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landholdings on Hawaii Island. The Department has been working with the private sector lessees and permittees to move Banyan Drive buildings on State land into redevelopment in phases. Key state parcels in which the Department is engaged in redevelopment of Banyan Drive include: 1) Hilo Hawaiian Hotel: ground lease from the Department; renovated. 2) Hilo Bay Cafe (former Nihon restaurant site): ground lease from the Department; renovated. 3) Grand Naniloa Hotel: ground lease from the Department; $20 million in renovations completed in 2018. 4) Golf Course: part of Grand Naniloa ground lease from the Department; requires participation of lessee for redevelopment. 5) Uncle Billy's: closed in 2017 by the Board; under Revocable Permit(RP) to Tower Development, Inc. (TDI), who is an affiliate of the lessee of the Grand Naniloa; On March 7, 2018, the Department posted a request for interest(RFI) on its website as well as on the website of the State Procurement Office regarding the potential demolition of existing structures and reconstruction of a hotel on the former Hilo Bay Hotel site. Notice of the RFI was additionally published in several newspapers in the State on March 14, 2018 with a response deadline of April 30, 2018. One response (from TDI) was received with a proposal to substantially demolish and reconstruct a branded hotel on the site consisting of approximately 125 guest rooms, fitness room, appropriate back of house spaces and food and beverage venue. TDI additionally proposed to contribute $1.5 million toward demolition costs (projected by the Department's consultants to exceed$8 million in total). At its meeting of December 13, 2019, the Board authorized the publication of a Request for Qualifications (RFQ) /Request for Proposals (RFP) for the demolition, renovation, or partial demolition and partial renovation of the hotel under a new long-term lease. The Department is in the process of finalizing the RFQ/RFP documents for publication. 6) Country Club: under RP. At its meeting of December 13, 2019, the Board authorized the publication of an RFQ / RFP for renovation of the hotel under a new long-term lease. The Department is in the process of finalizing the RFQ/RFP documents for publication. 7) Reed's Bay Resort Hotel: under RP; has some remaining useful life. Since 2014, the Department has spent approximately $524,500 from the Special Land and Development Fund (SLDF) on consultant services and studies dedicated to the public lands at Banyan Drive. • One consultant prepared a market study on tourism to determine if the area could support a new hotel, as well as studies on sea level rise, the viability of master leasing multiple parcels in the area, and the remaining useful life of existing structures on expiring lease premises. • Another consultant conducted a much more detailed architectural and engineering study on whether existing improvements on the expired lease premises should be demolished or rehabilitated. 3