HomeMy WebLinkAboutREP FC 349 10/17/2006 2004-2006 ' REPORT OF THE
` COMMITTEE ON FINANCE
DATE: October 17, 2006 Re: Comm. No. 1122/Res. No. 486-06
PLACE: Council Chambers
TIME: 9:00 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 486-06, reports as follows:
Resolution No. 486-06, transmitted by Finance Committee Chair Virginia Isbell, via
Communication No. 1122, dated October 4, 2006, declares the intention of the County of
Hawaii to establish a Community Facilities District, designated as Community Facilities District
No. 1 -The Villages of Aina Le`a, to authorize financing for prescribed special improvements, to
authorize levy of a special tax, and to authorize issuance of bonds secured by proceeds of the
special tax.
In response to a petition (the "Petition") submitted to the Council of the County of Hawaii (the
"Council") by Bridge Aina Le`a, LLC, a Hawaii limited liability company (the "Developer"), as
the owner of the land, the Council proposes to establish a community facilities district (the
"Proposed District"), including four (4) improvement areas (each, an "Improvement Area"),
within the County of Hawaii (the "County") under the terms of Chapter 32 of the Hawaii
County Code 1983 (2005 Edition, as amended) ("Chapter 32"), with the boundaries of the
Proposed District to be as shown on the Boundary Map, which is on file with the Director of
Finance of the County.
In response to the Petition, the Council intends to provide for the issuance of one or more series
of bonds (the "Special Tax Bonds") pursuant to Article 6 of Chapter 32 (all references hereafter
in this resolution to Articles and Sections shall be deemed to be references to the corresponding
Article or Section as set forth in Chapter 32 unless indicated otherwise) in an aggregate principal
amount not to exceed $100,000,000 to finance (i) all or a portion of the costs of the special
improvements and (ii) all or a portion of certain incidental expenses.
The Special Tax Bonds shall be secured by the special taxes to be levied upon taxable property
in the Proposed District.
Communication No. 1122.1 a petition requesting institution of procedure for establishment of
district pursuant to the Community Facilities District Code (Chapter 32 of the Hawaii County
Code).
FC REPORT NO. 349
Mayor Harry Kim, transmitted a memo dated October 16, 2006, provided comments on
Resolution No. 486-06, which states that the administration takes no position on this subject
proposal, as they are working to establish a policy to allow the systematic review of CFD
proposals to assess the public interest.
Your Committee heard from Brian Hirai, who assisted in the process as the County's bond
counsel, Sam Sperry of the Orrick Herrington law firm who is served as special counsel and
Andrea Roess of the David Taussig consulting firm who is serving as special tax consultant.
Also present at your meeting was Bridge Aina Lea's Chief Executive Officer Hoolae Paoa and
Project Manager Jim Baldwin that provide information about the proposed community and the
infrastructure improvements.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 486-06
and recommends its adoption.
smc
Aves noes A&E ex Respectfully submitted,
ARAKAKI X
HIGA x COMMITTEE ON FINANCE
HOFFMANN X
HOLSCHUH X t
[KEDA XU\
ISBELL X
JACOBSON x VIRG IA ISBELL, CHAIR
FILACO X FC REPORT NO. 349
SAFARIK X ADOPTED: OCT 3 ~ 1Of~