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KERN: Any questions for the applicant’s representative? Commissioner Domingo.
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<br />DOMINGO: I know upon acquisition of the zoning, and I don’t think it will happen -. But if someone
<br />does come before you and say, okay, now that you’ve gotten your rezoning we’d like to buy it, and
<br />we’ll offer you “x” amount of dollars, it would certainly seem very tempting to sell it. Now I don’t
<br />know how we can, I don’t know how we can govern that. I don’t know how we can control it.
<br />Because, you know, the compliance to the law was met and it’s written in the ordinance with regards to
<br />the development of the property, but not of a business or any commercial endeavor.
<br />
<br />And as I listened to the debates, one of the, one of the potential candidates have said there’s nothing
<br />wrong with making a profit. You know, there’s nothing wrong with making profit. I think that’s what,
<br />I think that’s an inherent desire or human behavior to do something like that so we can improve our
<br />way of life, and provide for us and our families. But, and, you know, I recall in other instances where
<br />a rezoning of a property to a resort, you know, for resort was given and that individual came to us with
<br />some commitments. Shortly thereafter he sold that property and, you know, he made over, he sold it
<br />for over $10,000,000. And I don’t know to what degree of, to what amount of profit he made. But
<br />certainly he was, when he came before us he had in mind was speculation; and we had just gone along
<br />with it thinking that it was a development that would be good for the island. And now as I look at this
<br />there’s a same scenario that we can see. And I also know that others have bought other properties,
<br />agricultural properties, residential properties, they got their residential rezoning and an increase in
<br />zoning for their agricultural properties, and thereafter they sold it. So the question is how can we curb
<br />that? You know, and what we’ve got here is this ordinance says you got your zoning and there are
<br />conditions upon which that zoning was granted and these are the conditions you have to meet, should
<br />you not meet that the land would, the rezoning would revert to its original designation. You can’t use
<br />it for any other thing. So with that I’d just like to let you know, that’s where I’m coming from, you
<br />know. And I think it’s, it’s every property owner’s inherent right to do whatever they wish to do with
<br />their property, providing that they comply with all the laws and requirements that are set forth for that
<br />use.
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<br />MIKKELSON: I want you to know that the Galans have actually, they have spent quite a bit of money
<br />trying to secure funding. She’s, they’re well underway to do that. The funding that was held up was
<br />actually by the length of the time that we have not had a hearing. So we had to go back to the lender
<br />and say don’t worry, it’s going to be okay, we just have to go through the Planning Commission, and
<br />there hasn’t been a quorum. So it has been, so, you know, they’re trying very hard. Her vision, and
<br />it’s really important cause it’s Karen’s vision, was to have a situation where people could come and
<br />stay in Pahoa. One of the units, proposed units is an ADA compliant unit, meaning that somebody
<br />who needs those accommodations would have a place to stay in Pahoa. And, therefore, they could
<br />come, stay, eat at the local establishments, be able to stay without travelling away, coming back to
<br />Hilo and spending their money in Hilo instead. So that’s part of the idea. But also she wants to have it
<br />be an outlet for people’s, there’s going to be a proposed art gallery. That’s going to help people in
<br />Pahoa. There are a lot of people down there that are artistic and have no resources. It gives that
<br />opportunity. And so there is an opportunity there for this proposed development to be really
<br />something nice for Pahoa. And Mrs. Galan is interested in retiring, aren’t we all, anyway, and giving
<br />the opportunity to manage it and be a part of it. So that’s what she feels. She has worked for all of her
<br />life, this is what she wants to do. I hope that answers your question.
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<br /> EXHIBIT B
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