|
know, how many lots that they need. Effectively, the infrastructure that you see on the map, the
<br />roads, the sewer, the drainage that will stage pretty constant with this project, is difficult to develop
<br />because it’s kind of a sloping terrain going down. So that’s why we wanted to use a PUD to give us
<br />more flexibility. And originally on this project plan, they had smaller lots, I think, down to 8,000 or
<br />9,000 square feet just to take advantage and minimize the grading. But in response to the
<br />community’s concerns, they are now at a minimum of 10,000 square feet, trying to arrange all of
<br />the larger 15,000-square foot lot along the Hualālai Road that abuts the neighbors. So the timing of
<br />the build-out, because they are related in terms of the access out to Hualālai Road, my expectation is
<br />that they are going to try to develop them both at about the same time. They don’t have to do that,
<br />but the likelihood is if they are going to mobilize for one project, it’s going to be a lot less
<br />expansive to mobilize for both projects. The access down to the Paulehia Street, which is the makai
<br />road going out to Pualani and down to the Queen K Highway, that one will be the important road to
<br />go through, and I think that for purposes of that project there at a planned unit development
<br />approval, we’ve got that already, and we are waiting for the subdivision pending the outcome of this
<br />project, because as we discussed, the drainage and all the other things kind of tie in to the makai
<br />property. And the water, too, is we finally got the water revised in early 2013, because they had an
<br />agreement but what happened was because of the poor real estate market, all the people who had
<br />signed up to do the Waiaha System agreement just fell out, and so we redid that, and so the water
<br />was one of the big impediments.
<br />
<br />HICKCOX: Yeah, one of the concerns I have, I mean I know we are dealing with this specific
<br />application itself, but if you look at the big picture, you are looking at actually incorporating these
<br />two proposals together as one, and the impact of what’s going to happen with this increase in
<br />density in the area, though it’s applicable by law, I understand that, the infrastructure itself, as far as
<br />the roads are concerned, the existing roads, that are being proposed to tie in to, you know, I mean, I
<br />don’t know, I’m not really a traffic expert in any way, shape or form, but from a commonsense
<br />point of view, if there is a tie-in with these subdivisions and there is no improvement to the
<br />surrounding existing infrastructure other than the proposal on Hualālai, etc., it’s going to be a
<br />cluster in there some place, I mean there’s a lot of lots.
<br />
<br />LIM: What’s happening is, you know, the Kona Community Development Plan requires the
<br />north-south connector roads. And that was the whole problem with Kona, because you’re
<br />developing from Queen K up or down effectively in kind of big cul-de-sacs; you don’t have north-
<br />south roads going. So that’s what the development of this project and the Hu Ko Pa project will do
<br />is it’s going to bring these north-south roads, so not everybody has to go down to Queen K to go
<br />north. Hopefully, at some point in time it will go all the way north, then you will have a multiple
<br />set of roads doing that. But I think that, you know, both because of the Kona Community
<br />Development Plan and the original subdivision of these lots, there was a declaration of agreement
<br />for the subdivision that created these, all these lots, and effectively that was recorded in the Bureau
<br />of Conveyances against all the lots. And it says that the future owners of all the lots, A, B, C, D and
<br />E, shall agree to coordinate development of access, water system, sewer system, drainage
<br />improvements and all utilities to service the lots. And so that’s effectively what we are doing is
<br />trying to coordinate the drainage, the traffic, the water, and, you know, in accordance with this
<br />agreement. The Kona Community Development Plan counsels to do that anyway. But I think that
<br />this will assist in developing of the urban core of Kona. The Kona Community Development Plan
<br />says to allocate development first to the Kona Urban Area, and we are within the Kona Urban Area.
<br />
<br />10
<br />EXHIBIT B
<br />
<br />
|