HomeMy WebLinkAboutRES 280 Draft 01 2008-2010OFFICE INFORMATION ONLY
Meeting: Referred to Finance Committee
Action: Never agendized-Withdrawn per request by the Finance Director via Comm. 636.1
dated 12/23/2009
Re: Res. 280-09: Comm. 636 (2008-2010 term)
COUNTY OF HAWAII
STATE OF HAWAII
RESOLUTION NO. 280 09
RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER
FISCAL YEAR AND MORE THAN ONE FISCAL YEAR FOR A MULTI-
YEAR LEASE OF OFFICE SPACE FOR A SATELLITE VEHICLE
REGISTRATION AND LICENSING SERVICE CENTER IN WAIMEA
WHEREAS, in July 2008, the Motor Vehicle Registration section of the
Department of Finance 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 (VRL) Division under the
Department of Finance; and
WHEREAS, to better serve the public, the VRL division proposes to establish a
satellite VRL service center in Waimea to provide basic vehicle registration and driver's
license services; and
WHEREAS, the office space for a new Vehicle Registration and Licensing
service center in Waimea was found within the Holomua Center, located at 64-1067
Mamalahoa Highway, Waimea, Hawai'i, where both the Waimea Prosecutor's and
Council Offices currently lease existing office space; and
WHEREAS, the existing office spaces' leases will be reduced to coincide with the
lease terms of the additional lease space for the VRL center; and
WHEREAS, County wishes to enter into a multi-year lease with Starr Equities,
Inc., a Domestic Profit Corporation, for five (5) years, with a five (5) year option, for the
addition of approximately 1,000 square feet to the existing Prosecutor's and Council
Offices, for a total of approximately 2,200 square feet of office space; and
WHEREAS, the additional lease and rent commencement will be the earlier of
the landlords completion of improvements or five (5) months from the date of execution
of lease, whichever comes first; and
WHEREAS, a copy of the proposed Lease is attached as Exhibit 'T'; 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 a multi-year lease
agreement for office space located at the Holomua 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 the County Clerk of the County of Hawai'i
shall forward a copy of this resolution to the Department of Finance.
Dated at
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
Hawai'i, this day of
P41I1mo
INTRODUCED BY:
vvla�' 'V
COUNCIL MEMBER, COUNTY OF HAWAI'I
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL of the
County of I-Iawai'i on
ATTEST:
ROLL CALL VOTE
AYES NOES ABS EX
INRIQUE'S
FORD
GREEN WELL
HOFFMANN
IKEDA
NAEOLE
ONISHI
YAGONG
YOSHIMOTO
Reference:
COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO
LAND COURT REGULAR SYSTEM
(AREA ABOVE RESERVED FOR RECORDING INFORMATION)
After Recordation, Return by ® Mail or ❑
FILL IN NAME AND ADDRESS BELOW
Office of the Corporation Counsel (CTM)
101 Aupuni Street, Suite 325
Hilo, Hawaii 96720
Pick-up Phone#:
DOCUMENT CONTAINS PAGES
TITLE OF DOCUMENT: COUNTY OF HAWAII OFFICE SPACE
LEASE AGREEMENT
PARTIES TO DOCUMENT
LESSORILANDLORD:
LESSEE/TENANT:
STARR EQUITIES, INC.
1962-B Wells Street
Wailuku, Hawaii 96793
COUNTY OF HAWAII
25 Aupuni Street
Hilo, Hawaii 96720
Tax Map Key (3)6-4-006:032 Room B-2-3
EXHIBIT 66
1"
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COUNTY OF HAWAII OFFICE
SPACE LEASE AGREEMENT
This OFFICE SPACE LEASE AGREEMENT, made this day of
2009, by and between STARR EQUITIES, INC., a Hawaii
corporation, whose mailing address is 1962-B Wells Street, Wailuku, Hawaii 96793 (hereinafter
referred to as "Landlord" or "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 "Tenant" or "Lessee").
Grant. In consideration of the rents, covenants, and agreements hereinafter reserved and
contained and on the part of the Tenant to be observed and performed, the Landlord demises
and leases to the Tenant, and Tenant rents from the Landlord, the following for use as an
office space for the Tenant:
Portion of those certain premises designated as Room B-2-3, consisting of
approximately 2,200 square feet of office space of the shopping center known
as Holomua Center, located at 64-1067 Mamalahoa Highway, Waimea,
Hawaii 96743, and identified as Tax Map Key: (3)6-4-006:032 (Por.)
(hereinafter "the Premises"), and shown on Exhibit A attached hereto.
Together with the full right of access to said premises over, across, and
through any alleys, common entrances, lobbies, stairways, halls, and corridors
in or around said building.
2. Use. The premises shall be utilized as office space for the Tenant.
Term. The term of this lease shall commence on , 2009 or the date
of delivery of the space to the County, whichever is later, and continue for a term of five (5)
years, with the option to renew for an additional five (5) years, subject to mutual agreement on
rent.
4. Delivery of Possession. Tenant shall be given occupancy of the premises by
, 2009, or the date of delivery of the space to the Tenant, whichever
comes sooner. If there is a delay in Landlord giving occupancy, which delay is caused by
events beyond the control of the Landlord, the obligation to pay rent shall be deferred until
such occupancy shall be granted in writing to Tenant by Landlord, and the expiration date of
the lease shall be adjusted back the same number of days as the period delay in the
commencement date of the lease. If the Landlord, for any reason, cannot deliver possession of
the demised premises to the Tenant at the commencement of the lease term, as specified
above, this lease agreement shall not be void or voidable, unless the Tenant elects to terminate
the lease by giving notice in writing.
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5. Quiet Enjoyment. Landlord agrees that upon payment by the Tenant of the rent herein
provided and upon the faithful observance and performance of all the covenants, terms, and
conditions in this lease on the part of the Tenant to be observed and performed, the Tenant
shall peaceably and quietly hold and enjoy the leased premises for the term of this lease
without hindrance or interruption by the Landlord or any other person or persons lawfully or
equitably claiming by, through, or under the Landlord.
6. Rent. Tenant shall pay to the Landlord, in such coin or currency of the United States of
America as at the time of payment shall be legal tender for the payment of public and private
debts, without any setoff or deduction whatsoever, a monthly rent as follows:
Year 1 $1.15 per rentable square foot
Year 2 $1.20 per rentable square foot
Year 3 $1.25 per rentable square foot
Year 4 $1.30 -per rentable square foot
Year 5 $1.35 per rentable square foot
In addition to the rent, Tenant shall pay to the Landlord its share of the Common Area
Maintenance (CAM) charges of FIFTY-NINE CENTS ($0.59) per square foot, but not more
than fifteen percent (15%) of the Shared Expenses. The County shall be responsible for any
increases in CAM charges. Any real property tax exemption provided for the Tenant's
pro -rata space in the building shall be credited towards the Tenant's share of CAM charges.
7. Excise Tax. In addition to the rent, the Tenant shall pay the Hawaii general excise tax
(currently 4.166%), or any successor tax, which may be payable thereon.
8. Real Property Tax. The Tenant shall be responsible for its pro -rata share of the real property
taxes. However, Landlord agrees to timely submit a claim for partial exemption from real
property tax, as provided by Section 19-84, Hawaii County Code (2005 edition, as amended).
Tenant will cooperate fully with the Landlord in obtaining such exemption.
9. Deposit. No deposit shall be required.
10. Common Area Maintenance, Utility and Building Services Charges. The CAM charge shall
be paid monthly at the rate noted in paragraph 6 of this lease agreement. Landlord shall
operate and maintain the property, common area, and facilities therein in a manner deemed as
reasonable, appropriate and in the best interest of the tenants of the property. Landlord shall
be responsible for all building services included in the CAM charges. The term "common
area and facilities" as used in this lease agreement shall be deemed to include those portions of
the property as are designated and/or designed for the non-exclusive use of the tenant in
common with other authorized users, and shall include, but not be limited to: parking areas;
roadways; service areas; driveways; areas of ingress and egress; landscaped and planted areas;
sidewalks and other pedestrian ways; corridors; courts; public washrooms; drinking fountains;
community rooms; toilets; stairs; ramps; buildings or structures used in connection with the
maintenance of said common area; and all other similar facilities, from time to time provided
for the joint use and convenience of such authorized users.
64006032 - 3 -
Landlord services shall include air conditioning (in -window air conditioning is Tenant
responsibility), electricity to common area, water and other supplies for common area
restroom, and trash removal for common area.
Tenant shall be responsible for its own janitorial service, trash removal and sorting of
recycling within the premises, and removal of trash to a -central collection point.
11. Assignment and Sublease. Tenant shall not, without the prior written consent of Landlord,
which consent will not be unreasonably withheld, assign or mortgage this lease or any interest
herein, or sublet or grant any concession or license to use the premises or any part thereof, or
allow any other person to use the whole or any part of the premises.
12. Use and Maintenance of Premises. Tenant shall use the leased premises solely for the purpose
of office and warehouse space and shall not use the same for any other purpose without the
prior written consent of Landlord. Tenant shall not make or suffer any waste, strip or
unlawful, improper, or offensive use of said premises. Tenant shall not do or suffer any act or
carry on any practice which may damage the premises or become a nuisance. Landlord shall
be responsible for general maintenance, painting and repairs of the structural and exterior of
the building, together with the paved open space and fence. Tenant shall keep the premises in
good order, condition and repair, and in a strictly clean and sanitary condition.
13. Inspection. Landlord and Landlord's agents will be allowed to enter said premises to examine
the state of repair and condition during regular business hours after providing Tenant with
reasonable written notice. If Landlord deems that repairs by the Tenant are necessary,
Landlord may request in writing that the Tenant make the same forthwith.
14. Signs. Tenant shall not, without the prior written consent of Landlord, erect, install, or affix
any sign about the exterior or on the windows of the premises. Tenant shall allow Landlord to
affix or keep on the premises a "For Lease" or "For Sale" notice.
15. Alterations. Any Tenant improvements must have prior written approval by Landlord and be
in compliance with all Federal, State and County laws, rules and regulations.
16. Landlord's and Agent's Immunity and Insurance. The Tenant is self-insured and no additional
insurance policy is required. Tenant shall defend and hold harmless the Landlord, its
successors and assigns, from and against any and all actions, claims, suits, damages or costs
arising out of or causally resulting from the acts or omissions of Tenant, its officers, agents or
employees, that may arise or causally result from the operation, Tenant maintenance, or use of
the leased premises occurring during the term of the lease.
17. Surrender. The Tenant shall, at the end of the term of this lease or earlier termination thereof,
peaceably and quietly vacate and deliver up to Landlord the possession of the premises,
together with all additions and alterations made by Tenant, unless Landlord requires removal
of the same. Tenant may remove all moveable trade fixtures (if installed by Tenant) on the
condition that Tenant shall repair any damage to the premises resulting from the removal of
said fixtures. Tenant shall not be required to remove any exterior improvements other than its
signs.
64006032 -4 -
Any property of the Tenant remaining on the premises after the termination of the lease may
be disposed of by the Landlord upon thirty (30) days' written notice and failure of Tenant to
retrieve the property. The parties shall act in good faith.
18. Condemnation.
a. Automatic Termination of Lease. Except as may otherwise be required by any
mortgage on the property, if the whole of the premises shall be taken by any public
authority under the power of eminent domain, then the term of this lease shall cease as
of the day possession is taken by such public authority, and all rent shall be paid up to
that date. If only a part of the premises shall be taken under eminent domain, this
lease shall terminate as to the portion taken, and unless this lease shall be terminated as
hereinafter provided, it shall continue in full force and effect as to the remainder of the
premises, and the base rent shall be reduced in the proportion the floor area taken
bears to the total floor area leased, and the Tenant, at its own cost and expense, shall
make all necessary repairs and alterations to the premises required by such taking.
b. Option to Cancel. If the remainder of the premises cannot be made tenantable for the
purposes for which the Tenant has been using the premises, the Tenant shall have the
option, to be exercised within thirty (30) days after the filing of such eminent domain
action, of canceling this lease effective as of the date the condemning authority shall
take possession; provided, however, that if more than fifty percent (50%) of the floor
area of the premises shall be taken under power of eminent domain, either parry, by
written notice to the other party, delivered on or before the date of surrendering
possession to the public authority, may tenninate this lease, effective as of such
surrender of possession. All compensation and damages of any type awarded for any
taking, whole or partial, shall belong to and is the property of the Landlord, except as
hereinafter provided.
19. Destruction of Premises. If the premises are partially or totally damaged or destroyed by fire
or other casualty so as to become partially or totally untenantable, such damage or destruction,
insofar as the same pertains to the building itself, exclusive of any damage to Tenant's
fixtures, furniture or other property, shall be repaired or rebuilt at the discretion of the
Landlord. Landlord shall advise Tenant within thirty (30) days after the casualty whether it
intends to rebuild or repair. If the Landlord elects not to repair or rebuild, this lease shall
terminate without further notice and the obligations of either party shall cease. No rent shall
be payable from the date such casualty occurs until the repair or rebuilding shall be completed,
unless the premises shall be tenantable and there is no substantial interference with Tenant's
business.
20. Subordination of Lease to Mortgage. Tenant agrees that this lease and all rights of Tenant
hereunder shall be subject and subordinate to all present and future mortgages made or to be
made by Landlord as security for any indebtedness of Landlord; provided, however, that the
mortgagee shall agree to recognize this lease in the event of foreclosure and will cause the sale
of said premises to be made subject to Tenant's lease, provided that the Tenant is not in
default under any of the terms, conditions, or covenants of this lease at the time of such
foreclosure.
64006032 - 5 -
21. Leasehold Improvements and Drawings. Landlord shall complete improvements for offices
as required by County. The cost of completing these improvements shall be amortized over
the term of the lease.
22. Additional Construction or Remodeling. Landlord reserves the right to remodel, repair, paint,
or renovate the said building or do additional construction at any time to the extent that it does
not compromise the integrity or the security of the demised premises. Said work shall be
undertaken by Landlord with minimum interference or inconvenience to Tenant's use of the
premises, and any interference or inconvenience resulting to Tenant or its use of the premises
shall not constitute a breach or violation of Landlord's covenant of quiet enjoyment or any
other covenant. If Landlord's additional work requires entry into Tenant's premises, Landlord
and Tenant shall enter into a written agreement on the terms and conditions of such entry and
work.
23. Non -Waiver of Breach. The acceptance of rent by Landlord shall not be deemed a waiver by
Landlord of any breach by Tenant or of the right of Landlord to terminate this lease for any
such breach, and that the failure of Landlord to insist upon strict performance of any covenant
or condition of this lease, or to exercise any option herein conferred, shall not be construed as
a waiver or relinquishment for the future of any such covenant or condition but the same shall
remain in full force and effect.
24. Notice.
a. Notices to the Tenant. All notices to be given to the Tenant should be given in writing
and by depositing the same in the United States mail, registered or certified, postage
prepaid, and addressed to the County of Hawaii at 25 Aupuni Street, Hilo, Hawaii
96720.
b. Notice to Landlord. Notice to Landlord shall be given in writing personally to an
agent or employee of Landlord or by depositing the same in the United States mail,
registered or certified, postage prepaid, and addressed to Landlord at 1962-B Wells
Street, Wailuku, Hawaii 96793 or at such other addresses as Landlord may give to the
Tenant in writing from time to time.
C. Time of Service. Any written notice sent by registered or certified mail shall be
deemed to have been served as of the date it is mailed in accordance with the
foregoing'provisions.
25. Force Majeure. In the event that either Landlord or the Tenant shall be delayed, hindered, or
prevented from the performance of any act required under this lease agreement by reason of
strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrection, war, or other reason of like nature, not
the fault of the party delayed in performing the work or doing the acts required under the
terms of this lease agreement, then performance of such act shall be excused for the period of
the delay and the period for the performance of any such act shall be extended for a period
equivalent to the period of such delay.
64006032 - 6 -
26. Hazardous Materials. The Landlord affirms, upon due diligence, that the premises are free of
hazardous materials. Landlord warrants that it has not received written notice from any
governmental authority having jurisdiction over the premises that the premises is in violation
of the Comprehensive Environmental Response, Compensation and Liability Act of 1989, as
amended ("CERCLA"), the Resources Conservation and Recovery Act of 1976, as amended
("RCRA"), the Toxic Substance Control Act, as amended, the Hazardous Materials
Transportation Act, as amended, or any statute governing underground storage tanks or
asbestos. Landlord represents and warrants that to Landlord's actual knowledge (without
undertaking any investigation or inquiry) the premises do not contain any hazardous or toxic
materials prohibited by law. Landlord shall indemnify and hold harmless the Tenant from and
against any and all claims, demands or losses in connection with the release of hazardous or
toxic materials caused by Landlord. Tenant shall indemnify and hold harmless the Landlord
from and against all claims, demands or losses in connection with the release of hazardous or
toxic materials caused by Tenant, its agents or employees.
27. Construction of Language. Nothing herein contained is intended or shall be construed as
creating a relationship of principal and agent, or of a partnership or* oint venture, between
Landlord and Tenant. Wherever used herein, the singular number shall include the plural and
the neuter gender shall include the masculine and feminine genders, unless the context clearly
requires otherwise. The obligations of the parties executing this lease agreement shall be joint
and several. The term "premises" shall mean the premises demised under the lease; the term
"Landlord" shall include the Landlord, its successors, and assigns; and the term "Tenant" shall
include Tenant and Tenant's successors and permitted assigns.
28. Facsimiles. The parties hereto agree that telephone facsimile (fax) copies of any documents
required to be executed by the provisions 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.
29. Dispute Resolution/Forum Selection. Any dispute action or proceeding involving this lease,
commenced by any party, if not resolved by mutual consent, shall be commenced in the
District Courts of the Third Circuit, County and State of Hawaii.
30. Governing Law. -It is agreed that this lease agreement shall be governed by, construed, and
enforced in accordance with the laws of the State of Hawaii.
31. Entire Agreement. This lease agreement contains the entire agreement between the parties.
Any agreement hereafter made shall be ineffective to change, modify, discharge or effect an
abandonment of the lease, in whole or in part, unless such agreement is in writing and signed
by the party against whom enforcement of the change, modification, discharge or
abandonment is sought. It is expressly understood and agreed that each and all of the
provisions of this lease agreement are conditions precedent to be faithfully and fully
performed and observed by the Tenant and to entitle the Tenant to continue in possession of
the premises hereunder; that said conditions are also covenants on the part of the Tenant; and
that time of performance of each is of the essence of this lease.
64006032 - 7 -
IN WITNESS WHEREOF, the parties hereto have entered into this agreement as of the day
and year first above written.
STARR EQUITIES, INC.
LESSOR/LANDLORD
COUNTY OF HAWAII
By:
LESSEE/TENANT
RECOMMEND APPROVAL:
KENNETH VAN BERGEN
Property Manager
County of Hawaii
APPROVED AS TO FORM
AND LEGALITY:
CRAIG T. MASUDA
Deputy Corporation Counsel
County of Hawaii
64006032 - 8 -
STATE OF HAWAII
SS.
COUNTY OF MAUI
On' , before me personally appeared
, to me personally known, who, being by me duly sworn (or
affirmed), did say that the person is the
of STARR EQUITIES,
INC., a Hawaii corporation, that said instrument was signed in behalf of the corporation by authority
of its board of directors, and
instrument to be the free act and deed of the corporation.
Notary Public, State of Hawaii
Printed Name:
My commission expires:
NOTARY CERTIFICATION STATEMENT
Document Identification or Description:
Doc. Date:
No. of Pages:
Signature of Notary
Printed Name of Notary
or ❑ Undated at time of notarization.
(in which notarial act is perfonned)
Date of Notarization and
Certification Statement
64006032 - 9 -
acknowledged the
Jurisdiction: Circuit
STATE OF HAWAII )
) SS:
COUNTY OF HAWAII )
On , before me personally appeared WILLIAM P.
KENOI, to me personally known, who, being by me duly sworn, did say that WILLIAM P. KENOI is
the Mayor 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-I.3(g) of the County Charter, County of Hawaii (2000), as
amended; and said WILLIAM P. KENOI acknowledged said instrument to be the free act and deed of
said County of Hawaii.
Signature
Name (Print or Type)
Notary Public, State of Hawaii
My Commission Expires:
NOTARY CERTIFICATION STATEMENT
Document Identification or Description:
Doc. Date:
No. of Pages:
or ❑ Undated at time of notarization.
(in which notarial act is performed)
Signature of Notary Date of Notarization and
Certification Statement
Printed Name of Notary
64006032 -10-
Jurisdiction: Circuit
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EXHIBIT A
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