HomeMy WebLinkAboutBIL 230 Draft 01 2020-2022
AN ORDINANCE PROVIDING FOR THE ESTABLISHMENT OF THE COUNTY OF HAWAI‘I DOWNTOWN HILO BUSINESS IMPROVEMENT DISTRICT NO. 2, AS AUTHORIZED BY CHAPTER 35 OF THE HAWAI‘I COUNTY CODE 1983 (2016
EDITION, AS AMENDED), RELATING TO BUSINESS IMPROVEMENT DISTRICTS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I:
SECTION 1. Purpose. The purpose of this ordinance is to provide for the making and financing of the County of Hawai‘i’s second Business Improvement District to be located at Downtown
Hilo, in the district of South Hilo, Hawai‘i, to provide for and finance supplemental services and improvements in Downtown Hilo as authorized by chapter 35, Hawai‘i County Code 1983
(2016 Edition, as amended) (hereinafter “Hawai‘i County Code”).
SECTION 2. Establishment of Business Improvement District No. 2. In accordance with the provisions of chapter 35, Hawai‘i County Code, the Council finds as follows:
(1) A Business Improvement District is hereby established pursuant to the provisions of chapter 35, Hawai‘i County Code, and in accordance with the “Downtown Hilo Business Improvement
District Plan” (“District Plan”) attached as Exhibit “A” and incorporated as part of this ordinance;
(2) The name of the district shall be “The County of Hawai‘i Downtown Hilo Business Improvement District No. 2” (hereinafter referred to as the “District”);
(3) The District Plan shall be administered by the District Association established for the District as defined by section 35-18, Hawai‘i County Code;
(4) The initial term of the proposed District is for five years, which is automatically renewed unless an ordinance of termination is adopted in which case operations of the District
shall cease although the term shall not expire until all debt service on bonds and incidental expenses and supplemental services expenses related thereto are fully paid or an irrevocable
provision for such payment has been made;
(5) The general boundary of the District is shown on the map attached hereto as Exhibit “B”;
(6) The parcels of land to be assessed within the District are identified by tax map key numbers attached hereto as Exhibit “C”;
(7) Tax map key numbers issued for parcels of land within the District boundary that result from future consolidation, resubdivision, and/or condominium property regimes, shall be deemed
included within the District;
(8) Supplemental services and improvements to be provided and financed by the District through the District Association are:
(A) Services to enhance public safety, landscaping, and enhanced sanitation services through the hiring of Clean Sweep Crews;
(B) Marketing services including special events to encourage the public’s use of the District and to introduce the public to the changes being made;
(C) Construction and installation of landscaping, lighting, pedestrian pathways and surfaces, kiosks or other structures for marketing and special events, wayfinding and signage to enhance
the movement, convenience, and enjoyment of the public, and other improvements recommended in the Downtown Hilo Multimodal Master Plan;
(D) Transportation services such as a shuttle system; and
(E) Construction and installation of appropriate parking technology as approved by the Department of Public Works, in lieu of parking meters described in sections 24-214 to 24-217, Hawai‘i
County Code, to manage parking within County rights-of-way and County parking lots within the District.
In the District’s first operating year, it is proposed that approximately $80,000 will be expended for the supplemental services and improvements;
(9) No bonds will be issued to finance the supplemental improvements in the District at this time;
(10) Incidental expenses to be paid from special assessments shall include:
(A) The County’s administrative expenses directly incurred in the collection of assessments pursuant to sections 35-23 and 35-25, Hawai‘i County Code;
(B) The District Association’s costs including administration, legal fees, accounting, management, office space, office equipment, office supplies, and insurance; and
(C) Reimbursement of expenses incidental to the creation of the District.
It is proposed that an additional $10,000 will be incurred as incidental expenses;
(11) Establishment of a service area within the District is not being proposed at this time;
(12) The rate and method of apportionment pursuant to which the first year’s special assessment is to be levied is as follows:
(A) Parcels of land within the District will be assessed the rate of $500 per parcel; and
(B) The following parcels of land shall not be levied special assessments:
(i) Parcels of land owned by the United States, the State of Hawai‘i, and the County of Hawai‘i; provided, however, that property and leases of government property subject to real property
taxation under sections 19-84, 19-85, and 19-86, Hawai‘i County Code, shall be assessed under this District Plan;
(ii) Parcels of land that are exempt from the payment of real property taxes under section 19-77, Hawai‘i County Code, because of use for charitable purposes, but only so long as such
parcels are exempt from the payment of real property taxes; and
(iii) Parcels of land that are exempt from the payment of real property taxes as set forth in chapter 239, Hawai‘i Revised Statutes, but only so long as such parcels are exempt from
the payment of real property taxes.
Pursuant to section 35-20, Hawai‘i County Code, the Council’s determination of the reasonableness of the rate and method of apportionment shall be final and conclusive; and
(13) All supplemental improvements within the District shall receive appropriate permits and approvals. The Department of Public Works shall review any preliminary plans for any supplemental
improvements proposed on County land or within any County right-of-way.
SECTION 3. District Board Report. Prior to the commencement of the second and each subsequent assessment year, the District Board shall prepare and submit an annual report to the Council
that shall include a statement of operations, a financial report for the previous year, the anticipated surplus or deficit from the preceding assessment year, and any proposed new rate
or method of assessment for the next assessment year. This report shall be due by the thirtieth day preceding the commencement of the next assessment year.
SECTION 4. Business Improvement District No. 2 Fund; Report. The Director of Finance shall deposit all moneys collected pursuant to the district assessment in an account for the District
in the “Business Improvement District No. 2 Fund” and shall prepare and submit a report to the District Board and the Council summarizing the following:
(1) Assessments collected or that remain unpaid by parcel of land and landowner;
(2) The amount of interest and penalties collected;
(3) The amount of moneys paid out for District purposes; and