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4. Continental to create 1 bulk lot to initially create open area, which shall be <br />exempt from SMA assessment and SMA Major and/or Minor permit <br />requirements, and which may be subdivided and/or rezoned in the future <br />pursuant to the then applicable requirements of the Zoning Code and <br />Subdivision Code. This bulk lot shall count against the total of pre- <br />existing lots herein. <br />5. Undevelopable Lots: If any roadway lots are created, they shall not count <br />against the number of lots Continental is allowed to subdivide herein. <br />Continental shall create an easement for the Japanese Cemetery, and create <br />a lot for the Chinese Cemetery with appropriate easements for access. <br />This cemetery easement and cemetery lot shall not count against the <br />number of lots Continental is allowed to subdivide herein. <br />6. Tax Deed Lots: If any of the tax deed lots acquired by Continental are <br />redeemed prior to December 6, 2002, Continental shall not be allowed to <br />count that lot in the total of pre-existing lots. <br />B. SMA. Continental shall submit separate SMA Assessments for all development <br />within the Special Management Area, including, without limitation, the development proposed <br />within the SMA/SLU Urban District and SMA/SLU Agricultural District. The processing for the <br />Continental Lands within the SMA shall be subject to the following provisions. <br />., 1. Lots within the SLU Urban District: <br />a. Continental shall process a SMA Major permit application and a <br />current certified shoreline survey for a maximum of twelve (12) <br />lots (Lot 21 through and including Lot 30 within the SMA and <br />Urban District, and Lot 41 and Lot 43 within the SMA and <br />Agricultural District). The Planning Director hereby agrees in <br />principle that the creation of these 12 lots, with the use restrictions <br />and protections provided in this Agreement, and appropriate <br />conditions, can meet the criteria for a SMA Major Permit, and the <br />Planning Director shall provide a recommendation consistent with <br />this Agreement on the SMA application to the Planning <br />Commission. If the Planning Commission approves the SMA <br />Major Permit, the County of Hawaii shall expeditiously process the <br />preliminary plat and final subdivision approval, consistent with the <br />terms of the SMA approval. <br />b. The twelve (12) lots created within the Urban District and within <br />the SMA shall be limited in density to one single-family dwelling <br />per lot, together with accessory uses, guest quarters and other <br />Pi <br />2019077.L0541 51-00002 4/12/2002 13 1 1 <br />