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HomeMy WebLinkAboutRES 502 Draft 01 2018-2020 J�ZY Os h,,, COUNTY OF HAWAII STATE OF HAWAII ,TE,OF M. RESOLUTION NO. 502 20 A RESOLUTION RELATING TO THE FORMATION OF AN IMPROVEMENT DISTRICT FOR THE CONSTRUCTION OF PUBLIC SEWER IMPROVEMENTS LOCATED AT KALOKO AND KOHANAIKI, DISTRICT OF NORTH KONA, ISLAND AND COUNTY OF HAWAII, STATE OF HAWAII. WHEREAS, by Petition filed on January 29, 2020 (the "Petition"), RCFC KALOKO HEIGHTS, LLC, a Delaware limited liability company, KALOKO HEIGHTS BIA HOLDINGS, LLC, a Delaware limited liability company, and KALOKO HEIGHTS INVESTORS, LLC, a Delaware limited liability company, hereinafter collectively referred to as the "Petitioner", petitioned this County Council, in accordance with Section 12-16, Hawaii County Code, to accept and grant the Petition and undertake all things necessary to initiate and complete the formation of an Improvement District for the construction of certain public sewer improvements; and WHEREAS, the Petitioner designated certain parcels, identified as TMKs (3) 7-3- 009:019, 057, 058, 059, 060, 061 and 062, located at Kaloko and Kohanaiki, North Kona, Hawaii, as the area of land comprising the proposed Improvement District; and WHEREAS,the Petitioner is the owner in fee simple of one hundred percent (100%) of the entire assessable area within the proposed Improvement District; and WHEREAS, the Petition has been fully considered by the County Council; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, that: 1. The Petition is accepted; and 2. In accordance with the requirements of Hawaii County Code (HCC) Section 12- 16, Petition by One Hundred Percent of Frontage or Area, the Director of the Department of Environmental Management is hereby directed to prepare and submit to the Council a report meeting the requirements of HCC Section 12-10(a), including applicable surveys, plans, maps and other data to create, define and establish the Improvement District in accordance with HCC Sections 12-18, 12-19, 12-20 and 12-21, as applicable, in the same manner as though the plan for the proposed improvements had been initiated by the Council on its own motion. BE IT FINALLY RESOLVED that the Clerk of the County of Hawaii transmit copies of this resolution to: (1) the Honorable Harry Kim, Mayor of the County of Hawaii; (2) the Department of Finance; (3) the Department of Public Works; (4) the Department of Environmental Management; (5) Office of the Corporation Counsel; and (6) Law Offices of Yeh & Moore, Attn: Thomas L.H. Yeh, 10 Kamehameha Avenue, Hilo, Hawaii 96720-2830 (attorney for Petitioner). Dated at Hilo, Hawaii, this 11th day of March , 2020. INTRODUCED BY: /Or ,40•P COUNCIL ME :ER, II I TY OF HAWAI I COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by EOFF X the vote indicated to the right hereof adopted by the COUNCIL of the KANEALII-KLEINFELDER X County of Hawaii on March 11, 2020 • KIERKIEWICZ X LEE LOY X ATTEST: POINDEXTER X RICHARDS X VILLEGAS X 9 0 0 0 Reference: C-757/FC-107 CLERK CH IRPERSON&PRESIDING OFFICER RESOLUTION NO. 502 20 PETITION FOR CREATION OF AN IMPROVEMENT DISTRICT TO CONSTRUCT SEWER LINE EXTENSION AND RELATED IMPROVEMENTS FROM KALOKO HEIGHTS, PHASE I TO EXISTING SEWER LINE TERMINUS IN THE VICINITY OF WEST HAWAII CIVIC CENTER KALOKO AND KOHANAIKI, NORTH KONA, HAWAII COUNTY COUNCIL OF THE COUNTY OF HAWAII 25 AUPUNI STREET HILO, HAWAII 96720 WHEREAS,RCFC KALOKO HEIGHTS, LLC, a Delaware limited liability company, whose address is 10100 Santa Monica Boulevard, Suite 1000, Los Angeles, California 90067 ("RCFC"), KALOKO HEIGHTS BIA HOLDINGS, LLC, a Delaware limited liability company, whose address is 10100 Santa Monica Boulevard, Suite 1000, Los Angeles, California 90067 ("BIA"), and KALOKO HEIGHTS INVESTORS, LLC, a Delaware limited liability company whose address is 10100 Santa Monica Boulevard, Suite 1000, Los Angeles, California 90067 ("KHI"), all of which together are hereinafter collectively referred to as the "PETITIONER", are developing a project consisting of single family residential, multiple family residential, commercial, and open uses at Kaloko and Kohanaiki, North Kona, Hawaii known as Kaloko Heights (the "Project"); and WHEREAS,the Project is bisected by Hina Lani Street with approximately 193.24 acres on the north side of Hina Lani Street, designated as Phase 1 ("Phase 1"), and 193.9311 acres on the south side of Hina Lani Street designated as Phase 2 ("Phase 2"); and WHEREAS,the special improvements to be constructed under the proposed Improvement District consist of a sewer line extension and related improvements beginning at the makai boundary of Phase 1, extending west(makai) within Hina Lani Street and then along 1 , Ane Keohokalole Highway to the existing sewer line terminus in the vicinity of the West Hawaii Civic Center(the location of which sewer line extension and improvements is depicted on Exhibit "A" attached hereto) ; and WHEREAS, on March 28, 2019, the County Council adopted Resolution No. 86-19 which authorized the construction of the proposed sewer line extension and related improvements and which resolution contemplated that said improvements would be constructed by way of an improvement district pursuant to Chapter 12 of the Hawaii County Code; and WHEREAS,the Improvement District will confer special benefits, as defined by Section 12-2(a) upon the lands to be assessed within said Improvement District; and WHEREAS, other landowners may also connect to the proposed sewerline extension and improvements in the future, including the Hawaii Island Community Development Corporation for purposes of constructing an affordable housing development on that certain parcel of land located to the west or makai of the Project area, on TMK: (3)7-3- 009:032(portion) and 057(portion). THEREFORE, PETITIONER hereby submits this Petition to the County Council of the County of Hawaii and requests, in accordance with Section 12-16, Hawaii County Code, that the County Council, through appropriate Resolutions: (1) accept and grant this Petition; (2) direct the Director, Department of Environmental Management, to prepare and submit to the County Council a report meeting the requirements of Section 12-10(a), Hawaii County Code; (3) approve and adopt such report, and create, define and establish the proposed Improvement District in accordance with Sections 12-18, 12-19, 12-20 and 12-21, Hawaii County Code, as applicable; and (4) initiate and do all other things necessary to complete the formation of the proposed Improvement District at Kaloko and Kohanaiki,North Kona, Hawaii. 2 In furtherance thereof, PETITIONER submits and requests that the proposed Improvement District be formed in accordance with and subject to the following. I. OWNERSHIP PETITIONER is the owner in fee simple of one hundred percent (100%) of the entire assessable area within the proposed Improvement District located at Kaloko and Kohanaiki, North Kona, Hawaii, identified as TMK(3)7-3-009:019, 057(portion), 058(portion), 059, 060, 061 and 062, and more particularly described in the description attached hereto as Exhibit „B„ II. VALUE OF ASSESSMENT UNITS/PUBLIC INTEREST PETITIONER submits that the appraised value of the assessable area in the proposed Improvement District is more than twice the estimated cost of the proposed special improvements as will be shown by the appraisal being prepared by Integra Realty Resources, under the supervision of the County of Hawaii Department of Finance, which appraisal will meet the prevailing standards of appraisal used by banks for loans. PETITIONER further submits that the special improvements are in the public interest, all within the meaning of Section 12-16(b), Hawaii County Code. III. BOUNDARIES OF THE IMPROVEMENT DISTRICT The boundaries of the proposed Improvement District, located at Kaloko and Kohanaiki,North Kona, Hawaii, are shown on the map entitled "Proposed Kaloko Heights Sewer Improvement District Boundaries", attached hereto as Exhibit "C". The attached map 3 shows the land specially benefited and the total assessable area of the proposed Improvement District. IV. DESCRIPTION OF IMPROVEMENTS/PLANS AND SPECIFICATIONS The special improvements to be made consist of a sewer line extension and related improvements to connect PETITIONER'S Project as well as the Hawaii Island Community Development Corporation's Kaloko Heights Affordable Housing project, extending west within the existing rights of way of Hina Lani Street and Ane Keohokalole Highway to the existing sewer line within the Ane Keokahole Highway fronting the West Hawaii Civic Center. The sewer line extension will be an all gravity system located within the existing rights- of-way of Hina Lani Street and Ane Keohokalole Highway. The sewer line improvements will consist of approximately 12,115 linear feet of an 8-inch to 12-inch polyvinyl chloride (PVC) sewer pipe, 39 sewer manholes and 10 laterals to properties adjacent to Hina Lani Street and Ane Keohokalole Highway along the project area. The sewer improvements have been designed to accommodate the wastewater needs of PETITIONER'S Project, the Kaloko Heights Affordable Housing Project, and the properties adjacent to the sewer line extension based on the existing zoning. Construction plans and specifications for the sewer line extension and related improvements, prepared by Nancy E. Burns, P.E., LLC, are currently under review by the County of Hawaii Department of Environmental Management,the Department of Public Works and the Department of Water Supply. 4 V. LAND TO BE ACQUIRED No land or easements need to be acquired for the construction of the sewer line extension and related improvements as all such special improvements will be constructed entirely within the existing rights-of way of Hina Lani Street and Ane Keohokalole Highway. VI. ESTIMATED COST OF IMPROVEMENTS The preliminary estimate of the costs for the proposed Improvement District, including incidental expenses incurred to date and those to be incurred in the future, and the cost of construction of the special improvements, is $12,000,000.00. Incidental expenses include fees and expenses authorized by the County for: (1)preliminary engineering surveys, maps, plans, drawings and specifications; (2) County of Hawaii's bond counsel, financial adviser, appraiser, special tax counsel and other County of Hawaii consultants, publication costs and other out-of- pocket expenses, and a reasonable charge for County of Hawaii staff time and administrative costs; (3) PETITIONER'S legal counsel, consultants, and all other expenses and costs incurred by PETITIONER for the formation of the proposed Improvement District. PETITIONER requests that all such fees, costs and incidental expenses advanced or incurred by PETITIONER be made part of the cost of the special improvements and that after due proceedings have been held as required by law, that the actual funds expended by PETITIONER for such fees, costs and incidental expenses be reimbursed to PETITIONER at such time as funds become available from the proceeds of the sale of the bonds for the proposed Improvement District,pursuant to Section 12-7, Hawaii County Code. 5 VII. METHOD OF ASSESSMENT PETITIONER requests that the applicable method of assessment for the proposed Improvement District be determined pursuant to the provisions of Section 12-2, including subsections (b)(1) and (2), Hawaii County Code. PETITIONER submits that the assessment units within the proposed Improvement District have different uses which affect the nature or extent of the special benefits to be conferred thereon by the special improvements, and that a change in classification or use for certain of the assessment units is reasonably anticipated and will result in increased special benefits to those assessment units, all within the meaning of Section 12-2(b)(1) and (2), Hawaii County Code. VIII. METHOD OF PAYMENT OF ASSESSMENT PETITIONER requests that the owners of the assessment units in the proposed Improvement District be permitted to pay the assessment in one payment, or at the election of each such owner of an assessment unit to pay the assessments in two hundred forty (240) approximately equal monthly installment payments of principal and interest, as provided by Sections 12-33 and 12-34, Hawaii County Code. IX. RESERVE FUND PETITIONER requests that a reserve fund be established, pursuant to Section 12-50, Hawaii County Code, as additional security for the payment of principal and interest on the proposed Improvement District bonds, in an amount to be determined by the County Council. 6 X. OWNERS'AUTHORIZED REPRESENTATIVE PETITIONER designates RCFC, pursuant to Section 12-24(d), Hawaii County Code, to act on their behalf as the owners' duly authorized representative ("Owners' Representative"). XI. BID,AWARD,ADMINISTRATION OF CONTRACT PETITIONER requests, pursuant to Section 12-14(d), Hawaii County Code, that the Owners' Representative be authorized to administer the bid process, award the work and administer the contract or contracts for the construction of the special improvements, subject to the County of Hawaii's oversight and approval as set forth in provisions of Section 12-24(d), Hawaii County Code. XII. PROGRESS PAYMENTS PETITIONER requests that the Owners' Representative receive payment of the contract price of the special improvements by means of progress payments during the period of the construction of the special improvements, such payments to be made in cash, pursuant to Section 12-53(f), Hawaii County Code, and subject to the provisions of Section 12-24(d), Hawaii County Code. WHEREFORE, PETITIONER respectfully requests that the County Council accept and grant this Petition and undertake all things necessary to initiate and complete the formation of the proposed Improvement District located at Kaloko and Kohanaiki,North Kona, Hawaii. 7 IN WITNESS WHEREOF, PETITIONER has executed this Petition as of the_ 7114/v day of _ 2020. RCFC KALOKO HEIGHTS,LLC By: Name: Aaron A. Giovara Its. ;R KALOKO HEIGHTS BIA HOLDINGS,LLC By: Name: - ar, Gioy rw Its: Au r : s I' ory KALOKO : i:us INVESTORS,LLC By: Name: Aaron A. Ciovara Its: Authorized Signatory 8