HomeMy WebLinkAboutCOM 0752.001 2008-2010 •',' Nanc E. Crawford
William P. Kenoi ��^ 1�1t%e, y Director
Mayor 7 �\ •d:� i.
Deanna S. Sako
•.,40 - q� ,- Deputy Director •
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County of Hawaii
Finance Department
25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720
(808) 961 -8234 • Fax (808) 961 -8248
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April 6, 2010
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J Yoshimoto, Council Chair and I + n-
Members of the Hawaii County Council _,D cO
Hawaii County Council • " ca
25 Aupuni Street
Hilo, Hawaii 96720
Re: Communication 752, Letters from the Puna CDP Action Committee
Planning Committee Agenda
At the April 2, 2010 Planning Committee meeting, Communication 752 from Planning
Director, Bobby Jean Leithead Todd, transmits a letter from the Puna Community
• Development Plan Action Committee, date February 12, 2010. This letter requests that
Hawai'i Revised Statues and the Hawai'i County Code be amended to allow the County to
take ownership of properties subject to foreclosure for unpaid real property taxes.
While the Department of Finance applauds the efforts of the PCDP Action Committee and
their efforts to "think outside the box ", we recommend against the requested action for a
variety of reasons:
• From a legal perspective, one of the basic tenants in the law of takings is that of just
compensation. Even if the State Legislature did amend the law of taking or eminent
domain, the basic constitutional tenant of just compensation would arise. It is likely
that the proposed taking action would not withstand a constitutional challenge.
• In atax foreclosure sale, the auction process to the highest bidder determines just
compensation to the owner. All excess proceeds of the sale beyond those owed
the County and other recorded lien holders (lending institutions, federal and state
governments, etc.) are remitted to the property owner. In simply taking the property
without such a sale or an eminent domain process, there is no determination of just
compensation and payment thereof to the owner. There is also no opportunity for
other lien holders to receive any proceeds.
• The County has means to acquire property that provides a public benefit, including •
protection of historical or natural resources, through purchase or eminent domain if
necessary. The process involved includes appraisals to insure a fair market value
and compensation to the property owner.
Comm. Na Sag,/ Hawaii County is an Equal Opportunity Provider and Employer Ref. To, iii /0 •
Ref. D top 6 2010.
• . i
Council -PCDP Recommendation
April 6, 2010
Page 2 of 2
• It is in the public's interest to acquire appropriate property for a designated use,
rather than taking random pieces of land that become available through tax
foreclosure. Additionally, taking and holding property in the hope of some future
use or swap for other property removes it from the tax rolls, increasing the tax
burden on other property owners.
• The County taking of property to "discourage speculative re -sale and /or building" is
not appropriate and does not constitute a public purpose.
Due to the constitutional issues, as well as the other reasons identified above, we urge the
County Council against pursuing action to request amendments to the Hawai'i Revised
Statutes or to amend the Hawaii County Code to allow taking of tax foreclosed properties.
Thank you for your consideration of our concerns.
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7 6 4 4
Nancy Crawford
Director of Finance
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