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NISHIMURA:The Environmental Assessment and the requestfor comments were <br />directed specifically to the Kawaihae Canoe Club. We didnt identify any other specific group. <br />We did receive an inquiry from someone on the Fisheries Counciland a draft environmental <br />assessment was transmitted to that individual for his review and no comments came in <br />subsequent to his reviewing the environmental assessment. The only other I guess public body <br />dealing with recreational resources was Department of Parks and Recreation and they didnt <br />indicate any objections to the application. <br />GRAHAM:Was there ever a public meeting advertised and held down in the <br />Kawaihae area where the interested people around there could come and hear the States plans? <br />NISHIMURA:No there wasnt any public meeting. <br />GRAHAM:Thank you. <br />GALDONES:Mr. Yuen? <br />YUEN:This is let me start make a little statement and then Ill turn it into a <br />question.WearerecommendingapprovalofthisandIrevieweditandIsignedoffonthe <br />recommendation for approval. I do have some misgivings about this application from the state <br />and that has to do with the fact that this is currently its an open area along a shoreline. Its not <br />exactly shoreline; its very close to the shoreline. If this rezoning went through actually it would <br />be by far the closest to shoreline property to be rezoned in the current administration. I cant <br />think of any other properties that you would consider shoreline or close to shoreline that have <br />been rezoned to a higher use in the current County administration. It is next to a sandy beach. <br />You have, theres a are EOd for County recreational use next to it. Im just wondering if the <br />potential gains to the State from leasing this out outweigh the fact that you have a-. We have the <br />government busily spending money now to acquire coastal lands in many areas along both in this <br />County and in the State and general public policy in trying to keep open space along the <br />shoreline. How do you weigh, Id like to hear your weighing of the States interest here in <br />potentially leasing this out as a revenue generating facility versus just keeping it as it is in open <br />space. <br />CHUN:Well I think one of the new functions weve taken on at DLNR and then in <br />part to support not only the State in general but DLNRs mission with its public resources is to <br />identify lands with revenue generating potential. This is one that we did. We acknowledge it is <br />near the shoreline but through our Hilo office I think we effectuated the set aside to the canoe <br />club or the County to maintain all of the immediate shoreline area and I believe useable area. <br />Its a little difficult for us at times to deal with some of these things because we unlike a regular <br />developer or proper owner we are subject to public land laws which means the property has to go <br />out for auction. So we get demands or questions or inquiries from interested parties and yet we <br />can never really be assured that thats going to be the ultimate user, which does put us in a little <br />catch 22. You know were here with you trying to discuss certain things and we cant tell you <br />what will be built. All I can say is were trying to do the best we can with the processes we are. <br />We think that some of the mechanisms that are in place will help for example you know the set <br />aside and in addition that when the auction is held number 1 if there really is no demand for the <br />EXHIBIT B <br />5 <br /> <br />