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MOS.?S~ F2EPF2ESENTATIVES
STATE OF HAWAII
STATE CAPITOL
HONOLULU, HAWAII 96813
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Testimony on Resolution 203-04 ,Zm,~_ ~i_-.~•.-B~~Y-_-~
State Representative Helene Hate tare--~-- n pp„nal
July 7, 2004 ty(~v~2c"
Honorable Members of the Public Works and Intergovernmental
Relations Committee:
I am here today because I felt it would be helpful for the Council
members to have some background on this issue since I have been
involved since the idea was first discussed on the Main Street
Board. In the 1990's one of Pahoa's main problems was the wide
spread use of alcohol and heroin and the empty syringes and broken
liquor bottles which littered the parking area. AmFac owned the
property but the public had co-opted the front portion for
parking. The back portion of the lot was jungle and a hideout for
drug users.
As Puna's council person at the time, I often met with the Main
Street board and subsequently became a director. I introduced an
Ordinance that added this parcel to the places prohibited to
consume liquor, which allowed the police to enter this private
property and make arrests, which they had not been allowed to do
before. Mayor Yamashiro did not approve, but allowed the Bill to
become law without his signature because AmFac raised no
objections.
Pahoa Main Street obtained a grant from the State and hired Millie
Kim to do a business plan to justify acquiring the property and
making improvements. Jon Olson and I went to Honolulu and lobbied
our State Representative Bob Herkes and Senator Andy Levin, and
they were able to get an appropriation of $150,000, which was at
that time AmFac's asking price to acquire the property, with the
agreement that it would be given to the county who would then make
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an agreement with Pahoa Main Street to oversee the property.
Unfortunately, the Mayor would not accept the property because it
was feared that the gulch contained hazardous waste which could
put the County in a dangerous liability position and be a great
expense to clean up. So the money just sat in the state.
Through the efforts of your present Councilman, Gary Safarik, a
new parcel of 56+ acres was determined to be available for this
amount of money and Governor Cayetano released the money and the
new administration accepted it. By that time the parking lot
parcel had been bought by a private person, who acquired it for
her friends who were operating a Farmer's Market. I was at meeting
with all these parties at which they all agreed that it was
through the generosity of the buyer that the property was acquired
and the purpose was to improve the Farmer's Market and expand the
parking area and beautify the tot, all which the new owner did
with private money. The managers of the Market never paid any
rent, although they charged their vendors. When the owner took out
a liability insurance policy and registered the name, there
developed serious disagreements among the former friends and
bitter feuds have developed in the community. Today the area is
much improved and parking is free, although the owner has teased
it to an adjoining business.
In my experience as a former member and Chairman and Executive
Officer of the Board of Supervisors and as a Council member, the
County always tried to buy or exchange property and if that were
not possible only exercised our power of eminent domain when the
owners agreed to a "friendly condemnation "because we respected
private property rights as being a fundamental American privilege.
Unfortunately, this owner is understandably upset having been
threatened many times with "condemnation" in a very unfriendly
manner. In addition, property values are rising rapidly even in
Puna and with the improvements and the rising market there is a
serious disagreement as to "fair market value". Also I question
the "public purpose" which has to be proved to exercise this
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power. In its present condition the parking is free and there is
still a Farmer's Market.
I urge the Council to reassess their position and get answers to
other questions, such as:
1. if the county takes over, does it have the additional money
for more improvements? (At one point I am aware that parking
meters were suggested to finance the debt and improvements).
2. How does the county propose to pay back the bond issue?
3. What will be the "true" cost, including interest on the bond?
4. What will be the annual maintenance costs?
5. Isn't the money better spent developing the already acquired
56+ acres behind the swimming pool?
6. Also I understand that the county is negotiating for state land
on the highway for police and fire facilities. This is a
better place for these services and in the 19 acres enough
room for other projects.
7. Is it wise to turn private land into public, lose the property
tax revenue and assume additional liability?
8. Since the owner is willing to challenge this condemnation, how
much time and expense wilt be involved in a contested
condemnation?
Thank you for allowing me to express my opinion. I will be happy
to respond to any questions you may have.