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J~tV OF Ny~ <br /> <br /> Harry Kim William Takaba <br /> Mayor Director <br /> 'tF OF'HF'~p <br /> County of Hawaii <br /> Finance Department <br /> 25 Aupuni Street, Room 118 Hilo, Hawaii 96720 <br /> (808)961-8234 • Fax (808)961-8248 <br /> ~1'1'1~1'~f1~`11111 <br /> '1°`®: Honorable Curtis Tyler, Member <br /> Hawaii County Council <br /> ~r®a~: William Takaba, Director of Finance <br /> ®ate: March 27, 2001 <br /> fie: Resolution 61-01 <br /> Elderly Activities Division Offices Lease <br /> At the Finance Committee meeting of March 20, 2001, you asked me to follow-up on three <br /> major concerns that you had on the above-referenced lease. My staff and I met with the <br /> individuals who negotiated and drafted this lease last year to obtain the information that you <br /> requested. <br /> 1. Term of Lease. Although the terms of the two four-year lease renewals were not meant <br /> be "month-to-month," it can very well be interpreted to be so. Should the Department of <br /> Parks and Recreation (lessee) be given the authority to extend this lease for another four <br /> (4) years, a county attorney will amend the language to clarify that both four-year <br /> extensions are for the full four-year terms, and not month-to-month. <br /> 2. Common Area Maintenance (CAM). When this lease was negotiated, it was agreed <br /> that all utilities and maintenance charges would be the direct responsibility of the lessee. <br /> Therefore, no CAM charges were included in this lease, and "common area <br /> maintenance fee" should not have been referenced in the "Grace Period" section. This <br /> language will also be clarified if the four-year renewal is authorized. <br /> 3. Real Property Tax. The owner originally intended to pass on the cost of real property <br /> taxes to the lessee. Section 19-84 states, in part, that "Real property under lease to the <br /> State or the County under which lease the lessee is required to pay the taxes upon such <br /> property" shall be exempt from taxation. Accordingly, the lease stated that "There shall <br /> be no real property taxes on area rented by Lessee." <br /> hope that this clarifies the concerns that you brought up at the Finance Committee <br /> meeting. Should you need anything further, please call me. Thank you very much. <br /> wt <br /> <br />