HomeMy WebLinkAboutREP FC 335 02/12/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: February 12, 1991 Re: 'Comm. 2294
Place: Councilroom
Time: 10 : 00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No. 286-91, reports as follows :
The purpose of Resolution No. 286-91 is to authorize the Director of
Finance to take necessary actions to accept the State-owned real
property in Kealakehe (TMK: (3) 7-4-08 portion 17) , North Kona, and
to enter into such contracts and lease agreements with Kealakehe
Associates, Inc. , a Hawaii corporation, for the purpose of allowing
said corporation to construct, develop, operate and maintain a
public golf course and related facilities on subject real property
and a leaching field for effluent water from the Kailua-Kona sewage
treatment plant .
Your Committee understands that the State of Hawaii has indicated by
letter that it is willing to set aside subject real property for
stated purposes as part of the Kealakehe Planned Community project .
However, your Committee was informed issuance of Executive Order to
transfer said property to County control is pending modification to
survey map.
The Committee Chair noted that citizen concerns expressed during a
public hearing in Kona on the subject and explicit concerns and
recommendations by the Golf Course Advisory Committee (GCAC) have
not yet been adequately addressed. She further suggested that the
Executive Order should be executed before the County proceeds to
lease property it does not yet own. The Committee Chair also
suggested that before approving the subject resolution that the
Finance Committee members first meet with the GCAC to discuss their
concerns and noted subject lease agreement is too loosely written
and subject to interpretation that is not in the benefit of the
citizens of the County.
FC REPORT No. 335
ADOPTED: FEB 2 0 1991
FC-335 Page 2 February 12, 1991
Your Committee heard from the Managing Director that the combined
golf course and leaching field were the best alternatives and
integral components of the Kona Sewage Treatment facility which will
be completed and ready for disposal of effluent wastewater between
March and June 1991. Also stated that the Administration' s
timetable established March 15, 1991 through March to June 1992 for
design, permit and construction stages with golf course completion
sometime near March 1993, thereby, contending the absolute necessity
to proceed immediately with the subject lease agreement .
Councilman Ruddle acknowledged the developer ' s proposed $4 million
"premium" contribution to the County and requested that same funds
be allocated towards the needs of the West Hawaii community.
Furthermore, he suggested, rather than the developer providing
proposed child-care facility, instead increase the number of tee
times allocated to the public, as previously suggested by the GCAC.
Councilman De Lima inquired and then requested that upon approval of
the subject resolution and after negotiations between the County and
Kealakehe Associates are completed, that final approval of lease
agreement be approved by the Council .
Corporation Counsel informed your Committee that numerous legal
documents between the County and Kealakehe Associates would be
prepared to address the concerns related to the transfer of land
from the State, etc. He further stated proposed lease agreement
before your Committee was only a draft which would be fine-tuned and
would protect the interests of the County.
The Committee Chair, per stated request of GCAC, inquired of the
Managing Director if one member of GCAC could be present for
negotiations between the County and Kealakehe Associates, to which
the Managing Director responded "No. "
Councilman De Lima commented that the resolution, as written, gives
the Administration the authority to proceed without input or
approval from the Council and mentioned the concerns of GCAC are
legitimate and should first be addressed.
Thereafter, Councilman Schutte made a motion to your Committee to
amend the subject resolution to read: "After the contract
negotiations for the lease has been finalized by the Administration,
that that document be brought back to the Council . "
FC- 335 Page 3 February 12, 1991
Your Committee on Finance concurs with the intent of Resolution
No. 286-91, Draft 2, and recommends its adoption.
HELENE H. H LE, CHAIRWOMAN
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ROBERT H. MAKUAKANE, VICE CHR. B AN J DE IMA, MEMBER
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TA SHI DOMIN , MEMB MERLE ' . LAI , MEMBE•
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HARRY S. DDLE, MEMBER SPE E' K. SCHUTTE, MEMBER
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