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HomeMy WebLinkAboutRES 389 Draft 01 2006-2008 ~SY O! NV4 • b • ~il~ COUNTY OF HAWAII STATE OF HAWAII +r~ us~w''~ RESOLUTION NO. 389 0'7 RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND MORE THAN ONE FISCAL YEAR FOR AMULTI-YEAR LEASE OF WAREHOUSE SPACE IN SOUTH HILO WHEREAS, a warehouse facility that is available and suitable for the County's needs is located at 215-D Railroad Avenue in South Hilo, identified as Tax Map Key: (3) 2-1-025-135; and WHEREAS, this property contains approximately 15,200 square feet of warehouse space, inclusive of the second floor office and loft space; and WHEREAS, County wishes to enter into amulti-year lease with Railroad-Hilo Property Inc. for three (3) years and seven (7) months, commencing on November 1, 2007, or the date of delivery of the space to the County, whichever comes later, and will have the option to extend the lease for another five (5) years subject to agreement on rent between the County and the Landlord; and WHEREAS, the rental cost per month is $10,000 from November 1, 2007 to August 31, 2009 and then goes up to $12,000 per month, from September 1, 2009 to May 31, 2011; in addition to the Common Area Maintenance charges of $912 per month; and WHEREAS, the Hawaii County Police Department and the Hawaii Fire Department both have needs for warehouse storage space; and WHEREAS, the Hawaii County Police Department will be renovating their evidence warehouse and needs to relocate some of their evidence inventory to allow for the renovation; and WHEREAS, on a more long term basis, the Police Department would like to use the space as its ongoing vehicle storage for its evidence in both criminal and civil cases; and WHEREAS, the Hawaii Fire Department has a need to store reserve apparatus and vehicles as well as house special response equipment associated with hazardous materials and mass casualty disaster type incidents; and WHEREAS, the additional warehouse capacity is needed to redistribute existing supply inventory in the event of a Tsunami type event as their current warehouse must be evacuated during such events; and WHEREAS, a copy of the Proposed General Terms and Conditions is attached as Exhibit "A"; and WHEREAS, Section 10-11 of the County Charter requires that any contract, lease, or other obligation requiring payment of funds from the appropriations of a later fiscal year and more than one fiscal year be approved by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: 1. That the Mayor is hereby authorized to enter into amulti-year lease agreement for warehouse space located at 215-D Railroad Avenue in South Hilo, identified as Tax Map Key: (3) 2-1-025-135. 2. That sufficient funds be budgeted in future fiscal years to cover the anticipated obligations of the County under the lease agreement. BE IT FURTHER RESOLVED that a copy of this resolution be transmitted to the Department of Finance. Dated at xona ,Hawaii, this 20th day of November , 2007. INTRODUCED BY: (/Y~-- COUNCIL MEMBE OU Y F HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii Hilo, Hawaii AYES NOES ABS EX FORD X I hereby certify that the foregoing RESOLUTION was by the HiGA g vote indicated to the right hereof adopted by the COUNCIL of HOFFMANN g the County of Hawaii on November 20, 2007 ixEDA X ATTEST JACOSSON X NAEOLE FILAGO X YAGONG g YOSHIMOTO g 8 0 1 0 ~ ~ ~a Reference C-764/FC-191 '~~i,~ 389 Q'7 C07UNTY"CLERK CHAIRMAN ES DIN FFICER RESOLUTION NO. COUNTY OF HAWAII OFFER TO LEASE PROPOSED GENERAL TERMS AND CONDITIONS Date: September 25, 2007 To: RAILROAD - HILO PROPERTY Dianne Tanna Ray Tuohy From: Harry Yada, Property Manager Subject to the approval of the Hawaii County Council, the COUNTY OF HAWAII ("County") offers to lease the premises described below from RAILROAD - HILO PROPERTY ("Landlord"), on the following terms and conditions: AREA AND LOCATION: Approximately 15,200 squaze feet of warehouse space (subject to verification) inclusive of second floor office and loft space, at 215-D Railroad Ave, Hilo, Hawaii 96720, Waiakea, South Hilo, Hawaii, identified as Tax Map Key: 3rd/ 2-1-025-135. USE OF PREMISES: The premises shall be used for the following purpose: Warehouse space for the County of Hawaii TERM: The term of the lease shall be for three (3) years and seven (7) months beginning November 1, 2007, or the date of delivery of the space to the County, whichever comes later. The County shall have the option to extend the lease for another five (5) years subject to agreement on rent between the County and the Landlord. RENT: November 1, 2007 to August 31, 2009 - $10,000.00 per month. September 1, 2009 to May 31, 2011 - $12,000.00 per month. Rent for any hold over period after expiration of this lease shall be $1.00 per square foot. EXHIBIT "A" Offer to Lease Page 2 September 25, 2007 RAILROAD - HILO PROPERTY COMMON AREA MAINTENANCE: Common area maintenance (CAM) charges shall be $912.00 per month and paid by the County of Hawaii in addition to the rent. The County shall be responsible for any increases in CAM charges. BUILDING SERVICES: The Landlord shall be responsible for all building services included in the CAM charges. LEASED AREA UTILITIES: County shall pay for all water, electric and other utilities used by County in the leased premises that aze sepazately metered under County's account with service providers. Any utilities not under a separate County account should be sepazately metered so any County usage can be accurately assessed. Refer to the "LEASEHOLD IMPROVEMENTS" section below. HAZARDOUS MATERIALS: To Landlord's current actual knowledge, the premises aze free of hazazdous waste. 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 PROPERTY TAX: The County shall be responsible for its pro-rata share of real property taxes. However, Landlord agrees to submit a claim for partial exemption from real property tax as provided by Section 19-84 of the Hawaii County Code. Tenant will cooperate fully with Landlord in obtaining such exemption. DEPOSIT: None. OCCUPANCY: County shall be given occupancy of the premises by November 1, 2007. SUBLEASING AND ASSIGNMENT: County shall not assign or sublease the whole or any portion of the premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Approved by: Offer to Lease Page 3 September 25, 2007 RAILROAD - HILO PROPERTY LEASEHOLD IMPROVEMENTS: Landlord shall provide, at its expense, the following leasehold improvements prior to occupancy: • Removal of any debris or trash remaining from the previous tenant. • Repair roof leaks or replace roofing material where leaks aze occurring to the satisfaction of the County. • Construct a wall, floor to ceiling, sepazating space from adjacent tenants. • Construct a wall, floor to ceiling sepazating the high ceiling and low ceiling portions of the space. • Sealing of connecting doors and openings to adjacent spaces to the satisfaction of the County. • County shall have the option of installing a sepazate electric and water meter as may be necessary to measure the power and water consumption within the leased area only. Otherwise, the Landlord shall pro-rate the cost of utilities and such pro-ration shall be subject to mutual agreement between Landlord and the County. • Install a stairway to the second floor offices and storage azea in a location to be agreed upon with the County of Hawaii. • Install a metal roll-up type door at the northeast corner of the leased area of sufficient size to accommodate a fire truck. A substitute type door may be provided subject to approval by the County. • Providing for sufficient maneuvering and turning radius to allow reasonable access to new door. Landlord will work with adjacent tenant (Royal Hawaiian Movers) to insure that adjacent driveway is kept sufficiently clear to allow access to new door. • Raise height clearance in the area of the overhead roll-up door to accommodate access by a tow truck for the storage of vehicles in the low ceiling portion of the warehouse area below the office and loft storage space. Approved by: Offer to Lease Page 4 September 25, 2007 RAILROAD - HILO PROPERTY 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 least one counterpart. INSURANCE: County is aself-insured government entity. No insurance policy required. LEASE: 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. SPECIAL CONDITIONS: This offer shall be subject to the approval of the Hawaii County Council. AGENCY DISCLOSURES: Property Management Division, Department of Finance, represents County in this transaction. Approved by: Offer to Lease Page 5 September 25, 2007 RAILROAD - HILO PROPERTY 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. By: William Takaba Title: Director of Finance Date: September 25, 2007 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 terms of this Offer to Lease. Receipt and acceptance of this Offer is hereby acknowledged. By: Title: Owners Date: Approved by: Yea ~ FsS~ S'r =~f j- 77~ 9Y O~ x~ ~ ~ t7,.g i ! ~ -......py ~n i i #j r O F x ix•~; ~ ~ r,,. 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