2009-06-30 TPALAMANUI - Laserfiche WebLink

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to Road 4. Road 4 is off this property; itÓs on State land and on land that is now owned by the Gramercy Corporation. That will proceed mauka until it connects to Mmalahoa Highway. Road 5 is a short connector that extends from Road 1C over until parcel of vacant land there that is actually up above the Univer As I understand it, there are no current plans to develop that State land up there, but there is a requirement for that connector road to be in place so that it can connect up to Road 1C in the future. So if we look at what weÓve got there, whatÓs happening now is, what we would like to do is construct Road 1A and Road 2, a two-lane road going out. involves the intersection of 1A with Queen KaÒahumanu Highway and also an intersection, of course, with Road 2 with Kaiminani Drive. Those connections wilve access to the project and to the university without forcing traffic through the airport intersection. And as you know, thatÓs become kind of a critical intersection in Kona right now. The Kaiminani connection will also allow local traffic to come from mauka down into the University and back without having to get on Queen KaÒahumanu. Under the changes weÓre requesting Road 1B would be constructed once Palamanui starts with residential construction in that area or when anything above it is developed; in other words weÓll have connectivity right down to Queen KaÒahumanu and Kaiminani. 1B that is 1C, 3A, 3B, 4, the critical conditions, what we look at is what happens with Road 4. For Lot 1C, thereÓre rally two things going on: That road has to be built when Road 4 must be th built to maintain the connectivity, and it has to be built before the 250 residential building permit. That change reflects our reality; we need to have some cash flow in order to make all of these improvements. As Mr. Darrow noted, we are not asking for the deletion of the condition that says that Makalei Drive connection is not to be open until Road 4 is open. That condition I think is now X12, and that should remain in the ordinance. So for Road 4 Palamanui wi and work with the County on the acquisition of rights-of-way for Road 4. As we said, the mauka segment of that is privately owned. It was owned by Lynch Investments and that was foreclosed, and so the current owner is Gramercy. And there have been discussions with Gramercy about the acquisitions of rights-of-way and what they intend to do with the property. Our request for the new deadline for the completion of Road 4 is after the County has the right-of-way and by th the time Palamanui has its 600 building permit. This project allows just over 1,100 units, so thatÓs a little bit passed the half way point as far as this project is concerned. Alternatively, if there is funding, letÓs say the Gramercy people come forward with at least 50 percent of the construction cost for the road within the Gramercy property, then Palamanui is going to have to th make its share by the 400 building permit because weÓll have less cost weÓll have to absorb for that road. Okay, now, we had also requested a little more certainty in the bonding and surety requirement; we had asked that we just set the amount at $10,000,000. As Mr. Darrow has indicated, the Department has concerns about that, and we can understand the concerns. What is critical to us is that we would be able to work on providing some reasonable way to give the security, and we are prepared to work with the Planning Department on that. EXHIBIT B 6