HomeMy WebLinkAboutCOM 0117.005 2002-2004 LETTER OF TRANSMITTAL
DATE: February 19, 2003
TO: Susan -Legislative Auditors FROM: Dept. of Pazks & Recreation
County of Hawaii
Via: Council Members 101 Pauahi Street, Suite 6
Hilo, Hawaii 96720
WE ARE SENDING YOU THE FOLLOWING ITEMS:
Contract Plans SpeciScations Copy of Corresp6ndence
Other X See Below
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1 10/15/O1 Memorandum from Dennis Lee, Director, DPW -
1 10/02/01 E-Mail from Dixie Kaetsu, Managing Director
1 09/05/01 Memorandum from Glenn Sadayasa, Superintendent of Parks Maintenance
THESE ARE TRANSMITTED:
For Approval Approved as Submitted Resubmit for Approval
For Your Use Approved as Noted Submit for Distribution
X As Requested Returned for Corrections Return Corrected Documents
For Review and Comment by:
Other
REMARKS:
G1omm. No. ~ ~7• S ~ ~ l~/'~l~ltl/~
COPY TO: ~ N~/C' SIGNED: P~tricia Engelhard, Director
Ref. To>t!~?M e'0~1'I~/f
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Harry Kim I' j~l
L Dennis K. W. Lee
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DEPARTMENT OF PUBLIC WORKS
25 Aupuni SlreeQ Room 202 • Hilo, Hawaii 96720-4252
(NOS) 961-8321 • Fax (808) 961-8630
MEMORANDUM
DATE: October 15, 2001
TO: Pat Engelhard, Director
Parks and``nRne.creation Department
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FROM: Dennis K. W. Lee, P. E., Director
SUBJECT: LAND SWAP WTI'H MEADOW GOLD PROPOSAL
P & R Baseyard Property on Railroad Avenue
As directed by the Mayor, I am responding to a proposal of a land swap with Meadow Gold (see
enclosed email dated October 2, 2001, and the memorandum from Glenn Sadayasu to you dated
September 5, 2001).
A field visit was conducted on October 1Q, 2001, by you and I [o assess this proposaL~The
detailed assessment on the properties are enclosed.
The Department's recommendation is to move forward with this land swap. The Department of
Parks and Recreation will truly benefit from this action. The detailed assessment specifies a few
follow-up actions to better define the agreement and reduce liability to the County of Hawaii in
accepting the Harada property.
Detailed Assessment on Land Swa~Proposa]
Meadow Gold to Acquire P & R Property
P & R to Acquire Harada Property
Meadow Gold to Acquire P & R Property
Meadow Gold property is under General Lease 5-4662 between State of Hawaii and James C.
Wo (see enclosed lease agreement). "fhe property is 61,779 square feet in size (1.418 Acres).
The property is used to process milk and is consistent with the lease use condition of general
industrial purpose. The lease. term is 55 years, commencing on August 28, 1980 and terminating
on August 27, 2035. For the first 20 years, the lease rent is $27,200 per year. The 20`x', 30`x,
40`x', and 50`~ year lease rents are redetermined.
Memo to Pat Engelhard
Page 2
October 15, 2001
According to the email message, Meadow Gold proposes to increase milk processing capacity
and is interested in acquiring part of P & R Baseyard property (see enclosed Executive Order
No. 2283).
The P & R property up for land swap is mostly vacant, containing an open equipment garage and
hazardous materials shed. The exact size for acquisition by Meadow Gold is unknown and
requires a land survey by Public Works to determine the exact size. The approximate size is 0.3
acre (150' x 90'). The equipment garage requires relocation and the hazardous material shed
reyuires demolition as part of the land acquisition by Meadow Gold.
Y & R to Acquire Harada Property
Harada Property is under General Lease No. S-4665 between the State of Hawaii and H. Harada
Contractors, Inc. (see enclosed lease agreement). The property is 44,374 square feet in size
(1.019 Acres). The property is used as the construction business site, including the business
office, equipment and materials storage site, and repair/maintenance shop and is consistent with
the ]ease use condition of general industrial purpose. The lease term is 55 years, commencing on
August 28, 1980 and terminating on August 27, 2035. For the first 20 years, the lease rent is
$22,500 per year. The 20"', 30"', 40"', and 50`h year lease rents are redetermined.
The site visit found the property being cleaned (see enclosed TMK). Two old structus~es were
demolished and materials and equipment were scattered over the property. A warehouse
building is located on the north side of the property. It is old and needs rehab work (rust
maintenance mostly). It is large enough to meet P & R needs. Also on the property is a
hazardous materials storage shed. It is about twice the size of the one existing on the P & R
property and will take very little effort to bring it up to OSHA standards. A drywell sump is
located between both structures and adequate for drainage of that property. The south side of the
property requires new fencing, about 256 linear feet.
The improvements to existing structures on the Harada property will not cost a lot of money.
The possible contamination soil clean-up may be extensive, as witnessed by oil spots over the
property. Rodney Harada has done a hazardous waste evaluation of the property in 1988. He
will pass this document on to me. The lease agreement specifies that the premises be strictly
clean and sanitary. It also specifies that Harada comply with all County, State and Federal laws.
Harada will be responsible for any clean up.
Rodney Harada had indicated during the site visit that they will clean the property off of all
materials and equipment. He wants to sell t#~e warehouse for $]29,000. He is not asking
anything for the hazardous materials storage shed.
DKWL:jjs
Engelliarii,.Patr~cia '~11~
From: Kaetsu, Dixie ^ ~
Sent: Tuesday, October 02, 2001 7:29 AM C
To: Engelhard, Patricia
Subject: RE: Exchange of Land with Meadow Gold
Sounds interesting to me. Harry's in Kona today. Tomorrow I'll mention to him and get his
reaction. I think we can add it to discussion on County lands scheduled for Oct 9. Thanks for the
update.
S[P-05-2001 WED 1241 PM P&R lntenance 808 961 8725 P, O1 ~
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DEPARTMENT OF PARKS & RECREATION Director
PARKS MAINTENANCE DIVISION Dep Dir ~
Planner
Accounting
September S, 2001 6~ Personnel
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To: Patricia Engelhard, 'Director !~'~,Ks I ~ iL w{ e,,
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From: Glenn Sadayasu ~ ~ 1
Re: Land Swap with Meadow Gold
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I was approached by David Yee, Manager of the Meadow Gold Dairies plant that is
situated next to our baseyard. He informed me that they would be interested in obtaining
a portion of our baseyard directly situated behind their plant for future expansion, They
would like to build a freezer and warehotue on that particular property. This would be
the most ideal situation for them because of the location and elevation of the land.
David had an interesting proposal that I thittk would be beneficial for us as well as serve
their needs. The prbpoeal was suggested by Harry Yada of DLNR. Meadow Gold
offered to purchase the land across the street which is presently occupied by Harada
Construcion and swap that land with the Parks Maintenance portion behind their plan[..
The property is leased from the state and has about 35 years more before the lease
expires. Harada Construction is Crying to sell the leasehold property and will terminate
their business, The lot is about 1.2 acres.
Kenneth Furuta and 1 went to inspect the property with David and the sales representative
fiom Brilhante Realty. There is a building with an office, storeroom, and mechanical
repair area. Another concrete building houses all of the gasoline, oil, and other
chemicals,
All other buildings and materials in the property would be cleared out by Harada before
they move out. It is a nice set-up Chat would be ideal for our construction crew and
possibly the tractor mower crew.
I informed David that such a decision to swap would probably be made by the Mayor and
County Council. Should such a deal be approved, I don't know how long the process
would be to finalize it,
I ant sure you would want to get more information on this matter before deciding to
confer with the Mayor. I can arrange a meeting with David Yee for a tour of the _
properties involved and their preliminary proposals. Please let me know, c~
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Thank youl
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