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

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Mr. John De Fries April 29, 2010 Page 5 25.To date, despite further verbal representations and assurances from Oceanside representatives, no financial plan has been submitted to the County of Hawaii. 26.In February 2010, at a meeting between Oceanside, its lender, and County administration officials, the County again expressed its concern for the need for Oceanside to fulfill its obligation to complete the bypass, given the acute needs of the community. A proposal was made for the collateralization of real property belonging to Oceanside in favor of the County for the purpose of allowing the County to complete construction of the bypass. After completion of the bypass, Oceanside would be allowed to repay the County; upon fulfilling this financial obligation to the County, the County would release any secured interest in the real property. Oceanside representatives admitted they did not have the financial resources to complete construction of the bypass. 27.Oceanside representatives and their lender agreed to explore this • collateralization arrangement and went so far as to begin scheduling a site visit and obtaining an updated appraisal of the subject real estate. 28.Within a few weeks after the discussion with Oceanside concerning the collateralization of their land in favor of the County for the purpose of allowing the County to construct the improvements • promised by Oceanside, the County learned Oceanside had arranged a "private auction" of some of its lands. 29.Despite repeated attempts by the County to obtain further information about this "private auction," Oceanside representatives have been deliberately vague and have not provided the County with any material information concerning what this auction is all about, who will be invited to participate in the auction, and what lands are being auctioned. 30.The construction of the bypass began in February 2002. Despite Oceanside's claims they were not obligated to complete the bypass within the five year time as required by the Development Agreement due to periods being "tolled" by litigation, a judicial order putting the County in possession of the land pending appeal was filed by the Third Circuit Court on July 28, 2009. Oceanside has failed to resume construction and the fulfillment of their obligation for the completion of the bypass.