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but then we ended up acquiring the parcel. But that was never really an option back in 2009,
<br /> between 2009 and 2018, because there was no control over that land, that parcel,just FYI.
<br /> ARAI: And, Mr. Chairman, yeah, I can also note that in the abundance of caution, the possibility
<br /> of Hawaii Two2 being pursued was included in the traffic impact analysis report, and so that
<br /> was like, sort of like the best case scenario, and even with that, the additionalI think it was
<br /> possibility of 50 additional units—even with that, the intersections had the sufficient capacity for
<br /> both projects. But be, again, be aware that it was just something included in the analysis as a as
<br /> a worst-case scenario.
<br /> VITOUSEK: All right, I mean, and that's sort of what I'm referring to in terms of cumulative
<br /> impact is that if you are building a development road, the purpose for building that is to develop
<br /> the areas that are adjacent to that road, right?
<br /> ARAI: I mean that would be optimal, sure, if you are building an expensive road.
<br /> VITOUSEK: That's why you are, that's why you are building the road. Yep, go ahead,
<br /> Christian.
<br /> KAY: I would say that if in the event that the Hawaii Two2 property were to come in and try
<br /> and actualize a development of that property, they would have to go through, well, State Land
<br /> Use boundary amendment and rezoning, as well as an SMA Major Use Permit process, at that
<br /> point. Going through the Minor Permit process was an option available to them, given the scope
<br /> of the roadway project as a standalone connector road.
<br /> VITOUSEK: Okay. And, oh, last question I guess would be for the developers. I'm just
<br /> curious; what was the source of financing, and why was it lost, for the project?
<br /> M. MANSL It was a construction loan and from a bank in California.
<br /> VITOUSEK: And why was it lost?
<br /> M. MANSL Well, we ran out of time. We were up against our time extension, or we were up
<br /> against our permit expiring, or entitlements expiring.
<br /> VITOUSEK: Okay, so they had the same conditions for completion that we did, but they just
<br /> walked away when their conditions weren't met.
<br /> M. MANSL Yeah, we had a number of lenders walk away. Each time we met with a different
<br /> one and went down the road, and it took months, so we eventually ran out of time.
<br /> VITOUSEK: Okay, and this time around, what would be different?
<br /> M. MANSL Well, I'm hopeful that with market conditions the way they are and housing, the
<br /> demand for housing, that there will be a stronger appetite with lenders. And I've seen that so far
<br /> in the couple that I've talked to and then I have term sheets from.
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<br /> EXHIBIT D
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