HomeMy WebLinkAboutCOM 0014.002 2002-2004 tr o.
Harry Kim Lincoln S.T. Ashida
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OFFICE OF THE CORPORATION COUNSEL
101 Aupuni Street, Suite 325 • Hilo, Hawaii 96720-4262 • (808)961-8251 • FAX (808) 961-8622
January 6, 2003
James Y. Arakaki, Chairman
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720 _
Dear Chairman Arakaki: _
Re: Resolution No. 12-03
A question has been raised as to whether an appraisal was required for the
disposition of the subject parcels in Resolution 12-03. Both Section 2-115(c), Exchange
of real property, and Section 2-118(c), Remnants, require that the value be determined
by an independent appraiser.
In the case at hand, an independent real estate appraiser was contacted, who
established the County's road remnant values as nominal. A formal written appraisal
was not ordered at that point for several reasons:
1) Nominal appraisal value comports with values as established in the
real property appraisal industry, even our real property tax
assessments, which give roadway nominal or no value.
2) Cost to order an appraisal would be a waste of County funds to
establish known values.
3) The County requested the land exchange with the Andrades to help
resolve the County's encroachment problems, and to acquire land
where the roadway actually exists.
4) To request the Andrades to pay one-half of an appraisal for land
that the County wants to get from would terminate the agreement.
5) The appraisal would raise the costs to acquire the parcels. Z
Gomm. No.
Five No.
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James Y. Arakaki, Chairman
Page -2-
January 6, 2003
The underlying rationale for appraisals is to help the County and the Council to
decide whether it is in the County's best interest to exchange or dispose of remnant
parcels. The County wanted the subject parcels where the roadway actually exists.
The alignment is straighter and safer than the old roadway alignment. The Department
of Public Works does not want to maintain the old alignment on their books. The
Andrades were amenable to the land swap, rather than requesting the County to
purchase the rights-of-way. It is clear that the County is receiving fair value in its
exchange with the Andrades. If the Council still feels constrained by the appraisal
requirement, we recommend that the code section be amended to allow greater
discretion on the Council's part.
Sincerely,
TAKASE
Assistant Corporation Counsel
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sidept\dpw\kahana rdVtr council appraisal\t-03\GTde.doc