Applicant Response Letter to Leeward Commission dated 12-1-21

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Mr. Michael Vitousek, Chair December 1, 2021 Page 3 b. This area and region will continue to be service 1 by its stations in Waimea and North Kona. The issue is not infrastructure but staffing. In that regard, Kumu Hou will generate considerable revenue via the .eal property tax and Transient Accommodation Tax (TAT) or what has been tcelmically referred to as Time Share Occupancy (TSO)tax. These revenues v ill stay with the County and should thus enable the funding of more public s ifety personnel. (It was reported in the applications that upon build out, the real )roperty tax revenues alone—and not including TAT and/or TSO taxes for the eni ire resort—would generate approximately $14 million annually in 2020 do lars.) 3. Timing of Workforce Housing. The Commission e mphasized the need to have a timetable for the availability of the workforce hous ng. In discussing this with the potential developer, the Applicant is agreeable to a condition that would assure its opening no sooner than the issuance of any timesh,re occupancy permit. This should help incentivize its completion. The Applicant would like to suggest that the follov ing condition be made a part of the Project District Ordinance (PL-REZ-2021-000( 05): "As represented by the Applicant, the Applicant sh 711 cause the development of a workforce housing project on a property identified by TMK: 6-9-008:032 in accordance with mutually agreeable terms betwee)! the Applicant and the County Office of Housing and Community Development. i he terms shall be established in a workforce housing agreement and shall include the Applicant's infrastructure construction and land conveyance obligations and operational considerations such as tenant income and other eligibility criteria. An occupancy permit for the first workforce housing unit shall be obtained no later i han issuance of an occupancy permit for any time share unit within the area cow red by this ordinance. " 4. Estimated Construction Timetable During the course of the hearing,the Commission wanted to have information regarding the project's construction timetable. In t hat regard, we would like to share the following. Area A, which is covered by SMA 2021-000002 a id REZ 2021-000004, is designed to accommodate the relocation of Hilton Grand V,cation's (HGV) planned 264 existing entitled and zoned multiple-family resider tial units from portions of the area designated for the proposed 900 multiple-family rf sidential units within the Project District area. The latter area is covered by SMA 2021-000004 and REZ 2021-000005.