RES 072 Draft 01 2014-2016 - Laserfiche WebLink

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Improvement District shall be compiled by the Department of Environmental Management. Kind, Extent and General Details of the Proposed Improvements. The special improvements shall consist of a public sewer system (the "Sewer System") consistent with applicable Department of Environmental Management standards, which shall be owned, operated, and maintained by the County. The special improvements shall include the installation of laterals for each currently existing assessment unit within the Improvement District that would not be exempt from assessment based on current usage. 4. No Acquisition of Land Required; Required Easements or Other Use and Occupancy Agreements. The construction and installation of the Sewer System for the Improvement District will not require the acquisition of land. The construction and installation of the sewer system for the Improvement District will, however, require the acquisition of 10 -foot wide easements over seven parcels as identified in the Director's Report. 5. Part or Proportion of the Cost of the Improvements to be Borne by the County. The total cost of the design, instruction and installation of the Sewer System, including the acquisition of the parcels described in the preceding section (collectively, the "Project Costs"), is estimated to be $6,461,800, which is anticipated to be financed by: a. A grant from the U.S. Department of Agriculture Rural Development ("Rural Development") in the amount of $4,024,800 to be applied against the Project Costs; and b. A 35 -year loan from Rural Development to the County in the amount of $2,437,000 which loan shall be evidenced by a bond of the County (the "Improvement District Bond") and repaid out of the proceeds of assessments to be assessed to the owners of assessment units within the Improvement District. Pursuant to sections 46-74.1 and 46-74.2, HRS, and section 12-5, Hawaii County Code, the assessments for ten properties owned by qualifying nonprofits will be paid for by the County. The preliminary total cost is $294,525.56 ($16,134.10 annually) for 32.4 SFEs. The County of Hawaii shall bear the customary operating costs of loan management by its Department of Finance -Treasury Division for the 35 -year duration of the Improvement District Bond. These costs will be partially offset by charging a collection fee as specified in chapter 12, Hawaii County Code. A prepayment penalty for early payoffs and out-of-pocket transaction costs associated with property transfers will also be assessed. 4