2007-01-19 twaikoloadevco - Laserfiche WebLink

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A brief statement: Since the County of Hawaii Planning Commission granted the last time th extension until April 5 of this year to complete construction of the golf course, we have experienced the resurgence in the resort real estate market in Hawaii. Nevertheless, there are several reasons for Waikoloa Homesites Venture not yet being able to complete construction of this course. First, Waikoloa Homesites Venture believes there is still sufficient capacity in West Hawaii resort golf courses to support the current level of golf play. Second, completing the construction of this course requires a significant commitment of the financial resources of Elleair’s parent company. The parent company’s lenders are not yet in the position to fund the necessary funds that is going to take to complete this major project, and Elleair and Waikoloa Homesites Venture are thus forced to continue to defer completion of the golf course. I just want to note that Waikoloa Homesites Venture has made a substantial investment in this Waikoloa property over fifteen years ago. As the Planning Department’s staff recommendation states, Waikoloa Homesites Venture contributed a one and half million dollar installment of the community benefit assessment to the County of Hawaii upon receipt of Final Plan Approval for the golf course in 1993. We anticipate that the 6-year time extension will afford sufficient time to obtain the necessary funding to complete construction of the golf course. And we are prepared to accept the County’s recommended integrated golf course management conditions as a condition of the extension. With me in the audience are Mr. Masashi Yano and Ms. Kazuyo Sugiyama of Elleair, and we are prepared to answer any questions that the Commission may have. GRAHAM: Commissioners? Mr. Yuen, when I read this material, I first read your th letter of January 10, and it struck me as very forthright and I appreciated it. But then when I got back and was reading the background report, which has, you know, like the history of this from 1993 when the first time extension was requested, and then there was another one I think in 1997 and then another one in 2001. When I read what the reasons for the requests for the time extensions were, each time they sound almost word for word exactly what you are saying now: Market conditions don’t support it at this time, so we need a time extension, which we expect will be adequate for us, and then we also don’t have the financing available. So I kind of keep reading the same thing over and over, and it almost feels like a form letter. So I guess, you know, we generally as a Commission do approve time extensions, because if circumstances haven’t changed whatever decision was made to do it, we want to honor that. But it seems to me this has been going on for many years and we hear the same thing, and -, anyway. So, that sort of raised my ears a little bit, and I just wonder if you have any comment you like to make about that. W. YUEN: Mr. Chairman, I guess speaking from my experience of practicing law in this state and the recent experience dating back to the Japanese bubble of the late 1980s, Elleair is one of the few companies that I’ve been associated with and know that bought a property near the top of the bubble and is still here in Hawaii and doing business. And, I mean, I think all of you who’ve been in this Commission any length of time are familiar with the number of companies that bought land in the bubble or shortly after and are out of business, no longer with us. And, you know, I can say that it has not been easy for this company, a Japan company, to continue to survive here. But this company has survived in Hawaii for fifteen years, and continues to desire to make a follow-through on its commitments to build the golf course. It may EXHIBIT C 4