LIHU‘E — The permits to expand Princeville Center — granted more than two decades ago and never acted upon — are tied to a requirement to build 100 employee housing units, including 75 affordable units. Now, wanting to build more
LIHU‘E — The permits to expand Princeville Center — granted more than two decades ago and never acted upon — are tied to a requirement to build 100 employee housing units, including 75 affordable units. Now, wanting to build more shops, the center’s current owner is asking the Kaua‘i Planning Commission to strip down the housing requirement to 42 affordable units.
Faced with missing pieces, including comments from the county Housing Agency, the commission on Tuesday deferred acting on the request and scheduled another public hearing for Aug. 14.
Twenty four years ago, the Kaua‘i County Council approved zoning changes in Princeville, which allowed for the expansion of the Princeville Center. HSC Holdings, LLC purchased the shopping center in 2006, and now wants to act on the permits. The reasoning behind HSC’s request to substantially reduce the number of employee housing tagged to the project is that current law allows for bonuses based on certain criteria.
“The basic issue is, which one do we honor?” Commissioner Herman Texeira said of the original requirement and of the current law.
The comprehensive set of conditions in the ordinance passed by the council on June 7, 1988, required Princeville Corporation to build 100 employee housing units, with 75 percent of them slated to be affordable housing and 25 percent to be rented at market prices. First priority would be given to the corporation’s employees, then to the former Princeville Hotel employees and finally to all other employees working on phase I and II of the project.
But since then, the law has changed, and now allows for bonuses based on lower income brackets, according to county Planning Director Michael Dahilig.
HSC representative Steve Busch said current housing ordinance allows for 50 percent reduction of affordable housing requirements if lower income brackets are targeted, and that’s what HSC is proposing.
Half of the 75 affordable housing units would be 38 units, given that one of the units would not be cut in half, according to Busch. He said HSC felt the project would be more economic viable if 42 affordable units would be built, and therefore the company wants to build more than the minimum required under the current ordinance.
But what about the remaining 25 market-priced units?
Busch said “given the previous testimony” regarding the number of market units available for rental in Princeville, HSC “didn’t feel” the market-priced units were necessary if they were to be built to “satisfy the affordable need.”
HSC, Busch said, has been working with the county Housing Agency to determine the number of affordable units required.
The agency provided comments 20 minutes prior to the meeting Tuesday, and wants the 25 market-priced employee housing included in the requirement, according to county planner Ka‘aina Hull.
HSC is proposing to build eight units to be rented to households earning up to 80 percent of the Kaua‘i median household income, and 34 units for households earning up to 60 percent of the Kaua‘i median household income.
Translating into dollar amounts based on current calculations, HSC plans to rent 16 one-bedroom units at $701 per month, 20 two-bedroom units at $851 per month and six three-bedroom units at $990 per month.
Dahilig said that “at the end of the day” it’s the discretion of the commission to determine how many units would be appropriate, but the guidepost has been established by the council.
Regardless of the commission’s decision, their recommendation will still be sent to the council for an ordinance.
When the council approved the original ordinance in 1988, two council members voted against it; former councilman Kaipo Asing and current Council Vice Chair JoAnn Yukimura.
The area to accommodate the commercial expansion is a roughly 6-acre parcel immediately west of the shopping center. Adjacent to the commercial expansion, an additional 3.5 acres would be for the affordable housing complex.
Two North Shore residents gave oral testimony to the commission Tuesday.
Susan Wilson said there is no study regarding the number of affordable housing needed in the North Shore to accommodate all hotel industry workers.
Gregory Goodwin said the parcel slated for the shopping center’s expansion represents many broken promises from Princeville Corporation.
“Although I recognize that there have been comments in regards to previously broken promises, I also would like to emphasize that I don’t represent Princeville Corporation,” said Busch, adding that HSC purchased the shopping center in 2006 and is not associated with Princeville Corporation, although HSC is bound by the conditions of the current zoning ordinance.
In addition to verbal testimony, the commission received written testimony from North Shore residents Barbara Robeson and Marjorie Gifford, also opposing to the housing reduction.
Written testimony from the Contractors Association of Kaua‘i supports the request.
• Léo Azambuja, staff writer, can be reached at 245-3681 (ext. 252) or lazambuja@ thegardenisland.com.
