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BISGARD: Yes, are you asking, is the money paid to the State for the use of public land? I think
<br /> the answer is yes.
<br /> VAN PERNIS: Is money paid to the State on every occasion of private use of public land? Well, by
<br /> "every occasion" mean, whatever entity uses the public land pays money to the State?
<br /> MASON: I can say, I can say yes—if you don't mind, Craig
<br /> CARR SMITH: Mr. Mason.
<br /> MASON: Yes. If you don't mind
<br /> CARR SMITH: Okay.
<br /> MASON: I can say, the reason why is because I was one of the main guys that have been in stages.
<br /> I actually had offered. When we went to create the lease and stuff and the development of the direct
<br /> this process, there were other companies that are actually there, Signature Corporation—and this has
<br /> to do with Keahole FBO I LLC—and I was the only guy who offered eight million at first. And the
<br /> thing was that nobody was actually offering much of anything but a dollar, or actually revocable
<br /> permits was only paying like only a couple of hundred dollars a month. So the thing that came, what
<br /> came through with the Keahole FBO I in the process that actually got created, started through the
<br /> DLNR Ethics Board, everybody, and I was the one that's getting pretty much nailed by everybody,
<br /> but, including, you know, Legislation, Governor's Office, the Finance Department, I actually took
<br /> myself through in the competition of beginning stage in 2015. When we put our application in for
<br /> property, they are in the south end, there were, there were about twelve other applicants. We were
<br /> the only local guys who was there,pretty much me; everybody else was like literally only looking
<br /> for themselves in development and not the industry itself and the support of education and the local,
<br /> the local government. So the thing that came out, there's actually, the lease that is in that you can,
<br /> you know, people can get information to is technically at that time, I think, was Signature
<br /> Corporation and Air Service Hawaii was paying about I think 40, about 40,000 when started, you
<br /> know, for this 40,000 annual rate. We actually came in in the beginning annual rate, was about 500,
<br /> or 474,000, 39744. So, yes, money actually, it goes, the lease and the money goes to the State, and it
<br /> increases annually, and it goes all into the term and extent to the lease itself.
<br /> CARR SMITH: Okay, thank you, Mr. Mason. Anybody else have questions?
<br /> YATES: I do.
<br /> CARR SMITH: Faye, go ahead.
<br /> YATES: You mentioned something about the—Mr. Mason—taxes that are collected that would
<br /> help us. Now, I don't know who the "us" is. I'm just wondering about it. The airports comes under
<br /> the State, correct?
<br /> MASON: Yes.
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<br /> EXHIBIT B
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