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HomeMy WebLinkAboutREP FC 129 07/09/2007 2006-2008 REPORT OF THE COMMITTEE ON FINANCE DATE: July 9, 2007 Re: Comm. No. 349/Reso. No. 169-07 PLACE: Council Chambers Ben Franklin Bldg, 2"d Floor 333 Kilauea Avenue Hilo, Hawaii TIME: 9:41 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 169-07, reports as follows: Resolution No. 169-07, transmitted by Council Member Bob Jacobson, via Communication No. 349, dated April 17, 2007, authorizing the Finance Director to enter into negotiations for the acquisition of Punalu`u Beach Park, Ninole Pond and adjacent lands. This acquisition is critical for protecting the natural resources, public access and important habitat for endangered and protected sea turtles. A motion was made by Council Member Emily Naeole for a public heazing. The purpose of this public hearing is to take the measure to the community and obtain input from the people. Council Member Bob Jacobson will notify your Committee of the date, time, and location of the public heazing. Your Committee discussed Resolution No. 169-07 on May 1, 2007, but was held over for a public hearing with the time and location to be announced. Communication No. 349.1, transmitted by Council Member Bob Jacobson, dated Apri127, 2007, submitting proposed Draft 2, amending Resolution No. 169-07, as follows: Amends the title of the resolution by deleting "~Dr'T'`'"~"'~' nc ' and adding "CHAPTER 2, ARTICLE 42, HAWAII COUNTY CODE". Amendments were also made as follows: Amends the first "Whereas" deletes `<n_,,:.,.,.,,.e w,,, nc , ,.,.,,:Fe,, Amends the second "Whereas" deletes "n_a:..,...,.,. r,,. nc o~ ,.,.a:F,,,, Amends the fourth "Whereas" by adding the word "initial" and reads as follows: "WHEREAS, the Public Access, Open Space, and Natural Resources Preservation Commission did forward its initial list to the Mayor on April 5, 2006, establishing the purchase of Punalu`u Beach Pazk and adjacent lands, as the number three priority, and assigning it a 70% criteria score; and". Due to the existence of an updated Public Access, Open Space and Natural Resources Preservation Commission reported, a sixth whereas clause was added to reflect the newest ranking of Punalu`u Beach Park, Ninole Pond and adjacent lands to read as follows: "WHEREAS, the Public Access, Open Space, And Natural Resources Preservation Commission did forward its updated list to the Mayor on December 27, 2006, establishing the purchase of Punalu`u Beach Park, Ninole Pond and adiacent lands, as the number four priority, and assigning it an 84% criteria score; and". Communication No. 349 Resolution No. 169-07, Draft 3 Page -2- A public heazing on Resolution No. 169-07 was held on June 4, 2007. It convened at 4:30 p.m. at the Punalu`u Beach where a site visit was done. The hearing recessed at 5:00 p.m. then reconvened at 5:37 p.m. at the Naalehu School Gymnasium. The public hearing was held to allow the residents an opportunity to speak out on the measure. Public hearing was adjourned at 10:55 p.m. After discussions with Corporation Council, Communication No. 349.62 was transmitted by Council Member Bob Jacobson, dated May 28, 2007, amending Resolution No. 169-07, Draft 2, with a Draft 3 by deleting Tax Map Key Nos. " "and adding"Tax May Key Nos. 9-5-019:026, and 9-6-002:038 (except for that portion of the propertv with the established residence consisting of one single family home)". It also corrects the word "district" which was misspelled in the 11`" whereas clause. This proposed amendment rectifies that and other minor style/housekeeping issues. Communication No. 349.229 was transmitted by Finance Committee Chair Dominic Yagong, dated June 6, 2007, requesting Sea Mountain 5 to do a one hour presentation in regazds to the proposed development in Punalu`u to allow councilmember's to ask the developer questions on vazious aspects of the development. At the June 19, 2007 Committee on Finance meeting that was held at the Sheraton Keauhou Bay Resort and Spa, Mr. George Atta along with Mr. Pat Blew transmitted Communication No. 349.449, dated June 19, 2007. Mr. Atta presented the project description of the presentation, while Mr. Blew presented the community benefit package of the presentation. Presentation to Committee on Finance: June 19, 2007 Mr. George Atta Presentation Portion: 1. Description o,~proiect • 434 acres • Existing Development • Zoned for 2800 units • Brief history of property: Pre-contact, 19th century, Plantation Days, C. Brewer. Site is not pristine. • Property owned by SM Investments • Sea Mountain Five has an option to purchase the property subject to completing the EIS and receiving the SMA Approval. 2. New Plan • Sea Mountain Five after working with the community to determine acceptable guidelines has completed a new plan. • Issues that were especially important to the community aze as follows: 1. Shoreline Access • No Gates blocking public access to the shoreline azea including the County Pazk and the Shoreline Preservation Area. • Donate 17 acres to the County for the County Pazk. • Donate an additiona139 acres either to the County or a mutually agreeable entity for a Shoreline Preservation Area. Communication No. 349 Resolution No. 169-07, Draft 3 Page -3- • Add additional parking and restroom/shower facilities as shown on the Shoreline Plan to spread usage across the entire shoreline instead of just near the park and beach. • Build a waterfront trail the length of the shoreline. • Improve the boat ramp area targeting local uses. • Move hotel and residential buildings back from the shoreline even though the land is zoned. • Sea Mountain will maintain the pazk and the Shoreline Preservation Area. 2. Density • Sea Mountain Five has agreed to a maximum density on the entire site of 1400 units including up to 350 hotel units. • Sea Mountain has agreed to limit the density makai of the highway to no more than to 1158 units including up to 350 hotel/condo- hotel units. If 350 hotel units were built, this would mean 808 residential units in an area zoned for almost three limes that amount. • Sea Mountain has agreed to rezone the 109 acres mauka of the highway for a maximum of 242 residential units to move the density off of the makai portion. • Therefore, Sea Mountain is building approximately'/~ the number of units allowed makai of the highway and spreading that density over an additional 109 acres. 3. Protection of Historical and Cultural Sites • Sea Mountain Five has agreed to protect all cultural and historical sites. All burials and heiau will be protected. • Will assist the community in the development of amulti-heritage cultural center. 4. Environmental Protection and Education • Sea Mountain Five has agreed to protect all endangered plants and animals as required by the Federal, State and County Agencies. We will work with the agencies in the protection of other endangered species. • Sea Mountain Five in conjunction with Jean Michel Cousteau and Ocean Futures, has agreed to create and fund a protection program for the turtles. • Ocean Futures will develop an environmental education center and headquarter its Ambassadors to the Environment Program in Kau • Golf Course will be redesigned and operated at an Audubon Silver level for environmental protection and management. Mr. Pat Blew Presentation Portion: Community Benefit Package • Creation of a Community Fund to be administered by the community. • $1,000,000 contribution to the fund upon final approval of the SMA including settlement of any lawsuit. • $1,000,000 contribution to the fund prior to receiving a grading permit to start construction. The community has agreed that $1,000,000 of the first $2,000,000 contributed will go to improve the services of the local hospital. _ Communication No. 349 Resolution No. 169-07, Draft 3 Page -4- • Sea Mountain will contribute .3% of the total sales price of all first time residential sales of units and lots. • Sea Mountain will require the seller to make a contribution of 1 % of the sales price of any resale of a unit or lot. • The hotels will contribute $3 for every night a room is rented. • The golf course operator will contribute $1 for every round of golf that is played. • The homeowner's association will collect $3 per unit per month as a pazt of the homeowner's association fees and contribute that amount to the community fund. • Sea Mountain has agreed to require the hotels to set up job training programs for the local residents to prepare them for jobs in the hotels. In addition, Sea Mountain has agreed to create job training programs for the jobs that will be created both during construction and upon completion. Sea Mountain has agreed to provide a fund and make small business loans to entrepreneurs interested in starting new businesses that will benefit Sea Mountain and the surrounding communities building community to help them compete for work on the project. Sea Mountain has agreed to a policy of hire local first both for jobs and for contracts. It is currently working with the local Sea Mountain has agreed to support the communities effort to create a cultural center. It is unknown at this point the size and scope of the cultural center so no definite terms have been agreed to other than when the scope is determined. Sea Mountain Five has agreed to provide assistance. Educational Programs -Sea Mountain has joined with Jean Michel Cousteau and Ocean Futures and committed to create a "marine center" that will be the headquarters for Ocean Future's Ambassador of the Environment Program. This program will be offered to the children of the local community to educate them about their environment. We aze currently holding two, one week caznps for a total of forty local children and putting them through this program. Honorable Mayor Harry Kim spoke to Your Committee in regards to the measure. Mayor Kim made a verbal request to Your Committee to defer this measure until he and his administration could mediate a meeting with the community, organized groups of the community, the developer, and the administration. This meeting was to come to a for a win-win consensus that would benefit the community, the developer, and preserve Punalu`u Beach Park, Ninole Pond, and adjacent lands as needed. A motion to be defer was made, and seconded, but failed to pass. Your Committee on Finance is in accord with the purpose and intent of Resolution No. 169-07, Draft 3, and recommends its adoption. la Hues NOES w&E Ex Respectfully submitted, FORD X HICA X COMMITTEE ON FINANCE HOFFMANN X IKEDA X JACOBSON X , NAEOLE X PILAGO x DOMINIC YAGO G C YAGONG X FC REP N 129 YOSHIMOTO X ADOPTED: SFP ~ 9 ZOOI