets. Um people noted the growing retail vacancies. We had large retailers leave like Walmart, Ross, Longs, Walgreens. Um, and it was discussed that unless the community took action, downtown um, might spiral out of control and that we couldn't rely on anyone else um, to make the change that the constituents in the district wanted to see. And so from May of last year through December of last year, uh some of those major uh land owners really focused on okay, what can we do to address the issue that we're seeing in the district? And so we started collaborating on things like how do we improve safety and security? How do we clean the streets? How do we activate the streets? You know, uh is there anything we can do to bring in more night markets? uh improve the retail experience. How would we govern anything that we wanted to do? So, how do we get more of the land owners involved? How would anything we want to do be financed? So, if we wanted to provide supplementary services, what was the funding mechanism to do so? And then lastly, how could we work with government in all of this? And through all of that research and collaboration, the creation of a business improvement district really stood out as a solution I think the community was looking for. It was a way for us to stand up an entity that would oversee the district as a whole and to provide the supplementary services that we needed. It was a way to fund the supplementary services um that we had discussed. things like patrol officers, things like uh street cleaners, advocacy personnel, and it was a way for um such an action to be governed by the stakeholders in the district for so for the land owners and the businesses to really take control of what they wanted to see done in their community. >> So what are some of the services of a business improvement district? And so there are some common services we see in business improvement. >> Mr. Fong, I uh can I I I I think we got it. >> I wanted you to uh just succinctly summarize before and uh can you give us the updates, please? >> So maybe can I just hop then to the updates? It sounds like everyone is comfortable with what a business improvement district is. So coming out of the last meeting um here there was questions about um you know our community outreach, what were next steps for us and then we represented that we would continue active community outreach and so like I said in the beginning of this um presentation, we started these conversations with some of the major land owners and that those conversations had been taking place for a long time now. Um uh over the last couple of months, we've been really focused on some of the smaller land owners and small smaller businesses that you know we can't just pick up the phone and call. And so the two big events we hosted were we hosted two town halls. One was on August 12th um in uh at noon at lunchtime. It was hosted at Pickles, which is the former Walmart building. um lasted over an hour and it and the reason for holding it at lunch was for businesses that were in the district and lunchtime would work out better for them. And we hosted a second town hall uh two days later in the evening at I believe it was around 6 p.m. And that that was centered around folks that couldn't get away during the day. So think residents in the district or businesses that maybe couldn't leave in the m middle of the day. So, you know, we set up two uh separate town halls to get out to as many folks as possible. We discussed um you know, what was the investment rationale for a business improvement district, how would it be governed, the imple implementation timeline and legislative process, and then we opened it up for Q&A and we had an open discussion and it was a pretty active discussion. and we had myself in attendance, some other major land owners um and folks very involved in the Fort Street Mall business improvement district. Council member Tam was there too um to facilitate the conversation and answer any questions. Um and I won't go through all the details of the conversation, but I think it's fair to say that the takeaways uh was that there was continued uh community support for this concept. In fact, at concluding the second town hall, uh before we closed it out, um someone did ask um is there anyone that opposes this? Can you raise your hand? And no one raised their hand. And it was said, okay, so you all you're all here for questions? Um and people nodded and and so that was the best way I could sum it up. There was a lot of discussion, but it it seemed like from us that it was just Q&A and that there was broad um community support for this concept. Um and so uh that th those are the updates. Um you know last thing I'll say and then I'll pause for questions is that you know the timeline here is very important to us the stakeholders in the district because we are trying to meet a set timeline to have this implemented in uh the 2026 tax year which starts in July. So I'll I'll pause there and thank you for the time. >> Thank you and welcome council member Cordddero. Members, are there any questions for Mr. Fong? If not, I'm go ahead. >> Thank you, chair. Really quick, these town halls that you have, these two meetings, h how many people were in attendance, and could you tell me, you know, what types of um community members were were there that were giving the feedback? >> Yeah. So, I I I would guess about 25 to maybe 40. Um maybe council member Tamkin nodd his head in agreement. Um it you know it was uh um and and the the attendees the mix it was a pretty broad mix. You know I think the the two were set up for a specific audience. Um the one at the lunch was focused more on businesses. The one in the evening focused on residents but I think in both of them we had a mix of both. So some businesses and residents showed up and you know we had government officials too and people that were just curious. >> Okay. Thank you. Thank you chair. >> Thank you. Uh Mr. Fong, I'm going to follow up on some questions that I asked you at the last hearing. So hopefully you'd have some um updates on on this front. As a followup to the question that I posed last time, do you think that section two of the bill which highlights the major changes in the proposed revised plan for uh the Honolulu um business improvement district should also mention that the revised plan increase the number of board members from 17 to 20 and incorporate a new budget for the first fiscal year. Um, just so I understand the question, are are you saying do I agree with the change or um should I make are you suggesting other changes to the bill? >> I'm asking yeah if you should uh that the revised plan should increase the number of board members from 17 to 20 and incorporate a new budget for the first fiscal year. >> Yeah. And and actually maybe I can uh pause and look to council member Tam for some guidance here. Um do you have initial thought and then I'll go second? >> No, I I think I think that's a very reasonable um very reasonable proposal. I mean going from 17 to 20 would include additional board members and of course there will be a budget anyway. So >> yeah and then I'll thank you for that and I'll add too, you know, I think it it is reasonable as well because a lot of the board members um that represent the current Fort Mall business improvement district are good are a good representation of the district as a whole already. They are a lot of the major land owners in the district. Thank you. Do you have any updates in the status of the district's proposed amended bylaws? So hopefully affected property owners and leies will have a chance to review it while the council is still considering this bill. >> Yeah. And so um the the approach there is that you know we will make a a note on our our website, the Doho Business Improvement District website um where uh bylaws can be um provided upon request. I just don't know if it's typical to to post bylaws um for an entity in the public. Um but that's certainly something that we we can do. I'll um have a discussion with uh council member Dantis town separately from the from the hearing today. Uh, did you have a chance to gather more information on the number and type of parcels that will be affected by the removal of the exceptions from payment of the district special assessment for parcels exempt from the payment of real property taxes because the parcel is used for church purposes or because the parcel qualifies as historic commercial real property dedicated for historic preservation. >> So, I I don't have the number in front of me. Um, and actually I I for the specific number of those properties, I I will look to council member Tam and his office. I in my mind I I know who they are. Um, >> okay. I have to tell you, I'm pretty sure that I asked these questions before, so you should have been prepared for that. Uh, but I I'll be open to uh having a response to these questions uh after the hearing. Before I call up the administration, I would like to take public testimony, proceeding first with in-person testimony in the council chamber. Clerks, do we have any inperson uh testifiers for this item? >> Chair, we have a few standing by. >> The work the first testifier is Warren Wong. >> You have to press the button and then you say yes. >> Thank you. Yes. Good morning, Chair Kina. I'm here to support Bill 51. My name is Warren Wong and I manage properties for the Caris Organization and I'm a current sitting director for the Fortune Mall Special Improvement District. Uh the bill 51 plans to expand the area not not just to include the foster mall but going to the west to Unoano street and to the east to Richard Street and Mala from Baritania to Mai to Nimttz. What we need to do is to create a environment so that when property owners, tenants, their employees leave the property to shop, park, purchase lunch, dinner, pick up children from daycare, do financial transactions, and other activities. They need a safe, clean, and hospitable environment to do this. And Bill 51 can provide this. We must remember that as a community, we are all interconnected. Land owners, tenants, businesses, large and small, residents, investors, and service providers are all included. Bill 51 is a community-based project and the goal is to create a vibrant, revitalized in our hospital environment to enable our community to thrive. Thank you. >> Thank you. Thank you for your testimony. The next testifier, if there's no questions, would be Ed Corabiski. >> Aloha, Council Member Kiana. Um, do Santos TAM. Um, my name is Ed Kipsky. I'm executive director of the Fort Street Mall Small Business Improvement District, and I just want to voice my support for this. As many of you know, we've have lost a number of businesses, but we are in process of transitioning to a partially residential community, and we need more services. So, I fully endorse Bill 51 as a way to make this a more livable neighborhood as people move in. Thank you. >> Thank you. There are no questions. The next testifier is Jason Regal. >> Hello, council members. My name is Jason Rego and I'm the general manager of the executive center on Bishop Street. I support Bill 51 as it will improve the safety, security, and cleanliness in the downtown area which directly affects the well-being of my residents and the experience of my hotel guests. Thank you. >> Thank you. There are no questions. The next testifier is Jamie Barbosza. >> Good morning, council members. My name is Jamie Barbosza and I'm here to represent um myself as a resident. I'm a longtime resident in the downtown area from 1971. My first 20 years I lived there at uh Kui Gardens. So the downtown um area is my backyard. I went away to college in in ' 91. And then when I came back I was uh disappointed and saddened to see all the homeless and the um the town turn for the worse. So, I actually moved to Eva after college um because it was nice, clean, affordable. But in 2018, I had an opportunity to move to town to the Honolulu Park place. And I thought it was a great opportunity for me and my family. But the first night that I was there, I realized that it was worse than I could have imagined. um you know the night the night activity out there with the homeless and the the drug abuse um it's really uh scary. So with this bill 51 I believe that it will create a safer cleaner environment uh some you know someplace I could be proud of and then actually feel safe for my wife and my kids to go out and um enjoy. Thank you. >> Thank you for your testimony. The next testifier is Mark Anthony Clemente. Hello, Cher Kaya. Council members, Mark Anthony Clemente on behalf of the Hawaii Regional Council of Carpenters here in strong support of Bill 51. Downtown is where thousands of us live, work, commute, and gather every day. But without the dedicated resources, we all feel the impacts of neglected sidewalks, public safety concerns, and underused spaces. So, this is a transformative measure for residents, businesses, and visitors alike. So, let's not miss our chance to activate downtown Honolulu and give it a fighting chance to thrive. Thank you. >> Thank you so much. The next testifier is Ben um Duke Chetra. >> Good morning. My name is Ben Duchcher. I'm here representing Avalon Group in strong support of this measure. Uh first of all, thank you chair Kiaina and vice chair Waters of this committee for your strong support and obviously council member Tam for your leadership on this effort. We feel that this is money well spent for commercial property owners such as ourselves. Uh we're more than happy to contribute in order to provide the services that Chris described in his presentation. We feel that uh it's also important to mention a couple of other things. First, that this will be at no cost to residents. uh it will be fully borne by commercial property owners and second that this uh business improvement district is to be stowed up for only 5 years at which point any and all issues that come up with it uh can be re-evaluated by the council and uh and changes can be made or the uh the reauthorization does not have to go forward at that time. So we feel that there are various measures in place here uh that protect the community uh if and address any concerns that they might have. Thank you. Thank you so much. Is there anyone else anyone else in the council chamber who would like to testify on this item? Please come forward to the testifier podium and begin by stating your name. Uh aloha chair, uh members of the committee, my name is Perry Aerosmith. I am the director of policy at Housing Havaii's Future. Uh we are in strong support of Bill 51. uh when we think about what actions we need to take to actually house Hawaii's future, a critical aspect or a critical component is going to be downtown Honolulu, activating downtown Honolulu and promoting mixeduse housing. Um that's what establishing a business improvement district will help facilitate. Um we strongly believe that a lot of young residents don't want to sit in traffic. They want to be able to walk downstairs, walk to their offices, go to a restaurant after work, drop their kids off at daycare. That's that's really what this measure is fundamentally about. Making downtown Honolulu more livable for Havi's residents. Thank you. >> Thank you so much. Is there anyone else in the chamber? >> We'll now move on to uh remote testimony. Clerks, do we have any remote testifiers? >> Chair, we have a few standing by you. >> When I call your name or the last three digits of your phone number, please follow the prompts to unmute and begin by stating your name for the record. When the timer on the screen reaches zero, please conclude your remarks promptly. The first testifier is Kendrick Chang. Morning, Chair Kiana Kendrick Chang this morning. Uh, presenting in my personal capacity. Um, as I have established familial ties to the Fork Street Mall area and arguably I think it's a fair statement. Um my family is probably one of the smallest land owners in the immediate forestry mall area. We do stand in support of this measure. Um we are satisfied with the outreach that um the sponsors of this measure has taken. I attended the meeting um last week and I believe all the benefits will collectively bring all the landlords together to improve our downtown mall community. Mahalo. >> Thank you Kendrick. I do have a question. So you you you don't have a problem as a small property owner with the um special assessment. >> Uh Cherokee Aina um as my family's um ties is currently part of the forum business improvement district by expanding it actually lowers the fee assessment for those who are currently members of the forum area. >> Thank you so much. >> Thank you. The next testifier is Perry Arismith. I'm sorry. Was that you? Okay. The next testifier is Tony Wong Cam. Tony, are you on? I see you online. >> Yes. Good morning, chair, council members. My name is Tony Longamp. I am a business owner on the for street mall special improvement district. We are the operators of the yeong fruit tea um the boba shop here on for street mall. We opened our doors three years ago and um I stand to strong support this business improvement district and I commend um council member dos Santos Tam and his efforts because when we first open our doors a lot of people uh raise their eyebrows saying that are you sure you want to open there and I you know commend our landlords um Warren and his team for really helping us um grow as a small business. I think this will really help a lot of the small businesses in the area that have been struggling due to low traffic. Since these discussions have been going, we have seen a lot of the landlords take their own resources to help support our businesses and we have seen um data points. We've seen foot traffic increase exponentially in the last year. People are becoming more comfortable walking along Forto and not just during office hours. Even on the weekends, we've seen increased foot traffic because the efforts of the community and our um council member have been showing that we think that this improvement district will greatly help a lot of the shel businesses that have struggled since the pandemic. So, we stand to strongly support this measure. >> Thank you for your testimony. Is there anyone else standing by remotely who would like to testify? Please use the raise hand feature in Zoom or press star 9 on your phone to indicate your desire to speak. Aloha chair. Um this is Angela Young testifying on behalf of CARES. And so I'm super excited about all the discussions and debates um about the development going on um in Oahu. I'm at the Hilton Hawaiian Village. I'm so excited for what they presented about to happen soon. Um, so about the downtown um bill, I was thinking that um because um with special district designs or boundary amendments, if it doesn't hurt the community and it helps with future development, then it's a good proposal. For example, um the benefits that do come with this bill seems to be enhanced economic vitality, physical appearance of district, public safety issues, and appeal of elevating a district by investment in critical services, um like in marketing, helping each other's businesses out. So, what's the bad thing that could happen? Will businesses be forced to pay dues? That was not explained. Um so, I went to the pickle ball event. It was not pretentious or intimidating at all. It was a very large venue, very beautiful. And I think the goals can be accomplished with the community organizing. um beyond the technicalities of legislating. So if you don't mind sweaty, I did. >> Thank you, Angela. Thank you for your testimony. >> Yes. >> Moving on to the administration. Uh we have Michael Formbby, managing director. >> Good morning, committee chair Kiana, Vice Chair Waters, and council members. Mike Forby, managing director. So, the establishment of a business improvement district is a communitydriven initiative. Our role has been to participate in public meetings and answer questions and make sure that the community fully understands the city's role in this public private partnership. And we stand in support. >> Thank you, managing director. And I don't know if you be able to um answer these questions. I have just two u short questions. Uh with regard to the administration of if this bill were to be enacted into law, would the department of uh budget and fiscal services have the resources to bill for and collect the assessments for the downtown Honolulu B? >> Yes, they do. And based on the most recent real property assessed values and the proposed assessment rate of 75 cents per thousand dollars of real property assessed value, uh what do we anticipate will be the average special assessment amount per property owner? >> So chair, I don't have that information. I can see if BFS has it, but I believe that the organizers probably have that information, but I'll check with Andy Kuano at BFS. >> Council member Dosanto Stam or Mr. Fong, do you guys have a answer to that question? >> Yeah, so the rate is um 75 cents per thousand evaluation. Currently the Fourth Street bid folks pay about 95 cents. So again, it's a reduction for the existing members. Um and that comes out to about 2 cents per square foot in CAM uh for tenants in the area, which you know, if you have a 2,000 uh square foot, you know, convenience store or something, um it's a fairly small amount every month. Okay. Thank you. Because they're all going to be different, correct? The pace based on the size >> based on the the size, the valuation, etc. >> Okay. Welcome, Council Member uh Wire. U members, any other questions for the administration. Thank you, managing director. The chair recommends that Bill 51205 be amended to the posted CD1. Any discussion? Any objections or reservations? Hearing none, the bill has been amended to a CD1. Chair then recommends that bill 512025 CD1 be reported out for passage on second reading and the scheduling of a public hearing. Any discussion, any objections or reservations? Hearing none, so ordered. Moving to agenda item number three, resolution 25-207. The resolution grants a special management area major permit to Cove Campbell Kobayashi LLC on behalf of Campbell Hawaii Investor LLC to allow for the redevelopment of the Cove and outdoor amusement facility involving the demolition of all existing buildings and structures except for two buildings and the construction of 15 new buildings and structures on approximately 472,757t shoreline lot zone B1 neighborhood business district located at 92-1089 Elite Einui Drive in Coalina, Oahu and identified as tax map key 91 057027. Members, we have posted on the agenda a proposed CD1 version of the resolution which I submitted. For your information, a summary of the amendments is listed on the agenda. We have also distributed a proposed hand carried CD1 OCS 2025661 which is the same as the proposed posted CD1 but deletes condition 51 I mean sorry F1 F2 and F4 relating to minimizing impacts to archaeological historic and cultural resources. I will explain the rationale for these amendments a little later. The project involves the demolition of 23 existing buildings and structures, the retention of two two buildings that are being used as wedding chapels, and the reconfiguration of existing park parking areas. The project also involves the new construction of 11 buildings and four structures consisting of an amphitheater and performing arts venue, four restaurants, two of which include outdoor dining areas, a village walk retail area with two buildings, four support buildings involving an amphitheater control booth, luau gift shop, luau performing dressing rooms, and a multi-purpose building with luau guest restrooms, banquet kitchen, property management office, and employee break room and four accessory structures, including an uncovered trash receptacle area, cart storage area, and two tiki bar concessions. In 1989, the project site was reszoned under ordinance 89-27 from the A2 general agricultural district to the B1 neighborhood business district. The unilateral agreement attached to ordinant ordinance 89-27 includes conditions limiting the type of commercial activity on the project site to restaurants and retail activity associated with a Hawaii Hawaiian theme park and commercial lua operation limiting the lot coverage to 30% of the zoning lot and requiring a 40 foot wide strip along the Seawward property boundary that must remain open and free of structures and improvements. The project satisfies all of these conditions. The certified shoreline survey for the project site dated August 3rd, 2021 has expired, but the director of planning and permitting waved the requirement that a new certified shoreline survey be conducted because the project is located mala of the regulatory 60oot shoreline setback plus 15 ft. All project buildings and structures are located at least 75 ft from the presumed shoreline. The state department of land and natural resources land division reviewed and did not oppose the director's waiver. 25% of the project site will be impacted by 3.2 feet of sea level rise by the year 2100s. Buildings 1 56 and 7, all of which are restaurants are within the 3.2 sea level rise exposure area. Building one is entirely within the exposure area and the outdoor dining areas of buildings five, six, and seven are within the exposure area. Since restaurants are a commercial use, the structures do not include habitable spaces. It is not feasible to relocate building one elsewhere in the project site because of the existing and proposed locations of other buildings and structures. An archaeological inventory service survey of the project site was conducted by Cultural Surveys Hawaii in 2024. The survey identified one human skeletal remain and one burrow preserve area where five human skeletal remains had been relocated. After consultation with signitories of the 1995 burial agreement and known cultural and lineal descendants, a burial site data recovery and preservation plan for the project site was prepared and is currently under review by the state historic preservation division. As I mentioned earlier, the proposed handcarried CD1 deletes condition uh F1, condition F2, and condition F4. The department's position is that since the 1995 burial agreement is in place and the archaeological inventory survey has been completed and the burial site data recovery and preservation plan has been submitted to the division, the archaeological monitoring plan is sufficient to address impacts to archaeological, historic, and cultural resources on the project site. Therefore, the amended condition F includes the following conditions to minimize impacts to archaeological archaeological, historic, and cultural resources. Condition F1 requires the applicant to prepare and submit an archaeological man monitoring plan to the division and provide the department with a copy of the division's written acceptance and any required mitigation protocols. And condition F2 requires the applicant to observe standard stop work protocols and contact shipd immediately if during construction any previously identifi unidentified archaeological sites or remains are encountered. The project involves the excavation of approximately 3,720 cubic yards of soil material for grading and landscaping purposes. Some of the excavated soil material will be used for infill purposes and no importation of soil fill material is proposed. The applicant also proposes to import 3,380 cubic yards of structural fill material primarily for use beneath hard heart shaped heartscape areas and for the slab on grade building foundations. Since structural fill may contain in invasive pathogens, pests or plants, the proposed CD1 includes condition I, which requires the applicant to comply with certain protocols to minimize the spread of invasive species. The project falls under the outdoor amusement use under the current land use ordinance. A conditional use permit is required to use this in the B1 district and the department is processing a conditional use per permit for the project concurrently with this resolution. Joining us in the council chamber is Matt Cares for the James Campbell Company who will be providing a brief presentation. For your information, the presentation is available online as miscellaneous communication 436 2025. Welcome. >> Uh, thank you, council member. For the record, Matt Cares with the James Campbell Company on behalf of the partnership Cove Campbell Kobayashi. Um, again, thank you very much, council members, members of the public, um, for allowing us to present this morning and share a little bit more about our project. Um, real briefly, I also want to recognize behind me our technical team present with us today, as well as the planning team from DPP, um, who together have helped us get to this place. The Cove Redevelopment site is on Elite Einui Drive at the entrance to Coalina. The 11 acres has been stewarded by our company for over 140 years and is located within the Honolulu Auba. It was once part of Lano Honua, home to James Campbell's daughter, Kamukila Campbell, and since the late 1970s, has been leased to Paradise Cove, a luau, retail, and wedding destination. Today, most of these facilities on the property, which date to the early 1990s, are nearing the end of their functional lifespan. And our goal is to reimagine the site as a modern Hawaiian gathering place by transforming what was once an exclusive destination into a community-driven cultural and economic resource for all of West Aahu. This goal was driven by our decade of engagement with cultural leaders, residents, neighbors, and businesses, resulting in a vision to reconnect people to place, celebrate Hawaiian and global values and culture, and create local economic opportunities. To achieve this goal and deliver on the community's vision, we brought together a best-in-class team. Each of our partners brings deep experience in Havaii real estate and a shared commitment to land stewardship as well as community-minded development. We're here before you today because our redevelopment of the cove will require a special management area permit. This permit will allow us to modernize the site while ensuring that the project meets coastal management objectives and provides real benefits to our community. I'd like to take a moment to share a site plan and a few renderings that illust illustrates our vision. Now, we've organized our site layout into three main elements. Starting with our cultural anchors, which is the outdoor performing arts venue in yellow, and our cultural activity areas in purple. That's followed by our community spaces, landscaped open spaces in green, kiosk for crafts and farmers markets in orange, and areas throughout the property for events and workshops. And lastly, we'll have restaurants that will showcase local cuisine and smallcale retail shown in red and gray on the plan. Now, to give you a better sense of how this is all going to come to life, the next few slides show renderings from some of our project's signature elements. Running through the heart of the project is our village walk, a welcoming blend of mature landscaping and walkable retail and dining experiences centered on local connections. The cultural anchor is our planned Hawaiian performing arts venue. This is going to be a world-class outdoor venue and home to hoola mele storytelling all to support local artists and cultural programming in a dedicated space that is appropriately scaled for the environment. When you weave this all together, our design intention will connect these spaces seamlessly, creating a place to enjoy a local meal at an open air restaurant, meet friends by the beach, or relax with your Ohana on the lawn with local musicians Kane Capila and the sun setting. To us, this is the essence of a modern Hawaiian gathering place. Open, welcoming, and rooted in the rhythms of our local lifestyle. Our project is designed to not only be welcoming and community oriented, but it's also been carefully right-sized to fit within existing zoning. It protects open space, preserves shoreline access, and ensures no substantial impacts to coastal resources. In doing so, it aligns with all the SMA objectives, including protecting coastal landforms, maintaining access to the shoreline, and preserving our historical resources. In short, this project has been carefully planned to safeguard the environment and creating community benefits. I'd like to close by sharing some of the real value this is going to bring to the community and leave you with four key benefits that we're going to deliver. On economics, we're going to nearly triple the current employment at the site, creating over 500 full-time jobs, generating as well as $2 million a year in city tax revenue. public access. We're improving beach access, building a comfort station, and will continue to provide free parking to the public. With cultural and community spaces, we're dedicating areas for Hawaiian performing arts and educational programming. And lastly, with environmental enhancement, 85% of the site will remain as open space and will include preserved mature trees and landscaping focused on native and Polynesian introduced species. Together, this project represents a balance of opportunity, culture, access, and environmental care. And we respectfully ask for your support of our application to bring these benefits to our community. Mahalo. >> Thank you. Thank you for your presentation. You know, I'm uh very excited about um all that you guys have been doing on the property. You know, every time I go out, there's somebody that's affiliated with your group telling me that they're involved. You know, sometimes I don't know, right? there's so many people involved, but um they I they I highly respect a lot of these uh partners that you've engaged with and to me, you know, we have the council mayor from the district here, but I deeply appreciate your your commitment to help u uplift our Hawaiian community, both the Wii coast as well as in the Capo area. So looking forward to this project, Council Member Topa. >> Thanks so much, Chair, and thank you for your kind comments. Yes. Um definitely a lot of westsiders are employed in that area. So I wanted us to touch on a few things. We've talked but can we say some of them publicly. So specifically when you drive into Kolina this area is right at the onset when you enter right and the immediate uh community to the right is Kylani. Can you explain how you've done that outreach because of course that specific community was the most involved in wondering how those impacts would affect them. So, could you publicly state what you guys have done so far and what you are going to continue to do to work with the community? Thank you. >> Yeah, absolutely. Thank you, council member. Um and yeah to clarify um you know these outreach efforts with our community started a decade ago and when we say our community that's you know both not just the immediate communities within the coalina resort um but Nakuli Yi Capo Honokai um Eva all of Aahu really um you know we see this as an opportunity to uplift everybody and provide an economic opportunities um throughout the coast um specific to Kylani um we've met with them over six times. Um just for those um wondering that's the community on this mahalo slide um just just ma of our property. Um it's a mixture of town homes and single family residences um that were built about 20 years ago and um we've met with them at least six times this year. Um we're continuing to dialogue. naturally as the closest neighbor um we want to make sure that um we you know keep keep in close contact and we've committed to for example um during construction giving them a direct line to one of our superintendent um in terms of site planning we've also committed to moving the main entrances further down Elite Einui Drive so that eliminating so we would eliminate queuing on Elite Inui Drive. Um those are just two examples but it is a continued dialogue. >> Thank you so much. You know, for the record, I wanted to mention to the president, Margaret Margaret Castillus, who reached out to me that you guys are going to continue this dialogue. Of course, their main concerns is the sound and the traffic and the parking. So, you will work with them on that, correct? >> Yes, council member. >> Thank you. Um, secondly, the rest of Kolina is actually managed by um Kolina Community Association, Koka. So could you uh publicly state how you guys have negotiated with them because it's important right that we continue the feel of Coalina in that front area as we know we have those private very clean bathrooms very clean lagoon areas and that's because they all have a community association fee um applied and that they have their own type of like maintenance that happens there. Could you publicly share kind of how you guys have found a middle ground with them? >> Yeah, absolutely. Um so council members referring to the Coalina Community Association which operates um and oversees the entire Coalina community. Um for the record, the property itself sits just outside the community, but again recognizing and wanting to be a good neighbor. Um you know, we are going to be accessing some of the roads that they maintain. Um enjoying some of the landscaping in the community as well. Um and so we've committed to them to um work with them um to make an appropriate, you know, contribution on an ongoing basis um during the project. So that's something that we're working with them in private, but we're happy to share that with everyone so it gives people comfort. >> Thank you. And lastly, the most important thing is that Paradise Cove employs tons of Westsiders. So what are the efforts that you're going to be doing to make sure that we don't have a gap or people unemployed? I was very impressed by the strategy you guys had proposed. could you please share that so that those listening know that we've thought through many of the issues that this might cause and tried to remediate that? >> Yeah, no, absolutely. And um thank you for bringing that up. I mean, we'd be remiss if we're not talking about the fact that the property itself now um is home to over 200 folks that make their living um off of this land. And it's something that we take seriously. And you know, we've worked with the it is uh currently ground leased and we've worked with the owner operator on a on a transition plan with more details forthcoming. Um but you know, we've committed to assisting in that transition. Um while I said, they're not our employees. Um, you know, like I said, I said earlier, we're the stewards of this property and it's our responsibility to help them with transition and do what we can to get this project built as fast as we can so we can have hopefully invite them back to continue to use this place as a place to make money for their families and earn a living. >> Yeah, thank you so much. I just wanted to speak in support of this project. I do think that they've tried to remediate and meet with all the important groups that are going to be affected and as well I've kind of met with all of them and to hear them out and make sure that things are being followed up on and I've even talked with Campbell about possibly having us have a little bit of lifeguard outreach there. As you know in a few weeks um ago we had a drowning there and so we want to make sure as a city that we're supporting as much as we can. We even are going to be having a EMS um substation in Kolina coming up soon. So that's going to be helpful so that any amount of people that are there are going to have those support services. So thank you for all that you've done and I just really want to um speak to my community that I've been working hard on trying to make sure that none of the pieces fall by the wayside and as well extending myself as an individual to help wherever I can. And if that's job placement or meeting with people or making the meeting with, you know, the chief of ocean safety and you guys, I mean, I want to do anything I can to help this project succeed because I do think that it's going to be a great lift because, you know, that little beach area by Lani Kuhonua unfortunately is not as nice as what we would like it and I think this is going to improve that. So, anything that can pro improve family access and local families coming to the area, it's going to be good. So, thank you so much um for your presentation and thank you to everyone involved, the Kobayashi's com Campbell Land Company, um the Peters uh communications. So, I appreciate you guys meeting with me and staying in contact. Thank you, Chair. >> Thank you, Council Member. Uh members, are there any other questions? >> Chair, >> Council Member Cordderero. >> Thank you very much, Chair. Um Hi, Mr. Carris. Thank you very much for your presentation. Uh I have one question as it relates to what the archaeological monitoring plan will look like. I know that's u mainly to ship D uh because but because it is a coastal and going to be a highly utilized uh parcels and properties uh what would what would that um monitoring look like yearly u every five years? >> Yeah, thanks council member. Um, so just to just to help the public understand, I know Council Member Rakia Aa introduced it when she spoke to the um the CD1 and the amendments that relate to the archaeological monitoring program. So the identified archaeological site is right on the point um so if you're if you're online or you're looking at our site plan, it's um between building six and that point all the way jutting out. Um and so there that's the existing known site. Um there's going to be a permanent 30foot buffer around it. There is an existing buffer now. Um but what we're calling for is we're actually going to put that on title and so that'll stay with the property forever. Um does that answer your question? Um and I guess yeah, speaking to during construction, um obviously having active monitoring on a daily basis during construction. Um and then um you know having any now that we know the um like I said the the site the identified site on the point is um there's going to be a permanent buffer in place that'll be monitored. >> Thank you. And it's great to hear that you're going to be adding it to the title uh so it runs with the land. U my next question uh really quickly is uh relating to with the new venue plus public act public beach access and then in addition to that all the new businesses that will be there. I know that you presented to uh me and my team about um changing the uh parking lot layout and how many vehicles that can come in. Uh so how do you anticipate uh balancing both having the venue plus the businesses and public beach access all operating within that that area? >> No, it's a great question. Um and so you know let me go actually let me go back to the site plan. So, I think the first key feature is the amphitheater itself and the performing arts venue. Um, we're downsizing it significantly. So, for example, today the current site can house 1,200 guests a night. Um, this site is much it's a much smaller footprint and a much smaller attendance. So, in our EIS, we disclose that the max attendance would be 650 guests. Realistically, it's the way it's built is for like 3 to 400ish. And so that's, you know, immediately impact is that you're decreasing, you know, the nightly attendance by 800 or 2/3 of attendees. So that there's be fewer cars coming in. And then obviously we're we want people to come and enjoy the property, to dine, enjoy the retail, and other cultural offerings. Um and so net net um our TI um saw like no really no change in baseline assumptions for trips um given that the significant reduction in the amphitheater. >> Thank you. And my very last question is I know that we talked about a access from the other properties within Coalina uh whether it be shuttlewise and um have you started conversations with the other properties uh to then um u I guess >> yeah I mean multimmodal transportation is has is a huge part of not only our traffic plan but our parking management strategies. Um we haven't had conversations yet. Um we think it's a little premature because we haven't gotten into the actual programming. Um, but once we do, I mean, we would love to have discussions with the other hotel operators in there about shuttle services. Um, right now the closest hotel, which is the Four Seasons at Coalina, it's about a 5 to 10 minute walk, depending on how fast you walk. >> Okay. Thank you very much. Thank you, chair. Thank you, uh, Council Roimoto. Thank you, chair. Hello and good morning. I want to thank you again for meeting with my team as well. Um the questions I had a small one just in connection with what council member Tupola asked and you mentioned that the jobs um that currently exist in the the property are about 260. Is that what I >> It's uh just over two uh 210 employees I believe >> and and on your in your presentation you you do have significant job creation. What numbers are we looking at for possible opportunities with the new with the new project and development? So our economic study which was based on the which is based on our site plan and our assumptions of you know three restaurants the new the new um luau operation nightly show and um cultural offerings as well is just over 500 um full-time equivalent jobs. >> That's really great to hear. And is the plan like council member Tupola asked to have um kind of first right to those who are already employees existing and then open up further. Is that the plan? Well, we've made a commitment um and granted these are the operators coming in are are going to be tenants of ours. Um but we have made a commitment that in terms of opportunity that that opportunity will be given to them first. >> Okay. Thank you. And final question just related to the beach access. I know I shared with you that this is a place that I've taken my kids >> from when they were young and there's a tiny access um that we use. How does the project impact that access and and the beach usage as well? >> Yeah. So I'll just go to the mahalo slide just to gives a nice aerial of the of the existing site. And so the the access council member Okimoto is talking about is easement that was created by us between Lan Kohanua um and the Paradise Cove property. The easement actually splits the property lines. Um we're m we're going to maintain that easement. Um we're also maintaining the 15 parking stalls that are free to the public and open 24 hours a day. And there's also a lateral easement running along the shoreline. Um really I think the with us taking back the property and being able to manage it ourselves, you're going to see actually a you know more maintenance of that resource. Um the big difference though just want to highlight as opposed to the Coalina CEO is that our our cove is actually it's not ours. It's it's that's public land and public property and so our commitment is to provide the access and to the extent we can maintain it and keep it clean. Um but yeah, to your point it is a public beach. >> Oh, thank you. And I I know you mentioned the 15 stalls. Whenever I've been there, it's coveted to try and get a stall inside there, but I am happy to hear that you're going to still have allow access and and that the beach will be accessible to the public. I'm looking forward to what council member Dupola's um talked about with more safety precautions with the the EMS um hub being in Coalina. But thank you so much and thank you for being thorough in your presentation. Thank you, chair. >> Uh thank you, council member. Um if there are no other questions we're going to uh >> chair just a quick question >> uh council member wire >> malo and appreciate the project and all the stakeholders yeah no in-depth questions but just giving that conversation I was just curious so is the comfort station where it says restroom or is it the Holly building in the other map? >> Yeah. Um thank you council member. Yeah, so the comfort station um will be the there'll be a rest there'll be men's and women's restrooms. Um it's in the sorry it's it'll be in what's called uh on plan building three. Um so that's that gray the left hand side gray gray part of the building and so that's men's women's plus showers and foot washing stations. >> Okay. Thank you. >> Thank you council member. Before I call up the administration I would like to take public testimony proceeding first with inperson testimony. Clerks, do we have any inperson testifiers? >> Chair, we have a few standing by you. When I call your name, please come forward to the testifier podium and begin by stating your name for the record. Please conclude your remarks promptly when you hear the buzz of the timer. The first testifier is Peter Ganaban. Aloha, Chair, Chair Waters, and members of the committee. My name is Peter Gonaban, business manager and secretary charge of the labors union international union of local 36 state representing more than 5,000 members statewide. We're in strong support of the resolution 25-207 granting a special management area major permit for the cove project in Corina. The cove will create 870 construction jobs and 500 long-term jobs providing real opportunities for the local workers. Importantly, our union members and retirees are also investors in this project through their benefit funds. That means that the coal not only build jobs but also help secure the retirement of working families, keeping revenue right here in Hawaii. This project represents thoughtful growth, entertainment, dining, and retail spaces that will serve both residents and visitors while strengthening our local economy. On behalf of the local 368, I respectfully urge your approval for this resolution. Thank you. >> Thank you, Mr. Gonaban. Next, we have Justin Tanoi, followed by Trisha Taker. Hello and welcome. >> Aloha, chair and council members. My name is Justin Tanoi. I'm the executive director for the Hoy Operating Engineers Industry Stabilization Fund. Thank you for the opportunity to provide testimony. We are in strong support of the Cove Redevelopment Project. The Cove project will be great for the local community. The project creates not only a new gathering space, but also a place for people to work directly in their community. If approved, this project will create over 800 jobs in the construction phase. This includes many of our union members of the operating engineers. A big population of our members also live in the Leeward area, so it gives them an opportunity to work directly within their community. The project will also provide almost 500 full-time long-term jobs, providing lots of great opportunity for folks on the west side of Wahoo. On top of those great opportunities, this project will generate hundreds of millions for our local economy. So again, we're in strong support of this project. Thank you. The next testifier is Trisha Taka. Aloha. My name is Trisha Tequeta and I'm a proud member of the Hawaii Regional Council of Carpenters. I strongly support the Cove project because it will bring a real economic boost to our community. During construction alone, it's expected to create over 800 full-time jobs. And that's just not a number. That's hundreds of local workers like me staying busy, supporting our families, and keeping our local economy moving. Projects like this help our industry stay strong and give union workers a chance to build Hawaii the right way with quality, safety, and pride. The Cove is an example of responsible development that puts local jobs first and I hope you will support it too. Thank you. Thank you so much. The next testifier is Mark Anthony Clemente. >> Hello, Chair Kaya. Council members, Mark Anthony Clemente for the Hawaii Regional Council of Carpenters in strong support of the Cove Redevelopment Project. Uh, this project will open its doors with cultural, educational, and recreational spaces that honor Hawaiian heritage while welcoming local families and visitors alike. It's also a major boost for working people. Like it's been mentioned, over 800 jobs during construction, over 500 permanent jobs thereafter, and over $150 million in economic activity. Money that stays right here in Hawaii. This project isn't just about building new buildings. It's about creating opportunity, preserving culture, and building a future that's rooted in community. The Cove is exactly the kind of investment we need, one that blends jobs, culture, and access for local people. Thank you. >> Thank you. The next uh testifier is Pane Maya. Aloha chair, members of the council. Paneong the third um deputy political director for operating engineers local 3. Just wanted to our support for resolution 25207. You know what I'm most excited about? I'm excited about this project because it brings locals back to Coalina. Right out of college way back in 2005, I had an opportunity to work for Paradise Co as one of their account managers. Worked with Keith Harita, Roy Toko Joe. My boss was Joanne Bane. I mean it was great. And I had opportunity to see firsthand what that place did, but there wasn't a lot of locals. As I got older, I had opportunity to stay at like Alani or Kolina. And yeah, there was a lot of visitors there, but there wasn't a lot of locals. This is the opportunity to bring locals back here. Now, as we all know, right, hotels are meant to be in resort zoned areas, but that doesn't mean that locals cannot come there. This is an opportunity to for locals to come back. I'm super excited about that. I'm excited to have organizations from the community on the west side come out, do fundraisers there, do things that the visitors can take a part in. That's what Aloha is. Being able to talk with our visitors, be together, show each other what we're about here. So they they understand that it's not it's not just sun, sand, and surf. It's about people. And having people in Kolina is what we need. Um, I've also had an opportunity to talk with a lot of my relatives who still work at Paradise Cove and um, the land owners have done a great job in helping to transition them. I had a long talk with my cousin um, Jerome Perry. He talks story with him. He's like they've done a great job and they're happy about that because yeah, they need jobs and this is an opportunity for them to still work close to home which is what they want, not to have that long commute. So, we support this project. Thank you. Thank you so much. I fully agree with you with regard um about the excitement. Uh the next testifier is Anna Tuaso. >> Good morning, chair. Good morning, city council members. First of all, I just want to say thank you guys for all your hard work. Uh my name is Anna Tuyasobo. I represent operating engineers here in Hawaii. Also on four states, Utah, California, and Nevada, and Hawaii, we have 40,000 members. We have 3,200 here in Hawaii. Like what everybody said, this is a good example that Campbell State are using all union workers for this project. You know, for us, we're on the private sector, right? And the private sector, we always continue to make sure we have benefits for our families. you know the state and county yeah lucky got prevailing wage but the prevailing wage will help us with this uh private sector work but I just want to let you guys know exactly we have 70% of our membership live on the west side so this job u will provide a work for our members but um like what everybody said this is a good project we ask for your support thank you for everything that you guys a law. >> Thank you. Is there anyone else in the council chamber who would like to testify in person? >> Moving on then to remote testimony. Clerks, do we have any remote testifiers? >> Chair, we have Angela standing by. >> Angela, uh, please proceed. >> Aloha. Angela Melody Young testifying on behalf of CARES. Um, wishing to comment. It seems like a good development, Coalina. Um, and it'll uh bring jobs surely to Wai um and Capo um with uh improved development of uh the bay. Um, and so I think as long as the um, special management area permits are within the um, guidelines for coastal hazards and uh, does not uh, disturb or interfere with environmental impact. Um, then um, I like the idea. And is it going to be next to Disney Resort? Because I'm going to go there. Okay. You don't have to respond to me. That's okay. Thanks. Okay. >> Thank you, Angela. Yes, this is not an interactive. >> Um, anybody else online who would like to testify for the administration? We have Don Takiuchiuna, director of planning and permitting. >> Thank you, chair. We're supportive of the proposed CD1 and we're here for any questions. Thank you. >> Members, are there any questions for the director? If not, moving forward, the chair recommends that resolution 25-207 be amended to the hand carried CD1, OCS 2025661. Any discussion, any objections or reservations? Hearing none, the resolution has been amended to the hand carried CD1. The chair then recommends that resolution 25-207 CD1 be reported out for adoption. Any discussion? Any objections or reservations? Hearing none, so ordered. Moving on to agenda item number four for action resolution 25-236. This resolution authorizes exemptions from certain requirements relating to the La Lima Affordable Rental Housing Project proposed by La Lima Affordable Housing LLC and WPP Hawaii LLC with the approval of the Hawaii Housing Finance Development Corporation consisting of eight buildings ranging from four to six stories with surface parking on approximately 17.312 acres of land zone. AMX2 medium density apartment mixuse district located at 4,400 Capo A Parkway in Capo Alet Oahu and identified as tax map key 91015081. Members, we have a posted we have posted on the agenda CD1 version of the resolution. For your information, a summary of the amendments is listed on the agenda. Essentially, the proposed posted CD1 disapproves the project and all exemptions under the 2011H process. We have also distributed a handcarried CD1 OCS 2025666, which is the same as the res the original resolution, but deletes exemption 12 relating to waiver of the project's park dedication requirements. I will explain the rationale for this amendment a little later. Members, as you are likely aware, Act 294 2025, which Governor Green signed into law on July 3rd, 2025, stipulates that when reviewing affordable housing projects under HRS 2011H38, county legislative bodies are prohibited from imposing stricter conditions than the Hawaii Housing Finance and Development Corporation, stricter area meeting income requirements, or reduction in fee waiverss that will increase the cost of a project. Essentially, Act 20294 purports to limit the Honolulu City Council to an up or down vote with no ability to modify the 2011 projects exemptions and conditions. Council Chair Waters and I have actively opposed Act 294, sending written testimony to the state legislature, the governor, and the Hawaii Housing Finance and Development Corporation. The amendments made to HRS 2011H38 under act 294 undermine the important role of the counties to ensure responsible and safe development, eliminate the value of public input, tie the hands of counties that choose to address affordability and community impacts, and may ultimately result in disapproval of 2011 projects, there thereby defeating the primary purpose of HRS 2011H38 to create more affordable housing. The 2011H process prior to Act 294 worked with the corporation primarily focusing on overseeing affordable housing financing and development across Hawaii and the county legislative bodies and executive branch agencies having the kana or responsibility to implement land use zoning planning and development standards and ensure the quality and safety of proposed projects. The project was being considered by the corporation's board of directors when act 294 went into effect. We have been working with the corporation staff to modify and adjust the exemptions or deferrals consistent with council policy and to add conditions of approval recommended by the department of planning and permitting. What we found is that the new process called for by act 294 is extremely inefficient, requires a lot of back and forth among multiple parties, worsening the potential for misunderstanding and confusion, has actually increase the processing time for 2011 projects, and has ultimately created a lot more work not only for the council but for everyone involved. In short, Act 294 is bad law and we plan to seek a repeal of this law at the next legislative session and ask for your support. Getting back to the La Lima 2011H project after all of that effort, unfortunately, what the corporation's board approval was not what we had proposed. The original for action considered by the corporation's board included a waiver of park dedication requirements and a waiver of EBA traffic and roadway impact fees for all of the project 750 units. At its meeting on August 14th, the board approved a verbal amendment to delete the waiver of EVA impact fees but approved the waiver of park dedication requirements. For this reason and due to other considerations, I proposed a post at CD1, which initially disapproved of the project and all of its exemptions. Subsequently, the applicant agreed to delete the waiver of the project's park dedication requirements, and I proposed a hand carried CD1, which would approve the project's exemptions without the park dedication waiver. There are still some other concerns which will be discussed in today's committee meeting, but I will now move on to discuss the project itself. The project is part of the 516 acre Capo West master plan development which includes 2,370 resident residential units, 2 acre neighborhood board neighborhood commercial centers, 23 regional commercial, 23 acre regional commercial center, a golf course, and approximately 15 acres of park space. Ordinance 827 approved a zone change for this development and the project is the initial component and the project today is the initial component of the overall development intended to fulfill the affordable housing requirement under the unilateral agreement for ordinance 827. The applicant plans to submit the project zoning lot to a condominium property regime to create four condominium units, one for each of the project phases. Each condominium unit will be owned by a special purpose entity related to the applicant primarily for financing and tax purposes. As proposed, the project involves the development of 750 apartment dwelling units, six studio, 248 one-bedroom, 3302bs, and 166 3-bedroom units in four phases. two buildings with 236 units in phase one, three buildings with 264 units in phase two, two buildings with 180 units in phase three, and one building with 70 units in phase 4. All units will be rented to households earning 120% or below of the area median income for Honolulu with 250 units rented to households earning 60% or below of the AMI and 500 units rented to households earning 120% of the AMI. The rental units will remain affordable at these AM AMI levels in perpetuity as proposed. The project also involves a multi-purpose recreation room pool, approximately 212,714 square feet of common areas and amenities, approximately 173,880 square ft of open space at grade surfing parking with surface parking with approximately 1,036 vehicle parking spaces and long-term and short-term bicycle parking and storage spaces. The resolution approves exemptions or deferrals from this from city fees and charges and exemptions from certain land use ordinance requirements. The resolution also includes conditions of approval recommended by the department of planning and permitting relating to transportation and traffic, project vehicle access points and driveways, and to provide better delineation of walking, bicycling, and vehicle connections to support walking and bicycling. for wastewater system facility charges. The applicant requested a waiver from the charges attributed to 750 affordable units rented to households earning 120% or below of the area medium income consistent with resolution 20-62 FD1 which provides for council policy guidelines when authorizing exemptions from the payment of wastewater system facility charges and park dedication requirements for 2011H projects. The CD1 version of the resolution waves the the wastewater system facility charges attributed to 250 affordable units rented to households earning 60% or below of the AMI and provides for a deferral from the charges attributed to 500 affordable units rented to households earning 120% of the area B minimum income until the issuance of the project certificate of occupancy for each project phase for the charges. associated with that phase. The applicant requested and the resolution approves an exemption from land use ordinance bicycle parking requirements to allow the project to provide 45 short-term and 160 long-term bicycle parking spaces. Since the project is the first increment of the 516 acre Cup West MA master plan development, while the project may not immediately result in a large number of bicyclists, it is anticipated that when the development is fully built out, the entire area will include a vibrant multimodal transportation network with a potential increase in the number of bicycle riders. Condition F accounts for this possible increase in bicyclists by providing that if there is a demand for additional bicycle parking spaces after the Capo West master plan development is fully built out, the applicant is required to provide additional bicycle parking spaces up to the required 75 short-term and 375 long-term spaces. As I mentioned earlier, the proposed handcarried CD1 version of the resolution does not include an exemption from park dedication requirements because it is not needed. The unilateral agreement for ordinance 827 required a master park plan agreement to satisfy the development's park requirements which was accepted by the department of parks and recreation on May 12th, 2022 and which includes a dedication of 10 acre community park and a 5 acre neighborhood park for the overall master plan development. The resolution also does not include an exemption from the payment of EVA traffic and road wreck impact fees. Roadway impact fees. EVA impact fees are imposed on new land development and fund a prorated share of the cost of traffic and roadway improvements in the broader EVA region under the EVA highway master plan. The EVA impact fees are intended to recover only a portion of the governmental expenditures related to growth in the EVA region. Under RO33A1-1.7D, funds collected as EVA impact fees are made available to either the state for state highway or traffic improvements or the city for city highway or traffic improvements. So, a portion of the EVA impact fees attributed to the project will likely be allocated to the state. While the Capo West Master Plan Development is a party to the master cap highway agreement dated June 1st, 2010, which is which is a Hawaii Department of Transportation program focusing on the construction of the H1 Freeway Capo interchange complex in four phases. This agreement does not account for the EVA impact fees attributed to the project's dwelling units. While internal roads within the project site will be maintained at the expense of the four condominium units as a common element and will not be dedicated to the city, there are planned improvements to city and state roads in the vicinity of the project site, including the future extension of Capo Alet Parkway to the west of the project site. Note that in lie of paying the project's assessed portion of the EVA impact fees, the applicant may elect to construct all or or a portion of one of the highway improvements listed in the EVA highway master plan. Joining us in the council chamber representing the applicant is Kip Shepard for La Lima, Hawaii, who will be providing a brief presentation. For your information, the presentation is available online as miscellaneous communication 441 2025. >> Okay. And this is I think there's none. >> Aloha, Chair Kiana, Vice Chair Waters, and members of the committee. Um uh grateful for the opportunity to be able to present to you today La Lima affordable housing the project and its merits. Um with me today uh we have uh I I'm my name is Kip Shepard. I'm the CEO of Lima Affordable Housing. I have Jackson Shepard with me today as well who is the president of La Lima affordable housing. Also Kana Park who's representing the master plan developer. um wanted to first and foremost thank uh the committee uh for their efforts over the last few weeks and also thank HHFDC um and their staff are also working um as as diligent as we could. Um uh Chair Kiana referenced that it's it's been somewhat disjointed and we recognize that and we're grateful for your efforts to help us through that. Thank you very much. Um, quickly regarding our project, uh, want to just mention a few things. Um, make sure I know how to do this. There we go. Uh, just quickly, the project location, um, located uh, just right next door to Capo Commons. Also the other side of the boundary being the Coalina development itself. and um super excited uh with what was presented today um regarding Coalina and what's going to take place there. Uh we're excited because we feel like our 750 units can certainly help in housing uh the great uh employment opportunities that will be created by that project. Um so we're excited about that synergy that that will take place. the location of the project. We're also very very excited about directly located next door to COP Commons and all the retail opportunities that are there for our residents at Target and uh TJ Maxx and others. Um directly across the street from COP a Commons, we will be the master plan developer will be developing um that retail site as well with a a grocery store as an anchor. We are in conversations with a letter of intent right now with a grocery store um uh provider. Um I'm not able to share that name with you right now, but we're very excited about that and what's going to take place there and the proximity of that to our our residents as well. Um also excited about the location from the standpoint that State Harbor Access Road is currently being is under construction to add an off-ramp and an on-ramp. um with that uh due to be completed and and and in operation in in uh February with at least with parts of it uh being in operation and then shortly thereafter having both ramps uh available. Um we feel like that will uh greatly positively impact the traffic uh that's in the area. Um the chair uh actually went through uh this much of the detail of our project. So, I don't want to be redundant here. Um, I I did want to point out though, uh, here's a site plan that shows our our property that would once again, if you go back to the location, the dark area there is the 17.3 acres that we're speaking of. That will be the 750 units. And then coming back to this one, this is that site right there, the green, the dark green. Um, and even though we have the four phases of the project, uh, phases one, two, three, and four, they weren't intended to be chronological in terms of when we would develop those. We're going to develop each phase as the financing comes into place. Um and so we're we're hoping that uh maybe with a a positive response from the committee today um that that we can begin uh construction on on the 70 unit senior community that just received on August 14th an allocation from HHFDC of federal state as federal low-inccome housing tax credits, state low-inccome housing tax credits, and also an allocation from the rental housing revolving fund. This is just another rendering of that uh site, kind of a 3D version of it to to show to you. You can see that um the site is a fairly tight site with the parking. Um our project was uh ranked number one by HHFTC in terms of the scoring matrix. Um and that includes a lot of efficiencies um cost efficiencies and other efficiencies that enable our project to be the number one scoring project and the best use of public resources. Um because the site is so tight uh and these are the exemptions that I'll come back to that slide in just a moment. But because the site is so tight, the master plan developer has agreed to build an additional 5 acre park directly across the street to provide more open space for our our residents. Uh the exemptions this I apologize the slide is very small and difficult to read. Um but these are the list of the exemptions. Um we we had very small request um exemptions for the the zoning side of this. Um the chair mentioned those in her um narrative of the project. U most of the exemptions that we did request were uh regarding the financial feasibility of the project and be able to move them forward that way. Just to close um and then open it up for questions. um wanted to once again thank the committee and and uh uh thank them for their their efforts uh to communicate with us over the last few weeks and especially over the last few days. Uh we respectfully ask the committee to approve our 2011H application through resolution 25-236 with the amended CDI that was submitted by chair Kiaina which um approves the project and deletes exemption 12. Um deleting the parks dedication fee has no financial impact on La Lima affordable housing because of the master parks agreement that's in place with the master plan developer. Uh, thank you very much and uh, if you have questions, we're we're here to answer those. >> Members, are there any questions for Mr. Shepard? >> Uh, council member Chipola, thank you so much. Thank you for being here. I appreciate it. Just to give a little background if you could. Um, when did you guys get this parcel? And prior to you, wasn't there a different developer working on this? if you could share. I mean, I want to give some history cuz this area between Capo Commons and Honoki Hale has sat um basically vacant since 2008, I believe, when it was supposed to be, you know, developed by Campbell Land and it was turned into R5. Could you share some history, please? >> Sure. We acqu uh the master plan developer acquired the property in December of 2022 and they acquired the land from uh First Oceanwide. It's a Chinese national company that was disposing of their assets across the United States. Um and they had held before that I believe that they had acquired the property either directly from the Campbell Trust or maybe there was another developer that was in the interim with that but I'm not entirely sure of that. So you're you're you are correct. It's been there for a while and once again from our perspective super excited about what we heard earlier today and then what we're proposing as well. I really think that you're seeing the vision of COP a West coming to fruition now 20ome years later. >> Yeah. And I I've worked multiple times because because it's satow. We have a lot of homeless issues. We have people breaking into the businesses. So having the land sit vacant for that long has really been a problem in the community. People have asked me multiple times why it can't be a sports park. Why can't it be fields? Because we don't want to see it sitting there. And then of course now the DOT is building the off-ramp. It makes even more sense because we're going to have another access point into Kalioa Harbor. So I think the timing is perfect. I know there were small things that we have to kind of figure out, but overall I feel like the community has wanted something to be there. And so I'm looking forward I have a few questions for HHFDC, but I'm looking forward to working with you guys to continue to make this the best that it can be. >> Thank you, >> Vice Chair Waters. Thank you. Um, good morning. My understanding I appreciate you taking the time to meet with me individually. Um, and what I understand is that you build affordable housing for a living. So my question is based on the resolution, it looks like you're going to be building 250 units at 60% AMI and below, which is great. But what's concerning is the 500 units at 120% AMI and below. There's going to be studios, onebedrooms, two bedrooms, and three bedrooms at 120% AMI and below. Is that correct? >> That's correct. What I'm looking at here is a DBED study on affordable housing from 2024 department state department of business economic development and tourism. At 120% AMI, a studio rent can go for $2,925. A one-bedroom would be $3,133. A twobedroom rent could be $3,759 and a threebedroom could rent could be $4,337. So I'm really concerned. I mean what we don't we want to we want to get local people into housing. That's our goal. But a threebedroom, if the rent is $4,337 rent, right? You're not you're not paying your mortgage at that rate. You're paying rent. What's the likelihood that you're going to be able to fill this threebedroom because according to the resolution, you're going to build 166 threebedrooms if the rent is 400 $4,337, right? I mean, of course, you can say it's up to 100 20% AMI, but the resolution says you can build them at 120. So, I mean, how does that to me that doesn't seem affordable? >> And so, I guess I specifically what what question could I answer for you? It just >> is that is that my number is accurate? I mean, are you guys going to charge $4,337 for a threebedroom That's 120% AMI. >> Um, hold on. I'm trying to make sure I have the rents correct because I I I don't you didn't class you didn't clarify exactly what household you were including those rents funds. Was it a four person household, a sixperson household? Uh, you know, those kinds of things. So, there there are some nuances here that we would need to clarify. >> Okay. Let's just say a twobedroom. >> Yeah. >> Right. That's for three people. Yeah. Let's just say three people >> at at 120% AMI. >> At 120% AMI, I still get $3,759 in rent. >> And I I don't believe that we're underwriting it to 3750 at this >> Well, I guess the better question is what's the rent going to be >> for a threebedroom? >> I'm trying to pull that up real quick so I I could I can give you accurate information. Okay. By the way, chair, I'm gonna support you and the proposed handcarried CD. I just think we should flesh out these types of issues so that people know what what and putting basically I'm putting you on the spot, right? We want you to provide affordable housing to local people so they don't have to move to the mainland and can live, work, and play in the community that they grew up in. That's why I'm asking these questions just to be clear. >> Understood. And and you're not putting them on this on the spot. That's that's a that's a very reasonable question. I'm just trying to grab that information really quick so I can make sure I I give you an accurate answer. >> Okay. Fantastic. Vice Chair Waters, that's actually a fair question. We should be asking these questions. Yep. So, >> that Thank you. >> I apologize. I thought I had that right at my fingertips. I'm looking through all my papers and but we are going to pull it up here really really quick. Okay. It would be right now we're proposing that for the 120% AMI units and and and what you said uh uh council member Waters is is is accurate too and and in the phasing of the project we're you know we're we're looking at this from the standpoint of trying to understand where where the current market is and then where that AMI rent restriction is and then obviously we need to be able to rent up the units as as well as as you just mentioned. But the rents that would be allowed under the 120% AMI for a studio would be up up to $2,900 for a onebedroom would be up to 30 3,150 for a twobedroom up to 3,700 and for a a threebedroom up to 3,900. >> Okay. Thank you. Thank you, chair. >> So, I just wanted to follow up on that question, Z. So the question is that's what you can charge up to, but have you made a determination yet on what the charge will be? >> Uh we we've not not entirely because we're we're trying to see where the market is and making sure that we can lease up a community as well. Um >> got it. And and I'm going to talk about this a little later, but I just need to contextualize for the members here >> that this is not a freestanding 2011H affordable housing project where you have to figure out about penciling out the numbers. The fact of the matter is this was a requirement for the larger master plan development and uh a requirement under the unilateral agreement. And so the four market uh units that will comprise the other the 2400 total, right? So 2400 minus 750 was supposed to be subsidizing this affordable housing project. So the only reason I'm saying this is I'm just asking that you consider that when you charge the rate. So we all know what the law is and what you can do up to, but we're asking you to uh uh make it affordable for for the local residents out there. Uh uh do you have anything to say to that? >> No, I I I appreciate your your comments. Thank you very much. But also though um as you mentioned this is the unilateral agreement requirement. Um it it um I affordable housing is a in at the end of the at the end of the day in terms of being able to make it financially feasibility feas feasible is a math problem and it's a math problem because your rents are restricted. So as long as you're able to achieve those maximum allowed rents the math gets really simple. When you're not able to achieve those maximum allowed rents, the math the math starts to to fluctuate. But when you start adding in components like land cost and construction costs, which I think everyone in in this room would agree are extremely high in the state of Hawaii compared to the the the rest of the of the of the country where they're deriving these area median income rents from. Um it makes it really really difficult to be able to provide the affordable housing because we're not able to go back to our tenants and say to them we have to increase your rent by $500 a month because you know because uh con construction materials have the inflation has gone way up and it's become just much much more difficult. So, I understand the concern about the affordability of of 120% AMI. Um, but at the same time, if if the question is could we lower that affordability, we can only lower that affordability if there's other financial resources available to cover the gap. Um, and that that's what once again it becomes a math problem. >> Council Polo, thank you. Um, I just want to say first off, I do agree with everything that council member Waters said about us trying to fight for affordability, but for context, I've watched developer after developer walk away from that parcel of land. And the reason why is because all of Kalioa still doesn't have good infrastructure. We barely just pulled a HEO line down into Kioa after all these years so people could hook up their electric. So, I'm saying this because that parcel of land is not a good one. It has no uh wastewater. It has no type of like infrastructure that people have ever wanted to. In fact, across the street, the Mala side, that's also up for bid. Nobody wants it. >> Yeah. >> Nobody wants to build there because there's no way somebody's going to drop money on building all the sewer, building all the wastewater, building all the heo, so they just walk away from it. So, I know that it's difficult. I wish, you know, that we could have like subsidized it if it was city land, but we don't own that. It's owned by Campbell Land Company. The only parcel right now in Capo that makes sense, and I've talked to Sher Waters about this, is the one right next to the Kobayashi's project in between the courthouse and them because the city owns it. So, we could possibly subsidize the land costs so that we can bring the whole cost of the project down. And for clarity, there are plenty projects in Capo that are as expensive as what you're proposing. That's not what I want. But couple a loss is bidding at this right now at this price. This is not what we want. So I think on the city side, the only thing we can help with, which is why I got on the phone with you guys in HHFDC, we got to apply for um grants. We got to apply for HHFDC money so we can bring all the costs down so that we can bring this AMI down. So I thank HHFDC, specifically Cameron, for getting on the phone with me, talking about you guys applying for DURF so that we don't have to ask for more exemptions. So, I know what it equals. I just think that parcel of land, to be honest, is a lose-lose. So, good luck. But I'm just saying I'm just saying I've watched parcels of land try to get built like in Kalioa. It's extremely difficult when you're building on a parcel of land that has nothing out there. So, I hope that we can find that middle ground and that's what this discussion is about. But, we need to move forward. I'm reading this 2008 bill. It was bill 47 that switched the zoning for that parcel. So many people um spoke in uh support of the zone change which is interesting because a lot of people don't want to see zone changes. This one everyone wanted to see because they wanted housing over there. So I think it's one of the very few parcels that nobody was like no keep it at. They were like can you build something please like in this area we have all of Campbell Industrial. I'm sure people who work in Campbell would rather live right there and drive to Campbell instead of all the way in white and I so I I'm saying I'm not trying to defend you. I'm just saying that this parcel of land unfortunately doesn't have a lot. We need more affordable housing for sure. So, let's find a way to get there. Whatever grants we can, I'll help you guys apply for it. Whatever city funds are available because we need to bring those prices down. Thank you, Chair. Thank you, >> Council Member Tupa. Thank you for saying that. I I I wanted to just add >> um Chair Kiana, that that what she just said is much better for her to say that than to me. I did not want to offend anyone in in the room about the you know the the fact that the infrastructure has been lacking there and so I I appreciate those comments. Thank you. >> Thank you council member doans. >> Thank you. I want to return to this question of what the rents are and I understand that the um rents are set based on these HUD amounts and and set by HHFDC's policies. Now, I'm sure you guys have done a market rent study to understand the rents in the area. >> Yeah. >> How do these proposed rents fit with the area market rents that are already being charged? >> Yeah. So, um my name is Jackson Shepard. Um when we're obviously, uh designing and um developing a community, uh we have to design and develop what's uh financially feasible. And part of that is like like you said what rents you can um charge. Uh we ordered a um rent study a market study and uh even though the rents are restricted to 120% AMI and below market really is between 95 and 105% of rent in capital A. And then even further you look at projects like element and cap a loss just down the road um which are charging actually 120 125%. They're much higher than ours and the offering that we have. Um, you know, I think we'll, uh, you know, rent's a moving target and you have lease up and stuff like that, but realistically, the rents we'll charge will be between 90 95% of AMI. >> So, I I think that's a critical point here to understand. So, just for, this may seem like a silly question, but if you're allowed to charge up to 120, but the market is only between 90 and 100, if you were to charge 120, would you lease up? >> Nobody would come to our apartments. No. >> Got they'd be up the street at Capway loss. >> And I would add to that um part of the feasibility of a project is the funds available. Um we would we build low-inccome housing for a living. That's that's what we do. I would love to make all these bond or 9% projects. They're just it's very competitive. Um very grateful to ATFCC. You know, this is our first time submitting an application >> in in Hawaii >> in Hawaii. um in 20 years he built Palua Terrace one and two um 20 25 years ago. Um and to get 9% credits first time I think speaks very highly of the you know the project itself the the Malita specifically the senior project and um if there were more funds available uh we are a missiondriven company. We'd like to make more affordable apartments. There's just simply just not enough funds um to go around and there's other developers vying for those funds. >> Members, before we call up Thank you. Before we call the administration, I'd like to take public testimony. Proceeding first with in-person testimony in the council chamber. Clerks, do we have any in-person testifiers for this item? >> Chair, we have a few standing by. >> When I call your name, please come forward to the testifier podium and begin by stating your name. Please conclude your remarks promptly when you hear the buzz of the timer. The first testifier is Peter Gonaban. Hello, Chair Kina, Vice Chair Waters, and members of the committee. My name is Peter Gonaban, business manager of the SEC and secretary charge of the Hawaii Labor Union Local 368, representing over 5,000 members statewide. We're in here. We are here in support of resolution 25-236. The 750 unit development directly addresses a critical housing shortage in West Aahu will provide home for the very people who are keeping our communities running. Construction workers, teachers, first responders and restaurant staff and business employees in Kunas. La Lima is a smart growth in strengthening the local economy, supports working families, and represents the first step in building a more resilient future for West Aahu. On behalf of Local 368, I respectfully urge you to approve this resolution. Thank you and mahalo. >> Thank you so much. The next testifier is Mark Anthony Clemente. Okay, if we're going to move on, I don't see Mark here. It would be Anna Tuiso. Okay, good morning chair. Um, first of all, introduce my my name is an So I represent operating engineers local 3. I also represent the alliance. I'm the president for the alliance for the labors, the masons and the brick layers uh with this project. just listening to you guys about affordable. Yeah. You know, that's why I'm here to support this project. They're going to use all union. And to me, I'm going to tell you the truth. The only way our people can survive here in Hawaii is union jobs. You know, every year it's sad when I hear people moving away to the mainland because they cannot afford. The only people that can't afford all these houses is the mostly all our union members because you know why? We have wages every year that increases and that's the reason why I think you know you guys need to support this project. I thank these guys for La Lima. It's going to be a 20-year project. I have my kids working in the union. Hopefully one day, you know, with this 20 year project, my grandchildren will be here. And I'm just tired of our people leaving Hawaii because they cannot afford living here. But this job will provide our work and this job is going to be provide union jobs. And thank you. >> Thank you so much. Is there anyone else in the chamber who would like to testify in person? Seeing none, clerks, do we have any um testifiers uh via remote? >> Chair, we have Angela standing by. >> Angela, please proceed. >> Aloha. Angela Melody, I'm testifying on behalf of CARES. So as an agent in training and of course I went to Abley class. Um so I think because you know the two council members that did the workshop with Ale if there's questions you should ask him because he's a really amazing developer. But what I think after learning everything is developer developers have to pencil in because why would they sell more at a lower market rate and make less income? So, for example, why would I sell that at swap meat when I can sell at Hilton Hawaiian Village because Hilton has free booths for the farmers market when my customer base is going to be elevated to a higher income class? So unless the federal government wants to provide subsidized loans and subsidies for down payment loans um for helping lower income uh demographics, then I think this is uh the rationale to developers having to create um more units at a higher uh income class. So I I do like this project though. Thank you. Is there anyone else who would like to uh testify remotely? Seeing none for the administration, we have uh Don uh Takiuchiuna, director of planning and permitting. >> Thank you, chair. We're supportive of the hand carried CD1 and we're here for any questions. Thank you >> members. Are there any questions for the director? Uh council member Tupola. >> Hi, director. Quick question. And so the whole area is larger than where they're building. Isn't the master agreement with the whole area or is the master agreement just with that that small parcel? >> The master agreement under the UA it's a larger area. >> It's a larger area. Is the park dedication the one that's closer to Honokai? Cuz in the map there's one that's closer like kind of more white side but this one is going to be more like towards Cabo Commons. >> Um isn't the UA written that that is the park dedication? the one that's up by Honukai um Halle Park whether it matches. >> No, no, it doesn't have to match. It's just that >> that's in my mind that's where the park dedication was required in the UA, >> right? >> So them building a park where their section is that doesn't need to have a park dedication, right? I'm not saying I'm changing the bill. I'm just trying to like verbally understand like isn't that other one not part of the UA that has to be required to have a park dedication? So I think that is part of the overall master plan for the entire area. Um not specific to the this project. Lynn, do you want to I I have asking a real specific question. >> Yes. So I'll have planner Lin Wong explain more specific. >> This was like years ago that we talked about this. In fact, it was Kim Pine that was mainly talking a lot about this. >> Hi, I'm Lin Wong. Good afternoon. As far as your question is concerned, I believe you're talking about the park master plan that was approved back in 2012. >> Yeah. >> Yes. The park master plan show an existing 5 acre park. I don't remember the name. And then the proposed parks as part of this larger development is supposed to be 10 more acres and five acres for the down. This latest addition is not part of the park master plan that was approved for the UA. So, it's an addition, I guess you could say. >> Yeah, that was my question because I had already known that there was going to be a park dedication in the other area. And I'm just going to throw it out there. >> I don't need any more parks dedicated to the city that we cannot take care of. I'm going to say that because I I'm cleaning a park this Saturday. I'm cleaning another park next Saturday because there's so much parks that need to be cleaned on the west side. So, I want us to be specific, especially in the UAS. If that is not required, we should talk about it because had I we love park spaces, we want more soccer parks, but in many of the areas where the association takes care of it, it actually looks better and is taken care of better, which is what the residents want. So, I just wanted to clarify that that this what they're going to dedicate to the city was not required per the UA, but they are going to dedicate it to the city. that is not part of the master plan that was approved back in 2012 by a previous um you know uh director department of >> yeah it's old this whole thing is old the whole conversation >> so it could be that there may have to be an amendment or of some sort but at this point to your question is to whether it's a part of the master plan no it wasn't >> yeah okay all right I know that we're moving through time and now we're on the third developer so I'm I'm sure many things have changed but thank you for the clarification ification. Thank you, chair. >> Members, are there any other questions? Uh, Chair Waters, >> thank you for DPP. Um, >> the director. >> Yeah, probably the director would be better. So, director, and I'll ask the same question of HHFDC. So I'm looking at page one, paragraph two of the resolution, which reads, "Whereas the project is part of a 560 16 acre Capo West master plan development which includes 2,370 residential units. So my question to you is under DPP's rules and HHFDC rules 2011H requires 50% of the units to be affordable. Isn't that correct? >> Um I believe so. >> So why then aren't we getting 1,185 units that are affordable rather than only 750 units? >> Um yeah. Yeah, it's a 2011H. >> Yeah, 50%. >> Yeah, we're we're only applying for the 2011H on the 17.1 acre LA3 parcel. >> I mean, clearly. So, you're decoupling this project from the master planned development of 2,370 units. >> Uh, correct. We're we're buying the land, >> but then you're coupling it together to satisfy the unilateral agreement, right? >> Correct. Yeah. >> I mean, back to DPP. I mean, it's in the resolution. I introduced it, but I didn't write it. >> In the resolution, it says this is a part of 2,370 units, a master fan development. So, how do you decouple it when it's part of a master planned development? >> Um, you know, we go every time uh there's a unilateral agreement agreed to or >> I actually I'm so sorry to cut you off. I don't think this is a question for you. This is a question for DPP and or HHFDC who have their own internal rules. I'm curious how you not follow your own rules. And again, chair, I'm going to vote up on this, right? And especially since the area representative is up on this, but these are questions that I think need to be answered so that we can understand going forward how this all works because my understanding is under your own rules, 50% need to be affordable to qualify for the exemptions. Right. >> Right. Um, I don't know if it's necessarily a decoupling. I think it might be that there aren't necessarily restrictions when the there two different when you have the UA versus the 2NH requirements and then the affordable housing uh requirements. Now, that's not the best answer, but um >> I'm actually less concerned about the waiver of the fees, which 2011H does. I get that. To me, it's the LITC financing that's important because there's so many affordable housing projects that are denied LITC financing because we just don't have enough of it. Right. To me, that that's the bigger issue. and and at the appropriate time, chair, I'll ask HHFDC that question. >> Are there any other uh questions uh for the director? >> Yes, chair. >> Uh council wire. >> Mahalo, chair. Um thank you. And then I also have questions for the developer, but I can ask when it's appropriate, so I'll defer to you. Um Mer director, I just wanted to talk to because I think some really good feedback came up today. about just the cost of rent and it comes up a whole lot in the community too like folks just feel like well you're building housing it's not accessible. Um could you maybe walk through like just high level where the HHFDC requirements come from in terms of AMI, right? That's an income level and then a rent amount. um how that's set based on the income level and what it includes if that makes sense. So because I'm trying to walk through and think from my understanding, you know, you have the income level, then the rent limit is generally set at like 30% of the income and then does that also include utilities and and whatnot? >> So I I would defer to HHFDC to provide that information. I think they're here. So >> okay I'll defer to chair if you want me to ask in no >> first can we uh finish the questions for DPP because are we finished with DPP? Any other questions for DPP? >> I did chair the the one question I had was what was the requirement under the unilateral agreement in terms of the housing? Does DPP have that information? Just need to push the on button. >> Hi, this is Lynn again. As far as the UA condition is concerned, as part of the larger approval 0827, the UA condition relating to affordable housing requires that 30% of the total units be affordable to 120% below based on 2400 that was previously approved. Then you'll have to give 20% to 30 uh to 120% AMI and 10% to 80% AMI. And of that five uh 50 of it percent of it has to be for rental. That's the generic. There's a certain amount. Yes. >> Mahalo. Appreciate that. Thank you. >> Sorry. >> Thank you. >> Thank you members. We do have HHFDC in the audience. uh or is there interest HHFDC along can you introduce yourself? >> Good afternoon chair, vice chair. I'm Demani, executive director of the Hawaii Housing Finance and Development Corporation. Thank you for hearing this resolution today. Um I'll just make a few comments that last week on August 14th, HHFDC board of directors voted to approve the tone application for this project. You've heard the the summary, so I won't go over that. I'll also note that at the same meeting, the board also approved LITC financing for a 70 unit phase of this project. And that LITC financing will provide about $25 million in state and federal LITC equity, also a $6 million loan from the rental housing revolving fund. And so for all like, as you are probably aware, for these LITC units, they will all be at 30 to 60% of area median income. Uh also want to note that this project is bringing in a private investor which is very important. You know we don't see a lot of projects coming in that bring in private equity and this this investors bring in $97 million which is which is huge. That's a lot of capital coming into Hawaii. And just want to note also that the Hawaii housing planning study estimates that for Honolulu there's a shortfall of 25,000 units. So this project will help to fill that gap which is why we are strongly supportive of the project. >> Thank you so much. Members questions. Council member Tupola. >> Thank you so much. Aloha Mr. Makami. Thank you for attending our meeting. Um I was able to work with uh your staff member as well as uh the developers regarding the traffic impact study. you know, they did want an exemption on it, but for my community, because we have so many new projects, like we need the traffic study because then we can determine if a new light needs to happen, if a crosswalk needs to happen. There's a lot of safety issues and a lot of these new ones that have popped up as far as like the infrastructure. So, I thank you for working with me on that. And um I just wanted to ask a brief question. I'm hoping that they can apply for a DURF so that we can still get the study paid for so that no costs go up. Do you think that'd be a possibility? they can apply for durf. Um but you know I think um derf is typically an interim loan so it must be paid back after the construction period. So I heard the conversation about rents that is something that we of course are very concerned about also. We want to make sure that um projects are affordable to local households but it's a comes down to a matter of balancing the cost of development with the revenue to support that development. And because we have some of the highest costs in the nation and also relatively lower incomes in other parts of the country, it becomes really hard for projects to provide units at you know affordable levels. So unfortunately you know they have to charge at you know higher AMI levels to make the project work financially. >> So we will work with you hopefully on the derf. My other question is, does the liatech uh funding um restrict ownership? Is that why it's all rentals? Is there any type of funding you guys are giving as to the reason why everything's a rental? >> Uh there are not many financing tools for for sale projects right now. Um the tool on each project the exemptions from fees um and expediting the process is the most beneficial tool. We had proposed legislation last year which would allow the state to invest equity into for sale projects to basically lower the cost to developers which would help for sale projects but unfortunately that did not pass last year. We're going to try again this year. So you're saying that is the reason why is that the specific funding sources kind of restricted to rentals. >> Basically there are not many funding financing source financing programs to lower the cost for for sale projects. >> Understood. Thank you so much executive director. Thank you chair. Any other members? Chair Waters. >> Thank you. Uh thank you director. I really appreciate you being here. Um same question that I asked DPP. Under HHFDC rules, don't you require 50% of the of the project be affordable? And under your definition, affordable is 140% AMI. City is 120% AMI, but under your rules, you require 50%. And as as presented to the council, it says this is a part of a 2,370 residential unit project. So, I mean, I'm just using reason and common sense. It's in it's in the reszo 2,370 units of which shouldn't 50% of that be affordable? >> Yeah. Yes. Thank you for the for the question. Um, the way we view this is that this 750 unit project is an increment of that larger project. It is separate and distinct from that larger project. So the exemptions only apply to the 750 units, not the broader 2,300 units. So for the 750 unit phase or increment, you know, it meets our requirements because they're all going to be affordable. But under any project, um the the waiver only applies to the affordables, right? Say just hypothetically, there's a thousand unit project and 500 units are affordable under your rules. The waiverss only apply to the 500 that are affordable on every project. I don't see what's the difference between this project and any other project. For example, this project just being 750 units, they could have applied just to keep 375 units affordable, but they applied to keep all of the units affordable for what they're applying for. Okay, second question. Um, how many this project got LITC financing, which is great at 60% what's required is they have to build at 60% AMI and below and they are building I believe 250 units more than what they were required to under the unilateral agreement. So, I appreciate that. But how many how many applicants do you get a year for for LITC financing? >> The applications have been at record levels in recent years. Every year it's been getting higher and higher. This year we received 32 applications for LITC financing of which we can award less than 10. So, twothirds will not be awarded. And it's because one, you know, LITC must be used in conjunction with what's so called private activity bonds which are limited and also LITC is also used with the state's rental housing revolving fund which again is also a limited resource. So it's between the different financing sources that are used in conjunction with LITC that constrains how much we can award in any given year. >> Okay. Yeah, that's unfortunate. We don't have more lite tech financing, but that's controlled by the federal government. But okay, thank you for your hard work. Thank you, chair. >> Thank you, council member W. >> Thank you, chair. And and did you hear the questions posed earlier to DPP? >> Um if you can re >> Yeah, maybe if you could just walk through um you know, where the income AMI number comes from, how the rent limit is set, and what that rent limit includes. >> Sure. HUD publishes the AMI levels for each state and each county annually. So we take those those numbers and those are our published numbers. So the AMI levels the AMI incomes are set by HUD. The rent level is based on how much rent a househood could pay based on those AMI levels assuming that 30% of income is used for rent and that also includes utility allowance. So if the published maximum rent say is $3,000 that includes the rental the utility amount. So, we also require projects to do a utility study to determine, well, what's your water bill and electricity bill going to be? And that's deducted out of the maximum rent. So, that let's say that's $200. So, the maximum rent will then be up to $2,800. But again, I will say that's the maximum rent that uh a developer could charge at the various AMI levels. In many cases, the market rent is lower than, you know, the maximum 120% AMI rent. You know, as you heard the developer say in this area, the market would support maybe 90 to 105 uh AMI AMI rents. >> I appreciate that. And so just to make sure I'm understanding what I'm hearing is that there are various levels, income levels and rent limits that apply. And the assumption is that folks regardless of their income should be be being able to access housing at at no more than a third of their income. And that would be if you're 60% ami and below that would be households eligible for that versus 120 would be folks that are making substantially more. I mean in reality given the income threshold it would be like maybe two civil servants each making 75,000 if they had a kid or two. So, we're not talking about ultra wealthy folks, but just trying to make sure I understand because explaining it to the community. I think it's important to to have clarity on how the program's supposed to function, what the rent limit means, because I think, you know, if someone in the 60% AMI bracket looks at 120% AMI rent limit, they're going to be like, "Oh, that's nuts." Right. Yeah. Um, so it works two ways. One is that the AMI limit set the maximum rent, but it also sets the maximum household income a family can have to live in one of the units. So basically, no one over 120% AMI could live in this project. >> Appreciate that. Mahalo. Mahalo, chair. >> Thank you. Any more questions before I move on? >> No more questions, but I would call for the question. >> Second. So we can take a vote on this. you want to. Okay. Thank you. >> I mean, we we reserve time for discussion, but I think we're ready to vote. >> Okay. Do you have any other questions or discussion before I make my recommendation? >> No. >> The chair recommends that resolution 25-236 be amended to the hand carried CD1 OCS 2025666. Any discussion? Any objections or reservations? Hearing none, the resolution has been amended to the hand carried CD1. The chair then recommends that resolution 25-2, I'm sorry, 236 be reported out for adoption. Any discussion or any reservations? >> Reservations. >> Noting the reservations of council member Cordderero. Um, so ordered. >> Can we take a brief recess, chair? Uh yes actually I understand that the Taiwanese youth um group youth ambassadors group is uh in route here. So I was hoping um for the uhformational briefing uh as soon as they come uh 15 minutes from that time frame we will reconvene and I'm hoping if all goes that uh it would be uh the latest will be 11:45. So, I just want to let all of those who are here for anformational briefing to know the time frame, but as soon as they do come, I'd like to uh begin the presentation and then uh move forward. Thank you. [Music]