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we obtained permission from Surety Kohala to use School Road – or, it has a different name, I’m <br />sorry, it was mentioned earlier – to Pratt Road for deliveries. Maluhia Road is now used for all <br />access, including access to parts of our property which are not governed by the SMA and Special <br />Use Permits, in other words, to the property that we are presently farming. We have no intention <br />of using Union Mill Road or Kamehameha Park Road to access the Retreat. <br />Unfortunately, on February 6, 2008, an HPM truck did make a delivery to the Retreat <br />construction site using Union Mill Road. This was a mistake arising out of a miscommunication. <br />We had faxed a map to HPM on February 3, 2008, designating Maluhia Road as the correct <br />access road. We also called Jeffrey Yamamoto who was our usual driver for HPM deliveries to <br />the Retreat, and reminded him that Maluhia Road was the correct access road. Somehow both <br />communications failed to reach the substitute driver, who was filling in for Mr. Yamamoto on <br />th <br />February 6. I’m not sure how this communication error happened. HPM indicated that they <br />thrd <br />didn’t receive the correct map until February 20 rather than February 3. This is especially <br />confusing in light of the fact that HPM had made deliveries using Maluhia Road in both <br />September and October of 2007. While I was alarmed by this discrepancy, I must reiterate that <br />we had no intention of using Union Mill Road as an access for the Retreat after 2005, after we <br />realized that that was being requested of us. Furthermore, HPM has sent to the Planning <br />Department a letter saying that they are now in possession of the correct map, which indicates <br />the proper access for the Retreat is through Maluhia Road. They also promised me that they <br />pulled out all the maps from 2005, so that there can never be a mistake on their part again. All <br />future supply deliveries will be routed through Maluhia Road. I will be faxing them a map with <br />instructions to use only Maluhia Road. And I will also call to confirm that they got it. A copy of <br />each faxed map will be faxed to the County Planning office, so that they are aware of this as <br />well. We do not intend to use Union Mill Road, and will do our best to insure that no future <br />mistakes are made. We are sorry for this concern this mistake must have caused. <br />Second, Department of Transportation certificate of Maluhia Road. Condition 6 of our Special <br />Use Permit indicates that Maluhia Road must meet Department of Transportation certification as <br />part of the Special Use Permit conditions. That, again, must be met prior to us receiving our <br />certificate of occupancy. Because Maluhia Road was built during the plantation days, the <br />Department of Transportation does not have the specifications to which the road was <br />constructed. Due to this they have requested that we tear up the Highway easement and we <br />rework it to commercial standards. The overall improvement to the road will be relatively <br />insignificant, but the cost will be very high. Because of that, we asked the Department of <br />Transportation to reconsider this request. This was a major reason for our delay in compliance <br />with Condition No. 6 of our Special Use Permit. Now, when I wrote this, we had not received <br />the copy of that letter; we just received their letter of reply this morning. So we intend to comply <br />fully with all conditions and will act without delay. We have completed the required surveys, as <br />you can see in your file, and we have hired an engineer, Peter Dahlberg, to do the plans. He met <br />th <br />with the Hilo office of the Department of Transportation on Wednesday, April 16. And he will <br />be submitting plans conforming to the Department of Transportation specifications, and any <br />necessary work will begin as soon as these plans are approved. Again we apologize for this <br />delay. <br />EXHIBIT B <br />7 <br /> <br />