HomeMy WebLinkAboutCOM 0040.019 2010-2012Murashige, Laura
(o I1;1 i-1. 4-0 . i I
From: Duane [duaneerway @hawaii.rr.com]
Sent: Monday, September 19, 2011 9:52 PM
To: Dominic Yagong; County
Subject: CORRECTION: Testimony supporting Bill 304
Aloha, Chairman Yagong!!!
Aloha, Council Members!!!
Please support Bill 304 bringing Impact Fees to Hawaii County.
Page 1 of 1
PJ�couucn.
r...__. _..
0')
r-.r-,
f.,
As you know, the Impact Fee Program proposed in Bill 304 would replace the "fair share
contributions" system that was created by the Hawai'i County in the early 1990's. It is important
to understand that the practice has been to impose these fees as a condition of zoning but are
collected at the time of final subdivision or final plan approval (not also at the time a building
permit is issued, which is the loophole in the system). Because most of the land subject to these
contributions has yet to have been subdivided, this places severe limitations on how much
revenue the County actually collects. Moreover, "fair share contributions" are limited only to
applicants for new residential and hotel development. No fair share contributions are collected
from the developers of retail /commercial developments, office buildings, industrial
developments, warehouse developments, etc. Not collecting contributions from the developers of
these other types of development is unfair to the developers who do have to pay, rendering the
constitutionality of existing "fair share" program questionable. Also note that the existing "fair
share contributions" are higher than the impact fees proposed by this new program.
It is important to note that Hawaii state law allows the counties to adopt impact fee ordinances
and requires that impact fees must be spent on public infrastructure within the districts in which
the new development is occurring and the impact fees are collected.
Impact fees can be used to pay for capital improvements outright and to pay debt service on
general obligation bonds that fund increases in infrastructure capacity, thereby avoiding an
increase (or allowing a reduction) in real property tax rates.
Lack of funding is one important reason for the County's infrastructure shortfall. Impact fees are
one means of generating additional revenue. If Bill 304 is adopted, it will put into place a
progressive, transparent program for funding infrastructure construction, one that reduces the
burden upon residents at the lower end of the income scale.
Duane Erway, President
Plan to Protect Kona
P.O.Box 2807
Kailua -Kona, HI 96745
9/20/2011
Comm. No. 40.1q
Ref. To: Pr.r« Cnu nu
Ref. Dote SEP 21 2011