department of land and natural resources state of …

D-2.

STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESOURCES

Land Division

Honolulu, Hawaii 96813

April 24, 2015

Board of Land and Natural Resources

State of Hawaii PSF No: 14KD-004Honolulu, Hawaii Kauai

Amend Prior Board Action of March 28, 2014, Item D-4, "Set Aside to County of

Kauai for Affordable Housing, Various lots in Wailua Houselots, Kapaa, Hanapepe,

Waimea, Kauai. Tax Map Keys: (4) 4-1-11:016,020, (4) 4-1-9:054, (4) 4-5-

008:009,012, (4)4-5-011:007, (4) 1-9-009:006,007,008,009, (4) 1-9-010:003, (4) I-9-010:033, (4) 1-6-004:003."

The purpose of the amendment is to issue an immediate management right-of-entry

permit,

BACKGROUND:

At its meeting on February 14, 2014, under Item D-4, the Board approved set-aside to County

of Kauai for Affordable Housing, various lots in Wailua Houselots, Kapaa, Hanapepe, and Waimea,

Kauai. See Exhibit A.

As part of the applicant requirements, applicant shall provide survey maps and descriptions

according to State DAGS standards and at Applicant's own cost.

Due to budget constraints, no funding was provided to the County of Kauai, Kauai County

Housing Agency, Housing and Development Division (KCHA-HDH) in the County budget for fiscal

year July 1, 2014 thru June 30, 2015 to proceed with surveys and analysis.

Letter dated March 9, 2015, KCHA-HDH have located some funds to proceed with the start

of survey and analysis of subject parcels in May 2015. They are requesting a right-of-entry permit for

a one year period.See Exhibit B.

Staff recommends an immediate management right-of-entry permit of subject parcels. Permit

will expire upon execution of Governors Executive Order setting aside the subject lands.

D-2

BLNR - County of Kauai April 24, 2015

REMARKS:

Previous Board approval did not include a management right-of-entry permit.

RECOMMENDATION: That the Board:

1. Amend its prior Board action of March 28, 2014, under agenda item D-4 by adding

to the Recommendations section:

2. Authorize the issuance of an immediate management right-of-entry permit to the

County of Kauai, covering the subject lands under the terms and conditions cited

above, which are by this reference incorporated herein and further subject to the

following:

A. The standard terms and conditions of the most current right-of-entry permit

form, as may be amended from time to time; and

B. Management right-of-entry permit will expire upon execution of Governors

Executive Order.

C. Such other terms and conditions as may be prescribed by the Chairperson to

best serve the interests of the State.

3. All terms and conditions listed in its March 28, 2014 approval to remain the same.

Respectfully Submitted,

Marvin Mikasa

District Land Agent

APPROVED FOR SUBMFTTAL:

^%farty S/Chap^, Inte^in/Chairperson

L/


Land DivisionHonolulu, Hawaii 96813

March 28, 2014

Board of Land and Natural Resources PSF No.: 14KD-004State of HawaiiHonolulu, Hawaii Kayai

Set Aside to County of Kauai for Affordable Housing, Various lots in WailuaHouselots, Kapaa, Hanapepe, Waimea, Kauai. Tax Map Keys: (4) 4-1-

011:016,020, (4) 4-1-009:054, (4) 4-5-008:009,012, (4) 4-5-011:007, (4) 1-9-009:006,007,008,009, (4) 1-9-010:003, and (4) 1-6-004:003

APPLICANT:

County of Kauai

LEGAL REFERENCE:

Section 171-11, Hawaii Revised Statutes (HRS), as amended.

LOCATION:

Portion of Government lands of Kauai situated at Wailua Houselots, Kapaa, Hanapepe,Waimea, Kauai. Tax Map Keys: (4) 4-1-011:016,020, (4) 4-1-009:054, (4) 4-5-008:009,012, (4) 4-5-011:007, (4) 1-9-009:006,007,008,009, (4) 1-9-010:003, (4) 1-6-004:003, as shown on the attached maps labeled Exhibit I.

AREA and ZONING: ° N :

TMK#(4)4-1-011:020(4)4-1-011:016(4)4-1-009:054(4) 4-5-008: 009(4)4-5-008:012(4)4-5-011:007(4) 1-9-009: 006(4)1-9-009:007

AREA38,500 square feet22,749 square feet26,571 square feet7,560 square feet7,175 square feet7,810 square feet7,017 square feet6,451 square feet

STATE LUDUrbanUrbanUrbanUrbanUrbanUrbanUrbanUrban

COUNTY CZOR-6

R-6

OpenOpen/SPA-AOpen/SPA-AOpen/SPA-AOpenOpen

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EXHIBIT" A"

BLNR - Set Aside toCounty of Kauai

TMK#(4) 1 -9-009: 008(4) 1-9-009: 009(4) 1-9-010:003(4)1-6-004:003

IEySTJLAND_STATUS:

Page 2

AREA6,172 square feet6,851 square feet16,792 square feet13,539 square feet

STATE LUDUrbanUrbanUrbanUrban

March 28, 2014

COUNTY CZOOpenOpenOpenR-4

Section 5(b) lands of the Hawaii Admission Act

DHHL 30% entitlement lands pursuant to the Hawaii State Constitution: NO

CURRENT USE STATUS;

TMK (4) 4-1-009:054, partially encumbered by General Lease No. S-6021 for a non-exclusive access easement over 616 square feet of the 26,571 square foot parcel.(Exhibit II)

TMK (4) 4-5-008:012 is encumbered by Revocable Permit No. S-6892 to Frances Madridand Sam Wunschel for "Home Garden". (Exhibit III)

All other lots are vacant and unencumbered.

PURPOSE:

Affordable housing purposes

CHAPTER 343 - ENVIRONMENTAL ASSESSMENT:

This action before the Board is merely a transfer of management jurisdiction and does notconstitute a use of State lands or funds, and therefore, this action is exempt from theprovisions of Chapter 343, HRS, relating to enviromnental impact statements. (ExhibitIV). Inasmuch as the Chapter 343 environmental requirements apply to Applicant's use ofthe lands, the Applicant shall be responsible for compliance with Chapter 343, HRS, asamended.

APPLICANT REQUIREMENTS:

Applicant shall be required to:

1) Provide survey maps and descriptions according to State DAGS standards and atApplicant's own cost;

2) Obtain a title report to ascertain ownership, where necessary, at Applicant's owncost and subject to review and approval by the Department.

3) Obtain a title report to ascertain ownership, where necessary, at Applicant's own

BLNR - Set Aside to Page 3 March 28, 2014County of Kauai

cost and subject to review and approval by the Department.

REMARKS:

All of the parcels have been identified under HRS 171-49.7 as public lands suitable andavailable for residential development.

TMK (4) 4-1-011:020 is 38,500 square feet in the CZO R-6, potentially buildablefor 2 homes due to DOH restrictions on septic systems.

TMK (4) 4-1-011:016 is 22,749 square feet in the CZO R-6, potentially dividableinto 2 lots with a potential maxiinum density of 4 units.

TMK (4) 4-1-009:054 is 26,571 square feet in the CZO Open. This lot may not bedivided and is subject to an existing easement from the neighboring residentialproperty under GL S-6021, The lot has a potential maximum density of 2 units.

TMK (4) 4-5-008:009 is 7,560 square feet in the CZO Open/SPA-A. This lot maynot be divided and is suitable for 1 unit.

TMK (4) 4-5-008:012 is 7,175 square feet in the CZO Open/SPA-A. This lot maynot be divided and is suitable for 1 unit. This parcel is encumbered by RP S-6892,

TMK (4) 4-5-011:007 is 7,810 square feet in the CZO OpenYSPA-A.This lot may not be divided and is suitable for 1 unit.

TMK (4) 1-9-009:006 is 7,017 square feet in the CZO Open. This lot may not bedivided and is suitable for 1 unit.


TMK (4) 1-9-009:008 is 6,172 square feet in the CZO Open. This lot may not bedivided and is suitable for I unit.



TMK (4) 1-6-004:003 is 13,539 square feet in the CZO R-4. This lot may not bedivided and is suitable for 2 units.

BLNR - Set Aside to Page 4 March 28,2014County of Kauai

On January 23, 2009, TMK (4) 1-9-009: 006, 007, 008, 009 and TMK (4) 1-9-010:003were set aside under Governor's Executive Order No. 4261 to the Hawaii HousingFinance and Development Coqioration for future housing and housing-relateddevelopment purposes. On March 15, 2011, under Governor's Executive Order No. 4362,Governor's Executive Order No. 4261 was cancelled.

The Kauai County Housing Agency (KCHA) was formed in May 1976 in recognition ofthe need to provide housing for low-income households and the elderly and to participatein the federal Housing Assistance Payments Program under Section 8 of the Housing andCommunity Development Act of 1974. Its mission is to provide greater opportunities forK-auai's citizens to choose and secure affordable, safe, decent and sanitary housing and to

live and work in neighborhoods and communities that can accommodate the needs anddesires of all households and individuals.

The KCHA is composed of two divisions, the Housing & Community DevelopmentDivision and the Rental Assistance Division. The Development Division developsaffordable housing with government resources, plans and monitors affordable housingwith private developers, monitors restrictions on affordable projects, provides researchand community education regarding housing needs and solutions, administers theCommunity Development Block Grant Program (CDBG), the Home InvestmentPartnership Program (HOME), Residential Rehabilitation and Home-buyer LoanPrograms, various far housing activities, and other related County, State, and federalhousing programs.

K-CHA is proposing to use the parcels to develop an in-fill, single family, affordablehousing development. By using United States Department of Agriculture (USDA) RuralDevelopment Direct Loan funds for 80% of the cost of the unit and 20% from K.CHA, theCounty of Kauai will be able to leverage its funds and provide an afifordable home for aKauai family. KCHA has a current list of qualified applicants and approved designs fordevelopment. Under proposed timelines, the first home could begin construction within 3months of the execution of this proposed Executive Order.

All of the parcels are within residentially developed neighborhoods and the highest andbest use for the parcels would be for residential use. The Kauai District Land Office

(K.LDO) receives complaints about overgrown vegetation on these parcels and doesregular maintenance to ensure that any potential liability is mitigated. DLNR and theBLNR are not in the business of developing residential units and therefore, staffrecommends that the BLNR set aside these parcels to the County of Kauai to developaffordable housing. This would allow for development of the parcels' highest and bestuse and would remove an expense and liability from BLNR management.

Various government agencies and interest groups were solicited for comments:


Page 5 March 28, 2014

AGENCIESState of HawaiiDOH-EPO

DHHLDLNR-Aquatic ResourcesDLNR-Forcstry & Wildlife

DLNR-Historic Preservation

DLNR-State Parks

County of Kauai

Pl annjnji DepartmentPublic Works

Water Department

Other Agencies/1nterest GrongsOffice of Hawaiian Affairs

COMMENTS

No comments

No response by suspense dateNo response by suspense dateHas concerns about parcel TMK (4) 1-9-010:003,that contains a burial site.

See Exhibit VNo comments

No response by suspense date

No responseby suspense dateNo response by suspense date

No response b^^ suspensedate

RECOMMENDATION:

That the Board, subject to Applicant fulfilling the Applicant Requirements above:

1. Declare that this action before the Board is merely a transfer of management jurisdictionand does not constitute a use of State lands or funds, and therefore, this action is exemptfrom the provisions of Chapter 343, HRS, relating to environmental impact statements.Inasmuch as the Chapter 343 environmental requirements apply to Applicant's use of thelands, the Applicant shall be responsible for compliance with Chapter 343, HRS, asamended.

2. Approve of and recommend to the Governor the issuance of an executive order settingaside the subject lands to the County of Kauai under the terms and conditions citedabove, which are by this reference incorporated herein and subject further to thefollowing:

A. The standard terms and conditions of the most current executive order form, asmay be amended from time to time;

B. Disapproval by the Legislature by two-thirds vote of either the House ofRepresentatives or the Senate or by a majority vote by both in any regular orspecial session next following the date of the setting aside;

C. Review and approval by the Department of the Attorney General; and

D. Such other terms and conditions as may be prescribed by the Chairperson to bestserve the interests of the State.


Page 6 March 28, 2014

Respectfully Submitted,

M^ryin MikasaActing District Land Agent

APPROVED FOR SUBMITTAL:

J. AiM, Jr., chairperson

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STATE OF HAWAIIBUREAU OF CONVEYANCES

RECORDEDJune5.20121:OOPM

Doc No(s) A-45390739

1 1/1B-32073180

/s/NICKI ANN THOMPSONREGISTRAR

TAW

LAND COURT SYSTEM ) REGULAR SYSTEMReturn by Mail Pickup

BEPT. OF LAND AND NATURAL RESOURCESUNO DIVISION

To:

Total Number of Paqes;Tax Map Key No. (4)4-1-009:Portion 054

GRANT OF NON-EXCLUSIVE EASEMENT S-6021

ofTHIS INDENTURE, made and entered into this 50^ day

lAgy , 20(2. ^, by and between the STATE OF HAWAII,by its Board of Land and Natural Resources, hereinafter referredto as the "Grantor," and RANDALL C. ROE, unmarried and JILDA V.

LOOMIS, unmarried, whose address is Kapaa,Hawaii 96746, as tenants in common of an undivided fifty percent(50%) interest each, hereinafter referred to as the "Grantee."

WITNESSETH THAT:

The Grantor, pursuant to Section 171-13, Hawaii RevisedStatutes, for and in consideration of the rent fco be paid and ofthe terms, conditions, and covenants herein contained, all on the

part of the Grantee to be kept, observed, and performed, doeshereby grant unto the Grantee, the following non-exclusive andterm easement rights;

Right, privilege, and authority to construct,use, maintain, and repair a right of-way, subjectto the terms and conditions herein,

4464S4 i 30C

EXHIBir'X"

in, over, under and across that certain parcel of land ("area"),also referred to as "premises," situate at Wailua, Kawaihau,Kauai, Hawaii, being identified as "Non-Exclusive Access

Easement," containing an area of 616 square feet, moreparticularly described in Exhibit "A" and delineated on Exhibit

"B," both of which are attached hereto and made parts hereof,

said exhibits being respectively, a survey description and surveymap prepared by the Survey Division, Department of Accounting andGeneral Services, State of Hawaii, designated C.S.F. No. 25,020and dated December 6, 2010, TOGETHER WITH the rights of ingress

and egress to and from the easement area for all purposes inconnection with the rights hereby granted.

TO HAVE AND TO HOLD the easement rights unto theGrantee, its successors and assigns, SUBJECT, HOWEVER, to thefollowing terms, conditions and covenants:

1. The term of this easement shall be fifty-five

(55) years, commencing on the 3Qi th day of M<a.y , 2olZ, upto and including the 2F\ th day of _^<^y 20(^1, unlesssooner terminated as hereinafter provided/ the Grantor reservingand the Grantee yielding and paying to the Grantor at the Officeof the Department: of Land and Natural Resources, Honolulu, Oahu,State of Hawaii, a one fcime payment, payable in advance, withoutnofcice or demand of ONE THOUSAND FOUR HUNDRED NINETY AND N0/100DOLLARS ($1,490.00).

44S4S4 I.DOC

THE GRANTOR AND THE GRANTEE COVENANT AND AGREE ASFOLLOWS:

1. The Grantee shall at all times with respect to the

easement area use due care for public safety and agrees toindemnify, defend, and hold the Grantor harmless from and against

any claim or demand for loss, liability, or damage, includingclaims for bodily injury, wrongful death, or property damage,arising out of or resulting from: 1) any act or omission on thepart of the Grantee relating to fche Grantee's use, occupancy,maintenance, or enjoyment of the easement area; 2) any failure onthe part of the Grantee to maintain the easement area and

sidewalks, roadways, and parking areas adjacent thereto in theGrantee's use and control, and including any accident, fire ornuisance, growing out of or caused by any failure on the part ofthe Granfcee to maintain the easement area in a safe condition;and 3) from and against all actions, suifcs, damages, and claimsby whomsoever brought or made by reason of the Granfcee ' snon-observance or non-performance of any of the terms, covenants,

and conditions of Lhis grant of non-exclusive easement or therules, regulations, ordinances, and laws of the federal, state,municipal or county governments.

2. The Grantor reserves unto itself, its successorsand assigns, the full use and enjoyment: of the easement area andthe right to grant to others rights and privileges for any andall purposes affecting the easement area, provided, however, thatthe rights herein reserved shall not be exercised by the Grantorand similar grantee(s) in any manner which interferesunreasonably with Che Grantee in the use of the easement area forthe purposes for which this easement is granted.

3. The placement of all improvements in or upon theeasement area by the Grantee shall be done without cost orexpense to the Grantor and shall remain the property of theGrantee and subject to the terms of paragraphs 10 and 14 may beremoved or otherwise disposed of by the Grantee at any time;provided, that the removal shall be accomplished with minimumdisturbance to the easement area which shall be restored to itsoriginal condition, or as close thereto as possible, within areasonable time after removal.

4. Upon completion of any work performed in or uponthe easement area, the Grantee shall remove therefrom allequipment and unused or surplus materials, if any, and shallleave the easement area in a clean and sanitary conditionsatisfactory to the Grantor.

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5. Throughout the term of this easement (unlesssooner abandoned or otherwise terminafced herein) this easementshall run with the land and shall inure fco the benefit: of the

real property described as tax map key no. (4) 4-1-011:001,provided however, that the Grantee shall carry the requiredliability insurance covering the easement area and comply withall other terms and conditions as provided herein, and that the

Granfcee, or authorized representafcive of the Grantee's estate,when this easement is sold, assigned, conveyed, or otherwisetransferred, shall notify the Grantee's successors or assigns ofthe insurance requirement in writing, separate and apart fromthis easement document.

6. The Grantee shall keep the easement area and the

improvements thereon in a safe, clean, sanitary, and orderlycondition, and shall not make, permit or suffer, any waste,strip, spoil, nuisance or unlawful, improper, or offensive use ofthe easement area.

7. The Grantee covenants, for itself, its successorsand assigns, that the use and enjoyment of the land herein

granted shall not be in support of any policy which discriminatesagainst anyone based upon race, creed, sex, color, nationalorigin, religion, marital status, familial status, ancestry,physical handicap, disability, age or HIV (human immunodeficiencyvirus) infection.

8. The Grantee, in the exercise of the rights grantedherein, shall comply with all of the requirements of the federal,state, and county authorities and shall observe all countyordinances and state and federal laws, rules and regulations, nowin force or which may hereinafter be in force.

9. These easement rights shall cease and terminate,and the easement area shall automatically be forfeited to theGrantor, wifchout any action on the part of the Granfcor, in fcheevent of non-use or abandonment by the Grantee of the easement

area, or any portion thereof, for a consecutive period of one (1)year.

10. The Grantee shall, at the end of the term or other

sooner termination of this easement, peaceably deliver unto theGrantor possession of the premises, together with allimprovements existing or constructed thereon or Grantee shallremove such improvements and shall restore the premises t-o theiroriginal state, or as close thereto as possible, within areasonable time and at the expense of the Grantee. If theGrantee does not remove fche improvements or restore the premises

•H6464 I .riOC /•"

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t-o the satisfaction of the Grantor, the Grantor may effect such

action and the Grantee agrees to pay all costs and expenses forsuch acfcion. Furthermore, upon the expiration, termination, orrevocation of this easement, should the Grantee fail to removeany and all of Grantee's personal property from the premises,after notice thereof, the Grantor may remove any and all ofGrantee's personal property from the premises, and either deemthe property abandoned and dispose of the property or place theproperty in storage at the cost and expense of Grantee and theGrantee does agree to pay all costs and expenses for disposal,removal, or storage of the personal property. This provisionshall survive the termination of the easement.

11. The Grantee shall procure and maintain, at its owncost and expense, in full force and effect throughout the term ofthis easement, comprehensive general liability insurance, or itsequivalent, with an insurance company or companies licensed orauthorized to do business in the State of Hawaii with an AM Bestrating of not less than "A-" or other comparable and equivalent

industry rating, in an amount of at least $1,000,000.00 for eachoccurrence and $2,000,000.00 aggregate, and with coverage termsacceptable to the Chairperson of the Board of Land and NaturalResources. The policy or policies of insurance shall name theStafce of Hawaii as an additional insured and a copy shall befiled with fche Sfcate of Hawaii, Department of Land and NaturalResources. The insurance shall cover the entire easement area,including all buildings, improvements, and grounds and allroadways or sidewalks on or adjacent to the easement in the useor control of the Grantee.

The Grantee, prior to entry and use of the easementarea or within fifteen (15) days after the effective date of thiseasement, whichever is sooner, shall furnish the Grantor with acertificate(s) showing the policy(s) to be initially in force,keep the certificate(s) on deposit during the entire easementterm, and furnish a like certificate(s) upon each renewal of thepolicy(s). This insurance shall not be cancelled, limited inscope of coverage, or nonrenewed until after thirty (30) days

written nofcice has been given to the Grantor. The Grantor may atany time require the Grantee to provide Grantor wifch copies ofthe insurance policy(s) that are or were in effect during theeasement period.

The Grantor shall retain the right afc any time toreview the coverage, form, and amount of the insurance requiredby this easement. If, in the opinion of the Grantor, theinsurance provisions in this easement do not provide adequate

protection for the Grantor, the Grantor may require Granfcee to

446464_1.DOC /-" \.

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obtain insurance sufficient in coverage, form, and amount: toprovide adequate protection. The Granfcor's requirements shall bereasonable bufc shall be designed to assure protection for andagainst fche kind and extent of the risks which exist at the timea change in insurance is required. The Grantor shall notifyGrantee in writing of changes in the insurance requirements and

Grantee shall deposit copies of acceptable insurance policy(s) orcertificate(s) thereof, with the Grantor incorporating thechanges within thirty (30) days after receipt of fche notice.

The procuring of the required policy (s) of insuranceshall not be construed to limit Grantee's liability under thiseasement nor to release or relieve fche Grantee of theindemnification provisions and requirements of this easement.Notwithstanding the policy(s) of insurance, Grantee shall beobligated for the full and total amount of any damage, injury, orloss caused by Grantee's negligence or neglect connected withfchls easement.

It is agreed that; any insurance maintained by theGrantor will apply in excess of, and not contribute with,insurance provided by Grantee's policy.

12. Grantor reserves the right to withdraw the

easement for public use or purposes, at any time during theterm of this easement upon the giving of reasonable notice toGrantee. Upon withdrawal of the easement, Grantor shall returnto Granfcee a portion of the one-time payment described inparagraph 1. For purposes of determining the amount to bereturned to the Grantee, the term "net payment" shall mean the

one-time payment described in paragraph 1 reduced by any non-refundable portion of the one-time payment, if any, thatGrantor was required by statute fco pay to any other entity orbody. The amount returned to Granfcee shall be the net paymentprorafced for the unused term of the easement.

13. The Grantee shall not mortgage, hypothecate, orpledge the premises, any portion, or any interest in thiseasement without the prior written approval of the Chairperson ofthe Board of Land and Natural Resources and any mortgage,hypothecation, or pledge without the approval shall be null andvoid.

14, Time is of the essence in this agreement and ifChe Grantee shall abandon the premises, or if this easement andpremises shall be attached or taken by operation of law, or ifany assignment is made of the Grantee's property for the benefitof creditors, or if Grantee shall fail to observe and perform any

446464 1.DOC

6 ~ / PREUM. APPIt'D. \Oeportmant of ika jTO?

of the covenants, terms, and conditions contained in thiseasement and on its part fco be observed and performed, and thisfailure shall continue for a period of more than sixty (60)calendar days after delivery by the Grantor of a written noticeof breach or default, by personal service, registered mail orcertified mail to the Grantee at ifca last known address and to

each morfcgagee or holder of record having a securifcy interest inthe premises, the Grantor may, subject to the provisions ofsection 171-21, Hawaii Revised Statutes, at once re-enter the

premises, or any part, and upon or without the entry, at itsoption, terminate this easement without prejudice to any otherremedy or right of action for any preceding or other breach ofcontract; and in the event of termination, at the option ofGrantor, all improvements shall remain and become the properfcy ofthe Grantor or shall be removed by Grantee.

15. In the event the Grantor seeks to forfeit the

privilege, interest, or estate created by this easemenfc, eachrecorded holder of a security interest may, at its option, cureor remedy fche default or breach within sixty (60) calendar days,from the date of receipt of the Grantor's notice, or within anadditional period allowed by Grantor for good cause, and add thecost to the mortgage debt and the lien of the mortgage. Uponfailure of the holder to exercise its option, the Grantor may:(a) pay to the holder from any moneys at its disposal, includingfche special land and development: fund, the amount of fche mortgage

debt, together with interest and penalties, and secure anassignment; of the debt and mortgage from the holder or ifownership of the privilege, interest, or estate shall have vesfcedin the holder by way of foreclosure, or action in lieu thereof,fche Grantor shall be entitled to the conveyance of the privilege,interest, or estate upon payment to the holder of the amount ofthe mortgage debt, including interest and penalties, and allreasonable expenses incurred by the holder in connection with the

foreclosure and preservation of its security interest, lessappropriate credits, including income received from the

privilege, interest, or estate subsequent to the foreclosure; or(b) if fche property cannot be reasonably reassigned without lossto the Sfcate, then terminate the outstanding privilege, interest,or esfcafce without prejudice to any other right or remedy for anypreceding or other breach or default and use its besfc efforts toredispose of the affected land to a qualified and responsibleperson free and clear of the mortgage and the debt secured;

provided that a reasonable delay by the Grantor in instituting orprosecuting its rights or remedies shall not operate as a waiver

of these rights or to deprive it of a remedy when it may stillotherwise hope to resolve the problems created by the breach ordefault. The proceeds of any redisposition shall be applied,

446464 1.DOC

-7-

PI'ft.lM AW>T>

Oepartmanl of Iha

Atloinoy Cxnaftrf

\

first, to reimburse the Granfcor for costs and expenses inconnecfcion with the redisposition; second, to discharge in full

any unpaid purchase price or other indebtedness owing the Grantor

in connection with the privilege, interest, or estate terminated;third, to the mortgagee to the extent of the value received bythe State upon redisposition which exceeds the fair market valueof the land as previously determined by the State's appraiser;

and fourth, to the owner of Lhe privilege, interest, or estate.

16. In case the Grantor shall, without any fault onits part, be made a party fco any litigation commenced by oragainst the Grantee as a result of this granfc of non-exclusive

easement (other than condemnation proceedings) , fche Grantee shallpay all costs, including reasonable attorney's fees and expensesincurred by or imposed on the Grantor; furthermore, the Granteeshall pay all cosfcs, including reasonable attorney's fees andexpenses, which may be incurred by or paid by Lhe Grantor inenforcing the covenants and conditions of this granfc ofnon exclusive easement, or in the collection of delinquentrental, fees, caxes, and any and all other applicable chargesattributed Eo said easement area.

17. The Grantee shall not cause or permit the escape,disposal or release of any hazardous materials except aspermitted by law. Grantee shall not allow the storage or use ofsuch materials in any manner not sanctioned by law or by thehighest standards prevailing in the industry for the storage anduse of such materials, nor allow to be brought onto the easementarea any such materials except to use in the ordinary course ofGrantee's business/ and fchen only after written notice is givento Grantor of the identity of such materials and upon Grantor'sconsent which consent may be withheld at Grantor's sole andabsolute discretion. If any lender or governmental agency shallever require testing to ascertain whether or not there has beenany release of hazardous materials by Grantee, then the Granteeshall be responsible for the reasonable costs thereof. Inaddition, Grantee shall execute affidavits, representations andthe like from time to time at Grantor's request concerningGranfcee's best knowledge and belief regarding the presence of

hazardous materials on the easement area placed or released byGrantee.

The Grantee agrees to indemnify, defend, and hold

Grantor harmless, from any damages and claims resulting from therelease of hazardous materials on the easement area occurringwhile Grantee is in possession, or elsewhere if caused by Granteeor persons acting under Grantee. These covenants shall survivethe expiration or earlier termination of this easement.

44S464_1.DOC /^ \

-8- / \PREltM AffffD.

Oepartm<ant of thaAllomw Ganafol^

./

For fche purpose of this easement: "hazardous material"

shall mean any pollutant, toxic substance, hazardous waste,hazardous material, hazardous substance, or oil as defined in orpursuant to the Resource Conservafcion and Recovery Act, as

amended, the Comprehensive Environmental Response, Compensation,and Liability Act, as amended, the Federal Clean Water Act, or

any ofcher federal, state, or local environmental law, regulation,ordinance, rule, or bylaw, whether existing as of the datehereof, previously enforced, or subsequently enacted.

18. The easement area shall not be used at any time by

the Granfcee, its guests or invitees for parking purposes.

19. The Grantee shall not consfcruct, place or maintainany building or structure over or upon the easement area, exceptfor the purposes described in this grant.

20. The Grantee shall at all times during the term ofthis easement keep trim all vegetation growing wifchin, over, oronto the easement area so that it does not present a threat topublic safety by creating or contributing to roadway, waterway,or pedestrian obstruction, visual obstruction to operators ofvehicles, fire hazards, or interference with or downing of powerlines.

21. Should future development necessitate a relocationof the easement granted herein, or any portion thereof, therelocation shall be accomplished at the Grantee's own cost and

expense; provided, however, that if other lands of the Grantorare available, the Grantor will grant to the Grantee withoutpayment of any money, a substitute easement of similar widthwithin the reasonable vicinity of the original alignment, whichsubstitufce easement shall be subject to the same terms andconditions as that herein granted and as required by law.

22. The Grantee shall comply with all applicablefederal and state environmental impact regulations.

23. The Grantee shall maintain and employ debris,

pollution and contamination control measures, safeguards andtechniques to prevent debris, pollution or contamination to the

ocean waters, streams or waterways resulting from the Grantee's,its invitee's and its agent's use, maintenance, repair andoperation of the easement area, and shall take immediatecorrective action in the event of such pollution or contaminationto immediately remove the cause of such pollution or

contamination, and shall immediately clean the easement area and

^' ^446464_.1.DOC

-9-PREIIM. AFPR D

Oepurlmunl of |haAtloi noy G-tnarcd":7

its surrounding waters of such pollutant or contaminant andrestore to bhe Grantor's satisfaction the area affecfced by suchpollution or contamination, all at the Grantee's own cost and

expense.

IN WITNESS WHEREOF, the STATE OF HAWAII, by its Boardof Land and Natural Resources, has caused the seal of theDepartment ot Land and Natural Resources to be hereunfco affixedand the parties hereto have caused this Indenture to be executed

as of the day, month, and year first above written.

STATE OF HAWAII

Approved by the Board ofLand and Natural Resourcesat its meeting held onJune 10, 2010.

APPROVED AS TO FORM:

'A. MORRIS

Deputy Attorney General

Dated: 2-7-^K

By.

^^^^-^/</

WILLIAM J*. Al£A, JR.

ChairpersonBoard of Land and

Natural Resources

/} i' U // r-.'')'^ML C '^'..'

GRANTOR

G_(NDALL C. ROE

^s^/'^ft—-^JILDA'V. LOOMXS

GRANTEE

446-164 l.COC

-10-

STATE OF HAWAI'ISURVEY DIVISION

DEFT. OF ACCOUNTING AND GENERAL SERVICESHONOLULU

C.S.F.No. 25,Q20 December 6,2010

NON-EXCLUSIVE ACCESS EASEMENT

Wailua, Kawaihau, Kauai, Hawaii

Being a portion of the Government (Crown) Land ofWailua.

Beginning at the east comer of this easement, the coordinates of said point

of beginning referred to Government Survey Triangulation Station "NONOU" being

806.42 feet South and 1931.83 feet East, thence running by azimuths measured clockwise

from True South;-

1. 28" 00' 57.00 feet along Grant 12027 to Kenneth T. andNora S. S. Tada;

2, 166° 49' 10.63 feet along fhe remainder of the Government(Crown) Land ofWailua;

3. 196° 28' 50.01 feet along the remaiader of the GovemmeDt(Crown) Land ofWailua;

66A'

FRfllM APPR'DDaporlmBnt crf ftwAllornoy Genaral

6S A S9

C.S.F. No. 25,020

4. 298° 00' 17.00 feet along the remainder of the Government (Crown)Land ofWailua to the pomt of beginning andcontaining an AREAOP 616 SQUARE FEET.

SURVEY DIVISIONDEPARTMENT OF ACCOUNTING AND GENERAL SERVICES

STATE OF HAWAII

By: ^U^^^u^Glenn J. KodaaiLand Surveyor ry

Compiled from map and desc. fum. byWagner Engineering Services, Inc. Said mapand desc, have beea examined and checked

as to form and mathematical correctness but

not on the ground by the Survey Division.

'•CtlM APPR'O

Ci*t*°rtm«nl of thaAflomoy Gananri

-2-

0^^°^^A!cr^L\

^0'^^

^iS^^/•s?/ Io" ' \ .: '? ^

^^̂ K<0

^'' ^

FREIIM Af-Pg'O

NON-EXCLUSIVE ACCESS EASEMENT l^X^";

Wailua, Kawaihau, Kauai, Hawaii

Scale; 1 inch = 40 feet

JOB K-34fl(t0)C. BK.

EXHierr "B"

TAX MAP 4-t-flBi For 54

C.S.F. NO, 25,020

SURVEY DMSIONDEPARTMENT OF ACCOUNTING AND GENERAL SERVICES

STATC"6F~HAWAir DM Cwxmbst 6. 2010

^70

(" [ • • ;''


DIVISION OF LAND MANAGEMENT

REVOCABLE PERMIT NO. S- 6892

KNOW ALL MEN BY THESE PRESENTS;

THAT, effective the 1st day of .N^mbe^_ , 1993 , hereafter

FRANCES C. MADRID and SAMMIE L. OTNSCHELcalled the" PERMITTEE", whose business andmailing'address i's'

KAPAA, HI 96746

is permitted to enter and occupy, on a month-to-month basis onTy7that certain parcel of Government land (and any improvementslocated thereupon) situate at _Lot 2, Block R, Kapaa Town Locs, Kapaa^

Kawaihau (Puna) Kauai TMK: 4-5-08U1.

as indicated on the map attached hereto, if any, and made a parthereof, containing an approximate area of 7,175 sq. ft. , whichparcel is hereinafter referred to as the "PREMISES".

THIS PERMIT IS GRANTED UNDER THE FOLLOWING CONDITIONS;

A. The Permittee shall;

1. Occupy and use the Premises for the followingspecified purposes onlys

Home Garden

2. Pay^ at the Office of the Department of Land andNatural Resources, Honolulu, Oahu, or at the officeof its Land Agent on the Island where the Premisesare located, the sum of THIRTEEN AND NO/100 DOLLARS—

($13.00) DUE AND PAYABLE ON THE FIRST OF EACH AND EVERY MONTHCOMMENCING NOVEMBER 1, 1993.

The interest rate on any and all unpaid or delin-quent rentals shall be at one per cent (1%) permonth plus a service charge of FIFTY AND N0/100DOLLARS ($50.00) per month for each month ofdelinquency.

3. Upon execution of this Permit, deposit with theBoard of Land and Natural Resources, hereinaftercalled the "Board", the sum of $26.00 _ assecurity for the faithful performance of all ofthese terms and conditions. The whole or portion

EXHIBIT'

of the deposit will be returned to the Pemltteeupon termination of this Permit, but only after allof the terms and conditions of the Permit have beenobserved and performed to the satisfaction of therepresentatives of the Department of Land andNatural Resources.

4. At the Pennittee's own cost and expense,'keep thegovernment-ovned improvements located on thePremises insured against losa by fire and otherhazards, casualties and contingencies, for the fullinsurable value of those improvements. Thepolicies shall name the State of Hawaii as anadditional insured and shall be filed with theBoard. In the event of loss, damage, ordestruction of those improvements, the Board shallretain from the proceeds of the policies thoseamounts it deems necessary to cover the loss,damage, or destruction of the government-ownedimprovements and the balance of those proceeds, ifany, shall be delivered to the Permittee.

5. Give the Board twenty-five (25) days notice, inwriting, before vacating the Premises.

6. If a holdover lessee or licensee, pays all realproperty taxes, which shall be assessed against thePremises froa the date fit this Permit. Inaddition, a Permitfcee, not a holdover lessee orlicensee, who has occupied the Premises forcommercial purposes for a continued period of oneyear or more, shall pay the real property taxesassessed against the Premises after the first yearof the Permit as provided in Section 246-36(1) (D),Hawaii Revised Statutes.

7. Observe and comply with all laws, ordinances, rulesand regulations of the federal, state, municipal,or county governments affecting the Premises orimprovements.

8. Repair and maintain all buildings or otherimprovements now or hereafter on the Premises.

9. Obtain the prior written consent of the Boardbefore making any major improvements.

10. Keep the Premises and improvements in a clean,sanitary, and orderly condition.

11. Pay, when due, all payments for water and other

-2-

utilities, and whatever charges for the collectionof garbage that nay be levied.

12. Not make, permit, or suffers, any waste, strip,spoil, nuisance or unlawful, improper or offensiveuse of the Premises.

13. At all times with respect to the Premises use duecare for public safety and agrees to indemnify,defend, and hold harmless the State of Hawaii, itsofficers, agents, and employees from and againstall claims or demands for damage, including claimsfor property damage, personal injury or death,arising on or about the Premises, or by any fire orexplosion thereon, or growing out of, or caused byany failure on the part of the Penaittee tomaintain the Premises in accordance with the termsand conditions of this Permit.

14. Procure, at its own cost and expense, and maintainduring the entire period of this Permit, a policyor policies of commercial general liabilityinsurance, in an amount acceptable to theChairperson, insuring the State of Hawaii and thePermittee against all claims for personal injury,death and property damage. The policy or policiesshall cover the entire Premises, including allbuildings, improvements and grounds and allroadways or sidewalks on or adjacent to thepremises in the control or use of the Permittee.The Permittee shall furnish the State with acertificate showing the policy to be initially inforce and shall furnish a like certificate uponeach renewal of the policy? each certificate tocontain or be accompanied by an assurance of theinsurer to notify the State of any intention tocancel any policy sixty (60) days prior to actualcancellation. The procuring of this policy shallnot release or relieve the Permittee of itsresponsibility under this Permit as set forthherein or limit the amount of its liability underthis Permit.

B. Additional Conditions?

1. The Board may revoke this Permit for any reasonwhatsoever, upon written notice to the Penaittee atleast thirty (30) days prior to the revocation;provided, however, that in the event payment ofrental is delinquent for a period of ten (10) dayBor more, this Permit may be revoked upon written

-3-

notice to the Permittee at least five (5) businessdays prior to the revocation.

2. If the Permittee does not vacate the Premises uponthe revocation of the Permit by the Board, thePermittee shall pay to the State liquidated damagesat the daily, rate of $ 3.00 for each day, orportion thereof, the Penaittee remains on thePremises over the date of revocation. The paymentis in addition to any other rights or remedies theBoard may be entitled to pursue for breach ofcontract, or for illegal occupancy, including theright to evict the Permittee without court action,and the cost thereof to be paid by the Penaittee.

3. If the Permittee fails to vacate the Premises uponthe revocation of the Permit, the Board, its agentsand/or representatives may enter upon the Premisesand remove and dispose of all vehicles, equipment,materials, and/or any personal property remainingon the Premises, and the Pennittee agrees to payfor all costs and expenses of removal anddisposition.

4 . the Board may at any time increase or decrease themonthly rental by written notice at least 30days prior to the date of change of rent.

5. Any major improvements, including but not limitedto buildings and fences, erected on or moved ontothe Premises by the Penait-fcee shall remain theproperty of the Permitfcee and th® Permittee shallhave the right, prior to the termination of thisPermit, or within an additional period the Board inits discretion may allow, to remove the improve-ments from the Premises; provided, however, that inthe event the Pennittee shall fail to remove theimprovements within 30 days after written noticeto remove has been sent, the Board aay elect toretain the improvements or may remove the same andcharge the cost of removal and storage, if any, tothe Pennittee.

6. The Board reserves the right for itself, itsagents, and/or representatives to enter or crossany portion of the premises at any time in theperformance of its duties.

7. This Permit or any rights hereunder shall not besold, assigned, conveyed, leased, mortgaged, orotherwise transferred or disposed of.

-4-

8. It is understood that the Permittee has inspectedthe Premises and knows the conditions thereof andfully assumes all risks incident to its use.

9. The acceptance of rent by the Board shall not bedeemed a waiver of any breach by the Pennittee ofany term, covenant or condition of the Permit norof the Board's right to declare and enforce aforfeiture for any breach,, and the failure of theBoard to insist upon strict performance of anyterm, covenant or condition, or to exercise anyoption herein conferred, in any one or moreinstances, shall not be construed as a waiver orrelinquishment of any term, covenant, condition, oroption.

10. The term of this month-to-month permit beyond oneyear from date of issuance is subject to the priorapproval of the Board.

11. The use and enjoyment of the Premises shall not bein support of any policy which discriminatesagainst anyone based upon race, creed, color, sex,national origin, or a physical handicap.

12. Any and all disputes and/or questions arising underthis Permit shall be referred to the Chairperson ofthe Board and his determination of these disputesor questions shall be final and binding on theparties.

13. The premises shall be used for home gardening purposes only.

No subleasing is allowed.

14. The land is rented "as is" and the permitCee is aware of its

condition.

.5-

Unless text indicates otherwise, the use of anygender shall include all genders, and if the Peraittee includesmore than one person, the singular shall signify the plural, andthis Permit shall bind the persons, and each of them jointly andseverally.

DATED; _^QnWf^_^_, 19_^_.

OF HAWAII

»C^^L,,^<^te

?erson and MemberiBoard of Land and Natural

Resources

Approved by the Boardat its meeting held onOctober 8, 1993 (Item F-6)

PERMITTEE:

"AA^^Ji^ <<~-FRANCES C. MADRID

%/^<^'SAMMIE L. WMSOh&L

-6-

STATE OF HAWAII

COUNTY OF) SS,

this ^^_ day of ^-^^0" this _^^1 ' day of </%^ <^ /- , 19^^, before mepersonally appeared Jânês__C__MadiJ^_^nd_ânmj^^__Wy^^

, to me known to be theperson(s) described in and who executed the foregoing instrumentand acknowledged to me that the^. executed the same as thei^ free actand deed.

A5î^^^LNotary Public, State of Hawaii

My commission expires'-J^/_<^-'__

STATE OF HAWAII

COUNTY OF) ss,

On thisappeared.

day of 19 before meand

., to me personally known, whobeing by me duly sworn, did say that they are the

j&nd , ,respectively of ^_ ,a Hawaii corporation, and that the seal affixed to the foregoinginstrument is the corporate seal of said corporation, and that saidinstrument was signed and sealed on behalf of said corporation byauthority of its Board of Directors, and the said

andacknowledged said instrument to be the free act and deed of saidcorporation.

Notary Public, State of Hawaii

My commission expires;.

NI'.II.AHIiHCHOMlllr.dOVIKNOHO) tlAWAl)

^•WA^

^<.,.°.F.^^,fiBh"•^?5;.-"

STATE OF HAWAIIDKPARTMKNT OF LAND AND NATURAL RKSODRC K,S

I'OSI 01;l'K'l:130X(i21

HONOLULU, HAWAII %KIW

M;irch2K,2ni4

Wtl.l,IAMJ.AII.A,.H>.t'llAltli'tHSflM

}«lMttU>f>^N)>AS)>NAIt HA! ft! Mil lt( t S"MMLS.SIHHOM WAiti( HI Mlt'KI 1 MAHAdlMtHt

JESSF.K.SOUKIHRMtliri tV

WII.I.IAMM. 1,\M)>nlniYHi!tn fiisi WAn«

\tH AIK tit ^(11 Itl ISIMjANIIfH I AM UK HI AllltNnil At *)) <tlMV»VAHI IS;)HVVAIUIKIW»U«1 MAHAlitMIHftVAIHtHAHIH ((ASIA! lANlt.SiNAWtniisinmmNKmf i MI MI

INIlWIHIINf.HHtMltV .\M)*W!IJl| 111IMtlttH i-IUKKlVAIfUN

^NHKI.SHtV'l fIIMhfhSRIH1 A«l>

tlAlt 1'AltkS

EXEMPTION NOTIFICATIONregsirding the prcpariition of;in environmenlal n.sses.smenl pursiiiint to Chiipter 343, IIRS aiu! Clidpter

200,11 AR

Project Title:

Project / Reference No.

Project Location:

Project Description:

Chap. 343 Triggcr(s)

Exemption Class No.and Dcycriplion:

Consulted Parties:

Recommendation:

Set Aside to County ulKauai for AHbnlable Housing

PSF 14KD-004

Various lots in Wailua Houselots, K.;ipaa, Hanapepe, Waimea,

Kauai; Tax Map Keys; (4) 4-1-011:016,020, (4) 4-1-009:054, (4)4-5-008:009,012, (4) 4-5-011:007, (4) 1-9-009:006,007,008,009,(4) 1-9-010:003, and (4) 1-6-004:003

Set Aside to County ofKauai for Affordable Housing

Use of State Land

In accordance with Hawaii Administrative Rule Sections 1 l-200-8(a)(l)& (4) and the Exemption List for the Department of Land and NaturalResources approved by the Environmental Council and dated December

4, 1991, the subject request is exempt from the preparation of anenvironmental assessment pursuant to Exemption Class No. 1, that states

"Operations, repairs or maintenance of existing structures, facilities,

equipment, or topographical features, involving negligible or noexpansion or change of use beyond that previously existing" and Class

No. 4, that states "Minor alteration in the conditions of land, water, orvegetation."

DLNR - Aquatic Resources, Forestry & Wildlife, HistoricPreservation; and State Parks, Department of Health; Departmentof Hawaiian Home Lands, County ofKauai Planning and PublicWorks, and Office of Hawaiian Affairs

It is anticipated this project will probably have minimal or no significanteffect on the environmental and is presumed to be exempt from the

preparation of an environmental assessment.

M^r MEXHIBIT"^

/1/” _________-

Date

Will IAM.I..UI A. HI

M-'II AHilK'noMlnr .)>'.."1.?-:.";'-"-'?'».'''.fill\l HMtUKil lt^\\A)» t^A.-'o ^UGO •*••''/<

'*.''

r^"<- O..F X.,.'.. in nun UM:-1^--"--'-.'?'»'•'. i...mn.n»

if^'fiAI't I'hl^t

,.^^ ,J-"^,",-,,,''"yy%; '"^"'^"IttllllM. \htHH I \>s tH( (<1 Mltlt.

Ill It! \1 111UlSMI^H^ » MfltiltSfli tll I Is^KMil t.H'

STATIC OP HAWAII ,,»...,.,,u,^;^;^;s,.,,,,,,,>,,.,

DKI'AK'I'MIWI' Ol'' 1,ANI) AND NA'I'IIRAI, RliSOUItCIC.S u"s";,;i!i';*n^.'i *.;';;'„";S'lAII' III.SIOKK't'KI'SI'KVAIIONDIVISION ' """""" "' "'i"^'»""" ""*""""

Mil KAMOKII AHOI'I 1-VAKI), KOOM .S.'i'i •i<in"»i.'.

KAI'OI I 1. HAWAII ')(.7(17

l;ubm;iry 21, 20 M

M.s. l.ydi.i Monkiiw.i l.()(i NO' ?()14 ()()IK2IX-piirlmunl ol'I.iiml & NiiUn'iil Kc.sourcrs DOC NO' M02(i(:'()7

l,;ind Divi.snm Arcli;ici)li)^y

I'.O. Hox 62 I

Honolulu, lliiw.m {)hKW

I l|lllil.M.M()uk;l\\i'K(f.l).l\\;lll.l;,IH

SUB.IECT; Chnpfrr r>l!:-8 ;ind Niitionnt Ilisfuric I'rfscrvntion Ad (NIIPA) Sfcdoa 106 ItrvicwSc( Aside lo County of Kaua'i (or AHonlahlr HOUMIIK

Viirious Lots in Wsiiliiii IIousclots, Ksipii'ii, llitHiipCpe and Wiiinu'ii

Waiinca, llanapcpr, Wailua and Kiipii'si Ahupu;ilaKawaihau and Kona, District, Island ot Kiiua'i

•I'MK: (4) 1-6-004:003; 1-9-009:006 (hru 009; 1-9-010:003; 4-1-009:054; 4-1-011:016,020 and

4-5-008:009,012

Thank you for the opportunity to review the above referenced ruqucst for comnicnfs Ihal was received by our office

January 27, 2014, According to (lie information submiUcd to our office, (he applicant Kaua'i County Housing

Agency (KC'IIA) is requesting to have portions of government (Slate) lands situated at Wailua Houselols, Kapa'a,Hanapepe, and Waimea set aside for proposed affordable housing. KHCA is proposing to use the parcels to develop;m in-fill, single family affordable housing development. All of the parcels have been idenlified under HRS §171-49.7 as public lands suitable and available for residential development. Federal funding is provided in part by (lie

Unilcd Stales Deparlmenl of Agriculture (USDA) Rural Developinenl (RD). The proposed project is established as a

federal uiideriaking pursuant to 36 C'FR K00.16 (y), and is therefore subject to National Historic Preservalion ActSection 106 review.

TMK: (4) 1-6-004:003, Waimca

This parcel is located within Waiinea Town and totals 13, 539 square feet and is suitable for two proposed units. Theparcel is bounded by Ala Wai Road (Riverside Road) on the southeast and an earthen berm on the northwest bank of

Ihe Waimea River. Our records indicate ihnf nn archaeological inventory survey (AIS) was previously unnducfect ofthis parcel (Chaffec et al. 1994). No significunt surface or sub-surface historic properdus were identified during Ihe

survey, and SHPD previously concurred with a "no effect" determinalion for llie parcel (Log 12881, Dnu9410NM03). We have, received no new information regarding potential hisloric properties since our previous-determinalion. In addition, curren! salellitt: imagery indicutes this parcel has been subjected to mnjor grubbing and

grading. Therefore, we believe no historic properties will be affected by (lie proposed development of (wo units on

this parcel.

TMK: <4Y 1-9-009:006,007^008 & 009, HanapEpg HousclutsThese four parcels are located along Puolo Road to the west and the Hanapepe River to the east, and lolals

approximately 26,887 square feel; each of the four parcels has been designated as suitable of one imit. Our records

indicate no archaeological inventory siirvey has been conducted, and no historic properties have been identifiedwithin the subject parcels However, the proposed project area is within 70 meters of two Hanapepe burial sites(SIHP 50-30-09-704 and 705). Therefore SHPD requests more information in the form of a thorough and good

faith effort to identify historic properties within the area of potential effect (APE). The identification effort shouldinclude consultation with Native Hawaiian Organizations (NHO) pursuant to 36 CFR Part Mt0.4(a) (4). For the levelof effort identified in 36 CFR 800.4(b)(l), we recommend field survey for areas of proposed ground disturbance,

and background research for areas of potential visual impacts in addition io consultation wilh NHO. We request thata report of survey findings be prepared and submitted to SHPD for review and approval, pursuant to The Secretary

EXHIBIT"^."

M,s. Lyitiii Morik.iwa

l;cbm;iry21,2()14

Pnyr 2<-' >

ol'llic Inlcrior'K Sliiiulin'tl.s' fur ldcnlific;ilion iind Haw;ni Adinini.slr.itivu Rule t?13-27(>. 11'ncuiluil, ;ippropri;ilc

niilifiilion pl.in.s will need lo bu iippnivcd ;ni(l iniplcmcnlcd piior lo coniincncuniunl ol'con.strncliDH nctivilics.

We look Ibrw.u'd to Ihe opporlnnity lo consiill on Ihc signillciint-c uv;iln;>lion,s |36 ('!•'!< I'iirl K()().4(c)|, iis.sc.s.smunl of

lirojucl cflucls 136 CP'K Piirl K00.5| ;nul il'nucc.s.s.ify, rcsulutioi) ofiKlvcrsc ul'fucls |:16 ('l''R P;ut K()(».h| 101 ;iny silus

lociilcd wilhin the Al'li. 3A CI''R P;ul KOO iil.sn inandutc.s tluit N110 ;iru provklutl Ihu Dpportnnily to consull on iill i)l'

(Iw.su plui.ses ol'lti.sloric pt-c.scrvdlion review procus.s.

•I'MK: (4) 1-9-(HO:(103, HHH;U)C|)C T(»wn l.ot.s

The proposud project piirccl is lociilcil willim Ihc llimiipcpc I own 1 ol.s, I'n.st Series, willi Piuilo R|);I(I liuiiijj; ;il lliuwc.stcrn end of Ihu [iropurly iind llie llan;ipepc River on tliu I'.iist. I'liu prnpurty L'onsih'l.s ol'sipiiroxiinnluly Id, 7()2

nquiiru fuel ;uul is Kiiiliihlu for one null Our iccoids indiciilc tliiil •in iircliiii-'ologiciil invcnlory survuy li;i.s bucn

coiiduclud oflhi.s piircul (Creed ul iil.lW4) .nut iicccplud by SHI>I5 (Log 10923. Doc No. 9402NM43). •1'ht; surveyitluntificd Ihree .signif'iciin) lii.storic pr()|)crlic.s, two hnriiil.s (SHIP .S()-30-09-7()4 iintl 705) ;ind ;i discondnuous L'ullurnlliiyur (S'ilc 706). 'I'lii; liuri.ils wurc ntunlilictl within unu mctci ol'tliu surliico, ;nnl tliu uulltir;il lnyur wii.s idcnlilictl nt

;ipproxiin;ilely 70 L'mb.s (35 inclies) below Ihc sinfiicc. Sile 706 is con.sidct'ed no longer .signilifiinl ;i.s ;ippro|irinleinroriHtition li;w been collcclctl. Tlic (wo buriiils iirc prcsurvcd in plucu within llic uxi.sting piircel. We lnive not

rcceivud nny new infunnalion rcgiirdmy llii.s parcel; tliereforc we believe Ihe proposed cunslniclion of;i resicienti!iltinil on ihi.s piirccl will liiivc ;in advt'rsc L'n'rcl oil llic idcnlinud historic properties. SIIPD iut|ucs(s Ihat ii |irojcctspecilic burial ti-fiKinrnt plan be uomplclcd ;ind nubmhlccl lo ,SI)PD for approval nncl lo file K.iuni-Niihiiti l.slanclsBuriiil C'ouncil for (lelcrminalion iind rcctiminendiitiun.s. Id in.sure the prnlcction of llic known huriiil ,sile,s Jn (he

project iiiea. In iiddilion, ,1 project .specific arcliiicological monitoring pl.m .should be implcnicnlcd to idcnlify (hemea.suru.s' that will be employed lu niinimi/.c the dainage of Ihis project on historic properties. Spccincally tlu.s planshould address how ihe known burial.s sites will be iivoidcd and how machinery will safely access ihu coiislruclionsite wilhout disfurbing the two identified burinl siles. The moniloring plan should be approved by our officepursuant to HAR §13-279 and (he Secretary of the Interior's standards prior to implementation We ulso recummendthat Native Hawaiian Organizations and other interested parties be part of the consultation process. .

TMK: (4) 4-1-009:054 and 4-1-011:016 & 020. WailuaThe proposed project parcels are located within the Wailua IIouselo(s. The properly located within TMK: (4) 4-1-

009:054 consists of 26, 571 square feet and is' subject to an existing non exclusive access easement of 616 squarefeet from the neighboring residential property under GL S-6021. The property is bounded by Nounou Forest reserveto the east and Haleilio Road to the west. The subjecl parcel.s located within TMK: (4) 4-1-011:016 and 020 consisl

ofconsisls of 38,500 square feet and 22,749 square feet respectively, and are potenlially dividable into two lols wilh

ii potential maximum density of four units.

Our records indicate no historic properties have been idenlified within the above parcels. Our records also indicatethat SHPD made a previous determination of "no effect" to significant historic properties for the property located

within TMK: (4) 4-1-009:054 (Log. 2006.0854, Doc 0603NM39); mid "no effect" for the property located withinTMK: (4) 4-1-01 i: 016 & 020 (Log 19576, Doc 9705NM19, Log 19575, Doc 9705NMIK). We have no newinformation for these purcels; therefore, we believe no historic properties will be affected by tlie proposed

development at these three, locations.

TMK: (4) 4-5-008: 009 & 012 and 4-5-011:007. Kapa'a makaj

The proposed project parcels are located within Kapii'a Town Lots on Inia Street. I'he parcels located at FMK: (4)4-5-008:009 and 012 consist of 7,560 square feet each; both are suitable for one unit pur parcel, rhe parcel located

within TMK: (4) 4-5-011 :007 is 7, 8!0 square feel find is suitable for one unil. Of these three parcels, TMK (4) 5-8-009:012 is encumbered by revocable permit No. S-6892 lo Frances C. Madrid and Sammie L. Wunschel far "HomeGarden."

Our records indicate that numerous known historic properties are present in Kapa'a Town. Severdl archaeologicalreports have been conducted within Kapa'a Town in close proximity of the proposed projecl parcels, specificallyalong Inia Street and Kapa'a State Beach Park. These include two burial reports (Kawachi 1994 and Jourdane 1995);

four archaeologica! moniloring reporls (Creed el al. 1995, Callis 2000, Dega and Powell 2003, and Terry et al.2004); and two archaeological inventory survey reports (Bushnell et at. 2002, Dagher and Dega 2010). The resultsof the above reports indicate that a (olal of eleven burials (SIHP 50-30-08-626, 867, 871) and a cultural layer with

sub-surface features (Site 1849) have all been identified along Inia and Kauwila Streets. The cultural layer (Site

1849) tins been expanded to include Ulu Street located maiiku of Kuhio Highway, to the north along Lehua Street

Ms. Lydia Morikawa

Febmary21,2014Page 3

and Kukui Street, and down to Kapa'a Beach Park. The recorded area ofSile 1S49 extends into ull three of theproject area parcels in Kapa'a Town. The disposition of the identified burial sites is uncertuin at this time; it ispossible that at least two of the burials may be preserved in place within or adjacent (o Ihe boundaries of two project

area parcels. The above surveys and monitoring projects were located adjacent to the subject parcel.s, within publicroad right-of-ways; the findings indicate a high probability thai undocumented burials and subsurface culluraldeposits are present within the proposed construction areas.

We believe the proposed construclion of residential units on (he above parcels has the potential to adversely affectideniilted and unknown historic properties. Therefore SHPD requests more information in (he form ol'a ihuroughiind good faith effort to identify historic properties within the areii of potential effect (APE). The iilcntification effort

should include consultation with Native Hawaiian Organizations (NHO) pursuant to 36 CFR Part 800.4(a) (4). Forthe level of effort idenlified in 36 CFR X00.4(b)( I), we recommend field survey with subsurface testing for areas of

proposed ground disturbance, and background research for areas of potential visual impacts in addition toconsultation with NHO. We request that a report of survey findings be prepared and submitted to SHPD for reviewand approval, pursuant to The Secretary of the Interior's Standards for Identification and Hawaii AdministrativeRule (; 13-276. If needed, appropriate mitigation plans will need to be approved and implemented prior to

commencement of construction activities. We look forward to the opportunity to consull on the significanceevaluuiions [36 CFR Part 800.4(c)], assessment of project effects [36 CFR Par! 800.5] and if necessary, resolution ofadverse effects [36 CFR Part 800.6] for any sites located within the APE. 36 CFR Part 800 also mandates that NHO

are provided the opportunity (o consult on all oflhese phases of historic preservation review process.

Summary of RecommendationsIn summary, significant historic properties are present within Hanapepe, Wailua and Kapa'a Town and there is apotential for historic properties to be adversely affected by the proposed projects at these locations. We recommendthai the permits for the development of the following affordable housing units be deferred until the applicant hassubmitted the information as requested above and listed here for the following project locations:

1, TMK: (4) 1-9-009:006, 007, 008 & 009 - an archaeological inventory survey (AIS) report, prepared inaccordance with The Secretary of the Interior's Standards and Hawaii Administrative Rule (HAR) §13-276;

2. TMK: (4) 1-9-010:003 - a burial treatment plan prepared pursuant to HAR §13-300 and an archaeologicalmonitoring plan prepared pursuant to HAR §13-279 and The Secretary of the Interior's Standards; and

3. TMK (4) 4-5-008: 009 & 012 and 4-5-011:007 an archaeological inventory survey (AIS) report,prepared in accordance with The Secretary of the Interior's Standards and HAR §13-276.

Based on available information as noted above, we believe that no historic properties will be affected by (he

proposed construction in the following project locations

1. TMK: (4) 1-6-004:003 and2. TMK: (4) 4-1-009:054 and 4-1-011:016 & 020

Please contact Susan Lebo at (808) 692-8019 or Si!s;inAJt;k>a]i;iw;«L^yy if you have any questions or concerns

regarding this letter

/Theresa K. DonhamArchaeology Branch Chief

ec: Dale Cua (>iiina»;k,!ij;u;gi)v)

Marvin Mikasa (M:)]'-, in Lw^^.v^iYw^i.wY}

Bernard P. Carvalho, Jr. ^^^^^ Kamuela Cobb-AdamsMayor J^H^ESI^ Housing Director

Nadine K. NakamuraManaging Du-ector

KAUA'I COUNTY HOUSING AGENCYCounty ofK.aua'1, State ofHawai'i

Pi'ikoi Building 4444 Rice Street Suite 330 LThu'e Hawai-i 96766TEL (808) 241-4444 FAX (808) 241-5118

March 9, 2015

Ref.No.:14KD-004

MarvmMikasa, Kaua'i Dista-ict Lartd Agent

State ofHawai'i Department of Land and Natural ResourcesLand Division3060 'Eiwa Street, Room 208Lihu'e,Hawai'i 96766

Subject: Request for a Right of Entry to be Issued to the County ofKaua'i and its

Contractors) to Conduct Predevelopment Site Work for TMK: (4) 1-6-004:003;1-9-009:006,007,008,009; 1-9-010:003; 4-1-009:054; 4-1-011:016, 020;4-5-008:009,012,4-5-011:007

Dear Mr. Mikasa,

The Kaua'i County Housing Agency's is requesting the approval for a Right of Entry (ROE)to be issued to the County and our Contractor(s). The ROE will provide access to the subject parcels

to conduct surveys and analysis to meet the requirements of our Executive Order request. We intend

to commence work on these parcels in May 2015 and ask that we be granted a minimum one-yearperiod.

These parcels will be used to build affordable housing for the people ofKaua'i. If you have

any questions, please feel free to contact Kanani Fu at 241-4436.

Very truly yours,

KAMUELA COBB-ADAMSKaua'i County Housing Agency

An Equal Opportunity Employer EXHIBIT" 3"

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