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HomeMy WebLinkAboutCOM 0897.003 1996-1998 ©00 Hawaii Carpenters Union United Brotherhood of Carpenters and Joiners of America, Local 745 July 1, 1993 Chairman James Arakaki and Members of the Hawaii County Council 25 Aupuni Street ^ r RECEIV® Hilo, HI 96720 a. Dote___- County Council RF: Resolution 289-98 Chairman Arakaki and Members of the Council, In 1988, Kaupulehu Development was allowed rezoning on its property with a stipulation that it provide 60% affordable housing at a monetary evaluation of $5,771,520 or $8,094 per unit. In addition, Ordanance 88-157 stated that "The affordable housing requirement shall be implemented concurrently with the completion of units for the resort/residential project.". Now we fast forward ten years and we can see the resort in full operation with millions of dollars of high priced homes and condominiums under construction. Has even one affordable housing unit been built yet? I don't think so. In January 1998 this Council passed, over the Mayor's veto, Ordanance 98-1 (Rill 171) which effectively reduced affordable housing requirements from 60% to 100. It further reduced the in-lieu monetary schedule from $8,094 per unit to $4,720 - nearly a 50% reduction. This change not only represents nearly a $4 million loss of potential revenue to the County but is also a major windfall for Kaupulehu Development. Although I realize STATE FIPADQUARTERS & BUSINESS OFFICES CHARM. Nu. " _T D3 OAHU: 1711 IIoaghtaJ m); til . 1h,nAulu, Il S,,096817 • Ph (80h) S47--61 N, (SOS) 841 0100 Cr KAUAI OFFICF: Ku hu. Mcdunl C tr. Lildg, 3-3°9S KUhw Hm v-hurto 2U I, I Ih uo, Kauai 967M, • Ph (808) 24'-8111 g d+(NQ4 MAUI of01CG: 730FlookL h, St, A4., ilnAu Maul967111 • Ph. (8O8)242-(,S91 Pa, (808, 242.-bhp} PrftentF ou? I~ HILO0H`K E.: 72' Klaus lac, I IOo, -la wou n6720 • Ph (808) 9l'-!iF95 ray BII81 y3-`~85~G W. ~ IN t 1 KONA On WE 7; 1261_u napulc K,,A, Ka,h,a-knna, I L,,L,,, 96.40 • Ph- (SOS) 1") 7T5 Fax (808) 126-937( ¦N 0 11 4m 126-9 7( 1')r~ WL 301M Hawaii Carpenters Union United Brotherhood of Carpenters and Joiners of America, Local 745 - 2 - our economy has resulted in a depressed real estate market, I find it extremely difficult to believe that housing costs have declined 50% since 1988. In all fairness, I could concede that 98-1 is acceptable if it is applied to new projects in an effort to stimulate development and our economy. However, in its current form 98-1 states that "Any affordable housing condition or portion thereof in a prior zoning ordanance which has not been fully satisfied as of the effective date of this policy may be re-assessed, to the extent it has not been fully satisfied, pursuant to this policy upon the initiation of the person or entity which is legally required to satisfy such condition." (Section 11-8). When you read 98-1 as it applies to Kaupulehu Development, you realize that not only has the County failed to enforce the conditions of the re-zoning, but now we have rewarded them for not living up to their commitments to our community by drastically reducing their financial obligations. When Mayor Yamashiro presented his budget to the Council he made it very clear that the County will face a $14 million deficit in 1999. When I think of 98-1 and its impact on Kaupulehu Development, the Hapuna Prince, the Ritz-Carlton and I don't know how many other developments, I think I get a better idea about how the County ends up with this huge deficit. In an election year I think this issue has the potential to become a focal point in many of the campaigns for County Council. I certainly hope that each Council member is willing and able to STATE HEADQUARTERS & BUSINESS OFFICES OAHU: 1311 I to ughla 7l m,~ It. I ionh Ju, l la ail vbril7 I'll F08)447 ;761 1 ue 180H1 ri-I I-[Null KAUAI OFFICE: Kuh,o Nledl,al ( t, EId,,1-32"s Koh,,, I1,,, Su rtr201 lhl., Kau...96766 • I'1, (808)24q-8SI I I'ax (808) 239-8'11 i NIAUIOFFICE: 130 Hookah,';I, %,lduku A1,n ii 96791 I'll 1808)-'121,891 1-(8(18)242-,,x111 HILO OFFICE: 525 Kdaora -A~, , I ldo, 1 Lnvau 14,720 I'll (80S)9 SS-8575 I'ex (SORT 16, 8,76 KONAOFFICE: 75-121Lunapuh, 12,,ad, Knllua-hon a, t Lnvalf 96740 • IT (HIIN)32'+-7155 Fax(808)126-9,171, _Q~ca- EDO Hawaii Carpenters Union United Brotherhood of Carpenters and Joiners of America, Local 745 - 3 - explain to their constituents why they returned millions of dollars to large developers but will also expect their constituents to accept and somehow fund a $14 million deficit in 1999. Not only do I believe that Resolution 289-98 should be rejected, I think this Council should also revisit Ordinance 98-1 (Hill 171) and make it effective for new projects only. By the way, on behalf of my members I'd like to thank Council members Leithead-Todd and Yagong for voting against 98-1: Sincerely, OHN M. DA AS (/Field Representative Hilo Division STA i'E HEADQUARTERS & BUSINESS OFFICES OAHU: 1311 I Lnlghtad mg,a1 I Ionn1o 10, 1lJ waii 96517 Ph. (SOS) 547-9'61 Fae (8081841-0 400 KAUAI OFFICE: Kuhl, Mcdl.al ('I, 131d,, 3-1211, Kuhlo I1, v, 5u,k 201,1 huo, Kauai 06766 • 11, (SON, 245-8511 ax (808) 245-5713 MAUI OFFICE: 3 t011oo Adhl',1, wa'duku Mau( 96793 Ph .(808)342-libel 1,,(808,212 ,"R HILO OFFICE: 528 KIauua 1. a, I Wo, I low ail 90720 • Ph. (SON) 935-853-5 1,. (808) L131 S,, 6 KONA OFFICE: 73-1261.Imap1111 R, Ad, Kailua-Kona, I L ti. al( 00'40 • Ph (SOS) 120-7359 Fax (SOH) l'-1-9176