HomeMy WebLinkAboutCOM 0148.001 2006-2008 eJN(v OG.t!S
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Harry Kim Dixie Kaetsu
Mayor ~ ~ ~ Managing Director
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Deputy Managing Director
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891 Ululani Street Hilq Hawaii 96720-4252 • (808) 961-82I I • Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suite 103 Kailua-Kona, Hawaii 96740
(808) 329-5226 Fax (808) 326-5663
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February 18, 2007
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The Honorable Dominic Yagong ~
Council Member
Hawaii County Council
333 Kilauea Avenue
Hilo, Hawaii 96720 `D
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Re: Resolution 60-07 -Regarding Planned Sale of Hamakua Land
Dear Council Member Yagong:
I have reviewed Resolution 60-07, which if passed, would postpone a pending public auction
of County-owned land in Pa`auilo to enable the Council to explore using this land to alleviate
the affordable housing crisis on Hawaii Island.
There is absolutely no dispute that there is a housing crisis in our County and State. In fact, it
was in 2003 that I first asked the Governor and the other mayors to join with Hawaii County
in declazing that there is a statewide crisis in housing, and that crisis continues until today.
However, there are two reasons why Resolution 60-07 is not supported: First, a philosophical
belief about how the County's Hamakua lands should be handled, and second, inherent
problems with using these specific parcels for affordable housing.
Hamakua Lands. As stated in this resolution, in 1994 the County accepted 4,400 acres of
land from Hamakua Sugar Company in lieu of payment of real property taxes. Real property
taxes, upon payment, are revenue for the County's general fund and are used along with other
revenues to pay for the general operations of the County government. Property taxes paid are
not designated to go back to the district for which they aze assessed or to be used for a specific
purpose. Property taxes collected are pooled and used for budgetary purposes as appropriated
by the Council in the County's annual operating budget. For this reason, this administration
supported the sale of these Hamakua lands with the proceeds of the sale going to the County's
general fund. This was approved by the Council in 2002. If the taxes had been paid, they
would have gone to the general fund; it is felt proceeds from the sale of this land should also
go to the general fund. The key is that this land represents taxes owed to the County. If the
Council wants money received from the sale of Hamakua lands to be used for a specific
purpose such as affordable housing, it is within the authority of the Council to make an
appropriation of the proceeds for purposes it desires, if it is felt the revenue is not needed for
general purposes.
Comm. Na (4 g ~
Ref. To: hn
Ref. ~>ate 1 200
Hawaii County is an equal opportunity provider and employer.
Februazy 18, 2007
The Honorable Dominic Yagong
Page 2
Parcels not appropriate for housing. It is not felt that it is possible for the land to be
auctioned to be used for affordable housing. The parcels of land proposed for this sale are not
close to necessary infrastructure. This includes adequate roads, water, electricity and sewer,
all of which would be necessazy to serve a housing development. These off-site and on-site
improvement costs would be significantly higher on this land than on other better-situated
sites. High infrastructure costs make it very difficult to create housing that is in the
"affordable" price range.
In addition, this is agricultural land that is not zoned for residential use. It is distant from
major employment centers and services. Using these parcels for higher density housing goes
against the way our lands should be developed according to the County's General Plan. The
General Plan and current Community Development Planning efforts encourage housing to be
built near existing towns and villages ("infill") where adequate infrastructure exists, close to
or within major employment and services centers. It makes sense to build houses for people
near where they can work and shop. That is one reason for pursuit of the County's Waikoloa
workforce housing project presently under development.
Conclusion. I hope it is clear why we continue to support the sale of the County's Hamalcua
lands and have not pursued affordable housing on any of the parcels to date. In closing, I
would like to bring one more idea to your attention. Although not advocated by this
administration, if the Council wants to reexamine the 2002 policy of selling the Hamakua
lands, there is a parcel of approximately 1,040 acres (TMK: 3-4-2-005-001) located next to
and mauka of Mamalahoa Highway just Hilo side of Antone DeLuz Road. No decision to
auction this pazcel has been made. There have been numerous discussions between members
of the administration because there may be a better use for this particulaz parcel. The
Council's Housing Agency has worked closely with the Office of Housing and Community
Development in looking at affordable housing needs and opportunities in our county. We are
open to discussion with the Council on the best disposition of this parcel of land.
Aloha,
Harry Kim
MAYOR
cc: William Takaba, Finance Director
Brad Kurokawa, Deputy Planning Director