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HomeMy WebLinkAboutREP FC 069 2016/06/02 (2014-2016) REPORT OF THE COMMITTEE ON FINANCE DATE: June 2, 2016 Re: Comm.No. 898/Res.No. 535-16 PLACE: Council Chambers Hilo, Hawai`i TIME: 1:40 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Resolution No. 535-16, reports as follows: Resolution No. 535-16,transmitted by Council Member Valerie T. Poindexter, via Comm.No. 898 dated May 16, 2016, authorizes the Director of Finance to enter into negotiations for the acquisition of Tax Map Keys: 2-9-002:079 and 2-9-002:081,also known as Hakalau Point, situated in the District of Hamakua, utilizing the Public Access, Open Space, and Natural Resources Preservation Fund. This 8.7 acre property is listed as priority No. 3 for purchase in the 2015 Annual Report of the Public Access, Open Space, and Natural Resources Preservation Commission. Council Member Valerie Poindexter explained that she met with the many community members, community associations and development plan action committees regarding this acquisition. She stated that she is now addressing this because the community agreed to go forward. Ms. Poindexter then said that this is about saving the culture and lifestyle that is slowly disappearing and that she wants to save the connection to the plantation heritage that we have. Council Member Greggor Ilagan said he is in support of this resolution. He then commented for the public's benefit that if this resolution is denied, there can be no negotiation, but approval will allow negotiations. Property owner Steve Shropshire came forward and stated that he responded to the request from the Public Access, Open Space and Natural Resources Preservation Commission ("PONC"). He explained the importance of his stipulating terms by which he would sell and said that he also relayed the same to Ms. Poindexter. Mr. Shropshire expressed that the appraised value has no relationship, and that what he paid for, he would accept and he should be entitled to costs. He then stated that Hakalau Valley(the 87 acres) should be sold together with this parcel, and that he sent a letter to PONC regarding the same. Mr. Shropshire said it should be about $4.25 million and said that he is willing to negotiate but he is also realistic. Finance Property Manager Hamana Ventura came forward and confirmed that this resolution is for the nine acres that was introduced and approved by PONC, and that subsequently, a letter came from Mr. Shropshire for the 87 acres. Mr. Ventura restated that only the nine acres is being addressed at this time. Council Member Maile David commented that this island is historically significant and Hamakua does not yet have a parcel purchased by PONC, and because of the historical nature of the property, she will support it. She further said that regardless of a price tag for two parcels, we are here today for the nine acres. Several Council Members commented regarding their support for this resolution. FC Report No. 69 FC-69 Page 2 June 2, 2016 Council Member Dennis"Fresh" Onishi, commented that a land owner can't be forced to sell, and suggested that the resolution be amended to include the 87 acre parcel. Mr. Shropshire commented that this could be done as a public-private relationship or the County could buy both parcels and explained that he did not want to walk away from this meeting looking like "the bad guy." Mr. Shropshire then stated that if a certain other development that he was working on were to be completed, that he would give the County the 87 acres. Ms. Poindexter thanked Mr. Shropshire and the community, and restated Mr. Shropshire's comment and willingness to give the County the 87 acre parcel, should his other development be completed. The vote was taken and all council members voted in favor, with Mr. Onishi's vote being"kanalua-aye." Your Committee on Finance is in accord with the purpose and intent of Resolution No. 535-16, and recommends its adoption. wb AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X ILAGAN X KANUHA X ONISHI X V V PALEKA x KAREN EOFF, CHAIR POINDEXTER x FC REPORT NO.: 69 WILLE X ADOPTED: JUN 1 5 Zu1t.,