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<br /> <br /> <br /> SCD Kona 108 LLC <br /> 700 Bishop Street, Suite 1000 <br /> Honolulu, HI 96813 <br /> (808) 599-5720 <br /> <br /> <br /> August 28, 2006 <br /> <br /> <br /> Mr. Scott Bell, President <br /> Association of Homeowners of Malulani Gardens <br /> c/o Clark Realty Corporation <br /> 75-5722 Kuakini Highway, #103 <br /> Kailua-Kona, 14196740 <br /> <br /> <br /> <br /> RE: The Salvation Army, suggested widening of Malulani Drive at Queen <br /> Kaahumanu Highway intersection and suggested re-location of mid-level <br /> road. <br /> <br /> <br /> Dear Scott, <br /> <br /> Stanford Carr and I really appreciate your assistance in the matter of our re-zoning request for the <br /> nearby lands at Kona Coffee Estates. We have been and continue to work hard on trying to <br /> accommodate the desires of the residents of Malulani Gardens. These desires appear to have changed <br /> somewhat recently, based on the oral and written comments by some of the residents as well as the <br /> petition signed by over 50 owners of Malulani Gardens. You were not present at tnnauy of the previous <br /> meetings and may not know the whole history of some of the issues, so I would like to mention this <br /> history. <br /> <br /> The 24 acres comprising Malulani Gardens ("MG") was re-zoned Residential in 1967 by Jack Ujimori, <br /> with the proposed access coming up the hill from Kuakini Highway. Queen Kaahumanu Highway <br /> ("QKH") cut off the lower portion of the property and access from Kuakini when it was built in the <br /> early `80's, and the State provided access from QKH to the MG parcel. As QKH is a "Limited Access" <br /> highway, the State Department of Transportation Highways Division ("DOTH'~ designated the <br /> highway access from QKH into MG parcel as the access to be used not only by the MG parcel but also <br /> by the Kanuha Ohana parcel and the parcels which comprise Lowes and the proposed KCE. <br /> Hawaiian Development Corporation ("HDC") agreed to buy the MG parcel and the KCE parcels in <br /> 1987, and subsequently sold the MG parcel to Brian R. Cook ("BRC") in 1992. At the time of that sale, <br /> HDC placed an easement across the MG parcel in favor of the Kanuha parcel, the Lowes parcel and the <br /> <br /> KCE parcels, and a condition of the sale was that BRC had to dedicate that road when it was built. <br /> BRC proceeded to plan and develop MG and HDC proceeded to plan, entitle and develop the Lowes <br /> commercial lands plus the lands now planned for KCE. Note that HDC had planned to build additional <br /> commercial improvements plus over 400 housing units for the local market on the 108 acres now <br /> planned for the low density KCE. <br /> <br /> HDC obtained "Commercial" zoning for the approximately 18 acres by Lowes in 1998, at which point <br /> less than a dozen homes had been built and sold in MG. All existing MG owners were notified at that <br />