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2E. Burdens of IAL: A change to IAL for parcel 055 comes with increased land use burdens <br />imposed retroactively; and a likely loss of property value due to the strict regulation (note that <br />this would be in addition to the current County effort to repeal non -dedicated agricultural <br />exemptions and to impose acreage minimums). A change to IAL would therefore cause Parcel <br />055 an "unreasonable economic hardship" which cannot be prevented. Thus parcel 055 should <br />be continued in a LDU designation. An alternative would be to change the LUPAG for parcel <br />055 to "Rural" (see also the conclusion of these comments for another possible land use <br />category). Designating a small farm for IAL could actually hurt the chances of anv kind of <br />agriculture being conducted. Although incentives are supposed to support the IAL program, <br />these incentives are may not apply to micro or small farms. The regulations of IAL might result <br />in long fallow periods. The burdens might be offset to some extent from having pre -IAL <br />grandfathered uses. <br />2F. IAL Can Affect Land Values: Using parcel 055 as an example: with a $250,000 purchase <br />price for 3.9 acres of land, the cost per acre is apx. $64,000 per acre (not counting the farming <br />expenses of supplies, machinery, overhead, etc.) The Institute for Local Self Government <br />(California) reported six years ago that even the most lucrative fruit and nut crops would only <br />support land values of $5,500 per acre. So the break-even in the best of circumstances would be <br />015 years or more. Many parcels nearby parcel 055 were purchased at even higher per acre <br />amounts and have been improved with more elaborate and expensive homes which makes <br />agriculture even less feasible. In Hamakua even seasoned large farms are finding it difficult to <br />stay in business: one example is Richard Ha who closed his Hamakua Springs Farms because it <br />was no longer profitable, http://www.biziournals.conV acific/news/2016/01/06/big-islands- <br />hamakua-springs-country-farms -shuttin�.ht. The 2005 General Plan at section 14.2.1 Land <br />Use Agriculture states: "Agricultural land values have risen beyond their value for agricultural <br />purposes.... One of the key factors in adjusting to changing socio-economic conditions is the <br />restructuring of our land use regulatory system to distinguish between important and <br />other agricultural land." Land where agriculture cannot support a living wage can never be <br />IAL. Lumping all the parcels higher than some arbitrary elevation into IAL without considering <br />productivity does not properly characterize "Important Agricultural Land" or mean that any <br />agriculture will be feasible. It does risk many unintended consequences and hardship for the <br />owners of such parcels. The 2005 General Plan at section 14.3.5.3 North Hilo states: <br />"Commercial development is limited in the North Hilo district.... Population in the district <br />has been declining over the past thirty years." North Hilo and particularly Laupahoehoe <br />needs the County to help them: not to restrict their options by imposing the burdens of IAL. As <br />the 2005 General Plan section 15.1 states: "Regulations rely on government's police power <br />to control what people can do or not do ... Regulation can be restrictive, reactive, and <br />divisive. Incentive measures, on the other hand, can invite creative "win-win" solutions. <br />Examples of incentive measures include property tax exemptions such as for <br />agriculture.... Community Development Plans shall consider appropriate incentive <br />measures to achieve various objectives...." The CDP should be opting to give micro or small <br />farms and the rural homestead lands support and flexibility of how to operate so there is some <br />incentive to engage in agriculture. Even without any "support", the property owners on <br />