2008-01-11 TPDKOHALA LLC - Laserfiche WebLink

Home

merits until after you’ve discussed the Planning Director’s Agenda Items 4.a. and 4.b., if that’s okay. WATANABE: Okay. Do we have any questions for the applicant’s representative? Hearing none, I do have couple of questions. I was looking through the notes, and you bought the property back in July, I believe it was, of 1999, or your client did anyway, yeah? And in looking at some of the correspondence apparently Gentry satisfied the 10 percent affordable housing requirement. So that is something that has been invested since the property was rezoned to RS-15. And it appears you have also successfully negotiated an easement under the road. Because I think it was Condition I, is that where all utilities should be underground? LIM: Well, that’s part of the reliance factor by the applicant. I was going to get into that more later, but yes. Part of the activities that occurred, including the satisfaction of the affordable housing requirement, were done prior to the purchase of the property by my client. But the point is I think that regardless of who did it my client essentially buys the property with existing entitlements. So that’s reflected in the purchase price. WATANABE: Yeah, but my question really is, now I noted two things -. And at today’s prices a housing credit runs somewhere in the neighborhood of $70,000 to $75,000 per credit. Ten percent in this case was five units, which would convert at that rate to about $375,000 roughly. But I’m wondering if I covered everything. Did I miss anything? LIM: In addition to the governmental required items to develop the property, the property also comes with a water agreement that’s with the Kohala Ranch Water Company. We essentially have a commitment for 76,000 gallons per day. And no matter what is developed on the property, whether it’s one house or 50 homes as the permits allow, the applicant is going to have to pay in excess of a half a million dollars for that water, no matter what. So that’s why I say -. WATANABE: Okay. That wasn’t clear to me. So, again, that was how much per year? LIM: It’s a one-time payment for reimbursement for the waterline that comes from the Kohala Ranch mauka down across the Kohala LLC property and over to the, I think it was called the Kohala Waterfront property. WATANABE: Okay, that commitment is for how much? LIM: Seventy-six thousand gallons per day. And the payment is over half a million dollars. I don’t have the exact number. I think it’s in the neighborhood of $640,000, but I’m guessing. WATANABE: Roughly $600,000 then? LIM: That’s correct. EXHIBIT C 9