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Council delays vote on Bill 63 after extended debate over allowing housing in MCX zones
Summary
After hours of testimony and a failed amendment to allow residential dwellings as accessory uses in industrial‑commercial mixed‑use (MCX) zones, the Hawaii County Council voted to postpone Bill 63 to Feb. 4, 2026; the amendment failed 1‑8 and members raised concerns about scale, enforcement and affordability.
HILO — The Hawaii County Council on Jan. 7 postponed consideration of Bill 63 — a proposed change to allow dwellings in Industrial‑Commercial Mixed Use (MCX) zones as accessory uses — after a lengthy public hearing, detailed technical briefing from planning staff and a failed amendment.
What happened: Testimony in person and from Kona reflected divided views. Supporters, including Riley Smith (president and CEO, Langhao Properties) and planning consultant Bill Moore, said allowing on‑site housing near employment centers in West Hawaii would help employers retain staff and make commutes feasible; they noted existing infrastructure commitments and water units for Westway Business Park.
Opponents, including Council members Eustace, Villegas and Kimball, said the amendment as drafted was too broad and could allow market‑rate condos or other dwellings that would not meet workforce or affordable‑housing goals. Council members asked how planning would ensure dwellings remained accessory to a primary business use, what thresholds would trigger affordable‑housing requirements, and what tax classification such mixed uses would carry.
Amendment and vote: Vice Chair Onishi moved to amend the bill to add dwellings to the list of accessory buildings permitted in the MCX district (communication 333.14). Planning Director Daryl Darrow explained that the amendment would permit dwellings only as subordinate, on‑site accessory uses and that the department could require evidence that the dwelling was incidental to the primary use at time of permitting. Several council members pressed for specific thresholds or use‑permit oversight. On a roll call the amendment failed, 1‑8 (Vice Chair Onishi the sole yes). The council then voted to postpone Bill 63 to the Feb. 4 council meeting to allow additional drafting and review.
Why it matters: Proponents framed the measure as a practical tool to create workforce housing near large employers and planned facilities (hospital, retail) in West Hawaii. Opponents warned that, absent binding affordable‑housing conditions or clearer thresholds, the rule could be used to create market housing on formerly nonresidential parcels.
Representative quotes: Riley Smith said the change would “allow for more residential use for our employee workforce in West Hawaii in close proximity to lands that will be designated as employment centers.” Councilmember Villegas cautioned that similar language on Oahu had produced market housing rather than guaranteed workforce units.
Outcome: The proposed amendment (communication 333.14) failed 1‑8. Bill 63 was postponed to Feb. 4, 2026, by unanimous voice vote.
