HomeMy WebLinkAboutCOM 0494.010 2008-2010
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H M HPM CUstOM Ml!TAL __"H. HPM TRUSS HPM WOOD PIl0nmON HPM DOORS
P MICHAEL K. FUJIMOTO I PRESIDENT AND CHIEF EXECUTIVE OFFICER
BUILDING SUPPLY 16-166 MELEKAHIWA STREET' KEA'AU, HAWAII 96749 . PHONE: (808) 966-5636 . FAX: (808) 966-7564
MIKEF@HPMHI.COM . WWW.HPMHAWAII.COM
September 15, 2009
Dear Mr. Chairman and Council Members of the County of Hawaii:
On behalf of HPM Building Supply, we humbly request that you vote affirmatively to approve Palamanui's
Requests for Amendments to Zone Ordinance No. 06-105 Project District and Change of Zone Application for 29.9
acres from Project District to MCX-20.
Palamanui is a project that needs our support and encouragement as it is a development that will benefit our
community immensely. Not only will it provide access and infrastructure to the new West Hawaii Center of the
University of Hawaii, but Palamanui will also expend $5 million of its own funds towards the first building of the
Center. The need for a West Hawaii campus in our community has been justified many years ago and given the
severe decrease in State of Hawaii resources, the only way any campus will be built will be through a
private/public partnership like what we have here with Palamanui and the UH system.
In addition, this development will serve to enrich our Island's economic base by expanding our residential and
commercial infrastructure in an environmentally and aesthetically pleasing way. Jobs and career opportunities for
our children and their children in the years to come will be expanded if Palamanui is allowed to move forward.
Since Palamanui first obtained the original property entitlements from the County of Hawaii, the world economy
experienced a severe change for the worst and today, the economic crisis in the US is of greater magnitude than
any time since the 1929 Great Depression. The State of Hawaii and County of Hawaii, like most other areas of
the US have also been severely affected. Unemployment on our Island is now 10.4% and rising. Demand for
residential construction as evidenced by building permits issued has fallen to 2001 levels (see chart below).
County of Hawaii: Residential Building Permits in
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300.00
250.00
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150.00
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MICHAEL K. FUJIMOTO I PRESIDENT AND CHIEF EXECUTIVE OFFICER
16-166 MELEKAHIWA STREET. KEA'AU, HAWAII 96749. PHONE: (808) 966-5636. FAX: (808) 966-7564
MIKEF@HPMHI.COM . WWW.HPMHAWAll.COM
In addition, the country's financial markets are in a state of flux due to the uncertainties that abound. Mortgage
and construction financing is difficult to obtain for most commercial and residential projects and insurance
companies have had to increase their underwriting standards due to the contraction in their asset base.
These events have significantly altered the financial viability of Palamanui. We believe that if these amendments
are not allowed, the economic attributes of Palamanui will diminish to the extent that financing for this project
will not be obtained. If financing cannot be obtained, this project will not move forward and our community will
be worse off.
As we noted earlier, the world has changed since this project was first proposed and entitled. Palamanui will
truly enhance the economic and educational infrastructure of our community and will provide facilities and
buildings that could never be built if we had to depend on State resources. However, the ability of Palamanui to
move forward is now contingent on your approval of these amendments.
We therefore humbly request that these amendments be approved as submitted.
Respectfu lIy,
Michael K. Fujimoto, President & Chief Executive Officer