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HomeMy WebLinkAboutRES 108 Draft 01 2012-2014 4oJMiYOSN ';;j•,, COUNTY OF HAWAII ':'‘„ ,''����'` STATE OF HAWAII 4rE�oF'N►.•d RESOLUTION NO. 108 13 RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF OFFICE SPACE FOR THE OFFICE OF THE PROSECUTING ATTORNEY IN WAIMEA BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII. WHEREAS, Section 10-11 of the County Charter requires that any contract, lease or other obligation requiring payment of funds from the appropriations of a later fiscal year or of more than one fiscal year be approved by resolution; and WHEREAS, the Office of the Prosecuting Attorney, herein after"Prosecutors", currently occupies office space at TMK (3) 6-4-006-004 (por.) on a year to year basis and said office space has proved to be adequate for its current needs in terms of space and privacy for servicing victims and witnesses of crimes in the North and South Kohala and Hamakua districts, as well as victims and witnesses of crimes occurring in other areas but who may live in those districts; and WHEREAS, the Prosecutors currently station a full time deputy prosecuting attorney and full time clerical staff at the Waimea office, as well as a victim counselor who often spends a full day at that office making this space suitable for conducting this type of activity in conjunction with victim and witness interviews; and WHEREAS, the County wishes to enter into a multi-year lease with Starr Equities, Inc., a Domestic Profit Corporation, for five (5) years with an option to extend the lease for another same term of five (5) years; and WHEREAS, a copy of the proposed Lease is attached as Exhibit"A" hereto; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: 1. That the Mayor is hereby authorized to enter into a multi-year lease agreement for office space located at the Holomua Center in the District of Waimea. 2. That sufficient funds be budgeted in future fiscal years to cover the anticipated obligations of the County under the terms of the lease agreement. BE IT FINALLY RESOLVED that a copy of this resolution be forwarded to: (1) Mayor William P. Kenoi; (2) Department of Finance; (3) Office of the Prosecuting Attorney; and(4) Starr Equities, Inc., 1942 Main Street, Suite 104, Wailuku, Hawai`i 96793. Dated at Kona , Hawai`i, this 18th day of June , 2013. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAI`I COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES I NOES ABS EX Hilo, Hawai`i EOFF X FORD X I hereby certify that the foregoing RESOLUTION was by ILAGAN X the vote indicated to the right hereof adopted by the COUNCIL of the KANUHA County of Hawaii on_ June 18, 2013 -KERN X _ X ONISHI X i ATTEST: POINDEXTER X W[LLE X YOSHIMOTO X 8 0 ' �, ' 1 0 Reference: C-265/FC-66 COUNTY CLERK CHAIRPERSON& PRESIDING OFFICER RESOLUTION NO. 1 08 13 2 Exhibit "A" LAND COURT REGULAR SYSTEM (AREA ABOVE RESERVED FOR RECORDING INFORMATION) After Recordation,Return by ®Mail or❑Pick-up Phone#: 961-8251 FILL IN NAME AND ADDRESS BELOW: Office of the Corporation Counsel(CTM) 333 Kilauea Avenue,2m Floor Hilo,Hawaii 96720 DOCUMENT CONTAINS PAGES TITLE OF DOCUMENT: COUNTY OF HAWAII OFFICE AND SPACE LEASE AGREEMENT PARTIES TO DOCUMENT LESSOR/LANDLORD: STARR EQUITIES,INC. 1942 Main Street,Suite 104 Wailuku,Hawaii 96793 LESSEE/TENANT: COUNTY OF HAWAII 25 Aupuni Street Hilo,Hawaii 96720 AFFECTS TAX MAP KEY: (3)6-4-006:004(por.) COUNTY OF HAWAII OFFICE AND SPACE LEASE AGREEMENT This LEASE AGREEMENT,made this day of ,2013,by and between STARR EQUITIES,INC.,whose mailing address is 1942 Main Street, Suite 104, Wailuku,Hawai`i 96793 (hereinafter referred to as"Landlord"or"Lessor"),and the COUNTY OF HAWAII,a municipal corporation of the State of Hawai`i,whose principal place of business and mailing address is 25 Aupuni Street,Hilo,Hawai`i 96720(hereinafter referred to as"Tenant"or "Lessee"). 1. Grant. In consideration of the rents,covenants,and agreements hereinafter reserved and contained and on the part of the Tenant to be observed and performed,the Landlord demises and leases to the Tenant,and Tenant rents from the Landlord,the following for use as an office space for the Tenant: Those certain premises consisting of approximately 600 square feet of office space, in the Holomua Center, identified as space No. C-3, located at 64-1067 Mamalahoa Hwy, District of Waimea, County and State of Hawai`i, and hereinafter"the premises",more particularly described in Exhibit A. Together with the full right of access to said premises in common with others over, across, and through any alleys, common entrances, lobbies, stairways,halls, elevators, and corridors in or around said building. 2. Use and Fitness. The premises shall be fit to be utilized as an office space for the Office of the Prosecuting Attorney. 3. Term. The term of this lease and the Tenant's obligation to pay rent hereunder, shall be for five(5)years,commencing on July 1,2013 to June 30,2018,or the date of delivery of the space suitable for occupancy under the terms of this lease agreement,whichever is later. 4. Delivery of Possession. If the Landlord,for any reason,cannot deliver possession of the demised premises to the Tenant at the commencement of the lease term,as specified above, this lease agreement shall not be void or voidable;but in that event,Landlord shall defer the obligation to pay rent until such occupancy,however the expiration date of the lease shall not be adjusted back and the lease will expire on June 30,2018. If the Landlord cannot deliver occupancy by July 1,2013,the Tenant reserves the right to cancel this lease agreement. 5. Quiet Enjoyment. Landlord agrees that upon payment by the Tenant of the rent herein provided and upon the faithful observance and performance of all the covenants,terms,and conditions in this lease on the part of the Tenant to be observed and performed,the Tenant shall peaceably and quietly hold and enjoy the leased premises for the term of this lease 2 without hindrance or interruption by the Landlord or any other person or persons lawfully or equitably claiming by,through,or under the Landlord. 6. Rent. Tenant shall pay to the Landlord,in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts,without any setoff or deduction whatsoever. A common area maintenance charge of FIFTY-SIX CENTS per square foot,per month($0.56/sq. ft./month)subject to yearly adjustment based on operating costs,will be paid in addition to the rent which is established as follows: Year Rate/Month 1. $870.00 2. $896.10 3. $922.98 4. $950.67 5. $979.19 Tenant reserves the right to prepay rent one year in advance. 7. Payment. Payment of rent shall be made to Clark Realty Corporation c/o Clark Commercial Group, 75-5722 Kuakini Highway, Suite 214,Kailua-Kona,Hawaii 96740. 8. Excise Tax. In addition to the rent,the Tenant shall pay the Hawai`i general excise tax (currently 4.166%),or any successor tax,which may be payable thereon. 9. Real Property Tax. The Tenant shall be responsible for its pro-rata share of the real property taxes. However,Landlord agrees to timely submit a claim for partial exemption from real property tax,as provided by Section 19-84,Hawai`i County Code(2005 edition,as amended). Tenant will cooperate fully with the Landlord in obtaining such exemption. Any exemptions provided to Landlord as a result,shall be credited directly towards Tenant's obligation for CAM charges. 10. Deposit. No deposit shall be required. 11. Common Area Maintenance and Building Services. The common area maintenance charge shall be paid monthly, in addition to the rent,and at the rate noted in paragraph 6 of this lease agreement. Landlord shall operate and maintain the property,common area and facilities therein in a manner deemed as reasonable,appropriate and in the best interest of the tenants of the property. Landlord shall be responsible for all building services included in the CAM charges as provided by Holomua Center. Such services shall include,but not be limited to electricity;water; supplies for restroom;janitorial services;trash removal for common areas and dumpster for Tenant use. All such expenses for the maintenance and operation shall be included in the rental charge. The term"common area and facilities"as used in this lease agreement shall be deemed to include those portions of the property as are designated and/or designed for the non-exclusive use of the Tenant in common with other authorized users,and shall include,but not be limited to: parking areas;roadways;service areas;driveways;areas 3 of ingress and egress; landscaped and planted areas;sidewalks and other pedestrian ways; corridors;courts;public washrooms;drinking fountains;community rooms;toilets; stairs; ramps;buildings or structures used in connection with the maintenance of said common area; and all other similar facilities,from time to time provided for the joint use and convenience of such authorized users. 12. Hold Over Rent. Any holding over after the expiration of the term hereof,with the consent of Landlord, shall be construed as a tenancy from month-to-month. Rent for any hold over period after the expiration of this lease shall be at a rate of the last month's rent and CAM,and all other terms of this lease agreement shall apply. 13. Utility and Similar Charges. Within the leased premises,the Tenant shall be responsible for janitorial maintenance of the interior of the leased space;electricity as determined on a pro rata basis;trash removal to a common area dumpster;telephone services;and any other special services that may be required by the Tenant. 14. Assignment and Sublease. Tenant shall not,without the prior written consent of Landlord, which consent will not be unreasonably withheld,assign or mortgage this lease or any interest herein,or sublet or grant any concession or license to use the premises or any part thereof,or allow any other person to use the whole or any part of the premises. 15. Use and Maintenance of Premises. Tenant shall use the leased premises solely for the purpose of office and warehouse space and shall not use the same for any other purpose without the prior written consent of Landlord. Tenant shall not make or suffer any waste,strip or unlawful, improper,or offensive use of said premises. Tenant shall not do or suffer any act or carry on any practice which may damage the premises or become a nuisance to other tenants and owners in the building in which the premises are located. Tenant shall keep the premises in good order,condition and repair,and in a strictly clean and sanitary condition. 16. Inspection. Landlord and Landlord's agents will be allowed to enter said premises to examine the state of repair and condition thereof upon reasonable notice to Tenant. Such inspection shall occur during normal business hours unless agreed to by Tenant. 17. Signs. Tenant shall not,without the prior written consent of Landlord,erect, install,or affix any sign about the exterior or on the windows of the premises. Tenant shall allow Landlord, during the last three(3)months of the term of this lease,to affix or keep on the premises a "For Lease"or"For Sale"notice. 18. Alterations. Tenant shall not,without the prior written consent of Landlord,make any alterations or additions to said premises. 19. Landlord's and Agent's Immunity and Insurance. The Tenant is self-insured for liability arising out of Tenant's use of the leased premises and/or any damages,claims of damages,or lawsuits for same,by anyone using or in the leased premises,and shall hold harmless and indemnify and defend Landlord, if the Landlord is named as a defendant in any such suit. 4 20. Surrender. The Tenant shall,at the end of the term of this lease or earlier termination thereof, peaceably and quietly vacate and deliver up to Landlord the possession of the premises, together with all additions and alterations made by Tenant,unless Landlord requires removal of the same in good order,condition and repair,reasonable wear and tear excepted. Tenant may remove all moveable trade fixtures(if installed by Tenant)on the condition that Tenant shall repair any damage to the premises resulting from the removal of said fixtures. Any property of the Tenant remaining on the premises after the termination of the lease may be disposed of by the Landlord in any manner it sees fit,without any liability whatsoever to the Landlord. The proceeds of such disposition,if any, shall be the sole property of the Landlord. 21. Condemnation. a. Automatic Termination of Lease. Except as may otherwise be required by any mortgage on the property,if the whole of the premises shall be taken by any public authority under the power of eminent domain,then the term of this lease shall cease as of the day possession is taken by such public authority,and all rent shall be paid up to that date. If only a part of the premises shall be taken under eminent domain,this lease shall terminate as to the portion taken,and unless this lease shall be terminated as hereinafter provided, it shall continue in full force and effect as to the remainder of the premises,and the base rent shall be reduced in the proportion the floor area taken bears to the total floor area leased,and the Tenant,at its own cost and expense, shall make all necessary repairs and alterations to the premises required by such taking. b. Option to Cancel. If the remainder of the premises cannot be made tenantable for the purposes for which the Tenant has been using the premises,the Tenant shall have the option,to be exercised within thirty(30)days after the filing of such eminent domain action,of canceling this lease effective as of the date the condemning authority shall take possession;provided,however,that if more than fifty percent(50%)of the floor area of the premises shall be taken under power of eminent domain,either party,by written notice to the other party,delivered on or before the date of surrendering possession to the public authority,may terminate this lease,effective as of such surrender of possession.All compensation and damages of any type awarded for any taking,whole or partial, shall belong to and is the property of the Landlord,except as hereinafter provided. 22. Destruction of Premises. If the premises are partially or totally damaged or destroyed by fire or other casualty so as to become partially or totally untenantable,such damage or destruction, insofar as the same pertains to the building itself,exclusive of any damage to Tenant's fixtures,furniture or other property, shall be repaired or rebuilt at the discretion of the Landlord. Landlord shall advise Tenant within sixty(60)days after the casualty whether it intends to rebuild or repair. If the Landlord elects not to repair or rebuild,this lease shall terminate without further notice and the obligations of either party shall cease. No rent shall be payable from the date such casualty occurs until the repair or rebuilding shall be completed, 5 unless the premises shall be tenantable and there is no substantial interference with Tenant's business. 23. Subordination of Lease to Mortgage. Tenant agrees that this lease and all rights of Tenant hereunder shall be subject and subordinate to all present and future mortgages made or to be made by Landlord as security for any indebtedness of Landlord;provided,however,that the mortgagee shall agree to recognize this lease in the event of foreclosure and will cause the sale of said premises to be made subject to Tenant's lease,provided that the Tenant is not in default under any of the terms,conditions,or covenants of this lease at the time of such foreclosure. 24. Parking. Tenant shall have the right to shared used of the Holomua Center parking. 25. Additional Construction or Remodeling. Landlord reserves the right to remodel,repair,paint, or renovate the said building or do additional construction at any time. Said work shall be undertaken by Landlord with minimum interference or inconvenience to Tenant's use of the premises,and any interference or inconvenience resulting to Tenant or its use of the premises shall not constitute a breach or violation of Landlord's covenant of quiet enjoyment or any other covenant. If Landlord's additional work requires entry into Tenant's premises,Landlord and Tenant shall enter into a written agreement on the terms and conditions of such entry and work. 26. Americans with Disabilities Act. Landlord affirms and shall ensure that the building,all improvements ant its common areas comply with Title III of the Americans with Disabilities Act("ADA"). 27. Non-waiver of Breach. The acceptance of rent by Landlord shall not be deemed a waiver by Landlord of any breach by Tenant or of the right of Landlord to terminate this lease for any such breach,and that the failure of Landlord to insist upon strict performance of any covenant or condition of this lease,or to exercise any option herein conferred, shall not be construed as a waiver or relinquishment for the future of any such covenant or condition but the same shall remain in full force and effect. 28. Notice. a. Notices to the Tenant. All notices to be given to the Tenant should be given in writing and by depositing the same in the United States mail,registered or certified,postage prepaid,and addressed to the County of Hawai`i at 25 Aupuni Street,Hilo,Hawai`i 96720. b. Notice to Landlord. Notice to Landlord shall be given in writing personally to an agent or employee of Landlord or by depositing the same in the United States mail, registered or certified,postage prepaid,and addressed to Landlord at 1942 Main Street, Suite 104,Wailuku,HI 96793,or at such other addresses as Landlord may give to the Tenant in writing from time to time. 6 c. Time of Service. Any written notice sent by registered or certified mail shall be deemed to have been served as of the date it is mailed in accordance with the foregoing provisions. 29. Force Majeure. In the event that either Landlord or Tenant shall be delayed,hindered,or prevented from the performance of any act required under this lease agreement by reason of strikes, lockouts,labor troubles, inability to procure materials,failure of power,restrictive governmental laws or regulations,riots, insurrection,war,or other reason of like nature,not the fault of the party delayed in performing the work or doing the acts required under the terms of this lease agreement,then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. 30. Hazardous Materials. The Landlord affirms,upon due diligence,that the premises are free of hazardous materials. Landlord warrants that it has not received written notice from any governmental authority having jurisdiction over the premises that the premises is in violation of the Comprehensive Environmental Response,Compensation and Liability Act of 1989,as amended("CERCLA"),the Resources Conservation and Recovery Act of 1976,as amended ("RCRA"),the Toxic Substance Control Act,as amended,the Hazardous Materials Transportation Act,as amended,or any statute governing underground storage tanks or asbestos. Landlord represents and warrants that to Landlord's actual knowledge(without undertaking any investigation or inquiry)the premises do not contain any hazardous or toxic materials prohibited by law. Landlord shall indemnify and hold harmless the Tenant from and against any and all claims,demands or losses in connection with the release of hazardous or toxic materials caused by Landlord. Tenant shall indemnify and hold harmless the Landlord from and against all claims,demands or losses in connection with the release of hazardous or toxic materials caused by Tenant, its agents or employees. 31. Construction of Language. Nothing herein contained is intended or shall be construed as creating a relationship of principal and agent,or of a partnership or joint venture,between Landlord and Tenant. Wherever used herein,the singular number shall include the plural and the neuter gender shall include the masculine and feminine genders,unless the context clearly requires otherwise. The obligations of the parties executing this lease agreement shall be joint and several. The term"premises"shall mean the premises demised under the lease;the term "Landlord"shall include the Landlord,its successors,and assigns; and the term"Tenant"shall include Tenant and Tenant's successors and permitted assigns. 32. Facsimiles. The parties hereto agree that telephone facsimile(fax)copies of any documents required to be executed by the provisions herein will be accepted as if signed in person,as originals. Upon request,the party submitting the facsimile shall provide the original document within a reasonable time. However,failure to provide such an original shall have no effect upon the validity of the execution by facsimile. 33. Dispute Resolution/Forum Selection. Any dispute action or proceeding involving this lease, commenced by any party, if not resolved by mutual consent, shall be commenced in the District Courts of the Third Circuit,County and State of Hawai`i. 7 34. Governing Law. It is agreed that this lease agreement shall be governed by,construed,and enforced in accordance with the laws of the State of Hawaii. 35. Special Conditions. This offer shall be subject to the approval of the Hawai`i County Council. 36. Agency Disclosure. The County of Hawai`i is represented by the Property Management Division,Department of Finance,County of Hawai`i in this transaction. 37. Entire Agreement. This lease agreement,along with the accompanying Offer to Lease for the aforementioned premises,contains the entire agreement between the parties. Any agreement hereafter made shall be ineffective to change,modify,discharge or effect an abandonment of the lease, in whole or in part,unless such agreement is in writing and signed by the party against whom enforcement of the change,modification,discharge or abandonment is sought. It is expressly understood and agreed that each and all of the provisions of this lease agreement are conditions precedent to be faithfully and fully performed and observed by the Tenant and to entitle the Tenant to continue in possession of the premises hereunder;that said conditions are also covenants on the part of the Tenant;and that time of performance of each is of the essence of this lease. IN WITNESS WHEREOF,the parties hereto have entered into this agreement as of the day and year first above written. STARR EQUITIES,INC. By: Name: Title: LESSOR/LANDLORD COUNTY OF HAWAII RECOMMEND APPROVAL: By: Mitch Roth LESSEE/TENANT Prosecuting Attorney APPROVED AS TO FORM AND LEGALITY: CRAIG T.MASUDA Deputy Corporation Counsel County of Hawai`i 8 STA l'E OF HAWAII ) SS. COUNTY OF HAWAII ) On ,before me personally appeared to me personally known,who,being by me duly sworn(or affirmed),did say that is the of STARR EQUITIES,INC.,that said instrument was signed in behalf of the corporation by authority of its board of directors,and acknowledged the instrument to be the free act and deed of the incorporation. Signature Print or Type Name Notary Public, State of Hawai`i My Commission Expires: NOTARY CERTIFICATION Doc. Date: No. of Pages: Notary Circuit Name: Doc. COUNTY OF HAWAII Description: OFFICE AND WAREHOUSE SPACE LEASE AGREEMENT Notary Signature Date 9 STATE OF HAWAII ) SS. COUNTY OF HAWAII ) On this day of ,2013 before me personally appeared WILLIAM P.KENOI,to me personally known,who,being by me duly sworn,did say that he is the Mayor of the County of Hawai`i,a municipal corporation of the State of Hawai`i,that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawai`i,the foregoing instrument was signed and sealed on behalf of the County of Hawai`i by authority given to said Mayor of the County of Hawai`i by Sections 5-1.3 and 13-13 of the County Charter,County of Hawai`i(2010),as amended,and said WILLIAM P.KENOI acknowledged said instrument to be the free act and deed of said County of Hawai`i. Signature Print or Type Name Notary Public, State of Hawai`i My Commission Expires: NOTARY CERTIFICATION Doc. Date: No. of Pages: Notary Third Circuit Name: Doc. COUNTY OF HAWAII Description: OFFICE AND WAREHOUSE SPACE LEASE AGREEMENT Notary Signature Date 10 ------ . • •• :',* ! I . 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