D-3 BLNR Issuance of a Request for Qualifications/Request for Proposals

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BLNR—RFQ/RFP for Uncle Page 4 December 13, 2019 Billy's Lease of the four leases to be immediately followed by the issuance of a month-to-month revocable permit. At its meeting of February 12, 2016 under agenda item D-3, the Board consented to the assignment of General Lease Nos. 3265, 3266, 3267 and S-4252, Hilo Bay Hotel, Inc., assignor, to Savio HBH Development Company, LLC (Savio), assignee, and approved the issuance of a single month-to-month revocable permit to (RP S-7879) Savio upon the expiration of the leases. The revocable permit was intended as an interim measure to keep the hotel in operation until such time that the Banyan Drive Hawaii Redevelopment Agency (BDHRA), organized under the supervision of the County of Hawaii, Planning Department, developed a long-term conceptual plan for the future of the Banyan Drive resort area 1 The Department procured the services of Erskine Architects, Inc. to conduct a detailed analysis of the property to determine whether to demolish or rehabilitate the existing structures on the property. In the June 2016 report prepared by Erskine Architects, Inc. (Erskine Report), a number of life and safety issues at the property were identified including unsafe stairwells, fire safety issues and advanced termite damage throughout the common areas and much of the lodging areas. The Department provided a copy of the Erskine Report to the Planning Department. This resulted in the County conducting an inspection of the property through its Department of Public Works (DPW), Building Division. In addition, the Fire Department also conducted an inspection based on information provided in the Erskine Report. At its meeting of June 9, 2017, under agenda Item D-5, as amended, the Board approved the after-the-fact renewal of RP S-7879 to Savio from March 14, 2017 to June 9, 2017, at the then current ground rent of$2,984.00 per month. During discussions regarding the condition of the property, the Board determined that the hotel should cease operation sooner than later. With that in mind, the Board approved an extension of RP S-7879 from June 10, 2017 to the close of business on July 14, 2017, at no cost. This would allow the permittee, Savio, a reasonable amount of time to close the hotel, lay off staff, remove personal property from the premises, and to perform all other actions necessary to shut down the operations of the hotel. The Board further specified that in the event the County inspectors provided notice to the Department of an urgent health and safety concern or violation at the hotel, then the Chairperson would be authorized to immediately shut down the hotel. Also at its meeting of June 9, 2017, under agenda Item D-6, the Board authorized the publication of a Request for Interest (RFI) to gauge whether there is interest among prospective developers in obtaining a long-term lease of the subject land for hotel-resort 1 The BDHRA approved a conceptual plan at its meeting in November 2016. However, the plan has not been presented to the Planning Commission or the County Council for confirmation.