HomeMy WebLinkAboutCOM 0249.002 1998-2000 Menezes Tsukazaki Yeh & Moore srEPHENJ. MENezes
A. BEN TSUKAZAKI
ATTORNEYS AT LAW THOMAS L.H. YEH
MICHAEL W. MOORE
100 Pauahi Street Suite 204 Hilo, Hawaii 96720
Telephone: (808) %]-0055 PAX (808) 969-1531
April 15, 1999
James Y. Arakaki, Chairperson
County Council
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution No. 77-99/Authorizes the Mayor to Execute Cancellation of the
February 12, 1990 Agreement with Kaupulehu Makai Venture, as Amended
on October 8, 1991, to Satisfy the Affordable Housing Requirement for
Kaupulehu Makai Venture
Dear Chairperson Arakaki:
As you may recall, this firm represents Kaupulehu Makai Venture ("KMV")
regarding its affordable housing plan.
On behalf of KMV, we thank you for placing the above-referenced resolution on
the agenda for consideration at the County Council meeting on Apri121, 1999. Following
is background information which may be of assistance to the County Council in its
consideration of this matter.
On June 16, 1998, the County Housing Agency approved, pursuant to the County's
affordable housing policy in Ordinance No. 98-1, the Hualalai Resort Affordable Housing
Implementation Plan. On July 1, 1998, the County Council adopted Resolution No. 289-
98, which authorized the Mayor to negotiate and execute an affordable housing
agreement for Hualalai Resort through its owner, KMV. During the Mayor's review of
the agreement and related documents, a question arose as to whether the County Council
intended to authorize the Mayor to execute a cancellation of the initial agreement
executed on February 12, 1990, with Kaupulehu Developments, as amended on October
8, 1991, under the prior affordable housing policy. Although Resolution No. 289-98
refers to those unperformed agreements and implies that they would be superseded by the
new agreement, it does not specifically authorize the Mayor to cancel those previous
agreements. The proposed resolution contains language which authorizes the Mayor to
cancel the County's previous agreements with Kaupulehu Developments.
Comm. No. 2'~F9.OO,Z
FSIe No. HS~o
Ref. ToPressgted COU,JuI
Ref. Date ~ - 21 - 99
Menezes Tsukazaki Yeh & Moore
ATIYIRNEYS AT LAW
James Y. Arakaki, Chairperson
County Council
County of Hawaii
April 15, 1999
Page 2
KMV has proceeded to implement its affordable housing plan. With assistance
from Ed Taira of the Office of Housing and Community Development, an administrative
program was finalized, and the affordable housing agreement was reviewed by the Office
of the Corporation Counsel and forwarded to the Mayor.
KMV has completed an employee survey and worked with housing developers
and bank representatives to determine how best to coordinate KMV's affordable housing
subsidy program with conventional loan programs which would be used by most if not
all of the employees who receive subsidies. KMV has also proceeded with an orientation
meeting for employees, housing developers, and bank representatives, and has completed
the application phase for affordable housing subsidies. The first subsidies are scheduled
to be awarded to employees on May 7, 1999.
We would appreciate very much the Council's action on this resolution at its
meeting on Apri121, 1999. If the County Council adopts the resolution at that time, this
technical hurdle would be overcome, and the Hualalai Resort affordable housing program
would be able to proceed to issue subsidies upon the Mayor's subsequent execution of
the agreement and related documents.
Please contact me if you should need further information regarding this matter.
Very truly yours,
MENEZES TSi TKAZAKI YEH & MOORE
R. BEN TSU ZA I
RBTar
xc: Kaupulehu Makai Venture
Mayor Stephen K. Yamashiro
Office of Housing and Community Development