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CARR SMITH: Okay, thank you so much. I was asked to mention Shannon Rudolph failed to
<br />mention that she's been a resident of Kona for over 40 years, so she wanted to make sure that you
<br />folks were aware of that, so that's on the record now. All right, Commissioners—thank you all for
<br />your testimony—Commissioners, do you have any questions for the testifiers? Mr. Van Pernis.
<br />VAN PERNIS: Thank you. I have the same question I had for staff, of Mr. Wong Yuen and
<br />Mr. Bisgard. Doesn't this limit accessory uses on public land? And if so, what is the arrangement
<br />for private use of public lands?
<br />WONG YUEN: So—Mr. Van Pernis, thank you—the arrangement, if I got your question correctly,
<br />it's arrangement for private use of public land, okay, so the; disposition would be through a long-term
<br />lease. We would want that all interested parties, so it',s-not, it._would be, would be able to present to
<br />us a request for proposal, an RFP, that we would respond to and- evaluate on a case-by-case basis.
<br />That would be the vehicle by which the State would issue a lease and collect rents due us. I hope
<br />that answers your question. If not, I can listen in' and provide more information as I can.
<br />CARR SMITH: Mr. Van Pernis, does that answer, your question?
<br />VAN PERNIS: Not totally. Is compensation paid to the, State or some entity, public entity, for the
<br />private use of public land?
<br />WONG YUEN: Yes, the compensation is: through rent fee to the State.
<br />CARR SMITH: Mark?
<br />WONG YUEN: Okay,'andlhere, now, initially'�pkay, here is another answer I can, maybe I'll ask
<br />Craig to chime-in-on.particulars there, but; also, in certain leases, there are certain minimum annual
<br />guarantees, their -targets that are contained n- these leases. So you might have a—
<br />VAN PERNIS: Does that -include compensation? —
<br />WONG YUEN:—group compensation, you said?
<br />VAN PERNIS: The, is_;compensaton included in the guarantees?
<br />WONG YUEN: Okay, so, in, in addition—okay, let me, let me just say it this way, and then I'll try
<br />to zero in on what you are asking me better, but, we get a flat land lease straightforward agreed-upon
<br />rate for the lease of the land. Then the business itself based on its income on an annualized basis, we
<br />get, we can structure it so that we get a percentage of that. Then there are other, there could be other
<br />fees or, or, that are applicable in the lease. And I'm not, you know, too familiar; maybe if Craig can
<br />comment on that, I'll have him do that. But I don't know if that answered, you are saying, you
<br />know, I'm not sure if I answered your question.
<br />VAN PERNIS: Paid to the State as part of private use of public land at the airport. Money paid.
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