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Home My WebLink AboutRES 475 Draft 01 2006-2008 MTV os le COUNTY OF HAWAII STATE OF HAWAII .,..r ~O. M~ RESOLUTION NO. 4'75 08 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 KAILUA-KONA WHEREAS, a warehouse property that is available and suitable for the County's needs is located at 73-4164 Huliko'a Street in Kailua-Kona, identified as Tax Map Key: (3) 7-3-058-038; and WHEREAS, this property contains approximately 3,718 square feet of warehouse space, 225 square feet of shop office/restrooms, and 288 square feet of office space (two suites at 144 square feet each); and WHEREAS, County wishes to enter into amulti-year lease with Hansen Commercial Investments, LLC, a Oregon Limited Liability Company, for five (5) years, commencing on February 1, 2008, 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 $5,402 from February 1, 2008 to July 31, 2010 and then goes up to $5,807 per month, from August 1, 2010 to January 31, 2013; in addition to the Common Area Maintenance charges of $0.27 per square feet per month; and WHEREAS, the Departments of Environmental Management and Public Works and the Hawaii County Police Department will be utilizing the warehouse property; and WHEREAS, the Department of Environmental Management will be housing its Abandoned Vehicle Coordinator for West Hawaii and Recycling Coordinator for West Hawaii at this facility; and WHEREAS, with the sunset of Act 90 on June 30, 2007 and to comply with settlement of UPW vs. COH, 98-244, the Department of Public Works had to cancel contracts forjanitorial and groundskeeping services by December 31, 2007 and to replace these contractual services, seven (7) of the newly created twenty-one (21) custodian/groundskeeper positions, will be housed at this warehouse, along with their equipment and supplies. WHEREAS, due to the growth of West Hawaii, the space requirements for the storage of evidence has grown for the Police Department; and WHEREAS, based on the current rental cost of their mini-storage units for their evidence, the the leased warehouse will provide the Police Department with more storage space, with full 20+ foot ceilings, at similar costs; 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 73-4164 Huliko'a Street in Kailua-Kona, identified as Tax Map Key: (3) 7-3-058-038. 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 Hilo ,Hawaii, this 9th day of January , 2008. INTRODUCED BY: COUNCIL MEMB , C N OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii Hilo, Hawaii AYES NOES ABS F.X FORD X I hereby ceRify that the foregoing RESOLUTION was by the HIGA X vote indicated to the right hereof adopted by the COUNCIL of HOFFMANN X the County ofHawai`ion January 9, 2008 IKEDA X ATTEST 7ACOBSON X NAEOLE X PILAGO X YAGONG X YOSHIMOTO X 9 0 0 0 / ~ Reference C-902/Waived FC COUNTY CLERK CHAIRMA RE`SID OFFIC R RESOLUTION NO. 4~~ ~8 COUNTY OF HAWAII OFFER TO LEASE PROPOSED GENERAL TERMS AND CONDITIONS Date: December 19, 2007 To: Trask Commercial Realty, LLC. From: Hany Yada, Property Manager Subject to the approval of the Hawaii County Council, the COUNTY OF HAWATI ("County") offers to lease the premises described below from HANSEN COMMERCIAL INVESTMENTS, LLC ("Landlord"), on the following terms and conditions: AREA AND LOCATION: Approximately 3,718 s.f. of warehouse space, 225 s.f. shop office/restrooms and 288 s.f. of office space (two suites 144 s.f. each) at 73-4164 Huliko'a Street, Kailua-Kona, Hawaii 96740, Kohanaiki, North Kona, Hawaii, identified as Tax Map Key: (3) 7-3-058-038. USE OF PREMISES: The premises shall be used for the following purpose: Warehouse and office space for the County of Hawaii TERM: The term of the lease shall be for five (5) years and beginning February 1, 2008, or the date of delivery of the space to the County, whichever comes later. County shall have the option for another five (5) year term subject to mutual agreement on rent. RENT: February 1, 2008 to July 31, 2010 - $5402.00 per month. 3,718 s.f. whse x $1.18 = $4,387.25 225 s.f. shop off/restrms x $1.63 = $ 366.75 288 s.f. office suites x $2.25 = $ 648.00 $5,402.00 August 1, 2010 to January 31, 2013 - $5807.00 (7.5% increase) per month. EXHIBIT "A" Offer to Lease -Kona Warehouse Page 2 December 19, 2007 County agrees to pay the entire annual rental in one payment at the beginning of each fiscal year or portion thereof. COMMON AREA MAINTENANCE: Common Area Maintenance (CAM) charges shall be $0.27 per s.f. per month. The County shall be responsible for any increases in CAM chazges. Any real property tax exemption provided for the County's pro-rata space in the building shall be credited towazds the County's share of CAM charges. BUILDING SERVICES: The Landlord shall be responsible for all building services included in the CAM chazges. LEASED AREA UTILITIES: County shall pay for all other chazges and utilities used by County in the leased premises that aze not included in the CAM charges and separately metered under County's account with service providers. All utilities not sepazately metered shall be prorated utilizing a mutually agreeable formula. 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 Hawaii General Excise Tax (currently 4.166%), or any successor tax, which may be payable thereon. REAL PROPERTY TAX: Landlord agrees to submit a claim for partial exemption from real property tax as provided by Section 19-84 of the Hawaii County Code. County will cooperate fully with Landlord in obtaining such exemption. Any exemption shall be credited towards the County's share of CAM charges. DEPOSIT: None. OCCUPANCY: County shall be given occupancy of the premises by February 1, 2008. 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. Offer to Lease -Kona Warehouse Page 3 December 19, 2007 LEASEHOLD IMPROVEMENTS Landlord shall provide, at its expense, the following AND DRAWINGS: leasehold improvements and drawings prior to occupancy: • Construct walls, floor to ceiling, separating warehouse spaces from adjacent tenants as indicated on the attached sketch. • Construct a 15 x 12 roll-up door in the location shown on the attached sketch. 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 maybe 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. Should the County fail to obtain Council approval by January 31, 2008, either party may elect to terminate this offer with 14 days notice by notifying the other party in writing. AGENCY DISCLOSURES: Property Management Division, Department of Finance, represents County in this transaction. Offer to Lease -Kona Warehouse Page 4 December 19, 2007 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. 2~2 By: Willi Takaba Title: Director of Finance Date: 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: