HomeMy WebLinkAboutCOM 0054.000 2008-2010
JM~+ or M+K
William P. Kenoi Nancy E. Crawford
Wayor Director
Deanna S. Sako
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•i ~ i•`` Deputy Director
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County of Hawaii
Finance Department
25 Aupuni Street. Room 118 • Hilo. Hawaii 96720 ro'
(808) 961-8234 Fax(808)961-8248
December 17, 2008
J Yoshimoto, Chairman and
Members of the Hawai'i County Council
Hawai'i County Council } f 1
25 Aupuni Street co
Hilo, Hawai'i 96720 - °
0
Re: Resolution for multi-year lease
Enclosed is a resolution authorizing the Office of the Prosecuting Attorney to enter into a
new multi-year lease for their Kona office in Kealakekua. The Prosecuting Attorney's
Kona Office, located at the Kealakekua Business Center, 81-190 Haleki'i Street,
Kealakekua, is currently under a five year lease that expires on June 30, 2011. That
lease, executed in 2006, included an additional 1,450 square feet of renovated office
space but that expansion space was not made available until May of 2008. The County
and the Landlord, Hawaiian State Enterprises, Ltd., wishes to enter into a second
extension and amendment of the lease which extends the lease period to June 30, 2013,
incorporates the expansion space as part of the premises, and amends the monthly rent.
If there are any questions, please do not hesitate to call the Office of the Prosecuting
Attorney.
Nancy fF. Crawfo d
Director of Finance
APPROVED:.
William P. Kenoi
Mayor
Enc.
cc: Prosecutors 5 V
Comm. No.y~~
as-m~ Hawaii County is an Equal Opportunity Provider and Employer Ref. To. r c/
Ref. Date UEC 2 2008
Form B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: PROSECUTING ATTORNEY DATE: 12/11/08
STAFF CONTACT: Nancy Kelly PHONE: 934-3315
A. REQUEST:
Multi-year lease approval for Kona Office between the County of Hawaii and Hawaiian State Enterprises, Ltd.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
The lease for the Kona Office was extended in 2006 for a five-year period, to 2011. It included occupying
additional space of 1,450 square feet which required renovation. Cost of the renovation was paid by the
owner and is being amortized over a 10-year period. Renovation was completed in April 2008. We would
like to extend the lease thru 2013 and need Council approval for the period, 2011 - 2013 (period not covered
by the earlier multi-year approval).
Attached is a copy of the second extension and amendment of the Kealakekua Business Plaza lease.
i
C- DATE: 12/12/08
SIGNED: lat, Department Head
SECOND EXTENSION AND AMENDMENT OF
KEALAKEKUA BUSINESS PLAZA LEASE
(Prosecutor's Office)
THIS SECOND EXTENSION AND AMENDMENT OF LEASE (this "Amendment") is
made as of this May 1", 2008 between HAWAIIAN STATE ENTERPRISES, LIMITED, a
Hawaii corporation, whose principal place of business is c/o Marcus & Associates, Inc., One
Main, 2200 Main Street, Wailuku, Hawaii 96793 (hereinafter "Landlord"); and COUNTY OF
HAWAII, whose principal place of business 25 Aupuni Street, Hilo, Hawaii 96720 (hereinafter
"Tenant".).
A. BACKGROUND.
1. The Landlord, as lessor and Tenant, as lessee, entered into that certain
unrecorded Lease Agreement between the parties dated July 3, 2001 (the "Original Lease") for a
term of five (5) years, with a rent commencement date of July 1, 2001, expiring on June 30,
2006, and covering approximately 6,432 square feet of finished office space.
2. Under that certain Extension and Amendment of Kealakekua Business Plaza
Lease dated July 1, 2006 (the "First Amendment") the Landlord extended the Lease for five (5)
years through June 30, 2011 and added to the Premises defined in Section 1.1 of the Lease an area
of 1,450 square feet (the "Expansion Space") so that the area of the Premises would increase from
6,432 to 7,882 square feet. A new rent schedule was provided. The Original Lease, as amended
by the First Amendment is referred to here as the "Lease".
3. The Expansion Space was not completed and incorporated into the Lease until
May 1, 2008 notwithstanding the date of July 1, 2006 given in the First Amendment.
4. Landlord has advanced Tenant improvement funds of $217,650 to Tenant to be
financed on a ten-year amortization schedule and to be repaid by Tenant over the term of the Lease,
as amended by this Amendment.
5. Landlord and Tenant wish to enter this Amendment to amend the Lease to extend
the Term, to revise the rental schedule, and to change the incorporation date of the Expansion Space.
B. AMENDMENT OF LEASE AND AGREEMENT. In consideration of the
mutual covenants and agreements contained in the Lease and in this Amendment, Landlord and
Tenant hereby agree as follows:
1. Extension of Term. The term of the Lease is hereby extended from
June 30, 2011 to June 30, 2013, unless sooner terminated as provided in the Lease. The term
"lease year" as used in this Amendment refers to each July 1" through June 30th year.
2. Expansion Space. The Lease is hereby amended to incorporate the
Expansion Space as part of the Premises as of May 1, 2008. The First Amendment provided for
such incorporation on~July 1, 2006, but that did not occur. The Expansion Space is depicted and
defined by the drawing or plan attached hereto as Exhibit "A" to the First Amendment.
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3. Base Rent. Section 2.1 of the Lease is amended to provide the monthly
rent (excise tax must be paid in addition on the Base Rent) for shall be calculated and paid as
follows:
Lease Year Base Rent Per Monthly Base Expansion Amortized Total*
Square Foot Rent Original Space TI Rent*
Premises Rent*
07/01/06-10/31/06 $1.20 $7,718.40 $7,718.40
11/01/06 - 06/30/07 1.20 7,718.40 7,718.40
07/01/07 - 04/30/08 1.23 7,911.36 7,911.36
05/01/08-06/30/08 1.23 7,911.36 $1,783.50 $2,527.10 12,221.96
07/01/08-06/30/09 1.27 8,168.64 1,841.50 2,527.10 12,537.24
07/01/09-06/30/10 1.31 8,425.92 1899.50 2,527.10 12,852.52
07/01/10-06/30/11 1.35 8,683.20 1,957.50 2,527.10 13,167.80
07/01/11-06/30/12 1.39 8,940.48 2,015.50 2,527.10 13,483.08
07/01/12 - 06/30/13 1.43 9,197.76 2,073.50 2,527.10 13,798.36
*Tenant shall not be obligated to pay either rent for the Expansion Space of 1,450 square feet or for
the amortized tenant improvement cost until May 1, 2008.
Tenant will continue to pay all costs associated with Tenant's occupancy of the Premises as
outlined in the Lease, including without limitation, the other charges set out in Section 2.3, property
tax in Section 8.1 and excise tax in Section 8.2. Tenant shall also be responsible for any conveyance
tax related to this Amendment as set forth in Section 8.8 of the Lease. Operating expense as of May
1, 2008 is currently $0.759 per square foot.
4. Option to Extend Term. If Tenant is in good standing and is not then in
default of its obligations hereunder, Tenant shall have the right to extend the Term of this Lease as
specified in the First Amendment.
t
5. Conformance. The provisions of the Lease are hereby amended to
conform with this Amendment, but in all other respects, such provisions are to be and continue
in full force and effect. This instrument is made on the express condition that nothing herein
contained shall in any way be construed as affecting, impairing or waiving any rights of the
Landlord under the Lease, except as amended pursuant to this Amendment.
6. Improvement Allowance. Landlord has made available an improvement
allowance of $29,000 for the Expansion Space and those funds have been expanded. In addition,
Landlord has advanced the sum of $217,650 pursuant to the First Amendment of the Lease as
allowance to be repaid by Tenant based on a ten (10) year amortization at an interest rate of
seven percent (7%) a year with the lump sum payment of the unamortized portion at maturity.
Tenant will pay from May 1, 2008 to June 30, 2013 the sum of $2,527.10 per month. At the
scheduled maturity of this Lease on June 30, 2013 and assuming all regularly scheduled
payments have been made on a timely basis, Tenant will then owe Landlord the sum of
$127,623.64 and shall promptly pay such amount to Landlord on or before June 30, 2013. In
the event Tenant elects to extend the Term of this Lease as specified in the First Amendment
then Tenant shall be permitted to continue to pay the amortized payments of $2,527.10 per
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during the five year extension period to fully repay the funds advanced. This paragraph
supersedes Section 7 of the First Amendment in its entirety.
7. Certification. As an essential inducement to Landlord to execute this
Amendment, Tenant hereby certifies and warrants to and agrees with Landlord that (a) to the
extent of Tenant's actual knowledge, no event of default under the Lease exists as of the date
hereof, nor has any event occurred which, with the passage of time or the giving of notice, or
both, would constitute an event of default, and (b) to the extent of Tenant's actual knowledge,
Landlord is not in any manner in default in the performance or observance of any obligation or
duty owed to Tenant, under the Lease or otherwise.
8. Entire Agreement. This Amendment incorporates all of the agreements
between the parties relating to the extension and amendment of the Lease, and supersedes all other
prior or concurrent oral or written letters, agreements or understandings relating to the subject of
this Amendment. No terms, conditions, warranties, promises or undertakings of any nature
whatever, express or implied, exist between Landlord and Tenant except as expressly set forth in
the Lease as amended by this Amendment. Any amendment or modification of the Lease must
be in writing and signed by both Landlord and Tenant.
9. Parties. This Amendment shall bind and inure to the benefit of the parties
hereto and to the successors and permitted assigns of Tenant, and to the successors and assigns of
Landlord.
10. Notices. All notices, requests, demands or documents which are required or
permitted to be given or served hereunder shall be in writing and personally delivered, or sent by
registered or certified mail, postage prepaid, addressed as follows:
TO LANDLORD at: C/o Marcus & Associates, Inc.
1045 Mapunapuna Street,
Honolulu, Hawaii 96819
with a copy to: Mr. Albert Funrya
Hawaiian State Enterprises, Limited
45-150 Mokulele Drive
Kaneohe, Hawaii 96744
TO TENANT at: County of Hawaii - Prosecutor's Office
655 Kilauea Avenue
Hilo, Hawaii 96720
11. Security Deposit. Landlord holds no security deposit of Tenant.
Tenant is not entitled to the return of any sum as a security deposit. This paragraph supersedes
Section 13 of the First Amendment in its entirety.
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IN WITNESS WHEREOF, Landlord and Tenant have executed this instrument as of
the date first above written.
HAWAIIAN STATE ENTERPRISES, LIMITED
a Hawaii corporation
By
Hanzo Furuya
President
By
Albert Furuya
Secretary
"Landlord"
COUNTY OF HAWAII
By
Name:
Title:
"Tenant"
Recommend approval:
JAY T. KIMURA
Prosecuting Attorney
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STATE OF HAWAII )
SS:
COUNTY OF HAWAII )
On this day of 2008, before me personally appeared
HANZO FURUYA, to me personally known, who, being by me duly sworn or affirmed, did
say that such person executed the foregoing instrument as the free act and deed of such
person, and if applicable in the capacity shown, having been duly authorized to execute such
instrument in such capacity.
Notary Public, State of Hawaii
Name:
My commission expires:
NOTARY CERTIFICATE (Hawaii Administrative Rules §5-11-8)
Document Identification or Description:
Doc. Date:
No. of Pages: Jurisdiction: Circuit
(in which notarial act is performed)
Signature of Notary Date of Certificate
(Official Stamp or Seal)
Printed Name of Notary
5
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STATE OF HAWAII )
SS:
COUNTY OF HAWAII )
On this _ day of 2008, before me personally appeared
ALBERT FURUYA, to me personally known, who, being by me duly sworn or affinned, did
say that such person executed the foregoing instrument as the free act and deed of such
person, and if applicable in the capacity shown, having been duly authorized to execute such
instrument in such capacity.
Notary Public, State of Hawaii
Name:
My commission expires:
NOTARY CERTIFICATE (Hawaii Administrative Rules §5-11-8)
Document Identification or Description:
Doc. Date:
No. of Pages: Jurisdiction: Circuit
(in which notarial act is performed)
Signature of Notary Date of Certificate
(Official Stamp or Seal)
Printed Name of Notary
6
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STATE OF HAWAII
SS:
COUNTY OF HAWAII )
On this day of , 2008, before me personally appeared
to me personally known, who, being by me duly
sworn or affirmed, did say that such person executed the foregoing instrument as the free act
and deed of such person, and if applicable in the capacity shown, having been duly authorized
to execute such instrument in such capacity.
Notary Public, State of Hawaii
Name:
My commission expires:
NOTARY CERTIFICATE (Hawaii Administrative Rules §5-11-8)
Document Identification or Description:
Doc. Date:
No. of Pages: Jurisdiction: Circuit
(in which notarial act is performed) i
Signature of Notary. Date of Certificate
(Official Stamp or Seal)
Printed Name of Notary
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