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best road. And I think at the last meeting we also heard I think from the Deputy Director that the
<br />County has no plans to fix and no money to even start fixing Hualālai Road anytime soon. So I
<br />think what you are looking at, you know, even if our traffic report says that the proposed project
<br />will not significantly impact traffic along Hualālai Road, that there is a perception that it is not good
<br />today. Our position is that unless the County is going to do it, then the County has to recognize that
<br />the developers will do it. And I think you people have been on the Commission quite a long time; I
<br />think you see that happening through Kona. I think the Mayor just gave a speech last week at the
<br />H.C.P.O. conference where he said that probably Ane Keohokālole Highway was the first road the
<br />County built in 40, 50 years or something like that. So I think that as, you know, as responsible
<br />developers, and you as responsible Planning Commissioners, we have to recognize between
<br />ourselves that regardless of the issues on traffic, unless you are totally going to say there is no
<br />further development in Kona, you have to rely on a development to come in and put in their fair
<br />share roadway improvements. And so that’s why we, you know, and I think that you received a
<br />copy of our September 26 proposed changes to the County’s, to the Planning Department’s
<br />conditions of approval, and the red additions are our proposed changes. Part of the changes are to,
<br />they are related to this traffic issue, are at Condition I, and effectively what we are saying is that we
<br />would improve Hualālai Road along the frontage of this Parcel 43, which is the standard, and the
<br />red addition is that in addition we are going to pay our fair share of the cost of improvements to the
<br />south half of Hualālai Road fronting Parcels 30 and 11, which are the notch right there in the middle
<br />of the project on the top side. And those are, I think one is owned by Dan Bolton or one of his
<br />companies, and the other parcel, 11, is a County water pump site I think it is. But what we
<br />proposed in this is that we would pay our fair share, provided however that this fair share of those
<br />improvements, which we don’t control, shall not exceed $75,000. The reason why we’ve got the
<br />$75,000 is that we had, the Barretts went in, did the estimate of the 6 or 700 lineal feet of that area
<br />that they don’t own, recognizing that we can’t construct a road on somebody else’s property, we are
<br />proposing to do our fair share, which is one-seventh of the approximately $500,000 cost of the road
<br />improvement. The one-seventh comes from looking at the four parcels that are lined up mauka to
<br />makai, two parcels to the north, and the Dan Bolton Parcel 30 there; so that’s the seven parcels that
<br />we are looking at in terms of the, you know, the denominator I guess that is. So in terms of
<br />addressing the traffic impact, that’s what we are proposing.
<br />
<br />And I think you are seeing in this particular application a unique situation. I think we are coming to
<br />a point in permitting entitlements in Kona where the Planning Commission and the County Council
<br />have to make a decision, a policy decision, you know; are we going to go forward and approve good
<br />projects for good people, and try to improve the roads and address the water – they are going to be
<br />catching the drainage coming from the mauka subdivisions, and we don’t have to do that, but that’s,
<br />they recognize that’s the right thing to do, so they are going to do that – or are we just going to say
<br />nothing happens in Kona? I think, you know, most of you have been on the Planning Commission
<br />for at least three, four years, some of you coming back for your second term, third term, so I think
<br />you will find the statistic enlightening, it was for me anyway; since the adoption of the Kona C.D.P.
<br />in September of 2008, in Kailua-Kona proper, you know, downtown Kailua-Kona, there has only
<br />been one rezoning for more than, there has been a couple that were for two lots or three lots, maybe
<br />two of them, other than those there has only been one rezoning approved in Kailua-Kona since
<br />September 2008. The rezoning was the Hu Ko Pa project right below this. If you don’t approve
<br />this one, I think what you are going to see, because this is being watched by many people in the
<br />business community, I think what you are going to see is a resignation that you cannot do anything
<br />under the Kona C.D.P. in Kona. The only reason why we are sitting here today is because we do
<br />not fall within one of the T.O.D. blue bubbles, we do not fall within one of the concurrency zones;
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<br />EXHIBIT B
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