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KANUHA: All I ask, isn't everything on the shoreline now a SMA Major. <br /> Correct? <br /> KERN: It is if it exceeds the $500,000.00 cost threshold. Yes. <br /> KANUHA: These days in times majority is an SMA Major. <br /> KERN: Many, yes. <br /> DEFRANCO: Yes, Commissioner Kanuha. <br /> KANUHA: With that I know there's a concern just looking at written <br /> testimony here just for the definition of development that was in there and a couple of other <br /> things. Could you just kind of clarify on that? Can you not hear me? I'm loud so I'll try not to <br /> speak so loudly into the mic. <br /> KERN: Could you repeat that? <br /> KANUHA: The only provision that this is coming off of a testimony and <br /> obviously we got to touch on all of that. But it is coming back and obviously like I just asked <br /> anything over 500 is going to trigger an SMA Major and majority of shoreline property <br /> nowadays and anything going on is an SMA Major. Especially with costs moving forward with <br /> that going forward one question I want to ask you. Is what Mike brought up kuleana properties <br /> and kuleana lands especially to Native Hawaiians that say we come through and there's a <br /> tsunami or adverse effect onto the property. That they are able to go back and rebuild and that <br /> have been there. Are there any exemptions for that? Is there anything that's set-in place in the <br /> language? <br /> KERN: I don't believe there's anything explicitly exempt as it relates to <br /> kuleana's and that side of it. There are some areas that would be defined as not as maybe <br /> development as far as like repair and maintenance goes — <br /> KANUHA: Yeah. <br /> KERN: — or minor activities and outside of that everything that's defined <br /> as development which it now includes the single-family residence on the shoreline would be <br /> under there. But I'm not aware of any other special provisions for those land types. <br /> KANUHA: I think that language needs to just coming in, I think that language <br /> needs to be changed as well and there needs to be something put in there. For special cases and <br /> especially like you said the "mom and pop,"the local families that are able to have property on <br /> the ocean or are able to actually get to that point where they're able to buy a shoreline property <br /> and they're able to do something for their family and their kids. Even with family and friends <br /> helping you still construction cost is going to hit that SMA Major no matter which way you look <br /> at it. <br /> 27 <br /> EXHIBIT B (DRAFT) <br />