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HomeMy WebLinkAboutCOM 0204.001 2004-2006 vv or N FRED C. HOLSCHUH ~ Phone: (808) 961-8264 ('ounerhnenrber ( FAX: (808) 961-$912 ••i Iii ~ . tii~~oi,Mr.? ' HAWAII COUNTYCOUNCTG~ County of Hawai `i Hawaii County Bui[diug 25 dupuni Slree( /filo, Hawaii 96720 April 14, 2005 MEMORANDUM TO: Virginia Isbell, Chair, Committee on Finance And Members of the Committee on Finance FROM: Fred C. Holschuh, M.D.~~~~. Council Member } ~~C RE: Resolution No. 76-05, Appropriation for a Professional Services Contract to Conduct a Philanthropic Needs Assessment for a Nonprofit County Parks Foundation/Conservancy Resolution No. 76-05, in part, transfers $27,000 from the Clerk-Council Service- Contingency Relief (Account No. 010.101.5101.91) and appropriates the same to the Department of Research and Development-Hawaii County Resource Center (Account No. 010.161.5162.98) in order to fund an 89-day professional services contract to be performed by S. Sanae Tokumura of Solid Concepts, Inc. Last year, I made a commitment to explore a range of funding options to support the acquisition of lands for county parks, shoreline preservation, trails and public access. In this effort, I requested the Legislative Auditor's Office to research various tools and funding opportunities for parks and conservation efforts. A working draft of that study, titled "Funding Hawaii County Parks & Preservation Lands: A Proposal," was compiled in November 2004 and is attached for your review. This study effort, and several subsequent meetings with Mayor Harry Kim, discussed the establishment of a nonprofit county parks foundation or conservancy. Examples of such county or municipal parks foundations are found across the nation. The Fairfax County Parks Foundation and the Central Park Conservancy are two successful examples. In considering the nonprofit model, however, it was felt that an objective, professional assessment should first be performed to assess the receptiveness of the public and the charitable giving community in Hawaii County. (Note: Booklet is on file in the Clerk's Office.) Comm. No. FOT• 1 Ref. To: Preseuf«rr~~ 11 F/awai'i (bunty ~s an Egual Oppor(unity Provider and Emp/Dyer Ref. UOre APR l J r~ This "philanthropic needs assessment," the results of which will be reported to the Council, is proposed to be performed by S. Sanae Tokumura, awell-respected, advance certified fundraising consultant. Her work on behalf of various capital fund drives on our island includes the Hospice of Hilo, Sangha Hall, and the new Hilo Hospital emergency room. Several years ago, she presented two all-day workshops sponsored by the County Council for nonprofit organizations. Her resume and biography are enclosed in the attached report. She brings a wealth of expertise to this task. In preparing this proposal to explore a charitable donor base for county parks, I wish to thank Mayor Kim and Andy Levin for their keen interest and close coordination. They proposed that this needs assessment be conducted under the Department of Research and Development. I invite my fellow Council members to propose names of interviewees and suggest questions for inclusion in this charitable prospectus for our island. The work plan and list of prospective interviewees shown on pages 31-32 of the attached study are preliminary only. Your referrals and thoughts are welcome. Establishment of a nonprofit parks foundation or conservancy with the exclusive mission of securing private donations and foundation grants to support county parks and preserving lands is a promising, cost-effective initiative. The fundraising process could unite the Big Island community in a common cause, while not burdening its taxpayers. Thank you for your consideration of this proposed appropriation. Please feel free to contact me if you have any questions regarding this matter. /FCH attachments FUNDING HAWAII COUNTY PARKS & PRESERVATION LANDS: A PROPOSAL . , Os `M'me Legislative Auditor's Office, County of Hawaii November, 2004 r~ [ FUNDING HAWAII COUNTY PARKS & PRESERVATION LANDS: A PROPOSAL I. EXECUTIVE SUMMARY 2 II. BACKGROUND 3 III. DISCUSSION 5 IV. CHARITABLE GIVING-AN OVERVIEW 6 V. CHARITABLE GIVING FOR THE ACQUISITION OF PUBLIC LANDS 7 1 1. National Matine Sanctuary Foundation 8 2. National Park Foundation 9 3. Fairfax County Land Preservation Fund 9 4. Central Park Conservancy 10 VI. FINDINGS OF THE NATIONAL GOVERNORS ASSOCIATION AND THE NATIONAL ASSOCIATION OF COUNTIES 11 VII. TOOLS FOR PUBLIC PARKS AND OPEN SPACES 13 1. Governmental Tool Box- Administrative Tools 13 t 2. Voluntary Land Protection Program 15 3. Outright Purchase Of Public Parks And Open Spaces 19 VIII. WHAT LANDS SHOULD BE CONSERVED OR BOUGHT? 20 IX. KA`U SHORELINE: A CASE STUDY 26 X. GUIDELINES FOR A HAWAII COUNTY PARKS & OPEN SPACE PROGRAM 28 XI. STEP # 1: A PHILANTHROPIC MARKET ASSESSMENT 29 XII. ADVISORY MEMORANDUM & WORK PLAN 30 APPENDICES: SANAE TOKUMURA: CURRICULUM VITAE/BIOGRAPHY 34 f ` U.S. FISH & WILDLIFE SERVICE LAND ACQUISITION POLICY L Legislative Auditor's Office, County of Hawai`I November, 2004 I L 1 1 t EXECUTIVE SUMMARY ~ At the request of Councilman Fred C. Holschuh, this paper was prepared by the Legislative Auditor's Office to examine issues and options concerning county initiatives to support public pazks, open space and preservation lands in the County of Hawaii. ~ The momentum for consideration of a sustainable funding base for new public lands stems, in part, from a proposed county charter amendment (Bill 270) to dedicate up to 2% of real property taxes - annually fora "Public Access, Open Space, and Natural Resources Preservation Fund." While Bill 270 was not adopted as a ballot proposal in 2004, it did call attention to the cause of public pazks and land conservation. In a larger sense, the pace of growth in Kona, the sale of newly mazketed properties in Ka`u and along the Hilo-Hamakua coast, and coastal preservation concerns arising in the Ka`u District following the dissolution of C. Brewer fuel public demand for county-led conservation efforts. I, This paper recommends that a philanthropic "needs assessment" be conducted to evaluate the potential fora "blue ribbon" nonprofit island conservation organization to solicit donations, grants ~ and bequests on behalf of public lands. While bond measures or designated taxes for land acquisition i remain options for policy-makers, this paper suggests that it would be prudent to first explore the ~ viability of a voluntary donor-based program in support of public land initiatives, for the following reasons: • Public tax dollars aze sorely needed for the annual operating costs of county government and to address perennial deficits in county infrastructure and public safety -roads, water supply, solid ~ waste management, flood control, police and fire protection, etc. In the coming decade, with adoption of the County's General Plan and subsequent Community Development Plans and Functional Plans accompanied by various capital improvement projects, infrastructure needs may I place great demands on discretionary County operating funds and new debt. From this perspective, aprivate-public partnership approach to the designation and/or acquisition of new public lands administered by the County maybe the wisest approach. ¦ Public enthusiasm for pazks and conservation efforts is historically proven. It is evidenced by many polls, an array of private-public conservation initiatives, ballot measures, and the f proliferation of newly established land trusts. Clearly, much of the public and many private foundations are willing to contribute to the cause of conservation and public lands. ~ An array of policy options and tools to further conservation -many of which require little or no ~ public funding -deserve full and methodical consideration. Local government may employ a variety of land classification tools to stem development and preserve treasured lands. Similazly, private landowners may place lands in conservation or agricultural easements, or transfer development rights to protect valued lands for the public. Outright acquisition of lands using public tax dollars, while sometimes necessary, should not be seen as a first option. ~ Voluntary approaches to public needs can build a proactive, positive and affectionate community. For kama`aina residents, a local public lands conservancy offers the opportunity to preserve i Hawaii's land for future generations, along with those cultwal practices and traditions rooted in ~ the particulaz history and experiences of places. For new residents, the passions unleashed in experiencing a pazadise found may take shape in building a voluntary institution that assures that that paradise is never lost. In either case, it's worth a try. 2 J I. BACKGROUND 1 Earlier this yeaz, Bill 270, a proposed Hawaii County Charter amendment, sought to appropriate .5% to 2% of yeazly real property tax revenues to a dedicated special fund titled "Public Access, Open Space, and Natural Resources Preservation Fund." If adopted, the measure would have set aside up 1 to $2.3 million annually (depending on current revenues and budget) for a County of Hawaii lands and open space preservation fiord. The proposed amendment failed to win adoption to be placed on the 2004 ballot. 1 The proposed fund was to be used to purchase or otherwise acquire "lands or property entitlements and improvements in the County of Hawaii" for the following purposes: (1) Public outdoor recreation and education, including access to beaches and mountains. (2) Preservation of historic or culturally important land azeas and sites. (3) Protection of significant habitats or ecosystems, including buffer zones. 't (4) Preserving forests, beaches, coastal azeas and agricultural lands. ~ (5) Protecting watershed lands to preserve water quality and water supply. (6) Conserving land in order to reduce erosion, floods, landslides, and runoff. (7) Improving disabled and public access to, and enjoyment of, public land, and open ^ space. (8) Acquiring disabled and public access to public land and open space. (9) Preservation of traditional recreational activities, including hunting and fishing. The proposed charter amendment was enthusiastically supported by the Siena Club, Kona and Waimea chapters of the Outdoor Circle, the Trust for Public Lands (TPL), and many other i community groups and citizens. A poll of 405 likely Big Island voters commissioned by TPL and I conducted by Fairbank, Maslin, Maullin & Associates (FMM&A) and QMark Reseazch & Polling (QRP) during March 30-April 4, 2004 showed broad support (70% of surveyed voters) for the proposed amendment. Charter amendments for a dedicated tax to purchase conservation lands were adopted by Kauai ^ County and Maui County in the 2002 election. In both counties, over 70% of the voters approved the measures. Across the nation, the past decade has witnessed broad support for a variety of land conservation initiatives by both the private and public sectors. The Nature Conservancy, now a $3 billion nonprofit organization, has bought vast tracts of land throughout the world. Its notable Hawaii ^ purchases include lands on Molokai, Palmyra Atoll and the Hema native forest preserve in South Kona. The Trust for Public Lands, which provides interim financing for state and municipal land conservation acquisitions, is a strong advocate of public land financing via ballot initiatives. 3 in a press release dated November 4, 2004, the Trust for Public Lands announced the results of conservation measures on the November 2"d ballot in states and communities nationwide. Voters in 111 communities in 25 states passed ballot measures to create $2.4 billion for protecting land for ' parks and open space, according to TPL. Overall, 111 of 147 local and state measures nationwide were successful. Among the ballot initiatives that failed, voters showed a greater inclination to reject designated property taxes (26 failed measures) than bonds (10 failed measures). Revenue sharing proved to be a winning formula for conservation ballot measures. States with the j most local conservation measures on the ballot were those offering matching funds to local govem- I ments, especially Florida, Massachusetts, Michigan and New Jersey. These four states accounted for over half the total number of ballot measures for conservation funding in the nation in 2004. r ~ Traditional bond measures remain a populaz capital financing mechanism for public land acquisition, whether adopted via ballot measures or legislation by county and municipal councils. Bonds aze an r attractive park financing mechanism because they provide lazge sums of up-front cash. According to the Trust for Public Lands, "Since the 1980's, local borrowing capital to acquire parks, natural azeas, and open space has increased substantially. In fact, the amount of park and recreation bonds issued reached a high of $1.37 billion 1997, up from $270 million in 1987." I The Trust for Public Lands (TPL) champions dedicated tax measures for public lands acquisition as a way of literally having money on hand to conduct land transactions as opportunities or public clamor arise, and/or to acquire lands that might otherwise be "lost" to private dispositions. A dedicated "special fund" has the added advantage of funding land purchases without incurring the long-term interest and municipal debt associated with bond measures. A special fund may also facilitate the leveraging of funding partnerships (federal funds) for the purchase of conservation lands, often with the help of an interim financing agent such as TPL. Two notable examples illustrate this dynamic. On Oahu's North Shore, TPL brokered a cooperative funding agreement to purchase the 1,129-acre Piipukea-Paumalii property adjacent to the Army's Kahuku Training Area as open space. The agreement calls for the Army to provide funding along with the North Shore Community Land Trust, the State of Hawaii, the federal National Oceanic and Atmospheric Administration, and the City & County of Honolulu to purchase and protect the parcel r that dominates large bluffs along the North Shore. The City and County of Honolulu will contribute I its shaze through a bond measure. r On Maui, TPL has provided full interim financing to purchase the 70-acre Mu`olea Point in Hana from the current private landowner, Hanahuli Associates. Public pwchase of the $4 million property will be accomplished with $2 million in federal Coastal and Estuarine Land Conservation Program funds, a state contribution of $100,000 released by Governor Lingle, contributions from the Office of Hawaiian Affairs and U.S.D.A. Rural Development Program, and $1 million from the County of Maui's Open Space Fund. The remainder of funds to purchase the property -some $300,000 needed by December 31, 2004 - is being sought through a TPL fundraising appeal to refund the "significant money" borrowed by TPL in what it described as a "last-minute move [that] protected the property from imminent private sale." In fairness, while TPL says it "raised a large portion of the funds it needed to permanently protect and stewazd the land" [TPL Fall/Winter 2004 Newsletter], it more accurately lobbied for the mix of federal, state, and county taxpayer funds that enabled the purchase of Mii`olea. r a ' II. DISCUSSION In the Council's consideration of Bill 270, the precedent of appropriating monies via a charter _ amendment raised serious concerns. It was noted that voter-approved multi-year spending initiatives in California and Oregon had led to massive budgetary crises, along with California's traumatic recall election and the subsequent election of Arnold Schwarzenegger as governor this year. Fundamental to this concern is retention of the classic model of representative government and the role of the legislative body to appropriate funds and exercise responsibility for the fiscal and ~ budgetary needs of local government. L The broad scope of land acquisition activities contemplated by Bill 270 also raised concerns. Such ~ matters as protecting "significant habitats or ecosystems" or "forests" or "watershed lands" historically have been state responsibilities performed by the Department of Land and Natural Resources, not the counties. i The traditional role of the counties has been to provide, maintain and staff recreational public pazks, including beach pazks. Where public access and traditional native rights have been asserted - as in ~ the instance of Kohanaiki shoreline -the current county administration has facilitated dialogue between community advocates and the landowner resulting in a no-cost transfer of shoreline setback property to the County. i Overall county tax policy will be a factor in any consideration of a dedicated fund for pwchasing new county lands. Presently, the County Council is considering a package of tax reform and tax ~ relief bills proposed by Mayor Kim. Fundamentally, these bills seek to provide an equitable resolution to the taxation of agricultwal lands, additional homeowner real property tax exemptions, and a growth cap on the assessed mazket value of homeowner properties. ~ As proposed by the Finance Department, it is anticipated that the net effect of these bills, if adopted, will be "revenue neutral" -that is, overall real property tax collections will increase in tandem with growth in property valuations over the next few years. In tum, that revenue growth is seen as commenswate with the County's budgetary needs. No new tax increase or dedicated tax is anticipated for a special land acquisition fund. How, then, should the County best proceed to secwe long-term funding for the purchase of open L space and pazk lands? ' Dedication of a percentage of real property tax revenues to a special fund -whether adopted by ordinance or a charter amendment -has the advantage of securing a reliable amount of funds annually with relative ease. The disadvantages of a fixed, earmarked tax fund aze two-fold: (1) dedicated revenues compete with all other county programs for funds; and (2) earmazked local property taxes collect money only from ' property owners, not other citizens or visitors, foundations or other sources. In his letter dated May 26, 2004 to council members, Dr. Fred Holschuh proposed a "more thorough- going approach to the objectives proposed by Bill 270 and the range of funding options to fulfill them." He noted that "there is more than one way to fund and support protected lands." Among them aze bond measwES to buy land and receipt of gifts of property by resolution. He also suggested 5 i L L that "we [the Council] should more Fully explore the opportunity for private donations to a county preservation fund." L In a subsequem letter to Mayor Kim dated 3une 3, 2004, Dr. Holschuh stated "I'oo often, we think of taxes as the sale source and sum of our means. In doing so, we pass up opportunities to build ~ stronger communities nourished by our awn good will and investment. One vital component of a revenue stream For land acquisition is our own aloha -the natural generosity and volunteerism of Hawaii's people. Historically, citizens have always made significant volunteer donations and L bequests to community parks and recreational Facilities. We can encourage the best of ourselves I am confident we will he astonished by the results." III. CHARiTABLEGIVING-AN OVERVIEW The historic, sustained strength of voluntary charitable giving is ~ ~ ~ • ' • a pillar of the American social • • • L fabric. In 2003, American individuals, r estates, foundations, and corporations gave an estimated $240.72 billion to charitable who gives L causes, according to (firing IISA the most? ?1104, a study released by Gi~zng USA Foundation, a PEOPLE public service initiative of the p~ Trust for Philanthropy of the American Association of L Fundraising Counsel (AAFRC). This is an increase of 2.8 percent over a revised estimate of $234.09 billion for 2002. It is also the highest raze of growth seen since 2000. Since 1948, charitable giving has been 2 percent or more of gross domestic product (GDP} following ~ more than two decades below that mark. For 2003, fatal contributions are estimated to be 2.2 percent ~ of GDP. The all-time high was 2.3 percent of GDP in 2000. L In 2003, charitable giving by individuals was an estimated $174.36 billion. Gifts by individuals accounted for 74.5% of all philanthropy. ~ Gifts received through bequest in 2003 are estimated to have increased 12.8 percent to $21.60 billion L from a revised estimate for 2002 of $19.7 S billion. Giving USA surveys nonprofit organizations about haw much they received. For 2003, SS percent of responding charities in the Giving L'SA survey reported an increase in charitable contributions in ~ 2003 compared to 2002, 8 percent reported virtually no change and on{y 37 percent reported a h L decline in gifts. This is an improvement over 2002, when surveyed organizations were split nearly SQ/SO between increases and decreases in contributions. L The AAFRC chart shown to the right shows 2003 giving by type t i t~ ` ' ~ - • L of recipient organization. _ • - • ~ • Gifts to "&nvironment/Animals" causes totaled $6.95 billion in 2003, representing 2.9% of all chazitable giving. L In 200}, gifts for environmental causes totaled $6.41 billion, L according to AAFRC, an increase of over a billion dollazs from the total of $5.25 billion L uivPn in 199R Such annual growth in contributions to environmental causes has held steady over the past five yeazs. IV. CHARITABLE GIVING FOR THE ACQUISITION OF PUBLIC LANDS The proliferation of private and community land trusts throughout the nation during the past decade suggests that public enthusiasm for land conservation initiatives is at an all-time high. Tn 1950, far example, just 53 land trusts operated in 26 states. Today, according to the Land Trust Alliance, mare than 1,300 land trusts operate across the country. Between 1490 and 2000, the amount of land protected by local and regional Land trusts through the use of conservation easements increased fivefold to 2.6 million acres. Conservation easements are used to protect coastlines, farms and ranchlands, historical or cultural landscapes, scenic views, streams and rivers, trails, wetlands, wildlife areas, and working forests. This passion For voluntary {and and historic conservation 3s not unique to the United States. In Great Britain, the National Trust is a registered charity, independent of the British government, founded in 1895 to preserve places of historic interest or natural beauty permanently for the people of L the United Kingdom to enjoy. It relies entirety on the generosity of its supporters, through membership subscriptions, gifts, legacies and the contribution of many thousands of volunteers. Today, it protects and opens to the public aver 200 historic houses and gardens, 49 industrial monuments and mills, 612,000 acres of the most beautiful countryside, including 600 roles of coastline, and looks after forests, woods, fens, Farmland, dawns, moors, islands, archaeological remains, nature reserves, villages -for ever, for everyone. I L At both the national and iocaf level, Americans also contribute hefty private donations in support of public lands and pazks. Four examples illustrate this giving dynamic and its success: i r r r L L I. NATIONAL MARINE SANCTUARY FOUNDATION ' One example of a privately Led fundraising effort fotutded L specifically to partner with a public conservation program _.--r„~-~ is the National Marine Sanctuary Foundation. - L The National Marine Sanctuary Foundation is the private NATOI N:v.Mattixr sector, ran-profit partner to the National Marine Sanctuary S.ntacruwav FOUNDATION Program of the National Oceanic and Atmospheric Admin- istration, aprogram of the II.S. Department of Commerce. ~ The National Marine Sanctuary Foundation [www.NMSFocean.arg) was literally "hom" on Maui I az an exhibition of the works of Hawaii mazine artist Robert Lynn Nelson. Nelson's "two wands" paintings depicting fife above and below the ocean's surface inspired a client to organize the foundation. Today, its board of directors includes Jean-Michel Cousteau and Leon Panetta, former White House Chief of Staff. L The foundation assists the federal marine sanctuary program -including the Hawaiian Islands Humpback Whale National Marine Sanctuary -through projects Like its SPLASH research program, annual whale count, and Kauai Family Ocean Fair. Donations from individuals groups and companies play a ke_y role in preserving fisheries, humpback whale habitat, carat reefs and coastal resources. Among its sponsors is Starbucks Coffee Hawaii. In November 2004, a series of fundraising concerts by the band Little Feat wit! be held throughout the islands to add to the t coffers of the Foundation. i On February I0, 2004, the foundation kicked off a major partnership program with Outrigger Hotels with the unveiling of the first hotel-based Marine Life Information Kiosk. This innovative interactive display engages the viewer with dazzling photos and interesting facts about Hawaii 's L marine life and ecosystems. The permanent exhibit will ultimately reach hundreds of thousands ~ of hotel guests and visitors with the message of stewazdship so essential to preserving the marine i habitats of the Hawaiian Islands. The kiosk is located in the lobby of the Outrigger Reef Hotel in Waikiki. its computer ` programming and physical design was a collaborative project of the foundation and NOA,4's National Marine Sanctuary Program. Addirionalty, Outrigger wifl offer a series of permanent educational exhibits, traveling exhibits, expert lectures, ocean acttvities and community service projects at various hotel properties on Oahu, Maui and the Big Island. r-_ It provides Outrigger Hotels and Resorts guests people protect what theti love and then love what µ9t11 the apportUmty SO make a financial they understand. 77116 Computer kiosk will help conhibution to the National Marne Sanctuary provide greater uvdetstaading of humpback a hales Foundation on behalf of the Hawaiian Islands and the waters in mhkh they live. Humpback Whale National Marine Sanctuary. Jean :Riche/ c'ousreau K r { Already, many local residents and shoppers along Hilds Bayfront are familiar with the much larger NOAA coral reef museum located in the S. Hasa Building steps from the Farmer's Market. ' on Hilo's Bayfront on Kamehameha Avenue. The museum, which opened in May 2003, is free, family-friendly and features interactive displays L about the Hawaiian Islands Coral Reef Ecosystem Reserve or "Mokupapapa," the Hawaiian term for small, remote islets. A major focus of the museum is the Hawaiian atolls that stretch 1,200 miles beyond the major islands, along with a 2,500 gallon reef aguazium. For his considerable work and advocacy on behalf of federal marine protection programs, U. S. Senator Daniel K. Inouye was awarded the National Marine Sanctuary Foundation's 2004 Steward r~rthe Sanctuary Award at a groundbreaking ceremony for the new Education Center at i the Hawaiian Islands Humpback Whale National Marine Sanctuary in Kihei. 2. NATIONAL PARK FOi3NDATION Like the National Marine Sanctuary Foundation, the National Pazk f Foundarion (NPF} supports America's national parks by raising private l funds, making strategic grants, creating innovative partnerships and increasing public awareness. NPF was chartered by Congress in 196'7 and launched with a million start-up grant from Laurance Rockefeller. it receives na federal appropriations. L In 2003, NPF raised over 544.3 million is contributions. Total revenue was SSZ.I million and fatal assets rase to nearly $88.8 million. Over the past eight yeazs, NPF has provided a total of $142.3 million in contributions, $241.8 million in total revenue and $181.1 million in total grants and program support to national parks across the country. Fundraising and administrative casts represent I0% of all Foundation expenses. Ninety cents of every dollar is dedicated to park grants and program support. NPF retains an "A" rating from the American Institute of Philanthropy for responsible use of donor funds. The Foundation is governed by a Board of distinguished national, civic and business leaders, appointed by the Secretary of the Snterior. By Congressional charter, the Secretary of the Interior is the Foundation's Chairman of the Board, and the Director of the National Park Service serves as its Secretary. David Rockefeller, 3r., serves as NPF's Vice Chairman and is the citizen Leader of the Board. 3. FAIRFAX COI3NTY LAND PRESERVATION FifND e p _ In Virginia, the Fairfax Couaty Land Preservation Fund, created by the A°'t`'°" C Board of Supervisors in January 2001, gives citizens the means to take R direct, personal action to help conserve the county's shrinking open space. q Donations to the Land Preservation Fund are tax deductible. 9 I The Fairfax County Park Authority, as the steward of parkland in Fairfax County, is the agency entrusted to develop, administer and implement the Land Preservation Fund. The Pazk Authority ' Board is appointed by the Fairfax County Board of Supervisors. These 12 appointees are comprised of one representative from each of the nine magisterial districts, plus three at-large members. The board sets policy and establishes priorities for the park agency. ~ In Fairfax County, where population is increasing by 20,000 people annually, growth and demands for services place parks in competition with the needs of schools, police, fire/rescue and human services For limited public funds. The pressure is two-fald, because growth also speeds [ conversion of open space for development. Today, less than 14% of the county's area remains as open space. Donations to the county's land acquisition fund supplement the county's allocation of public Funds for the preservation effort. L 4. CENTRAL PARK CONSERVANCY Designed by Frederick Law Olmsted, New York's Central Park was the first large-scale park built L according to a plan and a social ideal. The New York Landmarks Preservation Commission once described the park as reflecting "the aspirations of a people for their city," a place that provided "physical and spiritual relief From the pressures of an urban industrial society." Yet by the 1970s, the park was uninviting, ill-maintained and a notorious haven far crime and drug dealing. Founded by Elizabeth Barlow Rogers, Olmsted's biographer, the Central Park Conservancy, a C private nonprofit organization, began raising private money for the park's restoration in 1480. The conservancy transformed the park in increments, starting with street lamps and moving on to a donor campaign that has raised nearly $300 million. Since 1998, the Conservancy is chazged with r day-today management of the park under a unique contract with the city. Through private danaiians from more than 23,000 individual members, foundations, and ~ corporations, the Conservancy provides 85 percent of the park's $16.7 annual operating budget, L funds capital improvements, maintains the grounds and facilities, and offers programs for volunteers and park visitors. r With mare than 20 million visitors annually, Central Pazk is the most visited urban park in the ~ LFnited States. Its 843 acres contain 150 acres of lakes and streams, S8 miles of pedestrian paths, ~ 26,000 trees, nearly 9,000 benches, and 275 bird species, Its Great Lawn, North Meadow, ~ Reservoir, Carousel and Strawbeny Fields are some of New York City's most famous landmarks. For undertaking "one of the nation's most complex preservation projects ever," the National Trust for Historic Preservation awarded the Central Park Conservancy a National Preservation Honor Award in 2001. Said Richard Mae, president of the National Trust, "The Central Park Conservancy has rightly earned its reputation as one of the nation's Foremost park conservancies. Through an innovative - public-private partnership and an unprecedented level of public involvement, the park has once again become the jewel of Manhattan." 1~ r r ~ IV. FINDINGS OF THE NATIONAL GOVERNORS ASSOCIATION AND THE NATIONAL ASSOCIATION OF COUNTIES r ~ National Governors' Association Survey In 1999, the National Governors' Association (NGA) commissioned a survey on public lands and ~ found that forty-six states had some kind of program in-place for financing the acquisition of open space. The NGA report, titled State Investment Strategies to Save Open Space and Steer Development, was prepared by the Natural Resources Policy Studies Division, NGA Center for Best Practices. The NGA study found that some of the state programs involved heavy, direct state financial and planning involvement. Others utilized broad goals to guide local decisions and established frameworks within which state and local governments coordinated their policies ( and actions. In still other states, the programs were lazgely voluntary. t Reported financing mechanisms ranged from general fund and lottery revenues (Arizona); a mix of sales tax revenues, bond issues, private donations and development dedications (Colorado); dedicated sales tax and use tax revenues (New Jersey); oil royalty funds (Alabama); real estate transfer tax funds (Arkansas and Illinois); cigarette taxes (California); general obligation bonds (Connecticut); environmental license plates (Georgia); general funds for a Natural Areas Reserve Fund (Hawai`i); hunting license fees (Idaho); state game license fees (Montana); tax check-off donations (Ohio); and many others. State bond issues were the most prevalent funding measure. National Associadon of Counties Open Space Report Many studies have been conducted on state-level efforts to protect open space; however, little is known about county-level efforts. In July 2004, the National Association of Counties (NACo) and the National Center for the Study of Counties at the Cazl Vinson Institute of Government, University of Georgia, issued the first nationwide survey of county-level open space protection efforts (County Open-Space Protection Efforts; A Survey of the Current State of Open-Space Protection Efforts by America's Counties.) The NACo survey examined various tools and strategies employed by counties to protect open space. I County revenue sources supporting the acquisition of open space included budget appropriations, general obligation bonds, a dedicated portion of the property tax, impact fees, state funds, federal funds, and private sources. When asked to indicate the primary source of funds used to acquire open space, state funds (31%), county budget appropriations (23%) and private sources (11%) were most frequently l identified. Respondents from Mid- Atlantic, Midwestern, and Western counties indicated state ` revenues as the top source of funds for open space acquisition while county budget appropriations were identified as the top source of funds for respondents from the South. ~ A majority of respondents from the West (50 identified private sources as the top future funding source while a majority of respondents from the Mid-Atlantic states (82%) and the South 11 L L (63%) saw state funds as the top future revenue source. Other funding sources listed by respondents included forest revenues; open space trust funds; development tax; landfill closure L funds; watershed funds; and pazkland fees. The majority of respondents perceived the biggest bazriers to open space protection asfinancial - L lack of funds for land acquisition, maintenance, and planning or planning staff were the most commonly cited barriers reported. Lack of support from federal and state governments as well as incomplete knowledge of protection tools were cited by about half of respondents. L Other barriers included. (1 }high percentage of federal and state owned land in county; (2} lack of growth/devebpment in county; (3) no political leadership; (4) no public demand; (5) strong property rights feeling in county; and (6) increasing land values. Figure 1 I (shown below) from the NACo report indicates the relative prevalence of open space protection tools reported by county respondents. Figare 11. Tools Used by Cauubes fa Opm Space Prorecuob ..uq....a'q~tlW^n au Flv.b r~ Oonabon. 1,% GY.bf mNne aNl^wi. p9. e^.e ^uYeMan rpurr.w~. K% laM V W y~vbeb^n eNlelwC.. 6!X W.r4YCWl0l. as+c ^.xs. e^..^... r^. w•^ w.^. .^n•w.r a.a^.~w. ^.uwww. aex~ L r.._ ^r e...wywm.p~rt. aa+s o.^w.. r^. ^p... wn i.p.N aex~ .....r^r ...ww^.m.4m. rx L Figure I S (below) shows the anticipated fimding sources for county open space protection efforts. L lnterestingiy, private funding sources aze expected to outpace budget appropriations, bond measures and dedicated taxes. L Figul•e 1±. Anticipated Fwxiulg Sources for Fume Opels Space Protection amts funQa caw L Ptlr ete fbbtline sources sew L COYflhl budgBt 9p(NOprteborle 0%w few{e~ /yMB YTA ' Ill4iel (eBe tN ~ Other sources law GeMret OOligetkxe DO(11te sew Demcana partbn of properly tee ew Deblesiea portion M aabe tax ew t2 J J Over 60% of the respondents (S44 surveys were rettuned from 1,298 cotmties polled) indicated that quality of life, protection of farmland, and environmental benefits were important or ~ somewhat important reasons for protecting open space [Figure 4 below]. J NOTE: Among Hawaii's Four counties, only the City & County of Honolulu responded to the i survey. A copy of the NACo report on county open-space protection efforts is on file in the Legislative Auditor's Office. Figure 4. Reasons for Protecting Open Space Contritloba to quaniy of NTs PfOLaeb brflflMtl Prtlvltlsa anYHOamsnbl OO MTtta _ pnportant AtHacb YltttOia ~ EtlrnatYhat ~ PlOllltlta• swnOmie tlavabpma Ot snportent asrvea ea a groartn managamant tool beta aas• OCOOOmIe YalaO Of ~ nvsrby fans creabe • cormBmty avcui space MomObs stns es an0 axs retie ~ The report concluded: "Survey resuhs indicate that counties need assistance to expand resources for acquisition, planning, and maintenance of open space, to increase understanding of land protection tools and strategies, and to help garner support from federal and state levels of government, as well as from private organizations." L VI. TOOLS FOR PUBLIC PARKS AND OPEN SPACES An array of administrative and zoning tools are available for the acquisition of pazklands and ~ preservation of open spaces. While this paper focuses on a public/private donor strategy for the ~ acquisition of public lands by the County of Hawaii, it is important to Hate that the purchase of lands in fee for public purposes is on{y one of many tools available to government, conservationists and public park advocates. Traditional -and expanding -county land use controls, beginning with a zoning code, provide county govemment with a toolbox of options. A general (though not exhaustive) summary of govemment-mandated land use controls and voluntary actions by private landowners is provided below. L Govemmentai Tool Box- Administrative Tools Zoning -Zoning is the traditional method for counties to influence development. The application of zoning tools can be an effective way to minimize the impact of development on significant natural or unique features of the land Counties that create zoning districts _ with the invent to preserve open space aze mare apt to preserve lazge azeas of land, and as such, preserve larger ecosystems and agricultural lands. Concerns over inning as a rs preservation tool include fairness to property owners, the loss of both property rights and potential development profit, and the need for intergovernmental collaboration - e,g„ state land use commission and county government. Some zoning tools employed by counties include: ¦ Agricultural and forestry districts • Planned use developments (PUDs) • Open space districts ' Urban growth boundaries and greenbelts • Cluster development and design districts ~ Performance zoning standards based on permissible impacts ¦ Overlay district -superimposing another district boundary (i.e. floodplain district) over ` - current zoning. Proffers -Proffers aze voluntary offers made by a rezoning applicant to offset the impact of a requested rezoning. Proffers can limit uses allowed on the site, and provide public improve- , ments, land or cash to mitigate development impacts. The county estimates what it will cost to provide infrastructure to new projects, then suggests what percentage developers should ` ~ offer to pay. If the developer agrees to the government's proffer, the rezoning request is ~ likely to be approved. Dedications -These aze requests from a county that a developer dedicate a negotiated portion of his or her land to open space as a condition to obtaining approval to build. Impact Fees -These are fees assessed to the developer to help pay for infrastructwe and public amenities necessitated by the new development. Impact fees may be applied to ofl= site (i.e. fund for a new firehouse) as well as on-site improvements (i.e. roads and sewer - lines). [Presently, the Hawaii County Council is looking at funding an impact fees needs assessment study required by state law as a necessary step preceding adoption of an impact fees ordinance.] Development Incentives/Disincentives -Incentives include bonus densities offered to landowners or developers who wish to set aside large portions of their land as open space. Alternately, disincentives discourage conventional "cookie cutter" development designs. A disincentive could involve significant density reduction in lot yield for those developers who discount community open space objectives. Deed Restrictions -This is a constraint on the use of property that is recorded on the property's deed. Deed restrictions can be required of new developments or negotiated with - current landowners. The right to enforce the restriction is given to atax-exempt charitable organization or a government agency. A common form of deed restriction is a conservation easement. Concurrency - Concurrenly, a policy instrument now under consideration in Hawaii County, compazes the availability and adequacy of service provision to the timing and amount of land use demand. A concurrency policy essentially requires that public facilities will be available concurrently with development through development permit negotiations or t4 1 exactions. A concurrency policy can ensure that no new developments occur until infrastructure is provided. On the down side, the costs of new infrastructure aze shifted to developers and, ultimately, new home buyers. A concun•ency policy needs inter jurisdictional and multi-agency cooperation to succeed. Government inaction itself is not a basis for a concurrency standazd. Purchase of Development Rights (PDR) -PDR programs use public money to purchase development rights to privately owned land. PDR offers a way for counties to preserve lands in perpetuity without incurring the cost of purchasing the lands outright. In such a program, a landowner is paid the difference between the value of the land based on its development potential and the value of the land in its present use. Funding for PDR programs vanes between jurisdictions, with many communities using bond measures. Some analysts suggest that a PDR program must be part of a land preservation strategy. To be successful, lands must be ranked and objectives cleazly defined so that limited funds can be used to derive the greatest benefit. With respect to takings issues, PDR has the legal advantage in that most PDR programs are voluntary and offer compensation to a landowner placing restrictions on his/her land. In the case of agricultural lands, most jurisdictions with successful PDR programs believe that having a supportive farm community with a desire to continue farming is crucial. From a mazket perspective, it should be acknowledged that if the agricultural economy is not strong enough to survive long term, a PDR program is not likely to maintain the economic viability of farming on its own. Transfer of Development Righte (TDR) -Like PDR, Transfer of Development Rights programs compensate the landowner for the real or perceived loss of land value. Under a TDR, development rights (or density units) are transferred from an area where preservation is desired to a more developed area with the ability to accommodate a higher density (usually an azea with existing infrastructure). Unlike PDR programs, which are often publicly funded, the developer pays the landowner directly for the development rights. Usually the developer profits from the higher density in the development azea. A TDR system works best if development rights are transferred to an existing urban development and do not contribute to urban sprawl. A TDR program also requires the coordination of several governing bodies to set up sending and receiving zones for the development rights. 2. Voluntary Land Protection Programs Voluntary land preservation programs offer the advantage of lessening legal disputes over property rights and takings issues. Land acquired through these methods is seldom controversial and often remains as permanent open space. Many voluntary programs, such as easements and land donations, may qualify the property owner for tax incentives. Present federal tax law allows both individuals and corporations to take deductions from their taxable income for gifts of property to tax-exempt nonprofit conversation organizations or ` to a government agency. Individuals may deduct the value of the gift up to a certain percentage of their income and spread a sizable deduction over several years. Property owners may also receive a - 15 _ tax break on their estate and property taxes for donating property or easements. Such tax incentives may encourage property owners to donate part or all of their property. I L Disadvantages of these preservation programs include the relatively small amount of land acquired and the difficulties in creating lazge contiguous blocks of open space or natural habitat. i ~ A brief survey of different types of private/voluntary land protection programs follows: Conservation Easements -Conservation easements aze legally binding permanent deed restrictions that limit some types of development while often permitting limited construction, residential, farming or recreational use. The easement "runs with the land"; it does not change with the sale of the property and is recorded with the deed. It is a less-than-fee interest in real property, an encumbrance on the title limiting future use of the property. Conservation easements allow a landowner to retain ownership of private property yet donate specifically identified rights to an organization (usually anon-profit land trust). The parties agree to protect specified natwal resources and cultural values by limiting the property's use and development. Each easement is different, reflecting the conservation values of the l property and the goals of the landowner. In return for their donation, landowners aze granted tax deductions for the reduction in the mazket value of the land or structwe. i i Disadvantages specific to easements include the need for monitoring and enforcement of the conditions of the deed, a task that many localities cannot afford to perform. In addition, while the favorable tax treatment an easement receives helps the landowner, it may represent a revenue loss for local government. Conservation easements aze an increasingly populaz tool for the permanent conservation of private lands. They are also complex and controversial. Eazlier this year, the U.S. Senate - Finance Committee held widely publicized hearings on reported abuses of conservation easements by certain private land trusts and conservation organizations. Pursuant to the Senate Finance Committee investigation, the Internal Revenue Service outlined the guidelines hearings [Notice 2004-41; 2004-28 lItB 1; June 30, 2004] to be used ' for gifts of conservation easements. The notice was the result of three specific abuses, some - of which were described in a series of Washington Post articles in December 2003. ~ The first abuse involved claiming a conservation easement in a subdivision for the land - separating homes. The second abuse concerned the highly inflated appraisal of donated land. The third abuse involved a golf course that claimed a conservation easement deduction for preserving open space. J The notice restated the basic rules for conservation easements. The gift must be "exclusively" for a qualified conservation purpose. The deduction is denied if there is not . I significant public benefit. Substantiation for gifts over $250 must be obtained. For an easement valued at over $5,000, an independent appraisal for the "willing buyer and willing seller" test must be made. Finally, there can be no fmancial benefit derived from the gift J greater than the value given, or the deduction will be denied. J J 16 i _ A particular abuse noted in the ruling was the purchase of a property by a conservation charity, accompanied by a "gift" from the donor. The charity then sold the property for an ~ amount equal to the purchase price less the gift. In this circumstance, the IRS stated that the L deduction would be denied. In announcing the tougher rules on land donations, IRS Commissioner Mark Everson said, "We've uncovered numerous instances where the tax benefits of preserving open spaces and historic buildings have been twisted for inappropriate financial benefit." Everson added, L "Taxpayers who want to game the system and the charities that assist them will be called to account " L Rand Wentworth, President of the Land Trust Alliance (LTA), in his June 22, 2004 testimony to the Senate Finance Committee, discussed current revisions to LTA's "Land Trust Standards and Practices Cruidebook," a 533-page detailed operating manual for land trusts. L He stated: "The land trust community created Land Trust Standards and Practices to show a cleaz and well-marked path toward operating a land trust legally, ethically, efficiently, effectively and sustainably. All of ow sponsor members aze required to have their board L formally adopt a goal of coming into substantial conformance with the Land Trust Standards and Practices." He stated that LTA broadly agreed that Congress should: • Direct the IRS to adopt the Uniform Standazds of Professional Appraisal Practice, so that ' it is using the same measwes of good appraisal practice as virtually all other state and L federal agencies; Require that appraisers be state-licensed, as is required for federally-related mortgage L transactions; and, ¦ Increase penalties for substantial misstatements of the value of donations, and expand L those penalties to include disbarment of appraisers involved in substantial misstatements from having their work accepted by the IRS in the futwe. These objectives for integrity and asswance in the performance of conservation easement L appraisals aze also supported by the American Society of Appraisers and the American Society of Farm Managers and Rwal Appraisers. L Land Donations - In contrast to lands donated to public governmental agencies, land donated to land trusts and other private non-profit organizations may be managed as private open space. Private land trusts may assure that land remains in "open space", although L public use or recreational access of such lands may be denied altogether, or subject to limited, controlled public access to preserve sensitive, unique natwal or cultural features. Landowners donating land to either government or non-profit organizations are often eligible to claim a federal tax charitable deduction value of the land at the time of the gift. Land Trusts -These aze entities most often managed by private, non-profit, organizations _ which advise and assist landowners in negotiating land transactions and then purchase the 17 L land in question. They aze formed to help protect lands important to the quality of life and environmental health of the regions they aze operating in. L Land Trusts represent the fastest growing sector of land conservation in the United States with over 1300 land trusts in 50 states, according to the Land Trust Alliance. They may protect land through donation and purchase, by working with landowners that wish to donate or sell conservation easements, or by acquiring land outright to maintain as open space. Land trusts have been extraordinarily successful, having protected more than 6.2 million acres of L open space, according to the National Land Trust Census. Some of the larger national land trusts, most prominently The Nature Conservancy, operate L on the market principle: if you want to have control over something, own it. They identify land that they believe is worthy of protection -land with scenic vistas, wetlands, habitat for raze species, and so on -and they buy it. However, the majority of land trusts primarily L pursue voluntary conservarion/historic preservation easements, donations of land, or PDR approaches. Few regional or local land trusts have the financial resources to purchase and retain ownership of land, although some may have revolving funds. L Factors that have contributed to the success of land trusts include public support, donations, and partnership approaches between landowners and management organizations. Land trusts L represent a very market-oriented approach for acquiring open space. In most cases, the transaction is between a willing buyer and willing seller, or between an organization and a willing donor. There is often little to no government involvement as long as the transaction L conforms to the local area government's comprehensive plan. Land Swaps -Land swaps involve the exchange of land between a governmental agency and a private landowner or organization. The intent of a land swap is to protect and preserve L unique or natural features of the land while offering an exchange of surplus land that is usually more suitable for development. Land swaps may also be negotiated by private organizations and may involve the exchange of easements or property. L Notification, Recognidon and Non-binding Agreement Programs - A basic technique to prevent harm to important resources is a notification program. Owners made aware of L important resources on their properties are usually more willing to protect them once they learn of their existence. A notification program may logically follow a comprehensive environmental and sensitive lands inventory. Notification generally consists of a brief letter L describing why the property is significant. Recognition programs have been used by federal, state and local governments as well as non- L profit organizations to offer public relations incentives to a property owner in return for protecting an important resource. L Non-binding agreements, many in association with recognition programs, also serve to protect natural resources. Property owners agree in writing to protect specified features of their properties and receive in return a plaque or certificate that aclmowledges the special L nature of the property and the owner's contribution to its protection. Such agreements can be terminated at any time. 18 I.r Remainder Interests & Reserved Life Estates -These aze essentially the same. A "remainder interest" in land allows the owner to reserve the right to live on and use the land during his/her lifetime and/or the lifetime of other family members be/she chooses. The value ~ of such a donation is different from an outright gift, but can still be considered a charitable contribution for federal income tax deduction purposes. Stewardship Agreement -This is a temporary or permanent donation of specifically identified property rights to an organization (usually non-profit). The agreement may provide significant property tax benefits to the landowner while permanently protecting natural and unique areas from development. It works in the same way that a conservation easement does but might be used for azeas that may not meet the requirements necessary to be protected through a conservation easement. Verbal Easement -This is an agreement in which a landowner retains ownership of his private property yet donates specifically identified rights (such as recreational access) to the ~ public or to another identified organization. The agreement is only contingent upon the landowner's voluntary consent to waive his rights and maybe terminated at any time. 3. Outright Purchase of Public Parke and Open Spaces Customarily, for outright purchase programs, the full title to land and all rights associated with it aze purchased at a price equivalent to its value at its "highest and best" use. The appraised fair mazket "r value of the property is the standazd for all sales and donations. Purchasing land at its fair mazket value has two principal advantages: the acquisition process is relatively simple, and the rights and ~ privileges of fee simple ownership are rarely challenged. Outright ownership makes it easier to manage open space. The following are examples of how land can be purchased for open space: r Fee Simple Acquisition -This involves the outright purchase of land. It fully compensates the landowner and is the most complete means of affecting control and preservation of land. Purchase and Lease-back - In this case, land is purchased outright (as described above) and then leased by the owner to another individual who will gain some economic return from the ~ land as agriculture, forest or open space. Usually, the lessee is a farmer who will keep the land in agricultwal use. Bazgain Sale - In this case, land is purchased for less than fair mazket value. This type of sale is often used by land trusts or a government to acquire open space lands. It makes the land J more affordable and provides the landowner with immediate cash and can provide a charitable income tax deduction for the difference in the price received for the property and its fair market value. It can also benefit the landowner by offsetting any capital gains tax. Land Banking -Under land banking, land is purchased and reserved for later use or development. Land could be leased for immediate use (i.e. agriculture or playing field). J Essentially, land banking is a land trust operated by the government and funded by real estate transfer taxes, either at the local or state level. J 19 J 1 Tn its brief consideration of Bill 270, the County Council did not inventory the status of land protection currently afforded by state, courrty and national parks coupled with conservation and 1 agricultural land classification on the Tsland of Hawaii. As a baseline, however, it should be noted that, as shown on the "land designation" map below prepared for the Hawaii Natural Heritage Program, the amount of state, federal and private partnership land protection in place on the island of Hawaii is already considerable. i.attd Designation Islartd of Hswai`i i tfro rr.to,.- rtorr 3 ~ ~ ~....o..~.,o~, r ~ 1~6nonr v.rLS ~ n~uw atidwre RaaRe I Sur caw R...ct I $lape Na6nw' Nea R~cev ve t6O1U Ptirele LYM1AS ~U.S rWery iancvs t riYear~rGu~ Pubxarlyr SunMy ~WaUie Dnenakd Vegrtaom Road ~ b+*.tw,w.aw....w... d , e ~o o ~o ~ w +o w ~wmeLes _ , ro a ro ~o w lua. ' - ~ I^sq.asG bf 4lb~lfWUa~bf~M r++sv, JSV .YG 'Ihe Hawaii State Iand Use Commission map below further illuminates the extent of agricultural and conservation designation among shale land use districts on the Lsland of Hawaii. For reference, a map indicating major landowners (albeit dated, circa 2000) is also shown below. 20 . _ a}". _ &a lOa~. ,~,.~.~n:P e.,,r-{ J r ~j"'ro'ya _ S~~ x ~ r.. ~ . ~~~r- • K ~ - b~ § 4 ! ~F s s s a:w _ - ~~Il~eyri~swrn ~Gaww: ;~+awya~~w+. 4Ka+rkn~ir~c Rwib '~a4'.rP ~~ilY'Y"'rgL~rs -.-~^'irprn . ~lYe~a'is ' ~pl7p~ h ~ ar ' .t; a ? "Yip Y' - - - i 1w r- z; T^ ° Additionally, map references shown below and compiled from the Hawaii County Data Book show the extent of comparable "overlay" land protection afforded by agricultural and conservation land use on the Big Island. MAP 1 AGIZICULTCTRAI. LAND USE 21 r r MAP 1 AGRICULTURAL LAND USE RNAt1VG C,00gC~C 3SEE: IMjpL I61At1L19 OL LYfB StBt! AGRICULTURAL LAND USE COUNTY OF HAWAII I AS OF NOVEMBER 2003 I(' (878,472 ACRES) LANAI ISLIINO Of MOLOKAI HAWAU aNOOLAVUe. KAUAI r OAHU I NIINAU MAU As of November 2003, agricultural land use on the Big Island was approximately 2,316 acres less than the combined acreage of Kahoolawe, Maui, and Oahu. 22 1 MAP 2 CONSERVATION LAND USE Reialive ceoyaepcuc size: Mejor IslarAS of the StAt! 1 CONSERVATION LAND USE COUNTY OF HAWAII AS OF NOVEMBER 2003 (891,441 ACRES) LANAI rsuao os MOLOKAI Hawau 1 AHOOLANIE KAUAI 1 OAIW NIIHAU ~I NN1U1 I ,1 SNADfm' AREA = 88b,788 ACRES , i is As of November 2003, conservation land use on the Big Island was more than the combined areas of Kahoolawe, Maui, and Oahu. 23 L MAP 3 COMBINED AGRICULTURAL & CONSERVATION LAND USE Re]ative Gmographic 3iae: Major xslauds o! the state L AGRICULTURAL a CONSERVATION LAND USE COUNTY OF HAWAII AS OF NOVEMBER 2003 (1,769,973 ACRES) L LANAI I ISLAND Of WOK HAWAII AHOOLAVY. Ej ILAUAI J OAHU V' AU i AilA1N ANOOLAVYE~ AHO YpE~ AHOOLAWE; 1 HOOLA ` ~ HOOLAWE r HOO H i J J As of November 2003, agricultural and conservation land use on the Big Island accounted for more J than the combined areas of all other major Hawaiian Islands plus eight Kahoolawes. J 24 r I A review of the dozens of public communications associated with Bill 270 and received by the County Council in May 2004 indicates that various members of the public wish for a wide vaziety of lands to be secwed or purchased by the County for a wide range of pwposes. A sampling from these communications is provided below to illustrate the far-ranging extent of public expectations regazding a County public lands tax: ¦ for the pwchase of land for protection of historic azeas, recreational use azeas for all ow citizens and tourists as well as preserving forever Hawaii's lands of natural beauty Comm. No. 620.2 • "We not only need this bill supported but also look into halting subdivisions and high impact real estate projects." Comm. No. 620.4 ¦ "Many azeas on Hawaii aze noteworthy and deserving of preservation and protection. Among these aze the coastlines of Kohala from Kawaihae to Pololu, 26 miles of unspoiled scenic, historical, cultural and recreational azeas; the 132 Hawaiian heisu identified and described by John Stokes in 1906 and Thomas Thrum in 1908; the last remaining nesting areas of the Hawaiian crow, Alala, the untouched Koa forestlands; the sacred sites on Mauna Kea, the significant historical and recreational coastal and mauka-makai trail systems, the entire valley system from Waipio to Pololu, and many more that may be lost forever if they aze not protected and preserved." Unnwnbered communication from F. Cachola • "Watersheds and coastal areas are a great concern in Kona and this is a great tool to combine resowces to protect both." Comm. No. 620.14 • "It is most important that we preserve Keakealaniwahine Complex also Pakini Nui ahupua`a in Kahuku Ka`u, Waio`ahukini in Pakini Nui which is a site of rich historical importance and one of the most revered areas in Ka`u." Comm. No. 620.17 • "This bill would protect watersheds and keep more development from happening in flood azeas." Comm. No. 620.32 ¦ "We would like to asswe protection of properties such as "Keakealaniwahine, Makalawena and others that local residents feel tied to and also contribute to ow tourist economy in West Hawaii." - Comm. No. 620.33 ¦ "The relatively new Kona Land Trust can receive and forever hold easements this approach may serve as a very effective leverage of the County funds Comm. No. 620.37 • to help purchase and protect critical watershed lands, coastal and beach areas, hunting, _ gathering and recreational lands, and important Native Hawaiian cultural sites." Comm. No. 620.38 25 1 I_ Testimony submitted by the Trust for Public Lands (Comm. No. 620.43) stated that their poll showed that the "top-ranking projects [for a County Open Space Fund] according to voters" were (1) Watershed Areas; (2) Beaches and Coastal Areas; (3) Prevention of Erosion, Flooding, landslides; (4) L Native Forest Areas; and (5) Native Hawaiian Historical and Cultural Areas." The public comments shown above, while cleazly heartland and well-intended, point to issues of i_ scope and delineation in a county public lands program, and beg a number of questions. ¦ Precisely what lands are appropriate for county acquisition? ¦ Should the County assume or replicate a traditional state responsibility - i.e., stewazdship of forests and watershed lands? L • What additional County Parks & Recreation Department staff will be needed for newly acquired lands? L • Will the County add new job descriptions - i.e., forestry experts, park rangers, conservation or marine biologists, to its payroll? L • How will newly acquired open space lands be balanced with traditional public parks and playgrounds in the County's budget? L What additional A.D.A. compliance requirements will stem from new County lands? How will A.D.A. compliance be funded? L ¦ Is a protocol needed for the analysis of options to accomplish certain conservation objectives - i.e., examining private conservation easements, transfer of development rights, opportunities for federal funding, etc.? ¦ What appraisal process will be conducted to detemune the fair market value of lands sought for public acquisition? L ¦ What protection against liability claims can the County secure from the Legislature for such lands? I IX. KA`U SHORELINE: A CASE STUDY L Shoreline protection in the Ka`u District is an emerging public cause. It also presents an opportunity for examining various conservation strategies on the Big Island. I In a February 2004 article in the Hawaii Island Journal, Jack Kelly describes community efforts to preserve treasured coastal areas at Punalu`u, Honu`apo and Kawa in Ka`u and forestall development and speculation stemming from mounting property listings of former sugaz lands in the district. Kelly describes the Ka'u coast as a "wide-open expanse of virgin territory, dotted by a multitude of ponds fed by bubbling springs and mixed with the tidal waters frequented by the _ endangered Hawksbill and Green Sea turtles" and, "unfil recently, relatively free of development " 26 r "This is the last unspoiled coastline in all of Hawai'i," says John Replogle, along-time resident who has taken a proactive stance towazds land-use issues in Ka`u over the last few years. "Everything is up for sale here," he says. "We want to develop the Land Trust model so the community can work with landowners to purchase conservation easements to maintain the coastline in its undeveloped state," Replogle told the Journal. J According to Replogle, "The county and the state are not helping us out so we have to take the initiative. We are in the process of developing our organization now and it takes a lot of time and work. Help from the Kona Land Trust is forthcoming, as well as from the Trust for Public Lands." Ka`u's councilman, Bob Jacobson, told the Journal that he intended to introduce three sepazate ~ bond issues for purchase of critical areas in Ka`u. ..i "One is for Punalu`u, one for Kawa and one for Honu`apo," Councilman Jacobson told the ! Journal. "These azeas all feature unique and endangered coastal habitats and are the areas most J under pressure for development as well. Some of these azeas shouldn't have to be bought. That is where shoreline certification comes in. [State] shoreline certifications at Punalu'u, Kawa, and Honu'apo would clear the air over who owns what," he said. On July 15, 2004, Councilman Jacobson requested the Legislative Auditor's Office to explore options "not limited to bond float to purchase land in fee simple, or obtain conservation easements, or any other appropriate measures." He suggested that that "nonprofit conservation J or community groups such as the Ka`u Agroforestry Association could serve as managers." The four Honu`apo parcels identified by Councilman Jacobson aze TMK(s): 3-9-5-14-7, 6, 29 and 38. The pazcel at Kawa Bay is TMK: 3-9-5-17-7. At Punaluu, the pazcel is 3-9-5-19-11. ~ On October 20, 2004 Julia Neal, publisher of the Ka`u Calendaz and writer/producer of a short film titled "Saving Kau's Coast" transmitted the film on DVD copies to members of the Hawaii County Council. The powerfully emotive film describes the Kau community's "ongoing efforts to preserve more of this special coast that is now surrounded by Volcanoes National Park." J The kaucoast.org website for the film states that Councilman Jacobson is working on county legislation to buy 200 acres to include Honu`apo fishponds and a mile of shoreline. "This J recreational and wildlife resource has to be preserved forever -federal, state or county," he says. Jacobson said the new County Council taking offrce in December 2004 has expressed support for Hon'uapo remaining open for Ka'u residents. Whether the best preservation strategy involves county fee simple purchase of Ka`u shoreline, an effort to seek federal funding through the National Oceanic & Atmospheric Administration marine J estuary protection program, a nonprofit community land trust, negotiation of conservation easements with existing landowners, federal acquisition in conjunction with the expansion of Volcanoes National Pazk - or some other strategy or combination thereof -remains to be fully explored and determined. 27 I L X. GUIDELINES FOR A COUNTY PARKS & OPEN SPACE PROGRAM This working paper proposes that a voluntary approach to funding a special county fund for pazks and conservation lands is worthy of consideration for the following reasons: • Voluntary giving builds community and civic spirit. Public support for public pazks and land conservation is strong and historic. 1 The aloha of Hawaii's people for the `sins is the heartbeat of our culture and its legacy. The generosity ofworking-class citizens to charitable causes cannot be underestimated. ~ As "new wealth" takes up residence, opportunities for lazge donations and bequests multiply. • Ongoing marketing and solicitation of donations may serve to keep a public lands ~ program vital in the public's imagination and accountable for its results. ¦ People tend to take pride and ownership in those endeavors for which they make a personal contribution. 6. ¦ The opportunity to fashion winning, participatory donor campaigns supported by all citizens, including schoolchildren, as well as visitors fond of our island. "r In coming years, of necessity, county taxes will need to address a huge backlog of ¦ infrastructure concerns; a voluntary public lands fund will not compromise the county's fiscal resources or delivery of essential services. ¦ County bond counsel provides assurance that such a special county fund would not I ~ increase the county's overall liability. This working paper does not propose specific legislation for a county pazks and conservation lands ~ special fund. The definition and scope of such a program doubtlessly will require much Council deliberation and public comment. 'J But if there is merit in exploring a private charitable approach to an ongoing county fund, what first must be assessed is the island's donor base and charitable giving performance. If, upon methodological examination, it appeazs sufficient to raise an annual sum that meets the goals and objectives of swell-defined county public lands program, then the Council and the county administration might proceed with some confidence to encourage acounty/nonprofit partnership i donor program for public lands. If not, the options of tax-based appropriations and/or bonds J remain. Two premises are central to this recommendation: (1) in growing public acquisition and stewazdship of public lands in Hawaii County, there should be ~ limits on the growth of government itself, as well as demands on taxpayer revenues; and J 28 J I (2) apublic-private partnership approach allows for coordination of park development and open space preservation efforts among government, foundations, private organizations and individuals, ~ and may appeal to the widest possible range of funding sources. iJ One working model for govemment/nonprofit partnership in land acquisition is found in the implementation "guidance" published by the U.S. Fish and Wildlife Service (FWS) in June, 2001 concerning the relationship of FWS to nonprofit organizations in the conduct of its land acquisition program. It is attached to the appendices of this report. ~I XI. STEP # 1: A PHILANTHROPIC MARKET ASSESSMENT Given this already considerable inventory of government-protected lands, what standards and criteria should guide county initiatives to designate and/or acquire new lands for public parks or protected ~ open space reserves? This question begs much thought. The county, historically, has not played the role of land manager, as demonstrated most recently by the short-lived tenure of the county's Hamakua lands acquired ` pursuant to the collapse of the Hamakua Sugaz Company. Nor does the county have the sort of conservation biology job classifications and expertise found in the state Department of Land & Natural Resources or The Nature Conservancy. i~ rr Is the county's priority for new land acquisition to be open space natural area reserves, access routes to beaches or mauka trails, or traditional public parks and playgrounds? Or a mix of all three? What is the county's long-range strategy for acquiring land and building recreational parks, gymnasiums and playgrounds in under-served subdivisions and neighborhoods? ~ ' What new personnel and operating budget resources will accompany the acquisition of new county y lands? What guidance for asserting administrative land use controls -zoning, transfer of development rights, conservation easements, etc. -will be applied prior to or in lieu of outright acquisition of lands? 'I ~ What collaborative strategy will the county pursue with state and federal agencies and private conservation organizations to foster land protection and new public parks? J The answers to these and many other questions remain pending. They warrant careful consideration before the county commits property taxes or other revenues to a public lands acquisition program. Nonetheless, public enthusiasm for local government initiatives to preserve open space, natural areas, and enhance parklands for public enjoyment and recreation is high. To better assess that enthusiasm and its role in assisting acounty-led land acquisition drive, this paper concludes that if there is merit to a private charitable approach to an ongoing island preservation fund, what first must be assessed is the island's donor base and charitable giving performance. J V ¦ ~ 29 ~ I That effort will require a professional assessment, for which the consultation of S. Sanae Tokumura was sought. Ms. Tokumura is awell-respected, advanced certified fundraising professional. Last ~ year, under the aegis of the Council's Human Services and Economic Development Committee, she ~ conducted two all-day workshops for nonprofit board members and staff on the Big Island. Her accomplishments include leading major capital fund drives for the Hospice of Hilo, Sangha Hall, and ~ the new Hilo Hospital emergency room. i Her advisory memo regarding a philanthropic market assessment follows, along with a resume/bio. XII. ADVISORY MEMORANDUM & WORK PLAN MEMORANDUM Date: October 7, 2004 To: Mr. Rory Flynn From: S. Sanae Tokumura, ACFRE, APR Re: PHILANTHROPIC MARKET ASSESSMENT When anon-profit organization wants to do a fundraising campaign whether for once-in-a-while ~ major capital (for fixed asset such as property, facility, renovation, equipment) or for annual (for operating funds such as salaries, rent, utilities, insurance, etc.) purposes, it sets its goal based on J facts, not desire or even need. Leaders will find out first whether its hoped-for goal is realistic or not prior to asking for the first penny. Why do this? So that the organization doesn't waste valuable time/assets in doing something that may not have the power of community support behind it in the first place. This prudent fast step is commonly called a feasibility study. A feasibility study is divided into two parts: intemal and external. The internal part measures infrastructure capacity, to make sure that the organization can handle the information and flow of office work that will occur, as well as maintain and uphold the standards that aze commonly held by non profits regazding the stewardship of community assets. This would include recognition of donors, reporting to the public how monies have been invested/used, security of the monies, agreements between donor and organization, etc. Hawaii county will need to be able to do all of this work should it adopt a program such as we have been discussing, and eventually devote at least one full time employee to this purpose, and expand as J necessary. J We have been talking mainly about the external philanthropic market assessment which is the second part of a feasibility study. Sometimes I just do the first half, sometimes just the second, depending on the need and circumstance of the client. Most times, I do both, since leaders need to be aware that their entire mechanism is sound prior to investing in the campaign. Many times, crucial elements of infrastructure are found missing that may derail the drive in the middle of community awazeness--a disaster that many organizations could not withstand. J Regarding the external philanthropic assessment, for which I act as an objective third party interviewer similaz to a reporter, I will face prospective contributors, opinion leaders and leaders J in government, civic and other constituencies and present a draft case for support, and record J 30 r ( their opinions. At the end of this interview process, I will input all data, evaluate and provide the following information to organizational leaders in report form so that they can formulate a course of action based on facts and not what they imagine to be the situation regarding availability of funding, voluntarism, etc. (Although all comments will be presented, they shall be presented in aggregate so that respondents' identities may be protected.) PROPOSED WORK PRODUCT (DRAFT) 1. DATA A. Public Awareness (How familiar were they with the system and the issue?) 1. Hawali County Government System-what it does, how it works 2. Funding Structure (How taxes are spent) 3. The Issue [ B. Overall Opinions about Hawali County Government System (you can add whatever questions you prefer, keeping in mind our interview time is 45 minutes) 1. Existing Programs 2. Program Suggestions ~ 3. Should the System (County) Handle this Program? ~ 4. Public Image C. Economic Conditions ~ D. Lead Prospects for Your Program E. What Would They Give? F. With Regard to the Leadership (council members, mayor) How Do They Really Feel About the Program? G. Other Comments II. RECOMMENDATIONS A. Campaign or Communication Strategy III. CAMPAIGN or MARKETING PLAN (whichever may be indicated) IV. TIMELINE V. CAMPAIGN or MARKETING PLAN EXPENSE BUDGET VI. STANDARDS OF PHILANTHROPIC INVESTMENTS (if Indicated) VII. CAMPAIGN ORGANIZATION CHART (if indicated) ~ VIII. APPENDICES J A. Conversation Guide B. List of Interviewees 31 J L PROSPECTIVE INTERVIEWEES The following preliminary list - by no means final or conclusive -was assembled to indicate the type and scope of prospective people to be interviewed for the philanthropic mazket assessment. Additional names and referrals aze welcome. I L County Administration Harry Kim, Mayor L Andy Levin, Special Assistant to the Mayor Pat Engelhard, Director, Parks & Recreation Department James Komata, County Parks Planner Bill Takaba, Finance Director Chris Yuen, Planning Director ~ Lincoln Ashida, Corporation Counsel Brian Hirai, Bond Counsel I ~ County Council Council Chair Gary Safarik Counsel Member Stacy Higa, Chair, Parks & Recreation Committee ,r Council Member Fred C. Holschuh, M.D. Council Member Bob Jacobson, Council Vice Chair Council Member Angel Pilago, Co-Chair, Planning Committee Council Member Virginia Isbell, Chair, Finance Committee Council Member Pete Hoffman, Co-Chair, Planning Committee Council Member James Arakaki J Council Member Donald Ikeda, Chair, Public Works & Intergovernmental Relations State/Federal Senator Daniel K. Inouye 'r Congressman Ed Case Jeff Kuwabara, NOAA Northwestern Hawaiian Islands Mokupapapa Discovery Center J Larry Katahira, Volcanoes National Park resource manager Lorraine Shin, USDA Rural Development Office Chris Chung, Program Manager, Hawaii Coastal Zone Management Program, DEED&T ar Media Rick Asbach, Publisher, West Hawaii Today J Reed Flickinger, Editor, West Hawaii Today David Bock, Editor, Hawaii Tribune-Herald Ted Dixon, Publisher, Hawaii Tribune-Herald Lane Wick, Editor/Publisher, Hawaii Island Journal David Becker, Editor/Publicher, Hamakua Times Julia Neal, Editor, Ka'u Calendar J Community/Environmental Josh Stanbro, Trust for Public Lands Alan McNarie, columnist, Hawaii Island Journal & Hawaii Tribune-Herald J Nelson Ho, Sierra Club Rob Shallenberger, Island Program Director, The Nature Conservancy Rob Pacheco, Hawaii Forest & Trails J 32 Billy Bergin, veterinarian Dave Raney, National Marine Wildlife and Habitat Committee Sierra Club, Hawai i J Chapter Tonnie Casey, wildlife biologist, Kamehameha Schools Hannah Springer, Office of Hawaiian Affairs J Philsnthropy/Business Dr. Earl Bakken, Five Mountain Medical Community Barry Taniguchi, President, KTA Superstores J Leonard Tanaka, T & T Electric Ken Melrose, Executive Vice President, Maryl Group, Inc. Tom Whittemore, Parker Ranch, Inc. Peter Simmons and Jeff Melrose, Kamehameha Schools/Bishop Estate John Ray, President, Hawaii Leeward Planning Conference Rick West, Hawaii Island Economic Development Board J Stanford Carr, Stanford Carr Development Monty Richards, Kahua Ranch Jimmy Greenwell, President, Palani Ranch Carl Simons, West Hawaii Concrete J John Cross, Mauna Kea Agribusiness J J J J 1 J J J J I y 33 J L S. Sanae Tokumura, ACFRE, APR 1279 Honokahua Street L Honolulu, Hawaii 96825 Telephone: 808-396-6070 L Education: University of Hawaii at Manoa BADegrees-Journalism, Communication Graduation date-December, 1979 Kauai Community College Early admission--completed Freshman year in summer, 1976 Kauai High School Graduation date-June, 1976 L Work Erperience: OWNER Solid Concepts, Inc. L April 1.983-present VICE PRESIDENT L Development & Community Relations Child & Family Service May 1992-May 1993 { DIRECTOR OF DEVELOPMENT AND PUBLIC RELATIONS L Japanese Cultural Center of Hawaii Mazch 1989-April 1992 L SENIOR DEVELOPMENT OFFICER Kuakini Health System L October 1981-February 1989 Professional Credentials: Advanced Certified Fund Raising Executive (ACFRE) Accredited-Public Relations Society of America (APR) Professional Associations: Association of Fundraising Professionals Aloha Chapter Board Member, 1991-1996, 1998 to present Aloha Chapter Secretary, 1992-1994 ~ Aloha Chapter Vice President, 1998, 1999 i Association of Fundraising Professionals Foundation for Philanthropy (National) ~ Board Member, 2001-2003 Public Relations Society of America Hawaii Chapter Boaz~d Member, 1994-1998 Honors, Societies & Awards: Family Service Association ] 993 National Biennial Cornmunications'Award ~ for 1993 Annual Report and Quarterly Newsletter, Child & Family Service Mazshall of Arts & Sciences College, graduating class of December, 1979, University of Hawaii at Manoa (UHM) ~ Phi Kappa Phi (National Honor Society), UHM Kappa Tau Alpha (Journalism National Honor Society), UHM Society of Professional Journalists, Sigma Delta Chi ~ (secretary during 1978-1979), UHM Honors Program (Upperclassman Honots Program), UHM Selected Studies Program (Underclassman Honors Program), UHM Phi Eta Sigma (National Freshman Honor Society), UHM Work experience duties and references: See Attachment DUTIES OWNER, SOLID CONCEPTS, INC., formerly WORD ARRANGEMENTS OF HAWAII Provide hands-on, full scope consultation including major gift solicitation assistance and [raining, development infrastructure assessments, recommendations, implementation, and complete campaign feasibility studies for non-profit organizations. Write, edit, design and produce all collateral necessary to support annual, capital and special campaigns. Also provide full-scope public relations consultation and hands-on assistance for non-profits and for-profit corporations. VICE PRESIDENT FOR DEVELOPMENT AND COMMUNITY RELATIONS, CHILD & FAMILY SERVICE L Conceptualized, designed, staffed and supervised tri-purpose new division for this nearly 100-year- old private non-profit. Division eventually employed seven professionals and was responsible for all public relations, annual and capital fund raising, and volunteer recruitment and special events for L 29 sepazate statewide programs including several subsidiaries. Was responsible For supplementing $15 million annual budget with private annual funding and creating favorable community opinion toward that goal by educating various constituencies of programs' benefits. Measured internal and external publics' opinions, advised president/board to re-direct agency's methods/mission to accommodate perceived needs. Conceptualized, planned and implemented special events to L achieve fund raising and public awareness goals. Provided consultation for $9 million capital campaign. Designed and edited all newsletters, annual reports, brochures, news releases and al] other vehicles L of information for public consumption. Conceptualized, planned and implemented major statewide volunteer recruitment/utilization program. L DIRECTOR OF DEVELOPMENT AND PUBLIC RELATIONS, JAPANESE CULTURAL CENTER OF HAWAII Responsible for conceptualization, design, implementation and supervision of statewide capital campaign to raise major portion of capital [o construct multi-million dollar cultural preservation facility in Honolulu. Revived initial $5 million campaign which had been stalled at $3.5 million. Balance raised in four L months with no dedicated staff. Began and completed $5 million additional campaign immediately after completion of rejuvenated campaign. Began and completed additional $5 million immediately after completion of $10 million total goal. Eventually raised $16.5 million within three years. I_ Created and implemented public relations strategy to support campaign. Designed permanent donor recognition program. Designed, wrote and produced all campaign materials including a 20-page 2-color semi-annual magazine-format newsletter, all brochures, letterhead, business cards, multi- media annual report and all necessary advertising and special projects. Conceptualized logo. Wrote all speeches for organization's representatives. Coordinated and presented local and neighbor island presentations [o enlist statewide cooperation. Designed and coordinated all special events such as facility groundbreaking, annual membership banquets and statewide children's art competitions. SENIOR DEVELOPMENT OFFICER, KUAKINI HEALTH SYSTEM Was responsible for all personal solicitation of major special gifts, including deferred gifts. Assisted in management of transition to foundation status (KF). Coordinated KF major donor recognition program, including planning and implementing special events and projects designed to encourage further community support. Responsible for increasing donor base, which by December, 1988, resulted in an average increase of monthly contributions by 400 percent. A LIST OF REFERENCES WILL BE PROVIDED UPON REQUEST. L L 1T9 HONOI:4HUA STREET • kiONOLULU ki10.!4k19ti83i • TELEPHONE/FAX: 16UF1 i`$i-<i0'U ~ r /4yu . W~~.,v'~wY I NC. L L Tokumura Bio L S. Sanae Tokumura, ACFRE, APR, is fund raising and public relations consultant, founder and president of the firm Solid Concepts, Inc. Sanae is a strong advocate L for responsible fund raising and public relations practice in America. With 20 years experience in both fund raising and public relations, Tokumura is nationally advance-certified (ACFRE) in fund raising through the Association of Fundraising L Professionals (AFP), formerly National Society of Fund Raising Executives. She is the 41st ACFRE in the United States and the only ACFRE in Hawaii. She is also nationally accredited (APR) in the practice of public relations through the Public L Relations Society of America (PRSA). She has been an active board member of the AFP Aloha Chapter for over 10 years. L An early interest in humanitarian concerns led Tokumura from a news reporting career to the non-profit fund raising field, in which she utilizes research, objective- setting and evaluative procedures to plan and execute annual and capital campaigns L supported by full-scope public relations programs. Her unique approach to non- profit fund raising involves a holistic "diagnosis" of the organization's systems and dynamics and amulti-level "treatment ot'symptoms" while obtaining the non- L profit's fund raising goals. L Sanae has served as instructor for AFP's First and Survey Courses, speaks at local and international conferences on fundraising and authored the MajorGiving chapter of the curriculum for small non-profits for The Fund Raising School at The L Center on Philanthropy at Indiana University. She serves on the local AFP board and the national AFP Foundation for Philanthropy board. She is originally from Kauai. r L L "'4" ` = L°9 HONOI:.SHUA STRFEf • HONOI ULU HAWAII 968?5 • TFiEPHONE/FAX: (SOSj i96-ti0?0 +r! ~iY I NC. L L L PRIMARY SERVICES Development Audits Case Development L Comprehensive Long Range Development Plans (Including Direct Mail, Special Events, Major and Special Gifts, Grantsmanship, Capital Campaigns and Planned Giving) L Capital and Annual Campaign Feasibility Studies L Campaign Planning, Management, Post-Campaign Development Grantwriting L Executive Rea~uitment and Training Volunteer and Staff Training I Public Relations Counsel, Planning and Implementation Press Releases, Media Relations Collateral Development (Including Annual Reports, Brochures, Newsletters) ti r J I - lI ) HONOK4HVd STREET' HONOLULU. H.4~X'.411 9GS~> TELEPHONE/FAY: iSUSi ;90-(,0"'0 t - THE SOLID CONCEPTS, INC. MISSION Solid Concepts, Inc. declares the possibility that all well-run, well-represented non-profits who sincerely seek community betterment and who provide what the community truly needs will meet with continued resources provided by that community. L PRINCIPLES L Underlying every segment of work, whether capital or annual campaign, training session, special event or executive recruitment, Solid Concepts, Inc. operates on some basic principles: L 1. Anon-profit organization with excellent programs which benefit the community is like an individual with friendship and gifts to offer. In order to continue offering these gifts, an organization must be sustained by the community's friendship and gifts. L 2. People give gifts to people, therefore, anon-profit organization must have aface, apersonality- must be a presence in order for the community to relate and give to it like a friend. (Identity, L Mission) 3. In order to maintain that reciprocal friendship, tike all other friendships, there must be constant L communication-a give and take of information, ideas, opinions-and time spent together. Resources must be allocated so that staff and budget are not overstretched. The organization and its leaders must be long distance runners, not sprinters. (Planning) 4. An organization's employees and volunteers are all parts of this face and personality. All t employees, not only development staff, must be aware of the above principles, and must know their organization inside out, or at least know who to refer questions to. They should be proud of their organization because they know how much it does and how well it does it, and it should show. In effect, all employees and volunteers are involved with fund raising and be coordinated toward that end. (Case) 5. All events, newsletters, annual reports and celebrations provide dialogue from the organization to the public. There must also be a way that the public can initiate dialogue with the organization. When you want good friendships, you don't only talk and talk and talk. You must also listen. To have a good fund raising environment, you need to first listen, listen and listen to what your friend is saying. (Public Relations, Research) 6. Solid Concepts, Inc, principal S. Sanae Tokumura, ACFRE, APR, is a "Kauai girl" and proud of it. She believes that there is a special "local" language and culture on each of our islands which requires attention and respect in all areas of fund development. 7. Effective fund raising is the result of honest evaluation of the organization's fund raising infrastructure, the creation of adequate infrastructure, evaluation of the available resources in the community, continued communication for education of those resources and the methodical solicitation of those available resources in a steadily rising cycle. (Communication, Solicitation) r 8. All activities regarding solicitation of support for the organization must be conducted with volunteers and staff who are educated of the mission of the organization and inspired because of that mission. All materials used for education must inspire a positive image for the organization and make a positive and powerful impact on its intended audience. L FISH AND WILDLIFE SERVICE REAL PROPERTY L Real Property Part 341 Land Acquisition ' Chapter 5 Nonprofit Organization Acquisition 341 FW 5 5.1 What Is the purpose of this chapter? This chapter relationship in writing by mutual consent of the parties. L provides information and guidance concerning the Nonprofit organizations are typically private, independent relationship of the Fish and Wildlife Service to nonprofit groups that iresly negotiate real estate actions anywhere and organizations in the conduct of our land acquisition program. anytime they desire and at their own risk. We encourage the continuation of productive relationships L with nonprofit organizations and will ensure that: 5.6 How does the Service determine what land to acquire? Our objectives must supersede those of the A. Cooperation is consistent across the Service. nonprofit organization because of statutory, budgetary, and policy considerations associated with any land acquisition. L B. W e conduct Vansactions in a fiscally responsible manner. Lands or interests in land acquired from a nonprofit organization will be: C. We acquire lands based on Service priorities. A. In accordance with our land acquisition policies. L 5.2 What is the background for Issuing this chapter? This chapter implements the Department of the Interior, B. Consistent with our acquisition authorities. Office of the Inspector General Audit Report "Department of thelnteriorLandAcquisitionsConductedwiththeAssistance C. Limited to tracts that we have determined need ~ of Nonprofit Organizations (Report No. 92-I-833, May 1992). acquisition. ` On August 28, 1995, the Assistant Secretary for Policy, Management and Budget issued Clarificaflons to Guidelines D. Within approved boundaries or otherwise authorized by for Transactions between Nonprofit Organizations and law. Agencies of the Department of the Interior allowing the L payment of related and associated expenses from an 5.7 When is the acquisition considered aService- approved list. On July 18, 1996, the Assistant Secretary for sponsored effort? To be considered aService-sponsored Policy, Management and Budget approved a listaf expenses effort, the nonprofit organization must satisfy the following that can be paid to nonprofit organizations under a Letter of requirements: y Intent. In the absence of a Letter of Intent, nonprofit organizations may be treated as a normal landowner under A. Lands considered for acquisition must be within an the requirements of Pub. L. 91-646. approved boundary or within the boundary of an existing national wildlife refuge in the State of Alaska. 5.3 What lsanonprofitorganization? W(thinthischapter, the term includes nonprofit organizations or similar legal g, A Letter of Intent is required when the nonprofit requests entities that acquire lands and interests in land for possible payment of related and associated expenses (see paragraph i transfer to us by gift, purchase, exchange, or some other 5.16). r means. Nonprofit organizations serve a useful role in acquiring lands and interests in land that have significant C. When a Letter of Intent is used, the nonprofit must fully public values. We encourage work with such organizatiens disdose specifics of the purchase before we can accept the consistent with the guidelines in this chapter. transfer of real property and reimburse the nonprofit. r 5.4 How do cooperative relationships with nonprofit D. Under a Letterof Intent, a nonprofit must use Department organizations support the land acquisition program? of Justice Standards far LandAcquisiflonforanypurohaseof Because of the lengthy time requirements in the budget and lands that it intends to resell to the United States. This appropriation process, there are occasions when we are includes acquisition by Warranty Deed. unable to acquire land in response to Imminent threats to criticalresourcesortobuyneededresouroesunderfavorable 5.8 What is a Letter of Intent? A signed Letter of Intent terms. Working in the private real estate market, nonprofit (Exhibit 1) establishes the cooperative relationship between J organizations have the ability toreactquicklytothesethreats us and any nonprofit organization. Either we or the nonprofit and to protect important resources. However, each can request a Letter of Intent. When a nonprofitorganization transaction must clearly define the role of nonprofit intends to acquire land for transfer to us, it may request a organizationsinacquiringlandorinterestsinlandforultimate Letter oflnten[. Thisletterassuresthenonprofltthatwehave ~ Federal acquisition according to the requirements of Pub. L. an interest and intend to accept the transfer of land. 91-646. J 5.9 Who can sign Letters of Intent? 5.5 Are nonprofit organizations agents of the U.S. Govemment? Nonprofit organizations are not agents of the A, Only the Director has authority to sign Letters of Infant on Federal Govemment unless we designate an agency projects for which funding has not been secured or for which I ~ 06/17/01 FWM 369 REAL PROPERTY New II ¦ J FISH AND WILDLIFE SERVICE REAL PROPERTY J Real Prooertv Part 341 Land Acquisition Chapter 5 Nonprofit Organization Acquisition 341 FW 5 the nonprofit is to receive payment of related and associated we can make reimbursement and transfer. The disclosure expenses, as defined in paragraph 5.168. statement must Include the actual purchase and/or option J price and an itemized list of associated expenses with the B. Only the Assistant Secretary for Policy, Management and tract to be acquired. Budget is authorized to approve a Letter of Intent seeking repayment of associated expenses as defined in paragraph I. If the nonprofit has an appraisal to support the value, it J 5.16C. must provide the appraisal in enough time to ensure adequate technical review before we can purchase the C. Occasionally a Regional Director may wish to sign a property. Letter of Interest for projects where Congress has J appropriated funds and we have apportioned the funds, or, in J. Ajustification statement on why we should pay associated the case of the Migratory Bird Conservation Fund, where the expenses in addition to reimbursable expenses to the projects and amounts are Included in the Migratory Bird Plan nonprofit. for the current year. Reimbursements under paragraph J 5.166 cannot exceed the funds available in the current year. FC A statement of need forgo acceptable contaminant report The use of a Letter or Interest by the Regional Director is by us (or by the nonprofit, but approved by us) and clean up, optional, not mandatory. These letters do not have the 'rf applicable, before transferring the property to us. standing of Letters of Intent and they do not in any way J obligate the Service to future acquisition. 5.11 Are Letters of Intent applicable to all situations9 No. The guidelines for Letters of Intent do not apply to situafions 5.10 What does a Latter of Intent Include? If given by us, where the historyof the transaction clearly demonstrates that the Letter of Intent to the nonprofR organization must address the nonprofit orgenization did not make the initial purchase j and Include the following basic elements: with the intent to sell to us. Factors considered are: (1) the u~11 length of time between first acquisition and proposed resale A. We will encourage the nonprofit to donate the property to to us; (2) the terms of the initial transaction; and (3) the use us. of the property during the interim. We determine each case J on its own merits. B. We will reimburse the nonprofit's purchase price for land up to the approved market value. 5.12 What is the administrative reduction for lifo use? We may buy property from a nonprofit organization subject C. Reimbursement will depend upon congressional to a Irfe use reservation. We will use the "Remaining Life appropriationsorapprovalbytheMigratoryBirdConservation Tables," Exhibit 15, Apprisal Handbook (342 FW 1), to Commission. If reimbursement is dependent on future determine the remain(ng life use of the tenant and to appropriations, only the Director can make this commitment. calculate the reducfion In value associated with the reserved J Regional Directors may onty sign Letters of Interest for interest. We will subtract that amount from the market value projects in accordance with 5.9C above. of the property, If a nonprofit organization negotiates a life use reservation with a property owner for an approved D. Acreage and description of the lands to be acquired, the amount different from what we would pay, we will only Interest to be acquired, and any anticipated reservations. reimburse the nonprofit based on the appraised value encumbered by the life use estate or the nonprofit's purchase E. The estimated fiscal year in which we intend to acquire price, whichever is less. the property. J 5.13 W hat budget considerations affect Letters of Intentl F. A statement indicating that if we are unable or decline to purchase the land within the projected time frame, or at any A. The Director will sign Letters of Intent for the program time, disposition of the land or Interests in land by the year before we forward our budget to the Department. This nonprofit organization is without liability to the Federal Is not an attempt to limit Regional land acquisition programs, Government. but an effort to include Regional needs within the budget G. A clause stating that any acquisition by the nonprofit Estimate Lt tt the f Departmen t will r c~ a ath efts aBuyear organization for resale to the United States wilt use appropriation from which the funds will be paid. Department of Justice Standards for Land Acquisition. B. We may give special priority consideration to funding H. A description of the agreed-upon roles, responsibilities, requests that relate to an existing Letter of Intent. and conditions of the purchase by the nonprofit and sale to us. Some of the items to include are: (1) an estimation of 5.14 What access does the Service have to records and reasonable acquisition related expenses, and (2) a request financial information of a nonprofit organization? J foracompletedisclosurestatementfromthenonprofitbefore REAL PROPERTY FISH AND WILDLIFE SERVICE 1 REAL PROPERTY J Real Prooertv Part 341 Land Acquisition Chapter 5 Nonprofit Organization Acquisition 341 FW 5 J A. As a followup to a Letter of Intent, we have the right to (10) Other documented direct costs (phone, copying, inspect the records of the nonprofit organization to verify the postage, courier, photographs, etc.) option price and othertermsandconditionsofanyacqulsition agreed to, including all appraisals made of the property. C. Associated Expenses. Associated expenses that require the approval of the Assistant Secretary for Policy, B. The nonprofit organization must be able to document and Management and Budget are: substantiate all expenses claimed in the transaction. 5.15 Can tha Service pay Interest to a nonprofit (1) Outside legal fees. organization? We are prohibited from paying any interest (2) Travel related to the acquisition. to a nonprofit organization as a result of their participation in land acquisition transactions. (3) The nonproflt's staffsalarywhen specifically itemized and attributed to the cooperative project (overhead). 5.16 What can the Service pay when acquiring property ~ from a nonprofit organization? We can pay: 5.17 What are the appraisal requirements for acquiring land from nonprofit organlzatlonsl A. Market Value. A. Either we or an appraiser that we recommend and/or (1) The market value of the property, based upon the approve will prepare appraisals. Appraisals will conform with Service-approved appraisal and agreed upon bythe nonprofit the Uniform Appraisal Standards for Federal Land organization, or a lower amount at which the nonprofit Acquisitions. organizatlan offers to sell the property; or B. Reviews of appraisals following a Letter of Intent will not ~ (2) The purchase price paid by the nonprofit organization to exceed the marketing period of the land as described in the acquire the property from a third party. This pdce is nat to appraisal report (see 342 FW 2). exceed the appraised market value approved by us, plus ~ reimbursable direct costs and associated expenses. We will L.. pay associated expenses from a list approved by the Assistant Secretary for Policy, Management and Budget. The expenses are those that the Department would have I paid itself in acquiring the concerned property. In special ~ cases, the Secretary may approve payment of a predetermined overhead cost. 8. Reimbursable Expenses. Reimbursable expenses include the following: (1) Surveys. " (2) Appraisals. (3) Tifle reportsfinsurance. L (4) Documentary stampslrecording fees. { (5) Escrow fees/closing expenses. i ~ (6) Interim repairs/maintenance. L (7) Contaminant surveys. (6) Conveyance fees. ` (9) Penalty costs for prepayment of pre-existing mortgages. L. 06/17/01 FWM 369 REAL PROPERTY New Exhibit 1 341 FW 5 i SAMPLE LETTER OF INTENT - In Reply Refer To: FWS/RE Mr. John Doe Chairman, The XYZ Land Trust ] 000 Main Street Arlington, Virginia 20002 Deaz Mr. Doe: ~ We have been informed of the availability of acres located within the National Wildlife Refuge in County, Washington. We would appreciate The XYZ Land Trust assisting us in the acquisition of this important property. We encourage you to consider acquiring and donating the property to the Service. However, if a donation is not possible, we will, subject to an approved contaminants survey and the completion and approval of the necessary documents, purchase the property from XYZ at your purchase price (not to exceed the Service's approved appraised value) plus an amount that will allow for the payment of related and associated expenses from a list approved by the Assistant Secretary for Policy, Management and Budget. It is anticipated that funding constraints will make it necessary to delay the completion of the purchase until Fiscal Year or later. Before we reimburse you, we will request a full disclosure statement. The disclosure statement should include the following: J (1) The actual purchase price. J (2) An estimated list of expenses specifically associated with the tract to be transferred. (3) A copy of the purchase agreement and/or deed between XI'Z and the landowner. J In the event we aze unable to purchase the property from you, it is understood and agreed that the XYZ Land Trust, without liability to the Government, may take whatever action is necessary to J recoveritsinvestment,includingtheplacementofthepropertyontheopenmazketifnoconservation purchaser can be found. J We appreciate your assistance and interest in our program. Sincerely, J J DIRECTOR J 06/17/01 FWM 369 REAL PROPERTY New