HomeMy WebLinkAboutCOM 0305.001 2012-2014 . J�Zr�f N1{�,i.
William P. Kenoi `A �I'�,I�� Nancy E. Crawford
Mayor �n.`.,t Director
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Deanna S. Sako
.ifs .e+, _ Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720
(808)961-8234 • Fax(808)961-8569
June 17, 2013 -o
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J Yoshimoto, Council Chairperson and
Members of the Hawai`i County Council tc-)
Hawai`i County Councilrrt
25 Aupuni Street cs
Hilo, Hawai`i 96720 .s
Re: Resolution 128-13 for multi-year lease
Resolution 128-13 authorizing the Office of the Prosecuting Attorney to enter into a new multi-
year lease for their Kona office in Kealakekua was previously transmitted. This resolution is
scheduled to be heard by the Council on Tuesday, June 18, 2013. Please find attached a copy of
the draft lease agreement.
If there are any questions, please do not hesitate to call Lee Lord from the Office of the
Prosecuting Attorney at 934-3315.
1/1414■-if64/14
Nancy l:rawford
Director of Finance
Enc.
cc: Prosecutor
Comm.No ° S• '
Ref. To:
Hawaii County is an Equal Opportunity Provider and Employer Ref. Date, J M
THIRD EXTENSION AND AMENDMENT OF
KEALAKEKUA BUSINESS PLAZA LEASE
(Prosecutor's Office)
THIS THIRD EXTENSION AND AMENDMENT OF LEASE (this "Amendment") is
made as of this June , 2013 between HAWAIIAN STATE ENTERPRISES,
LIMITED, a Hawaii corporation, whose principal place of business is do Marcus &
Associates, Inc., One Main, 2200 Main Street, Wailuku, Hawai`i 96793 (hereinafter
"Landlord"); and COUNTY OF HAWAII, whose principal place of business 25 Aupuni
Street, Hilo, Hawai`i 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"), 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.
3. Under that certain Second Extension and Amendment of Kealakekua
Business Plaza Lease dated May 1, 2008 (the "Second Amendment"), Landlord extended
the Lease for two (2) years through June 30, 2013, and amended the Lease to change the
incorporation date of the Expansion Space to May 1, 2008. A new rent schedule was
provided. The Original Lease, as amended by the First Amendment and the Second
Amendment, is referred to herein as the "Lease".
4. Landlord and Tenant wish to enter this into this Amendment to amend the Lease
to extend the Term.
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. Expansion Space. Landlord and Tenant hereby confirm and agree that the
Expansion Space is depicted and defined by the drawing or plan attached hereto as Exhibit A.
2. Extension of Term. The term of the Lease is hereby extended from July 1, 2013,
to June 30, 2016 unless sooner terminated as provided in the Lease. The term "lease year" as
used in this Amendment refers to each July 1St through June 30th year.
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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 the following
periods shall be calculated and paid as follows:
Lease Year Base Rent Per Monthly Base
Square Foot
07/01/13-06/30/14 $1.43 $11,271.26
07/01/14-06/30/15 $1.47 $11,586.54
07/01/15 —06/30/16 $1.52 $11,980.64
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. Building operating expenses as of June 1, 2013 is currently estimated at
$0.81 per square foot per month and the utility charge is estimated at $0.09 per square foot per
month.
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 for one (1) period of two years from July 1, 2016, to June 30, 2018, on the same terms
and conditions specified in the Lease, by giving Landlord and Landlord's designated agent
written notice of such election to lease in the manner prescribed in Section 10.7 of the Lease
not less than December 31, 2015. If Tenant exercises the extension option in full
compliance with this Lease, the Base Rent for such extended Term shall be as follows:
Lease Year Base Rent Per Monthly Base
Square Foot
07/01/16—06/30/17 $1.56 $12,295.92
07/01/17 06/30/18 $1.61 $12,690.02
There are no other or further options to extend the term of the Lease.
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.
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6. 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.
7. 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.
8. 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.
9. 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 Furuya
Hawaiian State Enterprises,Limited
45-150 Mokulele Drive
Kaneohe, Hawaii 96744
County of Hawai`i-Prosecutor's Office
TO TENANT at: 34 Rainbow Drive
Hilo, Hawai`i 96720
[Remainder of the page intentionally left blank]
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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:
MITCH ROTH
Prosecuting Attorney
APPROVED AS TO FORM AND LEGALITY:
CRAIG T. MASUDA
Deputy Corporation Counsel
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STATE OF HAWAII )
) SS:
COUNTY OF HAWAII )
On this day of , 2013, 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 Hawai`i
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
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STATE OF HAWAII )
) SS:
COUNTY OF HAWAII )
On this day of , 2013, before me personally appeared
ALBERT 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 Hawai`i
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
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STATE OF HAWAI`I )
) SS.
COUNTY OF HAWAII )
On this day of , 2013 before me personally appeared
WILLIAM P. KENOI, to me personally known, who, being by me duly sworn, did say that he is
the Mayor of the County of Hawai`i, a municipal corporation of the State of Hawai`i, that the
seal affixed to the foregoing instrument is the corporate seal of said County of Hawai`i, the
foregoing instrument was signed and sealed on behalf of the County of Hawai`i by authority
given to said Mayor of the County of Hawai`i by Sections 5-1.3 and 13-13 of the County
Charter, County of Hawai`i (2010), as amended, and said WILLIAM P. KENOI acknowledged
said instrument to be the free act and deed of said County of Hawai`i.
Signature
Print or Type Name
Notary Public, State of Hawai`i
My Commission Expires:
NOTARY CERTIFICATION
Doc.
Date: No. of Pages:
Notary Third Circuit
Name:
Doc.
Description:
Notary Signature Date
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