HomeMy WebLinkAboutREP FC 031 03/15/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: March 15, 2011 Re: Comm. No. 99 /Res. 38 -11
PLACE: Council Chambers
West Hawai`i Civic Center
TIME: 2:05 p.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Resolution No. 38 -11, reports as follows:
Resolution No. 38 -11, transmitted by Councilmember Dominic Yagong, dated February 14,
2011, rescinds Resolution No. 216 -09 and authorizes the Finance Director or authorized
representative(s) thereof to invite proposals for lease by negotiation of certain former Hamakua
Sugar Company, Inc. lands now under County ownership.
Resolution No. 216 -09, adopted by the County Council on November 18, 2009, approved and
directed the Finance Director or authorized representative to proceed with the sale by auction or
sale by sealed bid of the 737.302 acres of Hamakua Lands, consisting of 17 parcels ranging from
12.8 to 109.72 acres. The Administration had grouped the parcels into four bundle parcels with
four sealed bids that were opened on March 31, April 7, April 14 and May 24, 2010. There were
no offers received for the first two bid openings. The Administration cancelled the third and
fourth.
Retaining the ownership of these parcels will enable the County to lease the land out for the
purpose of diversified agriculture, renewable energy development, pastoral use, eco- tourism,
workforce housing, and agriculture education and training. The leases shall be conditional to
these uses, and the land shall not be used for research, development, production or cultivation of
genetically modified organism (GM) products.
The Finance Director or authorized representative(s) shall evaluate and select the best proposal
within 120 days of the adoption of this resolution and submit a resolution to the Council
delineating the proposal. The Council shall then have 60 days to act on the resolution, from its
date first appearing on an agenda of the Council or one of its Committees.
Council Chair Dominic Yagong seeks the support of the Council for this Resolution.
During discussion Your Committee was informed by Mr. Yagong that these parcels are located
in Pa'auilo and not in Kapulena. Mr. Yagong stated that during community meetings held in the
district, the public expressed an interest placing these lands into production via leasehold, with
the County retaining ownership. Also, he said this proposed resolution provides an open and
transparent process to the public.
FC Report No. 31
FC -31 Page 2 March 15, 2011
Director of Finance Nancy Crawford and Deputy Director of Finance Deanna Sako appeared
before Your Committee.
Some members of Your Committee still feel the sale of the lands would be more appropriate.
Possible issues regarding infrastructure and liability were mentioned. Ms. Crawford stated that
the Administration had discussed the measure and are in support of leasing the lands for the
purposes mentioned; however, some clarification is needed as to how to proceed. She said it
would be easier to lease the parcels out as a whole, rather than dividing any parcel among several
leaseholders. She clarified for members that the leaseholders would pay taxes as a regular
property owner, under the lower priced agricultural class rates.
Pursuant to Article 19, Section 2 -114, the Finance Director is authorized to negotiate a sale or
lease through negotiation real property upon a finding by the County Council that the public
interest demands it.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 38 -11,
and recommends its adoption.
dkr
AYES NOES A &E EX Respectfully submitted,
BLAS X
FORD x COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X
PILAGO X + 2
SMART x BRENDA FO , CHAIR
YAGONG X FC REPORT NO. 31
YOSHIMOTO x ADOPTED: APR 0 6 2011,