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I'd like to, you know,just give somewhat of the history and then directly kind of answer <br /> Commissioner Van Pernis's question. As I recall, the existing building that has been straddled <br /> by this property was there when the initial permit was secured. And if I recall correctly, it was a <br /> real estate office by C. J. Kimberly. Whether she is currently there or not, I'm not really sure. <br /> So all of the improvements that you see there like the foundational work there, it's kind like they <br /> have occurred subsequent to the, you know, the existence of the real estate office. Normally <br /> you know, Jessica had explained what, the final Plan Approval was granted, the one in 2017 <br /> and so, if you look at it from the fact that the property is already zoned Resort, it's within the GP <br /> Resort area, consistent with the Kona Community Development Plan, so on and so forth, that if <br /> you have a property along those lines, then very simply, you know, you need to have like Plan <br /> Approval. And Plan Approval is a process that is issued by the, you know, it's handled by the <br /> Planning Department. Their role, you know, on a Plan Approval, is essentially to decide whether <br /> the project use is consistent with the zoning, you have the required setback, you have the <br /> required parking, landscaping, so on and so forth. And once you secure your Plan Approval, <br /> then your next step is to go straight into your construction permit, and that will be your grading <br /> and your building, electrical, plumbing, so on and so forth. In this situation, you know, the <br /> reason why we are before you again is like, it's the Special Management Area permit <br /> requirement. And just to give the Commission a 30-second understand- sharing, rather, of the <br /> SMA law, it was passed in 1975 by the state, and basically it was designed to provide special <br /> control, you know, within area along or approximate to the shoreline, and the law delegated the <br /> enforcement responsibility to the counties. So, you know, under Rule 9, the Commission's Rule <br /> 9, you know, you have a way that the boundaries are established, and you have the permitting <br /> process. And so, in situations like this, your rules call for having the planning commission make <br /> the decision on a Major SMA permit. Essentially, however, the SMA permit, the rules and <br /> regulations relating to SMA permit basically want to make sure that, you know, you don't, the <br /> project does not degradate the coastal area, it properly addresses historical, archaeological issues, <br /> it's got to make sure that it's consistent with the General Plan and the zoning code, there is an <br /> appreciation for the protection of native Hawaiian rights. So these are your, all of your, the <br /> guidelines and the criteria, from which then a decision is made either by the planning director for <br /> a Minor SMA permit or by the planning commission for a Major SMA permit. <br /> I'd like to kind of like segue just a bit and share with the Planning Commission a very significant <br /> judicial decision that was rendered by the Intermediate Court of Appeals back in 1993. The <br /> planning, it was called—and I'm sure that Commissioner Van Pernis being an attorney is well <br /> aware of that decision back in 1993 the county planning commission had denied an SMA <br /> permit for a two-story office building, proposed office building on the corner of Kuakini <br /> Highway and the Seaview Circle, and that property was already zoned Commercial, they came in <br /> for an SMA permit, then the commission, because of traffic-related kinds of concerns raised by <br /> surrounding property owners, they, the commission in their wisdom denied the permit. So the <br /> person, the applicant, Larry Topliss—not topless, I mean, L-I-S-Sso he had appealed, then <br /> finally went all the way to the Intermediate Court of Appeals. And essentially what the court <br /> said was that—and I'll just kind of read it to you—it just says that traffic from a development <br /> within the SMA is not shown to have a substantial effect on the coastal environment, then it <br /> cannot be used as a basis to deny the SMA permit. And so as a result, if you look at it, you <br /> know, from that standpoint, and you look at your laws for like zone change time extension, like <br /> the one, you know, we just went through on the Pua`a/Suffolk, there was already a requirement <br /> 7 <br /> EXHIBIT E <br />