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Michael Yee October 18, 2017 Page 2 Rico, Mexico and Brazil, with more than 65,000 employees. AutoZone also offers value-added services and technical advice and solutions, including electronic automotive diagnostic services to the general public, and provides delivery of automotive replacement parts and accessories to professional technicians. AutoZone recently entered the Hawaii market with the opening of its retail operations on Oahu (Fort Weaver Road and Salt Lake Boulevard) and on the Big Island (Henry Street in Kailua-Kona), with projected openings soon in Waipahu on Oahu and Lihue on Kauai. Effective September 2, 2015, the fee owner of the Property, H. Shiroma, Inc.4, a Hawaii corporation, as Lessor and the Applicant, as Lessee, entered into an unrecorded Ground Lease for the Property for a period of 15 years. B. Project History. 1. Prior Development. Prior developer, Ginger Patch DP, LLC proposed to develop two pads of commercial real estate or business center ranging in size from 9,600 to 10,132 square feet with 130 parking stalls. Final Plan Approval (PLA-08-000365) was issued by the Planning Department on August 1, 2008 to allow for the establishment of the Ginger Patch Cormnercial Center, including 127 parking stalls on approximately 80,000 square feet of the total 83,317 square feet Property. These plans have been abandoned. 2. Applicant's Proposed Development(Exhibit 2). The Applicant is proposing to develop a much smaller Project. The AutoZone commercial storefront will consist of approximately 9,046 square feet, with landscaping and a minimum of 57 paved parking stalls, calculated at 1 stall/ 160 square feet of commercial uses, including areas for accessible parking and loading area. The store will operate from 7:30 ain to 10:00 pm, Sunday to Saturday, and will employ approximately 20 individuals. Port deliveries of 4 to 6 pallets from Hilo Harbor and/or Kawaihae Harbor will occur once a week, which will be transported to the proposed Project via small box trucks. Nissan Frontier vehicles will be utilized by AutoZone in its daily 6 to 8 round trip commercial deliveries to local repairs shops. a. Annual Report. The Applicant's compliance with the conditions of approval under Ord. 07-105 is summarized in the 2017 annual report (Exhibit 3). b. Community Information Meeting. A community informational meeting was held at the proposed Project site on August 3, 2016, in which the Applicant shared its proposed development of the AutoZone store and proposed amendments to conditions of approval under Ord. 07-105 (Exhibit 4). 4 Attached is a copy of the Lessor's Letter of Authorization(Exhibit lb). 5 The effective date of the Ground Lease is the first day of the month following the earlier of: (1)the date that Applicant opens the store for business with the public or(2) 180 days after the Approval Period. The Ground Lease allows for six separate options to extend the term of the lease for five years each.