Council rejects rezoning that would have allowed a car dealership near Reeds Bay; residents and small businesses celebrated

The Hawaii County Council on Dec. 6 rejected Bill 87, a first‑reading request to change a 1.795‑acre parcel in Keaukaha from resort/hotel to limited industrial, a move that would have cleared the way for an Aloha Kia dealership and associated service facilities.

Public testimony was strongly and repeatedly opposed. Dozens of residents, small business owners and cultural practitioners urged the council to preserve the character of the Ice Pond / Reeds Bay area and to avoid displacing neighborhood staples. Laurie Tavares, owner of Millie's Deli and Snack Shop, told the council that if the zoning change passes she would likely close and leave the community. "If Bill 87 is passed, come November 2025, I will pack my bags, close my doors," she said.

Applicant representatives said they had searched for years for suitable, fee‑simple property to relocate an existing dealership and argued the site is consistent with county general‑plan industrial designations that date back to planning actions in the 1970s and 1980s. John Pippen, representing Aloha Kia and the landowner, said the proposal includes permit conditions (SMA) and mitigations required by prior environmental review, and that the company has offered lease extensions to current tenants to ease a transition.

Planning staff described the parcel's planning and zoning history: it appeared as resort zoning on older City of Hilo maps but was designated industrial in community and general‑plan updates beginning in the 1970s, and the department said the request is consistent with the current planning map and available utilities. Several council members, however, said the map does not capture how the area is experienced on the ground and emphasized the importance of local engagement. Multiple council members said tenants and nearby homestead communities were not sufficiently engaged before the application advanced.

After prolonged discussion and an amendment process, the council voted on the first reading of Bill 87: the motion to pass failed on a roll call (nine members voting in opposition). Councilmembers cited community opposition, cultural and shoreline‑access concerns, and a desire for more community outreach as primary reasons to oppose the rezoning.

Next steps: Because the motion failed at first reading, the rezoning request does not advance. Council members encouraged community comment on the draft general plan (which remains open for comment) and said the planning process should strengthen local engagement before future rezoning proposals in sensitive coastal areas.

Key local voices: Small business owners New Saigon and Millie's Deli, long‑time residents of Old Coast Guard Road, and cultural practitioners who described the area's role for school groups, emergency access and traditional practices.