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LIN: Have you received the background report and recommendation reports from the Planning Department, and do you agree with their recommendations including the proposed conditions? ARAI: Yes, we have read the Director's report and we do appreciate the favorable recommendation and we also agree with the proposed conditions of approval. During our presentation we would like to speak to some suggested amendments to those conditions. LIN: Please go-ahead Mr. Arai. ARAI: Thank you again and good morning, everyone. As always, we appreciate the very comprehensive presentation by the Planning Department. First of all, we wanted to kind of set the proper perspective of why this subdivision is being proposed in this particular area. As staff mentioned these lands were part of a plantation skill sugar operation and that was part of the `O`okala Sugar Company that started back in the mid-1800's. And I'm sure Mr. Cross would probably correct me if I was wrong on that, but I tried to do my research. Unfortunate, the demise of the sugar plantation,there's a need now to kind of rebalance the land uses in the particular area which includes the subject property. The proposed 7 lots subdivision is part of that rebalancing that would take advantage, provide for small scale agricultural opportunities as well as single-family residential uses which is consistent with existing residential uses immediately mauka of the subject property along the Old Mamalahoa Highway. And that includes Kukui Camp Village,New Village as well as, I just lost the name, Milo Village. Sorry, a lot of villages, so. Anyway, as the staff mentioned the proposed subdivision would take advantage of the existing cane haul road "—"that crisscrosses the property. And as you can imagine being former cane haul roads, it's very, very, very robust and would more than be adequately serve the proposed residential traffic to be generated by this proposed development. We feel that the project site itself and the request of FA-la zoning is appropriate in this particular area as indicated by the Low-Density Urban designation by the General Plan. A similar designation by the Hamakua Community Development Plan(CDP) which defines the project site as within the Urban Growth Boundaries of the `O`okala area. And, um' let's see. And I should note that one of the things expressed within the Hamakua CDP is this following statement that I would like to read for you, and which basically defines why this is an appropriate request in `O`okala. And that particular policy statement from the CDP reads "to reduce rural sprawl and infrastructure costs, it [the Hamakua CDP] focuses future residential development in existing villages and towns and seeks to preserve large productive agricultural lands for agriculture by accommodating rural-residential development close to these urban centers". So, with that statement we believe that the requested FA-la zoning is the appropriate land use pattern for this particular area. So, with that all being said, we'd like to now speak to two (2)proposed changes and to the conditions of approval. Earlier the staff distributed a sheet that sort of outlines the language that we would like the Commission to consider. First of all, Condition I speak to the pro-rata share of improvements to the Old Mamalahoa Highway should it be initiated by the Department of Public Works and as you note at the very beginning of the condition it says, "The applicant, successors or assigns". Meaning that if the widening of the Old Mamalahoa Highway does not commence 4 EXHIBIT B(DRAFT)