HomeMy WebLinkAboutCOM 0145.001 2000-2002 J~tY OF N~ Bus: (808) 326-5684
J. CURTIS TYLER, III ~
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CounctlMember .a. Fax: (808) 326-5697
District 8 (North Kona) ctyler@interpac.net
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COUNTY COUNCIL
County of Hawai `i
Kona Council Office
77-6399 Nalani St., Suite 104
Kailua-Kona, Hawai `i 96740-8980
Apri12, 2001 Via Facsimile: 961-8780
Pages: 2
MEMORANDUM:
TO: Alfred Robello, Executive Assistant to the Chairman
Hawaii County Council
FROM: Council Member J. Curtis Tyler III
RE: Resolution 61-01
Elderly_Activities Division Offices Lease
Attached please find a memo from Mr. Takaba regarding the subject referenced.
Please number the testimony and circulate copies to all Council Members before
the Apri14 Council meeting. I will give you the original document for your files
when I come to Hilo tomorrow.
Thank you for your assistance.
Attachrr?ent
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Harry Kim William Takaba
Mayor Director
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County of Hawaii
Finance Department
25 Aupuni Street, Room 118 Hilo, Hawaii 96720
(808)961-8234 • Fax (808)961-8248
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'1°`®: Honorable Curtis Tyler, Member
Hawaii County Council
~r®a~: William Takaba, Director of Finance
®ate: March 27, 2001
fie: Resolution 61-01
Elderly Activities Division Offices Lease
At the Finance Committee meeting of March 20, 2001, you asked me to follow-up on three
major concerns that you had on the above-referenced lease. My staff and I met with the
individuals who negotiated and drafted this lease last year to obtain the information that you
requested.
1. Term of Lease. Although the terms of the two four-year lease renewals were not meant
be "month-to-month," it can very well be interpreted to be so. Should the Department of
Parks and Recreation (lessee) be given the authority to extend this lease for another four
(4) years, a county attorney will amend the language to clarify that both four-year
extensions are for the full four-year terms, and not month-to-month.
2. Common Area Maintenance (CAM). When this lease was negotiated, it was agreed
that all utilities and maintenance charges would be the direct responsibility of the lessee.
Therefore, no CAM charges were included in this lease, and "common area
maintenance fee" should not have been referenced in the "Grace Period" section. This
language will also be clarified if the four-year renewal is authorized.
3. Real Property Tax. The owner originally intended to pass on the cost of real property
taxes to the lessee. Section 19-84 states, in part, that "Real property under lease to the
State or the County under which lease the lessee is required to pay the taxes upon such
property" shall be exempt from taxation. Accordingly, the lease stated that "There shall
be no real property taxes on area rented by Lessee."
hope that this clarifies the concerns that you brought up at the Finance Committee
meeting. Should you need anything further, please call me. Thank you very much.
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