COM 0698.000 2002-2004 - Laserfiche WebLink

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HAWAIIAN ISLAND DEVELOPMENT CO., INC. 931 University Avenue, Suite 105, Honolulu, Hawaii 96826-3241 OO Phone: (808) 946-322200 Fax: (808) 946-3224 June 23, 2004 ~7 ~ C ; r= The Honorable Leningrad Elarionoff Council Member, County of Hawaii 77-6399 Nalani Street, Suite 104 3 Kailua-Kona, Hawaii 96740-8980 F-+ Dear Council Member Elarionoff: RE: COMMUNITY SERVICE PROJECT Hawaiian Island Development Co., Inc., Community Service Division has reached agreement with Del Monte and Galbraith Estate to purchase the leasehold interest in Poamoho Camp on Oahu. We hope that once the appraisal is done on the land, the 90-acre tax map key that the camp sits on can be purchased in fee simple at an acceptable price. We have also reached agreement with the residents of the camp and the ILWU to assist them in converting the camp to private ownership as a condominium and/or subdivision. The individual homes will be sold to the camp resident under a cost plus development program. Under this concept the homes and land will be sold to the residents at the lowest possible price, our cost plus five percent (5%) profit. As you are aware, we are also doing a similar community service project in Pahala on the Big Island. We are developing below market agricultural lots for the small farmers that previously had short term rights to farm abandoned sugar cane land. The land is being sold below market using the same concept. Since 1980, my development companies have given away over $100 million in below-market prices to first time Buyers under our community service program. I am writing to see if the County of Hawaii has any projects they would be interested in recommending or supporting. As an example, we recently proposed a 900 acre subdivision to one county. It was a project where they would approve 400 one acre or half acre lots. We would subdivide the property and sell the lots at market price, but do the project as a Community Service project. Limit the developer profit to five percent (5%) and give the balance of the profits to the community. In effect, the value created by any zoning change and/or concession given by the County benefits the County, not the developer. The County in this example could have received over $30 million in cash and/or 400 acres of land free within an 18 to 24 month period. This money could be used to provide affordable housing, parks, etc. Unfortunately the Seller of the land could only wait one year and the county, while interested, did not have the flexibility in the agricultural zoning to allow for the subdivision in a timely manner. We are still working on this proposal in the hope that we will find a solution that will satisfy everyone's needs. Cnm~:t. No. Ref. To: Ref. Date s