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Home My WebLink AboutRES 038 Draft 03 2002-2004 COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 3~ U3 Draft 3 RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO NEGOTIATE THE PURCHASE OF LEASE INTEREST AND STRUCTURES FROM H. HARADA CONTRACTOR, INC. LOCATED AT TMK No. 2-2-037-098. WHEREAS, Meadow Gold Dairies, Inc., hereinafter known as "Meadow Gold", desires to expand its operations located at 11 Railroad Avenue (identified by TMK No. 2-1-12:25) onto a portion of neighboring land, which is occupied by the County of Hawai'i's Department of Parks and Recreation Maintenance Baseyard, hereinafter known as "Department" (see Exhibit A); and WHEREAS, the Department currently controls and manages the neighboring 2.819 acres of land as a "County Parks Maintenance Section Site (identified by TMK No. 2-1-12:5) via Executive Order Nos. 2283 and 3825 from the State; and WHEREAS, that portion of the Department's property proposed to be transferred to Meadow Gold is mostly vacant, but contains an open equipment garage/office and hazardous materials shed; and WHEREAS, in a letter dated January 23, 2003, from Meadow Gold Dairies Branch Manager David Yee to Finance Director William Takaba (see Exhibit B), Meadow Gold Dairies has agreed to (1) pay $129,000 to the County in consideration for the County's agreement to assign its rights under EO 2283 fora 22,011-sq. ft portion of the County's total 1.956 acres, (2) relocate a Parks and Recreation office building located on the proposed portion of transferred land to a replacement parcel at its own expense; (3) open an escrow account for the deposit of the $10,000 and give the County the right to withdraw the deposit before closing, and (4) have the exchange conditioned upon the County's successful purchase and acquisition by EO of the replacement property; and WHEREAS, it is the intent of the parties that the 22,011-sq. ft. portion desired by Meadow Gold will be withdrawn and subdivided from Executive Order Nos. 2283 and 3825 and a separate lease be negotiated between the State and Meadow Gold. WHEREAS, the replacement parcel being considered by the County is a 44,374-sq. ft. State-owned parcel, which is currently under a 55-year lease (G.L. No. S-4665) through August 27, 2035 to H. Harada Contractor, Inc., hereinafter known as "Harada," and is further identified as TMK No. 2-2-037:098 and located across Railroad Avenue from the Department's Maintenance Baseyard; and WHEREAS, the lease on the Harada parcel is presently up for sale; and WHEREAS, it is the intent of the parties that should the County obtain the assignment of lease for the Harada parcel, the State will, at a later date, convey that parcel to the County via executive order; and WHEREAS, according to the Parks and Recreation Director, a representative of the State Department of Land and Natural Resources, hereinafter known as "DLNR," has been conferred with on this arrangement and is in verbal agreement; and WHEREAS, pursuant to Section 2-114(a), Hawaii County Code, real property may be sold or leased through negotiation upon a finding by the council that the public interest demands it; and WHEREAS, the Department is in need of more lands for its baseyard operations and Meadow Gold desires to expand its operations, making this arrangement mutually beneficial for both parties. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it finds the public interest demands the transfer of a portion of land covered under Executive Order Nos. 2283 and 3825 to Meadow Gold and the negotiation of an assignment of lease for the Harada parcel to the County. BE IT FURTHER RESOLVED that the Director of Finance is authorized to negotiate the purchase of lease interest and structures of H. Harada Contractor, Inc. located at TMK No. 2-2-037:98; provided that 1. The amount of one hundred twenty-nine thousand dollars ($129,000) shall be received from Meadow Gold Dairies, Inc. for the specific purpose of meeting the County's obligation to purchase the leasehold interest and structures of H. Harada Contractor, Inc. 2. Meadow Gold Dairies, Inc. relocates a Parks and recreation warehouse/office building from TMK No. 2-1-12:5 to the I~arada parcel (TMK No. 2-2-37:98) at no cost to the County. 3. Meadow Gold Dairies opens an escrow account at an escrow company acceptable to the County and deposits the sum of $10,000 into the account conditioned upon the right of the County $o withdraw the deposit from the escrow before closing. The Liarada parcel shall be cleared of all demolished structures, materials, and equipment, and thre parcel cleaned of hazardous waste and material to the satisfaction of and at no cost to the County and State. iT ~i~iAL.~Y rSO~VI~D, that the County Clerk transmit copies of this resolution to (1) the Director of finance, (2) the Director of Parks and recreation, and (3) Meadow Gold Dairies tnc. Dated at xilo , I~awai`i, this 20th day of February , 2003. INTRODUCED SY: COUNCIL. MEM13~r, COUNTY OF ~IAWAI`I COUNTY COUNCIL ROLL CALL VOTE COUrit~ Of ~i~VY11` 1 AYES NOE'S ABS F.X t-hIO, HaWal`i ARAKAKI X C~iUNG 1 hereby cerlily that the foregoing RESOLUTION was b>' ELARIONOFF X the vote indicated to the right hereof adopted by the COlJNC1L ofthe HOLSCHUH X Co~mty of Haw'ai'i on February _20_, 200_ _3_. .IACOBSON LEITHEAD-TODD X ATTEST: REYNOLDS X SAFARfK X ( "TYLER 8 0 1 0 Reference: C-117.4 COUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. (Draft 3 ) 3 Kanoelehua Avenue Lokelani Street g~ nN-~ ~ w Nw ~ a = r " 3 W CrJ ~m=~z ~ F1~~~ p1 w ' Y~ N O O m N ~J N Lt Vl J ~ ~ O P ~ K ~ ~ S n r N ~ N G A rn t_ F ;z Ra~~YOad ~ " " ~ y a m ~ 3 _~,~w-; G S a s ~ F rt L c m = ~ O F N ~ c i r_ N _ ~ to N J. oo ~ p~ p G 1 ~ 4 ? ~ ~ w o ~ O~ o' v. ~ O o -imcn - oc o x d ~ a ~ ~ ~ rv Dry ~ r c ~ y ~ ~ `G G -ry+ = Z y C ~ w - a N ~ Meadow Gold Dairies DEPAR7f,}EP17 OP FiP:Ar'.L^.E~ January 23, 2003 - a.t.r; 'JAN.-2_~,_~t^B3. Mr. William Takaba - - Director of Finance ice. ~ ` , - - - f~E: County of Hawaii Dear Bill, Please accept this letter as confirmation that Meadow Gold Dairies has agreed to pay the sum of $129,000 (ONE HUNDRED TWENTY NINE THOUSAND Dollars) to the County of Hawaii in consideration for the County's agreement to assign its rights under the lease of a 22,011 sq. ft. parcel of land contained within the County Parks Maintenance Section Site, Governor's Executive Order 2283. Reference attached maps. Additionally, as a part the consideration for the County's assignment of its rights under the lease to such area and in response to the County's request, Meadow Gold has agreed, at its expense to relocate a Parks and Recreation office building located on the above mentioned parcel, to the Harada Property. Meadow Gold will open an escrow account at an escrow company acceptable to the County and deposit into the account the sum of $10,000 (TEN THOUSAND DOLLARS). The County shall have the right to withdraw the deposit from the escrow before closing. We understand that this proposed exchange between Meadow Gold Dairies and the County is conditioned upon the County's successful purchase of the Harada base yard property (attached map Lot 6 8 Lot 8). Meadow Gold is looking forward to the future expansion of its milk plant to accommodate the growth of the Big Island milk industry. Thank you for your advice and support. Si rely Yours, avid Yee Big Island Branch Manager Cc: Pat Engelhard, Glenn Sadayasu, Rodney Harada, & Karlyn Hamamoto Exhibit B l I Railroad .Acenuc 11i1o, Hawaii 96720 (808) 935-5481 (808) 961-3246 fax