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HomeMy WebLinkAboutREP FC 044 2016/01/05 (2014-2016) REPORT OF THE COMMITTEE ON FINANCE DATE: January 5, 2016 Re: Comm. No. 594/Res. No. 362-16 PLACE: Council Chambers Hilo, Hawai`i TIME: 2:15 p.m. Council Chair and Members Hawaii County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Resolution No. 362-16, reports as follows: Resolution No. 362-16, transmitted by Finance Director Deanna S. Sako, via Communication No. 594 dated December 16, 2015, authorizes the Director of Finance to negotiate a lease of real property, Old Job Corps site, situated at Pi`ihonua, South Hilo, County and State of Hawaii, identified as Tax Map Key: 2-3-026:008, to the Hawaii County Economic Opportunity Council. This resolution authorizes the Finance Director to negotiate a 10-year lease with two 10-year renewal options. The property, consisting of 2.263 acres, would be used to develop a self- sustainable botanical garden, visitor center, and related uses. Executive Director of the Hawaii County Economic Opportunity Council (HCEOC), Jay Kimura, came forward for questions. He stated that the preference is to have a longer lease because they approached a private foundation for funding and it is unsure if the initial ten year lease would be long enough for the private foundation to provide funding. Council Member Dennis Onishi suggested a postponement or an amendment for a longer term of lease, which would allow HCEOC to get larger funds. Finance Director Deanna Sako stated that the intention is to do additional renewals of the lease. Ms. Sako stated that she will assist in amending the resolution to authorize a long term lease with the renewal option, and delete the areas that are specific to time, to be introduced at the next reading. The vote was then taken with six ayes. Council Members Aaron Chung, Dru Kanuha and Daniel Paleka were absent and excused. Pursuant to Chapter 2, Article 19, Section 2-120 of the Hawai`i County Code, the council may, by resolution approved by a majority of its members, direct the finance director to negotiate the disposition of real property by leasing it to nonprofit organizations. FC Report No.: 44 FC-44 Page 2 January 5, 2016 Your Committee on Finance is in accord with the purpose and intent of Resolution No. 362-16, and recommends its adoption. wb AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X ILAGAN X KANUHA X e ONISHI X PALEKA x KAREN EOFF, CHA R POINDEXTER x FC REPORT NO.: 44 WILLE x ADOPTED: JAN 2 2 2016