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Home My WebLink AboutCOM 0105.000 2008-2010William P. Kenoi 69a~~or County of Hawaii Finance Department 25 Aupunl5treel, Ruom I IS • Flilo, limcnii 96720 (ROA)961-X234 Pux (80ft)961-R24R January 15, 2009 J Yoshimoto, Chairman and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Subject: Hanama Place Office Building Lease Amendment Nancv 8. Crawford Dfrecrnr Deanna S. Sako Depup•UPecmr t) ~ -' ~ ~ z ~ 7 ~ ' Z r ~ r ? / ..~ ..... ;R = , -o -, ,~ ri ' ~= ~ .... r' W .... ~ The County currently leases office space in the Hanama Place Office Building, 75-5796 Kuakini Highway, Kailua-Kona from K. Taniguchi, Ltd. for some of its West Hawaii operations. With the current lease ending on June 30, 2009, the County seeks to extend its usage at Hanama Place Office Building for a period of two (2) years. The two year extension will be at the current annual lease rent, which also includes the cost of common area maintenance. The County also reserves the right to terminate the extension with six (6) months written notice once construction of a new County facility begins in Kona. Enclosed is a resolution that authorizes the Mayor to enter into amulti-year extension agreement with K. Taniguchi, Ltd. for the Hanama Place Office Building. If there are any questions, please do not hesitate to call Property Manager Harry Yada. ~~~ ~~ Nancy E. Crawford Director of Finance APPROVED: iam P Kenoi Mayor Enc. Comm. No. SOS cc: Property Management Ref. To: <R~ ~ -09) Hawaii County is an Equal Opportunity Provider and Employer Ref. DCYe ~ 'JAN 2 2 2000 _ Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Finance -Property Management DATE: 12/23/08 STAFF CONTACT: Daryl Inaba PHONE: 961-8567 A. REQUEST: Prepare resolution authorizing the Mayor to enter into multi year lease extension with K. Taniguchi, Ltd. for the Hanama Place offices. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The current lease ends on June 30, 2009. The two year extension will be at the current lease rent of $292,040.11 per year which includes the cost of common area maintenance. The county reserves the right Yo terminate the extension with six (6) months written notice once construction of a new County facility begins i'n Kona. Attached are 1) Letter from PATDI, INC. providing extension of lease from July 1, 2009 to June 30, 2011. 2) Fourth Lease Amendment dated June 28, 2007. 3) Copy of previous Resolution No. 45 05. SIGNED: DATE: 12/23/08 Head ~~~ ~, INC. COMMERCIAL LEASING AND MANAGEMENT December 17, 2008 Mr. Harry Yada Director of Finance County of Hawaii 25 Aupuni Street, Room 118 Hilo, HI 96720 ~~~~o~~ ~ ~~i 1~ LU~u County of Hawaii Finance Department Property Monagement Division RE: County of Hawaii Offices Hanama Place, 7~-5706 Kuakini Highway, Kailua-Kona, Hawaii Dear Mr. Yada: This letter is to confirm our discussions with regard to the extension of that certain lease dated June 6, 1996 between the County of Hawaii (Lessee) and K. Taniguchi, Ltd. (Lessor). We propose the following extension to the above-mentioned lease including amendments, which is scheduled to terminate on June 30, 2009. Additional Term: Two (2) years beginning July 1, 2009 Rental Rate: Year 1 and Year 2 $292,040.11 per year Special Condition: The County reserves the right to terminate this extension with six (6) months written notice. These termination clauses will only apply once construction of the new County facility begins in Kona. If the above terms are agreeable with you, please acknowledge your agreement in the space provided below. However, if there are any questions or problems regarding the above, please do not hesitate to contact me at 885-4139. m ely, a ncia Provalen Managing Agent PATDI, Inc. The above terms aze agreeable with us. County of Hawaii Its By 65-1 158 MAMALAFiOA HWY 22-A • KAMUELA, HAWAII 96743 PHONE (808) 885-4139 FAX: (808) 885-4138 E-MAIL: PATDII@AOL.COM Tenant: County of Hawaii Suites: 102, 103, 104, 105, 106, 107, 108, 109, 110, 111,112,114 Contract No. 97001 FOURTH LEASE AMENDMENT This Fourth Lease Amendment is made as of this ~l~ ~ day of 2007, by and between K. TAfvIGUCHI, LTD., a Hawaii corpora on, by its President, Barry K. Taniguchi, whose principal place of business and mailing address is 50 E. Puainako Street, Hilo, Hawaii 96720, hereinafter referred to as the "Lessor," and the COUNTY OF HAWAII, a municipal corporation of the State of Hawaii, whose principal place of business and mailing address is 25 Aupuni Street, Hilo, Hawaii 96720, hereinafter referred to as the "Lessee." WITNESSETH: A. By Lease Agreement dated June 6, ,1996, Lease Amendment dated July 8, 2002, Second Lease Amendment dated May 20, 2003, and Third Lease ~, Amendment dated June 27, 2005 (herein collectively referred to as the "Lease"). Lessor demised and leased to Lessee those certain spaces located at Hanama Place, which spaces are more specifically described in the Lease. B. Lessee desires to extend the term of the Lease upon the terms and conditions hereinafter set forth. -1- NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee covenant and agree as follows: 1. The term of the Lease shall, and the Lease hereby is amended to provide that the term thereof shall be extended to expire and end on June 30, 2009, unless sooner terminated as provided in the Lease. 2. Effective July 1, 2007, the Lease is hereby amended as follows: a. The term is extended from July 1, 2007 to June 30, 2009. b. The amount of rent shall be: July 1, 2007 -June 30, 2009 $292,040.11 per year 3. Lessee shall have the option to extend the Lease for one additional term of two (2) years by providing Lessor with one hundred eighty (180) days' prior written notice. The extended term shall be on the same terms, provisions, and conditions of the Lease and this Fourth Lease Amendment except for the provisions regarding basic yearly rent. Basic yearly rent applicable to the extended term shall be at the then established fair market value at the time of exercise. 4. Lessee reserves the right to terminate this Fourth Lease Amendment by giving written notice to Lessor of the intention of Lessee to do so at least six (6) months prior to said termination. This termination clause will only apply once construction of a new County facility begins in Kona. -2- 5. Except as expressly modified and amended by this instrument, all other terms, provisions, and conditions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Fourth Lease Amendment on the date first above written. Recommend Approval: Bruce McClure, Director Department of Public Works APPROVED AS TO FORM AND LEGALITY' GE TAKAS~E Assis ant Corporation Counsel County of Hawaii K. TANIG CHI, LTD. By ' ~~ , BARR K. NIGUC I Its President Lessor COUN T Y O~F~H~,A,/WAII By ~-~~~~,t~0° D1XlE KAErSU Mana9in9 Dtrectpr Lessee -3- I COUNTY OF HAWAII RESOLUTION NO. STATE OF HAWAII 45 (~5 RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO AMULTI-YEAR EXTENSION AGREEMENT WITH K. TANIGUCHI, LTD. FOR THE HANAMA PLACE OFFICE BUILDING. BE. IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: 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 or more than one fiscal year be approved by resolution; and WHEREAS, the County of Hawaii seeks to extend its usage for the County offices at Hanama Place for a period of two (2) years, with an option for an additional two (2) year period; and WHEREAS, the rent have been agreed to as follows: July 1, 2005 -June 30, 2007 $278,133.44 (all inclusive) WHEREAS, the Third Lease Amendment is attached hereto as Exhibit "A." NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: 1. That the Mayor is hereby authorized to enter into a two (2) year Third Lease Amendment, with the option to renew for a two (2) year period, with K. Taniguchi, Ltd. for the Hanam~ Place County offices. 2. That sufficient funds will be budgeted for the appropriate future fiscal years to cover the anticipated obligation of the County under the Third Lease Amendment. BE IT FURTHER RESOLVED that the Clerk transmit copies of this resolution to: (1) the Dir ctor of Finance; (2) the Mayor; and (3) Assistant Corporation Counsel Gerald Takase. Dated at Kona Hawaii, this 16tH day of Marcn , 2005. INTRODUCED BY: 0. + O COU IL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawal'i on March 16, 2005 ATTEST: .~ y.:._ , ry,_ COUNTY CLERK ROLL CALL VOTE AYES NOES ABS EX ARAKAKI HIGA jt HOFFMAN X HOLSCHUH X IKEDA X ISBELL X JACOBSON K PILAGO X SAFARIK X 9 0 0 0 Reference OFFICER RESOLUTION NO. C-103/F'C - 4 3 ~J Q5