HomeMy WebLinkAboutCOM 1122.003 2004-2006
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Harry Kim Dixie Kaetsu
Mayor Managing Director
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Barbara Kossow
Deputy Managing Director
County of Hawaii
25 Aupuni Street, Room 215 • Hilo,'Aawaii 96720
(808)961-8211 • Fm(808)961-6553
October 16, 2006
The Honorable Stacy Higa, Chair and Members of the County Council
Hawaii County Council
Hilo, HI 96720
RE: Testimony Relating to Proposed Resolution 486-06 to Establish a Community Facilities District
for Villages of Aina Le'a Improvements
Dear Chairman Higa and Council Members:
A Community Facilities District (CFD) confers many benefits to a developer: tax-exempt financing that
carries lower interest rates, a longer amortization period over 30-40 years compared to conventional
construction loans, and the County collects the debt service payments from the ultimate lot owners after
the developer has sold the property. In return for these benefits to the developer, Hawaii County Code
section 32-18 requires "that no district shall be established unless the Council finds that such approval
is in the public interest."
Unlike the Community Facilities District for the County's W aikoloa workforce housing project where the
public interest of a 100% affordable housing project is clearly evident, finding the public interest for a
private project is more challenging. For the subject CFD proposal, we have serious concerns that the
public interest has not been clearly set forth to date. Consequently, the administration takes no position
on this subject proposal.
The finding of sufficient public interest will be required in order for the subject district to be formed by
ordinance. Both the Council and administration need to be satisfied that the public interest will be served.
For the administration to make this determination, a policy must be established to allow the systematic
review of CFD proposals to assess the public interest. This policy will set forth the procedures such as
which departments need to sit at the table to review the CFD proposals and what the criteria would
include.
We will be working to establish such a policy. We understand that Resolution 486-06 is before you now.
If approved today, before this policy is set, we will not support action on an ordinance of formation until
the policy is established and it is determined that this proposal is in the public interest, based on the
criteria in the policy.
We look forward to working with you on this proposal.
rKim Comm. No. Ref. To: Pte>NMrit
Mayor Ref. Uote OCT 17 2006
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