|
VITOUSEK: So there are no outside factors that prevent them from building because of the high
<br /> amount of building in the area, so the decision not to build is because of lack of financial
<br /> resources on the part of the developer?
<br /> FUKE: I would say, to some extent, I think that could have affected it, you know, I don't think
<br /> that was a sole decision. But it's just like saying that, you know, say, you've got like $500,000
<br /> to build a home, and then after you have your design and then oops—even like trying to build
<br /> today, you know, because of the cons-you know, the material cost is like exuberantly high, you
<br /> know, what's your original budget and your actual ability to build is, you know, becomes two
<br /> separate matters. And so I think that was the dilemma that the applicant faced, you know, at that
<br /> time.
<br /> VITOUSEK: I'm just, you know, I'm just reflecting what's stated in our background about the
<br /> reasons that are outside their control. So the next reason that's stated is the volcanic eruption in
<br /> 2018. Do you know the date that the time extension for Plan Approval was granted by the
<br /> county?
<br /> FUKE: Yeah, the Plan Approval was granted like shortly after they were actually granted in
<br /> July of 2015 and September of 2015. Now the SMA was granted, you know, became effective in
<br /> March of 2015. And the fact that, they, you know, within a span of six months, they pulled the
<br /> trigger to do all of that, you know, it was indicative of their desire to get something on the
<br /> ground as soon as possible.
<br /> VITOUSEK: Got you, thanks. And I stated my question wrong; I'm asking when, if they are
<br /> aware of when the administrative time extension for the SMA in order for them to attain Plan
<br /> Approval was granted in 2018.
<br /> FUKE: Yeah, it was granted in 2018, and I believe like when the former project manager
<br /> requested for an extension, I think that the eruption had already occurred, and that kind of
<br /> dampened some of the overall market.
<br /> VITOUSEK: Okay, so the extension occurred on September 4, 2018, which is the same date that
<br /> the eruption stopped, September 4, 2018, so they received the extension after the Kilauea
<br /> eruption had ceased. So
<br /> FUKE: I think that was purely coincidental. I don't think that was by design, but nevertheless
<br /> VITOUSEK: (Indiscernible–simultaneous speech)
<br /> FUKE: leading up to that, you know, understandably, you know, the overall real estate market
<br /> for the Island of Hawaii was really, it sagged.
<br /> VITOUSEK: Do you know what the changes in the real estate market were between 2017 and
<br /> 2018?
<br /> FUKE: Specifically no,just on the generic level.
<br /> 15
<br /> EXHIBIT D
<br />
|