HomeMy WebLinkAboutCOR-18-120180REEDS BAY RESORT HOTEL, LTD.
175 BANYAN DRIVE
H ILO. HAWAII 96720
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Banyan Drive Hawaii Redevelopment Agency
County of Hawaii
Mr. Brian Delima, Chairperson
Members of the Agency Board
Mr. Donald T. Inouye, President
Reeds Bay Resort Hotel, Ltd.
August 29, 2018
SUBJECT:Request to be on the agenda for the coming agency meeting next
month of September to secure a vote of approval for a support letter.
Dear Mr. Delima,
A meeting was held with our Senator Kahele on 8/22/18 concerning Reeds Bay Resort Hotel, Ltd.
lease which has been delayed since the passage of Act 219 on the 11th day of July, 2011. Since that
date the Department of Land and Natural Resources has contended that there is better use for
Reeds Bay Hotel property and since then made it a requirement the corporation must wait until the
implementation"of the Master Plan. It has now been over three years without a lease for Reeds
Bay Hotel.
During the meeting the assertion was that since the approval of"Tomorrow, Land Use Scenario 2"
there should no longer be a reason for delay by DLNR on the issuance of a new lease to Reeds Bay
Resort Hotel, Ltd.
It is therefore requested that the BDHRA offer their support by way of a letter to DLNR for Reeds
Bay Resort Hotel, Ltd.for the corporation's pending request for a new lease which has not been
answered for over 12 months.
It is therefor request to be on the agenda for the September agency meeting.
Respectfully Submitted,
Donald T. Inouye
End: (1) Seeking release of order
2) Rescinding of order(8/2/18)
3) Mistake adv 8/24?/18 120180
REEDS BAY RESORT HOTEL, LTD.
Banyan Drive (office)
Hilo, Hawaii 96720
808) 934 7277
June 27, 2018 Hand delivery
Mr. David Yamamoto, Building Chief
Build Division,Department of Public Works
Hilo, Hawaii
Mr. Donald T. Inouye, President
Reeds Bay Resort Hotel, Ltd.
Hilo, Hawaii
Subject: Reeds Bay Resort Hotel, Ltd. is seeking the release of the"Notice of Order".
Dear Mr.Yamamoto,
Reeds Bay Resort Hotel, Ltd. (RBRHL) has been responsibly working on the over 80 cited Building
and Fire Department violations toward each becoming compliant. This has been a very challenging and
very demanding circumstance for the corporation because many violations have been inherited. RBRHL
has tackled the many violations in a positive respectful way while hopefully looking toward a new lease,
even while having to fund the expenses necessary for compliance. Please review the attached report
which indicates the status of each violation. The report indicates what the total distributed expenses
are to date, plus what the estimated cost for the"permits filed" items will become at a later date.'
RBRHL will continue to work with the building department to insure full compliance of all violations.
The two most unanticipated details in dealing with all the violations are (#1)the financial cost
and (#2)the time expended (10 months). The cost to RBRHL to date is$144,711. This is an average
monthly expense of$14,471 over the last ten (10) months. The breakdown of the expenditures for the
Building Department$70,485, Fire Department$22,020,and other necessary direct cost of$52,206.
There will also be the additional cost of$80,660 in future expense,this is the estimated expenditure to
accomplish the follow-up work required on all the "permits filed". The cost anticipated to be paid out
by the corporation in compliance with all the violations will finally be a total of$225,371.
DLNR's answer is yet to be received after ten (10) months to our latest (8/21/17) lease proposal
request to do a complete upgrade in improvements in the amount of$2,200,000. The corporation has
over the years submitted timely lease proposal requests and all qualified per State Statues. However,
with all the political input, even the newspaper headlines 2/5/16 of"HOTEL AREA BLIGHTED" and with a
Master Plan"being developed for the area by the BDHRA, a new lease for RBRHL has been pushed
aside for almost five years. It is anyone's guess as to when a new lease could be foreseeable in the
future. DLNR staff must come to an understanding that RBRHL is here to stay and that the corporation's
two(2) buildings will not be demolished as proposed in a recent study. A copy of RBRHL latest lease
request proposal to DLNR dated 8/21/2017 cited above is attached for your perusing.
Therefore,this corporation respectfully request that the "Notice of Order" be discharged. It is
also requested that any costly violation items remaining that are non-hazardous be granted a deferment
until the status for a new lease for this corporation has been determine.
The following informative material by number sequence is submitted in further support of this request.
e
BUILDING DIVISION•DEPARTMENT OF PUBLIC WORKS
101 Pauahi Street,Suite 7,Hilo,Hawai`i 96720 808)961-8331,Fax(868)961-8410
a—=_ : 74-5044 Ane Keohokalole Highway,Building E,Kailua-Kona,Hawaii 96740 (808)327-3520,Fax(808)327-3509
August 2,2018
CERTIFIED MAIL
7016 0600 000 8084 3942
Donald T.Inouye '
Reeds Bay Resort Hotel,LTD.
175 Banyan Drive
Hilo,Hi 96720
Re: Rescinding Order
175 Banyan Drive
Hilo,Hi 96720
Tax Map Key(3)2-1-005:022
Dear Mr.Inouye:
Due to your immediate and continued attention and efforts to correct the violations listed in ,
the August 14,2017 Notice ofViolation,Department of Public Works-Building Division
DPWBLDG")is rescinding the March 8,2018 Order,copy attached. The Notice of
Violation remains in effect until all violations have been completed,inspected,and in
compliance with the Hawaii County Code. Further,you must notify DPW-BLDG ifand when
you receive a long term lease from the State. If continued efforts are not made to correct
violations and/or you do not notify DPW-BLDG if and when you receive a long term lease
from the State an Order will be issued that may impose administrative and/or civil fines and/or
referral to the appropriate legal authorities for action.
Thank you for your cooperation and diligence in addressing this matter.
Should you have any questions on this matter,please contact us at 961-8331.
Respectfully,
David Yamamo o,P.E.B ' 'ig Chief
cc: Allan Simeon,Director ofPublic Works
Merrick Nishimoto, Deputy Director of Public Works
Malia Hall,Deputy Corporation Counsel
Jai Ho Cheng,Deputy Building Chief
End:Order
County ofHawaii is an Equal OpportunityProvider and Employer
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COUNTYOF HAWAII'``=..--':'.',` ,:w;r :,.
RICE IS HEREBY GIVEN:of hearings 6 be held by theBoard of Appeals ofthe r
mnty of Hawaii inaccordance with the provisions of Section 6-92of the Charter
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DATE ..-Friday,September 14,2018.?. ;,.;:,'.,;-::-.R
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