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COUNTY OF HAWAI' I STATE OF HAWAI' I RESOLUTION NO. '~~~ ®~ RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE EXISTING LEASE WITH THE HAWAII ISLAND COMMUNITY DEVELOPMENT CORPORATION TO A TERM OF SIXTY-FIVE (65) YEARS. WHEREAS, the County of Hawaii owns a parcel containing 132,165 square feet of land located on Ainakea Drive, Kohala, Hawaii, TMK: 3/5-3-11:102 ("Parcel"); and WHEREAS, Chapter 2, Article 19, Section 2-120(a}(2), Hawaii County Code, as amended, provides that the County Council may direct the Finance Director to negotiate the disposition of real property by lease to non-profit organizations at such rentals and on such terms and conditions as deemed proper without notice or appraisal; and WHEREAS, on November 22, 2005, the Hawaii County Council approved Council Resolution 208-05 ("Resolution"), which authorized the Director of Finance to negotiate a lease with the Hawaii Island Community Development Corporation ("HICDC") for the development of a senior rental housing ("Project") on the Parcel; and WHEREAS, subsequent to approval of the Resolution, HICDC obtained approval from the State's Hawaii Housing Finance and Development Corporation for low-income housing tax credits ("Tax Credit") for the Project; and WHEREAS, the State imposes an affordability restriction of sixty- one (61) years ("Restriction") on its Tax Credit projects; and WHEREAS, the term of the lease for the Project ("Lease"), executed on February 22, 2008, is currently fifty-five (55) years; and WHEREAS, the Lease must be consistent with the Restriction so that HICDC will be eligible to utilize the Tax Credits; and WHEREAS, the HICDC will be responsible for compliance with the Tax Credit program requirements throughout the Restriction period; and WHEREAS, the State will monitor all aspects of compliance with the requirements of its Tax Credit program; and