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there is not a final resolution to the issues. But the SMA Permit has to be consistent with the <br />zoning. At the Council the issue was not, there were no votes in fact in favor of extending the <br />RS 15,000-square foot zoning; that was defeated eight to nothing in Committee and seven to <br />nothing at Council at first reading. The issue at Council is between being a 5-acre zoning and a <br />15-acre zoning. So given that the SMA Permit should be consistent with the zoning, I would <br />urge the Commission to revoke it today. If the Commission cannot reach a decision, then both <br />sides have to live with the consequences of what that means. There will have to be future <br />Council action on the zoning. <br />WATANABE: Okay. I have one further question for either of you from the legal <br />standpoint. I agree that the SMA, however it’s approved or disapproved, must agree with the <br />zoning that is in place, and the zoning is in question. But assuming the time extension for this <br />particular SMA were granted, that would not imply that the SMA would continue subject to any <br />zoning changes in its current state because it’s, shall we say, highly unlikely that RS-15 would <br />remain the zoning of the property. Am I correct in that in which case it would need to be <br />adjusted? <br />YUEN: Well, actually to develop the property there are administrative permits that <br />are necessary, and in my view those could not be granted under the present state of the zoning <br />where they are not in compliance with the time conditions of the zoning, and the Council has <br />refused to extend it. <br />WATANABE: Okay. Do we have any further questions for staff? Then, well, before I <br />forget, we don’t have anyone signed up from the public to testify on either of these matters, <br />either Agenda Item 1 or 2. So Mr. Lim, may I call you up? And let me swear you in. Do you <br />swear or affirm to tell the truth now before the Planning Commission? <br />LIM: I do. <br />WATANABE: And for the record name and address, please. <br />LIM: I’m Steve Lim from Carlsmith at 121 Waianuenue Avenue in Hilo. I <br />represent Kohala LLC. <br />WATANABE: Thank you. I apologize; I didn’t mean to enter into these discussions <br />without having you available for comments. So I guess this will be a good time for you to put <br />forth your views. <br />LIM: Okay. Just a short wrap-up in terms of where we started probably some <br />two years ago or so – or more. The applicant, Kohala LLC, was just at the point of coming off of <br />a failed joint venture to develop the property, and was starting to have us work on the – you <br />know, there were significant archaeological and access issues over there – so we were starting to <br />work on the plan to come in with what was going to be a reduced density project down from the <br />50 lots that were allowed in the SMA Permit 379. It was at that point – before we started, we <br />were starting to work on our annual report – at that point the Planning Director filed his notice <br />with the Planning Commission to revoke the SMA Permit and the zoning. So here we are some <br />EXHIBIT A <br />4 <br /> <br />