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I <br /> DocuSign Envelope ID: 17C1 BDE8-1 D96-4F8D-8958-90EE88AB2672 <br /> i <br /> deal with. So, we had to actually create internal memos to kind of resolve that until we changed <br /> our subdivision code. So, at this point, we have pretty much said that if you want to do a CPR in <br /> a particular zoning, you need to meet the standards of a subdivision. So, if you're in the <br /> agricultural zoning and you want to do a CPR on a 5-acre lot that's zoned Ag-1— <br /> VITOUSEK: Hold on, hold on. Hold on. <br /> DARROW: Okay. <br /> VITOUSEK: We just lost Commissioner Kanuha. Okay, there he is. Sorry about that. <br /> DARROW: They can do up to five units because the zoning allows for, you know, five lots <br /> right. But they have to meet that now. So, in this particular case, we have one of those remnant <br /> CPRS that happen. The approval isn't with the Planning Department, it's with the Real Estate <br /> Commission where they submit an application and they, they get approval through that. What <br /> happens, the other problem that consists with the Planning Department as a result of these, is <br /> because its one property owned by a particular amount of owners. Not so much in an apartment <br /> complex do we run into this problem, but on agricultural land we run into it on a consistent basis <br /> and that is one of the owners might be doing something that is in violation of the zoning code, <br /> yet we have multiple owners of the same TNIK. And so, there was a time where they were all <br /> getting drawn into the violation because they were all part owners. But again, that's, we kind of <br /> resolved a lot of those issues at this point. <br /> I hope that clarifies that. I don't know. Maija, you might want to chime in if I missed something. <br /> JACKSON: Yeah,just the last thing that I would add is the same thing with an owner wanting to <br /> build a house on a CPR unit. Through Department memo, we allow an individual owner to do <br /> that without getting landowner authorization from the other CPR unit owners. <br /> DARROW: Yeah, there was a time where we didn't have that guidance and what would happen <br /> was,you know, if your neighbor wasn't being very neighborly, they could choose not to sign off <br /> and give authorization, which obviously isn't really fair. <br /> VITOUSEK: But that's only in the form of an internal memo at this point and not actually <br /> codified? <br /> DARROW: Well, again, we're dealing with an issue that's actually something that was before <br /> our changes in the Code that was approved through the Real Estate Commission. <br /> VITOUSEK: Right. <br /> DARROW: We, we still, so yeah, we have a memo that deals with the CPR units previous. But, <br /> moving forward now, they pretty much have to comply with the subdivision code which resolves <br /> a lot of problems for us. <br /> VITOUSEK: Okay. Mahalo. <br /> 7 <br /> EXHIBIT B <br />