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Home My WebLink AboutCOM 0401.004 2014-2016 'a4, CHUN KERR LLP Fort St.Tower,Topa Financial Center 745 Fort Street,9th Floor a Limited Liability Law Partnership Honolulu,Hawaii 96813-3815 •.- (o)808-528-8200 (f)808-536-5869 chunkerr.com Writer's Direct Contact: (808)528-8233 lcolombe@chunkerr.com August 3, 2015 COUNTY CLERK COUNTY OF RAWAI I dru.kanuha hawaiicount ov RECEIVED Via E-mail ( @ Y•g ) Time /0:40,W BY___._,_... And U.S. First Class Mail Date a0/5 9u6 5 Vlr U•S.P?5111t 1141At2. The Honorable Dru Kanuha, Chair and Members Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Resolution No. 239-15 (AUTHORIZES THE EXEMPTION OF CERTAIN CODE REQUIREMENTS, PURSUANT TO SECTION 201H- 38 AND SECTION 46-15 OF THE HAWAII REVISED STATUTES, FOR HUALALAI HEALTH, LLC, KONA, HAWAII, COVERED BY TAX MAP KEY: 7-5-010:061) Dear Mr. Kanuha and Council Members: This firm represents Kuakini Highway 75-6099 Corp. ("KH Corp") owner of property known by TMK No. (3) 7-5-017:005 ("the Kuakini Property"). KH Corp respectfully ask the Council to defer action on Resolution No. 239-15 and refer the matter to committee if the Council deems appropriate. KH Corp. had entered into a lease dated May 31, 2013 with West Hawaii Health, LLC ("WHH") for development of a senior living project on the Kuakini Property ("the Project"). Under the terms of that lease ("the Lease"), KH Corp paid certain pre-development costs for the Project. On March 7, 2014, the Council passed Resolution No. 281-14 exempting the Project on the Kuakini Property from certain planning, zoning and construction standards, pursuant to H.R.S. Sections 201H-38 and 46-15.1. Subsequently, WHH failed to complete the Project on the Kuakini Property. However, under the Lease, WHH had collaterally assigned to KH Corp, as security for performance under the Lease, contracts, plans and specifications, and entitlements in regards to the development of improvements on the Kuakini Property. KH Corp wishes to go forward with development of the Project on the Kuakini Property. KH Corp has recently learned that the principals of WHH have formed a separate entity, Hualalai Health LLC ("HH"). HH has purchased the property which is the subject of the above-referenced resolution("the Hualalai Property"). HH proposes to build on the Hualalai Property the same project for which exemptions for the Kuakini Property were obtained pursuant to Resolution 281-14. Obviously, KH Corp is concerned about HH's potential use of contracts, plans and specifications, entitlements and other Project assets which were either(1)paid for or partially paid for by KH Corp, and/or (2) collaterally assigned to KH Corp. Comm. No. / • 171692.1 Ref. To: — Ref. Date AUG 0 7 2015 CHUN KERR LLP A LIMITED LIABILITY LAW I'ARTNERSHII' The Honorable Dru Kanuha, Chair and Members August 3, 2015 Page 2 Per Communication No. 401 from the Office of Housing and Community Development ("OHCD"), HH is seeking 201H exemptions for the Hualalai Property. This item, as Resolution No. 239-15, is on the Council's agenda for August 5, 2015. However, there seems to be considerable confusion regarding this matter. For instance, the OHCD letter to you dated July 17, 2015 (copy enclosed) actually references the Kuakini Property (TMK No. (3) 7-5- 017:005) and further references "West Hawaii Health LLC" as the "tenant and developer" of the Kuakini Property. OHCD makes no reference to HH or the Hualalai Property. Accordingly, the OHCD position on HH's request for exemptions for the Project on the Hualalai Property is at best unclear. KH Corp is concerned that the exemption granted to the Kuakini Property by Resolution No. 281-14 may be negatively impacted if the Council were to pass Resolution No. 239-15. Furthermore, the Council should consider whether or not it make sense to have two separate sets of exemptions for what is essentially the same project on two different properties or whether development of two such projects at the same time is viable. KH Corp is also concerned that Committee action on this matter was waived, and therefore it has not been fully vetted and discussed before coming to the full Council. As is apparent from the above, this matter should be fully discussed before the Council takes any action. Given KH Corp's considerable interest in this matter, it respectfully suggests to the Council that it defer action on Resolution No. 239-15 for a period of at least two months, and refer the matter to committee if the Council deems appropriate. Many thanks for your attention to the above. Very truly yours, Chun Kerr LLP a Limited Liability Law Partnership •- 'Debt Macer Chun Leroy E. Colombe Alison M. Davidson LEC:cme Enclosure cc (w/enc.): Hawaii County Clerk, Mr. Stewart Maeda(via e-mail) Housing Administrator, Office of Housing and Community Development c/o Mr. Alan Rudo (via e-mail) 171692.1 iY�� Susan K.Akiyama William P.Kenoi ,�.•'• -� Housing Administrator . _ ns Anne M.Bailey \••�;':- ;y,{ w��.�. Assistant Housing Administrator ._ • County of Hawaii Office of Housing and Community Development 50 Wailuku Drive • Hilo.Hawaii 96720 • (808)961-8379 • Fax(808)961-8685 KONA: 74-5044 Ane Kcohokalole Highway • Kailua-Kona.Hawai`i 96740 ti (808)323-4305 • Fax(808)323-4301 o n to c)(-) c O C -'r r-- July 17, 2015 v -r;l Dru Kanuha, Council Chair and >trt Members of the Hawai 'i County Council Hawai 'i County Council %"`i 25 Aupuni Street Hilo, Hawaii 96720 RE: RESOLUTION AUTHORIZING CERTAIN CODE EXEMPTIONS FOR WEST HAWAII SENIOR LIVING, TAX MAP KEY: 3) 7-5-017 :005 West Hawai'i Health LLC, is the tenant and developer of the 14-acre parcel for the project to construct ninety-six (96) assisted living residences, one hundred sixty (160) skilled nursing and long-term care residences and thirty-five (35) employee housing apartments . One hundred forty-seven (147) of the two hundred ninety-one (291) housing units of the total project will be affordable in accordance with Section 201H of the Hawai'i Revised Statues (HRS) . West Hawai'i Health LLC, has responsibly developed and constructed assisted living facilities on Maui and O'ahu. The operation of West Hawai'i Senior Living will be by Covenant Retirement, a 125 year-old faith-based non-profit organization operating in more than 15 communities across the country. West Hawai'i Health LLC, will satisfy the affordable housing requirements of West Hawai'i Senior Living (formerly Lava Kuakini) by providing twenty-four (24) units affordable to families earning less than sixty percent of the median income, eighteen (18) units affordable to families earning below eighty percent of the median income, and one hundred five (105) units to be affordable to families earning less than one hundred percent of the median income. ), t•, Comm. No. -T b AV Ref. Res. 239-15> Ref, foe Calx-TO, A Ref. Dote JUL 2 2 201544].41,HOUSING OPPORTUNITY "HAWAII COUNTY IS AN EQUAL 7647dkrr OPPORTUNITY PROVIDER AND EMPLOYER" A Dru Kanuha, Council Chair and Members of the Hawaii County Council July 17, 2015 Page 2 Enclosed is a Resolution authorizing certain code exemptions pursuant to HRS Section 201H-38, in conjunction with HRS 46- 15. 1, to allow the County, with approval of the County Council, to exempt low-income housing projects from certain code requirements to facilitate the development of the project . If there are any questions, please contact Kaloa Robinson at 961-8379. i Susan K. : ' ' yama Housi . Adm' . strator Enclosure