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Scientific Research and Development—Due largely to its unique geographic characteristics which has attracted scientists in fields of astronomy,meteorology,volcanology, and agriculture/aquaculture, the County has benefited economically by the significant investments made in scientific research. The total astronomy related capital investment on Mauna Kea exceeds$600 million and combined annual budgets are about$72 million,while direct employment has increased slightly from approximately 475 to approximately 525. On July 21, 2009,the TMT Observatory Corporation announced that its board of directors had selected Mauna Kea over Chile as the preferred site for the Thirty Meter Telescope(TMT). It is projected that the TMT project will pour an estimated$1.2 billion into the economy over nine years,resulting in 300 construction jobs and 140 full-time permanent jobs. The Hawaiian Volcano Observatory in Hawaii Volcanoes National Park and the Natural Energy Laboratory of Hawaii Authority at Keahole,Kona are also major contributors to international research and the local economy. Agriculture—Forestry,nut and fruit orchards, and floral and vegetable farms have successfully replaced lands where sugar once grew. Agriculture makes a substantial contribution to the County's economy and produces a variety of goods for export as well as for local consumption but this sector of the economy did face its own obstacles this past year. Prices for coffee began to fall toward the end of last season but are expected to rise as the season continues. Major Initiatives For the Year During the year,the County focused on public works,planning, and other issues affecting the quality of life in the County. Public Safety—Construction continued on the new Pahoa Fire Station with total costs exceeding $4.3 million by the end of the year to help meet the growing public safety needs in the Puna- Pahoa area. Public Works—The County spent over$20 million in combined Federal and County funds on the construction of housing for the community, which consisted of the Ainakea Senior Residences and the Waikoloa Housing projects. Work began on the$50 million, 85,000-square- foot West Hawaii Civic Center on Kealakehe Parkway in 2008, and is scheduled for completion in 2011. The center will consolidate under one roof, 28 County departments, currently at different locations in West Hawaii, and one State agency. Planning—The Puna District, Kona District,North Kohala District and South Kohala District Community Development Plan's(CDP)were adopted. In addition,the Action Committees for each of these CDPs are being formed to implement the plans. In December 2008, the American Institute of Architects(AIA) selected Downtown Hilo as a recipient for the 2009 Sustainable Design Assessment Team(SDAT)Program. The SDAT program is a community assistance program that focuses on assisting communities with implementing principles of sustainability. - 3 -