HomeMy WebLinkAboutCOM 0872.000 1998-2000
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Stephen K. Yamashiro E.
Mayo, ;
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Gunfv of ('?AttfuttiY
OFFICE OF HOUSING AND
COMMUNITY DEVELOPMENT
50 Wailuku Drive • Hilo, Hawaii 96720-2484
Vrt'r (8081961-8379 • FAX (808) 961.8685
July 26, 2000
MEMORANDUM
TO: James Y. Arakaki, Chairman
Hawai'i County Council
FROM: Nancy Pisicchio, Chairperson
Hawai'i County Housing Agency
SUBJECT: Resolution for the Parker Ranch Foundation
The Office of Housing and Community Development (OHCD) submitted
a resolution to the Hawai'i County Housing Agency (HCHA)
authorizing the Mayor to negotiate and execute an agreement with
Parker Ranch Foundation, to satisfy Condition 1 of LUC Docket
No. A86-601 and Condition (E) of Ordinance No. 96-117.
The HCHA reviewed and approved the resolution at its meeting of
July 26, 2000, by a vote of 5- ayes, C nays, and with
4 absent and excused. Accordingly, I am requesting that
this resolution be included on the Council agenda for action at
its August 9, 2000, meeting.
Enclosure
Re-5. 305-00
Comm. No. 93 al~
mle No. ~.~f? Lam{ ~ZJ
0946hsmi Ref. To: COI,~•?,LI 1
lOUAL HOUSING OPPORTUNITY
Ref. Data 7 2000 ',w EQUAL OPPORTUwTY EWLOYEN•
Parker Ranch Foundation Trust
Parker Ranch 2020 Project
Housing Plan
June 18, 2000
Introduction and Background
The original planning for the Parker Ranch 2020 Project, to implement a long range master plan
for the development of its lands in the Waimea area, began in 1986. In 1992, approval of the
Parker Ranch 2020 Plan was granted by the County through the adoption of Ordinance No. 92-
65. This ordinance rezoned over 580 acres of land in the Waimea area for commercial,
industrial, residential and agricultural activities, as well as provided for a wide range of
community facilities.
Parker Ranch owner, Richard Smart, passed away unexpectedly in November of 1992. As
directed by his estate plan, the majority of his assets, including the Parker Ranch 2020 Project
area were placed in a charitable trust, the Parker Ranch Foundation Trust. His intent was that the
Trust benefit residents of Waimea through contributions to education, charity, and health
services. The original beneficiaries of the Trust were:
o Parker School
o Hawaii Preparatory Academy
O Lucy Henriques Medical Center
o North Hawaii Community Hospital; and
o Hawaii Community Foundation
Since the establishment of the Trust, Lucy Henriques Medical Center and North Hawaii
Community Hospital have merged. With respect to the Hawaii Community Foundation, it is
required to distribute its portion of the Trust income to charitable organizations in Waimea
through grants that benefit the community. In this manner, Richard Smart believed that the
people of Waimea would ultimately benefit from the income of the Trust.
In 1994, Parker Ranch began to revise its Parker Ranch 2020 Project in response to community
concerns and the new direction of the Ranch. The area and density of the Project were reduced to
encompass approximately 340 acres of land with a total of 730 residential units. This is a
reduction of approximately 268 units from the original plan. A summary of the revised Parker
Ranch 2020 Project is provided in Table No. 1, below.
Parker Ranch also requested certain amendments to the conditions of approval of Ordinance No.
92-65. The amendments were to ensure the Ranch was in compliance with the performance
conditions which required certain actions to be undertaken in a specified time period. In
addition, Parker Ranch requested certain amendments to allow for a more efficient phasing of
the project; and to provide for the development of the property in a manner that ensures the
impacts of the project are addressed in a way that is fair to the County, the community and to
Parker Ranch.
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 1
Table No. 1
Parker Ranch 2020 Project
Development Summary
Zoning Designation Area Proposed Residential
(in acres) Density (units)
Single Family Residential (RS-7.5,10 & RA-la) 181.74 473
Multiple Family Residential (RM-5.0) 37.66 256
Commercial (CV-7.5) 101.50 n/a
Industrial (ML-20) 25.00 n/a
Total 345.90 729
On September 26, 1996, the County Council adopted Ordinance No. 96-117 which incorporated
the proposed changes to the Parker Ranch 2020 Project and amended certain conditions of the
original zoning ordinance.
Parker Ranch 2020 Project Affordable Housing Conditions.
On April 20, 1987, the State Land Use Commission (SLUC), in Docket No. 186-601,
reclassified the Parker Ranch 2020 Project Town Center and Industrial areas from the SLU
"Agricultural" district to the "Urban" district. This reclassification was subject to several
conditions, including Condition No. 1 related to Affordable Housing. On September 26, 1996,
Ordinance No. 96-117, amending Change of Zone Ordinance No. 92-65, was approved, subject
to several conditions, including Condition No. E, related to affordable housing.
Copies of the SLU Decision and Order and Change of Zone Ordinance No. 96-117 are attached
as Appendix A and B, respectively. The affordable housing conditions related to the Parker
Ranch 2020 Project area as follows:
1. State Land Use Commission Docket No. A86-601 - Condition No. 1
Petitioner shall provide housing opportunities for low and moderate income
Hawaii residents by constructing and offering for sale or rent, on a preferential
basis or its own or in cooperation with either the Hawaii Housing Authority and
the County of Hawaii, within or without the Property, a number of residential
units not less than ten percent (10%) of the total number of residential units, or
lots and units, to be developed on the Property, to residents of Hawaii of low and
moderate income as determined by the Hawaii Housing Authority or County of
Hawaii from time to time, or by contributing to the development of such housing
without the property. The low and moderate preferential residential units, if
offered for sale, shall be offered at prices that would enable such purchasers to
qualify for and obtain State-assisted financing or Federally-insured or assisted
financing intended to encourage home ownership by low and moderate income
families.
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 2
2. Change of Zone Ordinance No. 96-117, Condition No. E
To ensure the Goals and Policies of the Housing Element of the General Plan are
implemented, the applicant shall work with the Office of Housing and
Community Development and the Planning Director to formulate a housing plan
for the development. This housing plan shall be approved by the County Housing
Agency prior to final subdivision approval of any portion of the residential zoned
area. The housing plan shall allow satisfaction of the requirements of this
condition by in-lieu payment, land, or any combination thereof, and shall be
based on a maximum density for the residential area, as determined by the
applicant with the concurrence of the Planning Director. Full affordable housing
credits shall be given for the 4.7t acres set aside the applicant and dedicated to
the County for the 40 unit elderly housing site as well as any other future land or
residential lots set aside for employees of the applicant who meet the prevailing
income criterion for an affordable home.
County of Hawaii Affordable Housing Policy
On January 7, 1998, the County of Hawaii adopted Ordinance No. 98-1 which established the
Affordable Housing Policy for the County of Hawaii. The purpose of this Ordinance is to
further the Hawaii County General Plan's Goals and Policies with respect to housing which
include:
o Attaining a diversity of socio-economic housing mix throughout different parts of
the County;
o Improving and monitoring the quality and affordablity of the existing housing
stock; and
o seeking sufficient production of new affordable rental and fee simple housing in a
variety of sizes.
The Affordable Housing Policy establishes the requirements for rezonings involving residential,
resort and industrial uses. More specifically, Section 11-4 of Ordinance No. 98-1 requires that
requests for zoning which propose the establishment of residential uses, including single family
and multiple dwellings will be assessed as follows:
0 9 units or less No Requirement
0 10 or more units 10% of total units to be developed
Ordinance No. 98-1 further requires that satisfaction of this requirement be accomplished
through the provision of affordable housing units within the land which is the subject of the
rezoning. In lieu of the provision of affordable housing units on-site, the affordable housing
requirement may be satisfied through the use of the following alternatives:
1. Payment of in-lieu fees (in-lieu fee is currently $4,720 per affordable unit)
2. Provision of affordable units of off-site property;
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 3
3. Provision of developable land;
4. Provision of infrastructure/services; or
5. Any other means which are approved by the County Housing Agency
The implementation plan to satisfy the affordable housing requirements must be approved by the
County Housing Agency prior to the issuance of any residential building permit for the overall
project.
Ordinance No. 98-1 further states that the Housing Policy supercedes all previous affordable
housing requirements . Further, that any affordable housing condition or portion thereof in a
prior rezoning ordinance which has not been fully satisfied as of January 7, 1998 (date of
adoption of Ord. No. 98-1), may be re-assessed, pursuant to this policy upon the initiation of the
person or entity that must satisfy that housing condition.
Other Parker Ranch Residential Projects
Parker Ranch is currently developing and will continue to develop lands that it owns outside of
the Parker Ranch 2020 Project area, for residential and other purposes. A portion of these
residential developments may be used by Parker Ranch to provide opportunities for their
employees to own their own property through the Parker Ranch Employee Land Benefit
Program.
Included in these properties is the proposed development of TMK: 6-4-01: portion of 42 where
Parker Ranch, Inc. is proposing to develop a 24-lot residential subdivision. Of these lots, a total
of 16 are proposed to be offered to its employees as part of the Ranch's Employee Land Benefit
Program and are intended to be credited against the affordable housing requirements of the
Parker Ranch 2020 Project as required by Ordinance No. 96-117.
Parker Ranch understands that the County Affordable Housing Policy, as contained in Ordinance
No. 98-1 will apply to these future rezonings. Accordingly, Parker Ranch is requesting that to
the extent that the residential or agricultural lots are set aside for Parker Ranch employees who
meet the prevailing income criterion for an affordable home pursuant to its Employee Land
Benefit Program, no other affordable housing requirements be imposed on those lots.
Parker Ranch 2020 Project Housing Plan
Parker Ranch is proposing to address its affordable housing requirement for the Parker Ranch
2020 Project as well as other residential developments outside of the Parker Ranch 2020 Project
area as follows:
1. Parker Ranch will provide affordable housing opportunities equivalent to ten
percent (10%) of the total residential units proposed in the Single Family
Residential (RS) and Multiple-Family Residential (RM) zoned districts. These
affordable housing units will be priced in a manner to ensure that they are
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 4
affordable to residents of Hawaii of low and moderate income as determined by
State's Housing and Community Development Corporation and/or the County of
Hawaii.
2. The total affordable housing requirement will be based on a maximum density for
the residential areas, as determined by Parker Ranch with the concurrence of the
Planning Director. Based on the existing Parker Ranch 2020 Plan, a total of
approximately 730 residential units are proposed within the residential zoned
lands, including approximately 475 units in the RS zoned area and 255 units in
the RM zoned area. Accordingly, a total of 73 affordable units, houses affordable
to residents of Hawaii of low and moderate income as determined by State's
Housing and Community Development Corporation (HCDC) and/or the County
of Hawaii will be required to address the housing requirements of the Parker
Ranch 2020 Project.
3. The affordable housing units will be provided prior to Final Subdivision Approval
for those units/lots in the RS zoned district or the issuance of a Certificate of
Occupancy for those units within the RM zoned district, for each proposed
residential development area, as determined by Parker Ranch, with the
concurrence of the Planning Director.
4. Parker Ranch shall provide the affordable housing units in one or any
combination of the following alternatives pursuant to and in full satisfaction of
Condition No. 1 of LUC Docket No. A86-601 and Condition (E) of Ordinance
No. 96-117:
A. Parker Ranch Employee Land Benefit Program
Parker Ranch has established an Employee Land Benefit Program which
provides employees with an opportunity to own a parcel of land at no cost,
except for the pro rata share of the cost of improvements. Approximately .
50 employees are currently eligible for this program.
After five (5) years of employment, an employee is eligible to obtain a lot,
provided one is available. The market value of the lot is then amortized
and forgiven over the next twenty (20) years, allowing the employee to
own it free and clear after that period. Should the employee leave Parker
Ranch employment prior to the twenty year amortization period, that
employee must pay off the unforgiven balance in order to keep the lot.
Parker Ranch shall receive one affordable housing credit for each lot
provided to its employees pursuant to its Employee Land Benefit
Program, under the following criteria:
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 5
i. That the employee's household income shall not exceed the
prevailing income criterion for an affordable home, up to a
maximum of 140% of median income, as determined by HCDC
and the County of Hawaii.
ii. That the employee shall receive the lot and pay its portion of the
costs of improvements.
iii. That the purchase price for the lot shall be the fair market value of
the land which shall be partially forgiven at the rate of 5% of the
fair market value of the land, set at the time of closing on the
purchase, for each year the employee works full time for Parker
Ranch in excess of the initial five (5) year period of service, or as
may be adjusted by Parker Ranch.
iv. That the lot may be within the Parker Ranch 2020 project area or
on other lands Parker Ranch owns or develops for the purpose of
providing lots for its eligible employees.
V. That Parker Ranch provide verification that the employee's
household income is within the prevailing income criterion for an
affordable home which shall not exceed 140% of median
household income as determined by HCDC and the County of
Hawaii. The income verification shall be in a form as required by
the Office of Housing and Community Development.
B. Donation of Land and/or In-Lieu Cash Contribution.
Parker Ranch may provide land, an in-lieu cash contribution, or any
combination thereof, as approved by the County of Hawaii Office of
Housing and Community Development in full or partial satisfaction of the
affordable housing conditions.
Parker Ranch shall receive credit against its affordable housing
requirement in the amount of $4,720 per affordable unit or as may be
adjusted by the County Housing Agency pursuant to Ordinance No. 98-1.
Should land be contributed, it shall be valued at its fair market value as
determined by an independent appraiser as may be mutually agreed to by
Parker Ranch and the County. The amount of affordable housing credit
shall be the total valuation divided by the in-lieu amount of $4,720 per
affordable unit or as may be adjusted by the County Housing Agency
pursuant to Ordinance No.98-1.
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 6
C. Waimea Elderly Housing Project
Parker Ranch contributed approximately 4.7 acres of land used in the
development of the Waimea Elderly Housing Project completed in 1995,
which provides housing opportunities forlow income elderly residents
utilizing the U.S. Department of Housing and Urban Development 202
Housing Program funds. In accordance with the provision of Ordinance
No. 98-1, Parker Ranch shall receive either the provision of affordable
housing units on the subject property, or the amount of land as determined
by an assessment of value of that contribution.
Based on an appraisal of the value of land when it was donated to the
County, the estimated value of the property in 1992 was $500,000. See
attached Land Appraisal Report prepared by Bill M. Brodbeck, MAI,
CGA, dated November 10, 1999. Based on this appraisal, Parker Ranch
shall received a total of 105 affordable Housing Credits which can be
applied toward the Affordable Housing requirements of the Parker Ranch
2020 Project and other Parker Ranch projects in the Waimea area. This is
based on a value of $4,720 per affordable unit required.
D. Other Programs
Parker Ranch may satisfy its affordable housing requirements through any
other means or programs which are approved by the County Housing
Agency.
Parker Ranch 2020 Project Housing Plan June 18, 2000
Page No. 7