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CARR SMITH: Okay, thank you so much. I was asked to mention Shannon Rudolph failed to
<br /> mention that she's been a resident of Kona for over 40 years, so she wanted to make sure that you
<br /> folks were aware of that, so that's on the record now. All right, Commissioners thank you all for
<br /> your testimonyCommissioners, do you have any questions for the testifiers? Mr. Van Pernis.
<br /> VAN PERNIS: Thank you. I have the same question I had for staff, of Mr. Wong Yuen and
<br /> Mr. Bisgard. Doesn't this limit accessory uses on public land? And if so, what is the arrangement
<br /> for private use of public lands?
<br /> WONG YUEN: So—Mr. Van Pernis, thank you—the arrangement, if I got your question correctly,
<br /> it's arrangement for private use of public land, okay, so the disposition would be through a long-term
<br /> lease. We would want that all interested parties, so it's not, it would be, would be able to present to
<br /> us a request for proposal, an RFP, that we would respond to and evaluate on a case-by-case basis.
<br /> That would be the vehicle by which the State would issue a lease and collect rents due us. I hope
<br /> that answers your question. If not, I can listen in and provide more information as I can.
<br /> CARR SMITH: Mr. Van Pernis, does that answer your question?
<br /> VAN PERNIS: Not totally. Is compensation paid to the State or some entity,public entity, for the
<br /> private use of public land?
<br /> WONG YUEN: Yes, the compensation is through rent fee to the State.
<br /> CARR SMITH: Mark?
<br /> WONG YUEN: Okay, and there, now, initially, okay, here is another answer I can, maybe I'll ask
<br /> Craig to chime in on particulars there, but, also, in certain leases, there are certain minimum annual
<br /> guarantees, their targets that are contained in these leases. So you might have a
<br /> VAN PERNIS: Does that include compensation?
<br /> WONG YUEN: —group compensation, you said?
<br /> VAN PERNIS: The, is compensation included in the guarantees?
<br /> WONG YUEN: Okay, so, in, in addition—okay, let me, let me just say it this way, and then I'll try
<br /> to zero in on what you are asking me better, but, we get a flat land lease straightforward agreed-upon
<br /> rate for the lease of the land. Then the business itself based on its income on an annualized basis, we
<br /> get, we can structure it so that we get a percentage of that. Then there are other, there could be other
<br /> fees or, or, that are applicable in the lease. And I'm not, you know, too familiar; maybe if Craig can
<br /> comment on that, I'll have him do that. But I don't know if that answered, you are saying, you
<br /> know, I'm not sure if I answered your question.
<br /> VAN PERNIS: Paid to the State as part of private use of public land at the airport. Money paid.
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<br /> EXHIBIT B
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