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time we, we met, when Suzanne Case was present, we kind of suggested to the chair that maybe
<br /> they should put out a request for proposal; see if people are interested in entering a memorandum
<br /> of understanding for the development of Uncle Billy's, I think we were talking about, in terms of
<br /> tearing it down and constructing onsite at the same density for that proposal and perhaps other
<br /> proposals for that were adjacent to the Naniloa area. So that's where we left it and we're here
<br /> today. So
<br /> KAHELE: After that meeting, which was I think was in the fall, DLNR did put out a request for
<br /> information for potential interest in the Uncle Billy's property. And one strategy is to look at the
<br /> peninsula parcel by parcel with probably the Uncle Billy's parcel being the one that needs the
<br /> most attention because that's the one that's closed, it's the one that has the most potential
<br /> depending on what we decide to use, use it for. So they put out a RFI and they got one proposal
<br /> back from Tower Development and they had suggestions in what to do. Demolition of Uncle
<br /> Billy's, the first thing it's gonna trigger is either an Environmental Assessment or Environmental
<br /> Impact Statement. Either of those can be $500,000 or a million dollars. It's gonna take time to
<br /> do that. After you figure you get that done, then you, demolition of Uncle Billy's is five, seven,
<br /> potentially ten million dollars because of its, it's in a Special Management area, it's in a
<br /> conservation district, and so we're looking at a very significant investment and time just to even
<br /> address Uncle Billy's. Now, what do you do with that? So, you know, it's my role as a State
<br /> Legislator is I'm looking at what types of incentives can we provide to potential developers,
<br /> whether it's tax credits or its some type of different bonds, or what, what can we do to attract
<br /> investment so the State or the County doesn't have to bear the burden of a $12 million dollar
<br /> demolition, that at the end of that $12 million dollars is just a vacant piece of land. We haven't
<br /> even built anything yet. Now, arguably, you would be able to get a higher lease for that because
<br /> the developer doesn't have to put in all that money, but it's gonna be pretty difficult to go to the
<br /> Leg for, you know, a million dollars for an EIS and $8 million for demolition for Uncle Billy's.
<br /> That's, that's going to be a challenge, there's no question. But that's where that is right now.
<br /> Request for interest on that and DLNR is waiting to respond to that.
<br /> Another thing we've suggested with, on the peninsula, is to look at a request for information to
<br /> look at a Master Plan for both the Uncle Billy's or the Country Club—and the Country Club
<br /> property. You know, what would you do if you wanted to lease both of those parcels, or develop
<br /> both of those parcels. And so that's something that DLNR's maybe looking at as well; I don't
<br /> know. Mr. Heit can speak to that, but that's where our focus is right now. How do you, how do
<br /> you come up with the financial resources to do a Master Plan. How do you come up with the
<br /> financial resources to at least do an Environmental Assessment of Uncle Billy's. And
<br /> unfortunately that has to wait until the 2019 legislative session which is a year from now.
<br /> Unless, DLNR, through their special land development fund, which they have some financial
<br /> resources, is willing to put in that investment. But, you know, that fund is used to fund a lot of
<br /> conservation and different programs and different lands throughout the State, but. You know the
<br /> other thing that we looked at as well is each property and how we maximizing highest and best
<br /> use of each property. You know, most of the leases there, the only property that is on a month-
<br /> to-month revocable permit is the Country Club property. They generate about
<br /> HEIDENFELDT: Reeds Bay too.
<br /> KAHELE: Is on a month-to-month? Okay.
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<br /> Banyan Drive Hawaii Redevelopment Agency
<br /> July 25,2018 Minutes
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