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<br />BOWMAN: Thank you. Would you state your name and address? <br /> <br />FUKE: Sure. Good morning, Madam Chair, Members of the Commission. My name is Sidney <br />Fuke. I’m a planning consultant. My business address is 100 Pauahi Street, Hilo, Hawai‘i. With <br />me this morning are the applicants, Mr. Tom Smith and Arturo Litwak, who both flew in from the <br />mainland a few days ago for this hearing. They are part of the group called 327 Kona LLC. Just by <br />way of background, the reason why 327 Kona LLC was formed, I mean, you know, they purchased <br />327 acres of land, and that’s the reason why it’s 327 LLC. The subject area is a portion of this 327 <br />acres. <br /> <br />Now, we’ve had a chance to review the staff’s background report and the Director’s proposed <br />recommendation. We have absolutely no problem with the background report because, you know, <br />it’s very accurate. We do, of course, differ with the Director’s recommendation. We do understand <br />the Director’s position, you know, in light of the Kona Community Development Plan. And if the <br />Commission would indulge me, I’d like to go over a presentation that, you know, with the kindness <br />of your staff; they enabled me to have whatever I was going to present on your PowerPoint just to <br />make it easier for the presentation purposes. <br /> <br />So, okay, the Planning Department’s -. Oh, it’s yours. Nope. Where are mine? Okay, here is <br />where we begin. The reasons for the denial recommendation: If you read the staff’s background <br />report, it said it was not because of the General Plan Land Use Map, you know, because it’s within <br />the General Plan Urban Expansion Area; and it was not because there is no water, because there is <br />more than sufficient water commitment for the project; it was not because of any archaeological or <br />other environmental constraints, because there is no archaeological impacts, you know, we did the <br />study, everything was done; and it’s not within any floodway; it is not because they are not going to <br />be providing any affordable housing or make their fair share contribution, because they are required <br />as a condition of all zone change to comply with the County affordable housing requirements, and <br />in addition to that, the fair share requirements. And the denial recommendation, if you read <br />carefully, it’s also not citing any of community or public agency objections; neither the Police, Fire, <br />you know, had, or Public Works Department, had any objections to the request. The question then <br />is, why was, what motivated the Department to recommend denial? And the only reason they came <br />up with was because of the Kona Community Development Plan in relative to the concurrency <br />issue. Specifically, as the staff pointed out, it says that the Kealaka‘a Street extension, essentially <br />between Palani Road and Hina Lani Street, must be completed before occupancy can occur. And at <br />this point in time we all know that the timetable of its completion is unknown. And so, that <br />essentially is the primary reason for the denial. <br /> <br />This is the map of the Kona Urban Area reflected in the Kona Community Development Plan. And <br />what I’ve tried to do is, this is the 327-acre property, and this area outlined in red is the so-called <br />Kona Urban Area. And if you can see, you know, there is, a lot of urban area is being directed <br />towards, you know, where we are sitting right now, you know, in the Kona Palisades, the Kona <br />Acres area. And largely the thrust behind creating urban zones in this area is to minimize pressures <br />for development for your better agricultural land, which would be outside of your Urban Area like, <br />you know, Hōlualoa and Kealia and heading down South Kona. So, as the growth occurs in the <br />North and South Kona area, there has to be a competition for this area. So the Plan, you know, <br />reflective essentially of the General Plan basically saying that let us focus development in this area, <br />which does not have very competitive agricultural resources. <br />3 <br />EXHIBIT A <br /> <br />