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HomeMy WebLinkAboutBIL 065 Draft 01 2020-2022 AN ORDINANCE AUTHORIZING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, DESIGNATED AS HAWAI‘I COUNTY COMMUNITY FACILITIES DISTRICT NO. 1-2021 (KALOKO HEIGHTS PROJECT), INCLUDING THE TERM AND BOUNDARIES OF THE DISTRICT, THE IMPROVEMENTS AND INCIDENTAL EXPENSES TO BE FUNDED THEREBY AND THE MAXIMUM PRINCIPAL AMOUNT OF BONDS TO BE ISSUED FOR SUCH IMPROVEMENTS AND INCIDENTAL EXPENSES; AUTHORIZING THE LEVY OF A SPECIAL TAX ON PROPERTIES WITHIN SUCH DISTRICT AND THE RATE AND METHOD OF APPORTIONMENT FOR THE SPECIAL TAX; AND MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING THE DISTRICT, AND AUTHORIZING CERTAIN FURTHER ACTIONS WITH RESPECT THERETO. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I: SECTION 1. Purpose of Ordinance; Preliminary Findings and Determinations. The purpose of this ordinance is to provide for (a) the formation of a community facilities district to be known as the “Hawai‘i County Community Facilities District No. 1-2021 (Kaloko Heights Project)” (the “District”) pursuant to the provisions of Chapter 32, Hawai‘i County Code 1983 (2016 Edition, as Amended) (“Chapter 32,” with all references herein to Articles and Sections, unless otherwise defined, being intended to mean and refer to the appropriate Articles and Sections within Chapter 32) and (b) the levy of the special tax on properties within the District (the “Special Tax”) pursuant to Chapter 32. In furtherance thereof, the Council (the “Council”) of the County of Hawai‘i (the “County”) hereby finds and determines as follows: (a) The Council has received a signed petition dated June 24, 2021 (the “Petition”) from 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, the “Petitioner”), requesting that the Council initiate proceedings pursuant to Chapter 32 to form the District, the boundaries of which are shown on a map attached as Exhibit C to the Petition and filed with the Director of Finance of the County (the “Boundary Map”), for the purpose of financing the acquisition and construction of the special improvements (the “Improvements”) described in Exhibit B to the Petition. (b) In response to the Petition, the Council adopted Resolution No. 158-21 on July 7, 2021 (the “Resolution of Intention”) to authorize the initiation of proceedings for the establishment of the District, the funding of the cost of the Improvements and incidental expenses pertaining to the District (“Incidental Expenses”), the levy of the Special Tax and the issuance of bonds secured by the Special Tax (the “Bonds”). (c) The Resolution of Intention further directs the Director of the Department of Environmental Management to study the District and the Improvements and prepare and submit to the Council a report thereon (the “CFD Report”) within sixty (60) days after the adoption of the Resolution of Intention as provided in Section 32-21. The CFD Report, dated July 30, 2021, has been prepared and submitted to the Council, as provided in the Resolution of Intention, and has been filed with the records of the meeting of the Council held on August 18, 2021. The Council is relying on the information contained in the CFD Report in making the findings and determinations set forth in this Ordinance. (d) Pursuant to the Petition, the Petitioner: (i) represents that it is the owner of one hundred percent (100%) of the land shown on the Boundary Map which is not to be exempt from the Special Tax, and there are no lessees of such land who, by the express terms of any existing leases, are obligated to pay the Special Tax; and (ii) waives the right to a public hearing on the establishment of the District as provided in Section 32-24. Accordingly, the Council has determined pursuant to the Resolution of Intention that it is unnecessary to conduct a public hearing or give notice of public hearing prior to the adoption of this Ordinance. SECTION 2. Further Findings, Determinations and Orders. In accordance with the applicable provisions of Chapter 32, the Council hereby finds, determines and orders as follows: (a) Formation and Name of the District. The Council hereby finds and determines that the establishment of the District is in the best interest of the people of the County of Hawai‘i and, accordingly, hereby orders the formation of the District in accordance with Chapter 32 and the further provisions hereof. The District shall be known as “Hawai‘i County Community Facilities District No. 1-2021 (Kaloko Heights Project).” (b) Term of the District. The term of the District shall be sixty (60) years, commencing with the fiscal year ending June 30, 2022; provided that the term of the District shall not expire in any event until such time as all debt service on any Bonds and other debt incurred pursuant to Chapter 32 and all Incidental Expenses that are due and payable with respect to the District have been fully paid or payment duly provided for. (c) Boundaries of the District. The boundaries of the District shall be as shown on the Boundary Map, a copy of which is on file in the office of the Director of Finance of the County, and shall include the parcels of land more particularly described in Exhibit D attached hereto. (d) The Improvements to be Financed by the District. The Improvements authorized to be financed by proceeds of the Special Tax and/or the proceeds of sale of Bonds, if issued, shall be the special improvements described in Exhibit A attached hereto and by this reference incorporated herein. As stated in the CFD Report, the costs of the Improvements are currently estimated to be $11,496,724. Funds to pay the costs of the Improvements shall be disbursed in accordance with the Project Funding Agreement (as hereinafter defined). (e) The Incidental Expenses to be Paid from the Special Tax and the Bonds. The Incidental Expenses authorized to be paid from the proceeds of the Special Tax and/or the proceeds of the sale of Bonds, if issued, shall be the Incidental Expenses described in Exhibit B attached hereto and by this reference incorporated herein. (f) The Rate and Method of Apportionment of the Special Tax. The Special Tax shall be determined and apportioned in accordance with the Final Rate and Method of Apportionment (the “RMA”) in the form attached as Exhibit C hereto and by this reference incorporated herein. (g) The Principal Amount of Bonds of the District. The aggregate principal amount of Bonds to be issued and sold with respect to the District shall not exceed $22.0 Million, the proceeds of which Bonds shall be used to pay all or a portion of the costs of the Improvements and the Incidental Expenses relating to the Improvements and the issuance of the Bonds. The issuance of such Bonds shall be authorized by further ordinance enacted pursuant to Article 6. (h) Project Funding Agreement. Funds to pay the costs of the Improvements shall be disbursed in accordance with a Project Funding Agreement (the “Project Funding Agreement”) to be entered into between the County and the Petitioner or Petitioner’s authorized representative(s). The form and execution of the Project Funding Agreement shall be subject to approval by the Council. SECTION 3. Levy of Special Tax. In accordance with Article 5, the Council hereby levies the Special Tax upon all taxable parcels of land within the District. The Special Tax shall be apportioned pursuant to the RMA, and the lien thereof shall be on a parity with the lien of general real property taxes and the lien of assessments levied under Section 46-80, Hawai‘i Revised Statutes; provided, however, that if collections of real property taxes, Special Taxes and assessments levied on a property (including any proceeds of foreclosure, if in a single foreclosure sale to satisfy all delinquent real property taxes, Special Taxes and assessments) are insufficient to pay the total amount due with respect to all real property taxes, Special Taxes and assessments on the property, then the Director may apply the amount collected first to real property taxes, second to the Special Tax levied hereunder, and third to assessments. In the event of delinquency, the Special Tax shall be subject to penalties, interest, fees and charges at the same rates as are applicable to delinquent real property taxes, as in effect from time to time. The Director of Finance or such official’s designee is hereby appointed as the CFD Administrator, as said term is defined in the RMA, to determine, adjust and levy the annual amount of Special Tax due from each owner of Taxable Property, as said term is defined in the RMA, all in accordance with the provisions of the RMA. Proceeds of the Special Tax shall be used only to pay the costs of the Facilities, to pay debt service on the Bonds or other debt authorized and issued for the District pursuant to Article 5, and to pay Incidental Expenses. The Special Tax shall be levied pursuant to this ordinance only as long as needed to pay such costs, debt service and Incidental Expenses.