COM 0183.071 2006-2008 - Laserfiche WebLink

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Testimony on Bi1155, (2007) Hawaii County Council public hearing June 5, 2007 Presented by Michael Reimer, Kailas-Kona, 96740 Bill 55 is an exciting opportunity to use provisions of HRS 46 and County Code Chapter 35 to authorize the establishment of a Business Improvement District even as the center of business activity moves northwazd toward Honokohau Harbor. The general concept, to focus on the appeal of the Village Center, is admirable but it is an ordinance that is not quite ripe for deployment. As evidenced by many concerns already expressed there aze some shortfalls that need to be addressed and I am pleased that the County Council is having a public hearing on the matter and I trust they will take into consideration the need for some amendments to improve the ordinance. I am pleased to bring several items to the Council's attention that I believe suitably represent the need for some adjustments. First, the overall benefit is poorly spelled out. It is boiler plate of HRS 46 and lacks detail for the Kailua project. There is no question that this could be very close to a Christmas giveaway in June for the landlords of the property. Much of what has been proposed in Section 3, subsection (b)(i) of the Bill aze functions that should be normally provided by the landlord; for brevity I will refer to them as the three Ps; painting, power washing, and patrols. I believe special care must be taken to separate the limit of what is reasonable and proper for a landlord to provide and what is extra service provided by the BID. Will there be a rent freeze for the tenets for the duration of the District bill? Will those in zone 2, the homeowners, receive any benefit; will their sidewalks and streets receive regular power washing? Will the Aloha Ambassadors regularly patrol their condominium properties? A cost benefit analysis is lacking. I called the Chamber of Commerce. They referred me to Ms. Baker. Her office responded to me that no such study had been done. That is unfortunate in that it would lead to better review for accountability. We are told this completed project will increase revenues but without a study, this is merely an illusion. Will Norwegian Cruise lines double the number of ships visiting the Village as a result of the improvements? Second, the funding mechanism could be greatly improved. I am against levying a special assessment for this district. I would rather see the expense come from those who will directly benefit. In this time of great concern for affordable housing, another real estate tax is an enigma and unwarranted. It would be better for this improvement district to be funded by a fee assessed to business transactions conducted in the district. This can be accomplished by the County using its authority to collect fees, not taxes, from sales in the BID. This concept is already used for funding thousands of improvement projects across the nation and should be used here. Certainly in this fashion, there will not be more spent than is collectable, which is good insurance in times of economic slowdown. Further, if sales with an extra 1.75 percent fee cannot generate enough revenue to cover the costs of the BID, then the magnitude of the entire project should be rethought. ~ Comm. No. Ref. To: rn:eete7 unCi'! 3ef~ bate JUN 5 20(17 1