HomeMy WebLinkAboutREP FC 046 02/04/2003 2002-2004RF,PORT OF THE
COMMITTEE ON FINANCN;
DATE: February 4. 2003 Re: Comm. No. 1 17/Kes. No. 3R-03
PLACE: Council Chambers
TIME: 9:10 a.m.
Council Chair and Members
Hawai"i County Council
f Iilo. Hawaii 96730
Your Committee on ~inanee. to which was referred Resolution No. 3R-03, reports as follows:
Kesolution No. 38-03, transmitted jointly with Bill No. 48 by [)ircctor of I~inancc William
Takaba, via Communication No. 117_ dated .lanuary 23, 2003. authorizes the Director of Finance
to negotiate the purchase of lease interest and structures from H. Harada Construction. Inc.
(Harada) located at TMK No. 2-2-037:098.
Meadow Gold Dairies, Inc., (Meadow Gold), desires to expand its operations located at
I 1 Railroad Avenue (identified by'fMK No. 2-1-1225) onto a portion of neighboring land_
which is occupied by the County of Hawai'i~s Department of Parks and Recreation Maintenance
Baseyard (Department). 'the Department currently controls and manages the neighhoring land
as a "County Parks Maintenance Section Site" (identiled by TMK No. 2-1-12:5) via Executive
Order Nos. 2283 and 3825 from the State. That portion of the Departments property proposed
to be transferred to Meadow Gold is mostly vacant, but contains an open equipment
garage/office and hazardous materials shed.
The replacement parcel being considered b~~ the County is a 44,374-sq. tt. State-owned parcel.
which is currently under a 55-year lease (G.L. No. 5-4665) through August 27. 2035 to f Iarada
located across Railroad nvenue from the Departments Maintenance Baseyard. l~he Ieasc on the
Harada parcel is presently up for sale.
Meadow Gold has (1) agreed to pay $129,000 to the County in consida'ation for the County's
agreement to assign its rights under EO 2283 fora 22,01 1-sq. ft portion of~the County's total
1.956 acres, (2) will relocate a Parks and Recreation oftce building located on the proposed
portion of transferred land to a replacement parcel at its own expense, and (3) understands that
the exchange is conditioned upon the County's successful purchase of the replacement property.
It is further the intent of the parties that should the County obtain the assignment of Ieasc fir the
Harada parcel. the State will at a later date convey via I~.xecutive Order that parcel to the County.
The State Department of Land and Natural Resources (DI.NR) has been in deliberations with this
arrangement and is in agreement,
Some members of Your Committee expressed concerns ahout the County's liability over any
existing hazardous w-ante disposal on the I Iarada parcel,
PC Rh'.PORT NO. d6
During its discussion, an amendment was made to Resolution No. aft-03, which changed
H. Harada Construction. Inc. to H. 1larada Contractor. Inc.
For information purposes. Mr. 'I~,yler voted kanalua twice.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 3K-Oi,
Dratt 2, and recommends its adoption.
smc
~rr.~ ~oe:,v sir. ~irti
CHIiNG X
SA FARIK X
A RAKAIiI X
ELARIONOFF X
HOLSCHUH X
JACOBSON X
LEITHEAD-TODD X
RE\~NOLDS X
TYLER X
Respectfidly submitted
COMMI"t`I'EI~: UN FINANCI~.
nARON S.Y. CHUNC CI IAIR
FC RF.POR~ NU. 46