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HomeMy WebLinkAboutJuly52016SSDapplicationsPLANNING DEPARTMENT SHORELINE SETBACK APPLICATION FOR OFFICIAL USE ONLY: SSD 201 7 Acceptance Date: _. - (at.... Website Posting Date: - G Determination Date: f.y Plaraung Commission Date: Expiration Date: 7 Planner Assigned Instructions: File all information requested under Part A for processing the Determination of Applicability §8-27.1), including signature page. Fill out Parts A and B if you know, due to proximity of the shoreline, that your parcel will require a Certified Shoreline Survey. If you are proposing a permitted structure or subdivision within the shoreline setback area fill in Part C. For applications involving a variance, complete Part D. A licant Fnformation Applicant: DANNY ERRICO (Brigitte D'Annibale-Authorized Agent) Mailing Address: 5424 Weke Rd. Phone: (808) 6521498 Hanalei, HI 96714 Email: badart33@mac.com A HSEt's Status: (Check one) 1-✓-1 Owner of the Property L_I Lessee of the Property ❑✓ Authorized Agent Holder of at least 75% of the equitable and legal title) Lessee must have an unexpired and recorded lease of five (5) years or more from the date of filing of this application. If not, Owner(s) must provide a Letter of Authorization. Attach Letter of Authorization Transmittal Date: April 81 2016 Project Information (attach additional sheets, if necessary) County Zoning District: Open District (0) Tax Map Key(s): 5-5-04: 12 & 13 Land Area: Par. 12:17,345 V.: Par. 13: 16,885 s.f. Nature of Development: (Description of proposed structure or subdivision) "After the fact" lava rock wall, 6' high by 148' long. Lanai Additions at main residence:105 s.f. ext. at west end, 80 s.f. at front entry. NO PERMITS WILL BE ISSUED WITHOUT PLANNING COMMISSION ACCEPTANCE, EXCEPT AS PROVIDED IN §8-27.8(c)(8) Part A Shoreline Setback Determination of Applicability (§8-27.1) Check all that apply, 1111 in applicable information. Any box checked must be accompanied by additional information, photos and/or documentation. Properties Abutting the Shoreline ❑ Project's approximate distance from shoreline: ✓❑ P ✓�ro erties Not Abutting the Shoreline Pmject's approximate distance from shoreline: 250' t0 lanai ❑ Additional Information: ❑ Closest distance of improvement(s) from Shoreline is approximately ft. 0 Number of parcels and type of improvements (roads, buildings, structures) between Shoreline and this parcel: Waioli Beach Park fronts the property to the shoreline. -1- PLANNING DEPARTMENT SHORELINE SETBACK APPLICATION FOR OFFICIAL USE ONLY: SSD 201 Acce tanceDate: Website Posting Date: Determination Date: Planning Commission Date: Expiration Date: Planner Assigned: �✓ Topography (undulating, flat, slope, etc.) and ground elevation of subject parcel (Lowest and Highest elevations) ;Flat, ground elev. 10-12 feet MSL ✓❑ Shoreline Cype (e.g. beach, dune, rocky, sandy with rocky outcropping, etc.) ❑ Artificially armored Shoreline If checked, what type of armoring (e.g. seawall, revetment, bulkhead): Is the armoring permitted/amborized? Date of authorization (attach copy of authorization letter): ❑ Is property in coastal floodplain (if checked, what zone)? x Has this prooperty been suject to coastal hazards in the past? If checked,: No record of past damage from shoreline hazards If the proposed structure or subdivision is within the shoreline setback area then, please be aware that if the determination of a structure is approved, the Applicant shall agree in writing that the Applicant, its successors, and permitted assigns shall defend, indemnify, and hold the County of Kauai harmless from and against any and all loss, liability, claim or demand arising out of damages to said structures from any coastal natural hazards and coastal erosion, pursuant to §8-27.7(b)(2). The requirements of the Subsection (b) shall run with the land and shall be set forth in a unilateral agreement recorded by the applicant with the Bureau of Conveyances or the Land Cram whichever is applicable, no later than thirty (30) days after the date of final shoreline approval of the structure under §8-27.8. A copy of the recorded unilateral agreement shall be filed with the Director and the County Engineer no later than forty-five (45) days after the date of the final shoreline determination and approval of the structure and the filing of such with the Director shall be a prerequisite to the issuance of any related building permit. §8-27.7(b)(6). Applicant's Signature Signature Date Setback Detefutinafion essidry. Requirements of Ordinance No. 979 are applicable. -z- 3�ostu PLANNING DEPARTMENT SHORELINE SETBACK DETERMINATION If Part A has been_deemed that a Determination will be necessary, tbe_additional information will be required foh_ _ _ _ submission of this application. Part B Exemption Determination ❑ A non-refundable processing fee of one hundred dollars (5100.00) shall accompany a request for determination. (§8-27.8(e)) ❑ Exemption 1 In cases where the proposed structure or subdivision satisfies the following four criteria: (A) In cases where the proposed structure or subdivision is located outside of the Federal Emergency Management Agency (FEMA) Flood insurance Rate Map (FIRM) `V' or `VE' flood zones; (B) The proposed structure or subdivision is located at an elevation which is thirty (30) feet above sea level or greater; (C) The applicant can demonstrate to the satisfaction of the Planning Director that the property is clearly adjacent to a rocky shoreline and that it will not affect or be affected by coastal erosion or hazards; and (D) The shoreline setback shall be sixty (60) feet from the certified shoreline which has been established of more than twelve (12) months from the date of the application for the exception under this section. Exemption 2 In cases where the applicant can demonstrate to the satisfaction of the Planning Director that the applicant's proposed structure or subdivision will not affect beach processes, impact public beach access, or be affected by or contribute to coastal erosion or hazards, excluding natural disasters. Factors to be considered shall include, but not be limited to, proximity to the shoreline, topography, properties between shoreline and applicant's property, avation, and the historyy of coastal hazards in the area. �V? 'Exemption 3 roof a c(i t o (,TN\, Those structures and uses found exempt in Table 3 (§8-27.7) (see pg. 5-6) ❑ Letter from the Department of Public Works stating that the proposed project does not constitute "Substantial Lnpxovernent," pursuant to § 8-27.2 §8-27.3 dre Kauai County Code, 1987 as amended, the Pluming Department hereby certifies the uctur (�� or subdivisions) as exempt from those shoreline setback determination requirements 3 i -3- 3/OS/15 FLOOD ZONE DEFINITIONS SPECIAL FLOOD HAZARD AREAS SUBJECT TO INUNDATION BY THE 1 %ANNUAL CHANCE FLOOD —The 1 %annual chance flood (100-yearflood), also known as the base flood, is the flood that has a 1 %chance of being equaled or exceeded in any given year. The Special Flood Hazard is the area subject to flooding by the 1 % annual chance flood. Areas of Special Flood Hazard include Zone A, AE, AH, AO, V, and VE. The Base Flood Elevation (BFE) is the water -surface elevation of the 1 %annual chance flood. Mandatory flood insurance purchase applies in these zones: Zone A: No BFE determined. Zone AE: BFE determined. Zone AH: Flood depths of 1 to 3 feet (usually areas of pending); BFE determined. Zone AO: Flood depths of 1 to 3 feet (usually sheet flow on sloping terrain); average depths determined. Zone VA. Coastal flood zone with velocity hazard (wave action); no BFE determined. Zone VE: Coastal flood zone with velocity hazard (wave action); BFE determined. Zone AEF: Floodway areas in Zone AE. The floodway is the channel of stream plus any adjacent floodplain areas that must be kept free of encroachment so that the 1 % annual chance flood can be carried without increasing the BFE. NON,SPECIAL FLOOD HAZARD AREA —An area in a low -to -moderate risk flood zone. No mandatory flood insurance purchase requirements apply, but coverage is available in participating communities. Zone XS (X shaded): Areas of 0.2%annual chance flood; areas of 1 % annual chance flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levees from 1 % annual chance flood. Ili Zone X: Areas determined to be outside the 0.2% annual chance floodplain. OTHER FLOOD AREAS Zone D: Unstudied areas where flood hazards are undetermined, but flooding is possible. No mandatory flood insurance purchase requirements apply, but coverage is available in participating communities. PROPERTY INFORMATION COUNTY: TMK N0: PARCEL ADDRESS: FIRM INDEX DATE: LETTER OF MAP CHANGE(S): FEMA FIRM PANEL(S): PANEL EFFECTIVE DATE: PARCEL DATA FROM: IMAGERY DATA FROM: KAUAI (4) 5-5-004-010 5438 WEKE RD HANALEI, HI 96714 NOVEMBER 26, 2010 NONE 1500020035E SEPTEMBER 16, 2005 JANUARY 2012 MAY 2005 IMPORTANT PHONE NUMBERS Stanford Iwamoto, P.E. (808) 241-4896 Carol Tyau-Beam, P.E., CFM (808) 587-0267 .,.ri�s eaLo 1„_.v s r il R cysmc .,, L,rf. ZIA, t to Lei nfx-of'..0 lJ ,rk.isv�r rnfeultCr FOUR Bernard P. Carvalho, h. Mayor Nadine K. Nakamura Managing Director Avery Youn, Architect 4-1525 Kuhio Highway Kapaa Hawaii 96746 AEPARTMENT OE+ PUBLIC WORKS County of Kauai, State of Hawaii 4444 Rice Street, Suite 275, LYhu`e, Hawaii 96766 TEL (808)241-4992 FAX (808) 241-6604 Tune 16, 201 fi Subject: SFIORELINE SETBACK SUBSTANTIAL IMPROVEMENT DETERMINATION Fox Gray Roof Repair and Lanai Extensions 5438 Woke Road, Hanalei, Hawaii, 96822 TMK: (4) 5-5-004:012 Dear Mr. Youn, Lyle Tabata Acing County Engineer T1us letter supersedes the Shoreline Setback Substantial Improvement Determination letter far TMK (4) 5-5-004:012 that was dated September 4, 2015, The Kauai County Shoreline Setback arrd Coastal Protection Ordinance (Ordinance No. 979) Section 8-27.2 defines substantial improvement as "any cure ve series of rep a rs, reconstruction, improvements, or additions to a structure over a ten (10) year period, where the cumulative cost equals or exceeds fifty percent (50%) of the market value of the structure before the start of construction of the first improvement during that ten (10) year period. For the purposes of this definition, substantial improvement is considered to occur when the first alteration of any wall, ceiling, floor, or other structural part of the building commences, whether or not that alteration affects the external dimensions of the structure." The Department of Public Works Engineering Division. (DPW) has reviewed the additional improvements described in your letter dated May 21, 2016. There are two structures on the subject property: Structure No. 1 is a residential structure (main house) and the improvements consisted of re- xoofmg the building and Lanai extensions. DPW has determined that the improvements do not constitute a substantial improvement. A summary of the calculations is provided below. An Eyxral Oppor•tarnily Employer Avery YeUn Substantial DeterminationtbrTN1K 5-5-044: 012 une 16, 2016 Structure No. 2 is a workshop/storage (former garage) building and will be re -located on the parcel. Relocation is not included in the definition of a substantial improvement, Therefore the relocation of Structure No 2 is not considered a substantial improvement. Market Value There axe no other building permits approved fox the str-aeture over the last ten years. Therefore, the market value used in the calculations is most current Replacement Cost New Less Depreciation (RCNLD) value for the stricture. The most current (2012) RCNLD on file with the County's Real Property Assessment Division for structure No. 1 is $168,000, The Engineering Division has used the RCNLD as determined by the Connty's Real Property Assessment Division in its calculations. If the owner chooses to dispute this value, then an appraisal of the structure must be provided at the owner's expense. The appraisal shall be prepared by a professional appraiser licensed in the State of Hawaii and the market value shall be based on the "Cost Approach" (or Replacement Cast New Less Depreciation). Cost of Improvements The total cost of improvements was estimated to be $53,007. This includes $43,247 for re- roofmg and $9760 for the extension of the lanai. These amounts were taken from proposals prepared by Offley Construction and dated June .12, 2015 and September 28, 2015, respectively, Srxmmzzry The cost of improvements compared to the market value is summarized as follows: Cost of Improvernen#s (past IO years): $53,007 _ *Market Value (Real Property): $ '168,000 _ 0.316 or 31.6°/o Since the total cost does not exceed SO% of the market value, the improvement is not considered to be substantial. Based on our records there were no other permits for the structure within the past ten years. IIowever, if any unparmitted work has been done, or if there are modifications to this application, our determination shall be considered void and the structure must be re-evaluated. If you have any questions or need additional information, contact Stanford Iwamoto at (808) 241-4896 or s2wamoto c(�rkauai.gay. Sincerely, I Ole sV/SI ZMICHAELMOULE,P.E. Copy to: Design and Permitting Chief Engineering Division Planning ��� ,.. �_ "' a r .�a�.�`.'', ��� N RI -e t i�M1 W m '�'os»� c ' �v z„ n c�c i ,-, �,m s � 0 r, � , " �-e °r, `� S fi" ES. �,� :`=' D � rye � � � v al �: a �. � ,� ,, "' '' A t : t� � "� ti � �a J�;"a r� '. 6 `A I p.+. r c> -a �.1 r� era r a� -. » r` f �° c>a a��c�o c�a:3s�1� o .-.am cm - m�� m ei 0 -"aA �m � � c' ^' c'= s-a cam. cn � cww •u ce c ur vi r ., o em p to � � an fPl x .� � .v s.wc -�wo� �-aio ;rr r,� .� ��r ,M � "' �an.�rn -0 �zw m u S- z � 0 0 � a PLANNING DEPARTMENT SHORELINE SETBACK APPLICATION FOR OFFICIAL USE ONLY: SSD 201 1 ;7 Acceptance Date: . 9-" L� Website Posting Date: 1 iCo Determination Date '7-15 -G� Planning Commission Date: I Ex iration Date: - Planner Assigned: Instructions: File all information requested under Part A for processing the Determination of Applicability (§ 8-27,1), including signature page. Fill out Parts A and B if you know, due to proximity of the shoreline, that your parcel will require a Certified Shoreline Survey. Ifyou are proposing a permitted structure or subdivision within the shoreline setback area fill in Part C. For applications involving a variance, complete Part D. A licant Information Applicant: f°'i eelkne f"s ?1 rl Mailing Address: Applicant's Status: i4ptl& t. (Check one 147 f k- Phone: Email: I t L- ❑ Owner of the ❑ Lessee of the Authorized Agent Property Property Holder of at least 75% of the equitable and legal title Lessee must have an unexpired date of filing of this application. and recorded lease of five (5) years or more from the If not, Owners must provide a Letter of Authorization. Attach Letter of Authorization Transmittal Date: County Zoning District: Nature of Development: (Description of proposed or Tax Map Key(s): Land Area: ND PERMITS WILL BE IS'SUEb WI'fIiOi1T PLANNING COMIVIISSICjN AECEP'1'ANC1;, EXCEPT AS PROVIDED IN 98-27.8(c)(8) Part A Shoreline Setback Determination of Applicability (§8-27.1) Check all that apply, fill in applicable information. Any box checked must be accompanied by additional information, ph os and/or documentation. Properties Abutting the Shoreline ❑ Project's approximate distance from shoreline: `(0 ❑ Properties Not Abutting the Shoreline ❑ Project's approximate distance from shoreline: ❑ Additional Information: ❑ Closest distance of improvement(s) from Shoreline is approximately ft. ❑ Number of parcels and type of improvements (roads, buildings, structures) between Shoreline and this parcel: -1- 3/OS/SS PLANNING DEPARTMENT SHORELINE SETBACK APPLICATION FOR OFFICIAL USE ONLY: SSD 201 Acc p tanee Date: Website Posting Date: Determination Date: Planning Commission Date: E iration Date: Planner Assigned: ❑ Topography (undulating, flat, slope, etc.) and ground elevation ofsubject parcel (Lowest and Highest elevat ons) ❑ Shoreline type (e.g. beach, dune, rocky, sandy with rocky outcropping, etc.) ❑ Artificially armored Shoreline ❑ If checked, what type of armoring (e.g, seawall, revetment, bulkhead): ❑ Is the armoring permitted/authorized? ❑ Date of authorization (attach copy of authorization letter): Is property in coastal floodplain (if checked, what zone)? 14F- E3 Has this proper been subject to coastal hazards in thepast7 (If checked, if the proposed structure or subdivision is within the shoreline setback area then, please be aware ffiat if the determination of a structure is approved, the Applicant shall agree n writing that the Applicant, its successors, and permitted assigns shall defend, indemnify, and hold the County of Kauai harmless from and against any and all loss, liability, claim or demand arising out of damages to said structures from any coastal natural hazards and coastal erosion, pursuant to §8-27.7(b)(2). The requirements of the Subsection (b) shall run with the land and shall be set forth in a unilateral agreement recorded by the applicant with the Bureau of Conveyances or the Land Court, whichever is applicable, no later than thirty (30) days after the date of final shoreline approval of the structure under §8-27.8. A copy of the recorded unilateral agreement shall be filed with the Director and the County Engineer no later than forty-five (45) days after the date of the final shoreline determination and approval of structure and the filing of such with the Director shall be a prerequisite to the issuance of any related building permit. §8-27.7(b)(6). Applicant's Signature Signature s 4 Setback Determjngation negSssary. Requirements of Ordinance No. 979 are applicable. -2- 3/os/u PLANNING DEPARTMENT SHORELINE SETBACK DETERMINATION ff ParrA has been deemed that a Determination w 11 be necessary, the additional information will be requ red for submission of this application. Part B Exemption Determination ❑ A non-refundable processing fee of one hundred dollars (S100,00) shall accompany a request for determination. (§8 27.8(e)) ❑ Exemption 1 In cases where the proposed structure or subdivision satisfies the following four criteria: (A) hi cases where the proposed structure or subdivision is located outside of the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map (FIRM) `V' or `VE' flood zones; (B) The proposed structure or subdivision is located at an elevation which is thirty (30) feet above sea level or greater; {Q The applicant can demonstrate to the satisfaction of the Planning Director that the property is clearly adjacent to a rocky shoreline and that it will not affect or be affected by coastal erosion or hazards; and (I)) The shoreline setback shall be sixty (60) feet from the certified shoreline which has been established not more than twelve (12) months from the date of the application for the exception under this section. ❑ Exemption 2 In cases where the applicant can demonstrate to the satisfaction of the Planning Director that the applicant's proposed structure or subdivision will not affect beach processes, impact public beach access, or be affected by or contribute to coastal erosion or hazards, excluding natural disasters. Factors to be consideredshall include, but not be limited to, proximity to the shoreline, topography, properties between shoreline and applicant's property, elevation, and the history of coastal hazards in the area. RI Exemption 3 Those structures and uses found exempt in Table 3 (§8-27.7) (see pg. 5-6) ❑ Letter from the Department of Public Works stating that the proposed project does not contitute "Substantial Tmpxovement," pursuahtlo §8-27.2 Exemption Determination (to be completed by i'lanninp,Department) §8-27.$ the I{aua`i County Code, 1987 as amended, the Planning Department hereby certifies 1 ructurC�7`Xy�_or subdivision(s) as exempt from those shoreline setback determination requirements under 78. Date -3- 3/OS/15 June 16, 2015 To Whom It May Concern I, Fredrick Kleinbub, the of TMK # 58012014, hereby a to act on my behalf for all 1 Sincerely, Fredrick Kleinbub LETTER OF AUTHORIZATION r of 5-6920 Kuhio Highway, Wainiha/Haena, Kauai, Hawaii 96714, prize Shawn Smith and Monica Farrell of SMS Land Management, ng and land use matters pertaining to my property. I{apaa, HI 96746 PHONE (808) 822-2456 OWNER NAME: Eric Klembub PHONE: (415)310-0326 EMAIL: el<blib@aol.com PROJECT ADDRESS: 5-6920 Kuhio HWY Hanalei, HI 96746 MAILING ADDRESS: 6211 Camino De La Costa La Jolla, CA 92057 TMK: 5-8-12-14 LEGAL ADDRESS: Lot 87-A-1, Per. Wainiha Hui, Hanalei Kauai Construction to Begin: TBD Date of Plans: N/A Architect: N/A General Conditions: PROPOSAL #: 2238 Contract Completion Date: TBD I. Site supervision/projeofmanagement 2. Mask off all surrounding rooms; includes all furniture, cabinets, and walls. Relocate furniture and cover with plastic: 3. Daily and end of project site cleaning. Demolition: 1. Remove drywall and exterior siding at location of new windows in bedroom and family room. 2. Remove and dispose of all flaorhrg and baseboard in bathrooms, famiiy room, and kitchen. 3. Remove upper cabinets in both suites off main house. Framing/Siding: 1. Provide and install framing at new closet off kitchen to receive hot water heater. 2. Provide and install framing at family room windows. 3. Provide and install flashing for all new windows. 4. Provide and install trim and siding as needed for all new windows.. 5. Provide and install framing for new font door. 6. Provide and install new framing and girders under floor in any damaged areas. Mechanical: Drywall: Flooring: Paint: 1. Replace old fireplace with a new unit. 1. Replace and patch drywall at all areas affected by work described n above demolifron scope. Textm'e to match existing. 1. Provide and install flooring at bedroom, family room, and kitchen. Flooring will be chosen by homeowner. 2. Provide and install baseboard. Baseboard to match existing as close as possible. 1. Paint all areas affected by construction only 2. Paint to match existing colors. 3. Paint all new baseboard. PROPOSED PAYMENT: Owner agrees to pay Williams Construction, LLC a total price of36,®®®.® Payment schedule as follows. (1)10%deposit due at acceptance of proposal $36,900.00 (2)Progress payments to be billed biweekly from commencement of work. NOTE: This proposal may be withdrawn by Williams Construction, LLC if not accepted within 30 days. Williams Construction, LLC is hereby authorized to return a formal contract between Owner and Wiliams Construction, LLC to accomplish the work described in the above proposal, for which the undersigned agrees to pay the amount stated in said proposal and according to the terms thereof. Billy Williams Date Eric Klefnbub Date General Contractor Owner Appraisal Services Kauai FROM: Katherine A. Lewi Appraisal Services Kauai P.O. Box 1054 Lihue, HI 96766 Telephone Number: 808332-8100 Fax Number: 808332-8102 T0: Individual - Swaying Palms Kauai Venture Eric Kleinbub 6211 Camino De La Costa La Jolla, CA 92057 E-Mait: ekbub@aol.com Telephone Number: 415-310-0326 Fax Number: Alternate Number: `..'INVOICE NUMBER 15-826 DATES'-. In Date: 10/10/2015 Due Date: REFERENCE Internal Order #: 15-826 Lender Case #: Client File #: FHANA Case #: Main File # on form: 15-826 Other File # on form: FederalTaxlD: 20-8199518 Employer ID: DESCRIPTION Lender: Individual- Eric Kleinbub Client: KLEINBUB, Eric Purchaser/Borrower: Swaying Palms Kauai Venture Property Address: 5-8920 Kuhio Hwy City; Hanalei County: Kauai State: HI Zip: 96714 Legal Description: Lot 87-A-1, Per. Wainiha Hui, Hanalei, Kauai FEES AMOUNT `, Appraisal Fee - Marshall & Swift Approach 600.00 SUBTOTAL soo.00 PAYMENTS AMOUNT Check#: Date: Description: Check#: Date: Description: Check#: Date: Description: SUBTOTAL TOTAL DUE IS 600.00 Appraisal Services Kauai Uniform Residential Appraisal Report File# 15-826 The ur ose of this summa a sisal re od is to provide the lender/client with an accurate, and atlequatel su orted, o anion of Ne market value of the suh'ect roe Property Address 5-6920 Kuhio Hwv City Hanalei ___.....-_____ State HI Zi Code 96714 Borrower Swavino Palms Kauai Venture Owner of Public Record swnnNc PALMS KAUAI veNTuae LP Cqun Kauai __ Le al Descn�tion Lot 87=A-1 Por. Wainiha Hui Hanalei Kauai --,_ Assessor's Parcel # (41 5-8-12-14 Tar Year 2015 R.E. Taxes $ 18 895.64 Nei hborhood Name Wainiha/Haena ._, ,Map Reference (41 5-8-12-14 Census Tract 0401_04 _-__- Occupant ®Owner ❑Tenant ❑Vacant Special Assessments $ 0 ❑ PUD HOA $ 0 'I� per near _❑per_mo�nh " Pro e Ri hts A raised � Fee Sim le �_ Leasehold ❑ ONer (describe) _ Assi nment T e 0. Purchase Transaction ❑Refinance Transaction ®Other (describe) Estimate Market Value for "Renovation Permit".__.,____ Lender/Chem Individual -Eric Kleinbub Address 6122 Camino De La Costa La Jolla CA 92037 Is the sub-em roe cunerttly afiered for sale or has it been offered for sale In the twelve months prior tp the effective dafe of this appraisal? _[� Yes ��� No _ ft grtdatasoprca osed,offerin dces �ddala(sL Adcatdindto Hawaiflnformatlon Servtce.Ynesun'ecY roe is noTcmrent ilstedandhas not been listed for the last twelve months. I ❑did ❑did not analyze the contractfpr sale for the suhject purchase transaction. Explain the results pf the analysis of the contractfor sale or why the analysis was not - edormed. _-.___.__ Contract Price$-- Date of Coptmct Is the property seller the owner of public record?_Yes ❑No Dafa Soume(sL Is there any financial assistance (loan charges, sale concessions, gift or tlownpayment assistance, etc.) to be paid by any party on behalf pf the borrower? ❑Yes ❑ No If Yes reportihe total dollar emoont and descdbe the Hems to be paid_, _,__ Note; Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics _ ' One -Unit Housing Trendy --Ana-Unit Housing , Present Land Use%'. Location ❑Urban ®Suburban ❑Aural Pro a Values ❑Increasing ®Stable ❑ Declinln PRICE AGE One-0ntt sD % _ __— __ Built-U ❑ Over75% ®25-75% ❑Under 25% DemanNSupy_ly 0 Shortage ®In Balance ❑Over Sypply _$ I606) Nrj___ 2-4 Unit _ % Growth ❑ Ra id i❑ 6teble, 0 Slow Marketln Time ❑ Under S mths ❑ 3-6 mths ®Over 6 mths I 250 Law 0 MulfFfamn 5 Neihborhood Boundaries Neighborhood boundaries for Wainiha and Haena are ocean to the north 3 500 High 70 '�, Commercial 5 % Hanalei to the east forest reserve to the south and Na Pali Coast fo the west. ________Li 350 Pretl, 15__.'_Other_ ,_ _ 30* % Net hbprll00d DesCd don The sub'ect ro ated W Iniha,abetlrggm wmmunr slWateda m motel 3p les ngdh of th i al city of Lih a Thsnei hborhood has goda eat and marketabill .The ma'orp gfp;ped es mvetl vnthsngle hmilY dwellings of gogdbvery ggotl�ualihY,cgnsauctiqn. Wainiha and Ha_have a_ge access to �.ployment oaportunifiesysohools and oche[ggnvenlenc s[eHgw er this nefghbgrhogdhas pristine Yuhlte sand beaches with excellent sgrfn, ngrkel�n ahlkin e oast Market Gontlitlons including su ort for Ne above conclusions)eV Market condaions ar average in the subject are omgared to other areas of Kauai. Prices —.__-- are currently stabile with balanced supply and demand However marketing time is more than six months due to limited purch_esjnq_ ower. Interest bu downs and financin concessions are not revalent due to Favorable interest rates for convenliohal finanGn ee form 1004MC . Dimensions 60.67' 154.00' 60.00' 145.00 Area 9 100 sf Shape Rectangular+!- View Beachfront Specific Zoning Classification Open Zoning Descdpdon Allows Sinole Family Residential Zoning Compliance ®Legal 0 Legal Nonconformin (Grantlfathered Use) ❑ No Zoning ❑Illegal (descdhe) ___ Is the hi hest and best use of sublet[ property as improved (or as proposed per plans and specNcafions1the present use? ❑ Yes ❑ No If No, describe Utilities Public Other(describe Public Other descdbe Off -site Improvements-7 pe Public Private ElecUiciry ® ❑ Water ® ❑ Street Asphalt ® ❑ Gas ❑ X Pro one Tank Banitary Sewer_❑ ®Cass ool Alle None ❑ ❑ FEMA B ecial Flood Hazard Area � Yes ❑ No FEMA Flood Zone VE FEMA Ma # 1500020035E FEMA Ma Date 9/1 s/2005 Rre Ne militias and off -site im rovemenis icalfor the market area? ❑ Yes ❑ No If No, descdbe Are there an adverse she conditions or exlemal tactprs eesemems, encroae_hments, environmental conditions, land uses, etc. ? ❑ Ves � No If Yea, describe There were no a arena adverse conditions noted. There is no ublic sewer that services the subiect area; therefore, septic tanks areycical and do not affect the sub'ect's marketabilit . The sub'eci ro art is in flood zone "VE" (see flood map). There are no aMive volcanos on the island of Kauai therefore, the subject ro art is not situated in a lava zone. General Oescri lion Foundation Exterior Descd tion materials/condition Interier materials/eontlhibn Units (?� One ❑One with Accesso Unit ❑Concrete Slah ®_Crawl S ace Foundation Walls wd/conc.Pst.on Pr/Av Floors CT�VnLSVi s/Av . # of Stones 1.5-5_tory___. ❑Full Basement ❑Partial Basement Exterior Walls Hardi Board/Avera e Walls G sum Board/Av . Type,❑'J. Det_❑ Ai[,,_O SS-0eUEnd Unit Basement Area 0 s H. Rpaf Burface Shake�Asoh,Roll/Ayg Ttlm/Flnish Wood/Avera e � Exisdn ❑Pro osed ❑Under Const. Basement Finish o %Gutters &Downs outs Aluminum/Avera e Bath Floor Ceramic Tile/Av ._ Desi n S Ie Ranch ❑ Olnslde Entr /Exit ❑Sum Pum Window T e Jalousie Fixed/Av . Bath Wainscot Ceramic Tile/Av . Year6uih 1958 Evidence of ❑ Infes[atlpn not evident Storm SasNlnsulaletl None/Unknown Car Storage ❑None __ EHective A e rs 10 ❑Dam pass ❑Settlement Screens Full Fiber lass/Av . �� Drlvewa # of Cars 3 ACPic ®None Heatln ❑ ftNA ❑ HWBB ❑Radiant Amenities ❑ WoodsCove(s) # 0 Driveway Surface Grass Crete ❑ Dro Stafr ❑ Sthirs ❑ Floor ❑ Scuffle _ ®Other o�-tyo, Fuel None Cocling ❑ CenVal Air Contlltipnin ®Flre laces # 1 ❑ Fenpe None ®Patlol0eck Deck ®Parch Lanai ❑ Gare e # of Cers 0____ ❑ Ga art # of Cers 0 ❑ Finished ❑Heated ❑Individual None � Other Non-t ❑Pool None ®Other Ld ./Stor. ❑ At[. ❑ DeL ❑ BuIR-in A Ilences ®Refrl eratnr ®Ran e/Oven ®Dishwasher ❑ Ols osal ❑Microwave ®WasherlD er [�'` Other desorlbe FanlHood Finished area above rode conCains'. 10 Rooms 5 Bedrooms 5.0 Bath(5) 2 660 Square feet m GrosS Living Ala Above Grade . Adtlldonal features s ecial energ efFlcient items, etcJ, Ceiling fans wet bar in dinin area's a tub in bath b deck' s trot staircase access to second floor; fireplace in living roam' soaking tub in all full baths. The subiect property is located on the_ocean with a beachfront view. Describe the pondifion of the roe includin needed repairs, deterlorailon, renovations remotlellnp eic.l. The subiect dwelling Is of average plus quality _ construction and is in average overall condition. Kauai county tax offce records show the dwell_ i�was built in 1958 however there is a ermit for a dwelling in 1969 and repairs in 1995: The dwelling looks like it was uedated in 1995 but has not been renovateri since then. The ur ose of this a sisal is to estimated re lacement cost new, less de ra�eci@tipn for the subiect improvements. Therefore, only [he Cost Ap roach was develo ed and the Sales Com orison and Income Approaches were not applicable. Are there any physical dedclenples or adverse condltlons Nat affectthe Ilvahlllty soundness or shucWal InteOd of the props 7 ❑ Yes � No If Yes, describe There were no h sical defciencies or adverse conditions noted at the time of inspection that affect the soundnea� livabili or structural ante r of the tlwellin . Some of the wood ost and. railings at the rear are in contact with the sand and the subiect might need to upgrade itscesspool_ „ to eepClc tank due to Ito close roximit to the beach. Does the roe enerall conform to the net hborhood funefional udliN, style, contlNon, use, consBuctlon, etc.)? � Yes ❑ No If Np, descr@e The subjec[prgpertyhos pod tom atibilit to the net hborhood with ootl a sal and marketabill . Freddie Mac Form 70 March 2005 Page 7 of 6 Fannie Mae Form 1004 March 2005 Uniform Residential Appraisal Report File# 15-826 There are Na comparable properties cuneiNy offered for sale in the subject neighhorh0od ranging in price from $ Na to $ n/a There are n/a com arable sales in the subject neighborhood tvhhin the past twelve months ranging in sale price from $ n!a to $ n/a FEATURE SUBJECT COMPARABLE SALE#1 COMPARABLE SALE#2 COMPARABLE SALE#3 Address 5-6920 Kuhio Hwy Hanalei HI 96714 ___ Pmximi to Sub'ect _ Sale Price $ — ' $ _ $ $ Sale Price/Gross Liv. Area __ $ s .H. $___ s .tt $ s ft - $ s ft _ Oata Source s _, Verification Sources_ VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION I,+ $Adushneni DESCRIPTION. + $Ad ustmerd DESCRIPTION + $Ad usMent Sales or Financing _ Concessions _. ... _ Oaie of Sale/Time __ _ � ___ Locatlon Wainiha/Haena __,_ _ ____. __ Leasehold/Fee Sim le Fee Sim le ___ Site 9 100 sf _-_ View Beachfronl I _-__ I Design 5 le Ranch __ _, _. __ _ Quell pf Constmcdon __ Avera e+ _,__ ACNaI A e 67 Years _._ — Conditlon Avera e ___ Above Gmtle TpMI _ Btlrms. Baths Total Btlrms, Baths _ Total �Btlnns. Baths ._-_ _ Total Btlims.l Baths ,-,_____ Room Count 10 5 5.0 Gross Living Area 2 660 s .ft s .ft ,_ sq,it. ___ _ s .ft, _._.__ Basement&Finished D _,. Rooms Relow Grade None __....- _ FuncuonalUtlli Good ___ Rea6n Conlin _ None ___ ____ • Ener Efficient Items .. __ __None Garage/Car OR None ___ __._._ ____ _ _ _ � ' Porch/Palio/Deck Lanai�Dks Ld r • LanaVLagnd /Slora a &Stor.1 096 SF �____ �� _ „_ Site Im rovements Good Site Im . Tar Key Mao Number,_ 4 5-a-12-14 '� ___ Net Ad'ustment Total ❑ + ❑ - _ �$ ❑ +_ - $ ❑ + ❑ - $ . ___ _❑_ _ Atllusted Sale Price - - Net Adj. % Net Adj. % Ne[Adj. % of Compambles boss Adl. %$ Gross Atll. %,$ Gross Adj. %I$ I L❑ did ❑did pot research the sale or 8ensfer hlst� Of the sublect property and compa[able sales. If not explain M research ®did ❑dltl not reveal any prior sales ortransfers of the subjectproDertyfor the three ysarspriorto the effective date of thisa sisal. Data Sources Hawaii Information Service - MLS for Kauai County M research ❑did �dld __ _ not reveal anyydorsales ortransfers of the comparable sales forthe yearpfmrt0 the loth of sale of the com arable sale. Data Sources N!A RepOrtthe results of the research and analysts Otihe tlor sale or transfer histo of the sub'act rope and com amble sales re Ort etldhlon�rlor sales on Pe9e 3f_,__ _ REM SUBJECT COMPARABLE SALE #1 _ COMPARABLE SALE #2 COMPARABLE SALE #3 _ Date Of PflOr $ale/Transfer 07/01/2013-$1900000 Price of Prior Sale/Transfer �07/11/2013--.$9000 _„___ Data Sources _Hawaii Information Service _ __ Effective Date of Data Sources 09/29/2015 I —___ __ Analy9ls of prior sale or transfer history of the suhlec)yrope�t and comparable sales The sublect properly was purchased by [he borrower In July 2013 for $1900000. _. _, Summa of Sales Com arlson A roach Indicated Value 6 Sales Comparison Ap roach $ n/e Indicated Value by: Sales Comparison Approach$ n/a Cost Approach (ii developed)$ 740,000_ Income Approach (iideveloped)$ The intended use of this appraisal report is to estimate replacement cost new less depreciation for [he sub'ecl im rovements onl .This is needed a_s part of a permit for renovation. The intended users.are the owners and an overnment a antics that need this valuation as art of • the ermit rocess. Refer to attached addendum "A" for final reconciliation. � __ _ _ This appraisal is made ®"as Is", ❑ sublect to complelion per plans and specifications On the bests of a hypothetical condthon that the improvements have been completed, ❑subject to the icllowlog repairs or eltaratlona On the basis of a hypothetical condltlon that the repairs or alterations have been completed, Or ❑sublect to the • followin re aired ins ecticn based on fhe extraordina assum lion that the contlifion or deficiency does not reguire alteration or re air; None. Based on a complete visual inspection of the interior and exterior areas -of the suhI'ect property, defined scope of work, stmement of assumptions and limiting conditions, and appraiser's certlTcatlon, my (our) opinion of the market value, as defined, of the real properly that Is the subject of this repod is $ 740 000 , as of 09/22/2015 which is the date of ins action and the effective date of this a sisal. Freddie Mac Fonn 70 March 2005 Page 2 of 6 Fannie Mae Form 1004 March 2005 Uniform Residential Appraisal Report Filet 15-826 Vacation Rental Information: The pubiect area Hanalei has some homes that are in vacation rental programs. Recent changes al the county level now limit vacation rental homes to properties with residential zoning that have a history of being rented on a short term haste. 1_t a ro e is not in a VDA owners now need to obtain a special use permit thatwill allow them to be "grandfathered" in order to continue short term ___ vacation rentals. Some owners in the subject neighborhood use their properties as second homes and the abili to rentii out to offset ex enses can be a pootl marketing tool. This ordinance is relatively new' however the data that is available suggests that bpvers are willing to pay more for a property that can be rented on a short term (vacation rental) basis. There are few vacant land sales so the impact of the than e in land use for vacant land in Kekaha and other visitor destinations island wide remains to be_seea In my opinion a property with a NR ermit or in a VDA is superior as compared to one that can not be rented because of the ability to generate income to offset the costs for ownership and at Ue same time the owner can use the home part of the time without displacing a long term tenant The subject is not in a VDA;_however it does have a NR permit (IVNC-12551. Professional Assis[ance� A portion of the work in this report was done by my staff appraiser Jeannine N. Sawyer -Auger (SLA-11o8). Duties include clerical (fie eel up and typing)' along with same research assistance (data collection). _All of this work_$_done under my direct su ervision and the analysis and conclusions are my own. ._. - -- _ .'COSTAPPROACH TO VALUE(noVequiretl by Fannie Mae) - _ _ Provide adequate information forthe lender/clientm repllcaPe PhO below Cosifigores and CelCulslioos. _ ___ _ 6uppprt forthe opinion of site value (summary of o�ereble land sales or oPher methods for esgmaling site value) There is no value given to the sub act sta because is a Hawaiian Homelands Leasehold property as explained above. _ ESTIMATED ❑REPRODUCTION OR REPLACEMENT COST NEW OPINION OF SITE VAWE___.-_-__„_____-________ _$ _ _ Squrce of cost data Marshall Swift L P. DWELLING 2 660 Sq.Ft, @ $ 290 00 .-_-__ _$ 771 400 _— Ouallt ratln from cost service Good Effective date of cgs[data Se L2075 0 BgFt.@$ _____ _$ - Comments on Cost Approach (gross living area calculations depreCiatlon etc.) Deck Lanai & Stor. 1 098 x $75 _ _.._.-- _$ __82 400 Estimated re lacement wsi is based on local contractor estimates and Gara elCarpOrt 572 Sq.Ft @ $ -.-_ _$ a ralsets flee. Phvsiral depreciation is on a straight line basis assumin a 60 Total Estimate of Cost -New _ _, __-__ _$ 853 800 earmtal economic life. Less Ph sical Functional_,_ Eylernal _ Depreciation 142,_300i __ _$ 142 300 __ _ 2015 Kauai County Tax Office Assessments: De reClated Cost Of lm rOvements _______._-____________.-_--_$ 711,500 _ _ Land&Imorovements:_$2135100 "As-is"Value-Of Sita lmprOvements___________.... ...........:__=�6 25000 _ Coun a seed valued include the land and are therefore significantly higher. see � __ Estlmated Remaining Economic Life HUD and VA only 50 Years iIND1CATEDVALUE BY COST APPROACH __________________$ 736500 .>INCOMEAPPROACH TO VALUE(aot required by Fannie Mae)__. - Estlmated Monih�Market Rent$ X Gross Rent Multipfer _ $ _ Intllcaietl Value b Income A roach __ Summary of Income Approach Qncludinq support for market rent and GRM) _ .__. —.__. - PROJECT INFORMATION FOR PUDs (if applicable) _ - _ _ Is the develo erlbwlder In control of the Homeowners' Assoclagpn (HOA)7 ❑Yes ❑ NO Unit rype(s) � ]Detached ❑ Attached ___ . Provide the fgllowing informatlon for PUDs ONLY ifihe developer@under Is in control of the HOA and rye subject pr�erty Is an attached dwelling unit _ Le al Name of Prolec(,_ ,_ _. ___. Total numher of phases Tgtal number Of units Total number of ands sold _ ___ TgtN number of units rented Tmal number of units for sale _ Dafa soume(sj. __,__ _,., _� _ Was the ro act created 6❑he convemion of existing bulitling(s) Into a PUD? ❑ Yas ❑ No If Yes date of conversion_ Does the project contain any mufti-tlwelllnp units? ❑Yes ❑ No Data Source Are the unhs common elements and recmatlonfeclllties compleie7 ❑Yes ❑ NO If No describe the stztus of completion_ __ Are the common elements leased to or by the Homeowners' Assoclatlon? ❑Yes ❑ No If Yes describe the reotel terms and options, Describe common elements and recreational facilities. _._.____ _ Freddie Mac Farm 70 March 2005 Page 3 of 6 Fannie Mae Form 1004 March 2005 Residential Appraisal Report File# 15-826 This report form is designed is report an appraisal of a one -unit property or a one -unit property with an accessory unl; including a unit in a planned unit development (PI1D). This report form is not designed to report an appraisal of a manufactured home or a unl in a condominium or cooperative project. This appmisal report is subject to the following scope of work, intentletl use, intended user, definition of market value, statement of assumptions and limting condllons, and cert'rfications. Modifications, addlions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting condlions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based an the complexity of this appmisal assignment. Modfications or deletions to the certifications are also not permitted. However, addtional certifications that do not constitute material alemtions to this appmisal report, such as those required by law or those related to the appraiser's SCOPE OF WORK: The scope of work for this appraisal is defined by the complexly of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting condlions, and certifications. The appraiser must, at a minimum: (�) perform a complete visual inspection of the interior and exterior areas of the sublect property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) reseamh, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. INTENDED USE: The intentletl use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appmisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competlive and open market under all condttions requisite to a lair sale, the buyer and seller, each acting pmdently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of trite from seller to buyer under conditions whereby; (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) paymem is made in terms of cash in 0. 5. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the compambles must be made for special or creative financing or sales concessions. No adlustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identrfiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made tc the comparable property by comparisons [o financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not he calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amourrt of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraisers certification in this report is subject to the following assumptions and limiting conditions: t. The appraiser will not be responsible for matters of a legal nature that affect ether the property being appraised or the title to 1, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the tile. 2. The appraiser has provided a sketch in this appmisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraisers determination of is size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject sle is located in an identified Special flood Hazard Area. Because the appraiser Is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to tlo so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing the appraisal. tlniess otherwise stated in this appmisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the pn;sence of hazardous wastes, toxic substances, adverse environmental condlions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appaisal report must not be considered as an environmental assessment of the propedy. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appmisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. Freddie Mac Form 70 lvlarch 2005 Page 4 of 6 Fannie Mae Form 70g4 March 2005 Uniform Residential Appraisal Report File# 15-826 APPRAISER'S CERTIFICATION: fhe Appraiser certifies and agrees that 1. I have, at a minimum, developed and reported this appmisal in accordance with the scope of work requirements stated in this appraisal report. 2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of the improvements In factual, specirfic terms. 1 identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. i performed this appraisal in accordance wfth the requirements of the Uniform Standards of Professional Appraisal Prartira that ware atlooted and oromuloated by the Aopmisal Standards Board of The Appraisal foundation and that were in 4. 1 developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appmisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appmisal, unless otherwise intllcated in this report. 6. I researched, ver"rfied, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. I have not used comparable sales that were the result of combining a land sale with the contract purchase pdce of a home that has been built or will be built on the land. 9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 10. I verrfied, from a disinterested source, all irrtormation in this report that was provided by parties who have a financial irterest in the sale or financing of the subject property. 11. I have knowledge and experience in appraising this type of property in this market area. 12. I am aware oi, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinlon of madcet value. I have noted in this appraisal report any adverse condttions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental condtions, eft.) observed during the Inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on [he value and marketability of the sublet[ property. 15. I have not knowingly withheld any significant informadon from this appraisal report and, to the hest of my knowledge, all statements and information in this appraisal report are true and correct. 16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limtting conditions in this appmisal report. 17. I have no present or prospective irr[erest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I tlitl not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marftal status, handicap, familial status, or national origin of ether the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not condtioned on any agreement or understanding, wdtten or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that iavors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such intlividual(s) and disclosed the specific tasks performed in this appraisal report. i certify that any individual so named is qualified to pertorm the tasks. I have not authorized anyone to make a change to any item in this appmisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility far it. 20. I itle�ifietl the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. Freddie Mac Form 70 March 2005 Page 5 of 6 Fannie Mae Form 1004 March 2005 Uniform Residential Appraisal Report 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instmmentallty of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). 22. I am aware that any disclosure or distrihution of this appraisal report by me or the lender/client may he suhject to certain laws and regulations. Further, 1 am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature,' as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as If a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, at seq., or similar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. 1 directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser's analysis, opinions, statements, conclusions, and the appraisers certification. 2. 1 accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub -contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature,' as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER Signature Name Katherine Company Name Company Address SUPERVISORY APPRAISER (ONLY IF flEDUIRED) Signature \. Lewi Name Appraisal Services Kauai Company Name 3484 Kakela Makai Dr Kalaheo HI 96741 Company Address Telephone Number (808) 332-8100 Email Addrass kaN.otsuii(Dgmailcom __________ ADDRESS OF PROPERTY APPRAISED APPRAISED VALUE OF SUBJECT PROPERTY$ 740,000 LENDER/CLIENT Name Company Name Individual - Eric Kleinbub Telephone Number Email Address Date of Signature State Certification # or State License # State Expiration Date of Certification or License SUBJECT PROPERTY ❑ Did not inspect subject property ❑ Did inspect exterior of subject propertyfrom street Date of Inspection ❑ Did inspect interior and exterior of subject property Date of Inspection COMPARABLE SALES Company Address 6122 Camino De La Costa La Jolla CA 92037 ❑ Ditl not inspect exteriorof comparable sales from street ❑Did inspect exterior of comparable sales from street Email Address ekbub@aol.com Date of Inspection Freddie Mac Form 70 March 2005 Page 6 of 6 Fannie Mae Form 1004 March 20D5 A9. W%FTs SQUARE FOOT APPRAISAL FORM For subscribers usinglBesidential Cost Handbook/Residerreal Estimator? 15-826 Property Owner SWAYING PALMS NAUAI VENTURE LP Data 09I2212015 Address 5-6920 Kuhio Hwy Surveyed By Katherine A. Lewi City Hanalei L Cost as of September 2015 State/Province HI Zip/Postal Code 96714 Appraisal For Individual - Eric Kleinbub Type Single -Family Residence Quality Very Good Total Floor Area 2,660 We Ranch 11.5-Story Number of Units 1 Exterior Walls Frame with Hard! Board Siding 2,660 SF Interior Wall Height 8 feet Basement Depth None Age 57 Condition Very Good l Good Region: --- -Western ❑-Central ❑-Easlem - Factor Quantity Cost4.46 Extended Cost 1. COMPUTE RESIDENCE BASIC COST WdFactoht x Floor Area x ss`Ficost 2,6 60 11 $ 3041463.60 Square Fool and Lump Sum Adjustments + - 2. Roofing Wood Shake (base) 2,060 3. Energy: ® Mild ❑ Moderate ❑ Extreme ❑ Supermsulated 2,660 -1.27 X -31378.20 4. Foundation: N Mild ❑ Moderate ❑ Extreme Hillside: ❑ Flat ❑ Moderate ❑ Steep 21080 -2,37 X -4,929.60 5. Seismic: ® None ❑ 1 ❑ 2 ❑ 3 ❑ 4 Wind: ❑ No ❑ Yes 6. Subfloor Wood Subfloor (base) 21660 7. Floorinsulation: ❑ Mild ❑ Moderate ❑ Extreme B. Floor Cover Allowance (single family) 21660 9.14 X 24,312.40 9. Plasterinterior 10. Heating/Cooling No Heating 21660 -4.07 X -10;826.20 11. Plumbing Futures Total 17 Base 14 3 21475.00 X 71425.00 12. Plumbing Rough -ins Total 1 Base 1 13. Dormers 14. Fireplaces Single one-story 1 51900.00 X 5,900.0C 15. Built-in Appliances 16. SUBTOTAL: ADJUSTED RESIDENCE COST: Total of Lines 1 to 15. $ 3221967.00 17. Basement Laundry & Storage 82 SF oai $87,50=(31.30+37.75+18.45) 821 87,50 X 7,175,00 18. Porches, Decks, Breezeways, etc. Decks 333 SF @ $15.86 3331 15.86 X 5,281.38 19. Balconies Lanai 683 SF @ $31.74 = (15.86 + 15.88) 6831 31.74 X 21,678.42 20. Exterior6talmays 21. SUBTOTAL: RESIDENCE COST: Total of Lines 16 to 20. $ 357,101,80 22, Garages/Carports 23. SUBTOTAL OF ALL BUILDING IMPROVEMENTS. Total of Lines 21 and 22. $ 357,101.80 24. Multipliers: Current Cost 1.00 xLocal 1.91 xOther 1,25 - 2.39 25. Additional Components Appliances - see next page 4,320.00 26. TOTAL BUILDING COST NEW: Line 23x Line 24+Line 25. $ 857,793.30 27. Depreciation: Physical and Functional Physical Depreciation 16.67 % based on 10 year effective age. 1423994.00 28. External and/ or Excessive Functional Obsolescence None 29. Additional Depreciation None 30. TOTAL DEPRECIATED COST: Line 26-Lines 27 to 29. $ 714,799.30 31. Yard Improvements Cesspool & Grass Crete Driveway 25,000,00 32. Miscellaneous 33. Land/Site Value Not Applicable 34. TOTAL INDICATED VALUE: Total of Lines 30 to 33. $ 739,799.30 FORM 1007 Component Quantity Unit Cost Extended Cost Depreciation Age/Life % Total APPLIANCES: (from sears.corm Frigidare Refrigerator (Model #FGHC2331) 1 1,510.00 10510.00 1,510.00 Kenmore Range (Model #73433) 1 760.00 760.00 760.00 Kenmore Dishwasher (Model #12773) 1 810.00 810.00 610.00 Kenmore Hoodi (Model #52052) 1 180.00 180.00 180.00 Kenmore Washer (Model 925132) 1 530,00 530.00 530.00 Kenmore Dryer (Model #561132) 1 530.00 530.001 530.00 Total Additions 4,320.00 NOTES AND COMPUTATIONS Line 24: Other @ 1.12 This adjustment reflects Special Local Conditions. it is derived from analysis of actual contractor costs as compared to Marshall &Swift. I looked at 3 properties to arrive at this multiplier. See Addendum "A" for further explanation. _ FOFM 1007 ©2004. Copies of Nis form msy be purchased from Marshall & SwItGBOECKH, LLC, 91fi NNehia Baulevare, Bth Floor, Los Mgeles, CA 900173409. 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H E-faa .,..... + 595 = 4102 3272 d<.OS 28.30 1P,FP�cES: 3ingla one sfory 5,90 --.. .Om, s¢inN ef=l .laslerd&oml „oleo Atltl Tor Dvcony roofs and caling ioml the penhlb2E-sways table spore 7,T50 o`M E116 Single ova -story . . 3,555- ,,,bp data, drop a. + 1,380 E:.K ERICR STAIRWAYS PER MACHT dingle N2am[Oty .. 6,3510- 61395 oven. .. * 1,700 t Approximsteiy 14 steps per flight) Double onssi0�1... 3,955- 8,3W even micg•.+,e,,.a combo.. 2,8]5 For landings. use bar May costs. Ooilpls M+o-slary ... 4,665- ivaminy ovene + 1,025 a - .nf e e e Y !aJbla f"nceestary 7,485- 4,500 14,?20 Oven, miQoi•.tl'e . - 525 l S2,00 522en 53,725 Over, vDall a.... - 10,G00 lapasisloul PI- soil 2000 ,S - s3z2a Giac;-vantetl, g35 gha Fargo Coo`r �+,alz casks + 1.E25 _s=ru .. ,..175 ..... a. ELsS�cM1T✓.LC6 rFF=hZ33OECLA -Cs ti at tte=>, rni^ 'cH .r . .. •Ct_, Page 2 GTVM7 rRT i111dt' VentureAddre Endof/Gllent unty Kauai Bta[e HI _. Zip Code 96714 mEricKlelnbub Individual EXPLANATION OF ADJUSTMENTS AND VALUE CONCLUSION —Addendum "A" The appraisal process includes the following steps: 1) Identify the subject property and property rights to be appraised. 2) Conduct a preliminary search of recent similar sales in the subject area. The appraiser will also consider general market conditions and current trends with respect to employment opportunities, available financing and general economic conditions. 3) Perform a physical inspection of the subject property. The appraiser is trained to observe physical features that have impact on value such as quality and condition of improvements. The appraiser is not a structural engineer, termite inspector, building contractor or any other such tradesman. The appraiser will however make recommendations if any physical, external or economic conditions are observed that could affect marketability of the subject property. 4) Highest and Best Use is considered for the subject property. Highest and Best Use is defined. as follows: The reasonably probable legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria are: a) Legally Permissible b) Physically Possible c) Financially Feasible) and d) Maximum Profitability. In estimating market value of the subject's land only, the appraiser has considered highest and best use of the subject site as if vacant and ready for development. It is the appraiser's opinion that the current residential use is the Highest and Best Use for the subject property as of the date of value in this report. 5) The report is then prepared according the USPAP guidelines. This includes a second review of the preliminary data to extract and consider the most relevant factors applicable to the subject property to arrive at a value conclusion. This is an Appraisal Report and should be in compliance with Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) as it applies to an Appraisal Report. Therefore, data, reasoning and analysis that were used to arrive at an estimated market value are summarized. The supporting documentation is retained in the appraiser's files. The report includes all data and information needed to lead an informed reader to a similar value conclusion. 6) A final reconciliation is performed to arrive at a final estimate of value. 7) Delivery of the appraisal report completes the assignment. The appraisal process has been utilized to arrive at a value estimate for the subject property. There are three generally recognized approaches to value, the Cost Approach, Income Approach and Direct Sales Comparison Approach. These are the proven reliable methods that are used in the valuation of real property. Each approach to value is discussed below. Page 1 of 3 :r17 i�d IIIIIIIIIIIIIISMIR WON Borrower Swa inc Palms Kauai Venture Pro a Address 5-6920 Kuhio Hwv C' Nanalei County Kauai _, State HI Zip Code 98714 Lender/Client Individual - Eric Kleinbub Addendum A" — page 2 of 3 DIRECT SALES COMPARISON APPROACH The Direct Sales Comparison Approach is a method where the appraiser arrives at a value indication for the subject property by analyzing recent sales of similar properties In the subject or competing area. This is considered to be the most reliable method of value if adequate market data is available. The appraiser has performed a search for recent sales of similar properties in the subject area (or similar area). Once the comparables have been selected and sales information confirmed, adjustments are applied to reflect market reaction to various features.. Appropriate adjustments are applied to arrive at a value conclusion. The prices paid for these similar properties are considered to be a reliable indicator of value. The purpose of this assignment is to value the improvements only (replacement cost new less depreciation). Therefore, the Sales Comparison Approach was not applicable for this assignment. COST APPROACH The Cost Approach to value assumes that a knowledgeable buyer will pay no more for a property than the cost to create it in its present condition. In this approach the replacement cost new of the subject improvements is calculated. Any observed depreciation is estimated and deducted to arrive at a depreciated value. This figure is usually added to the Fee Simple market value of the subject site as if vacant and ready for development. The "as is" value of any site improvements is then added to arrive at the indicated value by cost approach. Site value is derived from market analysis. My scope of work is to estimate replacement Cost of the improvements only; therefore, there is no land included in my final opinion of value. My Cost Approach was derived from the Marshall & Swift Cost Approach Handbook combined with local contractor cost estimates. The Marshall & Swift cost estimates were compared with my knowledge of local construction costs from local builders and suppliers. This data was derived from phone conversations with several local contractors and suppliers combined with information in my files from construction loan appraisals. The local multiplier in Marshall & Swift does not keep up with actual building costs on Kauai for properties similar to the subject. Therefore, an additional adjustment for Special Local Conditions was required. I developed the Cost Approach for the subject using Local Contractor cost estimated (see page 2 of the appraisal report). This was the basis for my adjustment for Special Local Conditions. The attached Marshall & Swift Square Foot Appraisal Form was used because this is the nationally recognized standard in the Cost Approach form appraisals. Depreciation was calculated on a straight line basis. The estimated effective age for the improvements is 10 years. Based on a total economic life of 60 years the depreciation was calculated at 16.67%. 1 put the most weight on the Marshall & Swift method because this is a nationally recognized methodology. Therefore, the indicated value is by Cost Approach is $739,799; rounded to $740,000. INCOME APPROACH The Income Approach to value converts rental income to value by calculating and then applying a Gross Rent Multiplier (GRM) to actual or estimated rental income for the subject property. The accuracy of this approach depends on availability of information about long term rentals of similar properties in the subject area that have sold recently (rented at the time of sale). The propose of this appraisal is to estimate replacement cost new. Therefore, the Income Approach was not developed. FINAL RECONCILIATION The final value stated in this appraisal is not a "market value" as defined in the addenda of the report. This appraisal has been completed using a Marshall & Swift Cost Approach Handbook. The intended use is to estimate replacement Cost new of the subject improvements; therefore, the Cost Approach was the only applicable approach to value. Therefore, it is my opinion that the estimated Market Value of the subject dwelling, as of September 22, 2015 is: SEVEN HUNDRED forty ($740,000) THOUSAND DOLLARS - Borrower Swavinp Palms Kauai Venture Pra e Atldress 5-6920 Kuhio Hwy _________. ._.. _ City Hanalei Counly Kauai r Slate HI Zip Code 96714 Lender/Client Individual - Eric Kleinbub Subject Front 5-6920 Kuhio Hwy Subject Entry Subject Street Borrower Swa in Palms Kauai Venture Pro e Add_r_e_ss 5-6920 Kuhio Hwy C' Hanalei County Kauai State HI Zi Code 96714 Lender/Client Individual - Eric Kleinbub Subject Living Room 5-6920 Kuhio Hwy Subject Kitchen Subject ®fining Area Borrower Swaving Palms Kauai Venture Pro erVddress 5.6920 Kuhio Hwy ___ Ciry Hanalei Coumy Kauai State HI Zip Code 96714 LendedCllent _ Individual - Eric Kleinbub Living Room Again 5-6920 Kuhio Hwy Main Living Area Subject Den Subject R000s Borrower Swa ino Palms, Kauai Venture Property Address 5-692o Kuhia Hwy C' Hanalei County KauaiState HI Zip Code 96714 _ Lender/Client Individual -Erc Klembub .ySubject Bath r p'� f ell „well ele- Ile I �b 114 %I% % Subject Boom Subject Bath 5-6920 Kuhio Hwy Subject Bedroom Subject Sitting Area Borrower Swaving Palms Kauai Venture Propaq Address 5-6920 Kuhio HM City_ HanaleiCounty Kauai State HI Zip Code 96714 Lender/Client Individual - Eric Kleinbub Subject Wet Bar 5-6920 Kuhio Hwy Subject Bath Subject Bedroom 807ower Swaying Palms Kauai Venture Property Add25s 5-6920 Kuhio Hwy C' Hanalei_ County Kauai State HI Zip Code 96714 Lender/Client Individual - Erlc Kleinbub WM . WM . 1 6 d - ..",.�Jvr el Subject Sitting Area 5-6920 Kunio Hwy Subject Wet Bar Subject Bath Borrower Swaying Palms Kauai Venture Pro ert�Address 5-6s20 Kuhio Hwy C' Hanalei County Kauai_ State_ HIZip Code 96714 Lender/Uent _ Individual - Eric Kleinbub Subject Lanai 5-6920 Kuhio Hwy Subject Laundry Subject Lanai Borrower SwavinQ Palms Kauai Venture Pro e Ad_d2ss 5-6920 Kuhio Hwv _ _ City Hanalei ___, County Kauai sm HI Zip Cade 96714 _ Lender/Client Individual -Enc Kleinbub Subject Deck 5E920 Kuhio Hwy Subject Deck View Subject Side Borrower Swaving Palms Kauai Venture ProperIv Address 5-6920 Kuhlo Hw„y C' Hanalei Coun Kauai State HI Zip Code 96714 Lender/Client Individual - Eric Kleinbub i Subject Side 5-6920 Kuhio Hwy t, t,w y Subject Rear Subject Side Borrower Swavina Palms Kauai Venture Property Address 5-6920 Kuhio Hwy uy Hanalei County Kauai State HI Zip Code 96714 Lender/Client Individual - Eric KlemWb Front Yard �F d 5-6920 Kuhio Hwy Suhject Front Again ng Palms Kauai Venture0 Kuhio Hwy___eiCounty Etin Kauai State HI Zlp Code 96714 ual - Eric Kleinbub Deck Bedroom Deck 261 ISTFLODR Bath Dining Dann - Living Room Kitchen 30, in Bedroom Lanai M Sitting Area 20' Bath bath dining Area ea 3 Bedroom 20, Lanai r cnmmeme: AREA CALCULATIONS SUMMARY Code Description Net Size Net TOWls_ GDAL First Floor 2080.00 2060.00 Gr.no cond Floor 580.00 580.00 F/F Deck 212.50 Deck 120.00 Lanai 683.00 1015.50 OTH Storage 40.00 Laundry 42.00 82.00 2ND FLOOR Bedroom Den Den Bedrvum91 LIVING AREA BREAKDONM Breakdown 8u6totals Fssst Floor 51.0 x 20.0 1020.00 20.0 x 44.0 880.00 12.0 x 15.0 180.00 Second Floor 40,0 x 13.0 520.00 6.0 x 5.0 BODO 6.0 x 5.0 3DDD Net LIVABLE Area (rounded) 2660 6ltems (rounded) 2660 � �®± �\\\ m ) Borrower Palms Kauai Venture _____ __ __Swaying PfppeRy Address 5-6920 Kuhio Hwy Ci Hanalei —Dun iy Kauai State HI Zip Code 96714 LenderMlent Individual - Eric Kleinbub KATHERINE ARNSTRONG LEWI P 0 BOX 1054 L IHUE HI 96766 LICENSE NUMBER EXPIRATION DATE C - 71 231 05 STATE OF HAWAII DEPART1bENT OF COMMERCE AND fANSUMEA AFFAIflS CERTIFIED RESIDENTIAL APPRAISER KATHERINE ARMSTRONG LEWI P 0 BOX 1054 LIHUE HI 96766 OF LILACC-dSE� I-"- V"L �1 V"- CRA - 751 3V T/ Q 6 l_7 d 2_ pp Z W m Gl .,..9kI .Now C4 �\ - _ \ ( � o { . _ ) . Ll& !—L-V , � � /) � � �° Q �� � o=. z �w e� N � 0 i ,: u K O O U �h O Bernard P. Carvalho, Jr. Mayor Lyle Tabata Acting County Engineer Nadine Nakamura Managigling Director DEPARTMENT OF PUBLIC WORKS Deputy County Engineer - , 4444 Rice S[reet, Suite 275, LYhu`e, Hawaii 96766 TEL (808) 241-4992 FAX (808) 241-6604 June 17, 2016 PO BOX 510010 Kealia,11196751 Attn: Shawn Smith Subject: S.HOREI.INF, 5ETBACKAPPLICATTON SUBSTANTIAL IMPROVEMENT DETERMINATION FREDRICK KLEINBUB, INTERIOR RENOVATIONS TMK: (4) 5-8-012:014 PW OS.Jb.J59 Dear Mr. Smith, The Kauai County Shoreline Setback and Coastal Protection Ordinance (Ordinance No. 979) Section 8-27.2 defines substantial improvement as any cumulative series of repairs, reconstruotion, improvements, or additions to a structure over a ten (10) year period, where the cumulative cost equals or exceeds fifty percent (50%) of the market value of the structure before the start of construction of the first improvement during that ten (10) year period. For the purposes of this definition, substantial improvement is considered to occur when the first alteration of any wall, ceiling, floor, or other structural part of the building commences, whether or not that alteration affects the external dimensions of the structure." The Department of Public Works (DPW} Engineering Division has reviewed the proposed interior renovations described in your• application dated May 3, 2016. The Engineering Division bas determined that the proposed interior renovations of the existing structure does not constitute a substantial improvement, A summary of the calculations is provided below, IkCarket Value There were no ofhez• building permits approved for flue structlrre during the past ten years• An appraisal was completed by Katherine A. Lewi of Appraisal Services Kauai, She estimated fhe market value of the real property to be $740,000, as of September 22, 2015, which is the effective date of the appraisal. The appraisal was prepared by a professional appraiser licensed in the State of Ilawai`i (4CRA 0000751) and the market value was based on the "Cost Approach." We have reviewed the appraisal and have determined that for the purposes of making a Substantial Improvement Determination, we will be usini; the value of $725,500. This market value excludes the value of the appliances and the driveway that were included in the appraisal, An EcJalal Opportunity Employer Eric Kleinbub nterior R,enovalions Tune 17, 2016 Cost of IrnFnnvements The total cost "*VAovements-for interior --renovations 20 the existing -structure is -taken to be -the -- cost estimate of $361,995 that was prepared by Williams Construction, Inc, and submitted to the Engineering Division via email on June 9, 2016, Sacmmary The cost of improvements compared to the market value is: Cost of improvements (past 1Q years): $361,995 Market Value (Appraisal "Cost Approach"): $725,500 = 0.4990 or 49.9% The tatal cost of improvements was then compared to the market value. Since the total cost does not exceed 50% of the market value, the improvement is not considered to be substantial. Based on our records there were no other permits for the structure within the past ten years. However, if any unpermitted work has been done, if there are modifications to this application, or if the actual cost of improvements is greater than the estimate provided, our determination shall be considered void and the structure must be re-evaluated. To ensure that the proposed improvements are in accordance with the estimate provided by Williams Construction, the Engineering Division may conduct periodic inspections of the construction and request that copies of payment invoices be provided for our review. If you lxave any questions or need additional information, contact Stanford Iwamoto at (808) 2414896 or siwamotoLwkauai.gov. Sincerely, MICHAEL MOULE, P.E. Chief, Engineering Division SUBV Attachments Copy: Design and Permitting Planning Bernard P. Carvalko, Ix. Mayor Nadine K. Nakamura Managing Director Avery Youn, Arelriteet 4-1525 Kuhio Highway Kapaa Hawaii 96746 DEPARTMENT OF PUBLIC WORKS County of Kaua`4 State of Hawaii 4444 Rice Sheet, Suite 275, Lihu`e, Email 96766 TEL (808)-241-4992 FAX (808) 241-6604 .Tune 16, 2016 Subject: SHORELINE SETBACK SUBSTANTIAL IMPROVEMENT DETERMINATION Fox Gray Roof Repair and Lanai Extensions 5438 Weke Road, Hanalei, Hawaii, 96822 TMK: (4) 5-5-004:012 Dear Mr. Youn, Lyle Tabata Acting County Engineer This letter supersedes the Shoreline Setback Substantial Improvement Determination letter for TMK (4) 5-5-004:012 that was dated September 4, 2015. The Kauai County Shoreline Setback aird Coastal Protection Ordinance. (Ordinance No. 979} Beckon 8-27.2 defines substantial improvement as any cum ulat ve series of repairs, reconstruction, improvements, or additions to a structure over a ten (10) year period, where the cumulative cost equals or exceeds fifty percent (50%) of the market value of the structure before the start of construction of the first improvement during that ten (10) year period. For the purposes of this definition, substantial improvement is considered to occur when the first alteration of any wall, ceiling, floor, or other structural part of the building commences, whether or not that alteration affects the external dimensions of the structure." The Department of Public Works F,ngineering Division (DPW) has reviewed the additional improvements described in your letter dated May 21, 2016. There are two structures on the subject property: Structure No. 1 is a residential structure (main house) and the improvements consisted of re- roofrngthe building and Lanai extensions. DPW has determined that the improvements do oat constitute a substantial improvement. A summary of the calculations is provided below. An Egual tJppor•funity Employer Avery Youn Substantial Determination for ]'KIK 5-5-004: 012 Jane 16, 2016 Structure No. 2 is a workshop/storage (former garage) building and will be re -located on the parcel. Relocation is not included in the definition of a substantial improvement. Therefore the relocation of Structure No 2 is not considered a substantial improvement. Mrtrhet Value There are no other building permits approved f'or the stricture over the last ten years. Therefore, the market value used in the calculations is most current Replacement Cost New Less Depreciation (RCNLD) value for the structrue. The most current (2012) RCNLD on file with the County's Real Property Assessment Division for structure No. 1 is $168,000, The Engineering Division laas used the RCNLD as determined by the County's Real Property Assessment Division in its calculations. If the owner chooses to dispute this value, then an appraisal of the structure mustbe provided at the owner's expense. The appraisal shall be prepared by a professional appraiser licensed in the State of Hawaii and the market value shall be based on the "Cost Approach" (or Replacement Cost New Less Depreciation). Cost of.Inrpiovements The total cost of improvements was estimated to be $53,007, This includes $43,247 for re- roofing and $9760 for the extension of the lanai. These amounts were taken from proposals prepared by Offley Construction and dated June 12, 2015 and September 28, 2015, respectively. Sranmury the cost of improvements compared to the market value is summarized as follows: Cost of Impravernents (past 10 years): $53,007 *Market Value (Real Property): $ 168,000 0.316 or 31.6% Since the total cost does not exceed SO% of the market value, the improvement is not considered to be substantial. I3ased on our records there were no other permits for the structure within the Bast ten years. However, if any nnpennitted work has been done, or if there are modifications to this application, our determination shall be considered void and the structure must be re-evaluated. If you have any questions or need additional information, contact Stanford Iwamoto at (808) 241-4896 or siwamoto n� cauai.gov. Sincerely, Tiv/SI MICHAEL MOULE, P.E. Copy to: Design and Permitting Chief, Engineering Division Planning