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HomeMy WebLinkAboutCOM 0416.000 2002-2004 M<v or HanyKim s"•y~~~ .li William Takaba Mayor Director Nancy E. Crawford •r'~ Depu(,?Direemr +rr ui.w':~ County of Hawaii Finance Department 25 Aupuni Stree[, Boom 118 • Hilo, Hawaii 96720 (808) 961-8234 • Fax (808) 961-8248 November 10, 2003 ° w On z o ~ Zn c , Honorable James Arakaki, Chairperson and N Members of the County Council Hawaii County Council ~ 25 Aupuni Street Hilo, Hawaii 96720 ca W Re: Resolution for amulti-year lease Enclosed is a resolution authorizing the Office of the Prosecuting Attorney to enter into a multi-year lease for five (5) years for their office space in Waimea. The office space they are presently occupying within the Waimea police station will no longer be made available to them next year. If there are any questions, please do not hesitate to call the Office of the Prosecuting Attorney. William Ta aba Director of Finance APP VED: ~1- H rry Kim ~ - Mayor Enc. cc: Prosecuting Attorney iY.?S- /•28-03 Comm. No. ~ / `o Ref. To. Ref. Dpte~` Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: PROSECUTING ATTORNEY DATE: 11/06/03 STAFF CONTACT: NANCY /JUDY PHONE: 961-0466 A. REQUEST: Multi-year lease approval for Waimea office space between the County of Hawaii and Clark Realty Corporation. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Police Department in Waimea has been providing space and support for one Deputy Prosecuting Attorney for several years and is now in need of that space for their own operations. We have found 600 square feet of office space in the Holomua Center which is across from the police station and convenient to the court. The space is adequate for our needs where others in the area are much too big or cannot be secured properly. The rental rate is $1.25 per square foot for the first year and increases by $.04 per square foot each year of the 5 year lease. There is also an estimated $.35 per square foot common area maintenance charge . Starting January 1, 2004 and ending December 31, 2008 the lease cost per County Fiscal year would be as follows: 2003 - 2004 (for 6 months) @ $1,000. 00 per month including GET would be $6,000.00 2004 - 2005 @ $1,000.00 / $1,025.00 per month for 6 months @ would be $12,150.00 2005 - 2006 @ $1,025.00 / $1,050.00 per month for 6 months @ would be $12,450.00 2006 - 2007 @ $1,050.00 / $1,075.00 per month for 6 months @ would be $12,750.00 2007 - 2008 @ $1,075.00 / $1,100.00 per month for 6 months @ would be $13,050.00 2008 - 2009 (for 6 months) @ $1,100.00 per month including GET would be $6,600.00 Attached is the "Non-Binding Letter of Intent for a Commecial Lease. a SIGNED: ~G~ f~ )~i,c~ DATE: 11/06/03 Department Head Reference Date: October 13. 2003 Tenant's Initials: _ Landlord's Initials: Hawaii Reviewed by .Principal Braker/Broker-in-Charge, wha hereby certifies that this is a true imprint of the Hawaii Certified Commercial /nvestment Member Chapter standard form. This form is available for use by the entire real estate industry. The use ojthis form is nat intended to identify the real estate licensee as a CCIM.TM Non-Binding Letter of Intent for a Commercial Lease Re: Holomua Center/County Prosecutors Office This letter of intent ("Letter of Intent") contains [he terms and conditions under which the Landlord and the Tenant identified below propose to lease the premises described below. This Letter of Intent is not legally binding upon either Landlord or Tenant (other than [he terms of Sections 28 to 32 below which shall be binding upon the parties upon execution of this Letter of Intent by both Landlord and Tenant), notwithstanding anything to the contrary elsewhere in this Letter of Intent. IDENTIFICATION OF PARTIES: IDENTIFICATION OF BROKERS: Landlord: Holomua LLC c/o Clark Realty Corporation Landlord's Broker: Clark Realtv Corporation Street Address: 75-5722 Kuakini Hwv. 104C Street Address: 75-5722 Kuakini Highway Suite 214 Kailua Kona, HI 96740 Kailua Kona, HI., 96740 Phone: (808)329-6446 Phone: (808)329-6446 Fax: (808)329-8102 Fax: (808)329-8102 )email: commercialCa~clarkhawaii.com )email: oginhi@verizon.net Tenant: County of Hawaii Tenant's Broker: Clark Realtv Corporation Street Address: 34 Rainbow Drive Street Address: 75-5722 Kuakini Highway, Suite 214 Hilo HI.. 96720 Kailua Kona HI 96740 Phone: (808)961-0466 Phone: (808)329-6446 Fax: (808)961-8908 Fax: (808)329-8102 )email: nkt96720(o.yahoo.com ~mai1: oginhi(awerizon.net NON-BINDING PROVISIONS Check and fill in applicable provisions. Any provisions not checked or filled in are not applicable. t t DESCRIPTION OF PREMISES A. General Deacriphon: (TMK: (3) 6 - 4 - 6 : 32 ? portion) ? The space (the "Premises") identified as ? Room/Space No. C-2 on the First Floor in the ? building OR L9~shopping center known as Holomua Center located at 64-1067 Mamalahoa Highwav. Waimea. Hawaii. 96743 (the "ProjecP') ? The building (the "Premises") known as ,located at ? That certain real property (the "Premises") located at n. Rentable and Usable Square Feet: The Premises are shown on the attached Exhibit A. Note: Atlnch this Exhibit ? The Premises contain approximately rentable square feet and usable square feet. ? The actual square footage of the Premises shall be determined ? by Landlord ? by Tenant ? prior to the Tenn Commencement Date (defined below) ? after completion of tenant improvements ? pursuant to ? the Standard Method for Measuring Floor Area in Office Buildings (ANSI/BOMA 265.1, 1996); ? The Premises consist of approximately ~ 600 square feet ? acres. © 2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmission, display, uploading, distribution or page ) adaptation is strictly prohibited and will result in liability ofup to $150,000. Permission to photocopy denied. Reference Date: October 13, 2003 TenanNs Initials: Landlord's Initials: _ zl CONDITION OF PREMISES Tenant has inspected the Premises and agrees to accept the Premises in its existing "AS IS" condition. ? Tenant shall have [he period of time (the "Inspection Period"), commencing at S a.m. HST on the day after the date of this Letter of Intent to _.m. HST on , to inspect the Premises. Landlord shall allow Tenant reasonable access to the Premises, during normal business hours, during the Inspection Period. ? Landlord shall provide Tenant with copies of the following documents for review during the Inspection Period: ? ? Landlord ? Tenant shall be responsible for obtaining a certificate of occupancy for the Premises. a> PARKING ~ Applicable ? Nor Applicable ? Tenon[ shall have the right to use reserved parking spaces and 1 unreserved parking spaces located ? in the Project OR ? ? The parking plan and the location of the reserved parking spaces, if any, are shown on Exhibit ? Tenant shall pay the following additional rental for the use of such spaces: ? a monthly fee of $ per space. ? a monthly fee of $ per unreserved space. ? a monthly fee of $ per reserved space. ? Parking shall be at prevailing rates. Current monthly rates per stall per month are $ for each reserved stall, and $ for each unreserved stall. ? No employee parking shall be allowed. al PERMITTED USE Tenant shall use the Premises for the following uses only: Office Tenant is solely responsible for confirming (a) that Tenant's proposed use of the Premises is permitted under applicable zoning and other laws; (b) that there is suf5cient parking for such use; and (c) that Tenant will be able to secure the necessary approvals for Tenant's signage, if any. sl INITIAL TERM The term of the lease shall be for a period commencing on [he date of the lease and ending 5 years and 0_0 months after the following date (the "Term Commencement Date") (or the pearliest ? latest of the following dates, if more than one date is checked): Januarv 01 2003 ? the date of completion of construction of tenant improvements by ? Tenant ? Landlord. ? the date that Tenant opens for business. Tenant shall have possession of the Premises on: Upon paying £rst months rent and security Deposit and Insurance. e> OPTIONS TO EXTEND ? Applicable ~ Not Applicable Tenant shall have extension option(s) of year(s) each upon calendar days' written notice prior to the expiration of the term of the lease at the following rental: ? to be determined by mutual agreement. ? equal to fair market rental value. it BASE RENT The monthly base rent shall be as follows: ? $ 1.25 per rentable square foot Januarv 01,2004 to December 31 2004 ? $ 1.29 per rentable square foot January 01 2005 to December 31,2005 ? g 1.33 per rentable square foot January 01 2006 to December 31,2006 ? $ 1.37 per rentable square foot January 01,2007 to December 31.2007 ? $ 1.41 per rentable square foot January 01,2008 [o December 31 2008 ? $ per rentable square foot to © 2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmission, display, uploading, distribution or page 2 adaptation is strictly prohibited and will result in liability of up to $150,000. Permission [o photocopy denied. Reference Dale: October 13. 2003 Tenant's Initials: Landlord's Initials: _ ? The base rent shall be as follows: The base rent shall be: ? Inclusive of all operating expenses; OR Net of all operating expenses; ? Inclusive of operating expenses for the base year, with Tenant responsible for increases in operating expenses over the base year; Payment of base rent shall commence on the following date (the "Rent Commencement Date") (or the ? earliest ? latest of the following dates, if more than one date is checked): The Term Commencement Date set forth above. ? or the date that Tenant opens for business, whichever is earlier. ? [he date that Tenant opens for business. el CONCESSIONS ? Applicable ? Not Applicable A. Rent Abatements: ? Tenant shall be entitled to a rent abatement as follows: a. Other: s> SHARED EXPENSES ~Applicab[e ? Not Applicable w. Estimated Percentage Share: ~ Four percent ( 4_00%) ? to be determined a. Estimated Shared Expenses: ? $ 0.35 (estimated) per rentable square foot per month. c. Commencement Date of Shared Expenses: L9~ the Term Commencement Date. ? the Rent Commencement Date. to> TENANT IMPROVEMENTS ? Tenant improvements: Any improvements, alterations, or construction to the Premises (except as otherwise provided in this section) shall be at Tenant's sole expense and shall be in conformity with the terms of the lease and (if checked): ? the specifications attached hereto as Exhibit ? Tenant improvement allowance: Tenant shall receive a tenant improvement allowance in the amount of ? $ ? $ per rentable square foot on the following terms: ? Landlord improvements completed: Landlord improvements [o the Premises are completed. Landlord work: Landlord shall do the following work on the following terms: and~dt in fleering and sink. ? Other: nl HAWAII GENERAL EXCISE TAX Tenant shall also pay with each payment due under the lease an amount equal to the Hawaii general excise tax or any successor tax assessed against Landlord on such payment. tat SECURITY DEPOSIT ? Applicab/e ~ Nor Applicable Upon ? execution of the lease ? execution of this Letter of Intent, Tenant shall deposit with ? Landlord ? Landlord's Broker a secm~ity deposit equal to the following: ? one month's base rent. ? plus one month's operating expenses ? $ ? plus General Excise Tax (GET). © 2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmission, display, uploading, distribution or page 3 adaptation is strictly prohibited and will result in liability of up to $150,000. Permission [o photocopy denied. Reference Date: October 13. 2003 Tenant's Initials: _ Landlord's Initials: ta> RETAIL PROVISIONS ? Applicable ~ Not Applicable w. Percentage Rent: percent ( of Tenant's gross sales for a lease year in excess of ? Base Rent ? $ ? .Percentage Rent is ? payable monthly and annualized. ? payable monthly without annualization. ? payable annually. ? payable o. Radius Clause: ? Applicable Not Applicable ? Tenant is prohibited from opening a similar business within miles from the Premises. c. Exclusive Use Clause: ? App/icable Not Applicable n. Opening and Continuous Operation Requirements: ? Applicable Not Applicable ? Tenant shall open for business no later than or the Rent Commencement Date, whichever is earlier. ? the Rent Commencement Dale. ? Tenant shall remain open for the following minimum hours: Monday through Thursday: Friday: Saturday:- Sunday: e. Signage: To have owners approval and comply with State and Countv rules and regulations F. Advertising or Promotional Fund Contributions: $ /month. Tenant's obligation to make such contribution shall commence upon ? the Rent Commencement Date; ? the Term Commencement Date; tat EXPANSION RIGHTS ? Applicable fib Not Applicable Tenant has ? the option to lease; ? the first right of refusal regarding additional space (the "Expansion Space") ? on floors ; ? located adjacent to the Premises; ? shown on Exhibit , ? on the following terms: a. Time Period for Exercise of Right: ? term of the lease. s. Rent for Expansion Space: ? equivalent to rent per square foot for Premises. ? to be determined by mutual agreement. ? equal to the then current fair market rental value. ? equal to bona-fide offer made by third-party. c. More than One Space at Issue: If more than one space is at issue, Tenant must exercise option as follows: ts> INSURANCE REQUIREMENTS Tenant shall carry the following minimum limits: a. Commercial General Liability: $ 1,000 000.00 per occurrence and $ 2,000 000.00 aggregate for bodily injury, death, and property damage, including liquor liability if liquor is sold. Landlord and Landlord's agent shall be named as additional insureds. n. Hazard: c. Other: Insurance requirements attached as exhibit B. ©2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmission, display, uploading, distribution or page 4 adaptation is strictly prohibited and will result in liability ofup to $150,000. Permission to photocopy denied. Reference Dale: October 13. 2003 Tenant's Initials: Landlord's Initials: _ tel LANDLORD'S SERVICES Landlord shall provide the following services and utilities: ? air-conditioning; L9~ electricity; L9~ water and other supplies for restrooms; ? janitorial service ? five days a week ? seven days a week Three days per week ? automatic elevator service; ~ trash removal; from restrooms only Landlord shall provide such services and utilities: ? normal building hours. ? during [he following hours: L~ The cost of these services is included rn the shared expenses paid by Tenant except for the following services which are paid for by Landlord: none ? Landlord will pay for these services without reimbursement by Tenant. ? Rules and Regulations are attached to this Letter of Intent. rrl LANDLORD'S MAINTENANCE ? Applicable ? Not Applicable - Landlord shall maintain the ? Project L~the building in which the Premises are located ? ? Landlord shall ? at Landlord's sole expense OR ? at Tenant's expense be responsible only for normal repairs to the structure and exterior of the B~ The cost of Landlord's maintenance is included in the shared expenses paid by Tenant. ? Landlord will pay for Landlord's maintenance without reimbursement by Tenant. rs> TENANT'S RESPONSIBILITIES Tenant shall maintain the Premises. Tenant shall provide the following at Tenant's sole expense: its own janitorial services; L~ its own trash removal; IB' sorting of [rash for recycling; ? removal of trash from a central collection point; ? separate metering for electricity; ? separate metering for water; ? payment of its own real property taxes; r9> SUBLEASING AND ASSIGNMENT Tenant may sublease or assign its interest in the Premises on the following terms: Only with consent of Landlord, which consent shall not be unreasonably withheld. ? Only with consent of Landlord, which consent may be withheld in Landlord's sole discretion. ? The foregoing notwithstanding, Tenant may sublease or assign all or part of its interest in the Premises to ? its affiliates ? its parent company ? any related entity. For purposes of this provision, any mergers, acquisitions, changes in ownership or control or changes in organizational structure, shall be deemed a sublease or assignment. ? Landlord shall have the right to recapture any space to be subleased or assigned by Tenant on the following terms: ? zo> GUARANTIES The lease shall be guaranteed by 6eeafy-e%Hawaii--_--- _ rtl APPROVALS ? Applicable ~ Nor Applicable This Letter of ]n[ent is subject to the following approvals, and this Letter of Intent shall be null and void if such approvals are not received by ? Approval by the Landlord's board of directors or partners or ? Approval by the Tenant's board of directors or partners or _ _ ©2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorizedcopyfng, transmission, display, uploading, distribution or page 5 adaptation is strictly prohibited and wilt result in liability of up to $150,000. Permission to photocopy denied. Reference Date: October 13. 2003 Tenant's Initials: _ Landlord's Initials: _ zz) LANDLORD REVIEW OF TENANT FINANCIAL INFORMATION ? Applicable L9~ Not Applicable Within calendar days of [he date of this Letter of Intent, Tenant and any guarantors shall provide copies of the following to Landlord for Landlord's review and approval: ? Federal and state tax returns for the past _ years; ? Financial statements for the past years; za7 RECORDING THE LEASE AND PAYMENT OF CONVEYANCE TAX AND RECORDING COSTS Tenant shall pay any conveyance tax imposed in connection with the lease. L9~ The lease may not be recorded. ? Tenant may record the lease, or a memorandum [hereof on the following conditions: ? Tenant pays all taxes and recording fees connected with such recordation. ? Tenant simultaneously delivers a termination of lease, in form and content reasonably satisfactory to Landlord, to to be recorded at the direction of only Landlord upon the expiration or other termination of the lease. za) SPECIAL CONDITIONS zs) EXHIBITS AND ADDENDA Attached to this Letter of Intent are the following exhibits and addenda: Exhibit A: Depiction of the Premises ? Exhibit B :Parking Plan and ~ Exhibit B Insurance requirements. ze> FORM OF LEASE Ili' The initial form of lease shall be provided by Landlord. ? The initial form of lease shall be provided by Tenant. ? Within calendar days of execution of this Letter of Intent, the party responsible for preparing the lease shall provide the other party with a form of lease. z~) BROKERAGE COMMISSION Landlord shall pay the following brokerage commission: IBS An amount se[ forth in a separate agreement signed by Landlord. The foregoing provisions of this Letter of Intent shall not be deemed an offer to lease, an agreement to negotiate, a lease or other agreement, to contain all necessary material terms, to be legally binding to any extent, or to confer any rights ojusage or occupancy. Rather, the foregoing provisions are subject to withdrawal and modification, at any time, by either party, without cause, and there shall be no legal obligation wilh respect thereto unless and until the parties execute and deliver a formal lease agreement designated as such. No reliance, performance, change or loss of position, or other action or expectation now or hereafter made or incurred based upon any of those provisions, whether or not at the request or urging of [he other party, shall be deemed to create any obligation or agreement of any type. BINDING PROVISIONS Check and fit( in applicable provisions. Any provisions not checked or filled in are not applicable. Notwithstanding the foregoing, the parties intend the following provisions to be legally binding: za) INDEMNIFICATION BY TENANT REGARDING EXERCISE OF INSPECTION RIGHTS Tenant agrees to indemnify, defend and hold Landlord, Landlord's Broker, and Tenant's Broker harmless from any actions, suits, liens, claims, damages, expenses, losses and liability for damage to personal property or personal injury to the extent arising From or attributable to any acts performed by Tenant or its authorized agents in exercising Tenant's inspection rights, if any, under this Letter of Intent. This agreement to indemnify Landlord, Landlord's Broker, and Tenant's Broker shall survive any termination of this Agreement. ©2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmissioqdisplay, uploading, distribution or page 6 adaptation is strictly prohibited and will result in liability of up to $150,000. Permission to photocopy denied. Reference Date: October 13 2003 Tenant's Initials: _ Landlord's Initials: zs> CONFIDENTIALITY w. Confidentiality Obligation: ~ The parties shall keep confidential each of the provisions of this Letter of Intent. ? Tenant shall keep confidential all information Tenant obtains from Landlord about the Premises, the building in which the Premises are located, and the Project. ? Landlord shall keep confidential all information Landlord obtains from Tenant about Tenant's financial condition, business strategy, plans, or marketing information. e. Exceptions to Confidentiality Obligations: The parties' obligations of confidentiality shall be subject to the following e~xeptions (1) if and to the extent the information is already a matter of public knowledge; (2) if and to the extent the information is acquired totally apart from the other party or its employees, agents or representatives; (3) if such disclosures as may be necessary to the disclosing party's broker, ]ender, attorney, accountant, and space planner (collectively, "Permitted Confidants") on the condition that such party shall require each of its Permitted Confidants to keep that information confidential; and (4) if such disclosures as are required by law or by any litigation between the parties hereto with respect to the Premises, the building in which the Premises are located, or the Project on the condition that prior to making any disclosures required by law, the disclosing party shall give the other party as much notice thereof as is legally permitted, along with a copy of the proposed disclosure. c. Binding Effect of Confidentiality Obligations: The foregoing duties of confidentiality shall survive this Letter of Intent and continue until the L9~earlier of (a) the date the lease contemplated hereby is fully executed and delivered, or (b) one year from the date of this Letter of Intent; OR ? ao> DISCLAIMER Neither CCIM nor any attorneys employed by CCIM to prepare this form shall be liable in any manner whatsoever to any person for any inaccuracies or omissions in this form or in the use of [his form. Persons using this form are advised to consult an attorney, engineer, architect, accountant, or other appropriate professional for advice. at> EXECUTION OF THIS LETTER OF INTENT A. Faxed Signatures: Faxed signatures shall be acceptable to both parties for this Letter of Intent. e. Acceptance: If Landlord and Tenant do not execute this Letter of Intent by r :00 p.m. HST on October 17 200't this Letter of Intent shall be null and void. ' atl AGENCY DISCLOSURE w. Landlord's Broker: Landlord is represented by the company (and all its licensees and salespeople), if any, identified on page I above ("Landlord's Broker"). a. Tenant's Broker: Tenant is represented by the company (and all its licensees salespeople), if any, identified on page 1 above ("Tenant's Broker"). c. Additional Disclosures: o. Acknowledgement by Landlord and Tenant: By initialing below, Landlord and Tenant acknowledge that oral or written disclosure of such representation was provided to them and that they have read and understand the agency disclosure set forth in A through C above and the disclaimers set forth in E and F below. Landlord's Initials: Tenant's Initials: E. Written Disclosures: Landlord's Broker and Tenant's Broker specifically disclaim any responsibility for, and Landlord and Tenant acknowledge that they shall not rely upon, any disclosures made by either Landlord's Broker or Tenant's Broker about the Premises or the other party unless such disclosures are in writing and signed by the broker making the disclosure. e. No Specialized Advice: Landlord's Broker and Tenant's Broker strongly recommend that the parties consult an attorney, architect, accountant, building contractor, environmental specialist, or other appropriate professional for further assistance in gathering and analyzing information about the Premises and/or the other party and specifically disclaim any responsibility for providing such specialized advice. © 2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmission, display, uploading, distribution or page 7 adaptation is strictly prohibited and will result in liability of up to $ I SQ000. Permission to photocopy denied. Reference Date: October 13 2003 Tenant's Initials: _ Landlord's Initials: SIGNATURE(S) -Landlord SIGNATURE(S) -Tenant Holomua LLC c/o Clark Realty Corporation Countv of Hawaii By Hy Its Its Dated: Dated: sy Hy IIS I[5 Dated: Dated: EXHIBITS ATTACHED ©2000 HAWAII CCIM. ALL RIGHTS RESERVED. Any unauthorized copying, transmission, display, uploading, distribution or page $ adaptation is strictly prohibited and will result in liability ofup to $150,000. Permission to photocopy denied.