HomeMy WebLinkAboutRES 232 Draft 01 1992-1994yt.
COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION N0. 232 94
RESOLUTION AUTHORIZING THE MAYOR AND THE FINANCE DIRECTOR OF THE
COUNTY OF HAWAII TO ENTER INTO A SETTLEMENT AGREEMENT WITH
WESTERN FARM CREDIT BANK TO SETTLE THE CLAIMS OF THE COUNTY OF
HAWAII FOR ROLLBACK TAXES BASED ON THE BREACH OF AGRICULTURAL
DEDICATIONS AND REAL PROPERTY TAXES FOR THE LANDS USED BY HAMAKUA
SUGAR COMPANY, INC.
WHEREAS, Hamakua Sugar Company, Inc. (Hamakua), or its
predecessors in interest, entered into 20-year agricultural
dedications, pursuant to Section 19-55, Hawaii County Code, for
thn_ purposes of sugar cane production in 1974; and
WHEREAS, with the closure of Hamakua, certain agricultural
dedications were violated, resulting in rollback taxes,
penalties and interest on those certain parcels; and
WHEREAS, the collection of rollback taxes, penalties and
interest is contingent upon the tax appeal court's recognition
of the breach of the agricultural dedications; and
WHEREAS, the resumption of sugar cane harvesting by Hamakua
may jeopardize the County of Hawaii's claim of breach of the
agricultural dedications; and
WHEREAS, Western Farm Credit Bank (WFCB) acquired the
Hamakua lands as the collateral for its loans to Hamakua; and
WHEREAS, WFCB seeks to settle the claims with the County of
Hawaii by exchanging real property in lieu of its rollback taxes
and any real property taxes that may have accrued prior to the
filing of bankruptcy on August 14, 1992; and
WHEREAS, the Director of Finance is authorized to
compromise real property tax claims with the approval of the
County Council, pursuant to Section 19-3(12), Hawaii County
Code; and
WHEREAS, the Mayor has been involved in exhaustive
negotiations with WFCB to reach a positive solution for all
parties, which has resulted in the attached settlement
agreement; and
WHEREAS, the County Council is authorized to accept real
property on behalf of the County of Hawaii, pursuant to
Article XIII, Section 13-12, Hawaii County Charter; and
WHEREAS, this settlement is in the best interest of the
County of Hawaii in order to resolve the real property tax
appeals with Hamakua and WFCB;
NOW, THEREFORE, BE IT RESOLVED by the County Council of the
County of Hawaii that it hereby authorizes the Mayor and the
Finance Director to enter into the attached settlement agreement
-2-
as a compromise tax settlement, pursuant to Section 19-3(12),
Hawaii County Code, for the real property taxes and rollback
taxes owed by Hamakua/WFCB and to accept the parcels delivered
by Hamakua/WFCB as real property deeded to the County of Hawaii.
Dated at Hilo, Hawaii, this 1st day of June
1994.
GT/03081
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by the
ote indicated to the right hereof adopted by the COUNCIL of
ieCountyofHawaiion June 1, 1994
TTEST: ~ /J _
D B .
COUN I MEMBER, COUNTY OF HAWAII
LL CALL VOTE
AYES NOES ABS Eg
Reference C -1 0 9 $
CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. ~3Z g4