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Home My WebLink AboutBIL 230 Draft 02 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 public restrooms, 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) As an option for the District Board to consider, 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 $367,000 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. The budget in the District Plan accounts for the above 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) Commercial parcels of land within Zones 1, 2, and 3, as shown in Exhibit “B,” will be assessed the rate of $1.50 for every $1,000 of “Total Net Taxable Value” of each parcel of land, as indicated on the County of Hawai‘i Real Property Tax Assessment list prepared for the tax year corresponding with the applicable tax year, except for the first assessment year which is assessed on a pro-rata basis from the date of the District’s establishment. “Total Net Taxable Value” means the total assessed value of a parcel of land assessed by the real property tax office of Hawai‘i County, including the assessed value of any improvements on that parcel of land, less applicable exemptions; (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; and (ii) All residential parcels within the District, and active homeowner or affordable rental exemptions on file with the County; and (C) 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 (4) The amount of administrative expenses directly incurred in the collection of assessments which were deducted from the amounts collected. The report shall be submitted to the District Board and the Council prior to a date set pursuant to written agreement between the District Board and the County. SECTION 5. Amendments to Ordinance. This ordinance shall not be amended except pursuant to chapter 35, article 4, Hawai‘i County Code. SECTION 6. The revisor of ordinances shall insert an annex at the end of chapter 35, Hawai‘i County Code, that lists “The County of Hawaiʻi Downtown Hilo Business Improvement District No. 2” and ordinance number established by this ordinance. This annex shall not be deemed to be part of the chapter. SECTION 7. Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. SECTION 8. This ordinance shall take effect upon its approval. INTRODUCED BY: _______________________________________ COUNCIL MEMBER, COUNTY OF HAWAI‘I _______________, Hawai‘i Date of Introduction: Date of Hearing: Date of 1st Reading: Date of 2nd Reading: Effective Date: