HomeMy WebLinkAboutCOM 0208.000 2014-2016William P. Kenoi
Mayor
Deanna S. Sako
Director
Lisa K. Miura
Deputy Director
County of Hawaii
,
Finance Department
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25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720
(808) 961 -8234 • Fax (808) 961 -8569
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March 12, 2015
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Dru Kanuha, Council Chair and
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Members of the Hawaii County Council
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Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution for multi -year lease
Enclosed is a resolution authorizing the Department of Public Works to enter into a five -
year, multi -year lease for additional office space located next to the West Hawaii Traffic
Division's current facility, and which has the same Tax Map Key (TMK) of
(3) 8 -1- 016:039 (por.). The Department of Public Works indicates that this site is
needed to accommodate the expansion of their operations in West Hawaii.
If there are any questions, please feel free to contact Warren Lee, Director of the
Department of Public Works at 961 -8321.
Deanna S. Sako
Director of Finance
Enc.
cc: Public Works
Res. k-.-L(& -k5�
COMM. No. °20?
Ref. To:
Hawaii County is an Equal Opportunity Employer and Provider Ref.pate
Form #: B -52
7/18/91
DEPARTMENT:
STAFF CONTACT
A. REQUEST:
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
Public Works DATE
Ronald L_ Thiel, P.E.
02/26/2015
PHONE: 961 -8341
Please prepare a resolution for DPW - Traffic Division to enter into a multi -year lease agreement for
renting additional office space next to the West Hawai'i current base yard for five (5) years in the
amount of $6,000.00 per month commencing on May 1, 2015 and ending on April 30, 2020, with the
option to extend for two additional five (5) year terms. Lessor grants Lessee One (1) month free rent
for the purpose of mobilizing equipment and materials to the Premises. The parcel consists of
approximately 2,080 square feet building, and parking on tier 2; and 2,736 square feet building and
parking on tier 3, situate at 81 -6394 Mamalahoa Highway, Kealakekua, Hawai'i 96750, identified as
Tax Map Key: (3) 8 -1` -'016.1039 (por.) for use as offices, warehouse space and parking for the
Department of Public Works, Traffic Division in West Hawaii.
B. BACKGROUND AND JUSTIFICATION (USffeDDITIONAL SHEETS AS NEEDED):
The Traffic Division is currently leasing the adjacent property and due to the expansion of the Signals &
Streetlights crew to West Hawai'i base yard, this additional space will be occupied by the Signs &
Markings section which provides the Traffic Division with additional space needed for offices,
warehouse space and parking. DPW — Traffic has budgeted accordingly for fiscal year 2015 -2016 and
beyond for the annual amount of $72,000 in 020.281.5281.42.338 - Parking & Storage Rental.
SIGNED:
�' W` DATE: S
Department Head
15 -00878
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LAND COURT
REGULAR SYSTEM
(AREA ABOVE RESERVED FOR RECORDING INFORMATION
After Recordation, Return by ® Mail or ❑ Pick -up Phone #:
FILL IN NAME AND ADDRESS BELOW:
Office of the Corporation Counsel (CTM)
101 Aupuni Street, Suite 325
Hilo, Hawaii 96720
DOCUMENT CONTAINS PAGES
TITLE OF DOCUMENT: LEASE FOR OFFICE, WAREHOUSE SPACE AND
PARKING
PARTIES TO DOCUMENT
LESSORS: OLE EIGEL JENSEN AND ELAINE MARIE JENSEN
P.O. Box 390293
Keauhou, Hawaii 96739
LESSEE: COUNTY OF HAWAII
25 Aupuni Street
Hilo, Hawaii 96720
AFFECTS TAX MAP KEY: (3)8- 1- 016:039 (por.)
-1-
LEASE FOR OFFICE, WAREHOUSE SPACE, AND PARKING
This lease is made and executed on
by and between
Lessors, OLE EIGEL JENSEN AND ELAINE MARIE JENSEN, whose mailing address is P.O. Box
390293, Keauhou, Hawaii 96739 (hereinafter referred to as "Lessors "), and Lessee, the COUNTY
OF HAWAII, a municipal corporation of the State of Hawaii, whose principal place of business and
mailing address is 25 Aupuni Street, Hilo, Hawaii 96720 (hereinafter referred to as "County ").
THE PARTIES AGREE AS FOLLOWS:
Demise, Description and Use of Premises
(a) Lessors shall lease to County a parcel consisting of an approximately 2,080 square feet
building, and parking on tier 2; and 2,736 square feet building and parking on tier 3,
situate at 81 -6394 Mamalahoa Highway, Kealakekua, Hawaii 96750, identified as
Tax Map Key: (3)8- 1- 016:039 (por.) delineated on the map attached hereto as Exhibit
"A," (hereinafter referred to as the "subject property"), for use as offices, warehouse
space and parking for the Department of Public Works.
(b) As used in this lease agreement, the term "premises" refers to the subject property
described above and to any improvements located on the subject property from time to
time during the term of this lease agreement. Premises is accepted "AS IS ".
2. Term.
(a) The term of this lease shall be for five (5) years beginning on May 1, 2015.
(b) After the initial five (5) year term's expiration, the County shall have the option to
renew the lease for two (2) additional five (5) year terms.
3. Rent.
(a) Rent shall be SIX THOUSAND AND 00 /100 ($6,000) per month inclusive of excise
tax. Payment of rent shall begin one month after delivery of possession.
(b) Rent for additional terms shall be negotiated based on fair market value at the time of
exercise and shall be agreed to by all parties.
4. Maintenance and Building Services. County shall be responsible for maintenance of the
washroom and trash removal. County shall maintain the HVAC systems on the condition
that the HVAC system is found to be in good working condition at the time of delivery of the
premises. County shall be responsible for all utility services including electricity, water and
-2-
sewer. Building interior maintenance including painting, plumbing, and windows shall be the
responsibility of the County.
5. Structural Repairs by Landlord. In the event repairs become necessary to the structural
portions of the Demised Premises during the term of this Lease, then upon written notice from
County to Landlord stating the necessity therefore and the nature thereof, Landlord, with
reasonable promptness, and at its own expense (utilizing insurance proceeds from an insured
casualty, if available) and after receipt of such written notice, shall make any such necessary
repairs specified in such notice. If Landlord is required to make repairs to structural portions
by reason of County's negligent acts or omissions to act (if not then insured against County's
negligent acts or omissions to act), Landlord may add the cost of such repairs, including
interest on such cost at the rate usually charged Landlord for borrowing on the amount of such
costs to the rent which shall thereafter become due, and County shall pay the same as
additional rental.
6. Alteration/Improvements. County shall not, without the prior written consent of Landlord,
make any alterations or additions to said premises.
7. Americans with Disability Act.
Landlord and County understand that County, as a government entity, is required to comply
with the American with Disabilities Act, more specifically described in the Americans with
Disabilities Act. Landlord herein expressly warrants that all access from the parking area
and common areas to the demised premises are in compliance with the aforesaid Americans
with Disabilities Act, and that if there are comfort stations in the common areas open to the
public, those comfort stations are in compliance with the aforesaid Americans with
Disabilities Act. Landlord will also provide such information and documents as it has
relating to such compliance if requested by County.
8. Real Property Tax. County shall be responsible for real property tax. However, Landlord
agrees to timely submit a claim for exemption from real property tax as provided by
Section 19 -84 Hawaii County Code (2005 edition as amended). County will cooperate fully
with the Landlord in obtaining such exemption.
9. Deposit. No deposit is required.
10. Occupancy. County shall be given occupancy of the demised premises by May 1, 2015.
11. _Warranties of Title and Quiet Possession. Lessors covenants that Lessors are seized of the
demised premises in fee simple and has full right to make and enter into this lease and that the
County shall have quiet and peaceable possession of the demised premises during the term of
this lease and any agreed upon extension thereof.
12. No Lessees Currently in Possession. It is understood that as of the date of this lease agreement
the premises is vacant and that there are no current lessees in possession of the premises.
There are no third parties with any unrecorded interests in the premises.
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13. Delivery of Possession. If Lessors, for any reason, cannot deliver possession of the demised
premises to the County at the commencement of the lease term as specified above, this lease
agreement shall not be void or voidable; but in that event there shall be a proportionate
reduction of rent covering the period between the commencement of the lease term and the
time when Lessors can deliver possession, unless the County elects to terminate the lease by
giving notice in writing.
14. Subleasiniz and Assign ent.
(a) County shall not sublet the premises in whole or in part, without prior written consent
of Lessors. Any sublease without consent shall be void. Any sublease that is
consented to shall not release the County from, or otherwise affect any of the County's
obligations under this lease agreement.
(b) County shall not assign or transfer this lease agreement, or any interest in this lease
agreement, without prior written consent of the Lessors. Any such assignment or
transfer without consent shall be void.
15. Redelivery of the Premises.
(a) Upon expiration of this lease, or the early termination of this lease as provided for
under the terms of this lease, County shall peaceably and quietly quit and surrender the
premises to Lessors.
16. Insurance. Landlord and County acknowledge and agree that County is a self - insured political
subdivision of the State of Hawaii, and as such, shall not be required to obtain or maintain
any insurance policy whatsoever.
17. Indep2W1y. County will indemnify and hold Lessors harmless from and against all claims and
demands for loss or damages, including without limitation, property damage, personal injury
and wrongful death, arising out of or in connection with the lawful use or occupancy of the
premises by the County or by persons claiming under it, or any accident, fire, or nuisance on
the premises, or any failure by County to keep the premises in a safe condition, and County
will reimburse Lessors for all their costs and expenses, including without limitation, all
attorney's fees incurred in connection with the defense of any such claims.
18. Force Majeure. In the event that either Landlord or the County shall be delayed, hindered, or
strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive
prevented from the performance of any act required under this sublease agreement by reason
of 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 sublease 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.
-4-
19. Hazardous or Toxic Materials. Lessors warrants that they have not received written notice
from any governmental authority having jurisdiction over the subject property that the subject
property 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. Lessors represent and warrant that to Lessors' actual knowledge
(without undertaking any investigation or inquiry) the subject property does not contain any
hazardous or toxic materials prohibited by law. Lessors shall indemnify and hold harmless the
County from and against any and all claims, demands or losses in connection with the release
of hazardous or toxic materials caused by Lessors. County shall indemnify and hold harmless
the Lessors from and against all claims, demands or losses in connection with the release of
hazardous or toxic materials caused by County, its agents or employees.
20. 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 sublease 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 sublease shall terminate as to the portion taken, and unless this sublease
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 sublease 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 sublease, 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.
21. Entire Agreement. This lease agreement shall constitute the entire agreement between the
parties hereto. Any prior understanding or representation of any kind preceding the date of
this lease agreement shall not be binding upon either party except to the extent incorporated by
this lease agreement.
-5-
22. Modifications. Any Modifications to this lease agreement shall be in writing and shall be
agreed upon by mutual signatures of the parties hereto.
23. Agency Disclosures.
(a) Property Management Division, Department of Finance, represents the County of
Hawaii in this transaction.
(b) OLE EIGEL JENSEN or ELAINE MARIE JENSEN may represent the Lessors in
this transaction.
24. 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.
25. Waiver of Jury Trial and Counterclaim. The parties hereto shall and they hereby do waive
trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto
against the other on any matters whatsoever arising out of or in any way connected with this
Lease, the relationship of Landlord and County, County's use or occupancy of the Demised
Premises, and/or any claim of injury or damage.
26. Counterpart Execution. The parties hereto agree that this lease agreement may be executed in
counterparts, each of which shall be deemed an original, and said counterparts shall together
constitute one and the same agreement, binding all the parties hereto, notwithstanding all the
parties are not signatory to the original or same counterparts. For all purposes, including,
without limitation, recordation, filing and delivery of this instrument, duplicate unexecuted
and unacknowledged pages of the counterparts may be discarded and the remaining pages
assembled as one document.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the
day and year first above written.
OLE EIGEL JENSEN
ELAINE MARIE JENSEN
LESSOR
LESSOR
COUNTY OF HAWAII
RECOMMEND APPROVAL:
WARREN H.W. LEE
Director of Public Works
APPROVED AS TO FORM
AND LEGALITY:
CRAIG T. MASUDA
Deputy Corporation Counsel
LESSEE
LEASE FOR OFFICE, WAREHOUSE SPACE AND PARKING
TMK (3)8- 1- 016:039 (por.)
-7-
STATE OF HAWAII
SS.
COUNTY OF HAWAII
On , before me personally appeared OLE EIGEL JENSEN to
me known to be the person described in and who executed the foregoing instrument, and
acknowledged that OLE EIGEL JENSEN executed the same as OLE EIGEL JENSEN's free act
and deed.
NOTARY CERTIFICATION STATEMENT
Document Identification or Description:
Doc. Date: _
No. of Pages:
Signature of Notary
Printed Name
Notary Public, State of Hawaii
Printed Name:
My commission expires:
or ❑ Undated at time of notarization.
Jurisdiction: Third Circuit
Date of Notarization and
Certification Statement
0
STATE OF HAWAII
SS.
COUNTY OF HAWAII
On , before me personally appeared ELAINE MARIE
JENSEN to me known to be the person described in and who executed the foregoing instrument,
and acknowledged that ELAINE MARIE JENSEN executed the same as ELAINE MARIE
JENSEN's free act and deed.
NOTARY CERTIFICATION STATEMENT
Document Identification or Description:
Doc. Date: _
No. of Pages:
Signature of Notary
Printed Name
Notary Public, State of Hawaii
Printed Name:
My commission expires:
or ❑ Undated at time of notarization.
Jurisdiction: Third Circuit
Date of Notarization and
Certification Statement
N
STATE OF HAWAII )
SS.
COUNTY OF HAWAII )
On this day of , 2015 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 Hawaii, a municipal corporation of the State of Hawaii, that the seal affixed to the
foregoing instrument is the corporate seal of said County of Hawaii, 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 Hawaii by Sections 5 -1.3 and 13 -13 of the County Charter, County of Hawaii (2010), as
amended, and said WILLIAM P. KENOI acknowledged said instrument to be the free act and deed of
said County of Hawaii.
Signature
Print or Type Name
Notary Public, State of Hawaii
My Commission Expires:
NOTARY CERTIFICATION
Doc. Date:
Notary
Name:
Doc.
Description:
No. of Pages:
Notary Signature Date
®+
Circuit
DATE:
TENANT:
Lease Term Sheet
February 12, 2015
County Of Hawaii
LANDLORD: Ole Eigil Jensen and Elaine Marie Jensen
P.O. Box 390293
Keauhou, HI 96720
PREMISES: TMK: (3) 8- 1 -16 -39
Building A consisting of 2,736 square feet
Building B consisting of 2,080 square feet
USE: General Services
TERM: Five (5) years
BASE RENT: Initial Lease Term: 5 years
As of 5/1/15, Monthly gross rent shall be $6,000, fixed.
OPTION TO EXTEND: Two additional Five (5) year terms.
FREE
BASE RENT: Lessor shall grant Lessee One (1) month free rent for the
purpose of mobilizing equipment and materials to the
Premises.
SECURITY DEPOSIT: Not Applicable
PROPERTY TAXES: Tenant shall be responsible for the payment of all real
property taxes and assessments for the Premises. Landlord
to apply for Real Property Tax exemption.
UTILITIES: Landlord shall insure that all utilities are stubbed to the
Premises. Tenant shall pay for all utility charges for the
Premises.
CONDITION
OF PREMISES:
INSURANCE:
LEASE:
FINANCIAL
CONDITIONS:
HAZARDOUS
MATERIALS:
Offer to Lease — 2436 S. Beretania Street
212412015
Page 2 of 2
Lessee acknowledges and agrees to accept it in "as is"
condition unless otherwise agreed in writing between
Lessor and Lessee. Lessee further understands that any
alterations or improvements to be done by Lessee shall be
performed in accordance with the provisions of the Lease
and shall require the prior written approval of Lessor.
Tenant shall maintain its own comprehensive fire and
liability policy and name Landlord as an additional insured.
Lessee shall draft the Lease document.
Not applicable
Lessor acknowledges and warrants to Lessee and Agent that
property is free and clear of all Hazardous wastes,
materials, defects, or other environmental problems and
does not violate any and all governmental zoning, and
health laws and/or ordinances.
Malani. Kimberly
From:
Schrey, Theodore
Sent:
Thursday, February 26, 2015 8:41 AM
To:
Malani, Kimberly
Cc:
Thiel, Ronald
Subject:
RE: B -52 for West Hawaii Lease
This looks just fine Kimberly! Thanks for checking! O
Thank You!
f ed,5chrey
County of Hawaii, Finance Department
Budget Specialist
(808) 961 -8489
The information contained in this email is confidential and may be subject to legal privilege. If you are not the intended recipient, you
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From: Malani, Kimberly
Sent: Thursday, February 26, 2015 8:34 AM
To: Schrey, Theodore
Cc: Thiel, Ronald
Subject: B -52 for West Hawaii Lease
Ted,
Sorry one more thing, FYI, this B -52 heading to DPW today, do you want any changes made to this, per Diane
it would be for Mar 31 FC since the other deadlines have passed.
Thank you,
Kimberly Malani
Office Manager
County of Hawai'i
Public Works - Traffic Division
Phone: 808 -961 -8341 Fax: 808 -961 -8591
more irnforn7,1tioll about 1 http: / /traffic.hawaiicounty.gov