Conceptual Design #3

Following the second presentation of our project to the Maui County Urban Review Board, we went back to the drawing board with a better perspective of the planning standards. Primarily there was specific concern about the scale of a six story building fronting Hana Highway. Questions were also raised about traffic management at the site and methods of providing better access. Several of the board members praised the new model presented by architect, Harrison Fagg.

Our model is impressive and remains on view at the Pharmacy at the Maui Medical Clinic. The development team is proud of the design and felt it conveyed the sanctuary theme we hope to create. However, practicality dictates incorporation of the reviewers' design suggestions. Our planners felt the imposing aspect of the model would have difficulty

gaining approval at the review level. This was our second design and it was so attractive and well received by prospective tenants that it was difficult to conceive changes that wouldn't detract from our ideal.

Architect Harrison Fagg conceptualized a 'stepped back' building as we debated whether to change our design or try to gain approval with our current proposal. The review board is highly influential and their recommendations were not oppressive so we undertook a revision which seems to answer the objections and still retains our scope and grandeur.

In fact, the development team and those tenants who have seen the new rendering prefer it to the second design.

In February GeoLabs Inc. completed our soils engineering survey to determine the base for the Medical Plaza and methods of construction. We also traveled to Oahu to work with the U.S. Army Corps of Army Engineers on possible wetland conditions and subsequent requirements of that agency. Officials of the Corps have conducted a site visit and reviewed numerous studies which have conflicting determinations. Our site has not been designated as a wetland but it does have residual issues which need to be addressed and there have been findings that need further investigation. Corps officials have stated that our location is "not the last of its kind, not unique in Hawaii, and of marginal value as a wetland if that." They assured us there were no fatal problems and that they would work with us to complete the permitting process. Since the creation of the Kahului drainage canals in the 1970s, there has been very little review of our site and adjacent parcels. U.S. Fish and Wildlife has expressed support for the project and requested removal of invasive species and enhancement of open space with native Aiea trees. No endangered plants or wildlife are present on our site. Xamanek Research continues to work on our archaeological study and 'Uncle Les' Kuloloio is preparing our cultural report. By March we will have completed studies and determined answers to several major concerns.

Two major construction firms have reviewed the current building plans and costs appear to be in line with our original estimations, allowing us to keep rents in the $4 per square foot range. To keep rents reasonable we need to build as much usable space as possible on the two and a

half acre site and still provide parking for at least 350 cars at a time.

News reports in November created a current of interest in the medical community. We have been approached by doctors from across the island and neighboring islands who are interested in reserving space. Most of the Maui Medical Clinic tenants have signed leasing reservations and those who haven't yet committed still indicate their interest. If you are a prospective tenant, please contact Pharmacist Les Krenk in the Maui Clinic Pharmacy or Dr. James Hansen also at the Maui Clinic for reservation forms and further information.

We are now opening up the Maui Medical Plaza for lease applications from interested parties outside of the current Maui Clinic and off-island.

Les and other tenants have presented a lease/purchase proposal which is being reviewed by our accountant and legal advisors for formal presentation at a meeting in April which will be announced soon. This idea has merit for the owner and tenants. As drafted it would allow rents to be applied against final purchase in five years.

In April we will begin working with tenants to plan leasehold improvements, utility requirements and floor locations. Harrison Fagg will be available to advise on various options and construction timing. He has constructed several medical buildings and brings great tried and true suggestions for everything from computer networks and flexible utilities to lighting and windows. We want to meet as many of your specific needs as possible in advance.

Although many cautions have been given by county officials and agencies involved with the building permit process, we still believe we can have the Maui Medical Plaza ready for occupancy

by November 2008 and encourage tenants to work with that date. If delays are encountered, and we know there will be obstacles, we can look for ways to speed construction or gain time on the end.

This month marks one year into the development process. We have assembled a team of local engineers, planners and professionals to work with Ben Brown and Harrison Fagg. We continue to have ongoing consultations with Maui County administrators and are encouraged by the response of officials. Jeff Hunt, the new planning director, received our team and presentation during his first month on the job and his remarks were very encouraging. Several of his suggestions for making the site more pedestrian compatible and view favorable are part of the current landscape design.

Our new building can be viewed on the website at: http://www.MauiMedicalPlaza.com. It sets back in steps from Hana Highway with just the first two floors fronting Hana Highway. At each two-story level we have promenades and roof gardens to break up the vertical appearance. Plantings and fountains provide a tropical look and there is ample use of lava and natural colors and textures. A waterfall accents the ground floor driveway area and traffic is designed to flow from the highway through the rear of the building with deceleration lanes in front to improve access. Hana Highway will be widened directly in front of the Medical Plaza in conjunction with DOT plans.

Nature trails along the sides of the Medical Plaza are designed to retain the natural environment of the area. Viewing areas and information kiosks about the Kanaha Pond, history of the area and native wildlife will be provided as well as parking and access for the general public and building tenants. Our plan calls for the entire site to be inundated

with palm trees and native vegetation. We have hundreds of mature palms standing by at a Hilo tree farm.

The Maui Medical Plaza is working its way through the Maui County and State of Hawaii development process. Our pace is level and controlled. There is only one way to do this and it is "the right way, the first time". When we can move quickly, we are prepared to do so but we are at the mercy of 'the system'. We are anxious to meet with anyone and everyone who has interest in our project. We continue to need the support of tenants, patients, and general community to complete this project.

Mahalo for your continued interest and support.

Ben Brown,
Bob McDaniel
and the entire
Development Team for
The Maui Medical Plaza at Kanaha