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HomeMy WebLinkAboutCOM 0209.000 2012-2014 BRENDA J. FORD ° Phone: (808) 323-4277 Council Member ' '���'='-'��� ) District 6 - Portion of North �' - Fax: (808) 329- 4786 Kona, South Kona, Ka`u, & ''�dF,N.f E-Mail: bford@co.hawaii.hi.us Greater Volcano Area HAWAII COUNTY COUNCIL County of Hawaii West Hawaii Civic Center 74-5044 Ane Keohokalole Hwy. Kailua-Kona, Hawaii 96740 DATE: March 8, 2013 TO: J Yoshimoto, Chairperson, and Members of the Hawai`i County Council FROM: Brenda J. Ford, Council Member r SUBJECT: Discussion Of 1250 Oceanside Partners, A Hawai`i Limited Company, Debtor And Debtor-In-Possession (Case No. 13-00353), Front Nine, LLC, A Delaware Limited Liability Company, Debtor And Debtor-In-Possession (Case No. 13-00354), And Pacific Star Company, LLC Dba Pacific Star Properties, An Arizona Limited Liability Company, Debtor And Debtor-In-Possession (Case No. 13-00355), [Also Known As Hokuli`a] In The United States Bankruptcy Court, District Of Hawai`i, Honolulu, Hawai`i Regarding Their Filing For Relief Under Chapter 11 Of The Bankruptcy Code On March 6, 2013. Please place this matter on the agenda for March 28, 2013 for discussion. This matter may require an Executive Session as well as a public discussion. I've attached copies of the: • "First Day" Motions and Applications • Voluntary Petition • List of Creditors • Press release from Bloomberg.com BJF/la Comm. N a.o ` Ref.To: Serving the Interests of the People of Our Island Ref.Date MAR 1 2 i 013 Hawaii County Is An Equal Opportunity Provider And Employer Bloomberg.com 1250 Oceanside Partners Files for Bankruptcy Protection By Dawn McCarty- Mar 7, 2013 1:36 PM GMT-1000 1250 Oceanside Partners and two affiliates, owners of more than 1,800 acres of land on the Island of Hawaii, filed for bankruptcy to restructure more than$500 million in debt. Oceanside listed assets of more than$10 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Honolulu. Affiliates Front Nine LLC and Pacific Star Co. also sought court protection. The restructuring will"allow the debtors' development projects to proceed, and will permit their respective creditors to receive payment in excess of the liquidation value of their claims," Craig Pickett, the companies' sole executive officer, said in court papers. Assets acquired for the development of Hokuli'a, a luxury real estate project, include a 3 1/2-mile tract along the Kona coast, Pickett said. Oceanside's creditors include the County of Hawaii, with a claim of$20 million, and Ackerman Ranch Inc., with a claim of$13.4 million, according to court papers. Developer Lyle Anderson controlled the three companies until 2008, when Bank of Scotland LLC declared a default on about $1 billion in debt and exercised its right to replace the directors, including Anderson. The debt was secured by projects in New Mexico, Arizona and Hawaii. Sun Kona Finance I LLC acquired the portion secured by Hawaiian assets in December. The total balance due on that debt was about$625.2 million, according to court papers. The case is In re 1250 Oceanside Partners, 13-00353, U.S. Bankruptcy Court, District of Hawaii (Honolulu). To contact the reporter on this story: Dawn McCarty in Wilmington at dmccarty@bloomberg.net To contact the editor responsible for this story: John Pickering at jpickering @bloomberg.net DON JEFFREY GELBER JONATHAN B. GELBER JOSEPH A. DANE Gelber, Gelber&Ingersoll 745 Fort Street, Suite 1400 Honolulu,Hawaii 96813 Telephone: (808) 524-0155 Fax: (808)531-9693 Email: D.J.Gelber @gelberlawyers.com Email: Jgelber @gelberlawyers.com Email: Jdane @gelberlawyers.com Proposed Attorneys for Debtors and Debtors-in-Possession UNITED STATES BANKRUPTCY COURT DISTRICT OF HAWAII In re Case No. /3- oU35 1250 OCEANSIDE PARTNERS, a Hawaii (Chapter 11) limited partnership, Debtor and Debtor-in-Possession In re Case No. �3 DoaW FRONT NINE,LLC, a Delaware limited (Chapter 11) liability company, Debtor and Debtor-in-Possession In re Case No. l3 `6o3 SS- PACIFIC STAR COMPANY, LLC dba Pacific (Chapter 11) Star Properties,an Arizona limited liability company, Debtor and Debtor-in-Possession 2303895c DECLARATION OF CRAIG PICKETT IN SUPPORT OF "FIRST DAY" MOTIONS AND APPLICATIONS LS, S3 ankrup" y Court rt - Hawaii #13-00353 Dkt ,' 2 Filed 03,106113 page of 5 CRAIG PICKETT declares, under penalty of perjury, that: 1. I am the sole executive officer of 1250 Oceanside Partners, Front Nine, LLC, and Pacific Star Company, LLC, the debtors and debtors-in- possession in these proceedings (each a "Debtor," and collectively, the "Debtors"). I am also the designated individual responsible for the performance of the duties of the Debtors as debtors-in-possession. 2. I make this Declaration in support of the various "first day" motions and applications filed in these Chapter 11 proceedings. 3. Except as otherwise indicated, all of the facts set forth in this Declaration are based upon my personal knowledge and my review of relevant documents. I am competent to testify to the matters herein set forth and, if called upon to do so, I could and would testify to the facts set forth herein. 4. Part I of this Declaration describes my background and qualifications. Part II of this Declaration describes the procedural background of the Debtors' bankruptcy cases. Part III briefly describes the Debtors, their relation to one another, and their business operations. Part IV of this Declaration provides an overview of certain of the setbacks and events that disrupted the Debtors' plans to develop a luxury residential subdivision and related amenities. Part V of this Declaration describes the major financing 2303895c.docx 2 ,S. Bankruptcy Court ... F ?,a#y..t'. it13 .03; 3 akt it 2 Filed 03S06/13 P e 2 of 50 provided to the Debtors, the defaults in repayment, and the predecessor lender's exercise of its contractual right to remove and replace the directors of the Debtors. Part VI describes the events and circumstances leading to the filing of the Debtors' Chapter 11 petitions. Part VII sets forth the relevant facts in support of the various "first day" motions and applications filed concurrently herewith. I. BACKGROUND AND QUALIFICATIONS 5. I received a Bachelor's Degree in Economics from the University of Utah and a Master Degree in Business Administration from the University of California at Los Angeles (UCLA). I am now an inactive Certified Public Accountant. 6. Prior to my retirement as an accountant in June 2007, I was a Managing Partner with Ernst & Young LLP, an international firm of accountants and consultants, for over 21 years. My practice focused on public companies, venture capital, private equity firms, and multi-national firms, including several S&P 500 companies. The clients of the offices I managed were principally in California and the Western United States. 2303895c.docx 3 7. Since my retirement from Ernst & Young, I have directed the passive investment activities of a small number of private clients. I am on three boards of directors, two for companies headquartered in Singapore and one in Houston. One of the firms for which I provide services is Sunchase Holdings, the principal of which is also one of the principals of Sun Kona Finance I, the Debtors' major secured creditor. II. PROCEDURAL BACKGROUND 8. The Debtors have filed petitions for relief under Chapter 11 of the Bankruptcy Code. 9. The Debtors continue to operate and manage their businesses, as debtors-in-possession, pursuant to sections 1107 and 1108 of the Bankruptcy Code. 10. No creditors' committees have been appointed in these cases. No trustees or examiners have been appointed. III. THE DEBTORS, THE RELATIONSHIP OF THE DEBTORS, AND THE DEBTORS' BUSINESS OPERATIONS 11. 1250 Oceanside Partners ("Oceanside"), a Hawaii limited partnership, Front Nine, LLC ("Front Nine"), a Delaware limited liability 2303895c.docx 4 b.. ?k=up . t Ccuit -- /,,. it s' t fit,:: Hr) lr 13 1 1, , ii of F. company, and Pacific Star Company, LLC ("Pacific Star"), an Arizona limited liability company, are related companies. Substantially all of the assets of each Debtor are located in the Kona area of the Island of Hawaii. 12. The Debtors were formed by developer Lyle Anderson ("Anderson") and were part of his development "empire," which included developments in Hawaii, Arizona, New Mexico, and Scotland. Anderson controlled the Debtors from their formation until January, 2008, when the Debtors' primary secured lender declared a default and exercised its contractual right to remove and replace the directors of the Debtors. Anderson has had no involvement with the Debtors or in their respective businesses since October, 2008. 13. The Debtors collectively own over 1,800 acres of land and other assets acquired in connection with a large-scale luxury real estate development on the Island of Hawaii, in the North Kona and South Kona districts, near Kealakekua Bay. The Debtors' property stretches for three and one-half (3-1/2) miles along the Kona coast and is of significant historic and cultural importance. 14. The Debtors' principal development is known as "Hokuli'a" or the "Hokuli'a Project." Oceanside is the developer of Hokuli'a. Oceanside's 2303895c.docx 5 . !3,)1-0 iF coutt - r c ci .z e 0. >1<.� e3° E' .' n.,d assets include most of the real estate of the Hokuli'a project not yet conveyed to third parties. Front Nine's assets include a large number of the undeveloped platted lots in Phase 2 of the Hokuli'a Project. Pacific Star's assets consist of a large tract of land referred to as "Keopuka" or the "Keopuka Project," which is in a preliminary planning stage and which lies near, but not immediately adjacent to, Hokuli'a. 15. Anderson planned to develop Hokuli'a in three phases on approximately 1,400 acres of land. When complete, the project would have included approximately 730 residential lots, a 27-hole golf course and club house, a members' lodge and spa, a beach activity center, tennis courts, and a shoreline park. When Oceanside acquired the real estate, applicable zoning laws prohibited single family residences from being built on the land. Accordingly, Oceanside had to obtain, among other things, (a) a re-zoning from the County of Hawaii (the "County") (generally from "Agricultural (A-5a)" and "Unplanned (U)" to "Agricultural (A-la)" and "Resort (V-6.0)"); (b) various permits and approvals from government agencies; and (c) a number of construction bonds. Oceanside also had to construct certain onsite and offsite infrastructure improvements, and prepare an environmental impact statement. 2303895c.docx 6 16. During the mid-1990's, the County granted various permits, approvals, and ordinances relating to the development of Hokuli'a. The development was subject to certain conditions, including the obligation of Oceanside to construct and dedicate to the County a bypass highway between Keauhou and Captain Cook (the "Bypass Road"), in order to alleviate chronic traffic problems in the Kona region. 17. In addition to government approvals and agreements, Oceanside entered into a number of agreements with private owners of land near Hokuli'a regarding matters such as access rights, utilities easements, and well sites. Among these agreements are: (a) An agreement between Oceanside, Gary Yamagata, and Yamagata Development Company, regarding Oceanside's purchase of land for the construction and operation of an electric substation (the "Yamagata Agreement"). Mr. Yamagata and Yamagata Development Corporation have contended that Oceanside is in default on the Yamagata Agreement, and have demanded mediation in a letter dated November 1, 2012. (b) A series of agreements among Oceanside, the Water Board of the County of Hawaii, and the trustees of the E. Jean Greenwell Trust, 2303895c.docx 7 ..3.a...' pant,z ` 1., 4£ ", F 3=1 ; oxi 5...tp^� ) !t 1,-77 d.''ey{fl:.:'4 a neighboring land owner, relating to the construction of a potable water well site (sometimes referred to as the "Kalukalu Well") on the Trust's property. (c) An agreement with Ackerman Ranch, Inc. ("Ackerman"), regarding rights of access over various parcels of land and the purchase by Oceanside of a 20,000 square-foot parcel of land for a potable water well to serve a part of Hokuli'a. Ackerman, which is also one of Oceanside's secured creditors, has contended that Oceanside has failed to meet certain conditions precedent to Oceanside's right to purchase the well site parcel, and that Oceanside's rights in this regard have expired. 18. On or about September 18, 1999, the County granted final subdivision approval for the first phase of development of Hokuli'a ("Phase 1"). Oceanside commenced sales of lots in Phase 1. On or about December 1, 2000, the County granted final subdivision approval for the second phase, and Oceanside commenced sales of lots in Phase 2. Construction of the golf course began in 1999, and an 18-hole course opened in June 2002, and remains in operation. 19. The golf course was among the amenities planned to be offered to members of The Club at Hokuli'a, Inc. (the "Club"). Club membership was included with the purchase of Hokuli'a lots, and all lot 2303895c.docx 8 € ate � §.iii 1 v< '�,i� ti.: Y,:10,-)"# 8 e 5 purchasers also became Club members. After the County granted Phase 1 subdivision approval in 1999, Oceanside entered into an agreement (the "Club Transfer Agreement") with the Club regarding the construction, operation, and eventual transfer to the Club of the golf course, the golf clubhouse, a beach activity center, tennis courts, and other related facilities (the "Club Facilities"). The Club Transfer Agreement provided a procedure pursuant to which control over the Club and the Club Facilities would be turned over to the members of the Club, and set a date of January 1, 2010, for such turnover, unless five percent or more of the Hokuli'a home sites remained unsold at that time. 20. As related in more detail elsewhere in this Declaration, various setbacks befell Oceanside and the completion and turnover of the Club Facilities did not occur as anticipated. Accordingly, Oceanside, Oceanside's secured lender, a committee of Club members, and the Hokuli'a Community Association, Inc. (the "HCA") entered into a Letter of Intent, dated December 13, 2011, which set forth, among other things, the terms and conditions under which responsibility for the completion and management of the Club Facilities would be turned over to the Club, and certain other property would be conveyed to the Club, the HCA, or both. The Debtors' primary secured lender agreed to release these properties from the lien of its mortgage. 2303895c.docx 9 . .. Bankatplov Court °ar=c.,, 53 Dtg ilt 2 t of 21. Pursuant to the Letter of Intent, Oceanside (and its general partner), the Club, and HCA entered into an "Umbrella Agreement" dated March 30, 2012. Pursuant to the Umbrella Agreement, Oceanside turned over responsibility for the completion and management of the Club Facilities to the Club. Oceanside was released from, among other things, funding the cost of completing the Club Facilities and establishing a capital reserve for the Facilities; covering any operating deficits of the Club; and completing certain road and other improvements within Phase 1 of Hokuli'a. Oceanside agreed to convey: (1) to the Club, the golf course lots and the lots upon which other amenities were or are expected to be constructed; (2) to HCA, the "Common Areas" within Phase 1, as that term is defined in the Amended and Restated Declaration of Covenants, Conditions, and Restrictions for Hokuli'a, dated December 4, 2006 (the "Declaration"); (3) to the Club and HCA, jointly, a certain number of lots within the project; and (4) to Hokuli'a Community Services, Inc., a non-profit corporation formed by the Club and HCA, certain shared infrastructure facilities. Subsequently, the Club and HCA agreed to sell the lots they received under the Umbrella Agreement to an affiliate of the Debtors' principal secured lender, in exchange for cash and the affiliate's obligation to complete or fund the completion of certain improvements for the 2303895c.docx 10 3. Bankruptcy Court rt Hawaii 1113-00353 3.... <\ 2 Hied 4 Oa/(.G/13 sy .e.. 10 of 50 benefit of the Club and HCA members (and which indirectly benefit the Hokuli'a Project). 22. Some of the properties covered by the Umbrella Agreement were conveyed to the Club and HCA in separate closings on April 20, 2012, and June 22, 2012; other properties lack legal description and await subdivision approval from the County (which is currently in progress) before deeds may be recorded. 23. As described below, Oceanside and its affiliates, in the course of developing the project, became enmeshed in a number of lawsuits and, for this and other reasons, the project has never been completed. IV. SETBACKS AFFECTING THE DEBTORS' BUSINESS 24. Several adverse events caused the development of Hokuli'a to be significantly delayed. These events, in turn, caused the Debtors to default on certain of their financial and other obligations. A. The Kelly Litigation and Settlement 25. In September, 2000, after work on Hokuli'a had commenced, a heavy rainstorm hit the Kona area, causing silt runoff to flow from the development site into the ocean adjacent to Hokuli'a. Shortly thereafter, on 2303895c.docx 11 October 30, 2000, individuals and a non-profit organization commenced an action in the Third Circuit Court of the State of Hawaii against Oceanside, the State Department of Health, the State Department of Land and Natural Resources, and State Land Use Commission, the County, and other defendants. The case, styled Kelly, et al. v. 1250 Oceanside Partners, et al., Civ. No. 00-1- 0192K, Third Circuit Court, State of Hawaii (the "Kelly Litigation"), alleged claims against Oceanside based on public nuisance, violation of burial site protection laws, desecration of graves, violation of procedural due process, violation of the Coastal Zone Management Act, and violation of the plaintiffs' rights of access. The plaintiffs also alleged that the approvals granted to the Hokuli'a Project violated Chapter 205 of the Hawaii Revised Statutes, the state land use law. 26. In November, 2000, the Court issued a temporary restraining order halting the development until procedures could be put in place to prevent damage to coastal waters from storm-generated run-off. 27. Subsequently, in September, 2003, the Court issued findings of fact and conclusions of law determining and holding that the County had violated the state land use law when it approved the Hokuli'a Project. Oceanside was permanently enjoined from pursuing any further construction activities or 2303895c.docx 12 �_ .�d B(.nKa 4*.,y Cow l " ? b<v?...._ r §�� � ' , '<� 3�;= ' t ➢�.".a . .` ..$.s,f� .� ``.&Ey°�; ,�c €r development of Hokuli'a, with the exception of the golf course and the shoreline park, until it had obtained reclassification from the Land Use Commission. The County was enjoined from issuing any further permits to Hokuli'a until Oceanside complied with the Court's order. Oceanside appealed the Court's ruling. 28. In March, 2006, while the appeal was pending, and two and one-half years after development had been permanently enjoined, the parties to the Kelly Litigation entered into a Settlement Agreement concerning the conditions under which development of Hokuli'a could continue. In general terms, the Settlement Agreement provided, among other things, that Oceanside would: (1) apply to the Land Use Commission for a land use re-classification; (2) promptly complete construction of the Bypass Road; (3) limit the development of Hokuli'a to no more than 665 homes or home sites; (4) eliminate plans to construct the "members' lodge"; (5) construct or cause to be constructed affordable housing units within the Kona area; (6) contribute land and construct facilities for a Kona Scenic Park; (7) form a non-profit entity to undertake the preservation and maintenance of certain historic and cultural sites within Hokuli'a and contribute a portion of the proceeds from lot sales to the entity; and (7) establish and fund a "Hokuli'a Foundation," the purpose of which would 2303895c.docx 13 include advancement of affordable housing, health care, and Native Hawaiian culture. The Settlement Agreement also addressed the disposition of certain burial sites that had been inadvertently uncovered during development, and access rights of descendants seeking entry to Hokuli'a. 29. The Circuit Court, after being presented with the Settlement Agreement, partially vacated its earlier judgment, in order to allow the resumption of development of Hokuli'a and to permit lot sales to proceed. Some lots were sold in 2007, but market conditions worsened and Oceanside suspended all sales of Hokuli'a lots in January, 2008, after its senior lender declared a default. In November, 2009, Oceanside suspended its land sales registration with HUD and the State of Hawaii. B. Coupe Family Litigation Regarding the Bypass Road 30. As a condition of obtaining certain regulatory approvals, and among many other conditions, Oceanside was required by the County of Hawaii to construct and dedicate the Bypass Road (which is intended to run between Keauhou and Captain Cook). On April 20, 1998, the County and Oceanside entered into a Development Agreement setting forth (among other things) the respective responsibilities of the parties and the procedure to be followed in 2303895c.docx 14 ;.i?. 1.. z . Y$l..F.)it4. .. � I�" .... . .va & .s 1:3-003t 2 3s.�.'.a } tl?E-)l f,B R-19 ?3 50 acquiring the required property (including use of the County's power of eminent domain) and in constructing the Bypass Road. 31. After Oceanside was unable to negotiate a private purchase of certain land owned by the C&J Coupe Family Ltd. Partnership (the "Coupe Family"), the County filed an action in October, 2000, in the Third Circuit Court of the State of Hawaii, against the Coupe Family seeking condemnation of the land for the Bypass Road, thereby commencing litigation lasting ten years and producing three published opinions of the Hawaii Supreme Court. 32. In December, 2008, in the first appearance of the case before the Supreme Court, the Court concluded that the County had not adequately demonstrated that the purported public purpose of the condemnation was not a "pretext" for a private benefit.2 The Court remanded the case for a determination of whether the County's asserted public purpose in taking the land I See County of Hawaii v. C&J Coupe Family Ltd. P'ship, 119 Haw. 352, 390 (2008); County of Hawaii v. C&J Coupe Family Ltd. P'ship, 120 Haw. 400, 403 (2009) (appeal regarding a dispute over statutory fees in condemnation actions); County of Hawaii v. C&J Coupe Family, Ltd. P'ship, 124 Haw. 281 (2010). Oceanside was made a third party defendant in the initial condemnation action, and was joined as an indispensable party in a subsequent, superseding, action. 2 The Third Circuit Court, in a ruling not appealed to the Supreme Court, had also invalidated provisions of the Development Agreement relating to the right of Oceanside to be reimbursed for its costs in constructing the Bypass Road. 2303895c.docx 15 was pretextual. County of Hawaii v. C&J Coupe Family Ltd P'ship, 119 Haw. 352, 390 (2008). Upon remand, the Circuit Court concluded that the County's avowed purpose in the taking —the establishment of a public highway—was not pretextual and was a valid public purpose. This conclusion was upheld by the Supreme Court on appeal. County ofHawai'i v. C&J Coupe Family, Ltd P'ship, 124 Haw. 281 (2010). 33. Oceanside substantially completed construction of the north half of the Bypass Road at a cost of approximately $36 million, and that portion of the Bypass Road is currently in use by the public. All parcels owned by the Debtors which comprise the Bypass Road have been conveyed to the County, and, in connection with the settlement of the AMICO Litigation discussed immediately below, the funding for the completion of the Bypass Road has been secured. C. The AMICO Litigation 34. Oceanside, as the developer of Hokuli'a, entered into a number of agreements providing that it would construct certain improvements (principally relating to utilities) for the benefit of residential lots within Hokuli'a. Oceanside also agreed to construct certain recreational amenities, including a golf course, tennis courts, a beach club, and related support facilities. In 2303895c,docx 16 3. i s 3si k_ ai tat ,) I Hr3wm I.± € f 3 _,.5 Mt Hed connection with Oceanside's obligations to construct the improvements and amenities, Oceanside obtained bonds issued by American Motorists Insurance Company ("AMICO"). Oceanside also obtained one or more bonds issued by AMICO relating to Oceanside's obligation to construct the Bypass Road. 35. For a number of reasons, including the Kelly Litigation and the Coupe Family lawsuit described above, Oceanside was unable to fulfill its obligations under the bonds in a timely manner. In April, 2010, three lawsuits were filed in the State and Federal Courts concerning the bonds issued by AMICO (the "AMICO Litigation").3 On September 23, 2011, Judge Ibarra of the Third Circuit Court and Magistrate Judge Chang of the United States District Court ordered a joint settlement conference concerning the AMICO Litigation. After a number of settlement conferences, the parties to the AMICO litigation entered into a Settlement Agreement dated as of March 2, 2012 (the "AMICO Settlement"). 36. Pursuant to the AMICO Settlement: 3 The lawsuits were (1) American Motorists Insurance Company v. The Club at Hokuli'a, Inc., et al. (Civ. No. 10-00199SOM-KSC, United States District Court for the District of Hawaii; (2) The Club at Hokuli'a, Inc., et al. v. American Motorists Insurance Company, et al. (Civ. No. 10-1-116K, Third Circuit Court of the State of Hawaii); and (3) County of Hawaii v. 1250 Oceanside Partners, et al. (Civ. No. 10-1-0157K, Third Circuit Court of the State of Hawaii). 2303895c.docx 17 Y _v §� 3 a.? :. -. E.,.1...!pt ,t .?otut E 'r� c. i° i; '$!-t om , d r no (1) AMICO agreed to pay $12.5 million to the County to be used for the construction of the Bypass Road. (2) Oceanside and its general partner executed a $20 million non-recourse promissory note dated March 2, 2012 (the "County Note") in favor of the County, secured by a first mortgage on certain of Oceanside's and Front Nine's property and, in connection therewith, the County released Oceanside from its obligation to construct the Bypass Road, which would instead be completed by the County. The County Note is due and payable two years from the date of the closing contemplated by the AMICO Settlement. (3) Oceanside dedicated to the County both the north portion of the Bypass Road (which has been completed) and the lots over which the south portion of the Bypass Road is to be constructed. (4) The County suspended certain of Oceanside's improvement obligations, unrelated to the Bypass Road, until Oceanside makes a decision concerning the nature and scope of the Hokuli'a project when development resumes. D. Lot Purchaser Litigation 37. Oceanside is a party in a number of lawsuits filed by purchasers of lots within Hokuli'a. Some of these lawsuits were filed by 2303895c.docx 18 i, r :ire � ' (,3:()6 ? I 16 f s-;t} immediate purchasers of lots from Oceanside and seek rescission of the sale contract and/or damages; other lawsuits have been brought by subsequent purchasers of lots. As a result of the automatic stay provided by Section 362 of the Bankruptcy Code, all such lawsuits are stayed. The Debtors will file notices of these Chapter 11 proceedings and the automatic stay in each lawsuit. V. OVERVIEW OF THE DEBTORS' SECURED FINANCING This Part of the Declaration reviews the principal sources of the Debtors' secured financing and the Debtors' default in repayment. A. Bank of Scotland 38. The major financing of the Hokuli'a project was provided by the Bank of Scotland. 39. In 2001, Lyle Anderson Financial Company LLC entered into a loan agreement with the Bank of Scotland to finance certain of Anderson's development projects. The initial loan amount was $200 million, which was subsequently increased a number of times to a total loan amount of$415 million in July of 2003. The loan was then amended and restated in November of 2003 to include a number of additional Anderson entities as borrowers, including Front Nine and Pacific Star, but also including various non-debtor entities 2303895c.docx 19 $. '?. 1:3 ) 4kie.Yff h 0400 4^ ')-00 ') j 0,1/Or', i 3 �:. �:.7;' # 0# fit; involved in Anderson's developments outside of Hawaii. As of December, 2003, the total amount outstanding under the amended and restated loan was approximately $517 million. Through a number of subsequent amendments, the maximum aggregate principal indebtedness increased to $825 million in 2006. On October 8, 2007, Oceanside (whose general and limited partner, Red Hill 1250, Inc., had previously pledged its majority ownership interest in Oceanside to obtain financing for the project) joined as a borrower and the maximum aggregate principal increased to approximately $904 million. The collateral for the debt included not only the assets of the Hawaii projects but also other Anderson development projects outside of Hawaii. The loans were generally cross-collateralized across all borrowers. 40. On January 15, 2008, the Bank of Scotland declared an event of default. The Bank of Scotland contended that the balance outstanding, as of January 1, 2008, was $946,250,794.53. The Bank of Scotland exercised its asserted rights under the loan documents and certain guaranty pledges made by the borrowers' parents to remove and replace the directors of the borrowers. Pursuant to a Cooperation and Release Agreement, dated as of October 20, 2008, Anderson and certain Anderson entities and affiliates were given releases by the Bank of Scotland in exchange for the execution of certain releases and 2303895c.docx 20 ::.3 i s ff�r a. i.',..,y` a,s l.-#§L ... g a ..� .' i d 1, 13-003> Li k!' } •1 # P I.E?i< ,, waivers and an agreement to cooperate and not interfere with the enforcement of the Bank of Scotland's loan. Mr. Anderson and certain of the officers whom he had appointed were removed from management positions within the companies. The New York restructuring firm of Marotta Gund Budd & Dzera was retained to take over management of the Hokuli'a companies. B. Ackerman Ranch, Inc. 41. In October, 2005, Oceanside purchased approximately 250 acres of additional land (the "Ackerman Property") from Ackerman Ranch, Inc. ("Ackerman"), financing the purchase by means of a $13.4 million "carryback" note and mortgage. The Ackerman Property, which had previously been leased to Oceanside, was intended to be the site of a part of Phase 3 of the Hokuli'a Project. After the note matured in October, 2010, Ackerman agreed to forebear enforcement and to continue to accept quarterly interest-only payments. When Oceanside allegedly failed to make the interest payment due on October 1, 2011, Ackerman demanded payment of the entire note balance, and subsequently filed an action for foreclosure of its mortgage in the Third Circuit Court. The foreclosure action remains pending. 2303895c.docx 21 1)10, )4 a :..,..�, tr.i .s aE G°l t r<+u� i! , a `� 4r'' ,r r-, ..� .x�.'` :�I { ;€3 .' o' ^^y%i C. Textron 42. Oceanside sold a number of Hokuli'a lots pursuant to transactions in which a portion of the purchase price took the form of a promissory note and a "carry back" mortgage on the buyer's lot (the "Lot Loans"). On or about June 29, 2006, Oceanside entered into a loan agreement with Textron Financial Corporation ("Textron"), pursuant to which Oceanside pledged the Lot Loans to Textron, and Textron provided funds to Oceanside through a revolving line of credit with a maximum principal indebtedness of $100 million (the "Textron Loan"). 43. On June 26, 2008, and on a number of subsequent occasions, Textron delivered notices of default, acceleration, and demand for payment to Oceanside. The Debtors are informed that as of December 1, 2012, the outstanding amount owed on the Textron Loan was $5,143,621, plus accrued interest of $20,629.20. On January 18, 2013, Textron sold the Textron Loan (including Textron's security interests in the pledged purchase-money mortgages) to Sun Kona Finance II, an affiliate of SKF I (defined below), which, as explained below, is the successor in interest to the Bank of Scotland's position with respect to the Debtors' properties. 2303895c.docx 22 VI. EVENTS AND CIRCUMSTANCES LEADING TO THE FILING OF THESE CHAPTER 11 CASES 44. As noted above, in January, 2008, the Bank of Scotland declared a default on the nearly $1 billion in secured debt owed by various Anderson entities, including the Debtors as well as entities involved in developments outside Hawaii. The development of Hokuli'a effectively stopped. In order to facilitate the disposition of the various Anderson loans, the Bank of Scotland and its advisors concluded that it should sever the cross- collateralized U.S.-based indebtedness of the former Anderson entities into three geographic "baskets": one each for Hawaii, New Mexico, and Arizona. Accordingly, in October, 2011, the Anderson debt and collateral held by the Bank of Scotland was severed and separated. Oceanside, Front Nine, Pacific Star, and certain related non-debtor entities, remain liable for the Hawaii-based debt in the principal amount of approximately $494 million, secured by the Hokuli'a Project and the Keopuka Project (the "Hawaii Loan"); but they are no longer liable for the debt associated with the former Anderson projects outside Hawaii. 45. On or about December 28, 2012, Sun Kona Finance I, LLC, a Delaware limited liability company ("SKF I"), closed its acquisition of the 2303895c.docx 23 ii i 1 t p)Lc �,." °{� wig e�Si9 A&Q ON' FiS'et 2 1F...)(" .,'061 13 s , q ) 23 e?; Hawaii Loan — the post-severance component of the Bank of Scotland debt secured by Hawaii assets. As of December 31, 2012, the aggregate outstanding balance of the Hawaii Loan was $625,186,775.39, inclusive of principal, interest, and protective advances. 46. Pursuant to the rights it had succeeded to under the loan documents, SKF I replaced the management of the Debtors. On January 12, 2013, (1) the general partner of Oceanside appointed me President/General Manager, Chief Financial Officer, Sales and Marketing Director, and Development/Construction Manager of Oceanside; (2) the manager of Front Nine appointed me President, Secretary, and Treasurer of Front Nine; and (3) the manager of Pacific Star appointed me President, Secretary, and Treasurer of Pacific Star. 47. Development of the Hokuli'a Project and the intended future development of the Keopuka Project has been severely hindered over the years by the adverse events and circumstances set forth above. During that time, the Debtors have incurred significant secured and unsecured debt. 48. The Debtors have commenced these proceedings in order to propose a plan (or plans) of reorganization that will restructure and resolve the Debtors' secured and unsecured debt in accordance with the Bankruptcy Code, 2303895c.docx 24 will allow the Debtors' development projects to proceed, and will permit their respective creditors to receive payment in excess of the liquidation value of their claims. 49. Although the Debtors have not yet filed their bankruptcy schedules and Statements of Financial Affairs, they expect to do so shortly. At this time, the Debtors estimate that the total value of Oceanside's property is approximately $44.5 million; that the total value of Front Nine's property is approximately $18.3 million; and that the total value of Pacific Star's property is approximately $5.3 million. Each of the Debtors appear to be jointly and severally liable to SKF I in an amount exceeding $625 million, which debt is secured by liens on substantially all of each of the Debtor's assets. Other claims, both secured and unsecured, bring Oceanside's estimated liabilities to approximately $684.7 million; Front Nine's liabilities to approximately $646.6 million, and Pacific Star's liabilities to approximately $627.3 million. VII. FIRST DAY MOTIONS 50. The Debtors are filing concurrently herewith various "first day" motions and applications. The relief requested in the motions and applications will enable the Debtors to continue to operate effectively. 2303895c.docx 25 ,.. .. ;.: ;.Inkr9. `e'e_;y (;{ 4 q‘L 4 ,,...003t,.3 1 ,kt fe-o 0. ,'0 r <) r Accordingly, the Debtors request that all of the "first day" motions and applications be granted in their entirety. A. Application for Order Authorizing Retention of General Counsel (Gelber, Gelber & Ingersoll) 51. In the Application for Order Authorizing Retention of General Counsel (Gelber, Gelber & Ingersoll) (the "Application for Retention of General Counsel"), the Debtors moves the Court for an order authorizing the Debtors to retain the law firm of Gelber, Gelber & Ingersoll ("GG&I") as their general counsel for these Chapter 11 bankruptcy proceedings. 52. The Debtors have determined that they require a law firm to represent them in these bankruptcy proceedings. The Debtors wish to retain GG&I as their general counsel. 53. GG&I has had considerable experience in cases involving reorganization under the Bankruptcy Code and it is in the best interest of the estates that GG&I be employed to represent the Debtors. GG&I's retention should be effective as of the date upon which the voluntary petitions commencing the Debtors' cases were filed. 54. I have reviewed the Application for Retention of General Counsel and all the statements of facts contained therein are true and correct to the best of my knowledge, information, and belief. 2303895c.docx 26 55. I believe that the Application for Retention of General Counsel is in the best interest of the Debtors and that it should be granted. B. Motion for Joint Administration 56. In the Motion for Joint Administration (the "Motion Respecting Joint Administration"), the Debtors seek to obtain for their respective estates the efficiencies provided by joint administration of these Chapter 11 cases. 57. As illustrated in the chart below, 100% of the outstanding voting securities of each of the three Debtors (i.e., Oceanside, Front Nine and Pacific Star) is held or controlled indirectly by LAFC Hawaii Holding Company, LLC, a Delaware limited liability company. Thus, both Front Nine and Pacific Star are statutory affiliates of Oceanside. 2303895c.docx 27 ...#.E0`..R. a..at '.3 it 1 v 01r:a z o Sd..tY .�>P+..} ,i s g f dE. F' 7 )if LAFC Hawail Holding Company, Debtors Organizational LLC Structure 100% I 100% 1 I I Hokulia Holding ( Keopuka Holding Co.LLC Co.LLC 100% 1% 100% 100% Red Hill 1290,Inc. Front Nine Keopuka Pacific Holding,Inc. Holding,Inc. 99% 1% 99% 99% 1% 1250 Oceanside Front Nine,LLC PaclFlc Star Partners Company,LLC 58. Moreover, the businesses of Oceanside, Front Nine, and Pacific Star, are deeply intertwined. Substantially all of the assets of each are related to the Hokuli'a Project or the Keopuka Project. As set forth in section V.A above, the Debtors appear to be jointly and severally liable on a secured loan arising from the development of Hokuli'a, currently held by Sun Kona Finance I, LLC ("SKF I"). To the best of the Debtors' present knowledge, the SKF I liens encumber substantially all of each of the Debtor's assets. 59. The entry of an order of joint administration of the Debtors' cases, pursuant to Fed. R. Bankr. P. 1015(b), is in the best interest of the Debtors' estates and creditors. Such an order will avoid unnecessary costs and delay by eliminating duplicative filings with this Court and duplicative notices 2303895c_docx 28 p a p, �t 7 4.r ��. 3%�I�a"s��Lt��?.._�' (. 1„N�. I°3..�s��<,�_ �t,..a .�_ $ _ .�50� .. �.:.�z ���(�€r�i t�� � t��� . �.: a.,.i to creditors, thereby facilitating the efficient and economical administration of the Debtors' estates. 60. An order of joint administration is procedural in nature. No substantive rights of any of the Debtors or their respective creditors are intended to be, or will be, affected by an order of joint administration. 61. I have reviewed the Motion Respecting Joint Administration, and all the statements of fact contained therein are true and correct to the best of my knowledge, information, and belief. 62. I believe that the Motion Respecting Joint Administration is in the best interests of the Debtors and that it should be granted. C. Motion for Authority to Pay Pre-Petition Wages and Other Employment-Related Costs and Expenses and to Honor Vacation and Sick Leave Rights 63. In the Motion for Authority to Pay Pre-Petition Wages and Other Employment-Related Costs and Expenses and to Honor Vacation and Sick Leave Rights (the "Motion Respecting Wages and Benefits"), the Debtors move the Court for an order authorizing the Debtors to pay to or for their continuing employees (including one person employed on an "independent contractor" basis), in the regular course of the Debtors' businesses, accrued but unpaid employment-related costs and expenses that arose pre-petition, including, 2303895c.docx 29 s , ,v Corot a i?' Pik s .4 i T t: 2 r , 1 `5 a s 29 0= 4; without limitation, as applicable, pre-petition wages, salaries, payroll taxes, other required contributions, health and other insurance, and the employer's contribution to any pension, profit sharing, or retirement plan (hereinafter collectively referred to as "Pre-Petition Employment Expenses"), and to honor, in the regular course of the Debtors' business and in the Debtors' business discretion, pre-petition accrued vacation and sick leave rights of the Debtors' continuing employees. 64. As of the date of the petitions for relief under Chapter 11 of the Bankruptcy Code filed herein by each of the Debtors, the Debtors employed three (3) regular active full-time employees and one (1) person on an "independent contractor" basis, who provide a myriad of services to the Debtors. In addition, I am employed by Oceanside as its President/General Manager, Chief Financial Officer, Sales and Marketing Director, and Development/Construction Manager, by Front Nine as its President, Secretary, and Treasurer, and by Pacific Star as its President, Secretary, and Treasurer. 65. The Debtors' employees (including myself) are collectively paid (or have paid on their behalf) approximately $43,100.00 per month (including salaries, wages, taxes, and benefits). The independent contractor earns approximately $6,000.00 per month. 2303895c.docx 30 66. As of the commencement of these bankruptcy cases, no employee was owed in excess of $11,725.00 as compensation (including benefits) for Pre-Petition Employment Expenses for the pay period in which the bankruptcy petitions were filed. 67. The Debtors believe that the total amount of unpaid and outstanding Pre-Petition Employment Expenses consists solely of the salaries, wages, and benefits that were earned or accrued after March 1, 2013, but prior to the date of the filing of the Debtors' petitions. The Debtors anticipate they will have sufficient cash on hand to pay this nominal amount. 68. In addition, the Debtors offer their employees other forms of compensation, including vacation time and paid sick leave. These forms of compensation are usual, customary, and necessary, if the Debtors are to retain qualified employees to operate their businesses. 69. Specifically, through a multipurpose time-off program called "Paid Time Off' ("PTO"), eligible employees of the Debtors accrue paid time off to be used to cover vacation time, sick leave, and personal, business, or emergency time off. The length of an individual's service determines the amount of PTO accrued by that individual. After sixty (60) days of service, all full-time employees are eligible to start to accrue PTO time at a rate of 4.62 2303895c.docx 31 Z d S? Ta fz "" t a+`�•.�,'2,d 'g � ; 13ki Owl 0 dkv=13 hours per pay period. All directors and officers of the Debtors are entitled to start accruing PTO time at the rates of 6.16 hours and 7.70 hours, respectively, per pay period immediately upon being hired. The rate of PTO accrued increases with the number of years of service of the employees, directors, and officers. 70. Unused PTO is paid to an employee upon severance of employment. 71. The Debtors permit the carryover of a maximum of one hundred fifty (150) hours of accrued but unused PTO from one year to the next. 72. There is a maximum amount of PTO allowed to be accrued. An employee, director, or officer cannot accrue more than two hundred (200) hours of PTO. 73. The Debtors estimate that, as of March 1, 2013, the three (3) regular employees of the Debtors had accrued vacation time with an aggregate value equal to $22,818.02. 74. I assumed my above-mentioned positions with the Debtors on January 12, 2013, but my direct employment by the Debtors began effective March 1, 2013. Accordingly, my accrued PTO time is only the amount of time 2303895c.docx 32 Kin'43 003f11 A_ k' 't2 d il$ fi 03,06113 ,2 � ®,: that has actually accrued between March 1, 2013, and the date that the Debtors' petitions were filed. This amount is negligible 75. Furthermore, the Debtors provide their employees with medical benefits pursuant to one of three different medical plans provided in conjunction with Hawaii Medical Service Association and Kaiser Permanente (collectively, the "Medical Plans"). 76. The Debtors pay one hundred percent (100%) of the premium cost for their employees to participate in the Medical Plans. The Debtors also pay fifty percent (50%) of the premium under the Medical Plans for the family or dependent of an employee. 77. The Medical Plans cost the Debtors approximately $2,100.00 per month (which is included in the monthly amount for wages, salaries, taxes, and benefits). 78. Additionally, the Debtors provide workers' compensation insurance to all employees to the extent required by law. 79. Further, the Debtors routinely withhold from employee paychecks certain amounts that the Debtors are required to transmit to third parties. Examples of such withholdings may include Social Security, FICA, federal and state income taxes, garnishments, health-care payments, retirement 2303895c.docx 33 Cms$- .. ! su'a::I$$ 13-00,3,53 teat 14, 2 $ :a i. 03 OG/IA 17%itie 33 of `,(1 fund withholding, and charitable donations. All payroll liability and funds relating to such amounts are disbursed as required. 80. The Debtors believe that such withheld funds, to the extent that they remain in the Debtors' possession, constitute monies held in trust and, therefore, are not property of the Debtors' bankruptcy estates. 81. Finally, the Debtors' employees would suffer a severe hardship if they were to lose (or suffer a delay in receiving) their pay and benefits. 82. The Debtors have attempted to pay their employment expenses on a current basis. Some employment expenses for the period immediately before the filing of the petitions, however, have not been paid, primarily because the petitions were filed after the employees' entitlements had accrued but before payment was due. 83. The Debtors have determined that, in order to ensure that the employees remain with the Debtors, and in order to maintain employee morale and productivity, it is necessary to pay, in the ordinary course of the Debtors' businesses, the Pre-Petition Employment Expenses that are owed to, or payable for the benefit of, the Debtors' current employees as set forth in this motion. Payment of these amounts will encourage the employees to continue to work for 2303895c.docx 34 B-3 kr s-tcv Court ,..n ,y .. �,� e,.,, ? 13k11;' .+k. 1f 1!e, 0:0(3i ,-)0 the Debtors, thereby avoiding potential disruption in the Debtors' businesses and promoting the prospects for the Debtors' continued operations, and ultimately enhancing potential recoveries for the creditors. 84. I have reviewed the Motion Respecting Wages and Benefits, and all of the statements of fact contained therein are true and correct to the best of my knowledge, information, and belief. 85. I believe that the Motion Respecting Wages and Benefits is in the best interest of the Debtors and that it should be granted. D. Motion for Order (A) Prohibiting Utilities from Altering, Refusing, or Discontinuing Services and (B) Providing Adequate Assurance of Payment to Utility Providers 86. In the Motion for Order (A) Prohibiting Utilities from Altering, Refusing, or Discontinuing Services and (B) Providing Adequate Assurance of Payment to Utility Providers (the "Motion Respecting Utilities"), the Debtors move the Court for an order (a) prohibiting all utilities providers of the Debtors from altering, refusing, or discontinuing services to the Debtors, and (b) providing those utilities providers with adequate assurance of payment. 87. In order for each of the Debtors to operate, various utility services are or may be required (such as water, electricity, sewer services, cable, Internet and/or telephone service). A list of utility companies and other 2303895c.docx 35 S, ri kru t ,i Court "< uJuii ,111-0035:3 DM :' " lio d ge 3! of;2() providers of utility services is attached to the Motion Respecting Utilities as Exhibit "A."4 88. Uninterrupted utility services are essential to ongoing operations and, therefore, to the success of each of the Debtors' reorganization. If the utility companies listed in Exhibit "A" to the Motions Respecting Utilities (and other similar utility providers) were to discontinue service, the Debtors' businesses would be severely disrupted. It is therefore critical that utility services continue uninterrupted. 89. To the best of Debtors' knowledge, the Debtors have paid all amounts owed to every utility provider as and when due.5 No utility bill is 4 The relief sought in the Motion Respecting Utilities pertains to all of the utility companies providing utility services to the Debtors, whether or not they are included in Exhibit "A." The inclusion or failure to include any entity in Exhibit "A" to the Motion Respecting Utilities is not an admission by the Debtors that the entity is or is not, as the case may be, a utility within the meaning of Bankruptcy Code § 366, and the Debtors reserve their rights with respect to the determination of that issue. If the Court determines that a separate motion and hearing is required, the Debtors reserve their rights, if necessary, to file an motion for an order prohibiting such utilities from altering, refusing, or discontinuing services and providing adequate assurance of payment to those utility providers. Additionally, Oceanside is currently the account holder and pays for all the utilities. Certain utility services eventually may be used by the other Debtors. Accordingly, the relief requested by the Motion Respecting Utilities should be applicable to all the Debtors. 2303895c.docx 36 Bankruptcy Court -- Fia\A%>;a11 = ) 00353 like 4 . ,-sled 03100 1'3. P E qe currently overdue. For certain utilities, the Debtors have not been billed for services rendered in the period immediately prior to the petition date. 90. Because Oceanside has paid all amounts due and owing to utility providers, as and when due, the Debtors believe that such history of current payment should serve as adequate assurance of future payment. 91. If the Court determines that additional adequate assurance of payment is required for any utility provider listed on Exhibit "A" to Motion Respecting Utilities, the Debtors seek permission to provide additional adequate assurance of payment to such utility provider by paying said requesting provider for its utility service in advance, instead of in arrears. In other words, the Debtors will prepay the approximate cost of the Debtors' utility consumption for one month to each such utility provider for each month that the utility service is used. The Debtors will determine the amount which it will pre-pay each requesting utility provider by paying in the ordinary course of business approximately the same amount it was charged for that utility during the preceding month.6 5 As mentioned previously, only Oceanside currently receives bills from utility providers. If the amount pre-paid to a utility provider is later determined to be insufficient to pay fully the consumption of that utility service for a given month, the 2303895c.docx 37 ti,S ,_.»i-$.3iK6 C#p tc.3 Court 3 [ iv>.`C-,.e Y;' ,.. ..3 n1t. If ,... File ti Ci .:6,1 w: Pour?, 37 of x.51' 92. I have reviewed the Motion Respecting Utilities, and all the statements of fact contained therein are true and correct to the best of my knowledge, information, and belief. 93. I believe that the Motion Respecting Utilities is in the best interests of the Debtors and that it should be granted. E. Motion for Order Authorizing (I) Continued Maintenance of Existing Bank Accounts, (II) Continued Use of Existing Business Forms, and (III) Post-Petition Clearance, in the Ordinary Course of Business, of Checks Issued Pre-Petition 94. In the Motion for Order Authorizing (I) Continued Maintenance of Existing Bank Accounts, (II) Continued Use of Existing Business Forms, and (III) Post-Petition Clearance, in the Ordinary Course of Business, of Checks Issued Pre-Petition (the "Motion Respecting Bank Accounts, Business Forms, and Clearance of Checks"), the Debtors move the Court for an order authorizing (a) the continued maintenance and use of its particular Debtor customer will pay the shortfall in the normal course of business as and when it becomes due. On the other hand, if the amount prepaid to a utility provider exceeds the amount that is actually due to that utility provider for that month, the utility shall credit the excess amount to that Debtor's account for the following month and the amount prepaid by that Debtor to that utility provider for the following month shall take that credit into account. 2303895c.docx 38 y t". +.„ .,�. B 1n(_k t _j „) Hied 03/06' 1,, ...8 .a existing bank accounts and a waiver of the requirements that the Debtors' bank accounts be closed and that new debtor-in-possession bank accounts be opened; (b) the continued use of the Debtors' business forms and checks (provided, however, that the Debtors will type or stamp on its checks "Debtor-in- Possession, Case No. , U.S.B.C. Hawaii"), and (c) the post-petition clearance, in the ordinary course of business, of the checks issued by the Debtors pre-petition. The Debtors' Existing Bank Accounts 95. The Debtors maintain the following bank accounts: (a) A business checking account (the "General Account") at Bank of Hawaii, Account No. XXXX-XX7918. Historically, the purpose of this account is to collect receipts from the operation of Oceanside and to pay Oceanside's payroll and accounts payable. Oceanside intends to close this account and transfer any remaining funds into Account "1897." (b) A business checking account (the "Oceanside Checking Account") at Wells Fargo Bank, Account No. XXXXXX 1897. The purpose of the Oceanside Checking Account is to pay the various administrative expenses and accounts payable of Oceanside. Additionally, it is from this account which Oceanside disburses payroll checks to its employees. (c) A business checking account at Wells Fargo Bank, Account No. XXXXXX1830. The purpose of this account is to deposit and disburse funds for expenditures of the operation of Front Nine's business. 2303895c.docx 39 9 R __ (d) A business checking account at Wells Fargo Bank, Account No. XXXXXX1848. The purpose of this account is to deposit, and disburse funds for expenditures of the operation of Pacific Star's business. 96. The balances of the accounts identified in subparagraphs (a) through (d) above (the "Debtors' Accounts") are set forth in Exhibit "A" attached to the Motion Respecting Bank Accounts, Business Forms, and Clearance of Checks. 97. The Debtors' Accounts allow the Debtors to (a)monitor and pay their respective expenses, (b) deposit funds more efficiently, (c) ensure availability of funds when necessary, and (d) reduce administrative expense. The use of the Debtors' Accounts constitute ordinary, usual, and essential business practices. 98. The Debtors opened certain of the Debtors' Accounts with Wells Fargo Bank to facilitate Debtors' banking activities because the Wells Fargo is a national banking institution and the Debtors maintain their main corporate office in Roseville, California, and an administrative office in Scottsdale, Arizona. Wells Fargo Bank is listed as an authorized depository by U.S. Trustee Region 17 (Northern and Eastern Districts of California) and Region 14, (District of Arizona). 2303895c.docx 40 c 9 $! {' $'d E� ' g 1 n,i. (1.3:t t i,J 3t ? ,s. )a �..� g �. l.,ri�" ,�� 99. The Debtors' operations require that the Debtors' Accounts continue during the pendency of the Chapter 11 cases.2 If the Debtors are required to close the Debtors' Accounts and open new accounts, their business operations would be disrupted, which would, in turn, have an adverse impact on the Debtors' ability to reorganize. Accordingly, maintenance of the existing Debtors' Accounts is in the best interests of all creditors and other parties in interest. 100. The Office of the United States Trustee has established guidelines with respect to bank accounts maintained by debtors-in-possession. These guidelines require that, in the ordinary case, the debtor-in-possession must, among other things: (a) close all existing bank accounts and open new debtor-in-possession bank accounts; (b) establish one debtor-in-possession account for all estate monies required for the payment of taxes, including payroll taxes; (c) maintain a separate debtor-in-possession account for cash collateral; and (d) obtain checks for all debtor-in-possession accounts which bear the designation "Debtor-In-Possession." 2 Oceanside may determine in its business discretion to close its General Account and consolidate the funds in the Oceanside Checking Account (which steps, if taken, would be reflected in the Debtors' Monthly Operating Reports.) 2303895c.docx 41 a k! t }tcy Court g ;i; ;; 1 (V;35,, nk ?x ..) 1:,!,:d t f 3S paq,, i y' 101. Because of the nature of the Debtors' cases, and the nature and extent of the Debtors' operations, the Debtors seek a waiver of the requirements of the Office of the United States Trustee (provided, however, that the Debtors will type or stamp the designation "Debtor-in-Possession, Case No. , U.S.B.C., Hawaii" on each of the Debtors' checks). The benefits of imposing the requirements of the Office of the United States Trustee in this case are outweighed by the cost and disruption of having to open new accounts, obtaining new check stock, and the like. 102. Instead, the Debtors will note the date and time the Chapter 11 petition was filed, and the records will reflect each post-petition receipt and disbursement. 103. Accordingly, the Debtors request that the existing accounts be deemed debtor-in-possession accounts, and that their maintenance and continued use be authorized. The Debtors' Business Forms 104. The Debtors also request that they be authorized to continue to use all correspondence and business forms (including without limitation, letterheads, purchase orders, and invoices) existing immediately prior to the date 2303895c.docx 42 .... �y, t..s y \...x.39,...4, .00 ' �. �:`x ! . ,} 0..3<.- 3 Y✓ 4 .., ;?l.. the Debtors filed for bankruptcy, without reference to the Debtors' status as a debtor-in-possession. 105. Each of the Debtors' vendor creditors will receive direct notice of the commencement of these cases. 106. Changing correspondence and business forms would be a needless expense, unnecessary, and burdensome to the Debtors' estates and disruptive to the Debtors' business operations. For these reasons, the Debtors request that they be authorized to use existing business forms. Post-Petition Clearance of Pre-Petition Checks 107. The Debtors also request that checks issued pre-petition, which have not cleared their respective accounts as of the filing date, be allowed to clear their accounts post-petition, in the ordinary course of business. 108. The Debtors' business will be greatly disrupted if the outstanding checks are not allowed to clear the Debtors' accounts post-petition. Most of the checks were issued to pay for expenses (including employees' wages) incurred in the ordinary course of the Debtors' business. If these checks are not honored, and the creditors are not paid, some, perhaps most, would likely cease doing business with the Debtors; post-petition creditors would lose confidence that they will be regularly paid for goods and services, with the 2303895c.docx 43 t € Lh-P,\JC':., tl " a 3 (Et fYY1 ;lit ...i!e n ",1r; ° . .; .7 consequence that necessary goods and services would be more difficult to obtain. 109. The Debtors believe the checks outstanding and in transit are set forth in Exhibit "B" to the Motion Respecting Bank Accounts, Business Forms, and Clearance of Checks (although the exact amount will be determined when bank statements are received). All amounts paid by the outstanding checks were paid with funds furnished by the Debtors' senior secured lender as a protective advance (and, therefore, are purportedly subject to the lender's senior security interest) in order to keep the Debtors in operation. The adverse effects on the Debtors' operations from bounced checks (especially those payable to vendors and to employees)will greatly outweigh any adverse effects of allowing the outstanding checks in transit to clear. All creditors will benefit if the Debtors' operations are preserved and the Debtors are permitted to reorganize. 110. Accordingly, the Debtors request that the outstanding checks issued pre-petition be allowed to clear the Debtors' bank accounts post-petition, in the ordinary course of business. 111. Without the relief requested in the Motion Respecting Bank Accounts, Business Forms, and Clearance of Checks, the Debtors' business will be disrupted and suffer adverse consequences. 2303895c.docx 44 ,..I S BanioE.i .`tcy CC.)h r t F!:c 03/06/13 6!/13 P, o .: !;r: 112. I have reviewed the Motion Respecting Bank Accounts, Business Forms, and Clearance of Checks, and all statements of fact contained therein are true and correct to the best of my knowledge, information, and belief. 113. I believe that the Motion Respecting Bank Accounts, Business Forms, and Clearance of Checks, is in the best interests of the Debtors and that it should be granted. F. Motion for Order Authorizing Debtors to Obtain Interim and Final Post-Petition Financing on a Secured and Superpriority Basis and Scheduling Final Hearing 114. In the Motion for Order Authorizing Debtor to Obtain Interim and Final Post-Petition Financing on a Secured and Superpriority Basis and Scheduling Final Hearing (the "DIP Finance Motion"), the Debtors move the Court for an order authorizing post-petition financing necessary to the administration of the Debtors' estates and the conduct of these Chapter 11 cases. 115. The Debtors seek approval of a debtor-in-possession revolving line of credit (the "DIP Loan") from Sun Kona Finance I, LLC, in the maximum aggregate amount of two million five hundred thousand dollars ($2,500,000), i.e., each Debtor may drawn on the line of credit, but the aggregate amount of Sun Kona Finance I, LLC's extension of credit to 2303895c.docx 45 3....3 '... t. 2 3 16.8 i Tt v lit {9 t� Yr f3a E� F „1`..t A 4.�.i &.,!F C",'O.t 4-l i e(: 0 a _�_3 f -:;::3 d" l all Debtors is two million dollars. The term of the DIP loan is 24 months, with interest at six percent (6%) per annum, all principal and interest payable at maturity. The DIP Loan will be secured by a first priority lien on all presently unencumbered assets, if any, and junior liens on all other assets, and will be an administrative claim with priority over all other administrative claims (with the exception of a "carve-out"). 116. To the best of the Debtors' current knowledge, the only assets not encumbered by the liens of SKF I are: A. The Ackerman Property which is encumbered by the "carry-back" note and mortgage described in paragraph 41 above. B. The Debtors' interest in the lot purchaser carry-back notes and mortgages, which are pledged to secure the Textron Loan, as described in paragraph 42 above. The Textron Loan is now held by Sun Kona Finance II, LLC, an affiliate of the Lender. C. The Debtors' four (4)titled vehicles. D. The Debtors' Avoidance Actions. 117. The Debtors do not have any current source of income available to pay their ongoing operating expenses or to cover the administrative costs to be incurred in their reorganization proceedings. In the time period 2303895c.docx 46 g {p W J, <.....In KIHIVEC 4_ 46.�: - c..$x.a..x. i7 tiE 3D3 Di .._ tE 11 ,310i"/1,, r '�, immediately preceding the filing of the petitions, the Debtors' operating expenses were covered by protective advances from SKF I. 118. The Debtors have not been able to obtain financing for the Debtors on an unsecured or administrative basis. On behalf of the Debtors, I have had discussions with various potential sources of financing, including Kinetic Advisors and NextGen Capital (lenders to debtors-in-possession). The lenders to whom I made inquiries acknowledged that the terms offered by SKF I are better than the terms they might offer. 119. Among other advantages of the proposed DIP Loan, SKF I is not charging the typical up front deposit, administrative, unused line, or exit fees, nor does SKF I require an extensive "due diligence" review. Any other lender would ordinarily require substantial additional time to conduct a "due diligence" review, time that the Debtors simply cannot afford. Consequently, the terms offered by Sun Kona Finance I, LLC are the best terms that the Debtors have been able to negotiate. 120. I believe that the terms of the proposed DIP Financing are reasonable under the circumstances, and that consummation of a loan will be in the best interests of the bankruptcy estates and their creditors. 2303895c.docx 47 121. I have reviewed the DIP Finance Motion, and all of the statements of fact contained therein are true and correct to the best of my knowledge, information, and belief. 122. I believe that the DIP Finance Motion is in the best interests of the Debtors and that it should be granted. G. Application to Establish Interim Compensation Procedure for Chapter 11 Professionals 123. In the Application to Establish Interim Compensation Procedure for Chapter 11 Professionals (the "Application to Establish Interim Compensation Procedure"), the Debtors move the Court for an order establishing a procedure for interim compensation and reimbursement of expenses for the Chapter 11 professionals retained in these case, in accordance with the procedure set forth in detail in the Application. 124. The proposed procedure, if approved, would permit the Debtors' professionals (and professionals appointed by any official committee) to be compensated and reimbursed for expenses incurred on an interim basis and in a reasonably contemporaneous manner, subject, however, to oversight and review by the Debtors, the creditors, and the Court. 2303895c.docx 48 ,,ii t"t,':Acy t t`t { -- Hay>q; I`i 06 Pk' it L# n ,',t'4., ca< IG6i 1,4 ',0 125. I have reviewed the Application to Establish Interim Compensation Procedure, and all the statements of facts contained therein are true and correct to the best of my knowledge, information, and belief. 126. I believe that the Application to Establish Interim Compensation Procedure is in the best interests of the Debtors and that it should be granted. CONCLUSION The Debtors intend to restructure and resolve their secured and unsecured debt, pursuant to a plan or plans of reorganization proposed and confirmed in accordance with the Bankruptcy Code, so that development of the Hokuli'a Project can proceed to completion and to enable the future development of the Keopuka property. I believe that the "first day" motions and applications described above are important to the Debtors, their estates and creditors, and other parties in interest, and that the likelihood of the Debtors' success will be enhanced if the Court grants the relief requested. 2303895c.docx 49 ir, _ �.,h t ().s -,3 3 DATED: /// rijt CRAIG PICTT DECLARATION OF CRAIG PICKETT IN SUPPORT OF"FIRST DAY" MOTIONS AND APPLICATIONS,In re Oceanside Partners,Case No./3-00353;In re Front Nine, LW,Case No. a-Dare/; In re Pacific Star Company, LLC dba Pacific Star Properties,Case No./a--eea.S.Trs 2303895c.docx 50 3. 1".lu 7tep (.. af..a Hi :413-00353 Dkal # _. Filed 0.3S06113 Page 50 of 5( 8 1(Qfljrlet Vane 11G12/111 United States Bankruptcy Court Voluntary Petition District of Hawaii I ry • Name of Debtor(if individual,enter Last,First,Middle): Name of Joint Debtor(Spouse)(Lest,First,Middle): 1250 OCEANSIDE PARTNERS All Other Names used by the Debtor in the last 8 years All Other Names used by the Joint Debtor in the last 8 years (include married,maiden,and trade names): (include married,maiden,and trade names): AKA OCEANSIDE;AKA 1250 OCEANSIDE;AKA HOKULPA OR HOKULIA ' Last four digits of Soc.Sec.or Individual-Taxpayer I.D.(ITIN)No/Complete EIN Last four digits of Soc.Sec.or Individual-Taxpayer I.D.(ITIN)No/Complete SIN gems tun ens,st st) (if mewl=eat,oats dl) 990278934 Street Address of Debtor(No.and Street,City,and State): Street Address of Joint Debtor(No.and Street,City,and State): 1380 Lead Hill Blvd,Suite 108 Roseville,CA ZIP Code ZIP Code 1 95861 County of Residence or of the Principal Place of Business: 'County of Residence or of the Principal Place o?Business: Placer Mailing Address of Debtor(if different from street address): Mailing Address of Joint Debtor(if different from street address): ZIP Code ZIP Code ■ I Location of Principal Assets of Business Debtor County of Hawaii,State of Hawaii j (if different from street address above): Type of Debtor Nature of Business Chapter of Bankropley Code tinder Which (Form of Organization)(Check one box) (Check one box) the Pelbioa in Filed(Check one box) ❑Individual(includes Joint Debtors) ❑Health Care Business ❑ Chapter 7 See R hiblt D on page 2 of the form, 0 Single Asset Real Estate as defined ❑Corporation(includes LLC and LLP) in 1l U.S.C.§101(SIB) ❑ �9 El Chapter 1S Petition for Recognition PaMership ❑Railroad IN Chapter l 1 of Foreign Main Proceeding ❑Other Of debtor is not me of the above entities ❑Stockbroker ❑Chapter 12 ❑ Chapter 15 Petition for Recognition dude this bar and state type of entity below.) ❑Commodity Broker ❑ Chapter 13 of Foreign Nonmain Proceeding ❑Cleating Bank Chapter LS Debtor. •Other Nature of Debts Country of debtors maw of main interests: Tex-Exempt Entity ((bode one boa) (Cheek box,if applicable) ❑Debts are Roily consenter debts, III Ddb are primarily Earth country in which a foreign proceeding ❑Debtor is a tax-exempt orge iraaim defined is 11 U.S.C.1 101(3)as business debts. by,row:Wing,or against debtor is pending: under Tide 26 of the United States *incurred by an individual primarily for Code(the Internal Revenue Code). a personal,family,or household purpose., Meg Fee(Check one box) Cheek one box: Chapter 11 Debtors li Full Filing Fee stitched ❑ Debtor is it small busman debtor as defined in 11 US.C.1101(5ID). III❑Filing Fee to be paid in instal/menu(applicable to individuals only).Must Debtor is not■areal business debtor as defined br 11 U.S.C.I]01(51D). attach signed application for the court's consideration certifying diet the (bade if debtor is unable to fee n installments.Rule t ❑ Debtor's noncmuageni liquidated debts(excluding debts owed to insiders or affiliates) �Y except fib)'Sx Official are less than$2,343,300(amount subject to adjustment on 4/01/13 and yea r), Form 3A. I �! every three n there ❑Filing Fee waiver requested(applicable to chapter 7 individuals only).Must Check�lan is bein died attach signed application for the courts consideration.See Official Form 3B. ❑ A plain s es o Sled with this petidoa ❑ Acceptances of the plan were solicited prepetition from one or more dames of creditors, in accordance with 11 U.S.C.1 1126(6). Stattical/Admh•iatradve Information MIS SPACE IS FOR COURT USE ONLY •Debtor estimates that funds will be available for distribution to unsecured creditors. ❑Debtor estimates that,after any exempt property is excluded and administrative expenses paid, there will be no funds available for distribution to unsecured creditors. Estimated Number of Creditors ❑ ❑ ❑ • ❑ ❑ ❑ ❑ ❑ ❑ I- 50- 100- 200- 1,000- 5,001- 10,001- 25,001- 50,001- OVER 49 99 199 999 5,000 10,000 25,000 50,000 100,000 100,000 Estimated Assets ❑ ❑ ❑ ❑ ❑ • ❑ ❑ ❑ ❑ Sob $50,001 to $100,001 to 5300,001 $1,000,001 $10,000,001 550,000,001 5100,000,001 3300,000,001 More dun 530,000 5100,000 5300,000 to Si to Ito to S50 to 3100 to$500 to SI billion SI billion million million trillion million million Estimated Liabilities ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ • 0 Sob 530,001 to $100,001 b 5300,001 $1,000.001 510.000,001 $50,000,001 $100,000,001 5500,000,001 More than 550,000 5100,000 8500,000 to SI to Sl0 to S50 to 8100 to$500 to SI bilk= Will= million million million malice million 3 :.s- f"grc� S°" elk--� _ }t' l '✓ t P v i � 1 � i. s,.�.w.a. . � 4e6t� t let..-y �.> t,.a ;4;1�A�� s 8 i.�.�?.. .,.+ ._.'3°.� �° t 4 �g o�a.�7 ��.�1$t? .-i�, � t.,.= ads_ Bl(Octal Form 1x12!11) Page 2 Voluntary Petition Name of Debtor(s): 1250 OCEANSIDE PARTNERS (This page must be completed and filed in every case) All Prior Bankruptcy Cases Filed Within Last S Years(If more than two,attach additional sheet) Location Case Number: Date Filed: Where Filed: -None- Location Case Number. Date Filed: Where Filed: Pending Bankruptcy Case Filed by any Spouse,Partner,or Affiliate of this Debtor(If more than one,attach additional sheet) Name of Debtor. Case Number. Date Filed: -None- District: Relationship: Judge: Exhibit A Exhibit B (To be completed if debtor is an individual wbose debts we pei nanly consume debts.) (To be completed if debtor is required to file periodic reports(e.g., I,the attorney for the petitioner named in the foregoing petition,declare that I forms 10K and 10Q)with the Securities and Exchange Commission have informed the petitioner that[he or she]may proceed under chapter 7,11, pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934 12,or 13 of title 11,United States Code,and have explained the relief available and is requesting relief under chapter 11.) under each such chapter.I further certify that I delivered to the debtor the notice required by 11 U.S.C.1342(b). ❑ Exhibit A is attached and made a part of this petition. X Signature of Attorney for Debtor(s) (Date) Exhibit C Does the debtor own or have possession of any property that poses or is alleged to pose a threat of imminent and identifiable harm to public health or safety') ❑ Yes,and Exhibit C is attached and made a part of this petition. ❑No. Exhibit D (To be completed by every individual debtor.If a joint petition is filed,each spouse must complete and attach a separate Exhibit D.) ❑ Exhibit D completed and signed by the debtor is attached and made a part of this petition. If this is a joint petition: ❑ Exhibit D also completed and signed by the joint debtor is attached and made a part of this petition. Information Regarding the Debtor-Venue (Check any applicable box) ❑ Debtor has been domiciled or has had a residence,principal place of business,or principal assets in this District for 180 days immediately preceding the date of this petition or for a longer part of such 180 days than in any other District. ❑ There is a bankruptcy case concerning debtor's affiliate,general partner,or partnership pending in this District. ❑ Debtor is a debtor in a foreign proceeding and has its principal piece of business or principal assets in the United States hr this District,or has no principal place of business or assets in the United States but is a defendant in an action or proceeding[m a federal or state court]in this District,or the interests of the parties will be served in regard to the relief sought in this District Certification by a Debtor Who Resides as a Tenant of Residential Property (Check all applicable boxes) ❑ Landlord has a judgment against the debtor for possession of debtor's residence.(If box checked,complete the following) (Name of landlord that obtained judgment) (Address of landlord) ❑ Debtor claims that under applicable nonbankruptcy law,there are circumstances under which the debtor would be permitted to cure the entire monetary default that gave rise to the judgment for possession,after the judgment for possession was entered,and ❑ Debtor has included in this petition the deposit with the court of any rent that would become due during the 30-day period after the filing of the petition. ❑ Debtor certifies that he/she has served the Landlord with this certification.(I 1 U.S.C.§362(1)). �, s. Bankruptcy Court.=ur g '' ?1? r t a Did } ,E't g 0106/1? Page BI(Omelal Form 1x12/11) Page 3 Voluntary Petition Name of Debtor(s): 1250 OCEANSIDE PARTNERS (This page must be completed and filed In every case) Signatures Signature(a)ofDebtor(s)(Individual/Joint) Signature of a Foreign Representative I declare under penalty of pciiuty that the Information provided in this I declare under penalty of perjury that the inlbmtation provided in this petition [Ipetition Is true and comet is true and correct,that I am- the foreign representative ofa debtor in a tbroign Ifpetitioner is an individual whose debts are primarily consumer debts and proceeding,and that I em authorized to filo this petition. has chosen to file under chapter 7]I am aware that I may proceed under chapter 7,11 12,or 13 of title 11,United States Code,understand the relief (cheer only One box.) available under each such chapter,and choose to proceed under chapter 7. D I request relief in accordance with chapter 15 of title 11.United States Code. Pine attorney represents me and no bankruptcy petition preparer signs the Certified copies of the documents required by 11 U.S.C.§1515 are attached. petition]I have obtained and read the notice required by t 1 U.S.C.4342(b). 0 Pursuant to I1 U.S.C.41511,I request relief in accordance with the chapter I request relief in accordance with the chapter of title l 1,United States Code, of tkle 11 specified in this petition.A certified copy of the order granting specified in this petition. recognition of the foreign main proceeding is attached. X X Signature of Debtor Signature of Foreign Representative X Printed Name of Foreign Representative Signature of Joint Debtor Date Telephone Number(If not represented by attorney) Signature of Non-Attorney Bankruptcy Petition Preparer •Date I dedare under penalty of penury that(l)I am a bankruptcy petition preparer as defined bs 11 U.S.C.¢110,(2)I prepared ttyhis document for Signature of Attorney* and thenottiices and information required the ired under with I U.S.C.44h document(b), 1 I end 342(b); "q been 44 Mu),or X ��J ,Or�Y pursuant (.S.and.(3)h seas g a maximum hfee s services gated vf''C> pucsueat to t l U.S.C.¢1 lt7(h)setting a maximtvn foes for services Signature of Attorney for Debtor(s) of the maximum amount before preparing any I have document for f ing for live Don Jeffrey Gelber debtor or accepting any fee from the debtor,as required in that section. Printed Name of Attorney for Debtor(s) Official Form 19 u attached. Gelber.Gelber$Ingersoll Printed Name and title,if any,of Bankruptcy Petition Preparer Finn nn Name 745 Fort Street,Suite 1400 Honolulu,HI 98813 Social-Security number(if the bankruppcy petition preparer Is not an individual,state the Social Security number of the officer, principal,responsible person or partner of the bankruptcy petition Address preparer.)(Requhed by 11 U.S.C.11110.) (808)874-0188 Fax:(808)8318883 Telephone Number n�n Address Date /!/ •ln a cue in which§707(bX4XD)applies,this signature also constitutes a x certification that the attorney has no knowledge after an Inquiry that the lntbrmstion In the schedules is incorrect Date Sigaeture of Debtor(Corporation/Partnersbip) Signature of bankruptcy petition preparer or officer,principal,responsible I declare under penalty of p e r j u r y that the information. .vided in this person or partner whose Social Security number to provided above petition is true and coned,and that 1 have been au' •d to file this petition on behalf of the debtor. Names and Social-Security numbers of all other individuals who prepared or assisted in preparing this document unless the bankruptcy petition preparer is The debtor requests rel' in cordance tb. ,''of tlils I I,United not an individual: States Code,speci petition. �% X_ '( Signature of Au oll/zed idual .Craig Pickett If more than one person prepared this document,attach additional sheets Printed Name of Authorized Individual confbnning to the appropriate official fora for each person. Preeitienf/Qeneral Manager/CFO 4 bonknquty patitlon prepares;failure to comply with the provisions of Title of Authorized In title 11 and the Federal Rules of Bankruptcy Procedure m rent:in °� Jlnes or imprlronment of both.l/U.S.C.¢110;18 U.S.0 1136. Date L i s a < ? i"1 °"i'ov Court } I:e;=L. 19 tT ` ; l . ' 1 i lei' d ( :"E, a" ' 3 ; CERTIFICATE of RESOLUTIONS OF THE GENERAL PARTNER of 1250 OCEANSIDE PARTNERS Red Hill 1250,Inc., a Washington corporation(the "General Partner"),the sole general partner of 1250 Oceanside Partners, a Hawaii limited partnership C1250 Oceanside " or the "Company"), hereby certifies that the General Partner, pursuant to and in accordance with 1250 Oceanside's Second Amended and Restated Limited Partnership Agreement dated as of May 23, 2002, as amended by that certain Oceanside Partners Amendment Agreement dated as of August 19, 2002, and by that certain Second Oceanside Partners Amendment Agreement dated as of March 24, 2005 (the "Limited Partnership Agreement "), adopted the following resolutions for, and on behalf of, 1250 Oceanside, which remain in full force and effect and have not been amended,annulled,rescinded,or revoked as of the date hereof: RESOLVED that the Company shall file a petition for relief under Chapter 11 of the United States Bankruptcy Code and, in this respect, the General Partner, acting through Craig Pickett, the sole director of the Board of Directors of General Partner, and the President/General Manager, and Chief Financial Officer, Sales and Marketing Director, and Development Construction Manager of the Company (or his successor or successors in office), is authorized, on behalf of the Company,to execute all petitions,declarations, schedules, statement of financial affairs, notices, and any other documents as may be necessary or appropriate, and take such further actions as may be necessary or appropriate to commence and prosecute a case and related proceedings for relief under Chapter 11 of the Bankruptcy Code; and be it further RESOLVED that the Company shall continue the retention of Gelber, Gelber & Ingersoll, A Law Corporation, of Honolulu, Hawaii, as its bankruptcy and insolvency counsel in connection with its said bankruptcy case and related proceedings under the Bankruptcy Code in connection with said case and proceedings, and other matters; and be it further 0601840.doc l 1...1.S, Bankruptcy court Hawaii :413 00.3:;$ Ok iii ca 03/1:) , 4 `"ti �3 RESOLVED that the General Partner, acting through Craig Pickett, the sole director of the Board of Directors of General Partner, and the President/General Manager, and Chief Financial Officer, Sales and Marketing Director,and Development Construction Manager of the Company(and his successor or successors in office),is authorized and empowered to do and perform, or cause to be done and performed,any and all such other acts, matters, and things as in the judgment of the General Partner may be necessary or appropriate in order to effectuate these Resolutions;and be it further RESOLVED that the General Partner, acting through Craig Pickett, as the sole Director of the Board of Directors of General Partner, and the President/General Manager, and Chief Financial Officer, Sales and Marketing Director, and Development Construction Manager of the Company(and his successor or successors in office),is authorized and directed to certify a copy of any or all of these Resolutions (by original or facsimile signature) for any and all purposes, including, but not limited to, the aforesaid bankruptcy proceedings. DATED: 7 171"- 1- 2013. RED HILL 1250,INC., a Washington corporation, Sole General Partner 1250 Oceanside Partners By Craig Pickett /14# Sole Director 0601840,doc 2 �^s B {,gat uktfv Co qt. � �. ;a'�.i,. �� u ° �:•:��.�� �..'vt a hfC r):,?i`l,°1., ' 84(Ofl1dal Form 4)(12107) United States Bankruptcy Court District of Hawaii In re 1260 OCEANSIDE PARTNERS Case No. Debtor(s) Chapter 11 LIST OF CREDITORS HOLDING 20 LARGEST UNSECURED CLAIMS Following is the list of the debtor's creditors holding the 20 largest unsecured claims.The list is prepared in accordance with Fed.R.Bankr.P. 1007(d)for filing in this chapter 11 [or chapter 9]case.The list does not include(1) persons who come within the definition of"insider"set forth in 11 U.S.C.§101,or(2)secured creditors unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the 20 largest unsecured claims. If a minor child is one of the creditors holding the 20 largest unsecured claims,state the child's initials and the name and address of the child's parent or guardian,such as"A.B.,a minor child,by John Doe,guardian." Do not disclose the child's name. See 11 U.S.C.§ 112;Fed.R.Bankr.P.1007(m). (I) (2) (3) (4) (5) Name of creditor and complete Name,telephone number and complete Nature of claim(trade Indicate tfclaim is Amount of claim mailing address including zip mailing address,including zip code,of debt,bank loan, contingent, (ifsecure(alto code employee,agent,or department of creditor government contract unliquidated state value of familiar with claim who may be contacted eta) disputed or security) subject to setoff SUN KONA FINANCE I,LLC D.GRIMSMAN Loan S Mortgage Unllquldated 828,326,776.39 C/O D.GRIMSMAN SUN KONA FINANCE I,LLC 2260 DOUGLAS BLVD., 2280 DOUGLAS BLVD.,SUITE 240 (24,476,028.30 SUITE 240 ROSEVILLE,CA 96881 secured) ROSEVILLE,CA 96861 (918)773-1101 COUNTY OF HAWAII JOSEPH KAMELAMELA Note&Mortgage 20,000,000.00 333 KILAUEA AVENUE,2ND COUNTY OF HAWAII FLOOR 333 KILAUEA AVENUE,2ND FLOOR (9,155,128.30 HILO,HI 98720 HILO,HI 98720 secured) (808)961.8261 ACKERMAN RANCH,INC. ROY A.VITOUSEK m,ESQ. Purchase Money Unitquldatsd 13,416,700.00 P.O.BOX 716 76-170 HUALALAI ROAD,STE 8-303 Mortgage KEALAKEKUA,HI 96750 KAILUA-KONA,HI 98740.1737 (5,892,000.00 (808)3294811 secured) WHITE FAMLY TRUST DTD FRANCIS L JUNG,ESQ Claims In pending Contingent 3,500,000.00 6/26/99 75-170 HUALALAI RD,STE D-214 lawsuit(Chill No. Unliquldated CIO RICHARD AND TONI KALUA-KONA,HI 96740 12.1.198K) Disputed WHITE,TS (808)328.4862 784868 KUHINANUI ST. KALUA-KONA,HI 96740 W.&V.BATISTE,INDIV.S A BERNARD BAYS,ESQ Claims In pending Contingent 2,983,222.00 AS TEES 1099 ALAKEA ST,16TH FLOOR lawsuit(Civil No. Unllquldaled W.&V.BATISTE REV HONOLULU,HI 96813 12-1.00595K) Disputed LIVING TRUST (808)523-9000 754471 KONA BAY DR KAILUA-KONA,HI 96740 MARK a SUSAN PERRY FRANCIS L JUNG,ESQ Claims In pending Contingent 2,700,000.00 DAVIS,TEES 75-170 HUALALAI RD,STE D-214 lawsuit(Civil No. Unllquldated 2000 DAVIS FAMILY TR DTD KAILUA-KONA,HI 96740 12-1-199K) Disputed 6/2/2000 (808)3264852 865 S.FIGUEROA ST,12TH FLR LOS ANGELES,CA 90017 _ sd ewere Cogrt¢d(a)1908-2013 CCH INCORPORATE).www.beetease.com Best Case Berbaupecy E.. (.0..(' )k 0'3/06/ Pnut. B4(OMdNI Form 4)(127)-Coat In re 1260 OCEANSIDE PARTNERS Case No. Debtor(s) LIST OF CREDITORS HOLDING 20 LARGEST UNSECURED CLAIMS (Continuation Sheet) (1) (2) (3) (4) (5) Name of creditor and complete Name,telephone number and complete Nature of claim(trade Indicate((claim is Amount of claim mailing address including sip mailing address,including sip code,of debt,bank loan, contingent, ft/secured also code employee,agent,or department of creditor government contract, unliquidated state value of familiar with claim who may be contacted etc.) disputed or security) subject to setof MICHAEL J.ROBERTS,IND FRANCIS L JUNG ESQ Claims In pending Contingent 2,300,000.00 &OBO 75-170 HUALALAI RD,STE D-214 lawsuit(CMI No. Unliquidatad MJR,FLLP&MICHAEL J KALUA-KONA,HI 96740 12-1.268K) Disputed ROBERTS INC (808)326-4852 6688 GUNPARK DR BOULDER,CO 80301 J FREIMAN&8 MENDEL,IND A BERNARD BAYS ESC Claims in pending Contingent 1,921,724.00 &AS TEES 1099 ALAKEA STREET 16TH FLR lawsuit(CMI No. Unliquldated J FREIMAN PSP HONOLULU,HI 96813 12.1-00596K) Disputed 20 SEAVIEW AVE (808)623-9000 NEWPORT,RI 02840 ALLEN,WM&TERRI LIVING FRANCIS L JUNG,ESQ Claims In pending Unliquidated 1,300,000.00 TRUSTS 75-170 HUALALAI RD,STE D-214 lawsuit(Clv.No. Disputed C/O WM&TERRI ALLEN, KAILUA-KONA,HI 96740 12-1.051K) TEES (808)328.4882 113 METATE PL. PALM DESERT,CA 92260 SUNG HUN&NANCY FRANCIS L JUNG,ESQ Claims In pending Unliquldated 1,250,000.00 CHUNG IND&OBO 76-170 HUALALAI RD STE D-214 lawsuit(CMI No. Disputed CHUNG FAMILY KAILUA-KONA,HI 96740 12-1-062K) INVESTMENTS LLC (808)326.4852 73-1381 KIPAPA PL KAILUA KONA,HI 96740 R L&T D DVORAK,INDV& R L&T D DVORAK,INDV&AS TEES Claims In pending Contingent 1,224,000.00 AS TEES R L DVORAK LTD TR DTD 12/11/2003 lawsuit(CMI No. Unliquldated R L DVORAK LTD TR DTD 765 CHUCKANUT SHORE ROAD 12-1495K) Disputed 12/11/2003 BELUNGHAM,WA 98229 766 CHUCKANUT SHORE ROAD BELUNGHAM,WA 98229 .J HASSFURTHER TR8T FRANCIS L JUNG ESQ. Claims In pending Contingent 1,100,000.00 AGMT DTD 7131198 76-170 HUALALAI RD#0214 lawsuit(CMI No. Unllquidated C/O JAN R.&THOS. KAILUA-KONA,HI 96740 12-1-451K) Disputed HASSFURTHER,TR (808)3284862 1121 MELODY RD. LAKE FOREST,IL 60045 KITCHELL CONTRACTORS KITCHELL CONTRACTORS INC. Fees end general Contingent 1,080,000.00 INC. 1707 E HIGHLAND,STE 200 excise tax claim Unliquldated 1707 E HIGHLAND,STE 200 PHOENIX,AZ 86016 Disputed PHOENIX,AZ 86016 (602)2844411 HALE IRWIN HALE IRWIN Fees Unliquidated 866,000.00 8800 NORTH GAINEY 5720 N SAGUARO RD Disputed CENTER DR. PARADISE VALLEY,AZ 85253 SUITE 279W SCOTTSDALE,AZ 86258 _ Sotlwws Cop ii N(s)1906-2013 CCM MICORPORM'®-www.bertease.com Best Case 8enIm 4y kl i. Ha, '1+il a Pi B4(Official Form 4)(12/07)-Coat. In re 1250 OCEANSIDE PARTNERS Case No. Debtor(s) LIST OF CREDITORS HOLDING 20 LARGEST UNSECURED CLAIMS (Continuation Sheet) (1) (2) (3) (4) (5) Name.of creditor and complete Name,telephone number and complete Nature of claim(trade Indicate ffclabn Lc Amount of claim mailing address including zip mailing address,including zip code,of debt,bank loan, contingent [jsecmed also code employee,agent,or department of creditor government contract, unllqufdated, state value of familiar with claim who may be contacted etc) disputed or security] suddea to sele NATIVE SUN BUSINESS JOHN D" EFRIES Management Unlquidated 800,000.00 GROUP,INC. NATIVE SUN BUSINESS GROUP,INC. consulting Disputed C/O JOHN DEFRIES 73-1211A KAIMINANI DR. 73-1211A KAIMINANI DR. KAILUA-KONA,HI 96740 KAILUA-KONA HI 88740 (808)478-1556 ISEMOTO CONTRACTING ISEMOTO CONTRACTING CO.,LTD. Claim for retention Contingent 587,354.84 CO.,LTD. 7460395 QUEEN KAAHUMANU HWY amount Unuquldated 74-603513 QUEEN KAILUA KONA,HI 58740 Disputed KAAHUMANU HWY (808)3294051 KALUA KONA,HI 88740 IRS OF THE ESTATE OF DENNIS A KRUEGER,ESQ. Lease rent UnIlquidaed 176,285.03 SP.BISHOP 75.6722 KUAKINI HWY STE 208 Keauhou office Disputed ATTN:COMMERCIAL ASSET KAILUA-KONA,HI 88740 MANAGER (808)326-7664 567 S.KING ST.,STE 200 HONOLULU,HI 96813 LOT 163 LLC LOT 163 LLC Damage claim Unliquldated 150,000.00 C!O THOMAS CROSSWHITE C/O THOMAS CROSSWHITE related to lot and Disputed P 0 BOX 2808 P O BOX 2808 membership KAILUAKONA.HI 86740 KAILUA-KONA,HI 88740 purchase IRONOATE(AKA JASON OROSFELD Project Contingent 100,000.00 WESTWOOD HOKUUA LLC) IRONGATE(AKA WESTWOOD management fee Unuquldaed 10880 WILSHIRE BLVD. HOKUUA LLC) Disputed #2200 10880 WILSHIRE BLVD.#2200 LOS ANGELES,CA 80026 LOS ANGELES,CA 90025 ,(310)500-2558 WES THOMAS& VVES THOMAS&ASSOCIATES Survey work; Unfquidaed 50,000.00 ASSOCIATES 754745 KALAWA ST. professional Disputed 76.5748 KALAWA ST. KAILUA-KONA,HI 96740 services KAILUA-KONA.HI 96740 DECLARATION UNDER PENALTY OF PERJURY ON BEHALF OF A CORPORATION OR PARTNERSHIP 1,the President/General Manager/CFO of the partnership named as the debtor in this case,declare under penalty of perjury that 1 have read the foregoing list and that it is true and correct to the best of my information and belief. ////i—c- Date signature 4 l r Craig`Pickett President/General negeriCFO Penalty for making a false statement or concealing property: Fine of up to x500,000 or imprisonment for up to 5 years or both. 18 U.S.C.§§ 152 and 3571. Sates Cop/tight(c)19942013 CCN INCORRORAT()-wwr.bestcaee.con Best Case Bankruptcy I�itit (i., ' C"db r dkV, ,+ 13-00303 4_4303 A t ;100 0,5 ,)6, 13 t United States Bankruptcy Court District of Hawaii In re 1260 OCEANSIDE PARTNERS Case No. Debtor Chapter it LIST OF EQUITY SECURITY HOLDERS Following is the list of the Debtors equity accurlty holders which is prepared in accordance with Rule 1007(a)(3)for filing in this chapter 11 case. Name and last known address Security Number Kind of or place of business of holder Class of Securities Interest HOKULPA HOLDING COMPANY,LLC 1% Limited Partner C/O CRAIG PICKETT 1380 LEAD HILL BLVD,SUITE 108 ROSEVILLE,CA 86681 RED HILL 1269,INC. 99% General Partner C/O CRAIG PICKETT 1380 LEAD HILL BLVD,SUITE 106 ROSEVILLE,CA 96881 DECLARATION UNDER PENALTY OF PERJURY ON BEHALF OF CORPORATION OR PARTNERSHIP I,the President/General Manager/CFO of the partnership named as the debtor in this declare under penalty of perjury that I have read the foregoing ist of Equity Security Holders and that it is true .•rrect to ' - of my information and bDate belief. � :v 7,13 Signature Craig Pickett President/General Manager/CFO Penalty for making a false srakmenr or concealing property: Pine of up to$500,000 or imprisonment for up to 5 years or both. 18 U.S.0$$ 152 and 3571. 0 continuation sheets attached to List of Equity Security Holders Shcware C01,00M(W lGSe.2Qt1-CON INCORPORATED•www.raskaae.00m Baal Con Bankruptcy 6 Bankruptcy Cow t Hawaii :'; 1:1-0035:3 s °;. .:3 I I FikA CKi106/13 :12 United States Bankruptcy Court District of Hawaii In m 1260 OCEANSIDE PARTNERS Case No. Debtors) Chapter 11 VERIFICATION OF CREDITOR MATRIX i,the President/General Manager/CFO of the partnership named as the debtor in this case,hereby verify that the attached fist of creditors is true and correct to the best of my knowledge. Date: Crain Pickett/President/ a I Ma FO SignerlTitle Software CopptpN(c)1956E00 OCti INCORPORATED-ww.bsstaas.corp But Cato Bankruptcy 1250_Oceanside_Matrix.txt 001 CASSANDRA PC TRUST P. 0. BOX 1476 KAILUA-KONA, HI 96745 ACKERMAN RANCH INC. P. O. BOX 715 KEALAKEKUA, HI 96750 ANNIE & DEVLYN J K AKAU 76-6170 PLUMERIA ROAD KAILUA-KONA, HI 96740 ALLEN, WM & TERRI LIVING TRUSTS C/O WM & TERRI ALLEN, TEES 113 METATE PL. PALM DESERT, CA 92260 ALOHA PETROLEUM SAVE-A-$ CLUB 1132 BISHOP ST. , STE 1700 HONOLULU, HI 96813 ALSTON HUNT FLOYD & ING 65-1241 POMAIKAI PL STE 2 KAMUELA, HI 96743 ALVAREZ & MARSAL DEVELOPMENT, LLC ATTN: DAWN M MARSAL-WALLIN 21677 SHEFFIELD DR. FARMINGTON HILLS, MI 48335 AMERICAN SAVINGS BANK FSB ATTN CORPORATE REAL ESTATE P.O. BOX 2300 HONOLULU, HI 96804-2300 ANDERSON HOMES & DESIGN CO OF HI C/0 THE LYLE ANDERSON CO INC 8777 N GAINEY CTR DR. , STE 205 SCOTTSDALE, AZ 85258 LYLE ANDERSON 8777 N. GAINEY CTR DR. , STE 205 SCOTTSDALE, AZ 85258 ANDRADE ENTERPRISES, LLC 20 S. SANTA CRUZ AVENUE, SUITE 306 LOS GATOS, CA 95030 AON RISK SERVICES INC DEPT 9832 LOS ANGELES, CA 90084-9832 APEX OFFICE CENTERS 1380 LEAD HILL BLVD STE 106 ROSEVILLE, CA 95661 ARIZONA DEPT OF REAL PROPERTY 2910 N 44TH STREET FIRST FLOOR PHOENIX, AZ 85018 ARIZONA RIGHTS LLC 8130 E. CACTUS RD. , STE 500 SCOTTSDALE, AZ 85260 Page 1 9 .93 '�l'Lw P4�= _' ,3,"4 2 ` € le'4. f.��{'� e !t'4' )6/ '' .. � . '� 1 o k `,/ }} o t __ �i�a�.t� as �, .�t ,&,I��t.a.� ,. .4 ,�. ��� e S @E is .=W1 e e. �, 4 1 ��q�,: ,. sdt... 1250_0ceanside_Matrix.txt ELTON JOHN BAIN ESQ 220 SOUTH KING 19TH FLOOR HONOLULU, HI 96813 BRIAN BAKER IND & AS T'EE OF BRIAN J BAKER TR 68-131 E PUKAUA PL SOUTH KOHALA COAST, HI 96743 BANK OF SCOTLAND PLC PRINCESS HOUSE, 1 SUFFOLK LANE LONDON EC4R OAX ENGLAND W. & V. BATISTE, INDIV. & AS T'EES W. & V. BATISTE REV LIVING TRUST 75-5471 KONA BAY DR KAILUA-KONA, HI 96740 A BERNARD BAYS ESQ 1099 ALAKEA ST FLOOR 16 HONOLULU, HI 96813 GEORGE BEARD P. O. BOX 1476 KAILUA-KONA, HI 96745 BELT COLLINS HAWAII LTD. C/0 ALAN KATO 2153 N. KING ST. , STE 200 HONOLULU, HI 96819 D THEO & DEBORAH H BERGHORST T'EES BERGHORST 1998 DYNASTIC TRUST 1751 LAKE COOK RD, SUITE 350 DEERFIELD, IL 60015 GEORGE BERKEY IND. & OBO HOKULIA INVESTORS LLC 1776 PARK AVE SUITE 4 PARK CITY, UT 84060-5149 BIG ISLAND AUTO SPA 74-5590 ALAPA ST KAILUA-KONA, HI 96740 ROGER & CINDY BUCKLES, TEES R & C BUCKLES RFT 10/29/1991 5000 UPPER RIDGE RD SANTA ROSA, CA 95404 CANTOR BROS HAULING SERVICES AKA CANTRO BROS TRANSPORT SERV P 0 BOX 1777 KAILUA-KONA, HI 96745 CARLSMITH BALL 1001 BISHOP ST. , STE 2200 HONOLULU, HI 96813 CEDAR LAND, L.L.C. 200 PATTERSON AVENUE, APT 810 Page 2 U WakrUOi?N Cot.{g`t f'ic:fwm1 ?,I", 1.` ..t it .1 f 03 t 1 r c < `' a 1250_Oceanside_Matrix.txt SAN ANTONIO, TX 78209 CONNIE CHANG ESQ 999 BISHOP ST 23RD FLR HONOLULU, HI 96813 CHARTANA FOUR LLC C/O CHARLES P. COWIN 1707 1/2 POST OAK BLVD. HOUSTON, TX 77056 SUNG HUN & NANCY CHUNG IND & OBO CHUNG FAMILY INVESTMENTS LLC 73-1381 KIPAPA PL KAILUA KONA, HI 96740 CLARK REALTY CORP C/O LARRY HULL 75-5722 KUAKINI HWY #103 KAILUA-KONA, HI 96740 CLARK REALTY CORP. C/O PUTNAM D. CLARK 75-5722 KUAKINI HWY #203 KAILUA-KONA, HI 96740 CLUB AT HOKULIA, THE P 0 BOX 247 KEALAKEKUA, HI 96750 CONKLIN FLP, THE C/O DENNIS CONKLIN 2323 w MUSCAL #201 PHOENIX, AZ 85029 CONKLIN FLP, THE C/O DENNIS CONKLIN 8017 PASEO AVELLANO CARLSBAD, CA 92009 DENNIS & ROSEMARIE CONKLIN 8017 PASEO AVELLANO CARLSBAD, CA 92009 DENNIS R COOK 975 BELLA VISTA LN. BURLINGTON, WA 98233-1488 COUNTY OF HAWAII 333 KILAUEA AVENUE, 2ND FLOOR HILO, HI 96720 COUNTY OF HAWAII 25 AUPUNI ST. HILO, HI 96720 COUNTY OF HAWAII ATTN: B 3 LEITHEAD 101 PAUAHI ST #3 HILO, HI 96720 COUNTY OF HAWAII DWS Page 3 & Bankruptcy C.urt kiwi. 413-00353 =...>' L 4 I Eked 03/W13 Page ,3 of 32 1250_oceanside_Matrix.txt 345 kEKUANAO'A ST STE 20 HILO, HI 96720 COUNTY OF HI DEPT OF PUBLIC WORKS 75-5706 KUAKINI HWY STE 109 KAILUA—KONA, HI 96740 WILLIAM & RITA COWELL P. O. BOX 783 CAPTAIN COOK, HI 96704 THOMAS & BARBARA CROSSWHITE 7440 FOXGLOVE CRT PARK CITY, UT 84098 PATRICK M. CUNNINGHAM 78-7156 KALEIOPAPA KAILUA—KONA, HI 96740 DAVID THOMAS DBA ALL HAWAII WATER TREATMENT P.O. BOX 237 HOLUALOA, HI 96725 AMY ELIZABETH DAVIS 4963 S. 4925 W. HOOPER, UT 84315 MARK & SUSAN PERRY DAVIS, T'EES 2000 DAVIS FAMILY TR DTD 5/2/2000 865 S. FIGUEROA ST, 12TH FLR LOS ANGELES, CA 90017 DEPARTMENT OF WATER SUPPLY 78-6717 MAMALAHOA HWY HOLUALOA, HI 96725 DEPARTMENT OF WATER SUPPLY ATTN: MANAGER 345 KEKUANAO'A ST. , STE 20 HILO, HI 96720 STEPHEN & DEBORAH DINSMORE, T'EES S & D DINSMORE TRUST DTD 11/18/82 1601 VIA ARRIBA PALOS VERDES ESTATES, CA 90274 DISPUTE PREVENTION & RESOLUTION INC 1003 BISHOP ST STE 1155 HONOLULU, HI 96813 GEORGE & ALICE DOERFLER 881 FREMONT AVE, SUITE B5 LOS GATOS, CA 94024 DANIEL D. DOMOGALA, JR. 47685 N ECO MUSEUM RD MARICOPA, AZ 85239 EDWARD DONG P.O. BOX 65654 PORTLAND, OR 97238 Page 4 ¢ .ic,; € _ 3 tFf g 00). 33'Z e 1 3q.i r t.; S 3 PI s -fir ' i 1250_0ceanside_Matrix.txt R L & T D DVORAK, INDV & AS TEES R L DVORAK LTD TR DTD 12/11/2003 765 CHUCKANUT SHORE ROAD BELLINGHAM, WA 98229 E JEAN GREENWELL REV TR DTD 9/11/92 C/O WILLIAM N. GREENWELL, TR P.O. BOX 1236 KEALAKEKUA, HI 96750 PHILIP A. EDLUND 8 PLAZUELA INTIMO SANTA FE, NM 87506 ROBERT EDWARDS, IND & OBO ENIS, LLC P 0 BOX 3903 PASCO, WA 99302 ENTERPRISE BANK AND TRUST 12695 METCALF AVE OVERLAND PARK, KS 66213 ENVIRONMENTAL ASSESSMENT 1820 KIHI STREET HONOLULU, HI 96821 ENVIRONMENTAL ASSESSMENT LLC 1232 LUNALILO HOME RD. HONOLULU, HI 96825 EQUTANT FINANCIAL SERVICES INC 5401 N. PIMA RD. , STE 150 SCOTTSDALE, AZ 85250 TIM T. ESAKI 200 VILLAGE RD LAHAINA, HI 96761 CAROL ANN FARROW P.O. BOX 789 GEYSERVILLE, CA 95441 FEDERAL EXPRESS P.O. BOX 7221 PASADENA, CA 91109-7321 CHARLES FLAHERTY, JR. P.O. BOX 922 CAPTAIN COOK, HI 96704 RORY FLYNN 237-C KEAWE STREET HILO, HI 96720 F00 1980 TRUST C/O WENDELL & SUE LING FOO 1680 OHAWAI PLACE HONOLULU, HI 96821 FOREVER SUCCESS LTD C/0 MERRILL LYNCH, TDI TEAM BELGRAVIA HOUSE, 34/44 CIRCULAR RD Page 5 U.S 1-3al lke€.fr 4 {,,. it 41.S-00353.. F k: -0 1 t Pik' t.. 03A)f .a'? & 1250_Oceanside_Matrix.txt DOUGLAS, ISLE OF MAN IM1 1QW FOREVER SUCCESS LTD C/O "STEVE" CHANG, 115 GEZHI ROAD YANG MING SHAN, SHINLIN DISTRICT TAIPEI CITY 112, TAIWAN (R.O.C.) FRONT NINE HOLDING, INC. FKA LYLE ANDERSON HI HOLD. CO INC) 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 FRONT NINE, LLC C/O CRAIG PICKETT 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 TOKUO & MASAKO FUJITA 3-21-23 KAMIKITAZAWA SETAGAYA—KU, TOKYO 156-0057 JAPAN RYUTARO FUKAMACHI C/O CHIEKO MADENOKOJI P.O. BOX 390428 KEAUHOU, HI 96739 G-2 ARCHITECTS AKA GUERIN GLASS ARCHITECTS, PC) 12 WEST 27th ST. , 11TH FL. NEW YORK, NY 10001 GARY YAMAGATA 3211 MELEMELE PL. HONOLULU, HI 96822 KARA L GERVAIS GERVAIS & WATSON LLP 10636 SCRIPPS SUMMIT COURT #102 SAN DIEGO, CA 92131 DEAN R. GILPIN 4129 E. TURNEY AVENUE PHOENIX, AZ 85018 HERBERT M. & MARY KATHY GOULD 8313 NE JUANITA DRIVE KIRKLAND, WA 98034 ALAN D & KATHERINE E GREENWELL 82-919 COFFEE DRIVE CAPTAIN COOK, HI 96704 RICHARD H. GREENWELL P. 0. BOX 644 KEALAKEKUA, HI 96750 LARRY S. & JAQUA L. GUTSCH, TEES GUTSCH FAM TR DTD 12/28/95 10040 E. HAPPY VALLEY RD #356 SCOTTSDALE, AZ 85255 ROBERT H. HACKNEY Page 6 t. ran:x�di�� cy' c Csu.a e +�xkr.�.. .�d .> i53 a s ( -1136,1 r. P tgo t i o 1250_oceanside_Matrix.txt 125 WEST SHORE ROAD NEW PRESTON, CT 06777-1412 REBECCA HARRINGTON 81-1018 MELEANA PL. KEALAKEKUA, HI 96750 HAWAII ELECTRIC LIGHT CO. INC. P.O. BOX 909 HONOLULU, HI 96808-0909 HAWAII EMPLOYERS COUNCIL P 0 BOX 29699 HONOLULU, HI 96820-2099 HAWAII MEDICAL SERVICE ASSOCIATION P.O. BOX 29330 HONOLULU, HI 96820-1730 HAWAII MODULAR SPACE 73-4092 HULIKO'A DR. KAILUA—KONA, HI 96740 HAWAII PROPERTIES, LLC 16255 S.W. HOLLY HILL RD. HILLSBORO, OR 97123 HAWAII ST TAX DEPARTMENT 425 QUEENT ST (ATTN C JOHIRO) HONOLULU, HI 96813 HAWAII STATE DEPARTMENT OF HEALTH 1250 PUNCHBOWL ST. , 3RD FLOOR HONOLULU, HI 96813 HOWARD L. HAWKS C/O 1044 N. 115TH ST. , STE 400 OMAHA, NE 68118 HBOS PLC PRINCESS HOUSE, 1 SUFFOLK LANE LONDON EC4R OAX JAMES B. & CAROL M. HEBETS C/O JAMES HEBETS 2575 E CAMELBACK RD. , STE 700 PHOENIX, AZ 85016 DR ANTHONY K HEDLEY 2122 E HIGHLAND AVE. , STE 300 PHOENIX, AZ 85016 ANTHONY HENRIQUES P 0 BOX 1014 CAPTAIN COOK, HI 96704 ELIZABETH F. HEUER RT 1, 135 SUNSET DRIVE RONCEVERTE, WV 24970 HI DEPT OF LAND & NATURAL RESOURCES ATTN: CHAIRPERSON Page 7 .#.� } !'Ogn * • L!!�. -1t.%Vii:! # a, eti,$ *5, a,.,_iii i .it fn 1 J P,1(je n t c? 1250_Oceanside_Matrix.txt 1151 PUNCHBOWL ST. , ROOM 130 HONOLULU, HI 96813 DAVID D. HIGGINS, ESQ. 65-1241 POMAIKAI PL STE 2 KAMUELA, HI 96743 HOKULI'A HOLDING COMPANY, LLC C/O CRAIG PICKETT 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 HOKULIA 14 LLC C/O ALAN LIVINGSTON P.O. BOX 1271 CAPTAIN COOK, HI 96704 HOKULIA 14 LLC C/O RICHARD BAUSER P 0 BOX 194 BRECKENRIDGE, CO 80424 HOKULIA COMMUNITY ASSN C/O ASSOCIA HAWAII 75-169 HUALALAI RD KAILUA-KONA, HI 96740 HOKULIA FOUNDATION, THE ATTN: ALAN LIVINGSTON P 0 BOX 2059 KEALAKEKUA, HI 96750 HOKULIA PARK & CULTURAL SITES c/o ASSOCIA HAWAII 75-169 HUALALAI RD KAILUA-KONA, HI 96740 HOME CONVENIENCE CTR 74-5467 KAIWI ST. , BAY 1-4B KAILUA KONA, HI 96740 WILLIAM HOOPER JR III P. 0. BOX 1553 KAILUA-KONA, HI 96745 GARY M. HOOPER P. 0. BOX 11 KEALAKEKUA, HI 96750 LENA K. HOOPER P. 0. BOX 11 KEALAKEKUA, HI 96750 MARY K. HOOPER P. 0. BOX 11 KEALAKEKUA, HI 96750 SANDRA LEE HOUSE P.O. BOX 676333 RANCHO SANTA FE, CA 92067 SANDRA LEE HOUSE PO BOX 614 Page 8 ¢i dd 4...1.x. � xykr y tEV Court µ #13-00333 Dkt I Filed 03106/18 ago 8 f32 1250_0ceanside_Matrix.txt ROSEVILLE, CA 95661 HUBS HAWAII 85 POOKELA ST HILO, HI 96720 HYATT & STUBBLEFIELD PEACHTREE CENTER SOUTH TOWER 225 PEACHTREE ST. NE, STE 1200 ATLANTA, GA 30303 IMANAKA KUDO & FUJIMOTO 745 FORT STREET 17th FLOOR HONOLULU, HI 96813 J DOUGLAS ING ESQ 999 BISHOP ST 23RD FLR HONOLULU, HI 96813 INTRALINKS INC 150 3 42ND STREET 8TH FLOOR NEW YORK, NY 10017 IRONGATE (AKA WESTWOOD HOKULIA LLC) 10880 WILSHIRE BLVD. #2200 LOS ANGELES, CA 90025 HALE IRWIN 8800 NORTH GAINEY CENTER DR. SUITE 279W SCOTTSDALE, AZ 85258 HALE S & SALLY J IRWIN 5720 NORTH SAGUARO ROAD PARADISE VALLEY, AZ 85253 ISEMOTO CONTRACTING CO. , LTD. 74-5039B QUEEN KAAHUMANU HWY KAILUA KONA, HI 96740 J B ARCHITECTURE, INC. ATTN: MICHAEL "JAMIE" BUSCH 73-1081 AHIKAWA ST. KAILUA-KONA, HI 96740 J FREIMAN & S MENDEL,IND & AS T'EES J FREIMAN PSP 20 SEAVIEW AVE NEWPORT, RI 02840 J HASSFURTHER TRST AGMT DTD 7/31/98 C/O JAN R. & THOS. HASSFURTHER, TR 1121 MELODY RD. LAKE FOREST, IL 60045 JACK B. GREENWELL REV TR DTD 6/9/86 C/O B. GREENWELL & J DOLLAR S.TEES 2123 THORNSBERRY RD SONOMA, CA 95476 JEAN GREENWELL TRUST C/O NORMAN GREENWELL P. 0. BOX 1236 Page 9 1250_Oceanside_Iatrix.txt KEALAKEKUA, HI 96750 JEAN TICHENOR FT DTD 2/24/98 C/O JEAN TICHENOR, TS 9016 N MORNING GLORY RD. PARADISE VALLEY, AZ 85253 JERRY EGAMI P.O. BOX 1165 KEALAKEKUA, HI 96750 JUNG & VASSAR PC 75-170 HUALALAI RD STE D-214 KAILUA-KONA, HI 96740 JWH LLC C/O JAMES HEBETS 2575 E CAMELBACK RD. , STE 700 PHOENIX, AZ 85016 KAINALIU KAHAKAI LLC ATTN: GEORGE A SCHATTAUER JR P 0 BOX 2300 KEALAKEKUA, HI 96750-2300 KAISER FOUNDATION HEALTH PLAN P.O. BOX 29080 MEMB ADMIN-GROUP HONOLULU, HI 96820-1480 KANAKAOLE KELIIKIPI EST C/O FRANCIS H P KENAAINA & OHANA P. 0. BOX 1743 KEALAKEKUA, HI 96750 KDM CHARTANA LLC C/O KEVIN MOORE 4046 JOE COLLIER DR. DACONO, CO 80514 JACOB KEANAAINA TO BE SUPPLIED] WALTER JOHN KELLY P.O. BOX 917 CAPTAIN COOK, HI 96704 KEOPUKA DEVELOPMENT COMPANY FKA LYLE ANDERSON DEV CO HAW. INC. 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 KEOPUKA HOLDING COMPANY, LLC C/O CRAIG PICKETT 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 KEOPUKA PACIFIC HOLDING, INC. FKA LYLE ANDERSON PAC. HOLD. CO. 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 KESSNER UMEBAYASHI BAIN 220 S. KING ST. , STE 1900 Page 10 1250_0ceanside_Matrix.txt HONOLULU, HI 96813 BARBARA KILDOW P.O. BOX 1596 KAILUA-KONA, HI 96745 KIMO C. LEONG, ESQ. 737 BISHOP STREET, STE 2060 HONOLULU, HI 96813 KIMO D CUMMINGS & VIRGINIA CHA 27 WEST COAST CRESCENT TOWER D #18-24 SINGAPORE 128048 KITCHELL CONTRACTORS INC. 1707 E HIGHLAND, STE 200 PHOENIX, AZ 85016 DANI KNAPP-BONHAM 140 HO'OHANA STREET, #312 KAHULUI, HI 96732 RICHARD B. & JOAN R. KOMEN PO BOX 4427 ROCHE HARBOR, WA 98250 KONA COAST REALTY 75-240 NANI KAILUA DR STE 8 KAILUA-KONA, HI 96740 KONA LOCKSMITH 74-5543 KAIWI STREET KAILUA-KONA, HI 96740 KONA LOT 228 LLC ATTN J. ORIN EDSON P.O. BOX 14580 JACKSON, WY 83002 KONA LUA, INC. P.O. BOX 9019 KAILUA-KONA, HI 96745 KONA STORAGE KINGS P.O. BOX 878 KEALAKEKUA, HI 96750 KONA STORAGE KINGS 73-4864 KANALANI ST. KAILUA-KONA, HI 96740 DENNIS KRUEGER ESQ 75-5722 KUAKINI HWY KAILUA-KONA, HI 96740 LAFC HAWAII HOLDING CO. 1380 LEAD HILL BLVD SUITE 106 ROSEVILLE, CA 95661 LAFC HAWAII HOLDING COMPANY, LLC C/O CRAIG PICKETT 1380 LEAD HILL BLVD, STE 106 Page 11 g �. 3t xt PP Cur }} $.� i 1 E 3 3 �e if \3.�.,'l. 8i�£�b+..�2�! '.}`f ...3 a.J L.2 Y"� $ i^.t°:Y�fiS �... 4� ����£<�V.1 i».f it�. oit � � 3SC..x. 3r'61/ a.� aP�£���i� �`� � FYd —"2 1250_Oceanside_Matrix.txt ROSEVILLE, CA 95661 LAFC NORTH AMERICA HOLD. CO LLC 8130 E CACTUS ROAD, SUITE 500 SCOTTSDALE, AZ 85260 LYDIA LAGUANA 9641 SALISBURY LANE CYPRESS, CA 90630 LANDSTAR HOLDINGS WEST LLC C/O LYLE ANDERSON 8777 N. GAINEY CENTER DRIVE #205 SCOTTSDALE, AZ 85258 LANDSTAR HOLDINGS WEST LLC 8777 N GAINEY CTR DR. , STE 205 SCOTTSDALE, AZ 85258 LAS CAMPANAS LP 8130 E. CACTUS RD. , STE 500 SCOTTSDALE, AZ 85260 CHRISTIE & KATHLEEN LASSITER P. 0. BOX 8 PAPAIKOU, HI 96781 GI-IN LEE 8 DRAYCOTT PARK, #15-06 DRAYCOTT 8 SINGAPORE 259404 LEILANI THOMPSON EST TRUST P. O. BOX 4 KEALAKEKUA, HI 96750 LINCOLN NATL LIFE INSURANCE CO, THE P.O. BOX 0821 CAROL STREAM, IL 60132-0821 LLOYDS BANKING GROUP PLC PRINCESS HOUSE, 1 SUFFOLK LANE LONDON EC4R OAX JOHN LOPEZ 222 KIMBERLY ROAD NORTH BARRINGTON, IL 60010-2122 LOT 163 LLC C/O THOMAS CROSSWHITE P 0 BOX 2808 KAILUA-KONA, HI 96740 LOT 163, LLC 78-6930 KEA'AINA ST KAILUA-KONA, HI 96740 NORMA F MADDY TEE NORMA FOSTER MADDY 1997 REV TR P 0 BOX 36 LA GRANGE, CA 95329 NORMA F MADDY, TEE Page 12 r 4cY .. .F: . al ' I 0i. ,30 _ , 1 L 390 0.3,f.[ r t. # a 1250_Oceanside_Matrix.txt NORMA FOSTER MADDY 1997 REV TR 74350 QUAIL LAKES RD INDIAN WELLS, CA 92210 MAHEALANI RANCH c/o BARBARA NOBRIGA P. 0. BOX 843 KEALAKEKUA, HI 96750 MAROTTA GUND BUDD & DZERA, LLC 60 E. 42ND ST. , 50TH FLOOR NEW YORK, NY 10165 STEPHEN MAROTTA 60 E. 42ND ST. , 50TH FLOOR NEW YORK, NY 10165 GEORGE & SHARON MARSHALL 3420 SHANGRI LA RD LAFAYETTE, CA 94549 MCGLADREY & PULLEN LLP 5155 PAYSPHERE CIRCLE CHICAGO, IL 60674 McHENRY, PATRICIA ESQ. 1000 BISHOP ST, STE 1200 HONOLULU, HI 96813 MEHEULA & DEVENS LLP 707 RICHARDS ST. , PH1 HONOLULU, HI 96813 DAVID & KIM METCALF TEES METCALF FAMILY LIV TR 6/11/93 2920 ROHRER DR LAFAYETTE, CA 94549 MIGUEL FAMILY TRST DTD 1/3/00 C/O C. AND L. MIGUEL, TS 14040 S 32ND ST PHOENIX, AZ 85044 REITHANN MILBURN 5317 W. MELINDA LANE GLENDALE, AZ 85308 A. J. MILLS, JR, AAL P. 0. BOX 187 BOULDER, CO 80306 KEVIN & PATRICIA MOORE, IND & OBO PHM CARTANA LLC 4046 JOE COLLIER DR DACONO, CO 80514 MARK T. MOWAT 17002 MARCY ST. , STE 120 OMAHA, NE 68118 NATIONAL PARK SERVICE ATTN ARIC ARAKAKI 73-4786 KANALANI ST #14 Page 13 1250_Oceanside_Matrix.txt KAILUA-KONA, HI 96740 NATIVE SUN BUSINESS GROUP, INC. C/O JOHN DEFRIES 73-1211A KAIMINANI DR. KAILUA-KONA, HI 96740 NEWTON, JEFFREY N & CAROLYN E T'EES FOR THE NEWTON FAMILY TRUST 3793 SMALLWOOD COURT PLEASANTON, CA 94566 CAROLYN NORMAN TO BE SUPPLIED] PATRICE & WILLIAM O'GRADY ONE CHARLES ST. SOUTH, #906 BOSTON, MA 02116 EDWARD J. & BARBARA O'SULLIVAN 6533 SEAVIEW NW, PH2A SEATTLE, WA 98117 OASIS MANAGEMENT RESOURCES LLC 8130 E. CACTUS RD. , STE 500 SCOTTSDALE, AZ 95260 OCEANIC TIME WARNER CABLE P.O. BOX 30050 HONOLULU, HI 96820 RONALD T OGOMORI ESQ 925 BETHEL ST STE 304 HONOLULU, HI 96813 MIKA ONO PO BOX 390563 KEAUHOU, HI 96739 THOMAS W & SHAWNI L PACE IND & OBO HOKUKANO RANCH P 0 BOX 2240 KEALAKEKUA, HI 96750 PACE INVESTMENTS LP C/O JOHN PACE JR P.O. BOX 2240 KEALAKEKUA, HI 96750 PACIFIC STAR COMPANY, LLC C/O CRAIG PICKETT 1380 LEAD HILL BLVD, SUITE 106 ROSEVILLE, CA 95661 PACIFIC WASTE INC 74-5610 ALAPA STREET KAILUA-KONA, HI 96740 PARADISE LOST, LLC 2000 PGA BOULEVARD, SUITE 3200A NORTH PALM BEACH, FL 33408 WILLIAM PARIS Page 14 R_._. 3a!=k'op i; ,fa s°s l .....ti; (, 1 J . .+ t 4 1 Hod P"<:4C r? 2,4 c= ',2 1250_Oceanside_Matrix.txt C/O WILMA J PARIS, T'EE P. 0. BOX 136 KEALAKEKUA, HI 96750 JAMES & LISA PARRISH COTEES PARRISH LIVING TR 8/9/95 417 MIRADA COURT MONTEREY, CA 93940 PARTS CENTER HAWAII 400 E KAWILI ST HILO, HI 96720 PC THOMAS INVESTMENT CO LC 3502 N. 950 E. OGDEN, UT 84414 ROBERT DANIEL PRISKE, TRUSTEE ROBERT D PRISKE LLC 401(K) PSP P. O. BOX 252 HAKALAU, HI 96710 PROSKAUER ROSE, LLP ATTN: PERRY CACACE 1585 BROADWAY NEW YORK, NY 10036-8299 PROTECT KEOPUKA OHANA P.O. BOX 166 HONAUNAU, HI 96726 REBECCA HARRINGTON 81-1018 MELEANA PL. KEALAKEKUA, HI 96750 RED HILL 1250, INC. C/O CRAIG PICKETT 1380 LEAD HILL BLVD STE 106 ROSEVILLE, CA 95661 MARK S. & CHERYL L. RICHARDS C/O THE MARYL GROUP 55 MERCHANT STREET, #2900 HONOLULU, HI 96813 GLEN M RICHMAN ESQ P 0 BOX 71720 SALT LAKE CITY, UT 84171 REYNOLD L. & KIRSTEN H. RIMOLDI 9013 GREENSBORO LANE LAS VEGAS, NV 89113 RM TOWILL 2024 N. KING ST. , 2ND FLOOR HONOLULU, HI 96819 RMB #10 HAWAII, INC. 210-8399 200 ST LANGLEY BC V2Y 3C2 CANADA Page 15 P:11u(p€ ,y Court rt 13-C4 t V>3 i I,_ 3 , qc > tZt- .a1 1250_oceanside_Matrix.txt MICHAEL J. ROBERTS, IND & OBO MJR, FLLP & MICHAEL J ROBERTS INC 6688 GUNPARK DR BOULDER, CO 80301 DONALD RULLO 75-5782 KUAKINI HWY. , #C2C KAILUA-KONA, HI 96740 PAUL H SATO ESQ 841 BISHOP ST STE 400 HONOLULU, HI 96813 SAVE A DOLLAR P 0 BOX 380029 HONOLULU, HI 96839-0029 SHOEMAKER FT DTD 11/22/89, THE C/0 CHARLES G. SHOEMAKER, TS 60 IKENA KAI PL. KULA, HI 96790 ANNA SIMEONA 487 KALAMAKU STREET HONOLULU, HI 96813 ANNA S. SIMOENA C/O DANETTE IBARRA 726 IAUKEA STREET HONOLULU, HI 96813 JAMES & CAROL O. SIMPSON, TEES J & C SIMPSON LIV TR DTD 9/19/08 P. O. BOX 1359 PEBBLE BEACH, CA 93953 WILLIAM E. SIWEK 8321 N CANTA REDONDO PHOENIX, AZ 85253 SPRING TIME SERVICES P 0 BOX 390563 KEAUHOU, HI 96739 CHIYKO K SPRINGER, TR RLT 2/25/95 2115-3506 TSURUDOMARI NAGAKURA KARUIZAWA-CHO, KITASAKU-GUN NAGANO, JAPAN STATE OF HI DLNR ATTN: NELSON AYERS 1151 PUNCHBOWL ST #325 HONOLULU, HI 96813 SUN KONA FINANCE I, LLC C/O D. GRIMSMAN 2260 DOUGLAS BLVD. , SUITE 240 ROSEVILLE, CA 95661 SUN KONA FINANCE II, LLC C/O D. GRIMSMAN 2260 DOUGLAS BOULEVARD, SUITE 240 ROSEVILLE, CA 95661 Page 16 S. ;':, kri etc Court trt - l 413-00353 Dkt it I Flied d 1,_X10 g 1 2 Pa 26 of:3 1250_Oceanside_Matrix.txt SUN KONA PROPERTIES 2260 DOUGLAS BLVD STE 240 ROSEVILLE, CA 95661 SUPERSTITION MOUNTAIN PROPERTIES 8130 E. CACTUS RD. , STE 500 SCOTTSDALE, AZ 85260 T GROUP CAPITAL, LLC C/O MARK MOWAT 17002 MARCY ST STE 120 OMAHA, NE 68118 YUTAKA & TOMOKO TAKEDA 5-29-5 DAIZAWA SETAGAYA-KU TOKYO 155-0032 JAPAN JASON M TANI ESQ 737 BISHOP ST STE 2400 HONOLULU, HI 96813 TANIGAMI FAMILY RLT DTD 9/1/99, THE HIDEYUKI & J BOGARD-TANIGAMI COTEES 1472 CLUBVIEW TERRACE LOS ALTOS, CA 94024 THE CLUB AT HOKULIA INC. P.O. BOX 247 KEALAKEKUA, HI 96750 RICHARD & LESLIE TINCHER 567 CRESTA VISTA LANE PORTOLA VALLEY, CA 94028 TOM QUITIQUIT CHEE & WATTS 75-1000 HENRY STREET STE 208 KAILUA-KONA, HI 96740 TRS OF THE ESTATE OF B.P. BISHOP ATTN: COMMERCIAL ASSET MANAGER 567 S. KING ST. , STE 200 HONOLULU, HI 96813 TATSUSHI UESHIMA 7-7-7 MINATOJIMA-NAKMACHI CHUO-KU, KOBE, HYOGO 650-8577 JAPAN ULUWEHI PROPERTIES, LLC 75-654 HUALALAI ROAD KAILUA-KONA, HI 96740 US TRST CO OF DELAWARE, NA, ADM TEE BERGHORST 1998 DYNASTIC TRUST 1751 LAKE COOK RD, SUITE 350 DEERFIELD, IL 60015 USABLE LIFE P.O. BOX 31000 HONOLULU, HI 96849-5314 KENNETH J . UVA Page 17 ::.zat:k°l.f()I(.y Cot_rt vi ? i 0 °) } $: s 4 03,06/13 P a,j > t .? 1250_oceanside_Matrix.txt 6810 108TH ST. , APT. 1H FOREST HILLS, NY 11378 VI REED & CANE INC 8522 LAKEVIEW BAY RD ROGERS, AR 72756 CHARLES P & LYNNSEY VIRDEN, T'EES VIRDEN FAMILY TR DTD 9/2/88 7530 BRIARGATE COURT RENO, NV 89523 WAIMEA WATER SERVICES INC 67-1161 MAMALAHOA HWY, STE 5 KAMUELA, HI 96743 JIMMY & NANCY WALKER C/O JIMMY WALKER 2425 E CAMELBACK RD STE 150 PHOENIX, AZ 85016 PATRICIA K. WALL 12778 ULUPALAKUA STREET KAILUA, HI 96734 MARGARET H. WATAI P. 0. BOX 11 KEALAKEKUA, HI 96750 WATER BD OF THE COUNTY OF HAWAII ATTN: CHAIRPERSON 345 KEKUANAO'A ST. , STE 20 HILO, HI 96720 SHARON WATT NEY, IND & AS T'EE WATT-NEY FAM TR DTD 6/6/89 2420 GRAND CANAL VENICE, CA 90291 WAVECOM SOLUTIONS 1132 BISHOP ST STE 800 HONOLULU, HI 96813 WAVECOM SOLUTIONS P 0 BOX 135014 HONOLULU, HI 96801 GEORGE D & ANN W WEATHERSTON 8260 N NEW BRAUNFELS AVE STE 220 SAN ANTONIO, TX 78217 WELLS FARGO BANK NA 101 N PHILLIPS AVE SIOUX FALLS, SD 57104 WES THOMAS & ASSOCIATES, INC. ATTN: CHRYSTAL YAMASAKI 75-5749 KALAWA ST. KAILUA-KONA, HI 96740 WILLIAM G. WESCH 790 MICHAEL DRIVE SONOMA, CA 95476 Page 18 b 1,1;0 to 3' f, ei of 1250_Oceanside_Matrix.txt WEST HAWAII EXCAVATING, INC. ATTN: ROBERT COWELL P.O. BOX 193 CAPTAIN COOK, HI 96704 A. COLIN WEXLER, ESQ GOLDBERG KOHN LTD 55 3AST MONROE ST #3300 CHICAGO, IL 60603-5792 WHITE FAMILY TRUST DTD 6/25/99 C/O RICHARD AND TONI WHITE, TS 78-6858 KUHINANUI ST. KAILUA-KONA, HI 96740 RICHARD O. & TONI S. WHITE, T'EES WHITE FAM TR UDLT DTD 6/25/99 150 WELLINGTON LANE ALAMO, CA 94507-1755 MICHELE WILKINS 73-1410A KALOKO DR. KAILUA-KONA, HI 96740 WILLIAM H. WILTON, IND. & AS T'EE WM H WILTON LIV TRUST P 0 BOX 415 KAILUA-KONA, HI 96745 PATRICIA WALL WILSON P. O. BOX 1397 KEALAKEKUA, HI 96750 RICH WILSON 850 RICHARDS ST. , STE 600 HONOLULU, HI 96813 WINDWARD DAIRY C/0 NORMAN GREENWELL P. O. BOX 248 KEALAKEKUA, HI 96750 XEROX CORPORATION P.O. BOX 7405 PASADENA, CA 91109-7405 ERIC S YAMAGATA, ESQ 119 MERCHANT ST, STE 630 HONOLULU, HI 96813-4433 GARY YAMAGATA, IND & OBO YAMAGATA DEVELOPMENT CO 3211 MELEMELE PL HONOLULU, HI 96822 THOMAS & VERA YOKOI 17212 BRIGHTON WAY GARDENA, CA 90247 Z. G SHUMAN & JP MORGAN TR CO, TEES P MITCHELL TR & OBO BIG ISL. 3 LLC 1585 KAPIOLANI BLVD. , STE. 1110 Page 19 a ;•. u ' si§.g 1� .,.i Coo, - i,1%, id 413 ,S1'3,-3 3,-3 T)S':, .pia, 1 Re, 1 ,,'06113 r);-.4 e i. t :3. 1250_Oceanside_Matrix.txt HONOLULU, HI 96814 STEVEN D. & DEBORAH A. ZAVODNICK 16771 KENNEDY ROAD LOS GATOS, CA 95032 KEALA ZOLL P. 0. BOX 468 PAPAIKOU, HI 96781 Page 20 U,S, Ban4uptcy Court - Fiawaii #13-003!33 Ckt # 1 Filed 03106/13 Page 30 of 32 GELBER, GELBER& INGERSOLL A Law Corporation DON JEFFREY GELBER 628-0 JONATHAN B. GELBER 7113-0 JOSEPH A. DANE 9170-0 Suite 1400, Fort Street Tower 745 Fort Street Honolulu,Hawaii 96813 Telephone: (808) 524-0155 Facsimile: (808) 531-6963 E-Mail: D.J.Gelber®gelberlawyers.com Jgelber @gelberlawyers.com Jdane @gelberlawyers.com Proposed Counsel for Debtor and Debtor-in-Possession UNITED STATES BANKRUPTCY COURT DISTRICT OF HAWAII In re Case No. (Chapter 11) 1250 OCEANSIDE PARTNERS, a Hawaii limited partnership, Judge: Honorable Robert J. Faris Debtor and Debtor-in-Possession. 2012973.wpd DESIGNATION OF INDIVIDUAL RESPONSIBLE FOR PERFORMING DUTIES OF DEBTOR-IN-POSSESSION (i S t k a try C,; } t' 0035: I3"�. 11 FIi;; C3/00,13 Ii t 3 0 ,�,ir � �� .� �,» �,��i ��:.�':Asa, -- � n .t 1250 OCEANSIDE PARTNERS,a Hawaii limited partnership,debtor and debtor-in-possession (the "Debtor"), hereby designates, pursuant to L.B.R. 4002-1,CRAIG PICKETT as the individual responsible for performing the duties and responsibilities of the Debtor. Mr.Pickett is the President/General Manager and Chief Financial Officer of the Debtor. The address of Mr. Pickett is 1380 Lead Hill Boulevard, Suite 106, Roseville,California 95661,and his telephone number at his place of employment is(916)677-4227. DATED: Honolulu,Hawaii, G�' , 2013. C____ 2- U,k(L DON JEFFREY GELBER JONATHAN B. GELBER JOSEPH A.DANE Proposed Counsel for Debtor and Debtor-in-Possession TIC UNDERSIGNED CONSENTS TO THE FOREGOIN SIGN• 2N. i CRAIG PICKET(/'-) ! DESIGNATION OF INDIVIDUAL RESPONSIBLE FOR PERFORMING DUTIES OF DEBTOR-IN- POSSESSION;In re 1250 Oceanside Partners,Case No. ,United States Bankruptcy Court for the District of Hawaii 2012973.wpd -2- VALERIE T.POINDEXTER J�SYIOF q KAREN EOFF Chairperson-- ���%�, BRENDA FORD DRU KANUHA GREGGOR ILAGAN ZENDO KERN Vice Chair , �t ,,„`� DENNIS"FRESH”ONISHI of"� MARGARET WILLE J YOSHIMOTO HAWAI`I COUNTY COUNCIL County of Hawai`i Hawaii County Building 25 Aupuni Street Hilo, Hawai`i 96720 March 14, 2013 J Yoshimoto, Council Chair Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 RE: Communication No., 209 : Discussion of 1250 Oceanside Partners, a Hawai`i Limited Company, Debtor and Debtor-In-Possession(Case No. 13-00353), Front Nine, LLC, a Delaware Limited Liability Company, Debtor and Debtor-In-Possession(Case No. 13- 00354), and Pacific Star Company, LLC Dba Pacific Star Properties, an Arizona Limited Liability Company, Debtor and Debtor-In-Possession(Case No. 13-00355), [Also Known as Hokuli`a] In the United States Bankruptcy Court, District of Hawai`i, Honolulu, Hawai`i Regarding Their Filing for Relief Under Chapter 11 of the Bankruptcy Code on March 6, 2013. Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawai`i, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter be placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sinc , 4,4,(1.. cf. Valerie T. Poindexter, Chair Committee on Finance Approved/Date/Waive to Council: Disapproved/Date/Refer to FC: ampor MAR 1 O Z013 J Yos imoto, ouncil Chair J Yoshimoto, Chairperson Hawai`i County Council Hawai`i County Council VP/sc Hawai`i County is an Equal Opportunity Provider and Employer