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Home My WebLink AboutCOM 0124.001 2000-2002 Harry Klm Jame S. Correa Mayor _ Polln Chkf . ~IIIIII~s[ IIf 3~ttw~~>t r . POLICE DEPARTMENT 349 Kapiohm Swet • Hob, H~wui %720.3998 (808) 9J5-3311 • Fuc (808) 961-8869 March 12, 2001 TO JAMES Y. ARAKAIQ, CHAIRMAN, HAWAII COUNTY COUNCIL ATTN AARON S. Y. CHUNG, CHAIRMAN, COMMITTEE ON FINANCE, HAWAII COU COUNCIL FROM JA S. REA, POLICE CHIEF SUBJECT: COMMUNICATION 124 (RESOLUTION 53-O1) At the March S, 2001, Committee on Finance meeting, Councilman Curtis Tyler requested additional correspondence pertaining to the purchase of tax map keys 2-4-025:044 and 046 for future expans(on of the Public Safety Complex. Please find attached the memorandums and letters sent and received by the Police Department on pursuing this land purchase. Should you require additional assistance on this matter, please contact Major Charles Chai of the Administrative Services Division at 961-2247. CMC/Ivm Att. Oonmi, Na ~ Z ~ P91e No. list. 1b: ~ xet, Date MAR 1 ~ inn, .d ~ ~ ~ Wayne G. Catvalho Stephen K Yamash~ro Pal ~«f M°9o' James 5. Correa ~+~....~'~i~ Orputy Palvc Chat ~IIliltf~l II~ ~lIf112iLI POLICE DEPARTMENT 3Q9 Kap~aianr Street Hilo, Hawa~~ 967263998 Ia061935.3771 Fa:19061961-2702 March 30, 2000 Asset Forfeiture Office, Cruninal Division U S Departmrnt of Justice P O. Box 27322 Central Station, ?i?ashington D. C. 20038 Dear Slr or Madam. We recently Teamed that property adjacrnt to our Public Safety Complex (Police Headquarters) m Hilo went through foreclosure and auction proceedings and the successful bidder may develop the azea The Hawatt County Police Departrnrnt (HCPD) is interested in purchasmg the property for future expansion of its law enforcement facilities We had no pnor knowledge of its availability and hence, there were no purchase plans in place. However, we have discovered that we can still go to court and submit a bid to acquire these two pazcels The purchase of the ad}scent property is a one-time opportututy, whtch would allow us to secure the only undeveloped real property in the itnmedtate azea abeady zoned to accommodate our much-needed future facilities The acquisition of the property will be unlized for law enforcement purposes only and will allow for future expansion. A fact sheet and map relating to the property (TMK 2-425:44 and 46) totaling 25,410 square feet is enclosed In view of the current dire financial conditions of the County of Hawaii, funding for this property would not be possible We are seeking your opinion on whether forfeiture funds may be utilized to purchase the property, as this use is uncleaz in DAG-71 and in the GUIDE TO EQUITABLE Asset Forfeiture Office, Cnmmal Division Page 2 SHARING OF FEDERALLY FORFEITED PROPERTY FOR STATE AND LOCAL LAW ENFORCEMENT AGENCIES (Manrh 1994) We will be anxiously awazting your response. Please contact us if additional details may be necessary. Sincerely, G . Clevwat~co W G.CARVALHO PO CE CHIEF WGC/gtm Enc aTiie:oo is.ie Qzo2sosaae2 asstr ruerniiuxt ~ uux U.3. llepartimaet of Jastlea Crimintl Division M.~asrpeea, O. c. to . ~ Z Wayne G. Carvalho, Chief of Polies County of Hawaii Police Department 399 Kapiolani Street Hilo, Hawaii 96720-3998 Re: Use of Erniitable 5harina Eunds Deaz Police Chief Carvalho: Ttiis is in response L•o your March 30, 2000 letter asking whether the Hawaii County Police Department (NCPD) may use shared funds to purehasa property adjacent to the Police H~edquarters for future expansion of its law enforcement facilities, You csplained in your latter that the acquisition of the property will be utilized for law enforcement purposes only and no funds are currently budgeted for the proposed purchase. The ~yide to Equitable Sharing (March 1994), provides that shared funde must be used for law enforcement purposes and priority should be given to activities calculated to enhance future law enforcement operations. Because the land purehasa is for expansion of law enforcement facilities, the proposed use of randy is permissible, so long as the HCPD is authorized under 9tatP and local law to acquire and own land. • Wayne G. Carvalho Po4u Chr/ Stephen K YamasMm Mayror James S Correa - ,N,~ ~ ' Ocpuly Pdltc Chief ~IIititf~ II~ ~t[f1lHti POLICE DEPARTMENT 3N wpolani Sneer wiq wwai~ %~xo-3ne leoe~~snn far level%1-270? May 8, 2000 Mr. Thomas Witthans P. 0. Box 6581 Kamuela, Hawaii 96743 Dear Mr. Witthans: Re: TMKs (3) 2-4-25-44 AND (3} 2~-25-46, LOTS 116 AND 117 SITUATE AT KUKUAU 1~, SOUTH HILO, ISLAND AND COUNTY OF HAWAII, 51•ATE OF HAWAII Thank you for your letter of May 4, 2000. We are still interested in furthering our discussions on the possibility of acquiring the both parcels and have made inquiry with the Department of Justice on the possible use of federal funds for the acquisition. Upon receipt, we will advise you of their response. This should not be considered a commitment nor a notice of intent to purchase. Mahalo. Sincerely, WA E G. CARVALHO POLICE CHIEF WGC:sk cc: Glenn Taguchi - ,aloha Promotions FRX hl~. 808 885 6987 May. 04 2000 11:23RM P2 P O Box 6581 Katmrela, Hawan %743 Phone (808) 885-6787 Fax (808) 885-6987 r L May 04, 2000 t. v Q ~ Wayne Carvalho r = ; 3 ~J Police chief ~ 1Capiolani 5ttnet Hilo, Hawaii 96720 Aloha Ivlr. Carvalho, I am writing you on behalf of my Father Robert wrtthans, who owns the property ittunediately adjacent to the police ration an 1Zapiolam St The recent foreclosure pnooeedmga wero halted when trry Father filed a chapter 11 bankruptcy (All creditors get paid via a court approved plan ) It is possible to include the sale of the I{apiolatd Street property to the Police T)ept. or County as part of a court approved pLta I befieve you will fend the foitcrwing offer fair and one which would gain approval from the courts Sale includes parcel # 116 is 12,277 SF. and patoel # 117 which is 13,133 SF. My Father is willing to offer both pazcds at tbeir crrrrart Tax Aseesaed value. This is thousands less than he paid, and I am sure I can get hitn tq include thz consolidation survey with tentative approval from the platnung dept which eiimioatea the setbacJcs between the two Properties. The Current Tax , Assessed value is near S1001C each 'T'otal aprox 5200K. T believe thin cost is far lass per square foot, than the County paid for similar property purchased from the Owner of the adjacerrt corner lot If this offer rs of imerest to you; I would appreciate a reply letter stating your interest. You do not have to make any sort of commitment , It should simply state that you would be i>zterested in purchasing the property (T'MIC # 3-2-4-25-0441$ 046) at the tax assessed value It wr71 take several months for rn5' Fathers Attorney to complete s plan for the courts approval Outing that time the terms and conditions (as well as the closing date) of the sale can easily be worked out between you and tlu Attorney Chapter 1 ] provides for repayment within a 3 year period, so payment is far more flpnble than in a foreclosuro sale. Thank you far your time and patience in dealing with this matter I feel this sale can be benefieial to both the Police Dept as well as my Father. 1Cour reply is greatly apptec~eted. Mahalo & Aloha,-r-' r Thomas ~Yrtthans~ 1 dlv~ ~ ib$~ Mir er o Wayne G. Carvalho /'olae Onrf Stephen K Yatoashiro M°1^' Jamo s. Correa Orpury poLrr Ch~r~ rrr er'drit (1~ulxntg of ~txfirttii POLICE DEPARTMENT 349 Kepoltw Sweet • Hilo, Heew 96730.7998 June 21, 2000 ceoa> 93s-3311 • ~ canal 96i~a69 CERTIFIED MAIL. RETURN RECEIPT REQ 1FL-STED Asset Forfeiture Office, Cnminal Division U S Department of Justtce P O Box 27322 Central Station, Washington D C 20038 Deaz Sir or Madam This Is In regard to our March 30, 2000 letter requesting an opinion whether forfeiture funds may be utilized to purchase property adjacent to our Public Safety Complex (Police Headquarters) in Htlo. The foreclosure proceedings on the property were halted due to the owner filing for Chapter 11 bankruptcy. In a May 4, 2000 letter, the owner of the property Inquired of our Interest in the property as his attorney Is working on bankruptcy plans for the court's approval Although we have received an Informal response that forfeiture funds may be used for this purchase, we are awaiting wntten confirmation before entenng Into any negotiations with the property owner As time Is of the essence and this will be our only chance to purchase the property for future expansion, we request your wntten decision at the earliest opportunity Your favorable response would be appreciated Sincerely, ~.s. u~ WA E G CARVALHO POLICE CHIEF WGC/gtm Wayne G Carvalho Stephen K Yamashlro Pot~ChaJ C. , , ~'1"°' ~ ~ ~ James 5 Correa a/irt o/•r/~J De~u'y Pol¢t Chug f~uunfg II£ ~ttiuttii POLICE DEPARTMENT 3.19 Kap~olan~ sheet Hilo, Hawaii 96:?o-399B (B09)93i•J711 Fax (9081961-2: D? JUIy zo, 2000 TO .STEPHEN K. YAMASHIRO, MAYOR ATTN GLENN TAGUCHI, EXECUTNE ASSISTANT FROM G CARVALHO, POLICE CHIEF SUBJECT• ACQUISITION OF TMK 2-4-25:44 AND 46, KUKUAU, SOUTH HILO This is a follow-up to our recent conversation advising of our desire to acgwre contiguous parcels on the north or Hamakua side of our headquarters budding with the use of Federal Asset Forfeiture funds. 8e advised that on July 17, 2000, we received wntten approval from the United States Department of Justice, Asset Forfeiture and Money Laundenng Section, to utilize asset forfeiture funds to purchase these parcels (see attached). In view of such, with your assistance, we would like to proceed with the negotiations to acquire these properties. We can discuss details at your convenience WGC:sk Attachment cc: Steven S. Alm, Urnted States Attorney ~++/attachment Earl Anzai, Attorney General w/attachment Richard Wurdeman, Corportion Counsel ~v/attachment Wayne c. Carve Stephen K Yamaahim Pe4aOw<J ~wyo. . James 5. Coen • O(piry Pdmr Cai u~IIl~ ~ POLICE DEPABTMEN'C sa w~aaa; scree • tub, tta..a,i ecn¢»9e naei ~smt • to isa~ wt•vaz August 28, 2000 CEBTZFIED MAIL Mr. Thomas Witthans ' Post Office Hoz 6581 Ramuela, Hawaii 96743 Dear Mr. Witthans: Subject: Taz Map Reys: 3rd/Z-4-25:44 and 46 Reference is made to your letter of May 4, 2000 and my response of May 8, 2000 and pour zecent telephone conversation with Ezecutive Assistant Glenn Y. Taguchi ahaut the subject property. After reviewing our available finances, the County of Hawaii, for and on behalf of the Hawaii Police Department, submits an offer to purchase Taz Map Reys: 3rd/2-4-25:44 and 46 for a total purchase price of One Hundred Seventy Five Thousand dollars ($175,000.00). The offer to purchase is subject to the following: 1. The availability of Asset Forfeiture Funds; 2. Authorization to acquire the subject properties and approval of its funding source by the Council of the County of Hawaii; 3. Approval of the sale of the subject properties to the County of Hawaii for the Hawaii Police Department by the United States Bankruptcy Court; 4. That the subject properties shall be free and clear of all encroachments, liens, encumbrances, mortgages and the like; 5. That the subject properties shall be free and clear from any and all easements, rights-of way, reservations and the like that may unduly interfere with the use of the subject properties for the future ezpansion of our Hawaii County Public Safety Complez; and 6. That this offer to purchase may be withdrawn upon a thirty (30) day written notice of the County of Hawaii's intention to withdraw said offer to purchase. CERTIFIED MAIL Mr. Thomas Witthans August 28, 2000 Page 2 Should you have any questions, please feel free to call on me at (808) 961-2244 or Ezecutive Assistant Glenn Y. Taguchi at (808) 961-8503. Sincerely, WA G. CARVALHO ' Police Chief c: Harry A. Takahashi, Managing Director Richard Wurdeman, Corporation Counsel Dizie Raetsu, Director of Finance Randolph R. Slaton, Esq. LAW OFFICES OF RANDOLPH R. SLATON~~ ~'LF RANDOLPH R. SLATON # 4 0 1, ,L'~1`''`RUP ~Y COURT lool Bishop Street ~~T -b PM 4~ 16 ~ ~ ~av~q~( 1560 Pacific Tower ZQ~~ ^r Honolulu, Hawaii 9681L'lA~:'I~~I rCLICE '4 P~'1 I~ 24 Phone• (808) 532-1010 Attorney for Debtor-in-Possession _ N _ O • O O Ci Q - ~l ' ~1 1 J UNITED STATES BANKRUPTCY COURT o ~ cn DISTRICT OF HAWAII V , ; ~ w J In re ) CASE NO. 00-01431 ~ iv • ) (Chapter 11) ° ROBERT E WITTHANS, ) CERTIFICATE OF SERVICE Debtor. ) CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the following document(s): _ Ex Pa rte Motion for Instructions on Hilo Property, or in the Alternative, to Advance the Hearing on Debtor's Motion for Leave to Sell Estate Property Pursuant to 11 U.S.C. 5 363(b), and For Instructions; Ex Parte Motion for Instructions on Debtor's Residence, or in the Alternative, to Advance the Nearing on Debtor's Motion for Leave to Sell Estate Property Pursuant to 11 U.S.C. 5 363(b), and For Instructions; Declaration of Randolph R. Slaton in support of Ex Parte Motions for Instructions, or in the Alternative, to Advance the Hearing on Debtor's Motion for Leave to Sell Estate Property Pursuant to 11 U.S.C. § 363(b), and for Instructions shall be duly served by hand delivery and/or U.S. mail, upon the parties listed in Exhibit "A" attached hereto, at their last known address, upon filing of said document. °F`~+,~r/ 17 7 6 U OCT-4~ DATED: Honolulu, Hawaii RANDOLPH R. SLA ON Attorney for Debtor-in-Possession 2 / ' EXHIBIT "A" OFFICE OF THE U.S. TRUSTEE 1132 Bishop Street, #602 Honolulu, HI 96813 Alan Horowitz, Esg. Buchalter Nemer Fields 6 Younger P.O. Box 14635 Irvine, CA 92623-4635 Attorney for Secured Creditor AMERIQUEST MORTGAGE CO., fka Long Beach Mortgage Co David C. Farmer, Esq. 1099 Alakea Street Suite 1900, Alii Place Honolulu, HI 96813 Attorney for Secured Creditor BANK OF AMERICA, NTSSA Allen I. Marutani, Esq. 810 Richards St., Ste. 651 Honolulu, HI 96813 Attorney for Secured Creditor GE CAPITAL HAWAII, INC. _ Carol K. Muranaka, Esq. Special Assistant U.S. Attorney Room 7-121, PJKK Federal Bldg 300 Ala Moana Blvd., Box 50089 Honolulu, HI 96850-9992 Glen Taguchi P 0 Box 936 Hilo, HI 96721 2 , . U.S. BA~J R)UPT~ COURT LAW OFFICES OF RANDOLPH R. SLATON DISTRICT OF HAY~AII RANDOLPH R. SLATON #1647-0 200DOCT -4 PH I~ 24 1001 Bishop Street _ o 1560 Pacific Tower - o ~ Honolulu, Hawaii 96813 0 0 -•1 Phone: (808) 532-1010 ~ - `f' + :l Attorney for Debtor-in-Possession° ~ ~ = T - w ~+1 UNITED STATES BANKRUPTCY COURT - N o DISTRICT OF HAWAII In re ) CASE NO. 00-01431 (Chapter 11) ROBERT E. WITTHANS, ) ) Debtor. ) DECLARATION OF RANDOLPH R SLATON IN SUPPORT OF EX PARTE MOTIONS FOR INSTRUCTIONS, OR IN THE ALTERNATIVE, TO ADVANCE THE HEARING ON DEBTOR'S MOTION FOR LEAVE TO SELL ESTATE PROPERTY PURSUANT TO 11 U.S.C. $ 363(b), AND FOR INSTRUCTIONS I, RANDOLPH R. SLATON declare and state as follows: 1. I am counsel for the Debtor herein, make this declaration upon information and belief, and am competent to testify to the matters stated therein. 2. 2 make this declaration in support of the foregoing Ex Parte Motion for Instructions, or in the Alternative, to Advance the Hearing on Debtor's Motion for Leave to Sell Estate Property Pursuant to 11 U.S.C. § 363(b), and For Instructions. The instant Motion comprises two matters related to the administration of the Estate: the marketing of two properties in Hilo, and the Debtor's residence.' 1 The Estate began with real estate interests in (1~ the Debtor's 3. In said Motion, the Debtor seeks instructions from this Court regarding the following: a. The Debtor owns two contiguous pieces of property (identified as TMK 3-2-4-025-044 and TMK 3-2-4-025-46), which are located next to the Hilo police department. (The properties, together with another property in Laupahoehoe, secure a mortgage to GE Capital, with a principal balance of somewhat over 5330,000). The County of Hawaii has indicated that, subject to obtaining governmental financing and approvals, it would be interested in purchasing the two Hilo properties for 5175,000. While this sum is less than the Debtor believes the properties to be worth, the price is within a range for which the Debtor understands that he should seek instructions about whether to enter into a preliminary agreement with the County of Hawaii. The County then could proceed to obtain governmental approvals and financing for a proposed sale that would be subject to Court approval. A sale at the suggested price of $175,000, together with the sale of the Laupahoehoe property at a fair price, should be sufficient to satisfy the GE Capital mortgage in full. b. The Debtor has not received any serious offers on his residence. Counsel for the Debtor has discussed residence, (2) two contiguous properties in Hilo and one property in Laupahoehoe, all of which are subject to a GE Capital mortgage, (3) an option on property in Kanehoe, which was assigned with Court approval and for which escrow is scheduled to close in late October, resulting in an anticipated some $20,000 to $30,000 coming into the Estate; and (4) two additional properties on the Hig Island, which have been sold with Court approval and which are in escrow, although the proceeds will not be sufficient to pay the Bank of 2 this situation with Alan Horowitz, Esq. (of Irvine, California), the attorney for the first (and only) mortgagee (AmerigUest, which now is owed some 5650,000), and the Debtor's real estate broker, Adele N. (Dodie) MacArthur, of MacArthur & Company. Both the mortgagee's attorney and Ms. MacArthur have suggested that a listing price of 5875,000, would be more appropriate than the current listing price of 51,200,000. The Debtor believes that the property should be listed at a higher figure, but recognizes that given Ms. MacArthur's,advice, instructions should be sought from the Court regarding whether to lower the listing price to 5875,000. A sale in the range of 5875,000, would pay the first mortgage in full, and provide sufficient funds to pay a very high percentage of the Debtor's general, unsecured debts. 9. For these reasons, the Debtor asks, ex arte, for _ instructions regarding whether to enter into negotiations for the County of Hawaii to purchase the Hilo properties for 5175,000 (which then would be submitted to the Court for approval with notice to the creditors under Rule 2002(a)(2), Fed.R.Bankr.P.), and whether to lower the listing price on his residence to 5875,000. The Debtor expects approval of this ex ap rte motion will assist the Debtor's Estate in obtaining substantial benefits for the Estate and creditors of the Estate which otherwise may be lost. America mortgage on the properties in full 3 5. In the alternative, the Debtor requests that a hearing date be set sooner than November 13, 2000, in order to enable the Debtor to effect an agreement with the County of Hawaii, and to list Debtor's residence at a lower selling price to attract serious offers. 6. If Debtor is allowed to advance the hearing on said Motion, Debtor would like to have the motion heard as soon as possible. No Creditors' Committee has been appointed in this matter. 7. The following counsel who represent the parties who most likely would be interested in this Motion (the Office of the United States Trustee, the mortgages and the Internal Revenue Service), have been contacted by telephone on October 3, 2000 (with the call to Ms. Muranaka having occurred on _ October 9, 2000). With the exception of Mr. Marutani's position on the Hilo property (as set forth below), the following counsel indicated that they do not oppose the Court granting the requested relief ex pane, or, in the alternative, advancing the hearing on said Motion. a. Curtis Ching, Esq., Assistant U.S. Trustee; b. David C. Farmer, Esq., attorney for secured creditor Bank of America, National Trust and Savings Association (which held mortgages on properties not involved in this Motion); 4 c. Alan Horowitz, Esq., attorney for secured creditor Ameriquest Mortgage Co., the only mortgagee on the residence. d. Allen I. Marutani, Esq., attorney for secured creditor GE Capital Hawaii, Inc., which has a mortgage on the Hilo properties that are the subject of this Motion. Mr. Marutani is agreeable with negotiations proceeding with the County of Hawaii for the Hilo property if the Debtor will stipulate to lifting the autAmatic stay on the Laupahoehoe property. The Debtor, however, is not willing to stipulate to that. e. Carol K. Muranaka, Esq., attorney for Internal Revenue Service. I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING _ IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. DATED: Honolulu, Hawaii, ~ ~'~p f~~~~~%~ RANDOLPH R. SLATON 5 .r-, FILED U c, BANKRUPTCY vOURT LAW OFFICES OF RANDOLPH R. SLATON ~ISTF.ICT OF ;I~~,•AII RANDOLPH R. SLATON #1647-0 yppp OCT -4 PM I~ 23 1001 Bishop Street , 1560 Pacific Tower Honolulu, Hawaii 96813 - o Phone: (808) 532-1010 ~ 0 1 Attorney for Debtor-in-Possession r,co ~ ~ oD u'i UNITED STATES BANKRUPTCY COURT _ n ~ DISTRICT OF HAWAII w ~ N In re ) CASE NO. 00-01431 ° (Chapter 11) ROBERT E. WITTHANS, ) Current Date: 11/13/00 Debtor. ) Time: 2:00 p.m. EX PARTE MOTION FOR INSTRUCTIONS ON HILO PROPERTY, OR IN THE ALTERNATIVE, TO ADVANCE THE HEARING ON DEBTOR'S MOTION FOR LEAVE TO SELL ESTATE PROPERTY PURSUANT TO 11 U.S.C. ~ 363(b), AND FOR INSTRUCTIONS COMES NOW ROBERT E. WITTHANS ('Debtor"), Debtor, _ through counsel, and moves this Honorable Court, ex carte, for (a) an order providing instructions on entering into negotiations for the proposed sale of real property, or (b) in the alternative, an order advancing the hearing on Debtor's Motion for Leave to Sell Estate Property Pursuant to 11 U.S.C. § 363(b), and For Instructions, which currently is scheduled to be heard on November 13, 2000, at 2:00 p.m. The Debtor requests that the instructions be granted ex parte, or at a hearing on said Motion as soon as possible, for the following reasons: The Debtor owns two contiguous pieces of property (identified as TMK 3-2-4-025-044 and TMK 3-2-4-025-46), that are located next to the Hilo police department. (The properties, together with another property in Laupahoehoe, secure a mortgage to GE Capital, with a principal balance of some 5330,000.) The County of Hawaii has indicated that, subject to obtaining governmental financing and approvals, it would be interested in purchasing the two Hilo properties for 5175,000. While this sum is less than the Debtor believes the properties to be worth, the price is within a range for which the Debtor understands that he should seek instructions about whether to enter into a preliminary agreement with the County of Hawaii. The County then could proceed to obtain governmental approvals and financing for a proposed sale that would be subject to Court approval. A sale - at the suggested price of 5175,000, together with the sale of the Laupahoehoe property at a fair price, should be sufficient to satisfy the GE Capital mortgage in full. Thus the Debtor asks for instructions regarding whether to accept the offer from the County of Hawaii to purchase the Hilo properties for 5175,000. If instructions may not be granted ex arte, the Debtor requests that the hearing on said Motion be heard as soon as possible. 2 This motion is made pursuant to Rules 9006(c), 2002(a)(2) and 2002(m), Fed.R.Bankr.P., and is based upon the Declaration of Debtor and the record in this cash. DATED. Honolulu, Hawaii, d /'/k~ y RANDOLPH R. SLA ON Attorney for Debtor-in-Possession 3