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In `C®ur~es ~cti~n" under des®rt~-~r®file-IV~rth ~~hala ~eevalc~~t~ ~r~as ~t N~~h~k~rra ccrrr~,~tly zon~~ f®r r~sgrt u~~ Chalon International Inc., aJapanese-based, diversified hospitality company, is the largest landowner in North Kohala. In 1993, Chalon obtained rezoning of approximately 15 acres of land within a 600+ acre project for the development of a 200 to 240-unit lodge hotel at Mahukona. No activitytowards the development Qf the lodge hotel has occurred to date In a recent Third Circuit Court decision by Judge F~onald Ibarra concerning a similar 15 acre rezoning in South Kona, this~pe of "spot rezoning" h s been d fined an arbitrar zonin action b which a m I area within a Iara~ar~a is siC~~,l~d out fo.~ use classification different from and inconsistent with the surrounding areas and was declare. din ille~,Fuse of staff land use law According to Chalon's 2001 Annual Progress Deport to the County of Hawaii Manning department (enclosed), Chalon claims that the ra ~i~dly ch.-angin international investment marks cou led with the volatil stock markets has re ulted in ver unsta4.~le inves went climate for resort aro~ects and that the under performing Japanese economy has further necessitated a rolaortional distribution of Chalon ~-i waii revenue to s h rent J ane e bas d com nie o rational re uirements in Jean. Chalon International is now called Surety Kohala Corp and is curry under~oin~, ban kru t~roceedinp Considerin th c rr nt financial, trouble of Chalon Int rnation I and he fact hat no ivit t w rds the develo went of the Mahukon od e / h el has curred o date. Alon with the current le I inter tation f "s of nin " tha mi ht d cl re the hotel ills al ho I the roceed with their 200- 0 room Mahuk na Lod We recommend in light of the above findings that the County: In `Courses Of Action" under Resorts-Profile-North Kohala ~~valu~ ~r~a~ ~t ~ ~~®n~ ~~rren l ~ f®r r~ r u