2017-07-26 BDHRA Minutes - Laserfiche WebLink

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there's any clarifying questions with respect to those actions on the Uncle Billy's property that you'd like clarification on. He is here, so, we do have DELIMA: Mr. Taniguchi. Barry. TANIGUCHI: Gordon, what was the rationale for allowing them permit versus denying the other one? Why was Tower given a permit? HEIT: Okay so, Tower came to us, DLNR and the Board, with the idea that they could secure the property for a cost that was less than the State would be able to secure for, and do it aesthetically more enhancing job than we could. I guess their interest was that because they're adjacent to this property that their guests would feel better if there had a more pleasing aesthetic look to the property adjacent, rather than just a stark-looking abandoned property that's fenced off So that's why they approached us. TANIGUCHI: Do they intend to use that property for their like gatherings HEIT: No, the permit that we're issuing to them is strictly for security purposes. So the agreement is that they will secure the property, fence it off, and they will not be able to use the property for any commercial or business purposes; strictly for security purposes and management of the property. DELIMA: So my understanding is that the structure has to be torn down at some point. And the State doesn't have the funds at the present time to finance the teardown; that's my belief, because there's no appropriation that was done at the last session to do so. Tower Development is paying for the fencing and the—they're eating the cost of the present time for the month-to- month? HEIT: Yeah, again the agreement them as agreed to at the Land Board meeting, July 14, was they would, we're issuing a month-to-month revocable permit for security and property management purposes in addition to Tower erecting a security fence, and will be paying us one thousand dollars a month for the property. As far as going back to yourdemolition, we hired consultants to come up with a proposal for what the cost would be for demolishing the property. We're still evaluating that proposal. We're also drafting a request for interest in some future development of the property that would include inclusive of the demolishing of the property and restructuring, or build a new structure on the property, so we're kind of still in the development stages of that. DELIMA: Okay. If the DLNR put out such a request, it would have to be by auction, correct? HEIT: Correct. DELIMA: Okay, now because we're an agency, similar to what the Aloha Tower did, a redevelopment agency could actually ask for request for proposals and evaluate proposals on the merit of the proposals, could we not? HEIT: I believe so, yes. Page 5 of 10 Banyan Drive Hawaii Redevelopment Agency July 26,2017 Minutes