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acres slated for conservation and purchased by the 2% Funds along this coast. It is the, as I <br />understand, the Kohala community would like the coast preserved completely. And this is a <br />great buffer really to protect fishing in this area. The 2% moneys and matching funds are being <br />sought by the County right now as we speak to acquire Kaiholena and also Paoo. So please <br />consider that when you are considering any development on this coast. I would recommend a <br />covenant condition and restriction along with your agreement to zone any of this property with <br />building envelopes and grading limitations on these properties. Thank you. <br /> <br />WATANABE: Okay, wait. I have to take, we may have some questions from the <br />Commissioners, so let me at least address that. Do we have any questions? None? Okay, thank <br />you for your testimony. Sir, you are wanting to provide testimony, is that correct? <br /> <br />FRANKEL: Yes, please. <br /> <br />WATANABE: Okay. Well, may I swear you in then? <br /> <br />FRANKEL: Sure. <br /> <br />WATANABE: Do you swear or affirm to tell the truth now before the Planning <br />Commission? <br /> <br />FRANKEL: Sure. Yes, I do. <br /> <br />WATANABE: Name and address, please. <br /> <br />FRANKEL: My name is David Frankel. My address is P. O. Box 1185, Volcano <br />96785. IÓm an attorney here representing other clients on another matter youÓll be talking about <br />later on. But I also represent MaikaÓi Kamakani ÒO Kohala, which was fairly involved in this <br />matter along with KkoÒo in the rezoning effort. And I just want to point out a couple of things <br />that we talked about earlier. It is my understanding that the SMA Permit for this project is no <br />longer valid; that they do not currently have an SMA Permit. If thatÓs the case, they have, there <br />is no vested rights issue, there is no vested rights issue at all. The Ninth Circuit Court of Appeals <br />upheld the, when the Honolulu City Council rezoned QueenÓs Beach area from Resort to <br />Preservation, that rezoning was not a taking. The U.S. Supreme Court in the Lucas decision, <br />Justice Scalia said the value of a property can produce 95 percent and it still would not constitute <br />a taking, if the property ownerÓs rights are not yet vested. I also want to point out the norm now <br />for setbacks is really 1,000 feet, not 40 feet; if you look at the Kona CDP for example, 1,000-foot <br />setback is whatÓs talked about. So itÓs really discouraging to hear the Commissioners sort of <br />jockeying for accepting a three-acre density project when the debate before was, well, between <br />five acres and 15 acres. And now, and thatÓs where the negotiation was. That was discussion <br />between five and 15 acres. And now you are talking about whittling down to three Î thatÓs kind <br />of discouraging. Thank you. <br /> <br />WATANABE: Well, IÓm not going to debate that with you. I sat through all those, and at <br />our discussions it was not between five and 15; the 15 came up at the County Council -. <br />FRANKEL: ThatÓs correct, thatÓs correct. And you -. <br />EXHIBIT B <br />12 <br /> <br />