2008-08-22 TSKCDP - Laserfiche WebLink

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TSUCHIDA: Well, that was the calculation from the consultant’s report. These are not our numbers; we are just quoting what was in that report, which in turn was commissioned by the County. WOODWARD: Is that fair? TSUCHIDA: That’s not for me to say. WOODWARD: No, it’s not. Okay, next. Page 137 -. WATANABE: Mr. Woodward. WOODWARD: Yes, sir. I only have one more. WATANABE: Can I have -. YUEN: No, I can give you a little background on -. WOODWARD: Okay. YUEN: The concept there. This is something that hasn’t been adopted, but it’s one proposal to finance a second road out of Waikoloa Village. And the idea, it’s not actually that all new houses would pay the elevated fee, but new houses in certain areas that are currently un-subdivided would pay the larger fee. So if you happen to have a vacant lot in a current subdivided area, you might, if this proposal went through, my understanding is that the higher fee -. Well, the basic idea is that you would have this bond that would be financed by charges on people in the community, and that there’s, the un-subdivided areas are largely toward the northern or Waimea end of Paniolo, and the developers of that area see some benefit to them in having a second access directly to Queen Kaahumanu because their own residents can scoot out much more quickly to the main Highway and to their final destination. So they would want this road, and as a way of financing the road, they put this fee on the lots that they sell. And at the point when you do the Community Facilities District, their lots are un-subdivided, so they vote their area, and then they are making a business decision that they can get people to buy into their area with the back road and carry that fee. Now, the people who are already living in Waikoloa Village, there is no way to make them pay for a fee like this unless they vote to do it. You can make people who don’t vote to do it pay, if the majority votes to do it; but if you set the fee at a level that the majority of the people say, “We are not going to vote for it,” then they won’t. And so there is a political element in how you assess this for the existing residents versus people who choose to come in and pay – to buy a lot that has this fee assessed against it versus somebody who already is on a lot. So that’s an explanation of why there is the differential, besides the fact that the benefit of the second road is more direct to the lots that are in the northerly part of the development. WOODWARD: Thank you, Mr. Director. But I would say to you that if you look at this, if it’s a 20-year bond and somebody builds a new house, they are putting $30,000 up and EXHIBIT E 11