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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: October 3, 2017 Re: Comm.No. 470/Res. No. 312-17 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 1:00 p.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawaii 96720 <br /> Your Committee on Finance,to which was referred Resolution No. 312-17,reports as follows: <br /> Resolution No. 312-17,transmitted by Finance Director Collins Tomei,via Communication <br /> No. 470 dated September 15, 2017, authorizes the payment of funds of a later fiscal year and of <br /> more than one fiscal year for a multi-year lease of real property. <br /> This resolution authorizes the Mayor to enter into a ten-year and six months lease with Prince <br /> Kuhio Plaza, LLC, with an option to extend for an additional term of ten years, for <br /> office/warehouse space located at the Prince Kunio Plaza, identified as Space No. 300J, Tax Map <br /> Key: 2-2-047:006. The property contains an area of approximately 39,525 square feet,to be used <br /> by various County agencies for general office use and related services. <br /> Hamana Ventura,Property Manager, stated they have taken a proactive approach looking at <br /> maturing leases,rate structures, and in doing so, it given the opportunity to consolidate some of <br /> County leases it would save the County money down the line. He felt the County would be in a <br /> better and stronger position going forward. <br /> Council Member Susan Lee Loy asked which offices or departments were being looked at to <br /> consolidate. Mr. Ventura stated they are looking primarily at the Office of Aging and Housing. <br /> There is adequate space for both services and, in addition,they will have space for other <br /> departments as the need arises, including warehouse space. <br /> Council Member Eileen O'Hara inquired as to whether this was a new space and Mr. Ventura's <br /> response was that it is a new location,which is the former Safeway space located next to Longs. <br /> He stated Safeway,the current tenant, decided to move to another location and the County will be <br /> the replacement tenant. The only other tenant in that building is CVS/Longs. <br /> Council Member Herbert M. Richards, III asked if it was a ten-year fixed rate,to which <br /> Mr. Ventura replied that it's starting at a base rent of$1.20 a square foot with an annual rate <br /> increases of approximately 3 percent. <br /> Council Member Aaron S. Y. Chung questioned how much is being paid for Housing at this time. <br /> Deanna Sako, Director of Finance,responded that over the next ten years there would be a <br /> savings of approximately $2.4 million. Housing at the armory is free but roughly paying <br /> $110,000 a year at the other location(the Section 8 area), which is 7,000 square feet. Ms. Sako <br /> FC Report No. 48 <br />