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• • June 1, 2018 Page 10 anticipates completing the remaining 25 residential units within Lot 4-B within 2 to 3 years, KD • anticipates that under current market demand, they will,take another 20 years to develop the balance of Lot 4-A. V. CONDITION B OF PDO 99-42 (THE 20-YEAR DEVELOPMENT PERIOD). After consultation with the Planning Department on this issue, the Parties desire guidance from the Leeward Planning Commission and the County Council that the Parties need not seek a formal time extension to the 20-year development period for the Kaupulehu Project District, which time period will occur on April 10, 2019. Condition B of PDO 99-42 provides that: "This project area shall be called the Kaupulehu Project District. The development periodfar the Kaupulehu Project District will be 20 years from the effective date of approval of the Project District Ordinance." • The genesis of the subject condition specifically arises from a single representation made by KD's processor-in-interest, Kaupulehu Development within the Project District Application dated June 22, 1998 ("PD Application"). Section 2.6 of the PD Application states: "The Kaupulehu Resort expansion project will be a master planned and implemented by a developer team, including the Applicant. Substantial infrastructure improvements erre expected to be provided during the initicrl,fve years once the required governmental approvals have been secured. Initial sales are also expected during this period. Full buildouts of the project is expected over 20 years...The project construction costs is expected to exceed$100-million in 1994 dollarsi" [Emphasis added] A review of the Planning Cornmission and County Council minutes from the public hearings on PDO 99-42, discloses that the subject 20-year development period found in Condition B of PDO 99-42 was likely based on the representation found in Section 2.6 of the PD Application. There is no other evidence or rationale for imposition of the 20-year development period upon the Kaupulehu Project District. The inclusion of the 20-year development period was likely only intended to allow the Planning Department, the Leeward Planning Commission (fka Planning Commission) and County Council, an opportunity to review the overall progress of the development of the - Property after 20 years, as Condition BB of PDO 99-42'I specifically states: "Twenty (20)years from the effective date of the'iKaupulehu Project District Ordinance, the applicant shall submit an overall status report of the project, including the percentage of completed development. The Planning Director shall also provide an assessment of the development of the Project District and its compliance with conditions of approval for transmittal to the Planning Commission for their review and recommendation and then forwarded to the County Council for their review and action." It is clear that if the Planning Department, the Planning Commission and County Council, genuinely intended that the Parties apply for a formal time extension of the 20-year development 4821-7934-8826.6.060391-00002