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James Arakaki John Santangelo December 3, 1997 Page 2 Perhaps the clearest example of the devaluation or taking occurs in the reduction of the in-lieu fee value for each affordable unit, which we understand is currently approximately $18,000.00 per affordable unit, and is proposed to be reduced in Bill No. 171 down to $4,655 per affordable unit in 1997 dollars. If adopted, the proposed bill would devalue each affordable housing unit credit currently held by developers to approximately only I/3 of their present value. On behalf of Pualani Estates, Inc., this will formally request that a spread sheet or other documents be provided to us for review on the methodology and assumptions used in arriving at the current approximate $18,000.00 value, and also for the proposed $4,655 per affordable unit calculation. Additionally, it appeazs that the proposed bill will allow those developers who have not timely satisfied their affordable housing requirements under their existing rezoning ordinances to return to the County Council for a reduction of their affordable housing requirements, even if those developers obtained their zoning approvals at the same time as others who may have already satisfied those requirements. This provision unfairly rewards the delay in satisfying these requirements, and places those who fulfill their requirements in a timely fashion at a competitive disadvantage. We hope that the Hawaii County Council will amend Bill No. 171 to recognize the pre-existing rights of developers who aze holding affordable housing bonus credits or have otherwise fully satisfied their affordable housing obligations and who will be placed at a competitive disadvantage as a result of adoption of Bill No. 171 in its present form. Very truly yours, CARLSMITH BALL WICHMAN CASE & ICHIKI Steven S.C. Li SSL:Iny 2003481.1.034466-2 cc: Edwin Taira, OHCD (via facsimile) Grant Johnston, Pualani Estates, Inc. Robert D. Triantos, Esq.