HomeMy WebLinkAboutCOM 0977.010 2008-2010 CARLSMITH BALL LLP
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November 3, 2010
J Yoshimoto
Council Chair
25 Aupuni Street
Hilo, Hawaii 96720
Members of the Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Forest City Hawaii Kona, LLC
Dear Mr. Yoshimoto and Council Members:
Pursuant to the request of the County Council Members, the following is a summary of
the responses given by the Forest City Hawaii Kona LLC representatives at the Council public
meeting on October 28, 2010 in Keauhou.
• Kamakana Villages is a Community: Kamakana Villages is planned pursuant to
the Kona Community Development Plan ( "Kona CDP ") standards, with a goal of
meeting LEED - Neighborhood Development ( "LEED -ND ") standards. This
mixed -use, walkable community will provide a safe and comfortable place for
residents to live, work, shop and recreate, as well as providing the necessary
school and park facilities to service the needs of the community. Bringing
affordable homes closer to jobs is one of the significant benefits that Kamakana
Villages will contribute to Kona, which will help reduce traffic coming into the
workplaces in Kona from afar.
• Kamakana Villages will provide affordable housing to Kona: HHFDC / Forest
City is proposing a total 2,330 homes in Kamakana Villages. Of that total, 1,169
affordable homes in Kamakana Villages (minimum of 50% plus 1) are proposed
for sale or rent at County of Hawaii affordable levels. The following numbers of
units provides further detail of the target affordable income groups:
• 825 units available at 80% - 100% AMI (35.4% of total project) Comb No. _117• b
• 286 units available at 100% - 120% AMI (12.5% of total project)
• 58 units available a t 120% - 140% AMI (2.4% of total project) t ef• To, u i
R Date N VO4 2010
HONOLULU • HI LO KONA MAUI GUAM SAIPAN LOS ANGELES
J Yoshimoto
Members of the Hawaii County Council
November 3, 2010
Page 2
The target average sales prices for the homes in Kamakana Villages are $256,000 for the
affordable units, and $495,000 for market units.
• Forest City Hawaii Kona LLC ( "Forest City ") has committed to develop
Kamakana Villages: Forest City has entered into a Development Agreement with
the HHFDC which provides a long -term commitment to develop and manage the
Kamakana Villages project, with a requirement that Forest City must cause all
Affordable units in the Project to be completed by April 11, 2023, subject to a
five year extension. Forest City has significant experience in Hawaii with its
military housing initiative, a 50 -year commitment. After providing best efforts to
complete the project, if Forest City decides at its discretion, to withdraw from the
Development Agreement, all undeveloped portions of the property are returned to
HHFDC, and developed portions owned by Forest City must be sold or leased.
This encourages Forest City to get the affordable homes built, because if they do
not, they lose their rights to the undeveloped portions of the land, and developed
portions must be sold or leased to pay off construction loans, reserve
requirements, and Project Costs. If any funds are remaining from these sales of
the fully developed portions, then funds are distributed to pay Forest City's return
on equity invested, Project Reserve account, and then any HHFDC's and Forest
City splits.
• Forest City is not asking for any State or County taxpayer subsidies for traffic
improvements: Kamakana Villages has consistently stated that it will carry its
fair share of local and regional traffic improvements as required by law
for development of the project. The Kamakana Villages traffic impact analysis
report ( "TIAR ") is currently being reviewed for approval by the State Department
of Transportation. The County Department of Public Works has requested
that additional TIAR be submitted during the development process. Those
governmental agencies will establish the requirements for acceptance of the
TIAR, and will also approve the fair share of local and regional traffic
improvements necessitated by development of the Kamakana Villages, which
will be paid for or constructed by Kamakana Villages as required by law.
• The 201H Exemptions comply with the objectives of the LEED -ND, Kona CDP
and Smartcode Principles: Of the total 54 201H Exemptions, 85% (46 of 54) are
required to meet the LEED -ND, Kona CDP & Smartcode Principles; 6
exemptions are for waiver of fees for the affordable units only; and 2 exemptions
are to allow for expedited processing of permit applications. All of the 201H
exemptions will promote the goals contained in HRS Sections 201H -38 and
201H-44, and in Chapter 2, Article 13 of the Hawaii County Code, and none of
the 201H exemptions will be contrary to the minimum requirements of health and
safety. The 201H exemptions have been modified to include County agency
oversight for their respective areas of responsibility.
• J Yoshimoto
Members of the Hawaii County Council
November 3, 2010
Page 3
• Forest City builds quality communities with a long -range vision: No exemptions
are being asked for that reduce the quality of the community or have a negative
impact on health and safety. Quite the opposite, the exemptions allow the project
to be constructed in a timely manner in a way consistent with sustainable
development best practices and the Kona Community development plan.
Kamakana Villages will be a healthy, safe, affordable community in the Heart of
Kona.
Very truly yours,
CARLSMITH BALL LLP
J. c. 0
Steven S.C. Lim&
SSL /lny
cc via email: Hawaii County Council - Council Testimony
Stephen Arnett, Housing Administrator - Office of Housing & Community Development
Bobby Command, Executive Assistant - Office of the Mayor
Frank DeMarco, Director - Department of Environmental Management ( "DEM ")
Michael Dworsky, Solid Waste Division Head - DEM
Dora Beck, Wastewater Division Chief - DEM
Warren Lee, Director - Department of Public Works
BJ Leithead Todd, Director - Planning Department
Chief Harry S. Kubojiri - Police Department
Bob Fitzgerald, Director - Department of Parks and Recreation
Henry J. Tavares Jr., Assistant Chief Area II Operations - Police Department
Chief Darryl J. Oliveira - Fire Department
Ken Melrose
Client
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