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Mr. John De Fries <br /> April 29, 2010 <br /> • Page 7 <br /> The subdivision improvements are not yet complete, despite the <br /> December 31, 2001 deadline for completion. Further, the County is of the <br /> information and belief there is no current schedule or plan for the completion <br /> of the Phase I subdivision improvements. <br /> In meetings with County of Hawaii officials, Oceanside representatives <br /> have admitted Oceanside does not have the financial capacity to complete <br /> construction of the bypass as earlier promised. The veracity of this <br /> representation is buttressed by the representation made in the Complaint filed <br /> in The Club at l-lokull'a, et. al. v. American Motorists Insurance Company, et. <br /> al., Civil No. 10-1-116K (Third Circuit Court, State of Hawaii), wherein <br /> Oceanside allegedly admitted in writing on March 3, 2010, that it was unable <br /> to complete work as promised with respect to various club and subdivision <br /> improvements. <br /> Pursuant to Paragraph 24 of the Development Agreement, an annual <br /> report must be submitted by Oceanside detailing its "compliance with the <br /> terms and conditions of(the Development)Agreement to the Planning <br /> Department." Upon information and belief, no report has been received for <br /> 2010. <br /> The County of Hawaii requests acknowledgment from Oceanside that it <br /> is in material breach of the Development Agreement. Please communicate <br /> your response to this office as soon as practicable. <br /> Very truly yours, <br /> LINCOLN S. T. ASHIDA <br /> Corporation Counsel <br /> 40 <br />