2024-05-28 PL-BOA-2024-000104 Coupe Order Exhibits COMBINED_v1

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Mr. John De Fries April 29, 2010 • Page 4 Mamalahoa Highway Bypass Phase I (Keauhou to Haleki'i Street) - $15,500,000 Mamalahoa Highway Bypass Phase II (Haleki'i Street to Napoopoo - $9,260,000 Mamalahoa Highway/Halekri Street Intersection Improvements - $290,000 18.On September 16, 1999, Oceanside and the County entered into an Agreement (Subdivision Improvements) stating that Oceanside was to complete the construction of utilities improvements (such as roads, drainage structures, sewer system, and potable water systems) in accordance with construction plans and specifications approved by the Planning Department of the County of Hawaii on September 15, 1999, File No. SUB 98-124 by December 31, 2001. Said agreement was secured with a bond in the amount of $34,170,000. 19.On September 16, 1999, Oceanside and the County entered into a Road Maintenance Agreement, whereby Oceanside was to construct an extension to Haleki'i Street and a new road and maintain the landscaping and other facilities for a period of five (5) years after dedication. Said Agreement was secured by a bond in the amount of $1,635,000. • 20.Based on the agreements and bonds as provided above, on September 18, 1999, Oceanside received Final Subdivision Approval No. 7168 for "Hokuli'a, Phase I". 21.On November 27, 2000, Oceanside and the County entered into an Agreement (Subdivision improvements)where Oceanside agreed to complete construction of utilities and improvements (such as roads, drainage structure, sewer systems, and potable water systems) for Hokulia Phase II by November 27, 2001. Said Agreement was secured by a bond in the amount of$7,190,000. 22.Based on the agreement and bonds as provided in paragraph 21 above, Oceanside received Final Subdivision Approval for Hokulia -- Phase II on December 1, 2000. 23.Ali bonds mentioned herein were issued by "American Motorists Insurance Company", one of the Kemper Insurance Companies. 24.The construction of the bypass has always been and continues to be a priority for the County of Hawaii. When questions arose concerning Oceanside's financial solvency and their ability to fulfill their obligations under the various agreements (including the Development Agreement), as well as the payment of the various bond premiums, representatives of Oceanside and their lender met with the County administration in April 2009, and assured the County of Oceanside's commitment in fulfilling its obligations. Oceanside promised to produce a financial plan to the Mayor of the County of Hawaii, detailing their proposed course for fulfilling these obligations.