HomeMy WebLinkAboutCOM 0495.009 2008-2010
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Yoshimoto, J
jjILL 101 / COkllM. 4C(s
PI l.oUtJatL
Tammi Whitbeck [twkkcc@aloha.net]
Monday, October 05,20099:16 AM
dyagong@co.hawaii.hi.us; dikeda@co.hawaii.hi.us; jyoshimoto@co. hawaii.I€@Jt\~
donishi@co.hawaii.hi.us; enaeole@co.hawaii.hi.us; genriques@co. hawai~NT'{
kgreenwell@co.hawaii.hi.us; phoffmann@co.hawaii.hi.us ../
Cc: Guy Lam; Donna Leialoha
Subject: Palamanui
Attachments: Letter 10-2-09.pdf
From:
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Aloha Council Members,
Please see the letter attached.
Mahalo,
Tammi Whitbeck for Guy Lam
Palamanui Global Holdings LLC
P.O. Box 9007
Kailua-Kona, HI 96745
Ph: 808-325-0700
Fax: 808-443-0701
10/5/2009
CQm.. No; I/fr:~
Ref. T o:~ P"iiiiafia (;, tl./
Ref. Date .:OCT 07:2iJ09
October 2, 2009
Council Member Brenda Ford
Kana Council Office
75-5706 Hanama Place, Suite 109
Kailua-Kona, HI 96740
Dear Council Member Brenda Ford,
In response to your draft of amendments to Bill 36 and Bill 37 we have no problem with
your amendment to Bill 36, however, rather than respond specifically to changes to Bill
37, I believe it is better to give you a frank assessment of where we are and why we need
these changes.
As you know we are in a serious recession. The housing market is at its lowest point in
50 years.
With that being said, my partners and investors Charles Schwab and Hunt Development
Group agreed to purchase the property several years ago when the real estate market was
vibrant and moving only upwards. Today, prices in West Hawaii are off 30% and
absorption of real estate products are nonexistent and unpredictable.
At our last partners meeting, it was apparent that with the markets downward trend in
pricing and demand, we needed to request changes to some of the ordinances or we
would not be able to proceed until there was a substantial change in market conditions.
We were instructed to apply for changes to those ordinances that made the project
unfeasible.
Mr. Schwab and Mr. Hunt indicated that the University is imp0l1ant to the community
and important to the future success of the project. The $5 million for the University
building is only a portion of the construction that needs to be completed to open the
University. Also needed is approximately $18 million dollars for supp0l1ing
infrastructure. The infrastructure includes a wastewater treatment plant, a water system,
power, the intersection at Queen Kaahumanu Highway, the road to Kaiminani, and the
road from Queen Kaahumanu Highway to the town center. These improvements will not
only allow the University to open but also enable us to sell real estate. The sale of real
estate will allow us to recover the costs of the infrastructure. My point is that much of
the infrastructure must be put in to open the University and is necessary for us to sell real
estate. We also must sell residential and commercial lots.
P,O, [)px 9007 . Kailua.Kuna, Hawaii 967'l5 . PhOI1t': (80B) 325.0700' Facsimile: (80S) 44\,070!
Delaying the construction of Road 1 and the Community Park will give us some
breathing room on the cash flow. I understand that the delay of these improvements may
not fit into the timeframe that some may wish, but we have no choice.
I will assure you we are committed to do what we said we would do, however, timing is
crucial to many aspects ofthis project. !tis my hope that you can suppOli our application
as it is drafted, as any changes to the timeline of expenditures could jeopardize the proj ect
or certainly will delay it indefinitely. At this time it is our intent to proceed with the
project once we have approval of the ordinance changes.
Thank you very much.
Sincerely,