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HomeMy WebLinkAboutRES 303 Draft 01 2022-2024 A RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO NEGOTIATE A SIXTY-EIGHT-YEAR LEASE WITH KAMAKOA NUI LIMITED PARTNERSHIP FOR THE PURPOSE OF THE DEVELOPMENT AND CONSTRUCTION OF AN AFFORDABLE WORKFORCE RENTAL HOUSING PROJECT, SITUATED AT WAIKOLOA, DISTRICT OF SOUTH KOHALA, COUNTY AND STATE OF HAWAIʻI, AND IDENTIFIED AS TAX MAP KEY: (3) 6-8-042:022. WHEREAS, the County of Hawaiʻi (“County”) owns approximately 235 acres of undeveloped property in Waikoloa Village identified as Tax Map Key No.: (3) 6-8-041:002, 003, 004, 005, 006, 007, 008, 009, 010, 011, 012, 013, 014, 015, 016, 017, 018. 019, 020, 021, 022 and (3) 6-8-042:022 for the purposes of providing affordable housing and related purposes at the Kamakoa Nui Subdivision (“Subdivision”); and WHEREAS, by County of Hawaiʻi Resolution No. 328-91, dated June 5, 1991, the County through its Office of Housing and Community Development (“OHCD”) acting by its Hawaiʻi County Council, its Mayor was authorized to designate the OHCD Housing Administrator to serve as the designated county official to administer the development of the Waikoloa Village Affordable Housing Project thereon; and WHEREAS, on September 8, 2020, OHCD issued a Request for Proposals (“RFP”) for the leasehold development and operation of an affordable workforce rental housing on 10.324 acres of land situated in the Subdivision being Lot 98 of the "Kamakoa Phase 1-A Subdivision" as shown on File Plan No. 2469, Tax Map Key No. (3) 6-8-042:022, (“Property”); and WHEREAS, on November 20, 2020, Pacific Housing Assistance Corporation (“PHAC”) submitted a proposal in response to the RFP for the leasehold development, ownership and operation of a 120-unit multifamily rental housing project at the Property to families that earn less than or equal to 140% of Hawai'i County Area Median Income (“AMI”) (“the Project”); and WHEREAS, on January 14, 2021, the County issued a notice of award to the Developer for the RFP; and WHEREAS, on October 4, 2021 the County entered into a Development Agreement with Kamakoa Nui Limited Partnership, a limited partnership of PHAC (“Developer”) for the development and construction, rental, management, and operations by the Developer of the Project to be situated on the Property; and WHEREAS, on February 11, 2022 the County and the Developer amended the Agreement with the First Amendment to Development Agreement to; change the Project name to “Nā Hale Mākoa”, increase the unit count up to 140 units, increase the lease term to 68 years, and approve the Developer for thirty (30) Project-Based Housing Choice vouchers; and WHEREAS, the Developer has developed or assisted in the development of nearly sixty (60) projects amounting to 1,851 housing units for very low to moderate income families and persons with special needs, and owns directly or through affiliated entities 14 projects of 939 senior and family apartments; and WHEREAS, on July 13, 2023, the Board of Directors of the Hawaiʻi Housing Finance and Development Corporation approved Low Income Housing Tax Credits, Hula Mae Multi-Family Bonds, Rental Housing Revolving Funds financing from the Hawaiʻi Housing Finance and Development Corporation totaling $80,379,664.00 for the Nā Hale Mākoa project; and WHEREAS, the Developer anticipates beginning construction in the first quarter of 2024; and WHEREAS, the County Council has determined that there is a need for provision of affordable housing throughout Hawaiʻi County; and WHEREAS, Chapter 2, Article 19, Section 2-120(a)(2), Hawaiʻi County Code, as amended, provides that the County Council may direct the Finance Director to negotiate the disposition of real property by lease to affordable housing developers as such rentals and on such terms and conditions as deemed proper; and now, therefore BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAIʻI, that the Finance Director is hereby authorized to negotiate a multi-year lease for 68 years with Kamakoa Nui Limited Partnership, for the leasehold development and operation of Nā Hale Mākoa as an affordable housing project. BE IT FINALLY RESOLVED, that the County Clerk shall forward a copy of this resolution to the Office of Housing and Community Development, the Department of Finance, and the Office of the Mayor. Dated at ____________, Hawai‘i, this ______ day of _______________, 20__. INTRODUCED BY: ___________________________________ COUNCIL MEMBER, COUNTY OF HAWAI‘I COUNTY COUNCIL County of Hawai‘i Hilo, Hawai‘i ROLL CALL VOTE    AYES NOES ABS EX   EVANS       GALIMBA       I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawai‘i on _____________________________________. INABA       KAGIWADA       KĀNEALI‘I-KLEINFELDER       KIERKIEWICZ      ATTEST: KIMBALL       LEE LOY       VILLEGAS              Reference:  COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO.