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HomeMy WebLinkAboutRES 158 Draft 01 2020-2022 COUNTY OF HAWAI‘I      STATE OF HAWAI‘I RESOLUTION NO. _______ __ DECLARING THE INTENTION OF THE COUNTY OF HAWAI‘I TO ESTABLISH A COMMUNITY FACILITIES DISTRICT, DESIGNATED AS HAWAI‘I COUNTY COMMUNITY FACILITIES DISTRICT NO. 1-2021 (KALOKO HEIGHTS PROJECT), TO AUTHORIZE FUNDING FOR PRESCRIBED SPECIAL IMPROVEMENTS, TO AUTHORIZE LEVY OF A SPECIAL TAX, AND TO AUTHORIZE ISSUANCE OF BONDS SECURED BY PROCEEDS OF THE SPECIAL TAX WHEREAS, RCFC Kaloko Heights, LLC, a Delaware limited liability company, Kaloko Heights BIA Holdings, LLC, a Delaware limited liability company, and Kaloko Heights Investors, LLC, a Delaware limited liability company (collectively, together with their successors and assigns, the “Petitioner”) are developing a project, known as “Kaloko Heights,” consisting of single family residential, multiple family residential, commercial, and open uses at Kaloko and Kohanaiki, North Kona, Hawai‘i (the “Project”); and WHEREAS, in connection with the Project, the Petitioner proposes to construct certain special improvements (the “Improvements”) consisting of a sewer line extension and related improvements that will serve the Project and other properties that may be connected to the Improvements in the future, including the Hawai‘i Island Community Development Corporation’s affordable housing development to be constructed in the vicinity of the Improvements; and WHEREAS, on March 28, 2019, the County Council of the County of Hawai‘i (the “Council”) adopted Resolution No. 86-19 which authorized the construction of the Improvements; and WHEREAS, by Petition dated January 29, 2020 (the “Original Petition”), the Petitioner requested the County’s assistance in financing the Improvements through the formation of an improvement district and issuance of bonds pursuant to Chapter 12, Hawai‘i County Code; and WHEREAS, pursuant to Resolution No. 502-20 adopted on March 11, 2020, the Council accepted the Original Petition and authorized the initiation of proceedings for the formation of an improvement district pursuant to Chapter 12, Hawai‘i County Code; and WHEREAS, although Resolution No. 86-19, the Original Petition and Resolution No. 502-1 contemplated that the Improvements would be constructed through the establishment of an improvement district and issuance of bonds pursuant to Chapter 12, Hawai‘i County Code, the Petitioner and the County of Hawai‘i Department of Finance have jointly determined, upon consultation, that it would be more appropriate to construct the Improvements through the establishment of a community facilities district and the issuance of bonds pursuant to Chapter 32, Hawai‘i County Code. WHEREAS, in view of such determination, the Petitioner has submitted a new Petition dated June 24, 2021 (the “Petition”) whereby it (i) has withdrawn the Original Petition and its request thereunder for the County’s assistance under Chapter 12, Hawai‘i County Code, and (ii) is requesting, in accordance with Section 32-18(a), Hawai‘i County Code, that the Council: (a) institute the procedure for the establishment of a community facilities district pursuant to the provisions of Chapter 32, Hawai‘i County Code, by adoption of a Resolution of Intention pursuant to Section 32-20, Hawai‘i County Code, and (b) undertake and carry out any and all things necessary to complete and establish the community facilities district at Kaloko and Kohanaiki, North Kona, Hawai‘i. WHEREAS, in response to the Petition, the Council proposes (i) to establish a community facilities district (the “Proposed District”) within the County of Hawai‘i (the “County”) under the terms of Chapter 32 of the Hawai‘i County Code (“Chapter 32”), with the boundaries of the Proposed District to be as shown on the Boundary Map, which is attached to the Petition and on file with the Director of Finance of the County, and (ii) to provide for the issuance of one or more series of bonds (the “Special Tax Bonds”) pursuant to Article 6 of Chapter 32 (all references hereafter in this resolution to Articles and Sections shall be deemed to be references to the corresponding Article or Section as set forth in Chapter 32 unless indicated otherwise) in an aggregate principal amount not to exceed $22,000,000 to finance (a) all or a portion of the costs of the special improvements (the “Improvements”) described in Exhibit A attached hereto, and (b) all or a portion of certain “incidental expenses,” as defined in Section 32-16 and more particularly identified in Exhibit B attached hereto (the “Incidental Expenses”), which Exhibits are, by this reference, incorporated herein and made a part hereof; and WHEREAS, the Special Tax Bonds shall be secured by the special taxes to be levied upon taxable property in the Proposed District, as herein provided; and WHEREAS, the Council further intends, except where funds are otherwise available, to provide for the annual levy of a special tax upon the taxable parcels within the Proposed District (the “Special Taxes”) in an amount sufficient to pay for the costs of the Improvements and Incidental Expenses, including the debt service on any Special Tax Bonds issued to finance or refinance any Improvements and Incidental Expenses, said Special Taxes to be calculated in accordance with the rate and method of apportionment thereof (the “Rate and Method of Apportionment”) set forth in Exhibit C, attached hereto and by this reference incorporated herein and made a part hereof; and WHEREAS, the Council intends to establish the Proposed District for a term of sixty (60) years, commencing with the fiscal year ending June 30, 2022, subject to the further provisions hereof regarding such term; and WHEREAS, in connection with the proceedings for an improvement district and improvement district bonds originally contemplated under Chapter 12, the County and the Petitioner entered into a Deposit and Reimbursement Agreement dated May 17, 2019 (the “Original Deposit and Reimbursement Agreement”) pursuant to which the Petitioner (i) initially deposited the sum of $75,000 with the County for the purpose of paying costs incurred by the County in connection with the then-proposed establishment of an improvement district and issuance of improvement district bonds under Chapter 12, Hawai‘i County Code, and (ii) agreed to replenish such deposit as needed for such purpose upon request of the County; and WHEREAS, in view of the withdrawal of the Original Petition and submission of the new Petition, the Petitioner proposes to enter into an Amendment to Deposit and Reimbursement Agreement (the “Amendment to Deposit and Reimbursement Agreement”) with the County for the purpose of amending the Original Deposit and Reimbursement Agreement so as to provide for the funding of costs incurred by the County in connection with establishment of the Proposed District and issuance of Special Tax Bonds under Chapter 32; and WHEREAS, Section 32-20 provides that proceedings for the establishment of a community facilities district pursuant to Chapter 32 shall be instituted by the adoption of a resolution of intention containing the matters set forth in said Section 32-20, as provided hereafter in this resolution; now therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I that. 1. The Council hereby finds and determines that: (a) the Petition satisfies the requirements of Chapter 32 pertaining thereto; (b) the Petition is signed by authorized representatives of the owners in fee simple of all of the land to be included within the Proposed District; (c) there are no lessees of the land to be included within the Proposed District who, by the express terms of any existing leases, are obligated to pay the Special Taxes; (d) appropriate provision has been made under the Original Deposit and Reimbursement Agreement, as amended by the Amendment to Deposit and Reimbursement Agreement, to ensure that sufficient funds have been and will be provided to pay the costs to be incurred by the County in connection with the formation of the Proposed District and issuance of the Special Tax Bonds and, accordingly, no additional deposit of funds by the Petitioner will be required for such purposes; and (e) the establishment of the Proposed District is in the public interest. 2. The Proposed District is to be established under the terms of Chapter 32 and shall be named the Hawai‘i County Community Facilities District No. 1-2021 (Kaloko Heights Project).