The URL can be used to link to this page

Home My WebLink AboutCOM 0465.011 2006-2008 '~C^C~~C~~~ /~?C~~C~~ 100 Kahelu Avenue i Mil7ani, Hawaii 96789-399i P.O. Box 898900 ~~tt A7ililani, Hawaii 96789-R9U0 .lucracro 0 O'ahu: (808) 548~48ll ~ Fax (808) 648-2980 [ana'i: (808) 56530(N) ~ Fax (SOS) 565331? ~ezr~ ._cY. [,~fii.a~~~.~ August 17, 2007 President Via Fax: (808) 961-8912 and a-mail: counciltestimony@co.hawaii.hi.us The Honorable Pete Hoffman Council Chair & Presiding Officer Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Aloha Chair Hoffman and Councilmembers: '-o Subject: Reconsideration of BiU 112 -Relating to Affordable Housing Hawaii County Council Meeting, Wednesday, August 22, 2007 Castle & Cooke fully supports efforts to increase affordable housing for local families. However, we are opposed to Bill 112 and previously provided our position and reasoning in our July 10, 2007 testimony in opposition to Bill 112 (attached). Bill 112 may be well intended, but it will have unintended, negative impacts, including decreasing the supply of housing. We therefore support Mayor Kim's veto, and respect his desire to increase affordable housing, as well as his carefully considered reasoning and appreciation of the complexity of increasing affordable housing in an effective and fair manner. We are willing to participate in further discussions to find real and pragmatic solutions to promote and accelerate affordable housing through effective incentives, programs and/or legislation that fairly address the legitimate concerns of all stakeholders. Castle & Cooke is providing homes for a wide range of incomes and families in this community. This has been our objective at our Wehilani project in Waikoloa Village. As an example, we have voluntary provided 49 affordable homes at Wehilani, in addition to addressing the needs of the market with a broad range of homes. Our homes do not target the high end resort and/or speculative buyers. Bill 112, if applied to us, would stop development of further phases as we would have to re-assess our planning, design, financial viability and risk tolerance to determine if we can proceed. This would further delay and worsen the supply of homes for Hawaii families in a region already challenged by limited housing stock, increasing labor and material costs as well as the lowest HUD median income of all counties, in addition to changing market conditions. These variables affect all of us in the industry and are similar issues facing the County's workforce housing program in Waikoloa. Comm: No. I ~ Ref. Toe Ref. Date 2 ~ Castle & Cooke Hawaii consists of the Hawaii subsidiaries of Castle & Cooke, Inc. which include Castle & Cooke Homes Hawai i, Ine., Castle & Cooke Properties, Inc., Castle & Cooke Resoats, LLC, and other subsidiaries The Honorable Pete Hoffman August 17, 2007 Page Two As a matter of basic fairness, a costly and unforeseen affordable requirement should not be imposed on a fully entitled project already under development like our Wehilani project. Exactions that legitimately and appropriately address project impacts should be imposed as explicit, upfront conditions to obtaining entitlements at State land use and/or County re-zoning. Knowing what the rules and requirements are at an early date fairly allows developers to plan and design feasible projects and to be able to obtain financing and invest substantial sums in reliance on the upfront requirements. Subdivision and/or other county permitting are traditionally a ministerial and regulatory process, late in the overall process, to insure compliance with subdivision, grading and/or building codes and requirements. Changing the rules at that late date could unfairly render projects not feasible afrer substantial investment. We respectfully request your consideration to not override the Mayor's veto of Bill 112. Thank you for allowing us to share our views with you. We thank you for your careful consideration of this request. If there are any questions, please call me at (808) 548-4863 or Bruce Barrett, Executive Vice President, at (808) 548-3746. Sincerely, CASTLE & OOKE HOMES HAWAII, [NC. Harry A. Saunders President Attachment copy: Mayor Harry Kim w/attachment July 10, 2007 The Honorable Pete Hoffman Council Chair & Presiding Officer Hawaii County Council 25 Aupuni Street Hilo, HI 96720 By Fax: 808-961-8912 and E-Vlail: counciltestimony@co.hawaii.hi.us RE: BILL 112 -Relating to Affordable Housing -OPPOSE WITH COMMENT Hawai i County Council Meeting, Tuesday, July 10, 2007 - 9AM Aloha Chair Hoffman and Councilmembers: I am Bruce Barrett, Executive Vice President of Castle & Cooke Homes Hawaii, Inc. Castle & Cooke strongly opposes Bill 112. In general, exactions that legitimately address project impacts should he imposed as explicit, upfront conditions to obtaining entitlements at State land use or County zoning, and not conditions to subdivision. Subdivision is traditionally a ministerial process after substantial planning and investment have already occun~ed in reliance upon entitlements. Castle & Cooke submits that as a matter of basic fairness, a costly and unforeseen affordable requirement should not be imposed on a fully entitled project already under development like our Wehilani project in Waikoloa Village. We fully support programs and legislation that provide incentives to encom'age development of affordable housing for local families. Rather than mandste the construction of affordable housing, we feel that the County should provide incentives to promote the development of affordable housing [o reduce the cost and risk of development, thereby encouraging the private sector to develop more affordable housing. We believe that Bill 112 will negatively impact the supply of housing because it makes it infeasible to complete and go forward with entitled projects already under development, like our Wehilani project. We respectfully request the County Council's consideration of the following factors and circumstances with respect to Bill 112 generally, and in particular, its unfair impact on our ability to complete the Wehilani project. [t has been Hawaii's traditional practice to exact conditions at the entitlement process; at the State land use and county rezoning processes. This practice results in predic[abihty; helps [o define land planning up front and conunitments for the future; and, allows developers and state and county governments to plan and fund development uccordingly_ Bill 1 l2 contradicts this practice by creating an affordable housing requirement at the subdivision process and creates unpredictability and financial uncertainties at the sub- division application process. In fact many projects secure financial commitments to go forward based on entitlements obt~~ined at the State Land Use andlor County Re-zoning process. Developers, like Castle & Cooke, proceed with planning and design and financial proformas and analysis of planned communities based on land use and zoning entitlements and conditions and exactions imposed at that time. The following recaps the Wehilani project's support of housing opportunities for the local market in Waikoloa Village in reliance upon existing State land use and County zoning and ordinances: • in 1969, County of Hawaii by Ordinance No. 291 granted zoning for a master planned community at Waikoloa Village, which includes 300 acres set aside for affordable housing. Ordinance No. 291 covers the land under our Wehilani project. • On August 24, 2004, Castle & Cooke Hawaii sent a letter to Mayor Harry Kim to voluntarily commit 49 affordable for-sale (100% to 140% AMI), multi-family units. We saw the need for affordable housing and we voluntarily satisfied it. In addition, we committed to building these units in the first phase of development to address the immediate affordable housing need. On September l7, 2005, Castle & Cooke received a letter from Mayor Harry Kim acknowledging the 49 affordable condos as "all the affordable units given to Hawaii's people voluntarily." As of today, 52%r of the homes delivered at Wehilani have been these affordable units. • On September 2, 2004, the County of Hawaii granted our Planned Unit Development Permit No. 72 (PUD 04-OZ). The PUD Permit encompasses the development of the entire 256-acre parcel and allowed Castle & Cooke to incorporate amenities like landscaped streets, preservation of open space, a park, and a wide range of home offerings for Hawaii Island residents and not the resort market. As such, Castle & Cooke proceeded with the master planning of the entire community, with each phase being subject to final subdivision (per phase and market.) • Castle & Cooke has proceeded with planning, design and substantial investment in developing the Wehilani project in justifiable reliance upon existing State land use and County zoning and ordinances, including our agreement with the County embodied in our PUD Permit. We are not able to incorporate a new afordable housing requirement without substantially affecting the design and financial feasibility of this project. • The homes we are developing are not intended for the resort market or for second home buyers. Our purpose is to build for Hawaii families and to provide a wide range of housing opportunities for them; a blend of single family and multi-family homes intended to meet market demands that ultimately results in a highly livable community. • If Bill 1 L new affordable exaction were interpreted to apply to the Wehilani project at this late date, it would render the project infeasible, and we would not be able to complete and supply remaining homes and subdivision commitments and improvements. It would place in jeopardy the planned county park, road extension to Hulu Street, and STOP the development of the remaining 481 homes. • Qill I l2 STOPS the further development of Wehilani at Waikoloa. Castle ~ Cooke is providing homes for a wide range of incomes and families in this community. This measure, if applied to us, will stop further development and will worsen the supply of homes For Hawaii families. For the building of housing to continue, government needs to have a predictable, fair, and committed program to address affordable housing. We acknowledge the County's desire to promote the development oC affordable housing but strongly recommend that the County Counci] re-consider Bill L 12 and focus on incentives to promote affordable housing production. As such, we respectfully request vour consideration in opposing Ri11112. However, should you decide to move this bill to passage, we respectfully request you that exempt projects like our Wehilani project based on the foregoing facts. As always, Castle & Cooke appreciates the opportunity to share our views with you. We thank you for your careful consideration of this request. if there are any questions, please me at (808) 548-3746 or Race Randle, Project Manager at (808) 548-2993. Sincerely, Bruce Barrett Executive Vice President Castle & Cooke Homes Hawaii, Inc. CC: Mayor Hang Kim, County of Hawai' i