2013-07-18 Leeward Exh B - Hualalai Partners

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LIM: That’s typically how it’s done, yes. WHITTEMORE: Brandi, just to clarify. In the conditions here, it doesn’t make any reference to the roadway, that I’m reading, makai, that fronts makai parcel; it just says Lot 43, which I was referring to as that short section. It obviously extends down, but the condition here as is presented does not make any reference to the makai lot. I don’t know, I’m sorry, I don’t know what the number of that -. LIM: The makai Hu Ko Pa project is required to improve Hualālai Road along its frontage also. WHITTEMORE: They are. LIM: Yes, that’s correct. WHITTEMORE: Well, then why was the representation made that you would be covering that? Or did I misinterpret some there? LIM: No, no, we were just talking about this project frontage here. WHITTEMORE: So you have no obligation with the makai lot on Hualālai Road in improving that. LIM: Not Hualālai Partners of Kona. It’s the Hu Ko Pa LLC people who are obligated to do that. WHITTEMORE: Okay, okay, I misunderstood that, sorry. HICKCOX: Mr. Chair? BEAUDET: Yes. HICKCOX: Just for clarification, is there any connection between this particular proposal and the Hu Ko Pa proposal? LIM: Yes. What happened, we did this in 2010 before, but essentially what happened was they are related by not legally but by family. The Hu Ko Pa project was initially owned by the Barrett brothers who you see sitting here with me, and the Hualālai Partners project was owned by their dad, Frederick “Ted” Barrett. And they both had a common partner, and they were going to develop separate projects essentially. What happened was in about 2006-ish or so the partner decided he no longer wanted to participate in the development, and so they searched around for others to buy and they couldn’t find anybody, so the family essentially bought it. So the brothers have bought into both subsequently. They are separate LLCs, separate legal entities, separate money and all that stuff. So, yes, they are related by family but not legally. HICKCOX: I see. And another question, please, if I may. Any idea on when these proposed build-outs to Pualena and the makai street that are going to be completed? LIM: No. I think a lot of it depends upon the market, and I think we see hopefully that, you know, some of the market is coming back. What, some of the challenges that this project has had is that they’ve gone on and the markets have come and gone, and so they had to rethink what size lot, you 9 EXHIBIT B