HomeMy WebLinkAboutCOM 0488.025 2008-2010
N'V Os N
~9'•;~;:" Nancy E. Crawford
William P. Kenoi LIB;,
Director
Mayor
Deanna S.Sako
•ij+,' Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808) 961-8234 Far (808) 961-8248
August 31, 2009
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J Yoshimoto, Council Chair and
Members of the Hawai'i County Council
Hawai'i County Council -
25 Aupuni Street w
Hilo, Hawai'i 96720 C3
Re: Finance Committee Communication 488 (Bill 132) - Amend Hawai'i County Code
Chapter 2, Article 19 - Council Approval of Land Transactions
The referenced bill for an ordinance to amend Chapter 2, Article 19 would add
provisions to Sections 2-112 through 2-114 to require final approval by County Council
of any dispositions of real property that is ten acres or larger. The bill states that
approval will be based on the bid price, the intended use of the land and the identity of
the prospective buyers.
This legislation essentially allows the Council to pick and choose who can buy the
property and what the buyer can use it for. At best, this additional requirement will be a
deterrent to bidders and will result in reduced bid amounts or no bids at all. At worst it
has the potential to raise discrimination issues.
Under this proposed change, after the winning bidder(s) has made a deposit to secure
the bid they must wait for approximately six weeks for the Council to approve their
purchase. They will be evaluated by the County Council to determine if their use of the
property will be acceptable and if they are personally acceptable. Additionally, the
Council may decide the winning bid is too low and not allow the sale at all. Presumably,
if the bid amount is adequate but Council does not approve the sale for other reasons,
the second highest bidder would then be a candidate to purchase the property, and the
process would be repeated.
COMM. No.
Ref. To:
Ref. Date_SEP 01 2009
Hawaii County is an Equal Opportunity Provider and Employer
County Council - Bill 132
August 31, 2009
Page 2 of 2
Zoning and land use should be adequate to dictate the use of real property. If there are
additional conditions or deed restrictions for the sale of real property, the conditions
should be set in the original authorizing resolution and made a part of the information
that is published in the sales marketing and notification to prospective bidders.
Restrictions on the use of the property will have a dampening effect on bids, but if the
bidders know that their ability to purchase the property will be based on the price they
offer rather than other considerations and that the sale will proceed quickly they will still
participate.
Thank you for the opportunity to provide input on this important legislation.
Nancy Crawford
Director of Finance