HomeMy WebLinkAboutCOM 0942.002 1996-1998
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To: the members of the Hawaii County Council Hilo
Re: PROPOSED UNWARRANTED GIFT OF TAXPAYERS MONEY TO OCEANSIDE 1250.
BY RESOLUTION 30~-98, DRAFT 2. IN the SUM OF $4463 FOR TMK 7-9-12:003
10 September 1998
Some veks ago your Finance Committee considered the first draft of this resolution and I tes-
tified a ainst the ORIGINAL AMOUNT OF $41,105 TO BE GIVEN TO OCEANSIDE as per your
Comm. No. 942, on the attached recommendation of Deputy Finance Director S.K. Schutte who
based this on some scribbled figures in a letter from Mike McCall (also attached), which looks to
me as a falsified government document, while all of that seemed originated by an also enclosed
letter from Oceanside 1250 of 3 June 1998, mentioning the TMK above but no specified amount.
If I remember correctly former council chair Spencer K. Schulte (ending1994) was given a job as
Deputy Finance Director 1 or 2 years ago by our Mayor Yamashiro, whom he had devotedly sup-
ported for many years on the Council. This will boost his council pension. He got an office in the
property tax division and was touted as an expert in tax matters. He is a Kamuela rancher.
Draft 2 with the reduced amount was on your recent Finance Committee agenda and after I test-
ified again against any give-away, you voted (per your committee report FC269, containing some
contorted language stating that per the county code no more than $2766 could ever qualify for
refund) to recommend adopting Draft 2 of the Resolution for $4463. 1 note that Chung and Tyler
voted NO! The YES voters are in accord with the Resolution's "INTENT"to what some people
call STEALING TAXPAYERS MONEY, while others use a milder term of "playing Santa Clause"
with public money, maybe hoping for campaign contributions, now that the elections are upon us.
IN THE FIRST PLACE YOU CANNOT CHANGE ORDINANCES (the County Code) WITH A
RESOLUTION. But you would also be violating YOUR OATH OF OFFICE and possibly state
law, AND in my opinion Charter provisions 3-8, 3-10(c), 3-14, 3-16, 5-3.3(0, 10-1, 10-11.
Just this last April, all of you except Tyler approved, RESOLUTION 244-98, that was followed by
the Mayor and Oceanside 1250 signing a-Development Agreement, and its fourth WHEREAS
reads inter alia (and reflects language in the DEVELOPMENT AGREEMENT, that is a contract):
OCEANSIDE 1250 IS THE OWNER IN FEE SIMPLE AND LESSEE OF CERTAIN
LANDS SITUATED IN HAWAII COUNTY TMK (3) 7-9-12- 03 (all accents added).
The County Code 19-84&85 provides that public lands used and/or occupied on a lease or
otherwise shall be taxed on the fee simple value thereof and private persons shall pay the
taxes thereon at the highest and best value and shall be deemed the owners thereof for
tax purposes. (It is thus not impossible that Oceanside 1250 owes the State lease rent).
All the above shows that no tax credits are allowable to Oceanside 1250 at all and signing of
the Resolution by any Council member could result in IMPEACHMENT for malfeasance and
maladministration under Charter section 12-2.1, and also other court actions in which case they
would be held responsible in person and for abuse of power in their capacity as Council member.
It is interesting to cite Supreme Court case First Trust Co. v. Reinhardt, 3 Haw. App. 589, 655
P.2d 891 (1982), where the buyer of land bears the risk and was solely responsable for his own
mistakes in speculating and determining the value and possible or impossible uses of the land.
7 td. Too PjB'°wf96 Co ~N ~JL
CFA I R AM
r COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION NO. 244 98
(Draft 3)
A RESOLUTION AUTHORIZING THE COUNTY OF HAWAII TO ENTER INTO A
DEVELOPMENT AGREEMENT WITH 1250 OCEANSIDE PARTNERS.
WHEREAS, the Hawaii State Legislature, under section 46-123, Hawaii Revised
Statutes, granted authorization to the County of Hawaii (County) to enact an ordinance
authorizing the executive branch of the County to enter into a development agreement with any
person having a legal or equitable interest in real property for the development of such property;
and
WHEREAS, pursuant to 46-123, Hawaii Revised Statutes, the Hawaii County Council
enacted Ordinance No. 93-37 (Chapter 30, Hawaii County Code) establishing the requirements
for Development Agreements, which ordinance was passed into law on April 27, 1993; and
WHEREAS, pursuant to Section 46-123, Hawaii Revised Statutes, and Chapter 30,
Hawaii County Code, the County adopted rules governing Development Agreements on May 16,
1995; and
WHEREAS, 1250 Oceanside Partners, a Hawaii limited partnership, dba Oceanside 1250
(Oceanside) is the owner in fee simple and lessee of certain lands situated in North and South
Kona, Hawaii County, Hawaii, TMIC (3)7-9-12:03, (3) 7-9-12:04, (3)7-9-12:11 and
(3)8-1-04:03 (por) Property") and more particularly described in Exhibit "A", as modified, of
the Development Agreement (Oceanside Development Agreement), which is attached hereto and
incorporated herein; and
WHEREAS, Oceanside or its related entity, affiliate or subsidiary, plans to develop the
Property and has submitted a development agreement and application to the Office of the Mayor,
and
WHEREAS, Oceanside's development will provide many public benefits to the County
through the zoning, Special Management Area conditions of approval, and the imposition of on-
and off-site development requirements; and
WHEREAS, pursuant to Section 30-5(d), Hawaii County Code, the Mayor, through the
Planning Director, has submitted a final draft of the Oceanside Development Agreement to the
County Council for its action; and
WHEREAS, pursuant to Section 3013(6), Hawaii County Code, the Mayor may enter into
development agreements on behalf of the County; and
i WHEREAS, pursuant to Section 30-5(f), Hawaii County Code, a public hearing was held
by the County Council on March 18, 1998 and continued on March 30, 1998 at the Kona Surf
Resort and Country Club, which is located in the Council district affected by the proposed
development.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that the provisions of the Oceanside Development Agreement are consistent with the
County General Plan, as amended.
BE IT FURTHER RESOLVED that the County Council hereby approves the Oceanside
Development Agreement as submitted in accordance with Section 30-5(d) of the Hawaii County
Code, and as further modified by the County Council.
BE IT FURTHER RESOLVED that the Honorable Stephen K. Yamashiro, or his
designee, is hereby authorized to execute said Oceanside Development Agreement, as modified,
on behalf of the County.
BE IT FINALLY RESOLVED that the County Clerk is hereby directed to forward copies
of this Resolution to the Honorable Stephen K. Yamashiro, Mayor of the County of Hawaii and
1250 Oceanside Partners.
Dated at Hilo, Hawaii this l qt- day of Anil 11998.
INTRODUCED BY:
~/gWNtL-Nt MBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii AYES NOES AILS EX
Hilo, Hawaii ARAK"'° X
CRUNG X
I bereby certify that the forepin{ RESOLUTION was by the Lrrrto,AD•TODD X
rote indicated to the right bereaf adopted by the COUNCIL. of the RAY X
iaty of Hawaii oR April 1, 1998 REYNOLDS X
sANTANGELO X
ATTEST: shtrra X
TYLER j(
YAGONG X
8 1 0 0
Reference C-759.10
OUNTY CLERK & PRESIDING OFFICER RESOLUTION NO. 244 - 98 (DRAFT 3)
OCEANSIDE
12,50
June 3, 1998
W. Gary Kiyota
County of Hawaii
Real Property Tax Division
865 Piilani St.
Hilo, Hawaii 96720-4679
Subject: TMK (3)7-9-12:03
Dear Mr. Kiyota:
For the past several years, Oceanside has unknowingly been assessed and has paid
the real property taxes on the above referenced parcel as it was included with a
TMK that we own. Although we assumed others owned the parcel, the actual
ownership had not been documented. Pursuant to our discovery that we were
paying taxes on the parcel, we asked Hawaii Land Consultants to research the
ownership of the above referenced parcel, and their findings indicate the underlying
title to the parcel is with the State of Hawaii. For your reference, I have attached a
copy of their findings to this letter.
74.5620 A Patani Road Since it has now been established that the parcel belongs to the State, we
respectfully ask that the County of Hawaii appropriately credit or provide a full
Suite 200 refund to Oceanside for the taxes it has paid on this parcel. Please update your
records to show that the State of Hawaii is the owner.
Kailua-Kona, Hawaii
Thank you for consideration of this request, and if you have any questions please
96740-1625 contact me in Kona at 326-2966.
Tel: 808.326-2966 Sincerely,
Fax: 808-326.7713 .
Robert A. Stuit
Director of Planning
Attachment
Stephen K. Yamuhiro E
RECNED
Mayor Harry A Takahashi
'98 JUL 28 Pfd Ito-n°"`
KbIIunfg of paafunu CORP0?,V,-0-4 COUNSEL
DEPARTMENT OF RNANCE-REAL PROPERTY TAXCOUNT`P OF HAWAII
865 Pilsni Saar • Hilo, He"ii %720-4679 Fa (808) %14115 BY
Apprxian (808) %14251 • Clariol (808) %14201 • (808) %14282
July 28, 1998
TO: Harry Takahashi
Finance Director
VIA: Gary M. Kiyota
RPT Administrator
VIA: Gerald Takase
Deputy Corpor t o Counsel
FROM: S.K. Schutte
Deputy Finan ctor
SUBJECT: TM - - -03
It was brought to my attention that the above mentioned TMK should not have
been assessed and charged to Oceanside 1250. A further check of the property
revealed that since April 26, 1990 the 9.42 acres has been assessed to
Oceanside 1250 instead of the State of Hawaii. The tax amount from 1990-91 to
1997-98 tax year is $41,105.00. All of the informatiion to back up this request is
enclosed for your perusal and determination of fact.
4NOWNWOMMMMft
In conclusion, I am recommending that a credit of $41,105.00 be allowed and
that it be applied to future real property taxes of Oceanside 1250.
Enclosure
M G~ Y I
`OJ."
Stephen K Yamashiro
Ham A. Takahashi
MaTOr ;
- Dvenor
S.K Schutte
Deputy
Caunfv of '('~Kufuuii
DEPARTMENT OF FINANCE-REAL PROPERTY TAX
865 PUlani So • HOp. Hs"ii 96720.1679 Fsa (808) 961$415
Appnisen (808) 961$751 • clerical (808) 9161$201 Cd ecz- m (808) 9618282
June 23, 1998
To: Gary Kiyota, R/P Tax Administrator
From: Mike McCall, Valuation Analyst X.-~
Re: TMK 7-9-012-003
Pursuant to the request for correction of ownership of the above parcel, the Mapping
section has completed its review (with assistance from Oahu) and determined that the
parcel is indeed owned by the State of Hawaii. We have corrected our records to show
this change effective immediately.
The assessed value and tax amount for each year back to the 1990/91 tax year are as
follows. I have calculated these only on the 9.42 acres involved.
Tax Year Assessment ia= Ti~o
1990/91 $ 23,300 $ 233 2 eq%
1991/92 23,300 233 i 245-
1992/93 23,300 233 S4 S
1993/94 49,900 499 5/957
1994/95 49,900 499 619 S 7
1995/96 89,700 897
1996/97 89,700 897 IG 791"
1997/98 97,200 972 '9-71
The current owner, Oceanside 1250, has requested a credit or refund of the taxes they
have paid on this parcel. Per our records, they became owners of this parcel 4/26/90. I do
not know how you would like to respond to them.
Attached is all the documentation you received from them, and a copy of the correction
we have made to the ownership.