Legislative Committee Meeting Summary: 2026-01-22
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Legislative Committee on Legislative Approvals and Acquisitions - 2026-01-22
The Legislative Committee convened to review three major agenda items concerning zoning amendments, time extensions, and conditional deletions for properties in South Kohala, North Kona, and the Kona area. The committee received public testimony, heard presentations from the Planning Department and applicants, and engaged in extensive deliberation regarding housing infrastructure, land stewardship, and the validity of affordable housing credits. All three bills were forwarded to the full Council with favorable recommendations, though with amendments and noted concerns regarding long-term community impact and infrastructure capacity.
Consent Calendar
- No specific consent calendar items were read; proceedings moved directly to public testimony and legislative bills.
Public Comments & Testimony
- Derek Fukumoto testified in full support of the Lambs' appeal (Bill 119). He described the applicants as "ideal neighbors" and stewards of the land who have cleared brush to mitigate fire hazards following the Lahaina fires. He expressed that the project is a "win-win" providing housing for their son while utilizing catchment water to avoid taxing municipal infrastructure. He urged the committee to vote in favor of the request.
Discussion Items
Bill 119: Rezone Ordinance 02-93 (Oli South Kohala)
- Proposal: The applicant (Clem and Janet Lamb) requested the deletion of "Condition D" (which prohibited a second dwelling) to allow the construction of a single-family dwelling for their son. The Planning Director recommended revising the condition to allow one additional single-family dwelling unless state law explicitly authorizes Accessory Dwelling Units (ADUs) in rural districts.
- Positions & Deliberation:
- Councilmember Houston: Expressed full support, citing the family's long-standing presence in the Waimea community and the need to keep families in the community given rising housing costs. He raised concerns broadly about water infrastructure limitations along Kawai High Road, questioning why development is being pushed forward without matching infrastructure upgrades from the Department of Water Supply.
- Councilmember Inaba: Expressed support, noting that the applicants had complied with all other original conditions and that no further extensions were needed, unlike many other cases. She thanked the applicants for their commitment.
- Councilmember Kagiwata: Expressed support and secured clarification that the new dwelling unit is prohibited from being used as a short-term vacation rental.
- Councilmember Viegas: Expressed support, complimenting the property owners' authentic stewardship of the land and their relationship with the community.
- Councilmember O'Nishi: Expressed support and engaged in a technical discussion regarding the removal of language prohibiting restrictive covenants (HOAs) from banning ADUs, confirming with the Director that the ordinance language is not a restrictive covenant.
- Planning Department: Provided data clarifying that while ADUs under state law HRS 46-4.8 may not apply to rural districts, county authority allows for two single-family dwellings per lot in certain rural zones. They noted that the specific request allows for a single family dwelling rather than an ADU, avoiding potential state law conflicts until amended.
Bill 120: Rezone Ordinance 04-149 (Kalawa, North Kona)
- Proposal: Applicants (Ernest and Elizabeth Young) requested a five-year time extension to secure final subdivision approval and the deletion of "Condition H" (prohibiting a second dwelling). The objective is to build ADUs on the proposed lots.
- Positions & Deliberation:
- Councilmember Inaba: Expressed support after verifying the existing structure and confirming that the existing driveway access on Mamalahoa Highway would be removed per DOT conditions, leaving only access from Mahilani Drive. She urged the applicants to act quickly.
- Councilmember Houston: Expressed support, noting the existing structures and safety considerations regarding the busy intersection are addressed. He asked for speed in finalizing the subdivision.
- Applicants stated their goal to have the existing Ohana unit serve as either the main dwelling or an ADU on the subdivided lots.
Bill 121: Time Extension Ordinance (Kona Country Club Inc.)
- Proposal: The applicant requested a 10-year time extension to complete construction of a development (scaled from 60 to 29 single-family dwellings) and pay fair share. Significant issues arose regarding the validity of previously purchased affordable housing credits.
- Positions & Deliberation:
- Councilmember Kirkowitz: Disclosed a potential conflict of interest as his board oversees the planning consultant's nonprofit. He received assurance from Corporation Counsel that he may vote. He expressed being "undecided" and "conflicted" regarding the project's viability and the affordable housing credit situation.
- Councilmember Viegas: Expressed strong opposition on the original motion, citing concerns about high-end luxury homes depleting resources, insufficient infrastructure support (schools, wastewater), and the precedent set by similar projects on Maui that price out locals. She stated she cannot support a project that does not contribute to the authentic benefit of constituents seven generations from now. However, she supported the proposed amendment which requires the project to restart the process if conditions are not met in 10 years.
- Councilmember Kagiwata: Expressed reluctant support. While acknowledging the strain on infrastructure and the fact that the units are for non-residents (vacation rentals), she noted the project meets zoning standards, has significant sunk costs, and falls within approved zones.
- Councilmember Houston: Expressed conflict and concern regarding the affordable housing credits, noting the County has not received direct benefit from the previous purchase and questioning the developer's intent to litigate vs. negotiate with the Office of Housing.
- Office of Housing (Ann Bailey): Explained that the affordable housing credits purchased from a developer named "Suffolk" were invalidated due to an audit revealing pre-awarded credits that were never properly earned and were subsequently bought by KCC. They stated they are re-evaluating all balances and have no current agreement with KCC.
- Applicant Representative (Sydney Fouquet): Stated the applicants intend to resolve the affordable housing obligation amicably rather than litigate, exploring options including purchasing new credits or building off-site units. They confirmed they are open to paying the difference in fair share fees if rates have increased since their previous payment.
- Amendment: Councilmember Inaba successfully moved to amend Bill 121 to require the project to go through the full legislative process again if the 10-year extension is not utilized, a clause supported by Councilmember Viegas and the applicant.
- Vote: The amendment passed; the final motion to forward Bill 121 as amended passed with a 6-2 vote (Inaba and Viegas opposed; Kleinfelder absent).
Key Outcomes
- Bill 119: Forwarded to full Council with a favorable recommendation. The committee agreed to the Planning Director's revised language allowing one additional single-family dwelling, pending Attorney General opinion on state law regarding ADUs in rural districts.
- Bill 120: Forwarded to full Council with a favorable recommendation and a five-year time extension. The date for full Council consideration was noted as February 4, 2026.
- Bill 121: Forwarded to full Council with a favorable recommendation as amended. The amendment requires the applicant to restart the planning process if the 10-year extension is not exercised. The committee noted the unresolved affordable housing credit dispute but accepted the applicant's commitment to negotiate a new agreement under Chapter 11 before plan approval is issued.
- Infrastructure Concerns: Multiple council members highlighted a disconnect between approved development volumes and the capacity of current water, sewer, and road infrastructure, specifically in Waimea and North Kona.
- Procedural Note: Councilmember Kirkowitz was cleared to vote after Corporation Counsel confirmed no ethics violation existed despite his disclosure regarding the planning consultant.
Meeting Transcript
Aloha and good morning after everyone. Welcome to the 18th session of the legislative committee on legislative approvals and acquisitions. Our apologies for starting a little late this morning. We are located here today in the Kona Chambers and connected by video conference to the Gilo Chambers. On our board today, we have Councilmember Kagiwata, Councilmember Houston, Councilmember O'Nishi, Chair Inaba, Councilmember Viegas, Councilmember Glimba, and Inhilo, Councilmember Kirkowitz, Councilmember Kanye Kleinfelder is excused, and I am your chair and provide presiding officer Heather Kimball. With that, we will go to statements from the public, Mr. Clerk. Thank you, Chair Kimball. I do understand we have a testifier for Bill 119. Is that the case? Please uh proceed with that testimony, Mr. Arcelli. Thank you so much, Mr. Clerk. Uh, we do have one Derek Fukumoto testifying on Bill 119. Derek had asked to testify immediately preceding the agenda item. And as we are going in order, this is your opportunity, Mr. Fukumoto. If you'd like to testify at this time, you can unmute, introduce yourself, and you'll have three minutes. Good morning. Council members. My name is Derek Fukumoto. Um I've been a neighbor for about 20 years to Clenn and Janet Lamb. Um to be clear, I'm not the neighbor that's on the other half of their five five-acre origin, original five acre that is also affected by this hearing. I'm a separate neighbor. Um they've been ideal neighbors, stewards of the land. Um, their intent of this amendment is to provide an additional dwelling for their son Carl to live on. With the limitations of issuance of water meters, this is a win-win for everyone, I feel. Um, housing will be provided, and by utilizing the catchment water system, they won't be taxing the water infrastructure. That is what I understand is the major concern here. Um, in my opinion, um they're following with the intent of the change in the rules that allow building permits without possessing separate water meters. Um in the earlier planning um commission um hearing, one of the planning commissioners mentioned the concern of the risk of fire hazards by adding an additional unit. Um, years ago, um, there was a fire from a 4th of July fireworks that scorched land around their home. Um ever since then, they've been diligently clearing brush and more so after the Lahaina fires. In fact, their actions motivated my wife to clear our land, and I I ended up uh loading and unloading green waste for months. Um if there's any concern that they might be abusing the variance, let me assure you that they are both of high integrity and credibility. Their intent has been to find a way that their son Carl be able to afford to live in Waimea, not to build a monster home with a 30 seconds, please. Please be rest assured of this. I fully support their appeal this morning and urge you to vote in favor of their requests. Thank you. Thank you so much for your testimony and chair with that. Those are all the testifiers you have at this time. Thank you very much, Mr. Arcelli. Mr. Clerk, if you could read in the first order of business. Bill 119 amends ordinance number 02-93, which amended section 25-8-7, North and South Kohala District Zone Map, Article 825 of the Hawaii County Code 1983 2016 edition as amended by change of district district classification from agricultural A58 to residential and agricultural RA2A at Oli South Kohala, Hawaii, covered by tax map key 62007 002, applicant Clemson and Janet Lamb, Area 5 Acres. The Lever Planet Commission forwards a fair recommendation for this requested amendment to condition D, which prohibits the construction of a second dwelling unit on the property. Properties located at 62-2039 Kawaii Road. Introduced by Councilmember Kimball by request.
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