2026-03-09 - Minutes DRAFT 1 - Laserfiche WebLink

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back at the next meeting, which would be in May. She noted that site visits are not required, but they help commissioners better experience the properties. She further explained that scoring would take place at the July meeting using the scoring sheet and criteria set out in the rules, and that any property meeting the required threshold would be placed on the prioritized list. That list would then be included in the annual report submitted to the Mayor, who has 60 days to forward it to the County Council. She stated that, once received, the Council may review the report and adopt a resolution authorizing the Department of Finance to negotiate with a property owner for a potential purchase. DCC Campbell then explained the difference between a fee simple purchase and a conservation easement. She stated that the Charter allows the County to acquire property either in fee simple or through an easement, and that all easements acquired to date have been conservation easements. She explained that a fee simple purchase is the more typical form of acquisition, in which the County purchases the property outright, subject to the requirement that the County obtain its own appraisal and not pay more than the appraised value. With respect to conservation easements, DCC Campbell explained that the County does not become the fee simple owner of the property but instead acquires certain development rights for the purpose of restricting or eliminating future development. Using Mahukona as an example, she stated that rights such as hotel development, commercial use, and subdivision can be acquired through a conservation easement so that those uses cannot occur. She explained that the value of a conservation easement is determined by comparing the value of the property before and after the easement restrictions are applied, with the difference representing the value of the rights being given up. She noted that the County currently holds four conservation easements purchased with Preservation Fund monies. DCC Campbell stated that conservation easements are more complicated than fee simple acquisitions because the terms of each easement must be negotiated based on the specific property and the rights being given up, and because the County assumes ongoing enforcement and oversight obligations after purchase. She explained that, in the transactions completed so far, the anticipated grantor of the easement often did not yet own the property at the time negotiations began, and instead relied on the County’s easement purchase funds to help complete its own acquisition. She stated that this results in a coordinated back-to-back closing process through escrow. She further noted that, although the fee simple owner of a property subject to a conservation easement may change over time, the easement remains in place and continues to bind future owners. She used Mahukona as an example and explained that, if Hawaiian Islands Land Trust were no longer the fee simple owner, any subsequent owner would still be subject to the terms of the conservation easement held by the County. Chr. Chang asked whether, in the case of a conservation easement, the property would be assessed based on its value after removal of the development rights. DCC Campbell explained that the County hires a professional appraiser to determine the value of a conservation easement. She stated that the appraiser first determines the value of the property with all development rights intact, then determines its value after accounting for the rights that would be given up under the proposed conservation easement. She explained that the difference DRAFT v.1 BS - Minutes of March 9, 2026 Page 3