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Home My WebLink AboutRES 486 Draft 01 2006-2008 MTV os ry~ 4~ ~J ~ COUNTY OF HAWAII STATE OF HAWAII T• Of ~Mw~ RESOLUTION NO. '`I8~ 43iS RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND MORE THAN ONE FISCAL YEAR FOR AMULTI-YEAR LEASE OF OFFICE SPACE IN WAIMEA WHEREAS, the Motor Vehicle Registration section of the Department of Finance is being consolidated with the Driver Licensing, Commercial Driver Licensing (CDL), and Periodic Motor Vehicle Inspection (PMVI) sections of the Police Department as a new Vehicle Registration and Licensing (VR&L) Division under the Department of Finance; and WHEREAS, to better serve the public, this new division proposes to establish satellite VR&L service centers in Waimea, Pahoa, and Ka`u to provide basic vehicle registration and driver's license services; and WHEREAS, office space for a new Vehicle Registration and Licensing service center in Waimea, which will also provide for the future consolidation of the Prosecutor's Office and Council Office into a single space, has been found within the Parker Ranch Center; and WHEREAS, County wishes to enter into amulti-year lease with Waimea Retail, LLC, a Delaware Limited Liability Company, for ten (10) years, with a five (5) year option, for the approximately 5,383 square feet of office space; and WHEREAS, the lease and rent commencement will be the earlier of a) 60 days after the Landlord's completion of its construction obligations and the delivery of the space to the County or b) upon the County opening for business; and WHEREAS, a copy of the Proposed "Offer to Lease Store Space' is attached as Exhibit "1 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 office space located at the Parker Ranch Center in Waimea, South Kohala. 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 xilo ,Hawaii, this 6th day of February , 2008. INTRODUCED BY: Gd----- COUNCIL MEMBER Ctp Y OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii HIIO, HaWal`I AYES NOES ABS EX FORD X [ hereby certify that the foregoing RESOLUTION was by the HIGA X vote indicated to the right hereof adopted by the COUNCIL of HOFFMANN X the County of Hawaii on February 6 , 2008 IKEDA X JACOBSON X ATTEST NAEOLE X PILAGO X YAGONG X YOSHIMOTO X 6 0 3 0 ' - . /Reference C-925/FC-228 COUNTY CLERK CHAIRMA PRESID G OFFICER RESOLUTION NO. ~8 PARKER RANCH CENTER WAIMEA, HAWAII OFFER TO LEASE STORE SPACE Reference Date: December 19, 2007 TO: Waimea Retail, LLC (Landlord) c/o GMR LLC 345 Queen Street, Suite 400 Honolulu, Hawaii 96813 TENANT: County of Hawaii (Tenant) 25 Aupuni Street, Suite 118 Hilo, Hawaii 96720-4552 Attention: William T. Takaba Finance Director Harry Yada Facilities Director GUARANTOR(s): NONE DEMISED PREMISES: Approximately 5,383 s.f. of ground floor space, to be finalized based on actual size. Further described on attached exhibit A site map. LOCATION: Store no. H148, H149 & H150, to be known in aggregate as space #H148. USE OF PREMISES: The premises shall be used by Tenant solely for a driver's license renewal & testing facility. General office and administrative use related to the Driver's License Renewal & Testing, County Prosecutors Office, Public Meeting Rooms, Video Conferencing Center and County Councilman's Office. TERM Ten (10) years G•M•R EXHIBIT "1" RENT MINIMUM RENT Year Minimum Minimum Annual Rent per Rent per Minimum square foot month Rent Year 1-2 $1.250 $6,728.75 $80,745.00 Year 3-4 $1.325 $7,132.48 $85,589.76 Year 5-6 $1.405 $7,563.12 $90,757.44 Year 7-8 $1.489 $8,015.29 $96,183.48 Year9-10 $1.578 $8,494.37 $101,932.44 CONSTRUCTION COST In addition to the Minimum Rent to be paid by Tenant, RECOVERY FEE Tenant shall pay to Landlord a Construction Cost Recovery Fee which shall be equal to an annual eight (8%) percent of the total costs incurred by the Landlord in connection with the completion of the Landlord's Construction Obligations. The Construction Cost Recovery Fee shall be paid monthly by the Tenant. At this time the Total Construction Cost is estimated at $150 per square foot or $807,450. Based on the estimated $807,450 the 8% recovery fee is estimated at $64,596 annually, or 5,383.00 monthly or $1.00 psf per month. Landlord and Tenant acknowledges and is cognizant that the construction cost of $150.00 per square foot is an estimate. As such, the construction cost stated above will be adjusted post construction upon reconciliation of the actual construction cost. LEASE AND RENT Lease and rent commencement will be the earlier of a) 60 COMMENCEMENT days after Landlord's completion of its construction obligations and the delivery of the space to Tenant or b) upon Tenant opening for business. OPTIONS One 5 year period commencing upon the expiration of the initial term at fair market rents (inclusive of the Construction Cost Recovery Fee). G•M•R COMMON AREA Tenant shall pay its full pro rata share based on the ratio of MAINTENANCE COSTS its Leaseable Area to the Leaseable Area of the shopping OR OPERATING center, as may be amended by Major Tenants as defined EXPENSES: in the Lease. The current estimate is $0.84/sf/month, which is inclusive of Hawaii County Real Property Taxes. MARKETING FUND: Tenant shall pay an assessment of $0.05 psf/month, which is based on a 40% reduction in current assessment of $.0833 psf/month. UTILITIES Utilities consumed by Tenant in the demised premises shall be at Tenant's expense, on a separate meter, or submeter. SECURITY DEPOSIT None REAL PROPERTY Tenant shall pay its full pro rata share of real property TAXES: taxes on its store and land under its store and assessments under any improvement law, if any. Real Property Taxes are included in Common Area Maintenance costs (unless exempt). GENERAL EXCISE TAX: Tenant shall pay to Landlord, Hawaii State General Excise Tax due for income and receipts received by Landlord under the subject lease (unless exempt). INSURANCE: Commercial Liability and Property Damage. Tenant shall maintain commercial general liability insurance of at least $2,000,000.00 per occurrence, $2,000,000.00 general aggregate and $2,000,000.00 product and completed operations aggregate; at least $1,000,000.00 per person or organization for personal or advertising injury, $2,000,000.00 general aggregate; $200,000.00 for one fire; at least $5,000.00 for medical per person; at least $2,000,000.00 for each common cause. G•M•R Statutory Worker's Compensation and Employers Liability Insurance for the State of Hawaii (covering all employees of Tenant and its contractors) with minimal limits of not less than $500,000 per each accident or illness. Commercial Automobile Liability Insurance for any auto on an occurrence basis with limits of not less than $1,000,000 in the aggregate and per accident. ENVIROMENTAL Landlord discloses that asbestos containing ceiling material may exist in the premises above the wall partitions. It is Landlord's intention to have the partitions inspected by a licensed hazardous material contractor, a copy of the test results shall be provided to Tenant. CONSTRUCTION: Landlord's Construction Obligations. Landlord agrees that the space will be delivered in the following condition: Landlord shall construct leasehold improvements in the Premises per the mutually agreed space plan as described in attached Exhibit "E" (To be prepared). All other work required making the demised premises suitable for Tenant's occupancy and operation shall be completed by Tenant, at Tenant's cost and expense. Tenant's Construction Obligations. Tenant shall accept the demised space "as is", with the exception of the foregoing Landlord Construction Obligations. LEASE Landlord requires the use of its Standard Parker Ranch Center Lease, which shall be provided to Tenant. AGENCY DISCLOSURE: It is understood and agreed that Landlord's real estate broker is GMR LLC and all of its licensees who represent only the Landlord in this lease transaction. Tenant shall indemnify, defend and hold harmless Landlord and its real estate broker from any claim for any commission or finders fee that is asserted by any party claiming to represent Tenant in this lease transaction besides Tenant's real estate agent who is disclosed in writing with this offer. G•M•R DISCLAIMER: This Offer to Lease is subject to Landlord's Lender's approval, prior to leasing of the premises and the timely execution and delivery of a mutually acceptable lease. CONFIDENTIALITY: This Term Sheet and all discussions related thereto is to kept in confidence and the contents hereof can only be shared with the addressed and sending parties hereto and their professional representatives, investors and lenders. EXPIRATION The terms and conditions outlined in this Letter of Intent will remain valid and available for acceptance until December 14, 2007 and may be voided or invalidated without notice or liability after such date. If the foregoing is acceptable, please so indicate by executing a copy and returning it to us within the time period provided above. The Tenant offers to lease the above described store space in Parker Ranch Center on the terms and conditions stated above and subject to other terms and conditions contained in the Landlord's lease document (Lease). If a conflict arises between the terms of this offer and the Lease, the Lease shall prevail. Tenant understands that this offer is subject to the approval and acceptance by the Landlord. Should Tenant and Landlord be unable to agree to the terms and conditions of the Lease within 10 working days of receipt by Tenant, Landlord, at its sole discretion, may terminate all negotiations and this offer shall be null and void without any obligation to Tenant. - S{GNATURE PAGE TO FOLLOW - G•M•R ACCEPTED BY TENANT: By Date Its By Date Its ACCEPTED BY LANDLORD: Waimea Retail, LLC By Date G•M•R ~ \ l_ _ r _ _ Tf I I I I J _ _ n I g- _T~. ~.__._~~~~.-am.-...«.-m...._ae.s..~ z..- _ -~_--~k Try I f I ~i I II. 1 I' ~I ~i A.IPS,-i } nCWL ~••44s y ~I Y _ _ _y_.- _ ~ __~-~..-.c . _-_-c._ _:.~I _ _ i _ - MwRI _ _ _ l~~~ 1 ~ J o4e RAL( 4n: ~ ~Uti/~ I {l~ ~ Re.n J. .at { ~ M iN 'ilY. j~~ic ur ~i ~~!~~'~'T I I l ~ 17a~ B?Bh DoT ~ ~ fl ~ i~,.Ll~yc_ i ~„u ~ it ? I ~fiCE- FRS N r`A K WiNC ~ ii. - I I OMV I ~ ~ ¢ X31 ~t¢a sp _ I y //_N_N _ _ _ _ ~ ~?tv F^ l ,1 4All I ail rS N r _.<.t C v aNG/L ~ I 9S° sf ~ ~j70eJ'EC!/7oh. 'T'`='' III ~I fe ! . 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