HomeMy WebLinkAboutBIL 150 Draft 01 2006-2008 COUNTY OF HAWAII ,f` STATE OF HAWAII
BILL NO. iso
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 32 ARTICLES 2, 5 AND 6 OF THE HAWAII
COUNTY CODE 1983 (2005 EDITION, AS AMENDED) RELATING TO COMMUNITY
FACILITIES DISTRICTS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this measure is to amend Chapter 32 of the Hawaii County
Code regazding required appraisals of properties within community facilities districts established
pursuant to such chapter and to clarify the applicability of special taxes under such chapter to
certain leasehold and other possessory interests.
SECTION 2. Chapter 32, Article 2, Section 32-18, Hawaii County Code 1983 (2005
Edition, as amended), relating to the institution of procedures, is amended to read as follows:
Sectiou 32-18. Iustitution of Procedures.
(a) The procedure for the establishment of a district may be instituted by the
council on its own initiative and shall be instituted by the council at its
next regulaz meeting for which notice has not yet been given, after receipt
by the clerk of a petition requesting the institution of the procedure signed
by the landowners owning the requisite portion of the azea of the proposed
district, as specified in pazagraph (d) of section 32-19, accompanied by the
payment of a fee (if any) which the County determines is necessary to
compensate the County for costs expected to be incurred by the County in
conducting the procedure to create a district pursuant to this chapter.
(b) No district shall be established unless the council finds that [the-sppr~sed
egprevel] the establishment of such district is in the public interest. The
council's findings shall be final and conclusive.
SECTION 3. Article 2, Section 32-21, Hawaii County Code 1983 (2005 Edition, as
amended), is amended to read as follows:
Section 32-21. Reports of facilities.
At the time of the adoption of the resolution of intention to establish a
district, the council shall direct the director of public works, department of public
works, or other appropriate department, officer or officers who is or will be
responsible for providing or maintaining one or more of the proposed types of
facilities to be financed by the district, if it is established, to study the proposed
district and, at or before the time of the hearing (or within 60 days after adoption
of the resolution of intention, or such earlier date established by the council, if the
hearing is waived pursuant to section 32-24), file a report with the council
containing a brief description of the proposed facilities by type which will in their
opinion be required to adequately meet the needs of the district, and their
estimate of the cost of providing those facilities[, °~a °~~~°'n°a °F'w°
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In preparing the report, the
department or officer may consult with other officers of the County or the State
and with any financial feasibility or other consultant retained by the County or
any property owner to assist in the procedure or otherwise available. If the
purchase of completed facilities or the payment of incidental expenses is
proposed, the council shall direct the appropriate officer to estimate the fair and
reasonable cost of those facilities or incidental expenses. All of those reports
shall be made a part of the record of the hearing on the resolution of intention to
establish the district.
SECTION 4. Chapter 32, Article 5, Section 32-54, Hawaii County Code 1983 (2005
Edition, as amended), is hereby amended to read as follows:
Section 32-54. Levy of special tax on leasehold or possessory interest in
[Ptl Property[
(a) If a public body owning property, including property held in trust for any
beneficiary, which is exempt from a special tax pursuant to section 32-53,
directly or indirectly grants a leasehold or other possessory interest in the
property to a nonexempt person or entity, the special tax shall,
notwithstanding section 32-32 or 32-53 or any other provision of this
chapter, be levied and constitute a lien on either the fee title interest or the
leasehold or possessory interest and shall be payable by either the owner
of the fee title interest or the owner of the leasehold or possessory interest
as specified in the applicable ordinance. In addition, in the case of
property owned by a person or entity other than a public body, if such
person or entity directly or indirectlygrants a leasehold or other
possessory interest in the property to a nonexempt person or entity, the
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a~licable ordinance of formation, ordinance of consideration or
ordinance of annexation mawprovide, notwithstanding section 32-32 or
32-53 or any other provision of this chapter, the special tax shall be levied
and constitute a lien on the leasehold or other possessory interest in such
property and shall be payable by the owner of the leasehold or possessory
interest.
(b) When entering into a lease or other written contract creating a possessory
interest that may be subject to taxation pursuant to subsection (a), the
public body or other lessor or rg antor shall include, or cause to be
included, in the contract a statement that the [preperfy] possessory interest
may be subject to special taxation pursuant to this chapter, and that the
party in whom the possessory interest is vested may be subject to the
payment of special taxes levied on the possessory interest. Failure to
comply with the requirements of this section shall not, however, invalidate
the contract or affect the validity or enforceability of the special tax or the
obligation of the party in whom the possessory interest is vested to pay the
special tax.
Section 5. Chapter 32, Article 6, Section 32-57, Hawaii County Code 1983 (2005
Edition, as amended), is amended by adding a new section to be appropriately designated and to
read as follows:
(cl The principal amount of bonds issued and outstanding for a district
pursuant to this article shall not exceed one-third of the value of the real
property upon which a special tax is levied for ~avment of the debt service
on the bonds. The "value of the real property" shall be the fair market
value of the land and special improvements to be constructed within or
financed by the district, as evidenced by an appraisal of the subject
property made by a certified general real property appraiser who is a
Member of the Appraisal Institute (MAIL or a reasonably compazable
professional organization of real property appraisers. Notwithstanding the
foregoing, such requirement shall not apply if the council finds and
determines by a vote of not less than two-thirds of its members that the
proroosed bond issue will assist materially in promoting significant public
policies, programs or initiatives of the County.
SECTION 6. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed and stricken material and
underscoring need not be included.
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SECTION 7. If any provision of this ordinance, or the application thereof to any person
or circumstance is held invalid, such invalidity shall not effect other provisions or applications of
the ordinance which can be given effect without the provision or application, and, to this end, the
provisions of this ordinance are declared to be severable.
SECTION 8. This ordinance shall take effect upon its approval.
INT ODUCED BY:
COUNCIL MEMB Y OF HAWAII
Hawaii
Date of Introduction
Date of 1st Reading
Date of 2nd Reading
Effective Date:
RE~CR~hI~: ~o~~i. 597
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