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~tv w <br /> <br /> Harry Kim ` ~y William Takaba <br /> Mayor ~ Director <br /> Nancy E. Crawford <br /> ~ oi~wi.~ Deputy Director <br /> County of Hawaii <br /> Finance Department <br /> 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720 <br /> (808) 961-8234 • Fax (808) 961-8248 <br /> n.. <br /> August 1, 2007 _I <br /> i <br /> Pete Hoffmann, Chairperson and <br /> Members of the Hawaii County Council <br /> Hawaii County Council <br /> 25 Aupuni Street <br /> Hilo, Hawaii 96720 <br /> Re: Bill Submittal for Amending Chapter 32, Hawaii County Code <br /> The proposed amendments in the referenced bill are intended to improve the <br /> Community Facilities District (CFD) process by changing the timing and focus of <br /> the required appraisal. Also included are changes proposed to clarify the <br /> applicability of special taxes within a district to owners or lessees of record. <br /> Currently, Chapter 32 requires that prior to the establishment of any CFD, <br /> Council must find that the value of the land plus the proposed improvements is at <br /> least two times the cost of the improvements, based on prevailing appraisal <br /> standards. This requirement is unique to County of Hawaii and has not been <br /> found in other CFD enabling legislation. In a case such as Kamakoa at Waikoloa, <br /> the land carries very little value due to the deed restrictions. In any area without <br /> high value land this requirement will be difficult to meet and could prevent some <br /> very worthwhile projects. <br /> The appraisal requirement also comes very early in the process and without <br /> regard to the amount of CFD bonds that a developer may be planning to request <br /> in a bond ordinance at a later time. While there is no requirement in this Chapter <br /> that another appraisal be done at the time of a bond ordinance, such an <br /> appraisal will be required by the financial underwriters. The need for two <br /> appraisals creates a cost that is ultimately born by the residents of the CFD. <br /> For the above reasons, we propose deleting the appraisal requirement in the pre- <br /> formation section of Chapter 32 and adding a section tying appraised value <br /> requirements to the authorization for issuance of bonds. New proposed <br /> language requires that the value of the land plus the proposed improvements is <br /> Comm: Na 7• <br /> Ref. To: <br /> Hawaii County is an equal opportunity provider and employer. Ref. ~@ <br /> <br />