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p/' 100 Kahclu Acenuo ~~ii LJJ[ Vililani, Ha~tai i yo7dy-3~~~~; mi~ll'' P.O. Bo.~ SoAV00 e%Ca-isfai ~ Vlililani, Ilawa't'i 9a; d9-dufNi July 1Q 2007 lan~~:,+s-eau ~r~>~isuai.;+n-oa;u The Honorable Pete Hoffman Council Chair & Presiding Officer Hawai i County Council 25 Aupuni Street Hilo, HI 96720 By Fax: 808-961-8912 and E-Mail: counciltestimony@co.hawaii.hi.us RE: BILL 112 -Relating to Affordable Housing -OPPOSE WITH COMMENT Hawai i County Council Meeting, Tuesday, July 10, 2007 - 9AM Aloha Chair Hoffman and Councilmembers: I am Bruce Barrett, Executive Vice President of Castle & Cooke Homes Hawaii, Inc. Castle & Cooke strongly opposes Bi11112. In general, exactions that legitimately address project impacts should be imposed as explicit, upfront conditions to obtaining entitlements at State land use or County zoning, and not conditions to subdivision. Subdivision is traditionally a ministerial process after substantial planning and investment have already occurred in reliance upon entitlements. Castle & Cooke submits that as a matter of basic fairness, a costly and unforeseen affordable requirement should not be imposed on a fully entitled project already under development like our Wehilani project in Waikoloa Village. We fully support programs and legislation that provide incentives to encourage development of affordable housing for local families. Rather than mandate the construction of affordable housing, we feel that the County should provide incentives to promote the development of affordable housing to reduce the cost and risk of development, thereby encouraging the private sector to develop more affordable housing. We believe that Bill 112 will negatively impact the supply of housing because it makes it infeasible to complete and go forward with entitled projects already under development, like our Wehilani project. We respectfully request the County Council's consideration of the following factors and circumstances with respect to Bill 112 generally, and in particular, its unfair impact on ~ our ability to complete the Wehilani project. It has been Hawaii's traditional practice to exact conditions at the entitlement process; at tit the State land use and county rezoning processes. This practice results in predictability; helps to define land planning up front and commitments for the future; and, allows developers and state and county governments to plan and fund development accordingly. o Bill 112 contradicts this practice by creating an affordable housing requirement at the r o~e~° Castla & Cooke Ha~cai'i amsiats of the H~~eai'i euhsidiarics of lasde A Cooke, [nc. ~chich inelude Casdc ~ Ciwke Hnmcs Ila~a~~ii, Inc, Cuala Z l'oo'ae Pr~~pertio~, tn., Cade Cooke R~urts, 1.LC and other subsidiazies