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June 1, 2018 Page 9 that are acquainted with the sensitive nature of the Kalaemano Cultural Preserve, upon completion of the archaeological preservation and interpretive work in the shoreline area and upon completion of the public access items required byii the Planning Department, KD will open the Interpretive Center to the public. KD will inform the Planning Department in writing when this occurs. Article XI, Section 7, of the Hawaii State Constitution provides that the State has an obligation to protect, control, and regulate the use of Hawaii's water resources for the benefit of its people. Article XI, Section 1, of the Hawaii State Constitution states that all public natural resources are held in trust by the State for the benefit of,the people. A County agency's duty and authority is to maintain the purity and flow of our waters for future generations and to assure that the waters of our land are put to reasonable and beneficial public benefit. The remaining development will not significantly use, nor generate significant adverse impacts to the existing groundwater resources, and thus is consistent with the public trust in the use of water resources. Kaupulehu draws potable water from 2 existing wells that service Property and non-potable water is provided by an on-sie well. The potable and non-potable wells have been in operation for many years in compliance with the applicable State Commission on Water Resource Management ("CWRM") and DOII requirements. The appropriate potable water units were set aside and reserved for the Kaupulehu and Hualalai since the wells were developed, so the required water needed to develop the(Property is well within the sustainable capacity of the existing well system, and thus use of this potable water will be for a reasonable and beneficial public benefit. All potable1water for Kaupulehu and Hualalai is supplied by the Kaupulehu Water Company, which is a PUC regulated utility company. •The current and future use of potable water for the for these projects are also in compliance with all CWRM requirements to ensure the continued sustainability of the Kiholo aquifer. The remaining development within Lot 4-B at Hualalai Resort will be limited to 2 bulky. lots, namely TMK: (3) 7-2-030:006 and 0099. HILLC anticipates the development of approximately 25 more residential units within these 2 bulk lots, which would bring the total number of residential units in Lot 4-B to 121 units. KD intends to develop an additional 425 residential units within Lot 4-A at Kaupulehu. When fully developed, KD anticipates completing a total of 606 residential units within Lot 4-A. As of the date of this report, when taken together, the Parties anticipate a combined development of approximately 707 residential units at Lot 4-A and Lot 4-B (the "Project"), which is well below the 1,030 total residential units currently allowed under PDO 99-42. Since the approval of PDO 99-42 in 1999, KD and HILLC have developeda substantial portion of the land area and allowable residential units allowed by PDO 99-42 . While HILLC f , Hualalai Resort Parcel 19 Subdivision(SUB-14-001449). The Planning Department issued Tentative Subdivision Approval for SUB-14-001449 on May 1, 2015. This phase of development consists of 12 single-family residential lots. On May 13,2016,the Planning Department approved a time extension until May 1,2020 to allow additional time to obtain Final Subdivision Approval. 4821-7934-8826.6.060391-00002 •