1. NOV-14-2012 WED 08:55 AM KOBAYASHI SUGITA & GODA FAX NO. 808 539 8799 P. 01
W- 6.
KOBAYASHI SUGfTA& GODA, LLP
Attorneys at Law
November 14, 2012
VIA FAX; 808-232-2396
Ralph K. Makaiau
Kahuku Community Association
P.O. Box 333
Kahuku, Hawaii 96731
Re: Kahuku Village 5
Dear Mr. Makaiau:
I represent Continental Pacific LLC, the owner of the land at Kahuku Village 5. On
November 13,1 was provided with a copy of your agenda for your meeting on November 15. As
your agenda reflects a number of items related to Kahuku Village 5 I wanted to provide some
facts for your members' consideration.
tf anyone is interested in any further information about any of the matters discussed
below, I would be pleased to meet with them or to respond to any further questions in writing.
1. The Condominium Conversion of Approximately 50 Homes Is Complete
Continental Pacific now has the legal right to sell to the majority of the lessees at Kahuku
Village 5, their homesites as condominium units. The units will first be offered1 for sale to the.
current lessees and any remaining units will be made available to the general public.
2. Condemnation
I note that the Honolulu City Council's condemnation resolutions are on your agenda.
Of course, the City has the right to condemn land and to pay the landowner fair market value for
the land. We estimate the fair market value of each of the condominium units is between
$250,000 and $350,000. The City is completely within its rights if it chooses to condemn. CP's
only role at that point would be to assure that the court awards fair market value. The
determination of "fair market value" is made by the court and is completely fair.
3. Iwi
I incorrectly represented in court last week that the offers had already gone out. They will be going out shortly.
999 Bishop Street, Suite 2600, Honolulu, HI 96813 | Tel: 808-535-5700 | Fax: 808-535-5799 | www.ksglaw.com | jcg@ksglaw.com

2. NOV-14-2012 WED 08:55 AN KOBAYASHI SUGITA & GODA FAX NO. 808 539 8799 P. 02
Mr. Ralph K. Makaiau
November 14,2012
Page 2
Someone in the community complained to the State Historic Preservation Division
("SHPD") about iwi being dug up on the property. They turned out to be wrong: the bones they
saw were pig bones. However, in response to that incident, SHPD recommended (and CP
agreed) to hire an archaeologist who was present at all times any digging was taking place on
the property. The archaeologist found a single set of iwi in an area where no work was being
done.
The iwi were immediately reported to SHPD and they have at all times been handled in
complete accordance with the directions of SHPD. Someone in the community disturbed the
burial on multiple occasions, so SHPD instructed CP's archeologist to disinter the burial and
store it in a storage container until a reburial plan is approved. We are in that process now. In
cooperation with SHPD, CP is preparing a data recovery plan.
CP intends to continue to have the archaeologist present whenever CP does any digging
on the property. And the archaeologist will report anything to SHPD as appropriate.
4. Termination of Month-to-Month Leases
All of the lessees in Kahuku Village 5 are on month to month leases, l For its own
business reasons, CP has elected to exercise its right to terminate certain leases. It is and
always has been CP's intention to sell ali of the condominium units at Kahuku Village 5. It
continues to be CP's hope that all current lessees will be able to purchase their unit. In the
instance they are not able to do so, the unit will later be offered for sale to the general public at
a substantially higher price.
I hope that you will share this factual information with the persons who attend your
meeting on Thursday.
Very truly yours,
LEX R. SMITH
for
KOBAYASHI, SUGITA & GODA