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extreme sitework that's required for the property,you know, they had hired like Hiram Rivera to
<br /> take a look at the ground conditions and, you know, based upon that, kind of like going back and
<br /> forth, and they said if you are going to do this particular project based on this particular design,
<br /> then your sitework requirement is going to be, you know, inordinately high. And so they had to
<br /> kind of go back, you know, to the table and try to come up with some alternative design or let
<br /> alone looking at the construction material. So that was, you know, really resulted in some of the
<br /> delay. At that point in time, I mean, in 2015 and, you know, Pacifica was really like ready to
<br /> start with the project, you know, gangbusters, so they had funds and everything else. Then, you
<br /> know, this cost construction came up, and shortly thereafter the eruption and
<br /> VITOUSEK: I'll get to that, Mr. Fuke, I'll get to that for sure. But basically, what I'm saying
<br /> on this one is that, you know, the decision to not build is a result of the high cost of the design
<br /> that was made by the applicant. Is there any outside factors that force the applicant to design a
<br /> structure that they couldn't afford?
<br /> FUKE: You mean like following the same footprint that, for which Plan Approval was secured?
<br /> VITOUSEK: That they designed, right.
<br /> FUKE: Yeah, so they ran into like more detail cost analysis after the Plan Approval with the
<br /> design, because prior to going into, you know, like hard drawings, construction plans, and that
<br /> was when they kind of like decided to call on hold.
<br /> VITOUSEK: Okay, got you. So in my—okay, thank you. Next up, they stated in there that, in
<br /> the, so in their 2018 request for an administrative extension, they stated that the market for
<br /> housing is robust, but the frenzied labor market drives up prices. Is the frenzied labor market the
<br /> result of high amounts of construction elsewhere in Kona?
<br /> FUKE: I really don't know. I think that that, that was a comment written in, the request for an
<br /> extension was written by the former project manager; I didn't generate that letter, so I can't
<br /> really speak to what he was referring to there.
<br /> VITOUSEK: Okay. So it seemed to me as though the labor market being frenzy because of
<br /> high amount of construction would be indication that it's, there is a lot of construction happening
<br /> in the area, and that there are no outside factors that will prevent the applicant from pursuing
<br /> construction since there is so much construction happening. Do you agree with that?
<br /> FUKE: That is true, I mean like, you know, if you have a lot of construction activity, it will
<br /> demonstrate that there is a lot of interest in a project of this nature. But I guess any, any
<br /> homeowner or developer would have to kind of balance up the availability of funds with what
<br /> you are going to be building. And so in this case, sure, I guess the conclusion was just that
<br /> they'd like to build, but maybe, and maybe that time was a right time, but not at that kind of cost
<br /> that, to construct the buildings is going to be.
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<br /> EXHIBIT D
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