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HomeMy WebLinkAboutCOM 0539.000 2002-2004 ~<r or y.- Harry Kim ~''•y~' ` "'''~t~a William Takaba Mayor -I i ~ ~ Director Nancy E. Crawford Deputy Director County o~~~~vaLi , i~~~~i~,u Finance Department 25 Aupuni Street, Roum 118 • Hilq Hawaii 96720 (808)961-8234 • Fax (808)961-8248 February 23, 2004 Honorable James Arakaki, Chairperson and Members of the County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Resolution for amulti-year lease Enclosed is a resolution authorizing the Department of Liquor Control to enter into a multi-year lease for five (5) years for office space for its Kona Office. Their present location is too small to conduct their numerous commission and board meetings, examinations, and training sessions and it is also non-ADA compliant. In order to expedite the implementation of this lease so that the office space renovations may commence immediately, I would like to request a waiver from the Finance committee and have this bill heard at the next Council meeting scheduled for March 5, 2004. If there are any questions, please do not hesitate to call the Department of Liquor Control. William Tak ba Director of Finance APPROVED: Cv~~ Harry Kim Mayor Enc. cc: Liquor Control S~j Comm. No. 2eS . /b°I--b Ref. To: Raf. Date Form B-52 7/18/91 DEPARTMENT OF F[NANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Liquor Control DATE: February 13, 2004 STAFF CONTACT: Janice A. Pakele PHONE: (808) 961-8218 A. Request: Multi-year lease approval for our Kona office space between the County of Hawaii and Harvey S. Tajiri, Trustee of the Harvey S. Tajiri Revocable Living Trust dated and Helene H. Tajiri, Trustee of the Helene H. Tajiri Revocable Living Trust. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Department of Liquor Control holds six (6) commission, three (3) board meetings, 24 exams, and numerous training sessions in their Kona office conference room. It is not ADA compliant. The conference room seats only 15 and is too small for our curent needs. In this 1050 square foot office there are two offices, one conference room, a coffee room and lobby area. We have found a 2,374 square foot office space at 75-5722 Hanama Place, Kailua-Kona. The space is adequate and meets our needs. The rental rate is $1.75 per square foot for the first year and increases by 3% per square foot each year of the 5 year lease. There is also a common area maintenance fee of $0.25 per square foot. We will be paying for our own electricity at an estmate of $0.20 per squaze foot. SIGNEDL~'~ DATE:_ F 1 9 L~C~ OFFER TO LEASE Date: February 6, 2004 COUNTY OF HAWAII, DEPARTMENT OF LIQUOR CONTROL 101 Aupuni Street, Suite 230 Hilo, Hawaii 96720 Attn: Jan Pakele, Director COUNTY OF HAWAII, DEPARTMENT OF LIQUOR CONTROL ("Lessee"), offers to lease through INOUE HAWAII REALTY CORPORATION, the premises described below from HARVEY S. TAJIRI, Trustee of the Harvey S. Tajiri Revocable Living Trust and HELENS H. TAJIRI, Trustee of the Helene H. Tajiri Revocable Living Trust ("Lessor") on the following terms and conditions: AREA & LOCATION: 2,374 square feet located at Kona Center, 75-5722 Hanama Place, Kailua-Kona, Hawaii USE OF PREMISES: The premises shall be used for the following purpose(s): General office for the Department of Liquor Control. TERM: The term of the lease shall be five (5) years beginning March 1, 2004 or upon the submittal and receipt of the Occupancy Certificate by Lessor, whichever occurs later and ending five (5) years thereafter. OPTION: Lessee shall have the option to renew the lease for an additional five (5) year(s) upon one hundred eighty (180) days written notice prior to the expiration of the initial term of the lease. The rent to be charged during the extended term shall be as follows: for the first year of the extended term, 103% of the minimum rent for the last year of the initial term and for each year thereafter, 103% of the minimum rent for the previous year. RENT: Gross rent for the area leased shall be: Years 1-5: $2.00 sq. R./mo $4,748.00 per month including common area maintenance, but not electricity, subject to revision below. REVISION OF RENT: Pursuant to the lease, the rent payable under the lease shall be subject to revision for increases in the volume of water 1 consumed in any billing period over the average consumed by Lessor with respect to the Property in a time period equal to the length of the billing period, over the 12 month period immediately preceding the commencement of the lease term. Due to extended hours of air conditioning usage, Lessee's air conditioning and electricity for subject space shall be sepazately metered and paid by Lessee. BUILDING SERVICES: The following services and utilities shall be provided and included in the rent paid by Lessee: • Building fire and liability insurance • Landscaping maintenance • Water and sewer (subject to adjustment) • Refuse collection • Common area maintenance • Window washing • Real property taxes -exempt status (Lessee shall cooperate with Lessee in qualifying for real property tax exemption) • Management and accounting fees PARKING: Parking shall be used in common as provided in the lease for the duration of the lease as the same may be extended (not less than 8 spaces). EXCISE TAX: In addition to the rent, Lessee shall pay the Hawaii General Excise Tax (currently 4.166%), or any successor tax, which may be payable thereon. DEPOSIT: None. OCCUPANCY: Lessee shall be given occupancy of the premises by March 1, 2004 or upon submittal and receipt of the Occupancy Certificate, whichever occurs later, however, if there is a delay in Lessor giving occupancy, which delay is caused by events beyond the control of Lessee, the obligation to pay rent shall be deferred until such occupancy shall be granted in writing to Lessee by Lessor, and the expiration date of the lease shall be adjusted back the same number of days as the period of delay in the commencement date of the lease. SUBLEASING AND Lessee shall not have the right to assign or sublease the ASSIGNMENT: lease, with the prior written consent of Lessor, which 2 consent shall not be unreasonably withheld, provided that Lessor may require that any new use be compatible with other portions of the building and provided further that Lessor may increase the rent to the then fair rental of the Premises. LEASEHOLD Lessor shall provide, at its expense, the following leasehold IMPROVEMENTS: improvements prior to occupancy: • Dropped ceiling • Separate meter for electricity and A/C • Air handler and air conditioning ducting completed • Recessed fluorescent lighting and ceiling system • Demising walls • Entry doors • Approximately 1,200 sq. ft. conference room • Approximately 800 sq. ft. private office • Computer outlets - to be specified • Phone outlets - to be specified • Electrical switches in each room • Electrical outlets in each room • Floor covering with cove base • Architectural and engineering drawings and building permits • Create front entry door from main hallway and back exit door fronting Hanama Street COUNTERPARTS: The parties hereto agree that this Offer may be executed in several counterparts, each of which shall be deemed an original, and all executed counterparts when taken together shall constitute a single complete agreement as long as each party has signed at least one counterpart. INSURANCE: Lessee is self-insured government entity. No insurance policy is required. ADA: Lessor shall ensure that the building, all improvements, and its common areas comply with Title III of the Americans with Disabilities Act ("ADA"). LEASE: Lessor shall prepare a lease in conformity with the terms and conditions specified in this Offer to Lease, together with its standard lease terms, conditions and covenants. SPECIAL CONDITIONS: This offer shall be subject to the approval of the County Council of Hawaii. 3 DURATION OF OFFER: This Offer to Lease shall remain open for acceptance until 4:30 p.m. (Hawaii Standazd Time), March 31, 2004. If a signed acceptance is not returned to Lessee by the date and hour specified above, the Offer shall be null and void, unless extended in writing, and the aforementioned deposit shall be promptly returned to Lessee. ACCEPTANCE OF OFFER: The acceptance of this Offer, or the acceptance of a counteroffer, shall not create legal rights or obligations with respect to the lease of the premises. Legal rights and obligations shall be created only upon the execution of the lease by Lessor and Lessee. Both parties understand that neither this Offer to Lease nor any discussions or negotiations which the parties may have had or may have in the future regarding the premises shall create any obligation whatsoever on the part of either party to enter into a final and binding contract. COUNTY OF HAWAII, DEPARTMENT OF LIQUOR CONTROL By: Title: Date: "LESSEE" Lessor hereby represents to Lessee that Lessor will have good title to the premises and has full authority to accept the foregoing Offer and to enter into a lease of the premises in accordance with the terms of this Offer to Lease. Receipt and acceptance of this Offer is hereby acknowledged. HARVEY S. TAJIRI, Trustee of the Harvey S. Tajiri Revocable Living Trust HELENE H. TAJIRI, Trustee of the Helene H. Tajiri Revocable Living Trust "LESSOR" 4 2-24-o4;i tsoAM: rla KSnoto/okamoto eUe 9353672 n 4 NAKAMOTO, OKAMOTO 6 YAMAMOTO ATTORNEYS AT LAW, A LAW CORPORATION ROV K. NAKAMOTO 187 KAPIOLANI STREET TELEPHONE ~B OR)961-0641 ALAN M. OKAMOTO HI LO, HAWAII 96]20 iA% (80B) 935-3872 ]FREE I. YAMAMOTO HENRV T. NAKAMOTO AMOCdNOVHAWAII. COM February 24, 2004 Post-it®Fax Note 7671 Uat : payges~ via fax and mail ro 1 ~Q From Jan Pakele I Ca./Dept Co. Department of Liquor Control Phone # Phone # County of Hawaii ~ ~ ~ OtO t-{ Fax # Fax # Re: Letter of Intent to Lease Kona Center Space 75-5722 Hanama Place, Kailua-Kona, llawaii Dear Ms. Pakele: I am writing as Harvey and Helene Tajiri's attorney regarding [he proposed lease at the Kona Center. I am writing to confirm that the attached provision will be a part of the proposed lease to your agency and that a revised version of the ]ease form will be forwarded that contains this provision. Very Truly Yours, Alan M. Okamoto enclosure cc via fax with enclosure: William Takabe, Finance Director eoe 9as.3e~z # 2/ ^ p_pb-04:11:50AM; Nakamoto/okamo Co t • Section 2.04. ~,essee's Option to Terminate. During the initial term and from and after the expiration oftwenty-four (24) months from the date of commencement of the term hereby demised, the Lessee shall have an unconditional right and option to terminate this Lease upon notice in writing to the Lessor given not less than one hundred eighty (180) days prior to the effective date of such termination; IT BEING UNDERSTOOD AND AGREED, HOWEVER, that in the event the effective date of such termination shall occur prior to the expiration of thirty-six (36) months from the date of commencement of the term hereby demised, Lessee shall, in consideration for such termination, pay [o Lessor the lesser of: (a) Fifteen Thousand Dollazs ($15,000.00) or (b) the unamortized cost of leasehold improvements to the Premises constructed by the Landlord prior to or during the term hereby demised, said costs to be deemed amortized in accordance with the straight-line method over the period of five (5) years. ~`y JAMES Y. ARAKAKI "O~ AARON S.Y. CHUNG Chnirnern & RrridingQ~rcr d;~ BOBBY JEAN LE[THEAD-TODD LENINGRAD ELARIONOFF .I. CURTIS TYLER, III FRED C. HOLSCHUH, M.D. Vice Chuirninn BOB JACOBSON ~ "~w JOE REYNOLDS GARY SAFARIK HAWAII COUNTY COUNCIL Counh~ ofHawai'i HaH~ni'i Countr Building ?,5 Aupuni Street, Suite 209 Hilo. Hawni'i 96720 February 24,2004 Re: Comm. 534 James Y. Arakaki, Chair Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 RE: Resolution No. 164-04 transmitting a resolution authorizing the Department of Liquor Control to enter into amulti-year lease for five (5) years for office space for its Kona Office. Pursuant to Section 1(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawaii, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial [t is therefore advantageous that approval is granted and the matter placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sincerely, Aaron S.Y. Chung, Chair Committee on Finance Approved/Date/Waive to Council: Disapproved/Date/Refer to FC: l . am s .Arakaki, Chair James Y. Arakaki, Chair ai`i County Council Hawaii County Council