The letter from Mayor Caldwell encourages the City Council chair to hold hearings this month to consider approving a resolution for a development agreement between the city and Halewai'olu Senior Development for an affordable senior housing project in Chinatown. The deadline to apply for funding from the Hawaii Housing Finance and Development Corporation is June 1, so approval of the development agreement is needed this month to allow the application process and environmental assessment to proceed on time. The mayor reiterates that public participation is important and over 16 public meetings have been held already, with more planned, but approval of the development agreement is the necessary next step to engage the developer and move the project forward.

1. OFFICE OF THE MAYOR
CITY AND COUNTY OF HONOLULU
530 SOUTH KING STREET, ROOM 300. HONOLULU, HAWAII 96813
PHONE: 808 768-4141 • FAX: 808 768-4242 • www.honolulu.pov
KIRK CALDWELL ROY K. AMEMIYA, JR.
MAYOR MANAGING DIRECTOR
GEORGETTE T. DEEMER
DEPUTY MANAGING DIRECTOR
March 4, 2016
c—i
The Honorable ErnestY. Martin
Chair and Presiding Officer ~‘ ~
Honolulu City Council ~
530 South King Street, Room 202 -o
Honolulu, Hawaii 96813 ~
..
Dear Chair Martin:
SUBJECT: Resolution Approving and Authorizing the Mayor or the Mayor’s
Designee to Enter Into a Development Agreement Between the City
and County of Honolulu and Halewai’olu Senior Development, LLC
In reference to your letter to the editor attached, I am encouraged to see you
clarify the Council’s intention to consider and deliberate the proposed resolution
submitted to you by Department of Community Services Director Gary Nakata on
November 6, 2015 D-758. It is critically important for the City Council to hold hearings
to consider the resolution this month.
The deadline for Michaels Development Company Michaels to apply to the
Hawaii Housing Finance and Development Corporation HHFDC for funding necessary
to proceed with the project is June 1,2016. Preparing the application is a cumbersome
process that requires resources, assurances, and time to complete.
Michaels must show to HHFDC that it has entered into a Development
Agreement and is ready and able to proceed with the project. Showing progress in the
Environmental Assessment process increases Michaels’ chances of securing the funds.
The Environmental Assessment process cannot begin without a Development
Agreement. If a Development Agreement is not accepted this month, Michaels will not
be able to make the June 1 deadline and would have to wait until the next round of
funding in January 2017. This delay could stop the project entirely, wasting years of
work and progress. Worse yet, this failure to act would further deprive Oahu’s seniors
of 151 desperately needed, truly affordable units.
MAYOR’S MESSAGE 21

2. The Honorable Ernest Y. Martin
Chair and Presiding Officer
March 4, 2016
Page 2
As you are aware, affordable senior housing in the Chinatown area is much
needed and desired. As you referenced in your letter to the editor, the City Council
adopted Ordinance 10-12 in 2010 calling for the creation of an affordable housing
project on River Street. The City Administration has worked diligently on this proposed
River Street project and agrees that public participation is key to ensuring that the
proper project is developed. To that end, we have held at least 16 public meetings and
presentations on the proposed project, including three before the Downtown
Neighborhood Board, planned an additional two meetings which will take place on
March 8 and March 14, and look forward to continued discussions at Council meetings
this month.
The approval of the development agreement and form of lease is the next step in
the process of developing this affordable senior rental and community center project in
Chinatown; it is not the last opportunity to address community concerns or the final
acceptance of the project by the City Council. Approval of the development agreement
provides Michaels with contractual rights and thus allows it to proceed with, among
other things, an Environmental Assessment and applications for financing subsidies
which are integral to the feasibility of the project.
The Environmental Assessment process will continue to provide the community
with further opportunities to give input on the project as the design is more fully
developed. Therefore, the approval of the development agreement is the crucial first
step towards fully engaging the developer on the long road of project development. If
all precedent conditions established in the development agreement are met, the mailer
would proceed towards the review and approval of a final lease of the land by the City
Council to permit construction to commence
Again, as always, we are willing to continue to work with the Council in providing
the City and County of Honolulu more homeless and affordable housing projects.
Please call me if you would like to discuss this or any other proposals that would benefit
our constituency.
Sincerely,
Kirk CaIdwell
Mayor
Attachment

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*tz’t~dutftiserMarch 3, 2016 ~ 770 ~ Check Traffic
Editorial I Letters
Chinatown plans need hearings
Posted February 17, 2016
February 17, 2016
In the editorial, “Don’t block Chinatown senior housing project” Star-Advertiser, Our
View, Feb. 9, the Star-Advertiser did not consider all of the circumstances before
passing judgment.
Injune 2010, the Council adopted Ordinance 10-12 that directed the mayor to create
an affordable housing project on River Street. That was six years ago.
On Nov. 9, the mayor announced a development agreement. As there were no
committee meetings in December, the earliest this proposal could have been
considered was last month. Our February meeting is scheduled in Kapolei, a location
that may limit public participation from the Chinatown community. The views of the
Chinatown community should be publicly heard, a position advocated by -
CouncilmemberCarol Fukunaga. Itwould be irresponsible to fast-track a $49 million
project without having such a discussion. - -
Therefore, to assert that the Council may have scuttled the development by stalling for
political purposes is false and misleading.
Ernest Y. Martin
Chairman and presiding officer, Honolulu City Council