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Home My WebLink AboutRES 312 Draft 01 2016-2018 Hawai`i County Council-24 October 18,2017 ADOPTED: Ayes: Council Members David, Kanuha, Lee Loy, O'Hara, Poindexter, Ruggles, and Acting Chair Eoff—7. Noes: None. Absent: Council Members Chung and Richards—2. Excused: None. Res. 312-17: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY Authorizes the Mayor to enter into a ten-year and six-month lease with Prince Kuhio Plaza, LLC,with an option for a ten-year extension, for space located at the Prince Kuhio Plaza(former Safeway space). The property contains an area of approximately 39,525 square feet, to be used by various County agencies for general office use and related services. The annual rent would be $573,112.50 starting on July 1, 2018, and would rise incrementally to $747,781.82 ending on December 31, 2028. Reference: Comm. 470 Intr. by: Ms. David(B/R) Approve: FC-48 POSTPONED TO THE CALL OF THE CHAIR: Ayes: Council Members Chung, David, Kanuha, Lee Loy, O'Hara, Poindexter, Ruggles, and Acting Chair Eoff—8. Noes: None. Absent: Council Member Richards— 1. Excused: None. Res. 321-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE COVO FOUNDATION TO ASSIST WITH EXPENSES RELATING TO THE 2017 FILIPINO-AMERICAN HERITAGE MONTH CELEBRATION AND BARRIO FIESTA Transfers $3,000 from the Clerk-Council Services —Contingency Relief account (Council District 6); and credits to the Research and Development, Hawai`i County Resource Center account. Reference: Comm. 480 Intr. by: Ms. David (Vote on Res. 321-17 is on the next page.) Page 4 os,M y • , viee- COUNTY OF HAWAII •fikI" '/ •1- STATE OF HAWAII ,rteM..J•,• RESOLUTION NO. 312 17 RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI- YEAR LEASE OF REAL PROPERTY BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII. WHEREAS, various County Departments or divisions thereof, including but not • limited to the Department of Public Works' General Services, the Office of Aging, and the Office of Housing and Community Development have leases for office space and related services in Hilo which are expiring in the coming years and/or other issues with their leased space; and WHEREAS, the County's Department of Finance is planning to consolidate those office spaces into a single leased space in the interests of efficiently and conveniently providing social services to the community by having the Office of Aging and Office of Housing and Community Development in the same location, while also providing significant lease savings to the County during a single new lease term; and WHEREAS, the County's Department of Finance has been negotiating to lease approximately 39,525 square feet of office/warehouse space in the Prince Kuhio Plaza, identified as Space No. 300J, located at Hilo, Hawaii 96720, bearing Tax Map Key No. (3)2-2-047:006, from Prince Kuhio Plaza, LLC, for general office use and related services, along with certain parking stalls, for an initial term of ten(10) years and six (6)months at the annual rental rates set forth in Exhibit 1, with an option to extend for an additional term of ten(10) years; and WHEREAS,the Prince Kuhio Plaza, LLC has agreed to lease the space identified above to the County for an initial term of ten(10) years and six (6) months at the annual rental rates set forth in Exhibit 1, with an option to extend for an additional term of ten(10) years, subject to the approval of the Department of Hawaiian Homelands; 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 or of more than one fiscal year be approved by resolution; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the Mayor is hereby authorized to enter into a lease for approximately 39,525 square feet of office/warehouse space in the Prince Kuhio Plaza, identified as Space No. 300J, located at Hilo, Hawaii 96720, bearing Tax Map Key No. (3)2-2-047:006, for general office use and related services, along with certain parking stalls from Prince Kuhio Plaza, LLC for an initial term of ten(10) years and six (6) months at the annual rental rates set forth in Exhibit 1, with an option to extend for an additional term of ten(10) years. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that sufficient funds be budgeted in future fiscal years to cover the anticipated obligations of the County under the terms of the lease. BE IT FINALLY RESOLVED that a copy of this resolution be forwarded to: (1) Mayor Harry Kim; (2) Department of Finance; (3) Office of Housing and Community Development; (4) Department of Public Works; and (5) Department of Parks and Recreation. Dated at , Hawai`i, this day of , 20_. INTRODUCED BY: di/JP Al.....:c11101,- -- COUNCIL MEMB ', COUNTY OF HAWAII 6��J� COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG DAVID I hereby certify that the foregoing RESOLUTION was by EOFF the vote indicated to the right hereof adopted by the COUNCIL of the I{ANUHA County of Hawai`i on • LEE LOY O'HARA ATTEST: POINDEXTER RICHARDS RUGGLES Reference: C-470/FC COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 312 17 Prince Ku hio Plaza 111 E. Puainako Street; Space No. 300J Hilo, Hawaii 96720 TMK: 3/2-2-047:006 GROSS RENT: Dates Annual Rent 7/1/18 - 12/31/19 $573,112.50 1/1/20 - 12/31/20 $590,305.88 1/1/21 - 12/31/21 $608,015.05 1/1/22 - 12/31/22 $626,255.50 1/1/23 - 12/31/23 $645,043.17 1/1/24 - 12/31/24 $664,394.46 1/1/25 - 12/31/25 $684,326.30 1/1/26 - 12/31/26 $704,856.09 1/1/27 - 12/31/27 $726,001.77 1/1/28 - 12/31/28 $747,781.82 EXHIBIT 1