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HomeMy WebLinkAboutCOM 0889.000 2004-2006 qtr or y Harry Kim; William Takaba Mayor Director Nancy E. Crawford ~i'• Deputy Director County of Hawaii Finance Department 25 Aupuni Street, Room 118 r Hilo, Hawaii 96720 (808) 961-8234 r Fax (808) 961-8248 May 2, 2006 Stacy K. Higa, Chairman and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Resolutions for Multi-year Leases In order to complete the repairs and renovations to the County Building in the most expeditious way possible, the administration has decided to vacate the County Building while the work on the building takes place. We estimate needing a total of between 17,000 - 20,000 square feet of office space and another 6,000 - 7,500 square feet of storage space for this purpose. We have identified the following two facilities that are available and suitable for our needs: 1. 891 Ululani Street. This property, located across from the Police Department, was formerly the VA Hilo Medical Office Building. It contains 11,996 square feet of office space and 28 parking stalls that can be reconfigured to include a few more. The owner of the building has agreed to furnish the County with additional parking stalls at one of two adjacent empty lots. 2. Bay C-5 at the Puainako Center, 2100 Kanoelehua Street. This space, located next to Checkers Auto Parts, was formerly occupied by Long's Drugs Express and Pay `n' Save. It contains 7,540 square feet of office space and 7,282 square feet of storage/warehouse. The owners have agreed to expand its parking facilities to the rear of Bay C-5 if the County leases this space. Both properties will be available on July 1, 2006. Enclosed are resolutions authorizing the County of Hawaii to enter into multi-year leases for the properties above. Although the leases are for five years, provisions are included to end the leases after three years with no penalty. Also enclosed are drafts of respective Proposed General Terms and Conditions. ~p,q .3(o6-Ole Comm. No..- Ref. 70: _ Hawaii County is an Equal opportunity Provider and Employer Ref. v ate Honorable Stacy K. Higa and Members of the County Council Page Two May 2, 2006 If there are any questions, please contact me at your convenience. Thank you very much. t v William Takaba Director of Finance APPROVED: GQ " Harry Kim yMayor Enclosures DRAFT 3: 4/28/06 COUNTY OF HAWAII OFFER TO LEASE PROPOSED GENERAL TERMS AND CONDITIONS Date: April 27, 2006 Harvey S. Tajiri Helene H. Tajiri 310 Kipa Street Hilo, HI 96720 Subject to the approval of the Hawaii County Council, the COUNTY OF HAWAII ("County"), offers to lease the premises described below from HARVEY S. TAJIRI AND HELENE H. TAJIRI ("Landlord"), on the following terms and conditions: AREA AND LOCATION: The property at 891 Ululani Street, Hilo, Hawaii, containing a 2-story office building with approximately 11,996 square feet of office space, restrooms, meeting rooms, and reception areas; and a parking lot. The actual square footage and location of the premises shall be determined by agreement prior to the execution of the lease by County and Landlord. ADDITIONAL PARKING: As a condition of the lease, the Landlord shall secure an adjacent property, providing parking for at least forty (40) additional automobiles. This will be provided at no cost to the County while the County is leasing the property. USE OF PREMISES: The property shall be used for County offices, storage, and parking. TERM: The tern of the lease shall be five (5) years beginning July 1, 2006, subject to approval of the Hawaii County Council and the Landlord providing additional parking as described above. OPTION TO RENEW: The County 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 term of the lease. The rent to be charged during the extended term shall be based upon the then fair market value of the premises, but Page 1 of 4 County Approval/Date: / Landlord Approval/Date: / DRAFT 3: 4/28/06 no less than the monthly rent of the first five (5) years. In the event the parties fail to reach agreement, the rent shall be determined by arbitration as prescribed in the lease. OPTION TO CANCEL: County shall have an unconditional right to terminate this lease without penalty effective after three (3) years with one hundred eighty (180) days prior written notice to Landlord. RENT: Gross rent for the area leased shall be: $2.00/sq. ft./month. METHOD OF PAYMENT: Payments shall be advanced annually, based on the County's fiscal year. The first and last payments shall be adjusted according to the number of actual months leased during the respective fiscal year. BUILDING SERVICES: The following services shall be provided and included in the rent paid by the County: • Exterior building repairs and maintenance (includes, but not limited to, painting and roof repairs) • Structural repairs and repairs of damages to building not caused by County's negligence • Property insurance • Real property taxes - exempt status HAZARDOUS MATERIALS: To Landlord's current actual knowledge, the premises are free of hazardous waste. EXCISE TAX: In addition to the rent, County shall pay the Hawai'i General Excise Tax (currently 4.166%), or any successor tax, which may be payable thereon. DEPOSIT: None. OCCUPANCY: County shall be given occupancy beginning July 1, 2006, subject to approval of the Hawaii County Council and the Landlord providing additional parking as described above. If there is a delay in Landlord giving occupancy, which delays caused by events beyond the control of the County, the obligation to pay rent shall be deferred until such occupancy shall be granted in writing to County by Page 2 of 4 County Approval/Date: Landlord Approval/Date: / DRAFT 3: 4/28/06 Landlord, 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. LEASEHOLD IMPROVEMENTS: Landlord shall pay for the following leasehold improvements prior to occupancy: None 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 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: County is a self-insured government entity. No insurance policy is required. ADA: Landlord shall ensure that the building, all improvements, and its common areas comply with the American with Disabilities Act ("ADA"). LEASE: County shall prepare a lease in conformity with the terms and conditions specified in this Offer to Lease, together with its standard lease terns, conditions and covenants. This offer shall be subject to the Landlord and County agreeing on the terms, conditions, and covenants of the final lease. SPECIAL CONDITIONS: This offer shall also be subject to the approval of the Hawaii County Council. Page 3 of 4 County Approval/Date: / Landlord Approval/Date: / DRAFT 3: 4128106 AGENCY DISCLOSURES: Ala Kai Realty represents Landlord in this transaction. DURATION OF OFFER: This Offer to Lease shall remain open for acceptance until June 15, 2006. If a signed acceptance is not returned to the County by the date and hour specified above, the Offer shall be null and void, unless extended in writing, and aforementioned deposit shall be promptly returned to County. 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 Landlord and County. 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. Page 4 of 4 County Approval/Date: / Landlord Approval/Date: / COUNTY OF HAWAII OFFER TO LEASE PROPOSED GENERAL TERMS AND CONDITIONS Date: April 30, 2006 PTC Partners 44-224 Malae Place Kaneohe, HI 96744 Attention: Carol A. VanCamp, Ala Kai Realty, Inc. Subject to the approval of the Hawaii County Council, the COUNTY OF HAWAI'I ("County") offers to lease the premises described below from PTC Partners ("Landlord"), on the following terms and conditions: AREA AND LOCATION: Approximately 14,822 (7,540 square feet of office space and approximately 7,282 square feet of warehouse space) at Puainako Center, Building C, 2100 Kanoelehua Avenue, Hilo, Hawaii. The actual square footage and location of the premises shall be determined by agreement prior to the execution of the lease by Landlord and County. USE OF PREMISES: The premises shall be used for the following purpose: Office and storage space for the County of Hawaii. TERM: The term of the lease shall be five (5) years beginning July 1, 2006 or upon completion of the parking lot expansion in the rear of building C by the Landlord, whichever occurs later and ending five (5) years later. With the county's approval, the lease start date may occur prior to the completion of the parking lot. OPTION TO CANCEL: County and Landlord shall have an unconditional right to terminate this lease with no penalty effective after three (3) years with one hundred eighty (180) days prior written notice. RENT: Net rent for the office area leased shall be $1.75/sq. ft. per month for the first three (3) years. Rent for the fourth and fifth (4`h & 5`h) years shall be C:000UME-11GTOMIOCALS-11TemplPuainako060501 F inalOffecdoc Offer to Lease Page 2 April 30, 2006 mutually agreed upon through negotiation. Net rent for the warehouse space shall be $.62lsq.ft. per month. COMMON AREA MAINTENANCE: Common area charges (CAM) shall be $.42/sq.fl. per month for the office space only - 7,540 sq.ft. No common area maintenance charges shall be applied to the warehouse space. BUILDING SERVICES: The following services and utilities shall be provided and included in the common area maintenance charge paid by the Landlord: • Building fire and liability insurance • Landscaping maintenance • Water and sewer for common areas • Refuse collection • Common are maintenance • Real property taxes - exempt status for this unit. Landlord is required to apply for this exemption based upon the total square footage under lease by the County. • Management and accounting fees UTILITIES: Tenant shall pay for electric, phone, water/sewer and all other services and utilities supplied to the premises from date of occupancy. HAZARDOUS MATERIALS: To the best of Landlord's knowledge, the premises are free of hazardous waste except for possible asbestos containing material in the existing floor tiles. (See Environmental Report provided.) PARKING: Landlord agrees to provide additional employee parking at rear of building C at no cost to the County (see attached diagram). EXCISE TAX: In addition to the rent, County shall pay the Hawaii General Excise Tax (currently 4.166%), or any successor tax, which may be payable thereon. REAL ESTATE TAXES: Landlord shall apply for exemption from real property taxes. Approved by: Offer to Lease Page 3 April 30, 2006 DEPOSIT: None. OCCUPANCY: County shall be given occupancy of the premises on July 1, 2006, or upon completion of all parking and other improvements by the Landlord, whichever occurs later, and ending five (5) years later. If there is a delay in Landlord giving occupancy, which delays caused by events beyond the control of the Landlord, the obligation to pay rent shall be deferred unit such occupancy shall be granted in writing to County by Landlord, 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: County shall not have the right to assign or sublease the lease, without the prior written consent of Landlord, which consent shall be in Landlord's sole discretion, and shall otherwise be subject to and on the terms set forth in the lease. LEASEHOLD IMPROVEMENTS Tenant accepts the premises in "as is" condition, AND DRAWINGS: without warranty, except as provided below and elsewhere in this proposal. Landlord shall provide, at its expense, the following leasehold improvements and drawings prior to occupancy. • Removal of doorway structure in middle of office space • Replace all cracked or missing floor tiles from the office area • Construction of Parking expansion at the rear of Building C (see attached diagram) • Cleaning of floors and removing any rubbish • Architectural and engineering drawings of building C that exist and are available • Existing air conditioning system in working order 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 Approved by: Offer to Lease Page 4 April 30, 2006 party submitting the facsimile shall provide the original document within a reasonable time, however, failure to provide such an original shall 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: County is self-insured government entity. No insurance policy is required. ADA: Landlord shall ensure that the common areas comply with Title III of the American with Disabilities Act ("ADA"). LEASE: Within five (5) working days of acceptance of this offer by the County Council, County 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. This offer is subject to the Landlord's review and approval of the terms of the Lease Document within ten (10) working days of receipt. SPECIAL CONDITIONS: This offer shall be subject to the approval of the County Council of Hawaii. AGENCY DISCLOSURES: Carol VanCamp, Ala Kai Realty, represents County 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 Landlord and County. 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 Approved by: Offer to Lease Page 5 April 30, 2006 future regarding the premises shall create any obligation whatsoever on the part of either party to enter into a final and binding contract. By: William Takaba Title: Director of Finance Date: April 26, 2006 Landlord hereby represents to County that Landlord 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 terns of this Offer to Lease. Receipt and acceptance of this Offer is hereby acknowledged. By: PTC Partners Title: Owners Date: Approved by: