HomeMy WebLinkAboutCOM 0465.012 2006-2008
Castle & Cooke HawaSi Fax :8085482980 Aug 17 2007 14:3" P.OS
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Inly 10, 200
The Honorable Pete Hoffman
Council Chatr & Presiding Officer
Hawai i County Council
25 Aupuni Street
Hilo, IdI96720
By Fax: 808-961-8912 and E~Mail: counciltestimony@co.hawaii.hi.us
RE: BILL II2 -Relating to Affordable Housing - OPPOSL~ WITH COMMENT
Hawai I County Council Meetiutg, Tuesday, July 70, 2007 - 9AM
Aloha Chair Hoffman and Councilmembers:
T am Bruce Garrett: Executive Vice President of Castle & Cooke Homes Hawaii, Inc.
Castle & Cooke strongly opposes Bill II2. Tn general, exactions that legitimately
address project imparts should be imposed as explicit, upfront conditions to obtainin
entitlements at State land use or County zoning, and not conditions to sulxiivision.
Subdivision is traditionally a ministerial process after substantial planning and invest Went
have already occurred in reliance upon entitlements. Castle & Cooke submits that : a
rna[ter of basic fairness, a costly and unforeseen affordable requirement should not br
imposed on a fully entitled project already under development like our Wehilani proj~ ct
in ~Vaikoloa Village.
We fully suppott programs and lei station that provide incentives to encourage
development of affordable housing for local families. Ra[her than mandate the
construction of affordable housing, we feel that the County should provide incentives to
promote the development of affordable housing to reduce the cost and risk of
development [hereby encouraging the private sector to develop more affordable hou; ng
We beliecc that Bill 112 wilt ncgativety impact the supply of housing because it maht s it
infeasible co complete and go forward wi[h entitled projects already under dcvclopme tt
like our Wehilani project.
We respectfully rayuest the County Council's consideration of the following fac[ors atd
circumstances with respect to Bill 1.12 generally, and in particular, its unfair impact on
nurability to complete. the Wehilani project.
It has been Hawaii's traditional practice to exact conditions at the entitlement proses>'. at
the State land use and county rezoning processes. This practice results in predictabili~;;
helps to define land planning up front and commitments for the tuturet and, allows
developers and state and county governments to plan and fund development accordirpy
Bill 112 contradicts th,s practice by creatin, an affordable housing requirement at the
Conan: ~~os. l ~
Ref. Ta
Ref. Date 22 2QQ~
Castle & Cooke Hawaii Fax~8085482980 Rug 17 2007 14 3:. F. Oa
subdivision process and creates unpredictability and financial uncertainties at the. sub-
division application process. In fact many projects secure financial commitments to ga
forward based nn entitlements obtained at the State band Use and/or County Re-zoni tg
prxess. Developers, like Castle & Cooke, proceed with planning and des,gtt and
Fnancia! proformas and analysis of planned communities based on land use and zoning
entitlements and conditions and exactions imposed at that lime.
The following recaps the Wehilani project's support of housing opportunines for the local
market in R'aikoloa ~~illage in reliance upon existing State land use and County zoni;ig
and ordinances:
• In 1969, County of Hawaii by Ordinance No. 291 granted coning for a master
planned community at Waikoloa village, which includes 3UU acres set aside f;,r
affordable housine. Ordinance No. 291 covers the land under our Wehilani
project.
• On August 24, 2004, Castle & Cooke Hawaii sent a letter to Mayor Harry Kirn to
voluntarily commit 49 affordable for-sale (l0U% to 14U% AIvII), 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 firs[ phase of developn;e.n: to
address the immediate affordable housing need. On September 17, 2009, Caste &
Cooke teccivc:d a letter from IVlayor Harry Kim acknowledging the 49 affordable
condos as "all the affordable units given to Flawaii's people voluntarily." As of
today, 52% of the homes delivered at Wehilani have been [here affordable ua`ts.
• On September 2, 2004, the County of Hawaii granted our Planned Unit
Development Permit No. 72 (PUD 04-02). 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 pax1:,
and a wide range of home offerings for Hawaii Island residents and not the re rort
market. As such, Castle & Cooke proeezdzd with the master planning of the
entirz community, with each phase being subjeta to final subdivision (per pha~.e
and market)
• Castle & Coo}te has proceeded with planning, design and substantial investment
in developing the Wehilani project injustifiable reliance upon existing State land
use and County zoning and ordinances, including our agreement with the Cou-.rty
Embodied in our PUD Permit. We are not able to incorporate a new affordabh:
housing requirement without substantially affecting the design and financial
feasibility of L7is project.
• The homes we are developing are not intended for the resort market or for sec.>nd
home buyers. Our puzpose 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 liv able
communrty.
• If $ill 1 IZ new affordable exaction were infcrpretcd to apply to the Wehilani
project at this late date, it would tender the projeet infeasible, and we would n x
he able to complete and supply remaining homes and subdivision commitments
and improvements. It would place in jeopardy the planned county park, road
extensiun to Ilulu Street, and STOP the dcvclopmetn of the remaining 481 hot~tes.
• $ill 112 STOPS the further dcvclopment of Wehilani ut Waikoloa.
Castle & Cooke Hawaii Fax~8085482980 Aug 17 2007 143". F. OS
e
Castle & Cooke is providing homes for a wide range of incomes and famiUcs in [his
community. -['his mt:asure, if applied to us, will stop further development and wih
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. i~`e acknowledge the County's desire to promote the developme it of
affordable housing but strongly recommend that the County Counci] re-consider Bi11 t l2
and focus on incentives to promote affordable housing production.
As such, we resyectlully request your consideration in opuosin2 Bill 112. Howe~~ er,
should you decide to move this bill to oassaee, we respectfully request you that
exempt projects like our Webllatu project based op the foregoing facts.
As always; Castle & Cooke appreciates the opportunity to share our views with you. 4Ye
thank you for your careful consideration of this ir:quest. If there are any questions, p e;tse
me at (808) 548-3746 or Race Randle, Project 1vlanagcr at (808) 548-2998.
Sincerely.
Bruce Barrett
Executive Vice President
Castie & Cooke Homes Hawaii, Inc.
CC: Mayor Hany Kin, County of Hawaii