HomeMy WebLinkAbout201H RES 403-06 Kamakoa NuiCOUNTY OF HAWAI'I'.-=>= STATE OF HAWAII
RESOLUTION NO. 403 06
RESOLUTION AUTHORIZING THE MAYOR OR HIS DULY AUTHORIZED REPRESENTATIVE
TO NEGOTIATE, EXECUTE AND SUBMIT THE NECESSARY DOCUMENTS FOR AN
ESTOPPEL AGREEMENT WITH THE NATIONAL ELECTRICAL BENEFIT FUND FOR A
PRE-DEVELOPMENT LOAN WITH THE WAIKOLOA WORKFORCE HOUSING, LLC
WHEREAS, the County of Hawaii is the owner of approximately
276.822 acres of land situated at TMK: 3/6-8-02:26 and 3/6-8-30:179,
Waikoloa Village, South Kohala, Hawaii; and
WHEREAS, on September 15, 2004, the Hawaii County Council
adopted Resolution No. 236-04 which authorized the Mayor to execute an
agreement with a master developer and to enter into agreement to
develop the Waikoloa Employee Housing Project WEHP); and
WHEREAS, on January 5, 2006, the Hawaii County Council adopted
Resolution No. 234-06 which designated a non-profit corporation to
lessen the burden of the County to provide affordable workforce
housing. This provided the mechanism for the County of Hawaii to
deed to the Hawaii Island Housing Trust HIHT), a non-profit entity,
approximately 276.882 acres of land for a fee of ten dollars 10.00);
and
WHEREAS, once HIHT receives title to the Waikoloa property TMK:
3/6-8-2:26 3/6-8-30:179), HIHT will issue a ninety-nine 99) year
ground lease to the Special Purpose Entity SPE) non-profit who will
be responsible for carrying out the project; and
WHEREAS, upon the transfer of title from the County of Hawaii to
the HIHT, the HIHT/SPE will enter into a pre-development loan with the
National Electrical Benefit Fund NEBF) in the amount of 4,250,000,
for engineering, architectural, land planning, green building, utility
fees, attorneys' fees, and other related pre-development activities;
and
WHEREAS, in order for the HIHT/SPE to assume the development of a
community of 800 to 1,200 for-sale and rental housing units, the
HIHT/SPE will need to secure the NEBF pre-development loan against the
ground lease through the execution of an Estoppel Agreement; and
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WHEREAS, in the event that the WEHP does not move forward and the
HIHT/SPE defaults on the NEBF pre-development loan, the County has the
right to step in and assume the terms and conditions of the NEBF pre-
development loan in order to retain the property; and
WHEREAS, in the event of litigation over the TDC/WDC agreements,
the agreement requires the County to hold NEBF harmless from any
claims against them and reasonable attorneys' fees up to 200,000; and
WHEREAS, the timely closing of the NEBF loan is critical to the
successful development of the WEHP.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that the Mayor or his duly authorized representative is hereby
authorized to negotiate, execute and submit the Estoppel Agreement
between the County of Hawaii and the National Electrical Benefit Fund
for the Waikoloa Employee Housing Project.
BE IT FURTHER RESOLVED that the Mayor or his authorized
representative is designated to act as the representative of the
County.
BE IT FURTHER RESOLVED that a copy of this resolution be
transmitted to the Office of Housing and Community Development, the
Hawaii Island Housing Trust and the National Electrical Benefit Fund.
Dated at Hilo this 7th day of July 2006.
RODUCED BY:
COUNCIL ME BER, COUN F AWA I
u
COUNTY COUNCIL ROLL CALL OTE
County of Hawaii
Hilo, Hawaii
AYES NOES ABS F,x
ARAKAKI X
I hereby certify that the foregoing RESOLUTION was by the HIGA g
vote indicated to the right hereof adopted by the COUNCIL of HOFFMANN X
the County of Hawai' i on z„ t ~ n n F HOLSCHUH X
IKEDA X
ATTEST:
ISBELL X
JACOBSON X
PILAGO g
SAFARIK J{
j~8 0 1 0
Reference C-961/Waived CHA
COUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. 4f).3 l~ fi