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because it was not in a deterioration state of the hotel. However there was safety concerns
<br /> because of electrical and Public Works volunteered to expedite certain kind of temporary repairs
<br /> with the owner's son of Uncle Billy's to keep it open until the time for demolition. And I think
<br /> you know that the State has worked out an agreement with the owner of Naniloa to do an
<br /> assessment in regards to demolition so people could use that. Can you comment on that?
<br /> TSUJI: Yes the—actually there's, the agreement was a for a temporary permit for the area, at
<br /> least close down the hotel site and I think he wanted, Ed, Mr. Bushor wanted to keep the store
<br /> open, I guess, because of the popularity of that store.
<br /> From the audience: Thank you. We need it over there.
<br /> TSUJI: But as far as any type of demolition, any kind of agreement on that, there's no
<br /> agreement yet. What the Board had, the Land Board had asked us to do, and we just came out
<br /> with a, we didn't come out yet but we have a draft in the works of a Request For Information to
<br /> seek out whether there's any developers out there that would be interested in this concept. The
<br /> concept is, and again it's baseda lot of it is lack of funding for, by ourselves to demolition that
<br /> Uncle Billy's site, which is, I thought was going to be very expensive and it looks like I'm seeing
<br /> some draft numbers come out from our consultant and it looks quite significant. Just to demo.
<br /> So the concept of this RFI that we thought we'd just try and see if there was any takers,
<br /> especially since Mr. Bushor indicated some interest, was you come in, and the idea is to demo,
<br /> incur the cost of the demo, and incur the cost of rebuilding and to provide us with some figures
<br /> on the cost of each, and to provide us with some information of—and an incentive would be we
<br /> would have the ability to issue a long-term lease or of up to 65 years. And we current—we
<br /> thought we'd ask because, you know, what kind of terms or concessions would be needed,
<br /> especially like rent credits, in exchange for the expending the monies to demo and rebuild,
<br /> especially the demo part. And so we haven't, it's not ready to go out yet, it's just that we just got
<br /> a draft going and we're still under review, but that's the concept that we're looking at.
<br /> Otherwise definitely if we had to—we wouldn't be able to afford it ourselves in our own
<br /> operating budget; we'd have to ask for funding, for a CIP,just to demo Uncle Billy's. It's—that
<br /> alone, out of the three, we're actually studying all three, which is Uncle Billy's, Country Club,
<br /> and Reed's to the extent—Reed's is actually not in that dire condition. I mean, Uncle Billy's had
<br /> to be closed down, that was clear. The others are at least operating for now, but their lives are
<br /> known to be relatively short. And Uncle—Reed's Bay has probably the longest life right now, as
<br /> far as we can tell. But that's my comment on that thing.
<br /> I just, to just comment on some of what you were asking, I was to comment on was the Banyan
<br /> Drive Redevelopment Authority, I thought, when it first came out, was a good idea because it's
<br /> premised on a concept of these development authorities just like HCDA in Kaka`ako, with pretty
<br /> good special powers, and one thing I saw, especially in the Banyan Drive area that probably
<br /> could benefit from a County-controlled redevelopment agency was, because this is shoreline
<br /> SMA area, it could maybe help with the permitting, which is quite extensive just to demo and
<br /> rebuild in that area along the shoreline. As far as what I see in Banyan at least, at least what,
<br /> couple years ago, it since sunset, but there was legislation that allowed the resorts to ask for an
<br /> extension up to another 55 years, up to 55, in exchange for some pretty specific conditions of and
<br /> really was delved on improvements to the hotel. And in Banyan, the only one to take advantage
<br /> of that was Hilo Hawaiian, and they did complete it, so they made some significant
<br /> improvements. Meanwhile, Naniloa on the other has side pretty much finished up their
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<br /> Banyan Drive Hawaii Redevelopment Agency
<br /> October 25,2017 Minutes
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