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Drive. Three hotels took advantage: Hilo Hawaiian, Coral Reef, and Reeds Bay. All three were qualified. All three met the criteria, and two were granted approval in concept and received their extension. Our first proposal, one of many, was dated October 21, 2013. It took nine months for a denial letter to be received. Please keep in mind, we waited nine months for a denial letter. Reeds Bay Resort Hotel submitted a proposal which included a $1,171,000 upgrade. A letter was seen by Reeds Bay Hotel from DLNR which was approval in concept. This was great news for Reeds Bay Resort Hotel because we knew that Hilo Hawaiian and Coral Reef received the same and were granted their extensions. So you can believe how we felt at that time. Then, several months later, a denial letter was received dated July 24, or 21, excuse me, 2014 stating that they believed there was, the site had greater potential, leaving us only five months to respond with another proposal, which we did. And again, I want to state, that Reeds Bay Hotel legally qualified under Act 219 but was again denied for the same reason, that there was better potential for that area. Soon after Reeds Bay Resort Hotel received a request for a structural report over the confusion of the life of the building. Subsequently, a report was submitted which found Reeds Bay Resort Hotel was fit for future hotel use with only a few modifications and upgrades which was included in our previous proposals and would have more than qualified Reeds Bay under Act 219. Unfortunately for Reeds Bay, and timely for those interested in our lease renewal—not interested in our lease renewal, the Act 219 expired which left Reeds Bay Resort Hotel where we are today. Reeds Bay Resort Hotel is not a small hotel. We are a 64-unit hotel and we have invested over a half a million. Over $500,000 since 2005. We are quickly approaching $2 million in revenues per year and we have a current proposal of$2.2 million in renovations to make this hotel a beautiful landmark with a spectacular waterfront restaurant located on the beautiful Reeds Bay. Reeds Bay Resort Hotel is and will be a place for all to enjoy the view, have a quiet night's stay, and dine in fine cuisine. Which brings us to today. What is the future of Reeds Bay Resort Hotel and the new Senate Bill 3058 which appears to allow BLNR the ability to modify or extend leases which may modify or eliminate any statutory restrictions. Members of the Board, Mayor Kim, Senator Kahele, we reach out to you. We were qualified under the original Act 219 and we stand before you today with hopes of a fair and honorable board to do the right thing. We currently have that proposal of$2.2 million which we have waited over 10 months to hear any news of our predicament. And I apologize for the spelling of predicament. We humbly appeal to the integrity of this board and strongly feel we should not have to go out for bid based on the law that was instituted for this very reason and why we are here today, dated back on July 11, 2011. We believe that the $2.2 million dollar proposal will fit the DLNR's beautification plans and will make a Reeds Bay Resort Hotel a beautiful hotel and a landmark for tourists and locals alike to be proud and enjoy. Humbly submitted, Patty Heidenfeldt. DELIMA: Well thank you for your testimony. I'll call on Ed Bushor at this time. BUSHOR: I'll pass. DELIMA: Okay, and Mr. Applegate. Do you want to testify George? APPLEGATE: I'll pass. Page 4 of 17 Banyan Drive Hawaii Redevelopment Agency July 25,2018 Minutes