MIN CHARTER 2019-01-25 (2018-2020)

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Hawai`i County Charter Commission -7 January 25, 2019 idea of being able to offset up to a hundred percent of her ranch income with a deduction that can be carried forward up to 15 years. This special treatment of the donation was enacted by congress a few years ago specifically to help farmers and ranchers. So she says "I'll take half of the cost of the easement up front and take the other half as a charitable deduction." Bingo. The County is able to save in this case, 50 percent of the money it otherwise would have had to spend if deduction, if the deduction were not available. CA -7 must be dropped because the Internal Revenue Service requires that all conservation interests that are donated must be in perpetuity if the deduction is to be available. Period. I am sorry the drafter of CA -7 did not know this or I am sure they never would have proposed it. CA -7 will deprive Hawai`i Island ranchers and farmers of tens of millions of dollars in potential funding for protection of their land for the public benefit. It will drive away matching funds and what is the corresponding benefit to the people of this County from this amendment? Nothing. CA -13 is also fatally flawed. Again it shows a lack of understanding of land conservation by allowing money to be diverted from the fund whenever the Administration deems there to be an emergency. This idea superficially sounds sort of reasonable however it really makes the land fund inoperable and here is why. Land protection deals sometimes take years to complete, sometimes decades. How can a project ever be completed if there is no certainty that the money for it will even be in the land fund. How can the County in good faith sign a purchase and sale agreement with a willing landowner if the money might be removed from the land fund at any time? It can't. No landowner and no conservation organization is going to invest the immense amount of time and money, excuse me, it takes to do land protection if the necessary funds to close the deal might be taken away at any time. Mayor Kenoi raided the land fund and the voters went to the polls to prevent it from happening again. Now this Administration is trying to resurrect the very loopholes the people sought to close with previous votes. CA -7 and CA -13 are at best fatally flawed and at worst a cynical attempt to thwart the will of the voters and promote irresponsible development. They must not be allowed to proceed. I will be very brief about a CA -9 in contrast to CA -7 and CA -13, it improves the operation of the land fund and increases its effectiveness. There will be a County employee dedicated to and expert in the operation of the fund. This will be a great help in attracting matching funds and willing partners to take on some of the burden of these projects. So please support CA -9 and support rather than hinder the taxpayers expressed intention that the land fund not be drained away for other uses contrary to their belief and expectation. Thank you. CHR. ADAMS: Thank you. Mr. Dean you are next and if I could ask Ms. Hecht to come up. Go ahead Mr. Dean. Page 15