2018-07-19 Letter to Don Rudny re Email dated July 13, 2018 regarding Puna Property addressed to: Wil Okabe, Harry Kim and Valerie Poindexter

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Harry Kim Mayor County of Hawai`i Office of the Mayor Wil Okabe Managing Director Barbara J. Kossow Deputy Managing Director 25 Aupuni Street, Suite 2603 • Hilo, Hawai'i 96720 • (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 (808) 323-4444 • Fax (808) 323-4440 July 19, 2018 Mr. Don Rudny PO Box 106 Pepeekeo, HI 96783-0106 RE: Email dated July 13, 2018 regarding Puna Property addressed to: Wil Okabe, Harry Kim, Valerie Poindexter Dear Mr. Rudny, Thank you for your email and concern regarding the county grossly under assessing higher valued properties. I agree, there was a large difference between the County's assessed value of parcel 1-4-002-022-0000 at $1,000,000 and the agreed purchase price of $2,700,000. Let me share some information that accounts for a considerable amount of that difference in value. The cultural value of this property was taken into consideration for the purchase, however, the typical speculative purchaser of this property would consider the cultural aspect of it as "undevelopable" with regards to development. In addition, there is a considerably sized burial site documented with the State Historic Preservation Division (which we do not advertise or express to the media for the protection of these sacred sites) which any potential owner/buyer would need to grant descendants of these iwi (bones) access indefinitely. There is currently not enough water rights for a subdivision to be built that would be possible with the lower density zoning the property had. This is taken into consideration by Real Property Tax along with market sales of other vacant land in determining the assessed value. Tide pools were noted in areas of this parcel and a shoreline setback survey was also required which left the total developable acreage as questionable to the open speculative market. The Real Property Tax office is required by law to set the value based on the price a typical buyer would pay. This parcel was, without a doubt extremely valuable in terms of preserving and protecting historical, cultural and shoreline land. However, from County of Hawaii is an Equal Opportunity Provider and Employer.