HomeMy WebLinkAboutREP FC 052 02/21/2007 2006-2008 REPORT OF THE
COMMITTEE ON FINANCE
DATE: February 21, 2007 RE: Comm. No. 148/Res. No. 60-07
PLACE: Sheraton Keauhou Bay Resort & Spa
78-128 `Ehukai Street
Kailua-Kona, Hawaii
TIME: 2:03 P.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 60-07, reports as follows:
Resolution No. 60-07, transmitted by Council Member Dominic Yagong, via Communication
No. 148, dated January 31, 2007, is to postpone the pending public auction of Hamakua Lands in
Pa`auilo, Tax May Keys (TMK's) (3) 4-3-7:01; 4-3-09:19; 4-3-09:24; 4-3-11:01 and 4-3-11:02,
to enable the Hawaii County Council to formulate a plan of land disposition to help alleviate the
affordable housing crisis on Hawaii Island.
In 1994, the Council of the County of Hawaii, agreed to accept approximately 4,400 acres of
land by Commissioner's Quitclaim Deed as a settlement for retroactive real property taxes
among Western Farm Credit Bank, the County of Hawaii and Hamakua Sugar Company, Inc.
On June 19, 2002, the Hawaii County Council approved Resolution No. 209-02 authorizing the
sale by negotiation of the former Hamakua Sugar Company, Inc. lands now under County
ownership in addition to the authorization provided in Resolution No. 161-02 (sale by auction,
land exchange by negotiation, and short-term lease by auction, seal bids or negotiation), which
was approved on January 24, 2002.
The Hawaii County Department of Finance contracted PBR Hawaii to prepare an
environmental assessment on the TMKs: (3) 4-3-07:01, 4-3-09:19, 4-3-09:24, 4-3-11:01 and
4-3-11:02, Pa`auilo, Hamakua, Hawaii encompassing approximately 700 acres for the purpose
of selling said properties. The Final Environmental Assessment states that the Hawaii County
Department of Finance proposes to sell the subject properties at public auction.
Section 2-112, of the Hawaii County Code 1983 (2005 Edition, as amended) states, in part,
"Unless the council finds substantial reasons to dispose of real property in some other manner,
all disposition of real property shall be made at public auction, after public notice as provided in
section 2-111....".
FC REPORT NO. 52
Page -2-
Resolution No. 60-07
The Hawaii County Council finds the current affordable housing crisis to be a substantial reason
to halt the disposition of said properties through public auction as it would eliminate the
opportunity for most Hawaii Island residents, especially first-time buyers, to compete for
purchase of these properties.
Subsection 2-114(a) of the Hawaii County Code 1983 (2005 Edition, as amended) states, "Real
property may be sold or leased through negotiation upon finding by the council that the public
interest demands it and upon approval of the minimum conditions and selection criteria of the
council."
Rule 9 of the Rules of Procedure and Organization of the Council of the County of Hawaii
allows the establishment of an Ad Hoc Committee which would then help to formulate a plan of
land disposition that would hopefully meet the affordable housing needs of our community, said
committee would be named the Hamakua Lands Ad Hoc Committee.
The Hawaii County Council recognizes that the original intent of a previous council to sell these
lands was to address a $10,000,000 to $14,000,000 budget shortfall, and that the current
administration moved forward with the sale to satisfy that directive.
Today the County of Hawaii enjoys a budget surplus of over $11,000,000, and it is projected
that real property tax revenues will exceed that of the previous fiscal yeaz. This financial
position gives the County a golden opportunity to utilize these public lands not for profit, but to
give hope to people in achieving the American dream of affordable home ownership.
Your Committee agreed that the pending sale by public auction by the Hawaii County Finance
Depaztment on TMK's: (3) 4-3-07:01, 4-3-09:19, 4-3-09:24, 4-3-11:01 and 4-3-11:02, Pa`auilo,
Hamakua, Hawaii be postponed until such time that the Hamakua Lands Ad Hoc Committee
formulates a plan of land disposition that would help to meet the affordable housing needs of our
Hawaii Island community.
Your Committee selected members of the Hamakua Lands Ad Hoc Committee as follows:
Council Member Dominic Yagong, Chairman; Council Member K. Angel Pilago,
Vice-Chairman; Council Member Pete Hoffmann; and Council Member Brenda Ford. The
Hamalcua Lands Ad Hoc Committee will be working towards formulation for the disposition of
these lands, and will report their findings back to Your Committee no later than April 17, 2007.
FC REPORT NO. 52
Page -3-
Resolution No. 60-07
Pursuant to Section 2-112, Hawaii County Code, the disposition of real property shall be by
public auction unless there is a substantial reason for disposition in another manner.
Pursuant to Section 2-114(a), Hawaii County Code, real property may by sold or leased through
negotiations upon finding by the Council that public interest demands it.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 60-07
and recommends its adoption.
la
AYES NOES A&E EX Respectfully submitted,
FORD X
HIGA X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
JACOBSON X
NAEOLE X DOMINIC YAGO ,
PILAGO X FC RE T O. 52
YAGONG X ADOPTED: MAR O 9 2007
YOSHIMOTO X