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HomeMy WebLinkAboutRES 234 Draft 02 2004-2006 +VV^0I M COUNTY OF HAWAII STATE OF HAWAII ~I~ O~~MI~~ RESOLUTION NO. 2.34 #:36 Draft 2 RESOLUTION DECLARING THE PROVISION OF AFFORDABLE WORKFORCE HOUSING TO BE A BURDEN AND RESPONSIBILITY OF THE COUNTY OF HAWAI I, DESIGNATING THE WITHIN-MENTIONED NON-PROFIT CORPORATION AS THE KEY ENTITY IN ASSISTING THE COUNTY IN MEETING THIS BURDEN AND THEREBY LESSENING SUCH BURDEN, AND RECOGNIZING THAT WITHOUT THIS NON-PROFIT CORPORATION THE COUNTY ITSELF WOULD HAVE TO UNDERTAKE THE AFFORDABLE WORKFORCE HOUSING ACTIVITIES THAT THE CORPORATION INTENDS TO CARRY OUT WHEREAS, the leisure and hospitality industry is the largest source of employment in the County of Hawaii and has the greatest potential for private sector growth and development there; and WHEREAS, the economy of West Hawai i. in particular is primarily driven b,~ the visitor or tourism industry; and WHEREAS, hotels in West Hawai i are in need of workers, including cooks, maintenance workers, and experienced housekeeping and sales managers; and WHEREAS, essential public employees such as school teachers, police officers and firefighters are also needed to serve the West Hawai i. community; and WHEREAS, there is a lack of affordable housing for such public and private sector workers in West Hawai i, which has made i.t necessary for them to work two or three jobs, live in overcrowded or substandard conditions and/or commute from distances of 50 m~~les or more; and WHEREAS, without additional affordable housing for average workers, many employers will be unable to recruit and retain critical employees to their organizations; and LVHEREAS, without such affordable housing it will be difficult to recruit and retain essential public employees critical to providing needed services in West Hawai i; and WHEREAS, Hawai i County, therefore, must take action to increase r_he sup}~ly of housing that is affordable to workers in the hospitality industry in West Hawaii and essential public employees in order to facilitate the future economic development of this area and provide government services within Hawai i County as a whole; and WHEREAS, Hawaii state law authorizes the counties, as well as the Housing and Community Development Corporation of Hawai i, to undertake various programs and activities for the provision of low and moderate income housing; and WHEREAS, the County prefers to exercise its responsibilities through the creation of a new non-profit corporation (the "Corporation") that would sponsor and undertake affordable workforce housing development:, rather than by having the County itself function as a housing developer.; and P?HEREAS, the County expects to support the Corporation initially by providing land at little or no cost to the Corporation for a major development of both for-sale and rental housing in Waikoloa; and WHEREAS, the Corporation would develop the property at 6Vaikoloa through a wholly owned limited liability company, which would own the rental housing and lease sites for the owner-- occupied housing to the homebuyers under terms that include resale restrictions necessary to keep the units affordable to subsequent eligible buyers; and WHEREAS, the Council expects the Corporation to be organized and operate as follows: o It would be organized as a non-member corporation under the Hawai i Non-profit Corporations Act (HRS Chapter 414D), and application would be made to the Internal Revenue Service for recognition as a tax-exempt organization under Section 501(c}(3) of the Internal Revenue Code; o The Corporation would be required to report to the County on its activities on an annual basis; o The Corporation would be governed by a self-perpetuating board of directors that is independent of the County but would include some County representatives who serve as ex- of£ici.o, nor-voting members; o The Corporation's Articles of Incorporation would require all of the c'orporation's assets and income to be devoted permanently to the provision of affordable workforce housing in 'lawai'i County; o The Corporation would be empowered t.o receive additional parcels of land to be used for affar dable workforce housing, including charitable donations of land, in addition to the County parcel to be used for the Waikoloa Employee Housing Project; o If the Corporation is dissolved, under its Articles of Incorporation, its assets would be dist=ributed to the County. NOW, THEREFORE, BE IT RESOLVED, that the Council hereby declares the provision of affordable workforce housing, including housing for workers in the hospitality industry in West Hawaii and essential public employees, to be a burden and responsibility of the Hawaii County government; and BE IT FURTHER RESOLVED, that the Counc:~l hereby designates the Corporation as the key entity whose activities will assist the County in meeting its burden and thereby will lessen the County's burden; and BE IT FURTHER RESOLVED, that the Counc~l recognizes that, without this Corporation, the County itself would have to undertake the affo~dable workforce housing activities that the Corporation intends to carry out. Dated at Hat,].o Hawaii, this ~ day of 2006 . INTRODUCED BY: , COUNCIL MEMBER, COUNTY OF HAWAI I COUN'T'Y COUNCIL ROLL CALL voTl•; County of Hawaii AYES NOES ABS EX Hilo, ITawai `i ARAKAKI X RIGA X 1 hereby certify that the foregoing RESOLUTION was by HOFFMANN X the vote indicated to the right hereof ar~opted by d~~ COUNCIL of the HOLSCHUH X County of Hawaii on J d.hll~~. ~ , 20 Q_fL_ . IKED~'+. ISBELL ATTEST: JACOBSON PILAGO X ~ SAFAI?IK X ~ ~A Reference: C-613.2 /Waived CHA _T, COUNTY CLERK C RMAN & PRESIDING OFFICER RESOLUTION NO. Dra ~ 2