HomeMy WebLinkAboutCOM 0183.071 2006-2008 Testimony on Bi1155, (2007) Hawaii County Council public hearing June 5, 2007
Presented by Michael Reimer, Kailas-Kona, 96740
Bill 55 is an exciting opportunity to use provisions of HRS 46 and County Code Chapter 35 to
authorize the establishment of a Business Improvement District even as the center of business
activity moves northwazd toward Honokohau Harbor. The general concept, to focus on the
appeal of the Village Center, is admirable but it is an ordinance that is not quite ripe for
deployment.
As evidenced by many concerns already expressed there aze some shortfalls that need to be
addressed and I am pleased that the County Council is having a public hearing on the matter and
I trust they will take into consideration the need for some amendments to improve the ordinance.
I am pleased to bring several items to the Council's attention that I believe suitably represent the
need for some adjustments.
First, the overall benefit is poorly spelled out. It is boiler plate of HRS 46 and lacks detail for the
Kailua project. There is no question that this could be very close to a Christmas giveaway in
June for the landlords of the property. Much of what has been proposed in Section 3, subsection
(b)(i) of the Bill aze functions that should be normally provided by the landlord; for brevity I
will refer to them as the three Ps; painting, power washing, and patrols. I believe special care
must be taken to separate the limit of what is reasonable and proper for a landlord to provide and
what is extra service provided by the BID. Will there be a rent freeze for the tenets for the
duration of the District bill? Will those in zone 2, the homeowners, receive any benefit; will
their sidewalks and streets receive regular power washing? Will the Aloha Ambassadors
regularly patrol their condominium properties?
A cost benefit analysis is lacking. I called the Chamber of Commerce. They referred me to Ms.
Baker. Her office responded to me that no such study had been done. That is unfortunate in that
it would lead to better review for accountability. We are told this completed project will increase
revenues but without a study, this is merely an illusion. Will Norwegian Cruise lines double the
number of ships visiting the Village as a result of the improvements?
Second, the funding mechanism could be greatly improved. I am against levying a special
assessment for this district. I would rather see the expense come from those who will directly
benefit. In this time of great concern for affordable housing, another real estate tax is an enigma
and unwarranted. It would be better for this improvement district to be funded by a fee assessed
to business transactions conducted in the district. This can be accomplished by the County using
its authority to collect fees, not taxes, from sales in the BID. This concept is already used for
funding thousands of improvement projects across the nation and should be used here. Certainly
in this fashion, there will not be more spent than is collectable, which is good insurance in times
of economic slowdown. Further, if sales with an extra 1.75 percent fee cannot generate enough
revenue to cover the costs of the BID, then the magnitude of the entire project should be
rethought. ~
Comm. No.
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Third, I would hope the Council would amend the voting process so there are no assumed votes
or hanging chads. The current method can be properly called the date-rape-drug approach. Yes
means yes, no means no, and no answer for whatever reason means yes. There is no way to
know if all owners and lessees received timely notice unless it is mailed with receipt notification.
Let the majority be counted from those submitting a response, not those who may be
unresponsive for any number of reasons, or establish a quorum of 67 percent.
Fourth, and with a touch of humor to reinforce the seriousness of the point, do not pay one penny
to anyone for the creation of this concept. If the county had contracted with an outside specialist
firm to pay for a feasibility study, that is quite different. But here if you allow this payment to
special interest groups, I want to inform the Council and District that I expect to be reimbursed
for the time and effort spent on preparing my testimony given here tonight.
In summary, I believe this is the first County use of Chapter 35 in Kona. Extra time and Gaze are
warranted to work out as many problems as possible so it carefully sets the framework and
standazds for future proposals.
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