HomeMy WebLinkAboutCOM 0613.002 2004-2006 rr ar M
Harry Kim Lincoln S.T. Ashida
Mm~or ~'4 Corporation Counse!
Gerald Takase
Assistant Corporation
':'o:'M~'M Counsel
COUNTY OF HAWAII
OFFICE OF THE CORPORATION COUNSEL
101 Aupuni Street, Suite 325 Hilo, Hawaii 96720-4262 (808) 961-8251 • Fax (808) 961-8622
.Ianuary 12, 2006
TO: Chairman Stacy Higa and Councilmembers
Hawaii County Council
FROM: Bobby Jean Leithead-Todd
Deputy Corporation Counsel
RE: Resolution 234-06 (Proposed Draft 2)
1 am transmitting for your consideration a proposed Draft 2 of Resolution 234-06. I have
provided both a Ramseyered and a clean version for your review. The proposed amendments
would:
l . Clarify that the County of Hawaii is concerned not only over the lack of
affordable housing for the hospitality industry but over the lack of affordable
housing for essential public employees such as school teachers, police officers,
and fire fighters.
2. Require that the non-profit corporation shall devote all of its assets and income
for the purpose of providing affordable workforce housing for both public and
private sector employees.
3. Require that the corporation ensure that the housing remain "affordable."
4. Require that the articles of incorporation protect the County's interests by
providing for reversion of all assets to the County in the event of dissolution of
the corporation.
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Enclosures
s:Nepts\huusingVtr to council re reso 234-00 1-12-06 Bi,TTC ~ ~ ~ A
Comm. No. 4.
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Hawaii County is an Equa/ Opportunity Provider and Employer Rif. p to riJ
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RESOLUTION NO. 234-06, Draft 2 RAMSEYER VERSION
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 Hawaii in particular is
primarily driven Y~y 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 it necessary for them to work two or three jobs, live in
overcrowded or substandard conditions and/or commute from
distances of 50 miles or more; and
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WHEREAS, without additional affordable housing for average
workers, many employers will be unable to recruit and retain
critical employees to their organizations; and
WHEREAS, 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, Hnwai~i County, therefore, must take action to
increase the su}~ply of housing that is affordable to workers in
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the hospitality industry in West Hawaii and essential public
employees in order to facilitate the future economic development
of this area and provide government servi.ces[~`~^ T"'~"''l
within Hawai i County as a whole; and
WHEREAS, HawaL~i 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
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WHEREAS, 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
Waikoloa 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;
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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-
officio, non-voting members;
o The Corporation's Articles of Incorporation would require
all of the Corporation's assets and income to be devoted
permanently to the provision of affordable workforce
housing in Hawai i County;
o The Corporation would be empowered to receive additional
parcels of land to be used for affordable workforce
housing, including charitable donations of land, in
addition to the County parcel to be used for the Waikol.oa
Employee Housing Project;
o If the Corporation is dissolved, wider its Articles of
Incorporation, its assets would be distributed to the
County;
NOW, THEREFORE, BE IT RESOLVED, that. the Council hereby
declares the provision of affordable workforce housing,
including housing f.or workers in the hospitality industry in
West Hawai i and essential public employees, to be a burden and
responsibility of the Hawai i County government; and
BE IT FURTHER RESOLVED, that the Council hereby designates
the Corporation as the key entity whose activities will assist
the County in meeting its burden and thex-eby will lessen the
County's burden; and
BE IT FURTHER RESOLVED, that the Council recognizes that,
without this Corporation, the County itself would have to
undertake the affordable workforce housing activities that the
Corporation intends to carry out.
Dated at Hilo, Hawai i, this day of 2005.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAI I
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