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Home My WebLink AboutCOM 0803.000 2004-2006 Mt+ w N~r Harry Kim ,c~ o William Takaba Mayor Director Nancy E. Crawford •''1~` Deputy Director County of Hawaii Finance Department 25 Aulmni Street, Room 118 • Hilo, Hawaii 96720 (808) 961-8234 • Fax (808) 961-8248 March 30, 2006 Stacy K. Higa, Chairman and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Resolution for Multi-year Lease The Kona Motor Vehicle Registration section ("KMVR") currently shares space with the Kona Real Property Tax office ("KRPT") at the Hanama Place Office Building in Kailua-Kona. The KMVR utilizes 768 square feet (including lobby) and KRPT occupies 1728 square feet. In order to better serve the public, the Finance Department is proposing to lease space in the Territorial Centre building in Kailua-Kona for the KMVR. The space currently available was formerly used by Territorial Savings Bank and contains an area of 1,451 square feet. Six parking stalls dedicated to the tenant are located directly in front of the office, which is located on the ground floor. The following are the advantages of moving the KMVR to this new space: 1. There will be more space to accommodate a growing staff and the public. The lobby area is more spacious, comfortable, and efficient. 2. As a former bank, the interior improvements were designed to handle functions similar to those of the KMVR. 3. Minimal renovations will be needed, which means that the KMVR can move in by June 2006. 4. Parking is better than at Hanama Place. Six stalls, monitored by building security, will be available for visitors to the KMVR. 5. The KRPT will be able to utilize the space vacated by the KMVR. KRPT staff is also growing to better serve West Hawaii and the current space used by KRPT is too small. 6. The parking situation will be somewhat relieved at Hanama Place since KMVR draws a lot of traffic, particularly at the end of each month. Enclosed is a resolution authorizing the County of Hawaii to enter into a multi-year lease for five (5) years for office space located at the Territorial Centre, 75-5751 Kuakini Highway, Suite 107, K ~ wg, Olo / Comm No. Ref. To: Hawaii County is an Equal Opportunity Provider and Employer Ruf .-rote Honorable Stacy K. Higa and Members of the County Council Page Two March 30, 2006 in Kailua-Kona to be used by the KMVR. Although the lease is for five years, provisions are included to end the lease after two years. Also enclosed is draft 1 of the Proposed General Terms and Conditions. If there are any questions, please contact me at your convenience. Thank you very much. William akaba Director of Finance APPROVED: 3" Harry Kim ~s Mayor Enclosures DRAFT 1: 3/24/06 OFFER TO LEASE PROPOSED GENERAL TERMS AND CONDITIONS Date: March 24, 2006 Willum Ltd. 94-748 Hikimoe Street Waipahu, HI 96797 Attention: Terry Young Subject to the approval of the Hawaii County Council, the COUNTY OF HAWATI ("Lessee") offers to lease, through NANCY KRAMER, the premises described below from WILLUM LTD. ("Lessor"), on the following terms and conditions: AREA AND LOCATION: Approximately 1,451 square feet of office space located at Territorial Centre, 75-5751 Kuakini Highway, Suite 107, Kailua-Kona, HI. TMK: 7-5- 022-001. The actual square footage and location of the premises shall be determined by agreement prior to the execution of the lease by Lessor and Lessee. USE OF PREMISES: The premises shall be used for the following purpose: Vehicle registration for Treasury Division, Department of Finance, County of Hawaii. TERM: The term of the lease shall be five (5) years beginning June 1, 2006 or upon completion of all interior improvements by the Lessor, whichever occurs later and ending five (5) years later. OPTION TO CANCEL: Lessee shall have an unconditional right to terminate this lease effective after two (2) years with one hundred eighty (180) days prior written notice to Lessor. Should Lessee terminate the agreement before the 5'h anniversary of the contract, Lessor may assess a share of the cost of the improvements for the remaining term of the lease, but no more than $3,000. If terminated after the 2"4 anniversary, but before the 3`d anniversary, the assessment shall be $3,000; if terminated after the 3`d anniversary, but before the 4'h anniversary, the assessment shall be $2,000; if terminated after the Offer to Lease Page 2 March 24, 2006 4`" anniversary, but before the 5`h anniversary, the assessment shall be $1,000. RENT: Gross rent for the area leased shall be $2.25/sq. fr. per month of the total rental space. Common area maintenance charge shall be $.67/ sq. ft. per month of the total rental space. BUILDING SERVICES: The following services and utilities shall be provided and included in the rent and common area maintenance charge paid by the Lessor: • Chilled water for air conditioning. • Building fire and liability insurance • Landscaping maintenance • Water and sewer • Refuse collection • Common are maintenance • Window washing • Real property taxes - exempt status for this unit • Management and accounting fees • Six (6) reserved parking stalls directly in front of the rented area for persons visiting the Treasury Division • Others, as defined in the lease agreement HAZARDOUS MATERIALS: To Lessor's current actual knowledge, the premises are free of hazardous waste. PARKING: Lessor agrees to provide Lessee with six (6) assigned parking stalls for persons visiting the Treasury Division directly in front of the rented area for the term of the lease, at no cost. 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. Approved by: Offer to Lease Page 3 March 24, 2006 OCCUPANCY: Lessee shall be given occupancy of the premises by June 1, 2006, or upon completion of all interior improvements by the Lessor, whichever occurs later, and ending five (5) years later. If there is a delay in Lessor giving occupancy, which delays caused by events beyond the control of the Lessor, the obligation to pay rent shall be deferred unit 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 delay in the commencement date of the lease. SUBLEASING AND ASSIGNMENT: Lessee shall not have the right to assign or sublease the lease, without the prior written consent of Lessor, which consent shall be in Lessor's sole discretion, and shall otherwise be subject to and on the terms set forth in the lease. LEASEHOLD IMPROVEMENTS: Lessor shall provide, at its expense, the following leasehold improvements prior to occupancy. • New carpeting, wall to wall • Removal of wallpaper and painting of all walls • Repairs to interior walls, counters, etc. • Computer lines, as designated by Lessees • Phone outlets, as designated by Lessees • Electrical outlets and switches as designated by Lessees • ADA accessibility improvements to interior, if necessary, • Architectural and engineering drawings and building permits, if applicable. FACSIMILES: The parties hereto agree that telephone facsimile (FAX) copies of any documents required to be executed by the provision herein will be accepted as if signed in person, as originals. Upon request, the party submitting the facsimile shall provide the original document within a reasonable time, however, failure to provide such an original shall Approved by: Offer to Lease Page 4 March 24, 2006 have no effect upon the validity of the execution by facsimile. 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 lease 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 American with Disabilities Act ("ADA"). LEASE: Lessee 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. AGENCY DISCLOSURES: NANCY KRAMER represents Lessor in this transaction. 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. Approved by: Offer to Lease Page 5 March 24, 2006 By: William Takaba Title: Director of Finance Date: March 24, 2006 Lessor hereby represents to Lessee that Lessor has 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. By: Willum Inc. Title: Owner Date: Approved by: