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WATANABE: Okay. And like you said, whether you build one house, or 50, or whatever <br />-? <br />LIM: That’s correct. <br />WATANABE: That’s -, okay. Thank you. Mr. Graham. <br />GRAHAM: Mr. Lim, just since Commissioner Watanabe brought it up, can you just be <br />clear to us specifically what has been done as far as the housing, the affordable housing <br />requirement? <br />Lim: The housing that was provided was in Kona in what I believe was called <br />the Kalawa View Estates Project. So the developer at that time in 1970, excuse me, in 1998 <br />purchased affordable housing credits from that project, purchased five of them; and that resulted <br />in the February 25, 1998 agreement between the developer of this project and the Office of <br />Housing and Community Development that the affordable housing requirements for the rezoning <br />were satisfied. <br />GRAHAM: And do you have a purchase price on what those five were or anything? <br />LIM: No, I don’t have that information. That was not paid by my client. That <br />was paid by the prior developer but it was built into the sale price for my client. <br />GRAHAM: Thank you. <br />WATANABE: In all fairness to the Director, I think we should offer you an opportunity <br />to rebut before, you know -. You should be able to state your case, yeah? <br />YUEN: Certainly. Well, on the merits of why we’re doing this, that’s the purpose <br />of the supplemental along with the original background and recommendation; and it’s to create a <br />project with a lower density of development to be able to keep more of an open space view along <br />the shore and also for environmental factors as talked about earlier. <br />Just one minute on procedure because I think that’s, I don’t want to spend a heck of a lot of time <br />on it. What I would think is the correct procedure is for the Commission to take a vote on the <br />proposed, Director’s proposed rezoning, and to take a vote on the time extension, very simple. <br />Question of consolidation, the purpose of, as I believe, the purpose of the consolidation was to <br />avoid having to say that this testimony is for the rezoning and this other testimony is for the <br />SMA Permit. It was never possible to actually consolidate these matters in the sense that the <br />decision would be made at the same time. The decision on the rezoning is made by the County <br />Council. The decision on the SMA Permit is made by the Planning Commission. The Planning <br />Commission’s decision on the SMA Permit cannot take effect unless and until the County <br />Council makes a decision on the zoning. So even if the Planning Commission, for example, <br />were inclined to extend the time to allow, on the SMA Permit, to allow the 50 units to be <br />EXHIBIT C <br />10 <br /> <br />