2007-10-05 TVOLCANO - Laserfiche WebLink

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fee. So we changed it from a leasehold subdivision to a fee subdivision. In the process of acquiring the fee, we acquired this 16.7 acres which was zoned Urban under the Land Use zoning, but was zoned Ag under the County, Ag and Open under the County zoning. So in order to get this zoned and subdivided, we had to come to the County Council; and at that time it was a real problem because the members were kind of opposed to -. This is a catchment area, the Volcano is all catchment, and there is a real big problem of getting approval of a Water Department waiver through the Council. We finally did that and we finally got involved. By the time we got involved with the actual development, the real estate market was gone and we couldn’t get the financing for the improvement. And so in the meantime Greg Hall who was our main real estate guy passed away. So the things just came to a halt. And then with the market recovering we kind of got started again. And so we’re here before you asking for the time extension so we can complete the subdivision. Actually the subdivision is completed, all we need is final approval from the Planning Director. GRAHAM: Thank you. Do you have any questions for the applicants from the Commissioners? Commissioner Siracusa. SIRACUSA: Yes. In your application you state that one of the reasons for the 10-year hiatus was that you were undergoing Board reorganization. And I was wondering, usually Board reorganization is a matter that’s under the control, you know, it’s not something you don’t have any control over. But now you’ve explained with the passing of this primary board member, that would explain some of it. But ten years’ worth? I mean, was it just that or could you be a little more clear about what the reasons for the hiatus were? I mean it seems to me the economic conditions don’t last that long, other people are able to get financing and do business. And one person’s demise can, you know, set things back for a year, maybe two, but ten years seems an extraordinary long time; and I’d like to have a fuller picture of what was involved. LIM: I think it was a combination of the market and the transition on the board. And you’ll notice the initial applicant was Hilo Shopping Center, Incorporated, which is a related -. SIRACUSA: Please speak louder, Steven, I want to hear you. LIM: I’m sorry. It was a combination of the financing, the interest rate, and the change over the board in the passing of Mr. Hall. The long period of time, I think, was partly related to the transition from the Hilo Shopping Center, Inc. entities with the Volcano Fairways Development Corporation. That took some time. I think that the market was the primary reason why. You know, Mr. Henderson is doing this primarily on his own and so he doesn’t have access to the major capital market that you see for the larger projects. So he has to be a little bit more concerned about his, you know, the feasibility of going forward. So I think until he felt that the market was sufficient to support the cost for the project that he didn’t feel comfortable going forward. And, well, two years ago I think he finally made the decision he’s going to go ahead and finish the subdivision; and that’s what he has done. So he basically put in all the EXHIBIT B 5