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HomeMy WebLinkAboutCOM 0470.000 2016-2018 Harry Kim -�M�Y o`",y; Collins Tomei Mayor „ \,J; Director Deanna S. Sako l?e uty Dir for cp ) - - - rrira.. County of Hawaii k., Finance Department , . m 25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 P1 (808)961-8234 • Fax(808)961-8569 C September 15, 2017 Valerie Poindexter, Council Chair and Members of the Hawai`i County Council Hawaii County Council 25 Aupuni Street Hilo, Hawai`i 96720 Re: Resolution for multi-year agreement Enclosed is a resolution authorizing the County of Hawai`i to enter into a multi-year lease for ten years to utilize the former Safeway space at Prince Kuhio Plaza for various County agencies. The County has multiple leases expiring over the next few years and plans to consolidate agencies into one lease space. This includes the Department of Public Works General Services lease located at 550 Kilauea Avenue,the Office of Aging lease at 1055 Kino'ole Avenue, and the Office of Housing at 1990 Kino'ole Avenue and 50 Wailuku Drive. Additionally,the consolidation of the Department of Environmental Management and relocation of the Department of Information Technology is being considered. If there are any questions,please feel free to contact Hamana Ventura of the Finance Department's Property Management Division at 323-4321. Collins Tomei Director of Finance Enc. Res. 312 Comm. No. ii-70 Ref. To: FC, • Ref. Date_sEP 1 8 211.17 • Hawai'i County is an Equal Opportunity Employer and Provider ' Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Finance DATE: September 14, 2017 • STAFF CONTACT: Daryl Inaba PHONE: 961-8567 A. REQUEST: Prepare County Council submittal authorizing the,County of Hawaii to enter into a multi-year lease for a ten year term to utilize the former Safeway space at Prince Kuhio Plaza for various County agencies. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The County of Hawaii has various leases expiring in the next few years and plans to consolidate agencies into one lease space. The Department of Public Works General Services lease located at 550 Kilauea Avenue expires on 1/31/18 and the owner has indicated they will be listing the property for sale. The Office of Aging lease at 1055 Kinoole expires on 7/31/18. The terms submitted by the landlord for a proposed extension include significant lease rent increases that reflect higher than current market rents and are prohibitive to the County extending the lease term. The Office of Housing and Community Development (OHCD) lease at 1990 Kinoole expires on 1/31/20. The OHCD requires relocation of their other offices at 50 Wailuku Drive due to possible hazardous materials and desires to have all services provided at one location. The consolidation of the Office of Aging and OHCD will allow for efficient assistance of the community with many social services provided by the County. Leasing of the premises at Prince Kuhio Mall will provide a significant savings to the County of Hawaii during the lease term. Further options include a consolidation of DEM. IT should be considered as a possible tenant in order to have a central location to service and maintain the County Network. SIGNED: DATE: q11 411 7 ,,.apartment Head