2017-03-16 Leeward Exh A (AMEND SMA 03-007)

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CARR SMITH: Okay. I saw the For Sale sign in the photo, and I didn’t know if that was old or current. VITOUSEK: No, no, no. No — CARR SMITH: Okay. VITOUSEK: — the owner intends to develop it. CARR SMITH: All right. The delay, I know market conditions, but is that really the only reason — VITOUSEK: No, it’s not the only — CARR SMITH: — that this has gone on for so long? VITOUSEK: No, it’s not the only reason. One of the — CARR SMITH: I know the property changed hands at one point. VITOUSEK: Right. And another reason was that, you know, they had to negotiate the easement in order to get additional four-foot easement for access. They completed that, they completed negotiations with the interim that there is another parcel in between, so they’ve made agreement with them. And then interestingly, you know, they had to do a shoreline certification because the certification had lapsed; it was a 2007 certification. And, I’m sure you guys are familiar with the situation, but when DLNR came up to certify, or a State Surveyor, came up to certify the shoreline, they radically changed the configuration of the shoreline, which would have a lot of impact on what could or couldn’t be done, and it would have significantly cut into the property on the Kailua town side. And so the applicant had to, you know, go and hire a coastal engineer to come and survey the property. They had to go back and take, the surveyor, Wes Thomas Associates, Nick Yamasaki, literally, literally went back onto the property at the time they were running The Eddie in order to see it in a maximum wave event. And he made a proposal to certify the shoreline at the location where the upper reach of the wash of the waves, literally, at the time they were running the Eddie Aikau Championship. And DLNR accepted that in late 2016. And so at that point, you know, that means we can go forward. So that doesn’t entirely explain, you know, the delay, but that was a significant portion of the delay in addition to the market conditions and in addition to needing to negotiate the easement. But it was just an interesting, it was an interesting little view into the shoreline certification process and what effects it has. CARR SMITH: And based upon your experience while you have been working on this, is it their intent to build what we’ve seen? VITOUSEK: I, you know, as lawyer I try to stay out of the business side of it, but my understanding is they are re-evaluating, you know, as we go along, what would be a good market 6 EXHIBIT A