Committee advances Hualalai senior project run by faith-based nonprofit

HILO — Persistent questioning Wednesday by County Council members eventually arrived at the cost of perks a developer is seeking to build affordable housing and a senior care facility on Hualalai Road: $1.8 million.

That’s how much Hualalai Health, based in Edmonds, Washington, will save if the council proceeds with a long list of exemptions being sought to keep the project affordable. Hualalai Health has also constructed assisted living facilities on Maui and Oahu.

Members of the council’s Committee on Human Services and Social Services spent a lot of time ensuring in their own minds the request wasn’t out of line before ultimately voting 7-0 recommending Resolution 534 go to the council with a positive recommendation. Hilo Councilman Dennis “Fresh” Onishi and Puna Councilman Danny Paleka, who previously had concerns about the bill, were absent for the vote.

Five members of the public, including two state legislators, also weighed in, all in support.

“We desperately need long-term care units and affordable units in West Hawaii,” said state Rep. Nicole Lowen, D-Kona, adding this was her first time testifying at a council committee meeting. “We’ve got a lot of health-care gaps that we need to fill.”

Lowen said the Legislature struggles to find incentives to bring long-term care facilities into the state, but incentives are easier to provide and outcomes to monitor at the county level.

State Sen. Josh Green, D-Kona, a physician, submitted written testimony echoing Lowen’s support.

“As a legislator and a physician, I have seen the disparities that our people are facing in our community as far as better access to health care,” Green said. “Long-term care is a critical gap in our health-care delivery system and there are costs across the state and county because we do not have sufficient services.”

Developers are seeking exemptions from building code permit fees, grading, grubbing and excavation permit fees, inspection fees, fair share fees and any future impact fees, should an impact fee ordinance pass. They’re also asking for exemptions from having to get a use permit, and a zoning exemption from RM 2.5 to RM 2.0 to increase the allowable density. And, they want an exemption from concurrency requirements.

County officials said the exemptions are typical under state law.

But some council members wondered where the county would draw the line, especially when for-profit ventures come forward looking for exemptions.

“How do we pick and choose who gets the exemption?” asked Hamakua Councilwoman Valerie Poindexter. “Don’t think I’m against this project, because I’m not. I’m just trying to be responsible to my constituents and not set a precedent.”

The approximately $70 million project on 9.2 acres on Hualalai Road includes a 160-bed, long-term care, skilled nursing facility, along with 96 assisted living beds and apartments for 35 employees. Of those, 91 housing units — 54 percent — will be considered affordable under state law.

The apartments for employees and possibly other local workers will start at $1,700 monthly for a one-bedroom unit. That’s considered affordable because it’s 30 percent of the salary for households making up to 140 percent of the county’s median household income of $68,000, said county Housing Director Susan Akiyama.

Another 56 assisted living beds will be affordable at $350 to $380 monthly for those on Medicare or Medicaid making 30 percent of median income.

If all goes as planned, the facility will be up and running in 2018.

Officials have said the project will bring more than 350 full-time skilled and semi-skilled jobs to West Hawaii. It will be operated by Presbyterian Retirement Communities Northwest, a faith-based nonprofit organization operating four facilities in Washington.

“Being able to assure all the people investing in the project that we have your support is critical,” said Managing Partner Bruce Beard, the co-owner and project developer.

Hilo Councilman Aaron Chung, while assuring Beard the council supported the project, asked whether the support also had to include the full $1.8 million in exemptions.

“I don’t think there’s any question that we support it,” Chung said, “but whether we support it to the tune of $1.8 million … Is that a deal breaker?”

Beard assured him it was, because the financing is pinned to the current business plan.

North Kona Councilwoman Karen Eoff, whose district the project will be in, was appreciative of the support, but also of the tough questions.

“All in all, I think it was good that we vetted the concerns,” Eoff said after the meeting. “There’s going to be a big need for this housing as our community ages.”