HomeMy WebLinkAboutCOM 0452.001 2008-2010DOMINIC YAGONG
Council Member
Council District 1
Mailing Address:
(Former County Bui[din~
25 Aupuni S[ree[
Hila, Hawaii 96720
Hawai `i County Council
County of Hawai `i
August 3, 2009
Phone: (808) 96/-8264
Fax: (808J 961-8912
Email: dyagong(a~co.hawaii.hi. us
Business Address:
333 Kilauea Avenue, Second Floor
Ben Franklin Building
Hilo, Hawaii 96720
TO: J Yoshimoto, Chair ru
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and Members of the Hawaii County Council ~,~ c
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FROM: Dominic Yagong, Council Member~yLti ~ ,
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RE: Proposed Amendment to Resolution 216-09 _.,
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Please find attached proposed amendment to Resolution 216-09. The amen dment would,addlhe word
"and" after the semicolon in the eighth WHEREAS, and add six (6) WHER EAS clauses, pronto the
NOW, THEREFORE, BE IT RESOLVED clause to read as follows:
"WHEREAS, it is the desire of the County Council to sell so much of
these properties as is necessary to insure the revenue needs of the County are met
and to return the former Hamakua Sugar Company, Inc. lands to the tax rolls and
to a more productive use; and
WHEREAS, the sixteen (16) properties delineated in EXHIBIT "A" totals
up to 737.302 acres and would be the largest and most significant county owned
land sale transaction attempted by the County Finance Director and Mayor of the
County of Hawaii; and
WHEREAS, in March of 2005, the County of Hawaii sold 660 acres of
public lands in Hamakua for $1.6 million. During the same 2005 year, the selling
price of the 660 acres was listed for $4.9 million. In February of 2007, the same
property selling price rose to $6.9 million. Today, the former public lands selling
price is $12.5 million, which is a 681% increase over the asking price of the
County of Hawaii; and
WHEREAS, the people of the County of Hawaii have the rieht to provide
public input into the IonQ-term disposition of property owned by the residents of
the Big Island as well as insuring a fair and equitable price for anypublic land
holdinQS; and
Serving the /nterests of the People of Our /stand
Hawaii County is an Equal Opportunity Provider and Employer
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Ref. To: ~'t`~;.ensad -._~_.-
Ref. Uate
WHEREAS, the execution and timing of selling these public properties
would eliminate the opportunity for public input and plannin tg hrough the
Hamakua Community Development Plan (CDP), which was funded and adopted
unanimously by Mayor Kenoi and the Hawaii County Council; and
WHEREAS, having a transparent process prior to executing any deal with
prospective buyer(s) would insure the public that government is acting in the best
financial and land use interest of the people; and
WHEREAS,. the Council will allow the Administration to proceed with
disposition of real property as delineated in EXHIBIT "A" in fee simple, by
public auction or sealed bids; however, the intended use of the public land by the
potential buyers(sl shall be heard through a resolution submitted by
Administration to the Hawaii County Council prior to consummating any deal or
transaction with a prospective buyer(s);"
The amendment would also add two BE IT FURTHER RESOLVED clauses, and deletes the word
"FURTHER" and replacing the word "FINALLY" in the last BE IT RESOLVED paragraph, after the
NOW, THEREFORE, BE IT RESOLVED clause to read as follows:
"BE IT FURTHER RESOLVED, that the administration shall submit to
the Council a resolution outlining the intended use of the public lands as proposed
by the prospective buyer(s), as well as the a rg eed upon price for the public
propertyprior to consummating any deal or transaction.
BE IT FURTHER RESOLVED, that the aforementioned resolution must
be approved by the Council before the Finance Director of the County of Hawaii
proceeds with finalizing any land transaction with prospective buyers on parcels
delineated in EXHIBIT "A"."
BE IT [~'r TD~;~] FINALLY RESOLVED that copies of this resolution be
transmitted to the Honorable William P. Kenoi, Mayor of the County of Hawaii, and the
Director of Finance."
Material to be deleted is bracketed and stricken through; material to be added is underlined.
A draft copy of Resolution 216-09, Draft 2, is attached.
Thank you.
DY/na
Att.
RESOLUTION AUTHORIZING THE SALE OF CERTAIN FORMER
HAMAKUA SUGAR COMPANY, INC. LANDS NOW UNDER COUNTY
OWNERSHIP
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`L•
WHEREAS, in 1994, the Council of the County of Hawaii agreed to accept
approximately 4,400 acres of land by Commissioner's Quitclaim Deed as a settlement for
retroactive real property taxes among Western Farm Credit Bank, the County of Hawaii and
Hamakua Sugar Company, Inc.; and
WHEREAS, the Council of the County of Hawaii, pursuant to Resolution No. 196-97,
adopted on January 16, 1998, requested that the Mayor develop a disposition plan for the former
Hamakua Sugar Company, Inc. lands now under County ownership; and
WHEREAS, on May 1, 1998, the Council approved Resolution No. 267-98, which
requested the approval of a disposition plan that proposed land exchanges with private
landowners on avalue-for-value basis in order to expand or improve the Ho`olulu Park Complex,
Kahalu`u Beach Park parking, Honoli`i Beach Park, and the Ahalanui Park, and to construct the
proposed Kalopa Sand Gulch Bypass Road, a new Kaiwiki water tank and the Kaiwiki Road
realignment project and other lands as they may become available or may be necessary; and
WHEREAS, the Council approved Resolution No. 309-98 on August 17, 1998, which
requested the authorization to lease the former Hamakua Sugar Company, Inc. lands now under
County ownership for diversified agriculture, eco-tourism and pastoral uses by negotiations; and
WHEREAS, written and oral public testimony received by the Council supported an array
of disposition methods, including sale of the County parcels, lease of County lands for a variety
of purposes, exchange of County parcels for purposes proposed in Resolution No. 267-98, and
sublease to the State of Hawaii for agricultural purposes; and
WHEREAS, the Council of the County of Hawaii, by Resolution No. 333-98 (Draft 2), as
amended, which was adopted on October 7, 1998, requested that the Mayor reformulate a partial
or total disposition plan in accordance with the provisions of Chapter 2, Article 19, Hawaii
County Code, for the former Hamakua Sugar Company, Inc. lands now under County ownership.
Said plan to include but is not limited to the following:
To lease or sublease a portion of the important agricultural lands for
diversified agriculture, eco-tourism, and pastoral uses.
2. To exchange a portion of these lands on avalue-for-value basis for purposes
of expanding existing County-priority parks, roads, water projects or other
infrastructural systems or facilities.
3. To sell a portion of these lands.
WHEREAS, the County Council adopted Resolution No. 113-99 on September 9, 1999,
which authorized the Finance Director to dispose/exchange former Hamakua Sugar Company,
Inc. properties with properties listed in that resolution; however, no disposition and/or transfer
was ever completed; and
WHEREAS, the County Council adopted Resolution No. 161-02 on
January 24, 2002, which directed the Finance Director or authorized representative to proceed
with the sale by auction or negotiations for land exchange on avalue-for-value basis, of so much
as may be necessary of the former Hamakua Sugar Company, Inc. lands now under County
ownership; and
WHEREAS, the County Council adopted Resolution No. 209-02 on
June 19, 2002, which further approved of and directed the Finance Director or authorized
representative to proceed with the sale of the subject properties through sale by negotiation, as
long as the public interest demands it, pursuant to Section 2-114(a), Hawaii County Code, in
addition to other previously authorized methods of disposition; and
WHEREAS, the County Council adopted Resolution No. 60-07 on March 9, 2007, which
requested postponement of the pending sale by auction of TMK's: 4-3-07:01, 4-3-09:19, 4-3-
09:24, 4-3-11:01 and 4-3-11:02, Pa`auilo, Hamakua, Hawaii until formulation of a land
disposition plan to meet affordable housing needs; and
WHEREAS, the County Council adopted Resolution No. 202-07 on May 16, 2007, in
which the Council requested that the Mayor abandon the public auction of the Hamakua lands in
Pa'auilo identified as of TMK's: 4-3-07:01, 4-3-09:19, 4-3-09:24, 4-3-11:01 and 4-3-11:02; and
WHEREAS, the County Council adopted Bill No. 36, Draft 4 creating the County
operating budget for Fiscal Year 2009-10, which was further signed into law by the Mayor on
June 10, 2009 and identified as Ordinance 09-64, and which contained an item for revenue from
Sale of Real Property in the amount of $8,210,000; and
WHEREAS, Chapter 2, Article 19, Sections 2-112 and 2-113 of the Hawaii County Code
provide that the Council may, by resolution approved by a majority of its members, direct the
Director of Finance to dispose of real property in fee simple by public auction or sealed bids,
respectively; and
WHEREAS, it is the desire of the County Council to sell so much of these properties as is
necessary to insure the revenue needs of the County are met and to return the former Hamakua
Sugar Company, Inc. lands to the tax rolls and to a more productive use; and
WHEREAS, the sixteen (16) properties delineated in EXHIBIT "A" totals up to 737.302
acres and would be the largest and most significant county owned land sale transaction attempted
by the County Finance Director and Mayor of the County of Hawaii; and
WHEREAS, in March of 2005, the County of Hawaii sold 660 acres of public lands in
Hamakua for $1.6 million. During the same 2005 year, the selling price of the 660 acres was
listed for $4.9 million. In February of 2007, the same property selling price rose to $6.9 million.
Today, the former public lands selling price is $12.5 million, which is a 681% increase over the
asking price of the County of Hawaii; and
WHEREAS, the people of the County of Hawaii have the right to provide public input
into the long-term disposition of property owned by the residents of the Big Island as well as
insuring a fair and equitable price for any public land holdings; and
WHEREAS, the execution and timing of selling these public properties would eliminate
the opportunity for public input and planning through the Hamakua Community Development
Plan (CDP), which was funded and adopted unanimously by Mayor Kenoi and the Hawaii
County Council; and
WHEREAS, having a transparent process prior to executing any deal with prospective
buyer(s) would insure the public that government is acting in the best financial and land use
interest of the people; and
WHEREAS, the Council will allow the Administration to proceed with disposition of real
property as delineated in EXHIBIT "A" in fee simple, by public auction or sealed bids; however,
the intended use of the public land by the potential buyers(s) shall be heard through a resolution
submitted by Administration to the Hawaii County Council prior to consummating any deal or
transaction with a prospective buyer(s);
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII, through its authority under Sections 2-I 12, 2-I 13, of the Hawaii County Code, that it
approves of and directs the Finance Director or authorized representative to proceed with the sale
by auction or sale by sealed bid, of so much as may be necessary of the former Hamakua Sugar
Company, Inc. lands now under County ownership which are delineated on the list labeled
Exhibit "A."
BE IT FURTHER RESOLVED, that the administration shall submit to the Council a
resolution outlining the intended use of the public lands as proposed by the prospective buyer(s),
as well as the agreed upon price for the public property prior to consummating any deal or
transaction.
BE IT FURTHER RESOLVED, that the aforementioned resolution must be approved by
the Council before the Finance Director of the County of Hawaii proceeds with finalizing any
land transaction with prospective buyers on parcels delineated in EXHIBIT "A".
BE IT FINALLY RESOLVED that copies of this resolution be transmitted to the
Honorable William P. Kenoi, Mayor of the County of Hawaii, and the Director of Finance.