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Form #: B-52 <br /> 7/18/91 <br /> DEPARTMENT OF FINANCE <br /> REQUEST FOR COUNCIL ACTION <br /> DEPARTMENT: Research and Development DATE: April 22, 2013 <br /> STAFF CONTACT: Jeff Melrose PHONE: x8947 <br /> A. REQUEST: <br /> To allow the Department of Research and Development to accept a $60,000 grant from the State <br /> Department of Agriculture. The following expenditure accounts are also requested: $59,000 for <br /> miscellaneous contract services and $1,000 for advertising. <br /> Waive: Finance Committee due to the limited timeframe. County needs to enter into a grant agreement <br /> with the Department of Agriculture, who is required to encumber their funds prior to June 30, 2013. <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br /> The acreage on Hawaii Island producing diversified agricultural crops has significantly increased in the <br /> Hilo/Hamakua areas following the shutdown of the sugar plantations. In the area between Puna and <br /> Hamakua there is 1800 acres in tropical fruit production, 2000 for truck crops, over 2000 acres in papaya <br /> production,as well as hundreds of acres in foliage, macadamia, cocoa, heart of palm, and greenhouse <br /> tomatoes. Hilo's deepwater harbor facility and international airport provides an avenue for local products to <br /> access export markets. <br /> The Hawaii Department of Agriculture is offering $60,000 of funding to Hawaii County to support the <br /> development of a food processing facility to benefit agricultural producers in the Hilo/Hamakua area. R & D <br /> would conduct a solicitation for proposal requesting facilities planning, design and permitting. <br /> The proposed processing facility in the Hilo/Hamakua area will serve the community by enabling locally <br /> produced fruits and vegetables to be created into valued added products. Examples of value added <br /> products might include: juices, extracts, fruit leather, seasonings, tea, salad dressings,puree, fortified <br /> beverages and/or frozen fruit. The ultimate goal is to use locally grown products to develop new products for <br /> sale locally and abroad. <br /> SIGNED: g4445; DATE: 4/22/13 <br /> ep3Afrient Head <br />