Council amends Bill 63 to require use permits for dwellings in MCX zones, passes first reading

The Hawaii County Council amended and passed Bill 63 on first reading Feb. 4, changing a proposal that would have made residential dwellings a permitted use in MCX (industrial-commercial mixed-use) zoning to a requirement that residential projects obtain a use permit.

Councilmember Kimball, the maker of the amendment, told colleagues the change responds to concerns that “one size fits all” does not work in MCX districts and that a use‑permit process allows the planning department and commissions to review each site and impose conditions, including setbacks, on a case‑by‑case basis. “Rather than making it a permitted use…we moved it as a use permit,” Kimball said.

The change removes an explicit 200‑foot setback from section 3 of the draft and places the residential language under a subsection that triggers discretionary review, which supporters said preserves community input and site‑specific safeguards. Planning Director Jeff Darrow told the council the department had supported permitted uses initially to encourage live‑work opportunities and on‑site workforce housing, but acknowledged that adding residential uses as permitted uses could reduce opportunities for neighbors to comment. He described the use permit as a discretionary process that includes commission review and allows for contested‑case hearings and enforcement through permit revocation if conditions are violated.

Opponents, including council members representing West Hawai‘i, said they fear the change still leaves gaps on enforcement and could unintentionally enable high‑density or short‑term rental development in areas lacking infrastructure. Councilmember Villegas asked whether neighborhood parks and playgrounds should be explicitly added to MCX if dwellings are allowed, and urged stronger protections against short‑term vacation rentals; Director Darrow responded that short‑term rentals were not a permitted use in MCX under current code and that inclusionary (affordable housing) requirements would be tied to the eventual use if multifamily housing is proposed.

Councilmember Eustace and others asked whether use permits are handled administratively or by commission. Darrow explained the department prepares background and recommendations, and the Windward or Leeward Planning Commission issues final approvals based on the property’s location; the public will have a hearing opportunity as part of that process.

After a roll‑call vote on an amendment adopting communication 333.17, the council recorded six votes in favor and two against, with one member absent; the subsequent motion to pass Bill 63 on first reading as amended carried 7–2 with one absence.

The bill returns to the council for a second reading and additional action, during which members asked staff to clarify whether inclusionary housing measures or stronger permit conditions could be integrated before final passage.