Council approves rezoning for 23‑lot Olahou subdivision after residents raise concerns about possible hospital site

The Hawaii County Council voted Dec. 18 to pass Bill 219 (draft 2) on second and final reading, changing the district classification to permit a 23‑lot, one‑acre subdivision in the Olahou/Keaau area.

Residents from the adjoining Olahou Estates told the council they were blindsided by reports that a 7–9‑acre portion of the site might be used for a clinic associated with Hilo Benioff Medical Center. "We urge you to not let this parcel be subdivided and not allow this proposed project to proceed," said resident Corey Hisashima, who testified that mailed notices referenced only a 23‑lot subdivision and did not disclose the clinic proposal.

Acting Planning Director Jeff Darrow said the processes are separate: the rezoning would allow creation of one‑acre lots but does not itself authorize construction of a hospital or clinic. "The zoning proposed could accommodate the proposed medical facility," Darrow said, "but permitting would not be through zoning. It would be through a special permit." He outlined that a previously approved public‑purpose subdivision under Chapter 2311 set aside roughly 7–9 acres for a potential public facility, and that any clinic would still require an environmental review and a special‑permit hearing before the Windward Planning Commission.

Council members debated whether to postpone the rezoning to allow more community outreach. Councilmember Connolly Kleinfelder moved to postpone the item to Jan. 8, 2025, but that motion failed on roll call. Councilmember Vicky Villegas said she would not support passage, arguing the rezoning would make it much more likely a clinic could be sited there: "I won't be supporting this today because I believe that if we say yes, there's a probability … a 90% chance that the medical center will get built here in this rural AG area," Villegas said.

Supporters of the rezoning, including Councilmembers who represent the area, emphasized that the bill is required for the proposed subdivision to proceed and that any clinic would be subject to separate review. The applicant's representative and planning staff said the environmental assessment's public comment period closed in early December and that a special‑permit filing could follow, allowing additional public input and contested‑case avenues.

On a roll‑call vote the council approved Bill 219 (draft 2) on second and final reading; the chair announced the motion carried. Councilmember Villegas voted no; one councilmember recused and another was excused. The council recorded the vote and the ordinance will take effect according to the county's rules for zoning changes.

Next steps: Planning staff said a final environmental assessment must be submitted and accepted (or a finding of no significant impact issued) before a special‑permit application for any medical clinic could be filed. The Windward Planning Commission would hold the special‑permit hearing; if a contested case is requested by the public, that would be part of the administrative process.

This article is based on testimony and council discussion during the Dec. 18 Hawaii County Council meeting in Hilo.