PD BACKGROUND REPORT (PL-PDI-2022-000004)

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February 13, 2020 Page 2 The following discussion will provide the necessary background, justification, and basis for the subject request. I. Historical Background on Property. The Property was originally entitled in the mid- 1990s by Japan -based Kealakekua Development Corporation ("KDC") to allow for development of a master planned agricultural community. The proposed development at the time consisted of approximately 500 agricultural lots, an 18-hole golf course and clubhouse, a 4-acre private recreational center, a 200-acre agricultural park, a 255-acre equestrian center, a wastewater treatment plant, a County dedicable water system, and a 8,455-acre forest reserve. The Property was originally entitled under the following permits: Use Permit 121, issued on March 1, 1994, allowed the development of an 18-hole golf course, clubhouse, and related improvements; 2. Special Permit 898, issued on April 17, 1995, allowed the development of a private recreational center on 4 acres of land in the vicinity of the golf clubhouse; Ordinance No. 95-70, adopted on May 23, 1995, was further amended by Ord. No. 98-63, adopted on July 2, 1998, which rezoned TMK: (3) 8-2-001:001 and 012, from A-20a to A -la, A-3a, A-200a, A-225a, and A-8000a respectively, to align with the KDC master plan for the area. In the late 1990's, KDC was forced to forgo its development plans and sell the Property due to the collapse of the Japanese asset price bubble in the early 1990s and the resulting deterioration of the Japanese economy, which directly affected the ability of KDC's parent company to finance the project. In 2002, Koa Road LLC acquired the Property, and the Property was eventually sold to Kealakekua Heritage Ranch ("KHR") in 2004. The Property has since been subdivided twice, resulting in the rearrangement of existing parcels through consolidation-resubdivision actions starting with a 3-lot subdivision (Lots 17-A, 1-A-1, and 1-A-2) approved by that Planning Department on April 10, 2014 under Final Subdivision Approval No. SUB- 13-001285, followed by another 3-lot subdivision (Lots 1-A-1- A, 1-A-1-B, and 1-A-1-C) approved on April 26, 2017 under Final Subdivision Approval No. SUB-16-001672. The primary purpose of SUB-13-001285 was to create a standalone parcel that consisted primarily of a conservation easement (Lot 1-A-2), which we discuss in the following section below. Similarly, SUB-16-001672 was also processed to create a 224.99-acre parcel (Lot 1-A-1-B) for the purpose of establishing a conservation easement. See attached "Exhibit A" - Tax Map with conservation easement overlay. II. Conservation Easements. The 2011 Conservation Easement (9,017.97 acres) 4838-4873-1016.6.065938-00001