HomeMy WebLinkAboutCOM 0337.004 1998-2000 40''NTY Of: M,~'fi
DOMINIC YAGONG = " 1,1.. Phone: (SOS) 961-5264
Cauncilmernber O FAX: (808) 969-3291
COUNTY COUNCIL oc`, ~y
County of Hawaii ~i' ' " A
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Hawaii County Building - y
25 Aupuni Street Q;
Hilo, Hawaii 96720 Fy.
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September 14, 1999
Memo to: James Y. Arakaki, Chairman
Hawaii County Council
25 Aupuni Street
I-Lilo, Hawaii 96720
From: Dominic Yagong, Councilmember
Re: Resolution No. 104-99, JC Penny Building
Attached please find copies of my letter to Mr. Francis Blanco, of the US Department of
Agriculture along with his response to me answering the questions that I proposed to him
regarding the JC Penny's building.
Please submit the attached for circulation at the Cowicil meeting that is scheduled for
September 21, 1999 iu reference to Resolution No. 104A9.
Should you have any questions, please feel free to contact me.
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Comm. No, ~ ~ • ' f7f7~
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United States Department of Agriculture Rural Utilities Service (RUS)
D Rural Development Rural Housing Service (RHS)
Rural Business -Cooperative Service (RBS)
Hawaii State Office -Western Pacific Region Telephone: (808) 933-8380
Room 311 Federal Building FAX: (808) 933-8327
154 Waianuenue Avenue
Hilo, Hawaii 96720
FRANCis BLArvco RECEIVED
State Director ;,m,_,~a.~aa m By ~(er.,uwArau.G
Dore--_~!O~yR __-..__._.~$;,ntember 9, 1999
County Council
Dominic Yagong, Councilmember
Ted K. Matsuo Hawaii County Council
Program Director, RUS 25 AllpUm Street
Hilo, HI 96720
Thao Khamoui Dear Councilman Yagong:
Program Director, RHS
The USDA Rural Development made a $4 million direct loan participation to acquire
the former JC Penney building for the purpose of consolidating certain County
Steven R. Chapman government services. You inquired whether the following alternative uses of the
Program Director, RBS building would meet our loan purposes.
1. Sale of the building would require a full payment on the loan.
2. Utilizing the building as a cultural center would meet our loan purpose.
3. Using the building as an indoor farmers market would not meet the intent
of our loan program.
4. It would be an eligible loan purpose to use the building as a community
center providing community, social and cultural services as you
described in Option 4.
I hope this response will help you in your deliberation. Please feel free to contact me
again if I can be of further assistance.
Sincerely,
FRANCIS J. BLANCO
State Director
Rural Development is an Equal Opportunity Lender.
Complaints of discrimination should be sent to:
Secretary of Agriculture, Washington, DC 20250
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DOMINIC YAGONG .•"*!ys Phone: (808) 961-8264
Coum;dmember Fax: (808) 961-8912
COUNTY COUNCIL
County of Hawaii
llawai'i County Building
23 Aupuni Street
Nilo, Hawoi'i 96720 -
August 27, 1999
Mr. Francis Blanco
USDA Rural Development
Hawaii State Office, Room 311
154 Waianuenue Avenue
Hilo, Hawaii 96720
Deaz Mr. Blanco:
The County of Hawaii received a $4 million dollar loan from the Rural
Development Office in conjunction with the condemnation and purchase of the.
former JC Penney building in Hilo. The purpose of acquiring of this building and
property was to consolidate certain government services. It is my understanding
that it was a 20-yeaz loan at 4.875% interest.
There is strong discussion on whether or not the consolidation of government
services is a priority or the most appropriate use of this building. Other options
have surfaced and I would like to clarify whether or not a change with the use of
the building would result in Rural Development calling in the loan. Other options
being discussed are: (1) placing the building on the mazket place for sale; (2)
utilizing the building as a cultural center; (3) indoor farmers market; (4) County
of Hawaii recreational facility utilizing for meetings; parties, and conventions.
Please provide a written response to the status of the loan should the intent be
changed to any of the above uses.
Thank you very much for your help on this matter, and I look forwazd to your
response.
1^\. J est Aloha, .
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Dominic Yagong, C cilmeir~er
Hawaii County Council
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