Council approves Olī rezoning and subdivision after debate over roads and drainage; amendment and final vote narrow requirements

Hawaii County Council members approved two linked land-use measures affecting Olī in South Kohala on Feb. 19, voting first to change state land-use boundaries and then to approve a zone change and subdivision that will allow the applicant to create 43 lots.

Bill 17: change to state land-use map (agricultural to urban) - Council approved the ordinance on second and final reading. Roll call recorded eight ayes; Councilmember Connolly Kleinfelder voted no. The motion was moved by Councilmember Heather Kimball and seconded by Councilmember Huestis. The vote authorizes a state-land-use boundary change for the project area as described in the ordinance.

Bill 18: change of zone and subdivision details (ag to single-family; 14.321 acres; 43 lots) - Bill 18, which amends the county zoning map and the North and South Kohala district zone map to permit a subdivision that the planning commission endorsed, passed on second and final reading after a controversial amendment and further council votes. The applicant is Hawaii Island Community Development Corporation (HICDC); the parcel described in the ordinance totals roughly 14.321 acres and the proposal would allow up to 43 lots under the amended condition.

Road construction and drainage became the central dispute. Councilmember Kanyeli Kleinfelder introduced an amendment (submitted as communication 77.9) requiring that: (1) all roadways constructed within the project conform to Hawaii County Code section 23-86 (requirements for dedicable streets) and (2) all drainage improvements conform to section 23-92, and expressly disallowing the use of seepage pits where they would otherwise have been proposed.

Applicants and county engineers explained trade-offs in public testimony. HICDC representatives said building to the stricter standards and replacing seepage pits with dry wells could substantially raise project costs — the applicant provided a preliminary estimate that converting seepage pits to dry wells and required piping could add materially to the budget. Deputy Director of Public Works Neil Azevedo and HICDC representatives said the project team had historically used two-inch pavement over a compacted base on several self-help subdivisions that have endured for decades, and that county inspectors enforce compaction and base standards.

Council members debated the amendment, citing two tensions: the need to keep development costs low so affordable housing can be built versus the need to ensure roads and stormwater systems are built to county safety and durability standards. Supporters of the amendment argued that complying with the dedicable-street standard now avoids costly repairs and hazards for future residents; opponents pointed to the project's donor-funded land gift and to HICDC’s contention that the higher standard could make the project financially infeasible.

The council first adopted the amendment on a roll call of 5-4. After additional public and applicant comment the council voted to reconsider the amendment; reconsideration passed, keeping the amendment on the table. A motion to postpone consideration to the March 19 meeting failed. The council ultimately approved Bill 18 on second and final reading by a 6-3 roll-call vote.

Applicants and staff said next steps include a drainage report and engineering work to meet whatever drainage approach the adopted conditions require. HICDC said it plans to dedicate roadways to the county once construction meets standards; the developer also affirmed the project will target low-income buyers (USDA self-help program, up to 80% area median income) and that the affordable-housing commitment includes a minimum buyback period of 15 years.

Several members of the public had earlier testified during public comment and warned about water availability, the cumulative effect of new developments, and broader infrastructure strain on the island; those comments were part of the record during the land-use debate.

The two ordinance votes clear the way for HICDC to move to detailed engineering and permitting under the terms the council adopted.