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HomeMy WebLinkAboutCOM 0255.000 2008-2010 ~+tr.nr N1 Nancy E. Crawford William P. Kenoi dlmvtr Director _ Deanna S.Sako Depuq, Director F p~ Nr County of Hawaii Finance Department 25 Aupuni Street. Room 118 • Hilo, Hawaii 96720 (808) 961-8234. Pas (808) 961-8248 0 co April 6, 2009 0c~ J Yoshimoto, Council Chair and Z co Members of the Hawai'i County Council Hawai'i County Council 25 Aupuni Street 1-7,; Hilo, Hawai'i 96720 - cn Subject: Kona Elderly Activities Office Lease Extension The County currently leases office space for the Department of Parks and Recreation's Kona Elderly Activities Office from Grace Basque. The current lease for this office, located at 85-951 Haleki'i Street in Kealakekua, Hawai'i, expires on June 30, 2009. The County seeks to extend the lease for a period of four (4) years at the current lease rent. Enclosed is a resolution that authorizes the Mayor to enter into a multi-year lease extension agreement with Grace Basque for the Kona Elderly Activities Office. If there are any questions, please do not hesitate to call the Property Management Division. -PAS, -6* Nancy E. Crawford Director of Finance Enc. cc: Property Management Res. tD4-o9~ Comm. No. °~SS Ref. To: F L Ref. Date APR 0 8 M Hawaii County is an Equal opportunity Provider and Employer Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Finance - Property Management DATE: 4/3/09 STAFF CONTACT: Daryl Inaba PHONE: 961-8567 A. REQUEST: Prepare resolution authorizing the Mayor to enter into multi year lease extension with Grace Basque for the Kona Activities Office located at 85-951 Haleki'i Street in Kealakekua, Hawai'i. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The current lease ends June 30, 2009. The leased space consists of 4000 square feet and lease rent charged is $1.00 per square foot. The four year extension will be at the current lease rent of $48,000 per year which includes the cost of common area maintenance. The County reserves the right to terminate the extension with 180 days notice if it builds its own building or enters into an agreement with a Senior Resource Housing Center. Attached are 1) Rental agreement dated July 7, 2005. 2) Notice dated April 18, 2007 to transfer payments to Grace Basque. 3) Copy of previous Resolution No. 56 05. SIGNED: ~ DATE: APR - R 2OOq Department ead ' 1 1 LAND COURT SYSTEM Return by Mail (XX) Pickup ( ) To: Office of the Corporation Counsel County of Hawaii 101 Aupuni Street, Suite 325 Hilo, Hawaii 96720 Tax Map Key (3)8-1-003:06 1 RENTAL AGREEMENT THIS AGREEMENT, made this , day of J"~ f 2005, by and between DAVID BASQUE (hereinafter referred to as Lessor), whose mailing address is P.O. Box 135, Kealakekua, Hawaii 96750, and the COUNTY OF HAWAII (hereinafter referred to as "Lessee"), a municipal corporation of the State of Hawaii, whose principal place of business and mailing address is 25 Aupuni Street, Hilo, Hawaii 96720. WITNESSETH: The Lessor hereby leases to the Lessee, under the terms and conditions set forth below, the premises located at 85-951 Halekii Street, Kealakekua, Hawaii 96750, Tax Map Key No. (3)8-1-003:061, consisting of four thousand (4,000) square feet, further described and outlined in red on EXHIBIT "A" attached hereto and incorporated herein by reference. -1- TOGETHER WITH any and all easements and rights-of-way that the Lessor has to provide access to the leased premises, and parking spaces for patron and staff vehicles as illustrated on EXHIBIT "B" appurtenant to the leased premises. TO HAVE AND TO HOLD the same unto the Lessee, its successors and assigns, under the terms and conditions set forth: 1. Term: The term of this Lease shall be for four (4) years, commencing July 1, 2005, with an option to renew the term of this Lease for an additional four (4) years, subject to approval by the County Council. The Lessee will be allowed to terminate this Lease if Lessee builds its own building, or enters into an agreement with a Senior Resource Housing Center, and upon giving one hundred eighty (180) days' notice. 2. Rent: The Lessee shall pay as rent for said premises the sum of FOUR THOUSAND AND NO1100 DOLLARS ($4,000.00) per month, payable in advance on or before the first day of each month during the term of this Lease. 3. Real Property Tax: Lessor will claim an exemption from real property tax as provided by Section 19-84 of the Hawaii County Code. Should any tax be assessed, Lessee agrees to pay as additional rent, a pro rata portion of the property taxes assessed against the land and the improvements. Computation of the additional rent, if any, shall be based on square footage of the premises. Lessor shall use best and good faith efforts to apply for and obtain a waiver of real property taxes apportioned to the premises occupied by Lessee. In the event that Lessor's real property tax obligation shall be reduced by reason of said waiver, then Lessee shall be relieved of its obligation hereunder to the extent of said waiver. -2- 4. Late Fee: The rent required to be paid hereunder, if not paid within ten (10) days of the due date, shall bear a late fee equal to five percent (5%) of the delinquent sum due for each month or portion thereof that the sum is delinquent. 5. Insurance: The Lessee is self-insured and agrees to provide coverage to the Lessor during the term of this Lease. 6. Assignment and Sublettin¢: The Lessee shall have the right to assign, sublet, or transfer the premises, or any part thereof. The Lessor shall have the right to consent to an assignment of this Lease, said consent not to be unreasonably withheld. 7. Liens and Encumbrances: The Lessee shall pay or cause to be paid all costs for work done on the premises contracted by Lessee, and Lessee shall keep the premises free of all mechanics' liens on account of any such work. Lessee shall indemnify and hold harmless Lessor from and against any claim of liens or encumbrances or charge upon the premises. If Lessee desires to protest the claim of a lienor, Lessee shall post a bond in sufficient amount to secure the release of the premises from any such lien. If a final judgment for any amount is entered, Lessee shall immediately pay and satisfy the same. If any claim of lien is filed against the premises or if any other action affecting title to the premises is commenced, the party receiving such notice shall immediately notify the other party in writing. The Lessee will not commit or suffer any act or neglect whereby the premises or any improvement thereon or the estate of the Lessee therein shall at any time during said term, or any renewal thereof, become subject to any attachment, judgment, lien, charge or encumbrance whatsoever, and will indemnify and hold Lessor harmless from all loss, cost and expense with respect thereto. -3- I I 8. Obligations of Lessor: The Lessor shall secure to the Lessee the quiet enjoyment of the leased premises during the term of this Lease. The Lessor shall maintain, repair, replace and restore the common areas, the exterior and the structure of the building in which the leased premises are located. The Lessor shall permit the Lessee, upon termination of this Lease or termination of any renewal thereof, to remove its equipment and fixtures; provided, however, that such removal shall not injure the leased premises, and all such removal shall be accomplished prior to the expiration of the term of this Lease or termination of any renewal thereof The premises is currently served by two air conditioning units; one owned by Lessor and one owned by Lessee. Upon termination of this Lease or the termination of any renewal thereof, Lessor shall permit Lessee to remove and retain its air conditioning unit, subject to an option of the Lessor to purchase said unit for a purchase price to be agreed upon by Lessor and Lessee. 9. Obligations of Lessee: The Lessee shall keep the interior of the leased premises in good repair, excepting reasonable wear and tear arising from the use by Lessee, and its clients. The Lessee shall not make any strip or waste or any unlawful use of said premises or any part thereof. The Lessee shall permit the Lessor or its agents to enter upon the leased premises at any reasonable time for the sole purpose of examining the condition of said premises. The Lessee shall be responsible for its utilities, including water, electricity and telephone, and there shall be no additional common area maintenance fees. 10. Destruction of Premises: If, during the term of this Lease, or any extension or renewal thereof, the premises shall be destroyed by fire, the elements, or any other cause whatsoever, this Lease shall cease and become null and void from the date of such destruction -4- and the Lessee shall immediately surrender the premises to the Lessor and shall pay rent only to the time of surrender. If the premises shall be damaged by fire or other cause, so as to be capable of being repaired within a reasonable time, Lessor shall elect within sixty (60) days to repair or rebuild the premises and shall do so as speedily as possible, and during the time that the repairs are being made, the Lessee shall pay only such proportion of the rent as the area which it is legally and safely able to occupy and use during said restoration bears to the whole. If the Lessor elects not to repair or rebuild, then the Lessee, at its sole option and decision, may terminate this Lease or continue this Lease as to that area that it is legally and safely able to occupy and use, and pay as rent only that proportion of the rent as that area bears to the whole. 11. Renewal Option: Provided that the Lessee is not in default in the performance of the terms and conditions of this Lease and this Lease is not terminated before the expiration of any term hereof as provided herein, upon receipt by the Lessor of a written notice of exercise of option on or before sixty (60) days prior to the termination of the four year period of this Lease, the Lessor agrees to renew this Lease under the same terms and conditions for an additional period of four (4) years, except that the amount of monthly rent shall be mutually agreed upon by the parties at least thirty (30) days prior to expiration of the original four year term of this Lease. 12. Binding on Successors: All the agreements, conditions and undertakings herein contained shall extend to, inure and be binding on the representatives, heirs, executors, administrators, successors and assigns of the respective parties hereto. 13. Entire Agreement: This Lease constitutes the entire agreement and understanding between the parties hereto, and supersedes any prior agreement and understanding relating to the subject matter of this Lease. This Lease may be modified or amended only by a duly authorized written instrument executed by the parties hereto. -5- 14. Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Hawaii. . 15. Severability: In the event any part or parts of this Lease are found to be void or unenforceable, the remaining provisions of this Lease shall nevertheless be binding and enforceable with the same effect as though the offending part or parts are deleted. 16. Headings of Paragraphs: The headings of paragraphs herein are inserted only for convenience and reference and shall in no way define, limit or describe the scope or intent of any provisions of this Lease. 17. Construction of Lease: Each of the parties hereto acknowledge that each party has reviewed and approved this Lease, and that each party has had the opportunity to have its counsel review and approve this Lease, and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Lease or any amendments hereto. 18. Waiver: The failure of a party to enforce at any time any provision of this Lease shall not constitute a waiver of that party's right thereafter to enforce the same or any other provision of this Lease. 19. Costs and Attorney's Fees: In the event that enforcement of this Lease is necessary, the prevailing party in any action shall be entitled to an award of costs of suit, including, but not limited to, reasonable attorney's fees, to be paid by the defaulting party. 20. Forum Selection Clause: No action or proceeding involving this Lease shall be commenced by either party except in the Circuit or District Courts of the Third Circuit, County of Hawaii, State of Hawaii; nor shall any action commenced in such court be removed or transferred to any other state or federal court. -6- i 21. Execution: This Lease may be executed simultaneously in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute but one and the same instrument. It shall not be necessary that any single counterpart hereof be executed by all of the parties hereto so long as at least one counterpart is executed by each party. Facsimile signature shall be accepted as an original for the purposes of this paragraph. IN WITNESS WHEREOF, the undersigned parties have set their hands the day and year first above written. y DAVID BASQUE COUNTY OF HAWAI'I By DIVA/ khkRR-Y~ rr,2,-- Ita May0I' APPROVED AS TO FORM AND LEGALITY: Recommend Approval: Deputy Corporation Counsel P TRICIA G. ENG HARD County of Hawaii Director JUL 6 2005 Department of Parks and Recreation Date -7- STATE OF HAWAII ) SS: COUN'T'Y OF HAWAII ) On this day of 2005, before me personally appeared HARRY KIM, to me personally known, who, being by e duly sworn, did say that he is the Mayor of the COUNTY OF HAWAII, a municipal corporate n of the State of Hawaii; that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawaii; that the foregoing instrument was signed and sealed in behalf of t county of Hawaii by authority given to said Mayor of the County of Hawaii by Section 5-1.3 g) of the County Charter, County of Hawaii (1991), as amended; and said HARRY KIM ackno ledged said instrument to be the free act and deed of said County of Hawaii. Notary Public, State f Hawaii My commission expir ) STATE OF HAWAII SS: COUNTY OF HAWAII ) On this day of 2005, before me personally appeared QV'1 C1 6OSG,uG to me known to be the person described in and who executed the foregoing instrument, as lewo/- a- Ovvne.r- of (3 a-1 d p: ypt / , and acknowledged tha Dehe executed the same in behalf of the o g zatio d acknowledged the instrument to be the free act and deed of the organization. r CN ,e S >2~ Notary Pu ic, State of Hawaii OBYN K. NAtNE My commission expires: 0 9 -o -z ; o0 4 -8- STATE OF HAWAII ) ) SS. COUNTY OF HAWAII ) On this day of 2005, before me personally appeared DIXIE KAETSU, to me personally known, who, being by me duly sworn, did say that she is the Managing Director of the County of Hawaii, a municipal corporation of the State of Hawaii; that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawaii; that the foregoing instrument was signed and sealed in behalf of the County of Hawaii by authority given to said Mayor of the County of Hawaii by Section 5-1.3(g) of the County Charter, County of Hawaii (2000), as amended, and assigned by the Mayor to the Managing Director pursuant to Section 6-1.3(h) of the County Charter; and said DIXIE KAETSU acknowledged said instrument to be the free act and deed of said County of Hawaii. JEA VIERNES Notary Public, State of Hawaii My commission expires: 11/1/2005 C t; 04(15/2007 099:'0 305-551-5569 COUNTY OF HI ACCT DV PAGE K DEPARTMENT OF F-WANCE E Al, LACTION 07 DATE I°R 1 ZOQ7 Gi: : Conuty of l4awaii Property Management Division 25 Aupuni Street Hilo HI 96720 RE: Lease Agreement for .MK: (3) 8-1-03:61 lam the successor to David Basque who passed away on NOV. 2, 2006 In compliance with Article 12 in the lease, this will serve as notice to you that all terms and conditions contained in the lease will continue to be honored. My address is: P.O. BOX 135 KEALAKEKUA, HI. 96750 Please make all payments hereafter to: GRACE BASQUE - Address: P.O. BOX 135 KEALAKEKUA, HI. 96750 Signature U 4. ~tidf~ COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 56 05 RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR OR OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY 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 of more than one fiscal year be approved by resolution; and WHEREAS, the Department of Parks and Recreation's Kona Elderly Activities Office presently occupies 4,000 square feet of office space located at 85-951 Haleki'i Street, Kealakekua, Hawai'i; and WHEREAS, the current lease, that ends on June 30, 2005, has an option to renew the term of the lease for an additional four (4) years; and WHEREAS, renewing the term of the lease will allow.the Kona Eld.efly Activlties, Iceo continue to stay at its current location for a cost of $4,000 a month; and WHEREAS, the County wishes to enter into a multi-year lease with Mr. David Basque, for an additional four (4) years, commencing on July 1. 2005. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: 1. That the Mayor is hereby authorized to enter into a multi-year lease agreement for office space for the Department of Parks and Recreation. 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 Departments of Finance and Parks and Recreation. Dated at Hilo. , Hawai'i, this 6th day of April , 2005. INTRODUCED BY: - COUlCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County ofHawai`i Hilo, AYES NOES ABS EX Hawaii ARAKAKI R I hereby certify that the foregoing RESOLUTION was by the HIGA R vote indicated to the right hereof adopted by the COUNCIL of HOFFMANN R the County ofHawai'i on April 6, 2005 HOLSCHUH X ATTEST JKEDA ISBELL X JACOBSON R PILAGO R SAFARIK X 8 0 1 0 Reference: C-137/FC-54 Cc nc