2007-04-05 THICDC - Laserfiche WebLink

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DOMINGO: I have questions, Mr. Chairman. Mr. Nishimura, up till now there has, I think, not been any agricultural subdivision except for those parcels which where they’re leased or bought through the former C. Brewer Companies. Is that right? NISHIMURA: The area involved in this particular application has gone through a subdivision to create 20-acre lots. DOMINGO: Okay, so those people who are farming now on existing lands, are they leasing it or have they bought into the parcels, so they bought the lands? GRAHAM: Sir, if you want to speak, would you give your name and address first. INOUYE: I’m Gordon Inouye, Chief Executive Officer of Hawaiian Rainbows Business Development, LLC, PO Box 595, Papaikou, Hawaii. I’ll address myself to answer that question, Mr. Domingo. There’s a combination of both. We have owners that have undertaken agricultural activities on their own, there are those that have leased part of the land out to other farmers and there are others that have leased it into some intensive agriculture like sweet potato. So we have a combination of all three. There are several lots that are not being farmed as yet; and we are working with the owners to encourage them to put it back into good agricultural uses. DOMINGO: In actuality then those who are farming or as you indicated were leasing it, and those who have originally bought them from the sugar company? INOUYE: The history on this property is that the land was originally acquired by Continental Pacific from C. Brewer, and Hawaiian Rainbows Business Development LLC in 2003 entered into a lease purchase agreement with Continental Pacific and acquired 550 acres of agricultural land that this is part of. And so we’ve been involved in the development of putting the land back into good agricultural use again since then, sir. DOMINGO: What’s your anticipated selling price per acre or per parcel? INOUYE: You know, that’s a tough question because I think we all have seen a lot of volatility in the marketplace. A year ago in the Ag-10 marketplace I would have guessed somewhere $40,000 to $50,000 per acre, today maybe $30,000 to $40,000 per acre. Again, it all depends upon where that, you know, where the marketplace is. Some of our Ag-20 lots sold for as much as in excess of $600,000. The most recent contract for the last lot that we have on the contract is at $450,000. So we’ve sold some Ag-20 lots for close to $30,000 an acre; and the most recent one is down to $22,500 an acre for the Ag-20 lots. DOMINGO: So it’s not whether or not you’re providing farming lots for those who live in the area who wants to farm but as you indicated where the marketplace will dictate? INOUYE: That’s correct, sir. You know, the marketplace will dictate where prices are. Some purchasers have been local residents, some have been nonresidents, obviously you know; and when we put something up for sale we don’t discriminate as to who the purchaser is, sir. EXHIBIT D 9