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owns a property identified with the blue dot, which is the area of the application of Kalani Kai. And then just east of this location is also the establishment of Kalani Honua; and that’s on the property just to the east. The Planning Director is requesting that the Planning Commission make a determination as to whether the financing and marketing plan to investors for retreat homes is consistent with Special Permit 1186. Special Permit 1186 and Special Management Area Use Permit 427 were approved by the Planning Commission on November 15, 2002. This was to allow the establishment of a 13-unit Kalani Kai arts, agricultural and wellness education retreat and related facilities on approximately 14.94 acres. Looking at the site plan that we have within our files, this is the actual plot plan of the property identifying the Kalani Kai project. Just next to it on the east side is the Kalani Honua Project. Identified in a purple area is the 14.94 acres which includes the 13 proposed hale units. The applicant had submitted a request to be able to change the hale or retreat hale original configuration, which was a two-story configuration with the first story having four rooms. Two of these rooms would be for guests, one room would be a faculty member and another room would be for a staff. The applicant requested to be able to change that configuration to what’s called a retreat cluster where there would be a main hale area one to three stories in height with four detached rooms, each having a bathroom with no kitchen. This is more clearly defined under Exhibit 3 in our background; and there’s a page that is identified as Kalani Kai Retreat Lodge Plans; and it shows the difference between the two requested designs. The Planning Director agreed to the concept and felt that it did not differ too greatly from the original approved request, being that the amount of rooms would remain the same as well as no kitchen facilities. The Planning Director is concerned that the current marketing and sale plan for Kalani Kai where individual investors construct the units separately and have individual rights to the units is very different from the project concept presented to the Planning Commission. If I could ask the Director to further expound. GRAHAM: Thank you, Jeff. Mr. Yuen? YUEN: Yeah, just to follow-up on what Jeff was saying and to give a little further background, quite some time ago essentially the same group started Kalani Honua. Kalani Honua, which also has a special permit, was perhaps the first retreat type of overnight lodging in the State Land Use Agricultural District. And over the years it has a program that we’re basically familiar with where you have transient vacation accommodations for people mostly attending some kind of educational or cultural or arts program, although that’s not specifically required by the terms of the permit, nor by Kalani Kai’s permit. So then we had a Special Permit application for Kalani Kai, adjacent property, originally for 20 buildings which were in a three-visitor room, one staff room, faculty room format. We, the Planning Department has a limit on lodges in the State Land Use Ag District by special permit to 40 units. That’s consistent with the definition of lodge in the Zoning Code, which creates a limit EXHIBIT C 2