2016-06-22 BDHRA Minutes - Laserfiche WebLink

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seniors, golfing teams, tennis, track. It’s happening in California. People like to‒‒old people like to compete. I think you can fill up the hotels. And if you eliminate Reeds Bay and Country Club Hawai‘i and the old Hilo Bay or Pagoda and make it parks, or parking space, you can probably get another 40 parking spaces on oceanfront property where Country Club Hawai‘i is. You can’t rebuild the building because of the setbacks. But you can grant us a long-term lease and we employ right now 11 people. We have the opportunity to sinew the rehabi‒‒revitalize the properties so we’re no longer a blight area. I love it when the Governor calls it a blight and they try to give the property away to Hawaiian Homes Land; they wouldn’t take it. They call it a blight area then they give the problem to the County. And I’m saying that the State is the one that created it. Department of Land and Natural Resources, Gordon. Gordon. With their antiquated land lease laws that doesn’t allow for reopening at the 20 year point, so you can’t refinance the three, or four, or five million dollars needed to renovate 146 rooms at the Country Club cause you can’t get the financing and a licensing agreement from the State of Hawai‘i. They think that’s fair. And if you do grant a lease, you ought to have a clause in there that states that any, if you, the current lessee holder, license holder does not get the new lease, they are‒‒the new leaseholder will required to absorb the debt to the vendors in the Hilo marketplace. I think Country Club Hawai‘i probably owes the vendors in Hilo marketplace, including the County of Hawai‘i and HELCO approximately $650-$700,000. It wouldn’t be fair to lack‒‒have all the vendors in the Hilo community lose. That concludes my testimony. (To Arthur Henry) Did you bring any photographs? HENRY: No, I didn’t. I‒‒ COMBS: This is my friend, Arthur Henry, who owns one of the front units. And I wanted him to bring colored photographs because you can make a purse out of a sow’s ear. His property has granite in it, Koa wood, ocean front. It’s absolutely gorgeous in the morning and in the morning sun. It is an excellent use of that property; highest and best use of that property. It’s not a parking lot. Any questions? DELIMA: Any members have any questions? TANIGUCHI: Just to clarify. It is the old Travel Lodge building that you’re talking about? COMBS: Yes. DELIMA: Okay, any other questions? COMBS: The 65-year lease expired in March 14, 2015. Difficult to operate a complex by the licensing agreement on month-to-month. Page 3 of 19 Banyan Drive Hawai‘i Redevelopment Agency June 22, 2016 Minutes