HomeMy WebLinkAboutCOM 0962.008 2018-2020 I
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From: Pat Flanagan COUNTY CLERK
Sent: Saturday, May 30, 2020 10:38 AM COTY OF AI a I
To: Council Testimony r CSI
VED
Time t0:� 0*4
Subject: Fwd: Follow up to letter on Bill 169 --
Date MAY 3 0 2020
Could you please submit the following email that I submitted to Karen Eoff regarding Bill 169, as a part of the
public statement scheduled for June 3rd, 2020. Mahalo, Pat
---------- Forwarded message---------
From: Pat Flanagan u _
Date: Sat, May 30, 2020 at 10:48 AM
Subject: Follow up to letter on Bill 169
To: <karen.eoffhawaiicountv.gov>
Karen, I was just informed that there is a public hearing on June 3rd with Bill 169 being a part of the agenda.
Obviously for the vast majority of the potentially impacted parties, physical attendance is virtually impossible.
Even if we wanted to come, I assume very few are on the island ; and getting there now, would place anyone in
the 14 day quarantine. I have been on political zoom calls, where we can see our elected officials,
while participants can call in, or send in messages to be addressed by their officials. It would be wonderful to
be part of the process, given the potential consequences.
If this isn't possible, I would appreciate being part of the public record. The points I would like to make are as
follows:
First point, it appears that you are targeting a very small portion of property owners, mostly of whom are
fortunate to own these as second homes. A newspaper article indicated that 930 properties out of an island total
of approximately 140,000 properties or .7 of 1% of the total inventory. The article indicated that this small
number was already being taxed for twenty percent of all the residential property tax revenue.
Second point, many of these homeowners never rent out their properties, annual occupancy varies from
property to property, but personally we might stay there for two months out of the year on the high end. For
some at Kukio it's more, but for many it appears to be less. We have not been able to come to Kona since
January, because of COVID and the 14 day quarantine provision that is still in place. Personally, we have never
been a burden at any level for all of the government services that are being provided. We have never been a
recipient of any educational, police, fire, or any governmental agency support.I am sure they are all great, and
it's nice to know they are there to support residents when called upon; I'm just stating that many of these owners
place no strain whatsoever on city and county budgets.
Third point, with a real estate background; it is obvious to me that continuing to target higher end properties
with increased property taxes will depress high end values and decrease future development of these types of
properties. Construction jobs could be negatively impacted. Long term,this could also have a negative impact
on potential property tax revenue. I think it's important to reflect on this personal anecdote. We purchased our
house in 2006. Values plummeted in 2008-2009. In 2020, the value of our house has not returned to the level
we purchased it at. The combination of COVID, the economic consequences, the position that the Hawaiian
government has taken in the 14 day quarantine on all visitors(including homeowners), and now a contemplated
31% increase in property taxes; there is no question will depress the value of these properties once again.
Comm. o •
1Ref. o: un OT
Ref. Date—JUN - 3 2020
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Fourth and last point, many of these 930 property owners have had a positive impact on the Kona economy;
providing for quite a few jabs in maintaining their properties; and also have been very generous in supporting
the non-profit community of Kona.
Karen, it seems so.,nappropriate at this time; to give any consideration to target this selected group once again. I
would assume that many of these property owners are dealing with many challenges with their own businesses,
and the other communities that they may happen to reside in. We realize that there will be budgetary challenges,
and that most of the impacted parties are not voting constituents of Kona. However, we must consider that we
are all part of the same society, that we all have our own set of challenges, that we need to work together to
optimize the outcome during historic times, and that we need to treat every individual as fairly and equally as
possible.
Thanks for reviewing, and I would appreciate it if this could be made part of the public record, given there is no
opportunity to participate in the public hearing on June 3rd. Ma halo, Pat Flanagan
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