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J+tV Oi Mi' L-Gyi COUNTY OF HAWAII STATE OF HAWAII ......... RESOLUTION NO. 534 16 RESOLUTION AUTHORIZING THE EXEMPTION OF CERTAIN CODE REQUIREMENTS, PURSUANT TO SECTION 201H-38 AND SECTION 46-15 OF THE HAWATI REVISED STATUTES, FOR HUALALAI HEALTH, LLC, KONA, HAWAII, COVERED BY TAX MAP KEY (3) 7-5-010:061 WHEREAS, on June 01, 2006, Change of Zone Ordinance 03-69 became effective, changing the district classification from Agricultural (A-5a) to Multiple-Family Residential (RM-2.5) on the parcel covered by Tax Map Key (3)7-5-010:061 consisting of 9.262 acres (the "Property"); and WHEREAS, the Phase 1 Market Study and Rate Analysis by Integra Realty Resources, Inc. completed December 2105 reflects that the County of Hawai`i has an unmet demand for skilled-nursing of 500 beds and an unmet demand for assisted living of 273 beds; and WHEREAS, Hualalai Health, LLC, the owner for the Property and the developer of the Hualalai Kai project (the "Project") on the Property, has secured sufficient water commitments for the Project to construct 96 assisted living residences, 160 skilled nursing and long-term care residences and 35 employee housing apartments for a total of 291housing units; and WHEREAS, 91 of the 169 housing units of the Project will be affordable in accordance with Section 201H-38 of the Hawai`i Revised Statues ("HRS"); and WHEREAS, Hualalai Health, LLC members have responsibly developed and constructed assisted living facilities on Maui and Oahu; and WHEREAS, the Project will be operated by Presbyterian Retirement Communities Northwest, a faith-based non-profit organization operating 4 facilities in Washington; and WHEREAS, Hualalai Health, LLC will satisfy the affordable housing requirements of the Project by providing 56 units affordable to families earning less than 30% of median income, and 35 units to be affordable to families earning less than 140% of median income; and WHEREAS, HRS § 201H-38, in conjunction with HRS § 46-15, allows the County, with approval of the County Council, to exempt affordable housing projects from certain code requirements to facilitate the development of such projects; and WHEREAS, Hualalai Health, LLC has requested that the County exempt the Project from certain code requirements to help reduce the cost of producing the affordable housing; and WHEREAS, the project will promote the goals contained in HRS § 201H-38 and Chapter 11 of the Hawai'i County Code; and