HomeMy WebLinkAboutCOM 0698.000 2002-2004
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
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The Honorable Leningrad Elarionoff
Council Member, County of Hawaii
77-6399 Nalani Street, Suite 104 3
Kailua-Kona, Hawaii 96740-8980
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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
The Honorable Leningrad Elarionoff
Council Member, County of Hawaii
RE: COMMUNITY SERVICE PROJECT
June 23, 2004
Page 2
The concept of my Community Service Development Division is to undertake projects that
benefit the community. In this model all of the profits go to the sponsors. In Poamoho Camp
that is the residents. In the above subdivision it would have been the County and the residents of
that County that would have benefited. In the Pahala project it is the sugar cane workers that are
farming the land now under short term lease.
I would iike to propose that the County of Hawaii consider similar Community Service Projects
that will benefit the County and the tax payers where zoning is given to a small parcel and the
lots or homes sold at market with the balance of land and/or cash going to the County and
residents of the Big Island. A few years ago I attempted to do an agricultural condominium on
the Hamakua Sugar lands. We received a strong response from Big Island farmers and ranchers,
but could not proceed due to the bankruptcy of Hamakua Sugar. I would be interested in doing a
similar project if lands are available and the County would support such a project to benefit local
farmers and ranchers. Also, any project dealing with affordable housing is of interest to us.
A copy of this letter has been sent to the Mayor and other Big Island county council members.
If you are interested in further discussions or explanation, please feel free to call me at 951-8976.
Sincerely,
Peter B. Savio
President
M:SDC2~PROlECTSVNISCELLANE0US0..ETTERSICOMMUNITY SERVICE LETTER (COUNCIL)-BIG ISLAND.doc