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HomeMy WebLinkAboutCOM 0257.021 2008-2010 Page 1 of 4 Murashige, Laura From: Debbie Hecht [hecht.deb@gmail.comj Sent: Thursday, May 28, 20096:40 PM MY 29 Rf~ 9 .57 To: Council testimony; dikeda@co.hawaii.hi.us; J S Yoshimoto;, Enriques, Guy; Dominc Yagong; Ford, Brenda, Pete Hoffman; enaeole@co.hawaii.hi.us; do_niihi@oo.hawaii:hi,us; Greenwell, Kelly Uu(v i ri= H,i1'/rlti Subject: 2% Land Fund Properties Recommendation & Information on Kawa Bay purchase Attachments: Kaiholena and Pao'o.jpg ALOHA Council Members- In the last few days, I have interviewed the people involved in the process to acquire Kawa Bay. I discovered the following information. I have also listed my recommendations for the priority list on how to spend the $8.9 million in the 2% Land Fund. I have always believed that the best use to maximize the 2% Land Fund money is to attract matching funds. I also believe that properties that are actively being marketed for sale and have matching funds should be given a higher priority. The Open Space Commission does not take these factors into account in their rating process. Please call with questions. Respectfully submitted, Debbie Hecht 989-3222 Recommendation on the 2% Land Fund Property Acquisitions List for 2009 and Information on Kawa Bay Acquisition Summary of the Kawa Bay purchase with the 2% Land Fund- In January 2008, the County purchased the first Kawa Bay purchase, which is 234.3 acres for $1.92 million. This purchase was funded by $1,214,750.00 grant from the State Legacy Lands program, the balance was funded by $705,250.00 from the 2% Land Fund. The 2nd and 3rd properties to be purchased are located 2.5 miles southwest of Sea Mountain at Punalu'u and about 7 miles southwest of Pahala. Ed Olson Trust II is the owner. The effective date of the appraisal was August 26, 2008. Paul Cool, MAI, CRE was the appraiser for John Child and Company. The appraisal was for three parcels: Parcel 6 and 25- $2,320,000. Parcel 5- $1,440,000. The total price+ $ 3,760,000. Here is input from people involved in the process: 1. Daryl Inaba, Department of Finance, County property management- explained that to qualify for matching funds from the US Fish and Wildlife Service a special appraisal done to Uniform Appraisal Standards for Federal Land Acquisitions is required. The department has sent me a copy of the Comm. No. ;L!5 -1.2-11-- Ref. To: T ! ~i''^'''"--J- 5/29/2009 Rof. Dote JUN 0~ 2 2M Page 2 of 4 appraisal. Daryl said that he was filling out the paperwork to see if we need an updated appraisal, since the existing appraisal was done in August of 2008. 2. Ed Olson, Seller- In 2 phone calls with Mr. Olson he consistently said that he wants to get S5 million and he will wait until that can happen. 3. Mr. Ken Fujiyama, (it is unclear what his connection to this real estate transaction, possibly an agent?) who testified at the last hearing, that the County should get another appraisal. He suggested that a regular market appraisal is needed. When I mentioned that an appraisal to standards of the Uniform Appraisal Standards for Federal Land Acquisitions is needed to obtain the matching funds from the US Fish and Wildlife Service for the endangered hawksbill turtle, he said there is $11 million in the fund and the county should just buy it without the matching funds. 4. Council member Guy Enriques said that we should pursue the Kawa Bay property until we hit a dead end. I explained why the appraisal had to be done to Federal standards and that the appraiser said it would probably come in at the same price or lower. He also said the county was filing out the paperwork to order another Federal land acquisition appraisal. He didn't think there had been any land sales in the last year that would affect the appraisal. 5. Craig Rowland, US Fish and Wildlife Service, Honolulu, who explained that the county needs to request another appraisal and in order to receive the $1 million grant for the hawksbill turtle, the appraisal must be to Uniform Appraisal Standard for Federal Land Acquisitions. 6. Paul Cool at John Child and Co., the appraiser who did the August 2008 appraisal on the property said: He was unsure if an update was required, he said he would need to look to see if there were any new sales in the area, if there were none, that the appraisal would probably come in at the same amount or less, because of the economy. He thought the Multiple Listing statistic that land values were down 30% island wide would be a factor in the valuation. 7. Kawika Burgess from the Trust for Public Lands is researching matching funds for Pao'o, Kaiholena and Puapua'a. 8. John Replogle, life-long resident of Ka'u, member of the Friends of the Park group who cares for Honuapo and former Chair of the Open Space Commission: "That existing purchase regulations prevent the purchase from taking place at this time, but Kawa should not lose it's status as #1 property, all that's changed is the economy." (NOTE: there is a federal law that states that governments cannot pay more or less than the appraised value). My conclusions and recommendations: 1. Only $1,615,250. has been spent from the Public Access and Open Space Preservation Fund (the 2% fund) since it inception in November of 2006. There is currently $8,897,529.00 in the fund. 2. We are wasting time on Kawa Bay and may well lose the 3 properties that are currently listed with real estate brokers for sale- Pao'o, Kaiholena and Puapua'a. 3. Ed Olson wants $5 million; he is firm on this figure. 4. Paul Cool the appraiser said he thought the value would remain at $3.7 million or less because of the economy. He said since the MLS statistic for land island wide is -30%, that statistic may come into consideration. 5. This 500- acre property would be a great acquisition to add to Honuapo Park, the approximately 500 acres is coastline property from Honu'apo towards Volcano. 6. The County should leave the door open and do another appraisal when the economy rebounds. The County already has 250 acres in Ka'u, which is unable to be used by citizens, that is being occupied by 5/29/2009 Page 3 of 4 Uncle Abel, who says it is his property. The county also purchased Honu'apo in 2006 in Ka'u. It seems fair to use the funds remaining in the 2% Land Fund for properties in other parts of the county. 7. My recommendation is honor the work of the Open Space Commission and use their list. Since Kawa Bay does not have a willing seller, keep it as the 41 priority but move on through the list of properties that are actively for sale, skipping over Waile and Honolulu landing since as Council member Naole has pointed out, they are not for sale. This would mean that Pao'o would be next on the list. I highly recommend combining Kaiholena and Pao'o because they are adjacent. OHA has been contacted for matching funds for Pao'o and Kaiholena and NOAA has been contacted for Pao'o, I think that grant application should be expanded to include Kaiholena. 8. Pao'o and Kaiholena together would protect 263 acres of the north Kohala Coast with significant cultural resources and protect the reef and important fishing grounds. Because there is little rainfall here, there is little plant life to hold the soils, which blow into the ocean at times of high winds. In Kawaihae runoff from grubbing and grading has caused sediment to kill of the coral and the fish populations have diminished because of loss of food sources from the reef. See letter from Aquatic Resource specialists included in this email. 9. These 263 acres at Pao'o and Kaiholena would be an integral part of saving this whole coastline because of the existing state parks. A map is attached for you to understand the location of the two parcels that have been proposed for acquisition now. 10. Again only $1.6 million of the fund has been paid out since November of 2006. Having this fund has enabled the county to obtain $1.214 in matching funds. The Waipio purchase was made with $910,000. of 2% Land funds. 11. ALL OF the PROPERTIES COULD OPTIONED FOR ONE YEAR IF THE COUNTY WOULD FORGIVE THE PROPERTY OWNERS THEIR PROPERTY TAXES. THIS WOULD ENABLE THE COUNTY TO APPLY FOR MATCHING FUNDS AND DO THE NECESSARY DUE DILIGENCE STUDIES. 12. Even if the Kawa appraisal has been ordered, I understand that the Pao'o property is also under negotiations at this time. The acquisition of the Kaiholena property could be started too, using forgiveness of the property taxes as a means to purchase an option on the property for a year to enable the county to get an appraisal and apply for matching funds. 13. The Puapua'a property owners could also be approached with an option to purchase for forgiveness of property taxes so that they county could get an appraisal and apply for matching funds. Respectfully submitted, Debbie Hecht, campaign coordinator, 2% Land Fund, real estate broker (30 years) THE FOLLOWING LETTER IS FROM DR. BILL WALSH AND SARA PECK, BOTH AQUATIC RESEARCH SPECIALISTS: Email to: Donald Ikeda <dikeda@co.hawaii.hi.us>, Dennis Ishi <donishi@co.hawaii.hi.us>, Emily Emily Naeole<enaeole@co.hawaii.hi.us>, J Yoshimoto<jyoshimoto n co.hawaii.hi.us>, Mayor Kenoi <cohmayor@co.hawaii.hi.us>, Brenda Ford<bford@co.hawaii.hi.us>, <counciltestimony@co.hawaii.hi.us>, Dominic Yagong<_dyagonga co.hawaii.hi.us>, Kelly Greenwell<kgreenwell co.hawaii.hi.us>, Guy Enriques<genriques@co.hawaii.hi.us>, Pete Hoffmann <phofflnann@co.hawaii.hi.us>, hecht.deb _ gmail.com> Date: 5.15.09 Subject: Resolutions 105 and 106 Prioritization of properties for acquisition with 2% funding. Properties include: 263 acres at Kaiholena and Pao'o and the preservation of aquatic resources 5/29/2009 Page 4 of 4 Dear Mayor Kenoi and County Council Members, In October 2006 a localized rain event in the North Kohala area produced run-off borne sediment that covered a well-developed and mature coral reef from the shoreline out to a depth of at 65 ft in at least one area. This sediment smothered and killed substantial amounts of coral particularly at Pohakuloa Gulch, Keawewai Gulch, and Kaiopae Gulch, all gulches adjacent to land developed within the last 20+ years. These reef areas still have not fully recuperated since the 2006 event. Therefore habitat for fish, invertebrates and other marine life associated with a healthy reef ecosystem has been impacted and a productive reef area has been destroyed for an indeterminate time. Subsequent aerial reconnaissance by the Hawaii Department of Health (DOH) and the Division of Aquatic Resources (DAR) revealed numerous examples of egregious land use practices in the mauka watersheds above these heavily sedimented areas. Ongoing long term coral reef monitoring at DAR's West Hawaii sites (1999 to 2007) has also documented substantial declines in live coral cover in North Kohala from 1999 to 2007. For example at Kamilo Gulch live coral has declined by 14% while it has declined by 17% at Waiakailio. This is obviously not a healthy trend and is certainly reason for concern. The 2006 sedimentation event may well have contributed to the overall loss in coral coverage in North Kohala. By virtue of its jurisdiction over land use practices, grubbing, grading and other development related rules, Hawaii County has a responsibility to island residents to protect our coral reef ecosystems in order to maintain subsistence fishing, their economic value and our quality of life. The fragile nature of lands mauka of the ocean all along the North Kohala coast must be considered in future planning, and probably should not be developed for extensive human habitation or used for ungulate grazing. These lands should be revegetated with plants appropriate for the area and in harmony with the Hawaiian field system that once covered much of these areas. Mahalo for your concern and attention. If you have further questions, please contact us. Sincerely, Sara Peck, M.Ed., PO Box 56, Holualoa HI 96725, 769-4278 Bill Walsh, Ph.D., 88-1610 Mamalahoa Hwy., Captain Cook, HI 96704,328-8041 Debbie Hecht P.O. Box 4148 Kailua-Kona, HI 96745 (808) 989-3222 The Hawai'i state motto: "The life of the land is perpetuated in righteousness". 5/29/2009 Key Purchases To Preserve North Kohala Coast P~eservir`g Open Space View Hanes l'~-.! Natu~altS Cuftciial Resources: Sustainable. r f"' Eco ~dhUC °~2ecreaGonal Activities in Perpetu4y r eon, 1. Kukuipahu-Haena s Area to Be 2. Mahukona ,Orr Preserved Makai of the ` Highway - I.S T. 3. Pao'o~ 13.5 Miles { -YS. r Y+ 1 < v- 4. Kaiholena 1 ~ { Si ~i / t` .mot A4 ~14 . No Immediate r ° Plans To Develop 41 ' Ana P' ter S t,~ ''q~ ° l I ! u ° r ~ ELI ~ y ~ i ~ ~ k Y J~ r f f t Mviajor,Roads -LL a=gState Lands ~ Y V ° T t r a h 1 Y R ; _ .4 Four Land Purchases 1 1r ~ ~ ~f T4 I 1 Kukuipahu-Haena 2 ~r 1 F1 WR Mahukona } 3 © Pao'o ` g - f t - ` F'. k. 0 u Q Kaiholena»;. 6r ~