PD BACKGROUND REPORT (PL-SPP-2023-000039 & PL-USE-2023-000010)

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Special Permit Application and Use Permit Application Hamakua Health Center, Inc. of$4 million to Medicaid costs, and served 21,629 patients (Exhibit 21- Capital Link report). HKH currently operates its North Kohala healthcare center in a building located adjacent to Kohala Hospital. Due to increased demand for community medical services,the existing facility has no additional space that would allow HKH to expand its operations to meet the growing patient population in the North Kohala district. HKH proposes to develop the Project, in three phases: • Phase L Transitional Clinic, expected to serve approximately 2,500 patients per year; • Phase IL Permanent Clinic, expected to serve approximately 3,000 patients per year; and • Phase III: Workforce Housing for varying mixes of Project contract workers and employees,traveling multi-disciplinary researchers and trainees working at the Proj ect. V. PROPERTY LOCATION,DESCRIPTION and OWNERSHIP The "ax shaped" parcel was the former location of the Kohala Club Hotel and is partially improved. The Property consists of portions of Royal Patent Grant Number 2689 to Luluu, Royal Patent Grant Number 1553 to Haaheo, Royal Patent Grant Number 1554 to Hoohua and Royal Patent Grant Number 2845 to R. Kaleohaalulu, situate at Honopueo, and contains a total land area of 5.682 acres ("Property"). The Property's southern boundary abuts Akoni Pule Highway, a County owned and maintained roadway, its western boundary abuts Maluhia Road, a private partially improved roadway, and its eastern boundary abuts Kamehameha Park and St. Augustine Episcopal Church. Kohala Hospital is located approximately one mile to the east of the Property. A portion of Waikalaupala Gulch traverses the SLU Agricultural District portion of Property in the north-south direction, encompasses an area of approximately +2.5 acres of the Property, and forms the physical demarcation of the developable lands for the Project. The Property's address is 54-3793 Akoni Pule Highway, Kapaau (Exhibit 1-location map; Exhibit 2-TMK map). HCC's fee simple ownership of the Property is evidenced by the Deed dated February 3, 2021, and recorded in the Office of the Bureau of Conveyances of the State of Hawaii as Document No. A77100240 (Exhibit 3-Deed). _________________________________________________________________Page 3 of 38