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� a PROJECT DESCRIPTION Project Location The project, hereinafter referred to as the "project site", is located in the resort town of Kailua-Kona, approximately .5 miles south of the Alii Drive and Hualalai Road intersection. The project is, bounded by Alii Drive on the west and Walua Road on the east, is approximately 200 feet south of the Alii Drive and Walua Road intersection (Exhibit 1). Project Objective This application is for the development of TMK 7-5-18:19 at 75-5874 Walua Road in Kailua-Kona, HI to its highest and best use. The objective of this project is to create approximately 10,000 square feet of professional office space within the subject parcel. The exact mix of professional tenants is not known at this time. However, the intent of the rental marketing effort will be to target a combination of either medical, dental, engineering, architectural, real estate and/or related professionals. The intent is not to create a village retail center. Accompanying this permit application is a related change of zone application from RM-1 to CV-10. Present Land Use The project site has a State Land Use Classification designation of Urban and a Hawaii County zoning designation of RM-1. The Hawaii County General Plan Land Use Pattern Allocation Guide Map indicates the site as Medium Density. The Medium Density designation is described in The General Plan for Hawaii County as being suitable for village and neighborhood commercial and residential functions. The project site is surrounded by residential, multiple residential, commercial, and resort zoned property. It is bounded by Walua Road on the east, Alii Drive on the west, a large privately owned trust parcel to the south, and a privately owned village commercial parcel to the immediate north. The subject parcel has been owned by the Smythe family, a well known kamaaina family that originally migrated from Maui , and its successors for the past 50 years. Although it has served as the primary residence for the Smythes from 1947 to 1988, it has been used for rental purposes for the last 8 years. There are two existing older wooden buildings on the project site with four rental units. One building contains a studio, a one-bedroom and a two-bedroom apartment. The other building is a one-bedroom cottage with an attached garage. There is an additional wooden shed that is being used for storage. All structures on the project site will be demolished prior to construction. EXHIBIT