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coming down the street. And we think that will handle a lot of the existing drainage that is going <br />down, which is really not our problem but we recognize it, we have to do something about it, if we <br />are going to develop the project. So that will help the existing drainage condition even without the <br />project. <br /> <br />Other benefits to the County are the provision of four affordable units whether that’s in terms of <br />affordable credits or constructing units, we don’t know at this time; it’s still too early to tell. But it <br />will be another benefit to the County. <br /> <br />And one of the other side benefits to the County is actually a big benefit to the Department of Water <br />Supply. This particular project and the Hu Ko Pa project below it are members in the Waiaha <br />Water System that is being developed through Dan Bolton’s efforts, and he’s underway now, <br />grading the water tank sites. We heard he’s got the pipe ordered on site already, so he’s projecting <br />for completion of the water system by first quarter to second quarter of next year. What that will do <br />is that will, this Waiaha Water System will enable the Department of Water Supply to take <br />advantage of its very good Waiaha well that’s been up there for over ten years, I think, and they <br />didn’t ever have the means and the easements to bring the water down to Queen K. So what this <br />Waiaha Water System will do is it will allow them to bring the water down, put it into Queen K <br />Highway, service these and many other projects. What it will also do is it will allow the <br />Department of Water Supply now to uncap the valve that’s at the Honokōhau Harbor, and allow the <br />water to go north to the airport; right now the water doesn’t, from Keauhou, from the Kahalu‘u <br />shaft, doesn’t go past Honokōhau Harbor because of lack of supply. This new supply will allow <br />them to then push the water all the way to the airport, and will help all those projects out there, too. <br /> <br />So there are many benefits of the project that we believe is, warrants the approval of the project. <br />We know that there is community opposition. We believe that Hualālai Road is a clear demarcation <br />between the agricultural, rural type uses and the urban uses. And we believe that it is in compliance <br />with the General Plan and the Kona Community Development Plan. <br /> <br />L. BARRETT: Good morning, Chair. Good morning, Commissioners. We have met with the <br />community on six different occasions and talked about some of the different issues that they had <br />and, traffic was brought up, drainage, some trees issues were brought up, density was the biggest <br />issue and it’s always been the biggest issue. So we did revise our plan to include 15,000-square <br />foot lots along the border of Hualālai Road, and then the minimum lot size is 10,000 square feet <br />now. And as Mr. Lim suggested, we also put a connector road onto Hualālai Road, working with <br />the DPW. And as of right now, we believe that the density is still the only issue that may be coming <br />forward, but with the advantages of what we are providing to the County, we feel that the 43 lots <br />will not burden the County on any of the agencies. That’s all. Thank you. <br /> <br />LIM: The last thing that I had in terms of the conditions of approval is at Condition S, which is a <br />fair share contribution condition; at the end of S on Page 4 of your conditions of approval is credits <br />given for, against the fair share contribution for road and traffic improvements. Those are for the <br />improvements to Hualālai Road. We’d also like to add, in addition to Conditions H and I, which <br />relate to Hualālai Road, a credit for the cost of the north-south connector road in Condition G as <br />mentioned in either the existing Condition G or our proposed new Condition G. That is something <br />that is required more by the County than by the developer, and typically the Planning Commission <br />have given credits for that. We recognize that this north-south connector may have been required as <br />a private road anyway, so I think in terms of the credits we would ask that we be given credits for <br />6 <br />EXHIBIT B <br /> <br />