HomeMy WebLinkAboutCOM 0936.014 2008-2010 • 50 E. Puainako Street
D. Hilo, Hl 96720-5294
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October 18, 2010
Mr. Guy Enriques
Council Public Works Committee chair
25 Aupuni St.
Hilo, HI 96720
Subject: Bill 298; Revisions to Chapter 27 Flood Management, Hawaii County Code
As a landowner in downtown Hilo, K. Taniguchi Ltd. supports Bill 298. The Bill proposes
revisions to Chapter 27, Article 2 and Article 4 of the Hawaii County Code to remove the 50 foot
"Buffer Zone" and changing the definition of "substantial improvements" from 50% of the
market value of the structure every 10 years to every 3 years. Though we believe the 2006
amendments to Chapter 27 were made in good faith, the unintended consequences created an
unreasonable burden on to us and other landowners in Hilo and elsewhere. K. Taniguchi Ltd.,
sister company to KTA Super Stores, has experienced these impacts first hand.
As you may recall, the structure that used to be at the corner of Mamo and Keawe Street (Elsie's
Fountain, Panda Imports, Flipside II) was in poor physical shape and became a liability issue for
K. Taniguchi, Ltd.. After investigating the possible renewal of the structure many years ago, it
was determined that it was not practical to do so. In 2008, we determined the structure was
unsafe and the decision to demolish was made. Realizing that this action would expose the
unfinished south facing portion of the Downtown KTA store, we needed to install a new exterior
face and entry, in addition to parking improvements where the old structure once stood.
Prior to 2006, the special flood zone ran through our makai parking lot and did not impact our
downtown store building. The 50 foot buffer, however, placed our store into the special flood
hazard area. This triggered a long and complex process, adding tens of thousands of dollars in
cost and months of time to the process of what we thought would be a simple project.
Furthermore, we do not believe that there are any new safety benefits from arbitrarily adding
another 50' to the existing FIRM inundation line and would ask that this be eliminated.
K. Taniguchi, Ltd. learned firsthand what the impacts of 2006 amendments to Ch. 27 are and we
are concerned that they will have an ongoing impact, not only on our business, but on the ability
of other businesses in downtown Hilo to invest in their buildings and maintain a vibrant
commercial area for the broader community to use and appreciate.
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Ref. To, AP 14
Roc Date OCT ° 1
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a 50 E. Puainako Street.
LTD. Hilo, Hi 96720 -5294
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Mr Guy Enriques
Ocober 18, 2010
Page 2
The other complicating piece to our project was that KTA Super Stores had been investing
incrementally in its downtown store for over a decade. Monies spent on necessary electrical and
refrigeration upgrades and other improvements all accumulated under the revised Chapter 27
definition of "substantial improvement" and threatened to make the needed improvements to the
exterior of the store unachievable. We commissioned an additional appraisal of the building that
just barely allowed us to proceed with the needed renovations, but any future investments to the
downtown store will need to wait until the 10 year time frame has passed. A reduction in the
substantial improvement timeline to a pre 2006 level would go a long way to enable future
improvements be made to maintain store operations in downtown Hilo in a safe and competitive
fashion.
Thank you for the opportunity to comment on this matter.
Sincerely,
/ / 1 :1 96e /
Andrew A. T. Chun
Vice President
K. Taniguchi Ltd
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