HomeMy WebLinkAboutRES 144 Draft 01 2000-2002 COtT~T'TY O~ I~~~V~~I`I ~TAT~ OF I~t~W~~I`I
I~SOIaUT'IOl~ 1®TO.~~~~.
RESOLUTION PROPOSING THE ADOPTION OF THE PROPOSED PLAN FOR
REFUNDING OF INDEBTEDNESS OF IMPROVEMENT DISTRICT NO. 17, KALOKO
SUBDIVISION, AND AUTHORIZING CERTAIN OTHER ACTIONS IN ACCORDANCE
WITH CHAPTER 12, ARTICLE 5, HAWAII COUNTY CODE
WHEREAS, the County of Hawaii (the "County") has heretofore established an
improvement district, designated as Improvement District No. 17, Kaloko Subdivision (the
"Improvement District"), and has issued $14,000,000 aggregate principal amount of special
assessment bonds, designated as its Improvement District No. 17, Kaloko Subdivision, 1991 Special
Assessment Bonds (the "Outstanding Bonds"), to finance certain improvements within the
Improvement District; and
WHEREAS, by Petition duly filed with the County Council (the "Council"), MID
Corporation and TSA Corporation, as owners of land within the Improvement District (collectively,
the "Petitioners"), requested that the County proceed with a proposed refunding plan for the
Improvement District (the "Refunding Plan") involving the refunding of the Outstanding Bonds,
currently outstanding in the aggregate principal amount of $10,165,000, and the issuance of a new
series of special assessment bonds (the "Refunding Bonds") for the purpose of such refunding; and
WHEREAS, in accordance with and pursuant to Section 12-59(b) of the Hawaii County
Code, on September 25, 2001, the Council adopted Resolution No. 126-01 directing the Chief
Engineer of the County (the "Chief Engineer") to investigate and report on certain matters required
under said Section to the Council; and
WHEREAS, the Chief Engineer has filed a report summarizing the results of his afore-
referenced investigation to the Council, and including, without limitation, the preliminary
assessment roll contemplated under the Refunding Plan (the "Chief Engineer's Report"), a copy of
which Chief Engineer's Report is attached hereto as Exhibit A; and
WHEREAS, the Petitioners have deposited with the director of finance of the County a sum
sufficient to meet the cost of the Refunding Plan; and
WHEREAS, the Council intends hereby to propose the adoption of the Refunding Plan, and
to authorize the taking of certain actions relating to the Refunding Plan pursuant to Chapter 12,
Article 5, of the Hawaii County Code.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the County of Hawaii as
follows:
Section 1. Ap
ro~val of Chief Engineer's Report. The Chief Engineer's Report, attached
as Exhibit A hereto, is hereby approved and by this reference is incorporated herein.
Section 2. Findings by the Council. In accordance with Section 12-59(d) of the Hawaii
County Code, the Council hereby finds as follows:
(a) The outstanding indebtedness of the Improvement District as of the date of
this Resolution is Ten Million One Hundred Sixty-Five Thousand Dollars ($10,165,000),
representing the outstanding principal amount of the Outstanding Bonds; and
(b) The owners of land in the Improvement District representing not less than
seventy-five percent (75%) of the unpaid improvement assessments have petitioned that the
outstanding indebtedness of the Improvement District be refunded; and
(c) The details of the Refunding Plan are set forth in Exhibit B attached hereto
and by this reference incorporated herein; and
(d) The proposed method of reassessment, including the minimum number of
installment payments to be proposed, and the maximum estimated units of assessment are set forth
in said Exhibit B.
Section 3. Proposal to Adopt the Refunding Plan. The Council hereby proposes that the
Refunding Plan be adopted by the County.
Section 4. Public Hearin.
(a) A public hearing on the Refunding Plan shall be held at on November
2001 pursuant to Section 12-59(d) of the Hawaii County Code, unless waived by the owners of land
representing 100% of the unpaid assessments in the Improvement District.
(b) The Clerk of the County is hereby authorized and directed to take the following
actions pursuant to Sections 12-59(e) and 12-10 of the Hawaii County Code:
(i) Cause a notice of a public hearing concerning the adoption of the Refunding
Plan to be published in accordance with Section 12-10 of the Hawaii County
Code, giving notice generally to all owners, lessees, and occupants of the
land still under assessment in the Improvement
2
District, and to all other interested in the general details of the Refunding Plan, o£ (i) the time and
place of such public hearing, and (ii) the place where this Resolution, the preliminary assessment
roll, and other data may be seen and examined prior to such public hearing; and
(ii) Cause copies of the foregoing notice of public hearing to be posted in three
(3) of the most conspicuous places in the Improvement District; and
(iii) File affidavits of publication and posting regarding the notice of public
hearing with the Council and take such other actions as may be required of the Clerk with respect
to the public hearing under applicable laws, regulations, rules, and ordinances.
Section 5. Effective Date; Prior Inconsistent Resolutions Repealed. This Resolution
shall take effect immediately upon its adoption. All prior resolutions or portions of prior resolutions,
to the extent inconsistent herewith, are hereby repealed.
BE IT FURTHER RESOLVED that the County Clerk of the County of Hawaii shall
transmit copies of this Resolution to the Finance Department and MID Corporation and
TSA Corporation.
Dated: Hilo, Hawaii,
INTRODUCED BY:
EMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
COUnty Of Hawal`1 AYES NOES ABS EX
H110, HaWal`1 ARAKAKI
CHUNG
1 hereby certify that the foregoing RESOLUTION was by ELARIONOFF
the vote indicated to the right hereof adopted by the COUNCIL of the JACOBSON
County of Hawaii on
LEITHEAD-TODD
ATTEST: P[S[CCHIO
SAFARIK
TYLER
YAGONG
COUNTY CLERK CHAIRMAN & PRESIDING OFFICER Reference: C-409/Council'
RESOLUTION NO.
EXIIIBIT A
COUNTY OF IIAWAII
Improvement District No. 17
Kaloko Subdivision
Chief Engineer's Report
[Copy Attached]
®J~tv Os H.~
.'q4
Harry Kim ~ ,
Dennis K. W. Lee
Mayor / ;+i
~ Director
~iT1I~'C~~? It~ irt~'~tit
DEPARTMENT OF PUBLIC WORKS
25 Aupuni Street, Room 202 • Hilo, Hawaii 96720-4252
(808) 961-8321 • Fax (808) 961-8630
October 15, 2001
HONORABLE CHAIRMAN AND MEMBERS
HAWAII COUNTY COUNCIL
25 AUPUNI STREET
HILO, HAWAII 96720
SUBJECT: REPORT ON PROPOSED REFUNDING OF OUTSTANDING INDEBTEDNESS OF
IMPROVEMENT, District No. 17, Kaloko Subdivision
This report is respectfully submitted in accordance with Resolution No. 126-01 (the
"Resolution") with respect to the Petition for Refunding of Outstanding Indebtedness of County
of Hawaii Improvement District No. 17, Kaloko Subdivision dated September 6, 2001 (the
"Petition") of MID Corporation and TSA Corporation (the "Petitioners").
I. Background
The County of Hawaii (the "County") has heretofore established Improvement District
No. 17, Kaloko Subdivision (the "Improvement District") in accordance with Chapter 12, Hawaii
County Code. The Improvement District encompasses approximately 1,340 acres of land in the
North Kona area of the County.
The outstanding indebtedness of the Improvement District consists of the "Improvement
District No. 17, Kaloko Subdivision, 1991 Special Assessment Bonds" (the "1991 Bonds")
issued by the County in connection with the construction of certain public improvements within
the Improvement District. The 1991 Bonds were issued in the original principal amount of
$14,000,000, of which $10,165,000 are currently outstanding. The 1991 Bonds are payable as
to principal and interest from improvement assessments on assessable properties within the
Improvement District.
Pursuant to Section 12-59(a), Hawaii County Code, the Petitioners have proposed that the
outstanding 1991 Bonds be refunded by call for redemption from the proceeds of a proposed new
series of special assessment bonds (the "Refunding Bonds") of the County. Pursuant to the
Resolution, this County Council has directed this office to investigate and report on the matters set
forth in Section 12-59(b), Hawaii County Code, with respect to the proposed refunding.
II. Findings
Pursuant to the Resolution and Section 12-59(b), Hawaii County Code, we report the
following findings regarding the proposed refunding:
1. The total amount of unpaid assessments within the Improvement District is
$9,698,920.57. There are 36 properties from the original assessment roll which are still subject to
assessment. MID Corporation owns 3 of the parcels, TSA owns 26 parcels and the remaining 7
parcels are owned by others. A schedule of such unpaid assessments and the properties subject
thereto is attached as Exhibit A hereto.
2. There are $407.48 of delinquent assessments and penalties on 2 properties within
the Improvement District. None of the Petitioners' properties have delinquent assessments.
Details of such delinquent assessments and penalties are set forth in Exhibit A hereto.
3. The Petitioners own real estate representing 75% or more of the unpaid
assessments within the Improvement District. As shown in Exhibit A hereto, MID Corporation
owns parcels 1, 2 and 3 on the current assessment roll, which represent $8,368,275.28 or 86% of
the total unpaid assessments.
4. The proposed reassessment involves the addition of a new parcel 50 (currently part
of parcel 3) to the assessment roll and the reallocation of assessments among parcels 1, 2, 3 and
50, all owned by MID Corporation, as follows:
(a) The existing parcel 3, owned by MID Corporation, was divided into two
parcels (TMK 7-3-009-26, 194.324 acres, and TMK 7-3-009-28, 371.905 acres) by the
construction of Hinalani Street. However, parcel 3 continues to be assessed as a single lot. The
Petitioners' proposal is to add a new parcel 50 (consisting of TMK 7-3-009-28) to the assessment
roll so that parcel 3 (TMK 7-3-009-26) and parcel 50 (TMK 7-3-009-28) can be assessed
separately.
(b) The Petitioners also propose that the outstanding assessments on the
existing parcels 1, 2 and 3 be reallocated among parcels 1, 2, 3 (TMK 7-3-009-26) and 50 (TMK
7-3-009-28), all owned by MID Corporation, on an area basis. The total acreage of all four parcels
is 1,150.79 acres. MID Corporation's $8,368,275,28 total obligation would be apportioned equally
over the total acreage in these four parcels or $7,271.77 per acre.
(c) The proposed reassessment is limited to properties owned by MID
Corporation and will not affect the assessments on any properties owned by others.
5. Attached as Exhibit B hereto is a new assessment roll setting forth the proposed
reassessments, including the addition of the new parcel 50 and the reallocation of assessments on
MID Corporation's properties.
6. For purposes of Section 12-59(b)(6), Hawaii County Code, the estimated cost of
the proposed refunding scheme is $1,500.00, consisting of the cost of publishing public hearing
notices required for the refunding. Costs of redeeming the 1991 Bonds and costs of issuing the
Refunding Bonds are excluded based on the following:
(a) If the Refunding Bonds are successfully issued, all such costs will be paid
from the proceeds of the Refunding Bonds or from funds of the Improvement District available for
such purpose. The County will have no obligation to pay such costs from any other funds.
(b) The County will have no obligation to pay any such costs if the Refunding
Bonds are not issued for any reason:
(i) The 1991 Bonds will not be called for redemption unless the Refunding
Bonds are successfully issued and the necessary funds to redeem the 1991 Bonds are in hand.
Consequently, the cost of redeeming the 1991 Bonds will be contingent on the successful issuance
of the Refunding Bonds and will not be payable if the Refunding Bonds are not issued for any
reason.
(ii) Costs of issuing the Refunding Bonds will also be contingent on the
successful issuance of the Refunding Bonds and will not be payable if the Refunding Bonds are
not issued for any reason; except for such costs of issuance as are otherwise payable by the
Petitioners to third parties who expressly agree that they will seek payment solely from the
Petitioners without recourse to the County.
1~u.~u~ ~ • w . ~
DENNIS K. W. LEE, P. E.
Director
SCHEDULE OF PROPERTIES AND
UNPAID ASSESSMENTS
(Existing*)
Asst. No. TMK Lot No. Original Value % of Original Value Current Value
l 7-3-009-017 7A 1,076,600.00 7.6900% 765,548.24
2 7-3-009-025 7B 7,963,200.00 56.8800% 5,66],800.08
3 7-3-009-026 7C-A 2,730,000.00 19.5000% 1,941,016.96
4 7-3-051-001 7D-A 219,451.68 1.5675% 0.00
S 7-3-051-065 7D-B1 18,501.01 0.1322% 13,128.03
6 7-3-OS1-092 7D-C3l 14,383.02 0.1027% 10,206.12
7 7-3-051-063 7D-D 45,719.10 0.3266% 0.00
8 7-3-OS 1-064 7D-E 669.06 0.0048% 0.00
9 7-3-051-060 7D-F 1,386,069.30 9.9005% 984,828.95
10 7-3-051-999 7D-G 4,014.36 0.0287% 0.00
ll 7-3-051-066 7D-B2 16,452.75 0.1175% ]1,674.79
12 7-3-051-067 7D-B3 14,669.90 0.1048% 10,409.49
13 7-3-051-068 7D-B4 13,564.$4 0.0969% 9,625.51
14 7-3-051-069 7D-BS 14,508.98 0.1036% 10,295.38
lS 7-3-051-070 7D-B6 13,519.26 0.0966% 0.00
16 7-3-051-071 7D-B7 13,600.81 0.0971 % 9,65 t .Ol
17 7-3-051-072 7D-B8 14,512.39 0.1037% 10,297.85
18 7-3-051-073 7D-B9 17,617.02 0.1258% 12,500.91
19 7-3-OS1-074 7D-B11 16,312.29 0.116$% 11,575.07
20 7-3-OS1-075 7D-B12 13,51].82 0.0965% 9,587.82
21 7-3-051-076 7D-B13 13,528.56 0.0966% 9,599.80
22 7-3-OS ] -077 7D-B 14 13,547.17 0.0968% 9,612.94
23 7-3-051-078 7D-B 15 17,071.32 0.1219% 12,113.74
24 7-3-051-079 7D-B16 16,224.85 O.11S9% 11,512.95
25 7-3-051-080 7D-B17 16,224.85 0.1159% 9,978.25
26 7-3-051-081 7D-B18 13,509.65 0.0965% 9,586.25
27 7-3-051-082 7D-B19 13,624.37 0.0973% 9,667.81
28 7-3-051-083 7D-B20 13,601.74 0.0972% 9,651.78
29 7-3-051-084 7D-B21 17,560.28 0.1254% 12,460.63
30 7-3-OS1-085 7D-B23 15,774.64 0.1127% 11,L93.54
31 7-3-OS1-086 7D-B24 ]6,166.25 0.1155% 0.00
32 7-3-051-087 7D-B25 13,61 1.97 0.0972% 9,665.00
33 7-3-051-088 7D-B26 13,627.78 0.0973% 9,780.62
34 7-3-051-089 7D-B27 13,739.10 0.0981% 9,808.25
35 7-3-051-090 7D-B28 15,294.05 0.1092% ] 0,857.5 ]
36 7-3-OS]-091 7D-B29 15,566.59 0.1112% 11,045.99
37 7-3-051-061 7D-B30 27,012.48 0.1929% 19,179.73
38 7-3-051-093 7D-C32 14,548.80 0.1039% 10,323.68
39 7-3-051-094 7D-C33 14,383.96 0.1027% 10,206.78
40 7-3-051-095 7D-C34 14,383.34 0.1027% 10,206.37
41 7-3-051-096 7D-C35 14,383.34 0.1027% 10,206.37
42 7-3-051-097 7D-C36 14,383.34 0.1027% 10,206.37
43 7-3-OS1-098 7D-B37 15,957.27 0.1140% 0.00
44 7-3-051-098 7D-B38 15,690.63 0.1121% 0.00
45 7-3-051-062 7D-C39 2,536.04 0.0181% 0.00
46 7-3-051-062 7D-C40 2,596.07 0.0185% 0.00
47 7-3-051-062 7D-C41 2,596.07 0.0185% 0.00
48 7-3-051-062 7D-C42 2,411.32 0.0172% 0.00
49 7-3-OSI-062 7D-C44 13,566.58 0.0969% 0.00
FINAL TOTAL 14,000,000.00 100.0000% 9,698,920.57
*All amounts are as of EXHIBIT A
October 12, 2001. Page 1 of 2
DETAILS OF DELINQUENT
ASSESSMENTS AND PENALTIES
Asst. No 33 (TMK 7-3-051-088, Lot 7D-B26):
Delinquent Principal: $106.06
Delinquent Interest: 156.54
Collection Charge: 1.32
Penalty: 7.88
ASST. NO. 33 TOTAL: 271.80
Asst. No. 34 (TMK 7-3-051-089, Lot 7D-B27):
Delinquent Principal: $53.08
Delinquent Interest: 79.29
Collection Charge: .66
Penalty: 2.65
ASST. NO. 34 TOTAL: 135.68
TOTAL, ASST. NOS. 33 & 34: X407.48
Exhibit A
Page 2 of 2
SCHEDULE OF PROPERTIES AND
UNPAID ASSESSMENTS
(Proposed*)
Asst. No. TMK Lot No. Value % of Value
1 7-3-009-017 7A 1,629,804.48 16.8040%
2 7-3-009-025 7B 2,603,807.13 26.8464%
3 7-3-009-026 7C-A 1,418,977.76 ]4.6303%
4 7-3-051-001 7D-A 0.00 0.0000%
5 7-3-051-065 7D-B1 13,128.03 0.1354%
6 7-3-OSi-092 7D-C31 10,206.12 0.1052%
7 7-3-051-063 7D-D 0.00 0.0000%
8 7-3-051-064 7D-E 0.00 0.0000%
9 7-3-051-060 7D-F 984,828.95 10.1540%
l0 7-3-OS1-999 7D-G 0.00 0.0000%
it 7-3-051-066 7D-B2 11,674.79 0.1204%
12 7-3-051-067 7D-B3 10,409.49 0.1073%
13 7-3-051-068 7D-B4 9,625.51 0.0992%
14 7-3-051-069 7D-BS 10,295.38 0.1061%
15 7-3-051-070 7D-B6 0.00 0.0000%
16 7-3-051-07] 7D-B7 9,651.01 0.0995%
17 7-3-051-072 7D-B8 10,297.85 0.1062%
18 7-3-051-073 7D-B9 12,500.91 0.1289%
19 7-3-051-074 7D-B11 11,575.07 0.1193%
20 7-3-051-075 7D-B12 9,587.82 0.0989%
21 7-3-051-076 7D-B13 9,599.80 0.0990%
22 7-3-051-077 7D-B 14 9,612.94 0.0991%
23 7-3-051-078 7D-B15 12,113.74 0.1249%
24 7-3-051-079 7D-B16 11,512.95 0.1187%
25 7-3-051-080 7D-B17 9,978.25 0.1029%
26 7-3-051-081 7D-B18 9,586.25 0.0988%
27 7-3-051-082 7D-B19 9,667.81 0.0997%
28 7-3-051-083 7D-B20 9,651.78 0.0995%
29 7-3-051-084 7D-B21 12,460.63 0.1285%
30 7-3-051-085 7D-B23 ]1,193.54 O.11S4%
3] 7-3-051-086 7D-B24 0.00 0.0000%
32 7-3-051-087 7D-B25 9,665.00 0.0997%
33 7-3-051-088 7D-B26 9,780.62 0.1008%
34 7-3-051-089 7D-B27 9,808.25 0.1011%
35 7-3-051-090 7D-B28 ]0,857.51 0.1119%
36 7-3-051-091 7D-B29 11,045.99 0.1139%
37 7-3-051-061 7D-B30 19,179.73 0.1978%
38 7-3-051-093 7D-C32 10,323.68 0.1064%
39 7-3-051-094 7D-C33 10,206.78 0.1052%
40 7-3-OS]-095 7D-C34 10,206.37 0.1052%
41 7-3-051-096 7D-C3S 10,206.37 0.1052%
42 7-3-051-097 7D-C36 10,206.37 0.1052%
43 7-3-051-098 7D-B37 0.00 0.0000%
44 7-3-051-098 7D-B38 0.00 0.0000%
45 7-3-051-062 7D-C39 0.00 0.0000%
46 7-3-051-062 7D-C40 0.00 0.0000%
47 7-3-OS1-062 7D-C41 0.00 0.0000%
48 7-3-051-062 7D-C42 0.00 0.0000%
49 7-3-051-062 7D-C44 0.00 0.0000%
50 7-2-009-028 7C-B 2,715,685.91 27.9999%
FINAL TOTAL 9,698,920.57 100%
*All amounts are as of
October 12, 2001. All
reductions of principal and interest resulting from the
proposed refunding will be applied on a pro-rata basis. EXHIBIT B
EXIIIBIT B
COUNTY OF IIAWAII
Improvement District No. 17
Kaloko Subdivision
Description of Proposed Refunding Plan
1. Outstanding Indebtedness to be Refunded.
The outstanding indebtedness of the Improvement District consists of the Outstanding Bonds
referred to in the foregoing Resolution. The Outstanding Bonds are currently outstanding in the
aggregate principal amount of $10,165,000, bear interest at the rate of 9.5% per annum, mature on
August 1, 2011 and are next subject to optional redemption on February 1, 2002 at a redemption
price equal to 103% of the principal amount thereof. Under the proposed refunding plan, all of the
Outstanding Bonds are to be refunded by call for optional redemption on the next available
redemption date (i.e., February 1, 2002).
2. Issuance owe,, u~ndi~Bonds.
The proposed refunding plan provides for the Outstanding Bonds to be redeemed from the
proceeds of the new series of Refunding Bonds referred to in the foregoing Resolution, together with
available funds of the Improvement District currently held for payment of the Outstanding Bonds.
The Refunding Bonds are proposed to be issued pursuant to a Bond Ordinance to be adopted by the
County Council pursuant to Chapter 12, Article 5, of the Hawaii County Code. The Bond Ordinance
will specify the material terms of the Refunding Bonds, including the maximum principal amount,
maximum interest rate, maximum redemption price and maximum term to maturity (no extension
of maturity is currently anticipated). Subject to the provisions of the Bond Ordinance, the actual
principal amount and other terms of the Refunding Bonds will be determined in connection with the
marketing thereof the Refunding Bonds.
In order for the Outstanding Bonds to be redeemed on February 1, 2002, the Refunding
Bonds are to be issued before the end of December 2001. Such issuance prior to the redemption date
is required under the terms of the Outstanding Bonds because the necessary redemption funds must
be in hand in order for the required 30 days' notice of the redemption to be given. Pending
application, funds to redeem the Outstanding Bonds will be deposited into a special escrow fund
to be held for the benefit of the holders of the Outstanding Bonds.
3. Proposed Metho~Reassessment.
MID Corporation has petitioned the Council for a reallocation of the assessments on the
parcels which it owns within the Improvement District. MID Corporation owns parcels 1 (TMK 7-3-
009-017), 2 (TMK 7-3-009-025) and 3 (now subdivided into TMKs 7-3-009-026 and 7-3-009-028),
B-1
representing a total of $8,368,275.28 of outstanding assessments. The proposed reallocation
involves:
(a) Addition of a new parcel 50 (consisting of TMK 7-3-009-028) to the
assessment roll so that parcel 3 (TMK 7-3-009-26) and parce150 (TMK 7-3-009-028) will
be assessed separately; and
(b) Reallocation of MID Corporation's $8,368,275.28 total assessment
obligations for parcels 1, 2, 3 and 50 on an area basis.
The reallocation of assessments among parcels 1, 2, 3 and 50 will not affect MID Corporation's total
assessment obligation. Therefore, the reallocation will not affect the assessments on other properties
within the Improvement District.
As proposed, the minimum number of installment payments is 116 (as of October 12, 2001)
and the maximum estimated unit of assessment is $.2855205 per square foot. Any reductions in
principal and interest resulting from the refunding of the Outstanding Bonds will be applied on a
proportionate basis.
B-2