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Home My WebLink AboutCOM 0028.000 2018-2020 y, ,• Wil Okabe 40 �� Managing Director , i Harry Kim Maya '- =� - - -1- Barbara J.Kossow Deputy Managing Director E•oF•H�• Lirnxt±fir fPatuai'l Mff-b lz of flpgiltavor 25 Aupuni Street,Suite 2603 • Hilo,Hawai'i 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawai`i 96740 (808)323-4444 • Fax(808)323-4440 • December 7, 2018 0 Q n —'-- Aaron S. Y. Chung, Council Chair _ and Members of the County Council `�-- County of Hawai`i 25 Aupuni Street n Hilo, HI 96720 o as Dear Chair Chung and Members: SUBJECT: Change of Zone Application (REZ 18-000228) Applicant: Hilo One Incorporated Request: A3a-RS-15 Tax Map Key: 2-4-039:026 Amendment to Change of Zone Ordinance No. 07-026 (REZ 06-000051) Applicant: Hawaii Island Veterans Memorial, Inc. Request: Amendment to Condition B (Time Extension to Pay Water Commitment Fee), Condition C (Time Extension to Complete Construction), and Delete Condition F (Installation of Traffic . .Lights Tax May Key: 2-4-057:029, por. 030, por. 031 (formerly 2-4-057:001) As required by Chapter 7, Sec. 6-7.5 (a), Hawai`i County Charter, transmitted herewith for the County Council's consideration and action are the Windward Planning Commission's letters and enclosures regarding the above-referenced request. Sincerely, Ha Kim Mayor Enclosures n� cc: Planning.Department Comm. N . W Ref. To: <WI IA W> County of Hawaii is an Equal Opportunity Provider and Employer. Ref. Date DEC 1 4'2018 J�tYfOF Mq . °' •i9 Joseph Clarkson,Chair Harry Kim • yl1„' ', Donald Ikeda,Vice Chair Mayor •�'1►%. �/c -w+ Gilbert Aguinaldo Dorm Dela Cruz 44 oF'Na•N: Thomas Raffipiy John Replogle County of Hawaii WINDWARD PLANNING COMMISSION Aupuni Center • 101 Pauahi Street,Suite 3 • Hilo,Hawai`i 96720 Phone(808)961-8288 • Fax(808)961-8742 DEC 7 2018 Aaron S.Y. Chung, Council Chair and Members of the County Council County of Hawai`i 25 Aupuni Street Hilo, HI 96720 Dear Chair Chung and Council Members: SUBJECT: Amendment to Change of Zone Ordinance No. 07-26 (REZ 06-000051) Applicant: Hawaii Island Veterans Memorial, Inc. Request: Amendment to Condition B (Time Extension to Pay Water Commitment Fee), Condition C (Time Extension to Complete Construction), and Delete Condition F (Installation of Traffic Lights) Tax Map Key: 2-4-057:029, por. 030, por. 031 (formerly 2-4-057:001) The Windward Planning Commission, at its duly held public hearing on November 7, 2018, recommended for your approval the proposed legislative bill for an amendment to Change of Zone Ordinance No. 07-26. The properties are located at the north corner of the Kawili Street and Kapi`olani Street intersection, Waiakea, South Hilo, Hawai`i. The Applicant withdrew their request to amend Condition B (Water Commitment) and Condition F (Install Street Lights and Traffic Controls) at the hearing. The Commission concurs with the following Planning Director's reasons for recommending favorable consideration of the request: The applicant is requesting to amend Conditions B, C and F of Change of Zone Ordinance No. 07 26. Condition B required submittal of a water commitment payment to the Department of Water by September 16, 2007 (within 180 days of the effective date of the ordinance). Water commitments have been secured for Parcels 29 and 31 to support Hawai`i County is an Equal Opportunity Provider and Employer Aaron S.Y. Chung, Council Chair and Members of the County Council County of Hawai`i Page 2 the combined veteran's center/coimnunity based outpatient clinic (Exhibit 15 of Application). The applicant has not yet made a water commitment payment for Parcel 30 to support the affordable housing project. This water commitment payment will be the responsibility of EAH/HKI Kawili LLC. The applicant is requesting to amend Condition B to make the water commitment payment for Parcel 30 payable upon securing financing and prior to project construction. Condition C required that construction of the project be completed by March 20, 2012 (five years from the effective date of the ordinance). The applicant is requesting to amend Condition C to allow completion of construction of the project within ten (10) years from the effective date of the amended ordinance. The applicant has made steady, substantial progress in moving the proposed development forward and requests this additional time to secure financing and continue the permitting process. Condition F requires the applicant to design, purchase and install street lights and traffic controls, as may be required by the Department of Public Works (DPW). The applicant requests this condition be deleted because the applicant indicates based on a verbal consultation with DPW, entrance lights and traffic control measures will not be required for the project since streetlights and traffic controls already exist as the Kawili Street-Kapi`olani Street intersection, which is in close proximity to the project's access driveways at Kawili Street and Kapi`olani Street. The applicant, HIVM, is a 501(c)(3) nonprofit corporation administered by a volunteer Board with a mission to establish the Ka Hui Koa development project consisting of a combined veteran center(CVC) and community based outpatient clinic (CBOC) at its property on Kawili Street (Parcel 29). The CVC/CBOC building will co- locate several agencies and veteran service providers to offer a full range of services to active and retired military members and their dependents. Co-located offices under one roof and a multi-media conference room for training sessions and group meetings will result in an efficient delivery of services, including health care, not currently available in Hawai`i County. The CVC/CBOC is envisioned as a.public building which will be a one- story, 10,600-square foot, ADA accessible building. Federal funds are being sought for the construction of this building and user tenants will share in the operating costs. In 2015, HIVM partnered with EAH Housing/HKI Kawili LLC to develop the affordable housing and community center components of the development on Parcel 30, which will consist of approximately 96 rental housing apartment units and a community center with spaces for a common lounge area, coffee bar, fitness room and property management offices. The multi-purpose room within the community center will be - J Aaron S.Y. Chung, Council Chair and Members of the County Council County of Hawai`i Page 3 available to community groups for occasional use. HKI Kawili LLC is consulting with the County Office of Housing and Community Development to obtain Hawai`i Revised Statutes Section 201H status for exemptions from zoning code and ordinance condition requirements for the affordable housing project. CONDITION C The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant, successors or assigns, and that are not the result of their fault or negligence. The applicant requests a 10-year time extension to complete construction of the proposed development. The applicant has made substantial progress towards completing the project since the property was rezoned in 2007. They have grubbed and rough graded the property, final graded Parcel 30, maintained the property on an on-going basis, constructed a two-lane access driveway/box culvert off of Kawili Street onto Parcel 31 to serve both the proposed affordable housing community and CVC/CBOC project, installed sewer stub-outs to serve both projects, and secured the property with fencing and gates. They have also partnered with EAH/HKI Kawili LLC for the development of the affordable housing project and have secured grant funding from the State for design of the CBOC project. The applicant will seek Final Plan Approval for the project components upon the successful amendment of the ordinance, and expects to commence construction of the affordable housing project in 2020, upon securing project financing and subsidies. Approval of the time extension request to comply with Condition C would not be contrary to the General Plan or Zoning Code nor the original reasons for granting the Change of Zone. There have not been any significant changes to the General Plan or Zoning Code for this area since the subject rezone was approved in 2007. At that time the General Plan LUPAG Map designation for the property was the same that it is today, High Density Urban. This designation includes uses such as general commercial, multiple-family residential at a density of up to 87 units per acre, and related services. The current RM-1 zoning district is consistent with the General Plan LUPAG Map designation and compatible with the surrounding land uses which are a mix of residential, commercial and educational uses. This favorable recommendation is made with the understanding that the applicant remains responsible for complying with all other applicable governmental requirements in connection with uses permitted within the Multiple-Family Residential zoning district, Aaron S.Y. Chung, Council Chair and Members of the County Council County of Hawai`i Page 4 prior to its commencement or establishment upon the subject property. Additional governmental requirements may include the issuance of building permits, compliance with the Fire Code, installation of improvements required by the American with Disabilities Act (ADA), among many others. Compliance with all applicable governmental requirements is a condition of this favorable recommendation; failure to comply with such requirements will be considered a violation that may result in enforcement action by the Planning Department and/or the affected agencies. CONDITION B AND CONDITION F Approval of the request to amend Condition B and Condition F would be contrary to the General Plan or Zoning Code and the original reasons for granting the Change of Zone. The applicant is requesting an amendment to Condition B in order to defer submittal of a water commitment payment for the affordable housing project until financing can be secured by the affordable housing developer, EAH Housing/HKI Kawili LLC. According to a letter from the Department of Water Supply(DWS) dated August 13, 2018, unless a water commitment is officially effected via a water commitment payment, water availability is subject to change without notice depending on the water situation. Thus, if the water commitment payment is deferred as requested, the applicant runs the risk of potable County water not being available for development of the affordable housing project on Parcel 30. The request is also not entirely consistent with the intent of the concurrency requirement in Section 25-2-46(m) of the zoning code, which indicates that a time extension for a change of zoning ordinance shall not be granted unless the DWS has determined that it can meet the water requirements of the project and issue water commitments using its existing system. For these reasons, the Planning Director does not support the applicant's request to defer the water commitment payment beyond 180 days from the effective date of the amended ordinance, which is the standard time period granted to secure water commitments for new rezones. The Director also recommends amending the condition to require the applicant to maintain valid water commitments for the CVC/CBOC project, which will expire May 31, 2020 according to a letter from DWS dated June 9, 2017 (Exhibit 15 of Application). The applicant is requesting to delete Condition F, which required the applicant to design, purchase and install street lights and traffic controls, as may be required by the Department of Public Works (DPW). The applicant requests this condition be deleted because the applicant indicates based on a verbal consultation with DPW, entrance lights and traffic control measures will not be required for the project since streetlights and traffic controls already exist as the Kawili Street-Kapi`olani Street intersection, which is I Aaron S.Y. Chung, Council Chair and Members of the County Council County of Hawai`i Page 5 in close proximity to the project's access driveways at Kawili Street and Kapi`olani Street. In their memo dated August 21, 2018, the Department of Public Works- Engineering Division indicated that they object to the deletion of Condition F because they will not be able to determine streetlight and traffic control requirements until the applicant submits final construction plans showing the final locations of driveways. It should be noted that if upon approval of the final construction plan, the DPW determines the existing traffic controls and street lighting is sufficient to maintain public safety, the applicant will not be required to install additional devices. For these reasons, the Planning Director does not support the deletion of Condition F. Based on the above findings, the Planning Director recommends that a favorable recommendation of the request to amend Condition C (Complete Construction) and an unfavorable recommendation to amend Condition B (Water Commitment) and Condition F (Install Street Lights and Traffic Controls) of Change of Zone Ordinance No. 07 26 be forwarded to the County Council. In addition, the Planning Director recommends that existing conditions in the ordinance be revised to reflect the current standard language for conditions of approval. The accompanying draft bill to amend Ordinance No. 07 26 is provided for your consideration. Please note the proposed conditions of approval attached to the draft bill. Material to be deleted is bracketed and struck-through; new material is underscored. We are enclosing copies of the staff Background, Planning Director's Recommendation, the Power point presentation and a draft transcript of the hearing for your information. Sincerel , ��' oseph Clarkson, Chairman indward Planning Commission LHawaiilslandVeteransMemorialAmendREZ06-051 wpc2 Enclosures cc: Yukie Ohashi Hawaii Island Veterans Memorial, Inc. Department of Public Works Department of Water Supply DOT-Highways, Honolulu Amy Self, Esq., Corporation Counsel 1 BHawaiiVetMem-Amend REZ.doc 10/2/18 COUNTY OF HAWAII PLANNING DEPARTMENT BACKGROUND REPORT HAWAII ISLAND VETERAN'S MEMORIAL INC. AMENDMENT TO CHANGE OF ZONE ORDINANCE NO. 07 26 (REZ 06-000051) HAWAII ISLAND VETERAN'S MEMORIAL INC. has submitted an application to amend Condition B (Water Commitment), Condition C (Complete Construction), and Condition F (Install Street Lights and Traffic Controls) of Change of Zone Ordinance No. 07 26, which rezoned 4.888 acres from an Open (0) to a Multiple Family Residential— 1,000 square feet (RM-1) zoning district in 2006. The property is located at the north corner of the Kawili Street and Kapi`olani Street intersection, Waiakea, South Hilo, Hawai`i, Tax Map Keys: (3) 2-4-057:029, portion of 030 and portion of 031. APPLICANT'S REQUEST 1. Current Development Plans: The applicant, HIVM, is a 501(c)(3) nonprofit corporation administered by a volunteer Board with a mission to establish the Ka Hui Koa development project consisting of a combined veteran center(CVC) and community based outpatient clinic (CBOC) at its property on Kawili Street (Parcel 29). The CVC/CBOC building will co-locate several agencies and veteran service providers to offer a full range of services to active and retired military members and their dependents. Co-located offices under one roof and a multi-media conference room for training sessions and group meetings will result in an efficient delivery of services, including health care, not currently available in Hawaii County. The CVC/CBOC is envisioned as a public building which will be a one-story, 10,600-square foot, ADA accessible building. Federal funds are being sought for the construction of this building and user tenants will share in the operating costs. In 2015, HIVM partnered with EAH Housing/HKI Kawili LLC to develop the affordable housing and community center components of the development on Parcel 30, which will consist of approximately 96 rental housing apartment units and a community center with spaces for a common lounge area, coffee bar, fitness room and property management offices. The multi-purpose room within the community center will be available to community groups for occasional use. HKI Kawili LLC is consulting with the County Office of Housing and Community Development to obtain Hawaii Revised Statutes Section 201H status for exemptions from zoning code and ordinance condition requirements for the affordable housing project. 2. Request and Reasons for Request: The applicant is requesting to amend various conditions of Change of Zone Ordinance No. 07 26 as follows: Condition B Condition B required submittal of a water commitment payment to the Department of Water by September 16, 2007 (within 180 days of the effective date of the ordinance). Water commitments have been secured for Parcels 29 and 31 to support the combined veteran's center/community based outpatient clinic (Exhibit 15 of Application). The applicant has not yet made a water commitment payment for Parcel 30 to support the affordable housing project. This water commitment payment-will be the responsibility of EAH/HKI Kawili LLC. The applicant is requesting to amend Condition B to make the water commitment payment for Parcel 30 payable upon securing financing and prior to project construction. Condition C Condition C required that construction of the project be completed by March 20, 2012 (five years from the effective date of the ordinance). The applicant is requesting to amend Condition C to allow completion of construction of the project within ten (10) years from the effective date of the amended ordinance. The applicant has made steady, substantial progress in moving the proposed development forward and requests this additional time to secure financing and continue the permitting process. Condition F Condition F requires the applicant to design, purchase and install streetlights and traffic controls, as may be required by the Department of Public Works (DPW). The applicant requests this condition be deleted because the applicant indicates based on a verbal consultation with DPW, entrance lights and traffic control measures will not be required for the project since streetlights and traffic controls already exist as the Kawili Street-Kapi`olani Street intersection, which is in close proximity to the project's access driveways at Kawili Street and Kapi`olani Street. -2- 3. Landowner: Ownership of Parcels 29 and 31 was transferred from the State to the County by Executive Order for the express purpose of establishing a combined veteran's center, veteran's housing and related purposes. Parcel 30 is owned by the County of Hawai`i. The County has lease agreements withthe applicant and its assigns for development of the properties (see Exhibits 8, 12, and 13 of the Application). 4. Supportive Information: The applicant, who is the leaseholder, has submitted an Application for Amendment to Change of Zone Ordinance No. 07 26 dated July 5, 2018. (Planning Department Exhibit 1 and 2—Application for Amendment to Change of Zone Ord. No. 07 26 and Updated Site Plan for Affordable Housing Project) BACKGROUND INFORMATION 5. Final Environmental Assessment: A Final Environmental Assessment for the Project received a Finding of No Significant Impact (FONSI) determination and was published in the August 8, 2006 Environmental Notice bulletin of the Office of Environmental Quality Control. 6. Change of Zone Ordinance No. 07 26: A 4.88-acre portion of the properties was rezoned from Open to Multiple-Family Residential-1,000 square feet (RM-1) in March 2007 in order to allow the development, in three phases, a 6,200-square foot veterans' center, a 15,000-square foot multi-purpose community center, and 96 to 110 independent- living apartment units for senior affordable housing with preference to veterans and spouses of veterans. STATE AND COUNTY PLANS 7. State Land Use District: Urban. 8. General Plan LUPAG Map Designation: High Density Urban. 9. County Zoning: Multiple-Family Residential (RM-1). 10. Hilo Community Development Plan: The Hilo CDP, adopted by Resolution No. 1 on May 21, 1975, recommends the property for Open zoning. 11. Special Management Area (SMA): The property is not within the SMA. -3- DESCRIPTION OF SUBJECT PROPERTY AND SURROUNDING AREA 12. Subject Property: The rezone area consists of a 4.888-acre portion of Parcels 29, 30 and 31 fronting Kawili Street and Kapi`olani Street. Parcel 29 is 0.9275 acres in size, Parcel 30 is 0.9507 acres in size, and Parcel 31 is 5.615 acres in size. The project site is approximately 7.6 acres in size, whichincludes the.4.888-acre portion that was rezoned in 2007 and the remaining area that is also zoned RM-1. A small portion of the east side of Parcel 29 is zoned RS-10 and coincides with the abandoned railroad right-of-way which has been consolidated into the lot. The subject property is currently vacant of uses and is covered with vegetation consisting of low brush, grass and trees. 13. Surrounding Land Uses/Zoning: Surrounding properties are a mix of commercial, residential and schools. The Waiakea School complex is located on property zoned RS- 10 to the south. To the north are properties zoned RM-1 consisting mainly of multiple- family dwellings. To the northwest is the Holy Apostles Episcopal Church and further west across Kapi`olani Street is the University of Hawai`i at Hilo campus on land zoned University. To the northeast is the Hilo Meishoin Church on a property zoned RM-1. A convenience store is located on the corner of Kino`ole and Kawili Streets on property zoned CN-10. 14. USDA Soil Survey Report: Keaukaha Series (rKFD) extremely rocky muck, 6 to 20 percent slopes. 15. Flood Zone: The property is classified as Zone X, which is an area determined by FEMA to be outside the 500-year flood plain. 16. Flora/Fauna Resources: A Flora and Fauna Survey was conducted as part of the FEA. The survey identified plant species found on the project site and bird species commonly found in the project area. The survey concluded that no substantial impacts to flora and fauna would result from the proposed project. According to the applicant, the property was historically used for sugar cane production. The property is currently covered with vegetation consisting of low brush, grass and trees. The applicant is proposing to include native plants as part of the new landscaping for the project. 17. Archaeological/Historic/Cultural Resources: The property was previously the subject of several archaeological studies conducted for a proposal by the Department of Water -4- Supply. In a letter dated November 30, 1995, the Department of Land and Natural p Resources—State Historic Preservation Division accepted the previous data recovery report for sites identified on the property. Additionally, as a result of DLNR-SHPD's approval of the report, grading and grubbing permits were issued to the property. 18. Public Access: There is no record of a designated public access that traverses the property. 19. Traffic: According to the applicant's 2006 Final Environmental Assessment, traffic generated by the proposed development is expected to be minimal. PUBLIC FACILITIES AND SERVICES 20. Access: There will be three accesses available to the property. The Kawili Street driveway will serve both the affordable housing project on Parcel 30 and the CVC/CBOC project, and was designed and constructed in late 2016. Driveway connections at Kapi`olani Street and Ululani Street will serve the affordable housing project and will be constructed by HKI Kawili LLC. Ululani Street and Kapi`olani Street are County owned and maintained paved streets within a 60-foot wide right-of-way. Kawili Street is a County owned and maintained paved street within an 80-foot wide right-of-way. There is a drainage ditch along the Kawili Street frontage. 21. Water System: County water is available to the property via an 8-inch waterline within Kawili Street. The applicant has paid the water commitment fee to provide water for the CVC/CBOC project and is requesting additional time to secure water commitments for the affordable housing project. 22. Wastewater System: The proposed development will be connected to the County's sewer system. According to the applicant, they have completed the installation of sewer stubs from the main sewer line along Kawili Street to serve both the affordable housing and CVC/CBOC projects. In their memo dated August 14, 2018, the Department of Environmental Management (DEM) indicated that before approval can be issued to connect to the County sewer system, the applicant will need to do a sewer study and provide any necessary improvements as may be recommended by the study to mitigate project impacts. -5- 23. Solid Waste: Solid waste would be collected and disposed of at the Hilo solid waste landfill site located off of Leilani Street, in compliance with applicable Federal, State and County rules and regulations. 24. Police, Fire and Emergency Services: The property will be served by the Hilo Central Fire Station located on Kino`ole Streetas well as the stations at Waiakea and.Kawailani Street. The Police Headquarters is located on Kapi`olani Street. The Hilo Medical Center is located approximately 3 miles from the property. 25. Other Essential Utilities: Telephone and electrical services are available to the subject property. AGENCIES' COMMENTS 26. Department of Public Works: P.D. Exhibit 3-August 21, 2018 memo 27. Department of Water Supply: P.D. Exhibit 4-August 13, 2018 memo 28. Department of Environmental Management: P.D. Exhibit 5-August 14, 2018 memo 29. Department of Health: P.D. Exhibit 6-July 24, 2018 memo AGENCIES -NO COMMENTS/CONCERNS 30. Police Department, Department of Land and Natural Resources-Land Division and Engineering Division. AGENCIES -NO RESPONSE 31. Fire Department, Office of Housing and Community Development. PUBLIC COMMENTS 32. As of the date of this writing, the Planning Department has not received any written comments or objections from the general public or adjacent landowners. -6- ‘vvi 6 p u 37 r'^ Hawaii Island Veterans Memorial Inc. P.O.Box 6820 Hilo,Hawaii 96720 July 5,2018 Mr. Michael Yee, Director Planning Department ' County of Hawaii 101 Pauahi Street � Hilo, HI 96720 • } Dear Mr.Yee: AMENDMENT TO CHANGE OF ZONE ORDINANCE NO.07-26 (REZ 2006-000051) Applicant: Hawaii Island Veterans Memorial, Inc. , ) Original Request: Open to RM-1 Subject Request: Request for Renewal and Amendment of COZ No.07-26 TMKs: 2-4-057: 029, 030, &031 ) Ordinance No. 07-26 rezoned the Property from Open (0)to RM-1 in September 2007 and allowed the development of a veterans' center,community center, and senior affordable housing with preference to veterans and spouses of veterans. HIVM is now partnered with EAH Housing/HKI Kawili LLC to develop the affordable housing component of this development. Ownership of the housing parcel is being transferred to HKI Kawili LLC. HIVM is in process of securing a development partner for the combined veterans center.We are requesting amendments to COZ Ordinance 07-26 to reflect our current status and to comply with its conditions. Please direct your correspondence to me or our Planning Consultant: Bob Williams, HIVM, PO Box 6820, Hilo, HI 96720/bobwilliams63@msn.com/(808)238-8498 Yukie Ohashi, PO Box 786, Volcano, HI 96785/yohashi@hawaiiantel.net/(808)990-4777 Respectfully submitted, 'a R. N. Williams, Lt Col, USA, Retired ) Chairman of the Board cc: Ms. Marian Gushiken, EAH, Inc. Attachments Filing Fee($250) Application(20 copies) Planning Dept. Exhibit 1 rTh Hawaii Island Veterans Memorial Inc. P.O.Box 6820 Hilo,Hawaii 96720 } AMENDMENT TO CHANGE OF ZONE ORDINANCE NO. 07-26 (REZ 2006-000051) Applicant: Hawaii Island Veterans Memorial, Inc. Original Request: Open to RM-1 Subject Request: Request for Renewal and Amendment of COZ No. 07-26 } TMKs: 2-4-057: 029, 030, &031 } The Applicant requests your support for the renewal and amendment to Change of Zone Ordinance No. 07- } 26 (REZ 2006-000051). This application provides the following: A) Background B) New Amendment Requests ) C) Description of the Project Components D) Status of the Development E) Reasons for This Time Extension Request F) Status of Compliance with RM-1 Rezoning Conditions A) BACKGROUND Ordinance No. 07-26 rezoned the Property from Open (0) to RM-1 in September 2007 and allowed the _) development of a veterans' center, community center, and senior affordable housing with preference to 1 veterans and spouses of veterans. A Final Environmental Assessment for the Project"Ka Hui Na Koa 0 Kawili, A Hawaii Island Veterans' Memorial, Inc. Project" (Yukie Ohashi Planning Consultant, July 2006) received a Finding of No Significant Impact (FONSI) and was published in the OEQC's Environmental Notice on August 8, 2006. The project site is located in the Waiakea land division, South Hilo District,within the County of Hawaii, at the intersection of Kawili and Kapiolani Streets. Three parcels comprise the approximately 7.6-acre site and are identified as TKM: 2-4-057: 029, 030, 031 (Exhibit 1). Access to the property is from Kawili Street, Kapiolani Street, and Ululani Street. Adjacent and nearby properties include the University of Hawaii Hilo Campus, two churches, and Waiakea High School. The original Change of Zone permit in 2007 was granted to Hawaii Island Veterans Memorial Inc. (HIVM). Subsequently, in 2015, HIVM formed a partnership through a Memorandum of Understanding (MOU) with EAH Housing and it's Hawaii affiliate, HKI Kawili LLC to develop the housing component of the Project (Exhibit 2). The parties in this Amendment Request are HIVM and HKI Kawili LLC: Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. 1) Hawaii Island Veterans Memorial Inc. is a 501(c)(3) nonprofit corporation administered by a C volunteer Board with a mission to establish the Ka Hui Koa development project consisting of a ( Combined Veteran Center(CVC) and Community Based Outpatient Clinic (CBOC) at its property (_ on Kawili Street in Hilo. 2) HKI Kawili LLC, was created to be the initiallessee and eventual general partner of the limited partnership owner of the senior housing project. HKI Kawili LLC's sole member is Hui Kauhale, Inc., a Hawaii nonprofit corporation and affiliate of EAH Housing, a California non-profit corporation specializing in developing, managing, and operating family, senior and veterans affordable independent living community rental properties with projects in Hawaii and the West Coast. The (. following websites illustrate the mission and core values of EAH Housing, as well as a scheduled ( veterans housing development in California. http://www.eahhousing.org/about-us/eah-mission-core-values �. ( http://www.montereyherald.com/veterans/20180615/multi-story-permanent-veterans-housing- project-coming-together-for-vtc-in-marina HKI Kawili LLC is concurrently consulting with the County of Hawaii Office of Housing and Community Development to obtain Hawaii Revised Statutes Section 201 H status for affordable housing exemptions from certain conditions. B) AMENDMENT REQUESTS (. The Applicant requests amendments to certain conditions listed here and further described in Section F below: • Condition B (Payment of required water commitment) • Condition C (Completion of construction from five years to ten years of the date of the Ordinance) • Condition F (Installation of traffic lights) • Condition R(Request for an administrative time extension for the performance of the conditions) C) DESCRIPTION OF THE PROJECT COMPONENTS _ HIVM's intent has always been to partner with a developer for the housing component and has now formed a partnership with EAH Housing/HKI Kawili LLC. TMK Parcels 29 and 31 remain under HIVM control and Parcel 30 has been transferred to HKI Kawili Inc. This is further described in Section C.2 below. 2 { I Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. 'Th Table/ summarizes the Project components. Table 1.Project Components TMK No. Area Use Owner/Developer 2-4-057:029 1.03 acres* CVC/CBOC HIVM 2-4-057:030 5.615 acres Affordable senior rental housing and HKI Kawili LLC } Community Center 2-4-057:031 0.95 acre Kawili and Ululani Streets access to HIVM \ parcels 29 and 30,drainage,sewer stub- outs, utilities and water line connections, parking and landscaping "Total area includes the original 0.821 acre(40,403.26 SF)plus the addition of 4,500 SF from the Abandoned Railroad Right-of-Way which was added to the Project Site by BLNR Executive Order dated April 13,2017(See Exhibit 9,pp 4,5). C.1 CVC/CBOC(HIVM) • The Combined Veterans Center/Community Based Outpatient Clinic building will co-locate several agencies and veteran service providers to offer a full range of services to active and retired military members and their dependents. Co-located offices under one roof and a multi-media conference room for training sessions and group meetings will result in an efficient delivery of services, including health care, ) not currently available in Hawaii County (Exhibits 3 and 4). } Envisioned as a"public" building, the 10,600 sq. ft. CVC and clinic will be one-story and ADA-accessible. ) Federal funds are being sought for the construction of the building. User tenants will share the operating • ) costs that will include taxes, utilities, repair and maintenance, insurance, and management fees. } C.2 Senior Affordable Rental Apartments/Community Center(HKI Kawili LLC) As proposed by HKI Kawili LLC, rental housing apartment units and a community center will be constructed on 5.6 acres (Exhibits 5 and 6). • } • The affordable housing development for seniors 62 years or older consisting of approximately 68 • ' units will serve households at or below 80%Area Median Income (AMI), though the vast majority will target households at or below 50%AMI in order to qualify for project-based vouchers. ,, Approximately 29% of the units will serve households at or below 80%AMI. Preferences for all ` ? units will be given to veterans and spouses of deceased veterans. Low-rise one and two-story building clusters, arranged in a village concept, are comprised of one- bedroom units, with one two-bedroom manager's unit. Onsite parking and four central laundry facilities will also be provided. ) • A Community Center will include spaces for a common area lounge, coffee bar, fitness room, and property management offices. The Center will also feature a multi-purpose room along with a (non- ` commercial) kitchen to provide space for larger tenant social and/or educational activities. The multi-purpose room opens onto a large sheltered lanai and outdoor area where larger events could ) be accommodated. The multi-purpose room and its adjacent indoor/outdoor area will also be available to community groups for occasional use as described in the Project Concept(Exhibit 7). ._. 3 Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. C.3 Access, Infrastructure Connections, Landscaping(HIVM) c Improvements on the 0.95-acre Parcel 31 (formerly designated as the Ululani Street extension) will be ("" limited to driveways at Kawili and Ululani Streets to serve both the housing and combined veterans center developments, sewer stub outs, utilities and water line connections, and for access by emergency vehicles. Some of these'improvements have been completed by HIVM with State of Hawaii grant-in-aid funds received in 2016 as described in Section D.3 below. Surface finishing of the access driveways to each respective project(Housing and CVC/CBOC) will be completed by the respective developers. Current ( usage of this strip of vacant land for overflow parking by the neighboring Hilo Meishoin Church will continue as agreed by HIVM. ( . D) STATUS OF THE DEVELOPMENT Since receiving rezoning approval in 2007, HIVM has made substantial progress in moving this project forward. The following completed actions demonstrate HIVM's current status of development and i commitment to complete the project. • D.1 Activity on the Property • Obtained the necessary permits, grubbed and rough graded the Property, including selective tree removal through contracts with Kraus Tree Works, Leonard DeCambra, and LK Trucking. • Final'graded Parcel 30. • Maintained the Property on an ongoing basis. • Constructed a two-lane access driveway/box culvert off Kawili Street onto parcel 31 to serve both the proposed affordable housing community and the CVC/CBOC. • Installed sewer stub-outs to serve both the proposed affordable housing and the CVC/CBOC. • Secured Property with fencing and gates. D.2 Regarding Executive Order(s) and Lease(s) • BLNR Executive Order No. 4014 set aside a 5.615 acre parcel (TMK: 2-4-057:030) for HIVM to develop an affordable senior independent living housing community for veterans and their spouses. • BLNR Executive Order No.4108 set aside a 0.821-acre parcel (TMK: 2-4-057:029) for HIVM to develop a combined veterans center(CVC) and community based outpatient clinic(CBOC). 4 i n Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. fl • County of Hawaii Lease Agreement with HIVM dated April 8, 2005 set aside the project lands for the intended affordable housing and combined veterans center uses for a period of five years. • Lease lapsed for a 32-month period from January 2010 until September 2012 due to a County administrative delay. • County of Hawaii Lease Agreement with HIVM was renewed on August 31, 2012 and ^l acknowledged and added the Ululani Street extension (TMK: 2-4-057:031) to the Project and renewed the Lease for an additional 5 years (Exhibit 8). • BLNR Cancellation of Executive Order No. 4014 and No. 4108, dated April 13, 2017 to amend and clarify that the affordable housing will be for qualifying seniors (62+) with preference given to veterans and spouses of deceased veterans. Additionally; a portion of the old Railroad-Right-of Way (TMK: 2-4-057:001) was added to the HIVM Property(Exhibit 9). • On September 7, 2017, Hawaii County Council unanimously approved by Resolution 252-17, the County Finance Director's request to award to HKI Kawili LLC a 65-year lease on TMK: 2-4-057:30 (Exhibit 10). • BLNR Executive Order No. 4539 signed on November 3, 2017, rescinded the prior Executive Order ) Nos. 4014 and 4018 and approved the re-issuance of the same parcels with the modification that ) the 5.615-acre parcel (TMK: 2-4-057:030) be used for the purpose of affordable housing for seniors ) with a preference to veterans and spouses of veterans (Exhibit 11). } • County of Hawaii Second Amended Lease Agreement for TMK: 2-4-057: 29 and 31 to HIVM dated ' November 3, 2017 fora period of five years beginning September 1, 2017 and ending on September 1, 2022 (Exhibit 12). • Lease to HKI Kawili LLC for TMK: 2-4-057: 30 has been prepared and is now pending BLNR - approval (Exhibit 13). • As required by the Lease Agreement, tax payments and liability insurance payments are current for all parcels. ) D.3 Combined Veterans Center/Community Based Outpatient Clinic(CVC/CBOC) • In 2015, HIVM applied for and obtained a grant-in-aid for$425,000 from the State of Hawaii (Exhibit 14)with funds received in July 2016 to (a) construct the Kawili Street access driveway and drainage culvert, (b) construct sewer stub-outs off Kawili Street, and (c) develop a final architectural design ..' and related engineer plans for the CVC/CBOC. 5 Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. (_. • The sewer stub-outs and access driveway/box culvert off Kawili Street were constructed in late 2016. • . CVC/CBOC architectural and associated engineer plans were designed to US Department of Veterans Affairs (USDVA) specifications and submitted to the County Planning Department for Final ( ' Plan Approval. Its review and approval is expected following the subject COZ Ordinance amendment and time extension request. • Status of the search for partnership for the development and operation of the CVC/CBOC: Since the inception of HIVM in 2004, it has been the organization's vision to create a one-stop location for ( ` veterans' services provision in East Hawaii. This will streamline the delivery of services and greatly ( reduce the inefficiencies that veterans currently experience. HIVM has and continues to engage the US Department of Veterans Affairs (VA) in bringing this vision to Hilo. Tripler VA has once again turned to its parent agency and congress to request$10M in federal CIP funds for FY-2018 to build and operate a new combined CVC/CBOC in Hilo. Successful funding, however, will be contingent upon congressional approval and VA priorities nationally. However, in the event attempts with the VA is unsuccessful, HIVM has initiated discussions with other Hawaii-based health care operators to seek alternative funding partners who currently hold VA Choice Program contracts. { D.4 Senior Affordable Housing { HIVM has partnered with EAH/HKI Kawili LLC for the development of the affordable senior housing component of the Project and obtained a Memorandum of Understanding (MOU) from EAH Housing, a .C non-profit housing corporation specializing in developing, managing, and operating quality affordable • housing and diverse communities, with projects in Hawai'i and California. t.. r" • EAH intends to develop 68 affordable rental units for seniors (with preference to veterans and their { . spouses) age 62 and above who earn 30-80% of HUD median income, with approximately 20 of those units for 50-80% of HUD median income. Through discussions with HIVM, EAH/HKI Kawili LLC has elected to (1) reduce the number of units to 68 from 110, and (2) offer the housing units c _ as rentals rather than the previously proposed "lease-hold life estates" both as described in the Final Environmental Assessment(Yukie Ohashi Planning Consultant, LLC, July 2006). • EAH/HKI Kawili LLC. HKI Kawili LLC is currently working with the County on the Ground Lease for TMK: 2-4-057:030 pursuant to County Resolution 252-17. The Lease is expected to receive BLNR approval in August 2018. • HIVM has initiated and received approval from the BLNR to modify the narrow language in the existing Executive Order to allow other income-eligible non-veteran seniors to occupy units in the absence of a sufficient veteran pool of renters (See Exhibit 9). 6 t-- ice) Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. D.5 Fundraising HIVM has demonstrated self-sufficiency since 2005 to the present through fundraising, including sponsoring its annual Jazz& Blues Festival at the Nani Mau Gardens event facility, with revenues raised to date in excess of$110,000. In addition, HIVM was awarded a State of Hawaii grant-in-aid of$425,000 in 2016 for infrastructure development. _.} E) REASONS FOR THIS TIME EXTENSION REQUEST HIVM is an all-volunteer organization whose formation, existence, and mission is singularly focused on bringing this Project to fruition for the benefit of veterans and veteran families, as well as other gap group seniors, in a county where they have been underserved. HIVM has diligently made good faith efforts to move this project forward as noted above in Section D- Status of Development. HIVM acknowledges it has been remiss in compliance with three of the COZ conditions, Condition C (completion of the Project in five years), Condition Q (providing annual progress reports to the Planning Director), and Condition R (requesting a time extension after five years), as described in Section F below. HIVM particularly regrets its error regarding Condition Q which would have caught the omissions of Conditions C and R. Affordable Senior Housing. HIVM is now partnered with EAH Inc. (dba EAH Housing/HKI Kawili LLC, a proven developer, manager, and operator of affordable rental housing to commence the implementation ) phase of the housing component. EAH/HKI Kawili LLC is finalizing a County of Hawaii Lease. HKI Kawili LLC will also be working with the County Office of Housing and Community Development to obtain HRS Section 201 H-38 status which could exempt the affordable housing development from ordinance • conditions. HKI Kawili LLC will seek Final Plan Approval upon the completion of the subject COZ amendment and extension request, and pending the securing of project financing and subsidies, expects to commence construction in 2020 for an expected duration of 18 months. CVC/CBOC. HIVM continues its discussions with the Veterans Administration and other credible providers t serving veterans to develop a one-stop location for veterans' services and an outpatient clinic. Final Plan i Approval documents were completed in 2016 with grant-in-aid monies and submitted to the Planning 'Ly.) Department where it is pending the successful outcome of this COZ Ordinance amendment and extension ) request. _ F) STATUS OF COMPLIANCE WITH RM-1 REZONING CONDITIONS Condition A. The applicant, successors or assigns shall be responsible for complying with all of the stated conditions of approval. HIVM acknowledges it has been remiss in complying with the following rezoning conditions: • Condition B (payment of required water commitment) 1 Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. • Condition C (completion of construction within five years of the date of the Ordinance) • Condition Q (submittal of an annual progress report) • Condition R(request for an administrative time extension for the performance of the conditions) HIVM takes responsibility to comply with all other stated conditions of approval and will ensure compliance from any successors, until such time when Leases are conveyed to the successors. Condition B. The required water commitment payment shall be submitted to the Department of Water Supply in accordance with its "Water Commitment Guidelines Policy"within 180 days from the effective date of this ordinance. • The water commitment payment has been paid by HIVM for the CVC/CBOC project on TMK: 2-4- 057: 29 and 31, as specified in Department of Water Supply letter dated June 9, 2017 (Exhibit 15). • The affordable housing development project water commitment payment.for TMK: 2-4-057: 30, as specified in a Department of Water Supply letter dated May 16, 2017 (Exhibit 16) will be the responsibility of EAH/HKI Kawili LLC. EAH/HKI Kawili LLC requests that payment be made payable upon securing financing and prior to project construction. Condition C. Construction of the proposed improvements shall be completed within five (5)years from the effective date of this ordinance. Prior to construction, the applicant, successors or assigns shall secure Final Plan Approval for the proposed development from the Planning Director in accordance with Section 25-2-70, Chapter 25(Zoning Code), Hawaii County Code. Plans shall identify all existing and/or proposed structures, paved driveway access and parking stalls associated with the proposed development. Landscaping shall also be indicated on the plans for ( . the purpose of mitigating any adverse noise or visual impacts to adjacent properties in accordance ( _ with the requirements of Planning Department's Rule No. 17 (Landscaping Requirements). The s applicant shall comply with landscaping requirements for RM zoning. The Applicant requests a change in the project construction completion time from five (5) years to ten (10) years. The Applicant HIVM and its successor, HKI Kawili LLC, are bound by its MOU, yet both entities are seeking separate funding sources. Thus, commencement and completion of construction is dependent on the successful financing of each respective development. • Final Plan Approval documents for the CVC/CBOC on Parcel 29 have been submitted to the Planning Director, however, approval is pending the successful approval of the subject request. • Final Plan Approval documents for the Housing component on Parcel 30 will be submitted by HKI ` Kawili LLC following the approval of the subject request, and in consultation with the Office of Housing and Community Development as part of the HRS Section 201 H process. t Documents for both CVC/CBOC and Housing projects will comply with Section 25-2-70, Chapter 25, Hawaii County Code and the RM zoning district. 8 f Amendment to Change of Zone Ordinance No.07-26 T} Hawaii Island Veterans Memorial,Inc. , Condition D.All driveway connections to Kawili Street, Kapiolani Street and Ululani Street shall conform to Chapter 22, County Streets, of the Hawaii County Code. The Projects' driveway connections are at Kawili Street, Kapiolani Street, and Ululani Street. The Kawili Street driveway will serve both Housing and CVC/CBOC, and was designed, and constructed in late 2016. Driveway connections at Kapiolani Street and Ululani Street will serve the Housing project and will be • ) prepared by HKI Kawili LLC. All driveway connections will be in conformance with Chapter 22, County Streets, of the Hawaii County Code. Condition E. The applicant shall provide full improvements to the entire frontage along Kapiolani "^) Street consisting of, but not limited to, pavement widening with concrete curb, gutter and sidewalk, drainage improvements, and any required utility relocation, meeting with the approval of the Department of Public Works. HKI Kawili LLC will provide engineered plans to meet frontage requirements for Kapiolani Street in • ) accordance with Department of Public Works requirements. Condition F. The applicant shall also install street lights and traffic controls as required by the Traffic Division, Department of Public Works. The applicant shall be responsible for the design, ) purchase, and installation of such devices. ; ) In a recent verbal consultation between HIVM and the Department of Public Works, DPW staff determined • ) that entrance lights and traffic control measures would not be required for this project. Street lights and -LL traffic controls already exist at the Kawili/Kapiolani intersection which is within close proximity to the projects access driveways at Kawili Street and Kapiolani Street. The Applicant requests the removal of } Condition F. Condition G.A Solid Waste Management Plan shall be submitted to the Department of Environmental Management for review and approval prior to the issuance of a Certificate of } Occupancy. Solid waste management plan(s)for the CVC/CBOC and Housing components will be submitted by HIVM " and HKI Kawili LLC, for their respective projects, to the Department of Environmental Management prior to ,` occupancy, as required. • Condition H.All development-generated runoff shall be disposed of on-site and shall not be directed toward any adjacent properties. Engineering plans for both CVC/CBOC and Housing components will address development-generated ✓� runoff. • ) Condition I.A drainage study shall be prepared by a licensed civil engineer and will be submitted to the Department of Public Works prior to issuance of a construction permit.Any recommended drainage improvements, if required, shall be constructed meeting with the approval of the Department of Public Works prior to receipt of a Certificate of Occupancy. 9 Amendment to Change of Zone Ordinance No.07-26 r Hawaii Island Veterans Memorial,Inc. l C • A preliminary drainage study for the Property was prepared during the Project's original design phase. Subsequently in 2016, a detailed drainage study for Parcels 29 and 31 was approved by ( \ the Department of Public Works and implemented in final grading for the Kawili Street driveway construction. t.. • HKI Kawili LLC will provide engineered plans for Parcel 30 prior to construction of the Housing component. r Condition J. All earthwork activity, including grading and grubbing, shall conform to Chapter 10, /- Erosion and Sedimentation Control, of the Hawai'i County Code. (Rough grading of the entire Property was completed in 2007 and final grading of the CVC/CBOC parcel was completed in December 2016 in accordance with County requirements. Both CVC/CBOC and Housing components will comply with Hawaii County Code, Chapter 10 for review and approval by the Department of Public Works. Condition K. Sewer lines shall be installed within the development to connect with the County's sewer system, meeting with the approval of the Department of Environmental Management, prior to the issuance of a Certificate of Occupancy. HIVM completed the installation of sewer stubs from the main sewer line along Kawili Street to serve both �. CVC/CBOC and Housing projects after receiving approval from the Department of Environmental Management. Sewer lines for both projects will connect to the Kawili Street stub-outs prior to the issuance of a Certificate of Occupancy for each respective project. Condition L. In lieu of paying the fair share contribution,the applicant shall develop a multipurpose facility. HKI Kawili LLC is proposing a Community Center for tenant and community use. The building will include spaces for a common area lounge, coffee bar, fitness room, and property management offices. The Center ( , will also feature a multi-purpose room and (non-commercial) kitchen to provide space for larger tenant ( social and/or educational activities. The multi-purpose room opens onto a large sheltered lanai and outdoor area. The multi-purpose room and its adjacent indoor/outdoor area will also be available to community groups for occasional use, subject to House Rules and maximum occupancy requirements. The HKI Kawili LLC Community Center facility would be smaller than the original 15,000 SF multipurpose and dining facility proposal by HIVM. Condition M. Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for (, imposition of exactions or the assessment of impact fees, conditions included herein shall be credited towards the requirements of the Unified Impact Fees Ordinance. The Applicant acknowledges this condition and notes that HKI Kawili LLC is pursuing Section 201 H status with the County Office of Housing and Community Development. K io Amendment to Change of Zone Ordinance No.07-26 Hawaii Island Veterans Memorial,Inc. Condition N.To ensure that the Goals and Policies of the Housing Element of the General Plan are implemented,the applicant shall comply with the requirements of Chapter 11,Article 1, Hawaii County Code relating to Affordable Housing Policy. This requirement shall be approved by the Administrator of the Office of Housing and Community Development prior to Final Plan Approval for any new residential structures, or prior to issuance of building permits if the site is developed with single-family dwellings. EAH /HKI Kawili LLC specializes in the development, management, and operation of affordable rental housing and housing for diverse communities. The proposed rental apartment housing units exceed the Chapter 11 requirements. HKI Kawili LLC has initiated consultation with the County Housing Administrator and is working to establish Section 201H status. Condition 0. Should any remains of historic sites, such as rock walls,terraces, platforms, marine shell concentrations or human burials be encountered,work in the immediate area shall cease and the Department of Land and Natural Resources - State Historic Preservation Division (DLNR-SHPD) shall be immediately notified. Subsequent work shall proceed upon an archaeological clearance from the DLNR-SHPD when it finds that sufficient mitigation measures have been taken. • An archaeological survey for the Property was completed and it's report included in HIVM's Final EA. All Project Developers will incorporate this condition into their construction documents. Condition P. The applicant shall comply with all applicable County, State and Federal laws, rules, regulations and requirements. HIVM and HKI Kawili LLC shall comply with all applicable County, State, and Federal laws, rules, regulations, and requirements. Condition Q. An annual progress report shall be submitted to the Planning Director prior to the anniversary date of enactment of the ordinance. The report shall include, but not be limited to,the status of the development and the extent to which the conditions of approval have been satisfied. This condition shall remain in effect until all of the conditions of approval have been satisfied and the Planning Director acknowledges that further reports are not required. Section F of this report is submitted to comply with Condition Q. Hereafter, HIVM and HKI Kawili LLC will submit the required annual progress reports for their respective projects until all conditions of approval have been satisfactorily completed. J l CONDITION R. An initial extension of time for the performance of conditions within the ordinance may be granted by the Planning Director upon the following circumstances: 1. The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant, successors or assigns, and that are not the result of their fault or negligence. HIVM inadvertently missed complying with Condition R and regrets its error. HVIM, however, has • successfully accomplished significant milestones since COZ No. 07-26 was approved. These include the clearing/grading of the Property and the construction of an access driveway at Kawili 11 { Amendment to Change of Zone Ordinance No.07-26 ll - Hawaii Island Veterans Memorial,Inc. `/ Street and sewer stub-outs. In addition, partnership with EAH/HKI Kawili LLC, a premiere affordable housing developer has been secured and concept plans completed. l-� '2. Granting of the time extension would not be contrary to the General Plan or Zoning Code. { ~; This affordable senior housing project is consistent with General Plan housing policies (General r Plan Section 9.3(b), (v), (w)). The Zoning Code (HCC Section25-2-46(h)(1) exempts affordable housing projects from concurrency requirements. The Section 201 H-38 Resolution grants certain exemptions from the Zoning Code, including the concurrency requirements. ( . 3. Granting of the time extension would not be contrary to the original reasons for the granting of the change of zone. The request in this application conforms with and does not deviate from the original reasons for the granting of the change of zone from Open to RM-1. 4. The time extension granted shall be for a period not to exceed the period originally granted for performance (i.e., a condition to be performed within one year may be extended for up to ( one additional year). The Applicant and its successor, HKI Kawili LLC, request a time extension change from five (5) years to ten (10) years. HIVM and HKI Kawili LLC are bound by its MOU, yet both entities are •• seeking separate funding sources. Thus, commencement and completion of construction is (' dependent on the successful financing of each respective development. 5. If the applicant should require an additional extension of time, the Planning Director shall submit the applicant's request to the County Council for appropriate action. The Applicant acknowledges this condition. Condition S. Should any of the conditions not be met or substantially complied with in a timely fashion,the Planning Director may initiate rezoning of the subject area to its original or more appropriate designation. HIVM has responsibly and persistently pursued compliance with the COZ conditions and the terms of the Lease. HKI Kawili LLC, as a successor, is poised to pursue the next steps towards development of the , affordable housing units and related improvements with preference to veterans and spouses of veterans on Parcel 30. HIVM continues to pursue a development partner for the CVC/CBOC on Parcel 29. c HIVM/Ord07-26Amendment/070518/yo I 12 l,� LIST OF EXHIBITS'' Exhibit 1 TMK Mail . . Exhibit 2 Memorandum of Understanding Exhibit 3 CVC/CBOC Site Plan Exhibit 4 HIVM's CVC/CBOC Architectural Plans Exhibit 5 Hilo Senior/Veteran's Communit Conceit Site Plan Exhibit 6 Community Center Plan', Exhibit 7 EAH: Hilo Senior/Veterans Memorial Proje Exhibit 8 HIVM Lease Agreement, August 31, 2012 , Exhibit 9 BLNR Cancellation of E0s 4014 and 4018, April 13, 2017' Exhibit 10 County Council Resolution 252-17, September 7, 2017,, Exhibit 11 BLNR Executive Order No. 4539, November 3, 201 Exhibit 12 HIVM Second Amended Lease A•reemelt a ember 3 Q 7 Exhibit 13 HKI Kawili LLC Lease Agreeme mt Exhibit 14 Governor David Ige Grant-in-Aid Letter, July 2, 20 i• Exhibit 15 DWS Water Commitment Receipt, TMK: 2-4-057;0 4. 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FOR REAL PROPERTY TAXATION PURPOSES 2 4 57 SUBJECT TO CHANGE �) SCALE: I N.=100 FT. l e r Exhibit 2 dr dum of rider t.ndhn• fl MEMORANDUM OF UNDERSTANDING EAH Inc. and Hawaii Island Veterans' Memorial,Inc. THIS MEMORANDUM OF UNDERSTANDING("MOU")is entered into as of the �l 19th day of June ,2015 by and between EAH Inc.,a California nonprofit corporation("EAH") and Hawaii Island Veterans' Memorial, Inc.,a Hawaii nonprofit corporation("HIVM")and pertains to the potential development of approximately 7.45 acres located at the corner of West Kawili and Kapiolani Streets,Hilo,County of Hawaii, (the "Land"),a portion of which is to be developed,owned and managed by EAH,or an affiliate thereof, as a potential 75-unit multifamily senior affordable rental housing project(the "Project"). •—) The primary purpose of this MOU is to establish the terms and conditions upon which HWM and its existing officers and directors will work with EAH or its designated affiliate towards development of the Project. WHEREAS, HIVM has entered into a lease agreement with the County of Hawaii for the Land(the"Lease Agreement') dated April 8, 2005; WHEREAS, the terms of the Lease Agreement include a lease term of five(5)years with renewal options of five (5) year increments, and payments of$1.00 per year for the term of the Lease Agreement; WHEREAS,the original concept on the part of HWM for development of the Land included a Combined Veterans Service Center(the"Center")along with an affordable senior rental housing benefitting veterans and their surviving spouses; WHEREAS, the HWM Board of Directors(the"HIVM Board")has subsequently determined that it is in the best interest of HIVM to assign responsibility for the development of ) the Project to EAH,and said Project will be sited on a portion of the Land comprising approximately 3.1 acres,while HIVM retains control of the balance of the Land for future development of the Center by HIVM; WHEREAS,in order to facilitate the overall development concept,it is understood that the Land shall be consolidated and re-subdivided to create either separate legal parcels,or alternatively,a Condominium Property Regime(the"CPR")creating separate condominium estates reflecting the respective areas for development of the Project(the"Project Site") and the ,tel Center; WHEREAS,to advance the development of the Project notwithstanding development ) plans of the Center,.HIVM awards to EAH,or its designee,the right to enter into a sublease agreement for the Project Site with HIVM,subject to County approval if required,or a ground lease of the Project Site directly with the County(the"Project Lease"); ,J 1 WHEREAS, to facilitate the financial feasibility of the Project, the Project Lease terms shall include a lease period of not less than 65 years and payments by the Iessor of$1 per year; WHEREAS,EAH or Hui Kauhale,Inc. (HKI),a Hawaii nonprofit corporation affiliated with EAH,or a limited partnership with HKI as the managing member of a limited liability - company which shall act as the general partner of that limited partnership,shall be the beneficiary of the Project Lease; NOW THEREFORE,the parties hereto agree to the following; STATEMENTS, COVENANTS,AND PROMISES OF HIVM HIVM hereby agrees that it will as soon as practicable following the full execution of this MOU, hold a meeting of the HIVM Board and duly approve the following corporate actions: 1. Ratify the execution of this MOU by the President of the Board; 2. Work with EAH in conducting exploratory discussions with the County of Hawaii and/or State of Hawaii to obtain approval of the Project Lease to EAH(or designee); 3. Work with EAH's design consultants (architect and/or civil engineer)on development of a conceptual master plan that will be intended to define portions of the Land attributable to the Project Site and Center; 4. Coordinate with EAH in conducting exploratory discussions with the County of Hawaii and/or State of Hawaii to obtain necessary consents and approvals to effectuate the aforementioned land consolidation and re-subdivision or CPR to create r parcels for subsequent development; 5. Cooperate with EAH in developing the necessary easements and shared use agreements,if applicable,for any utilities,ingress/egress areas and any other common areas that may be shared between the Project and Center; 6. Authorize EAH to provide a copy of this MOU to any interested party as evidence of the H1VM Board's good faith approval to transfer the control of the Project to EAH; 7. Provide to EAH or assist in obtaining any existing site information and any other due i- , diligence materials regarding the Land,Project,or Center; and 8. Authorize EAH and its representatives to access the Land at all reasonable times on 48 hour notice to HIVM and specifically authorize EAH to perform,at its own cost, any physical inspections(including,without limitation,invasive inspections)it deems necessary with respect to the Land,including,without limitation,title,environmental and physical inspections but not to unreasonably interfere with the operation of the Project; 2 • In support of the transfer and for EAH's reliance, HIVM makes the following representations: 1. The undersigned is the President of HIVM and has duly executed and delivered this Agreement in such capacity on behalf of HIVM; 2. To the undersigned's knowledge and belief,the execution and delivery of this agreement and the performance and consummation by HIVM of the obligations and transactions contemplated hereunder will not constitute a breach or violation of,or a default under,the organizational documents or agreements by which such Corporation or the Project is bound; 3. It is understood and agreed that HIVM Board shall continue to be responsible for maintenance of the Land until the Project Lease discussed herein is effectuated; and 4. To the undersigned's actual knowledge, there are no hazardous materials on the Land. STATEMENTS.COVENANTS AND PROMISES OF EAH EAH by its execution hereof makes the following covenants for the reliance of HWM: 1. EAH desires to accept responsibility to sponsor and oversee the development, ownership and property management of the Project; 2: Subject to its completion of due diligence review of all Land and Project documents and approval of the staff recommendation by the EAH(or HKI)Board,EAH agrees to pursue development of the Project subject to on-going feasibility considerations; 3. EAH agrees to keep the HIVM Board informed of its progress through all the Project phases(feasibility through pre-construction)in a manner and frequency to be mutually agreed upon by EAH and HIVM; 4. Subject to EAH Board approval,EAH covenants to sponsor the Project and operate the Project as affordable rental housing in accordance with all governmental (. requirements;provided, that, should EAH determine that the Project is infeasible for any reason, the Project shall continue under HIVM control and management and the terms of this MOU shall be terminated; 5. In the event of termination of this MOU,HIVM shall not be responsible for the predevelopment costs incurred by EAH;and 6. To foster the continued recognition of the prior HIVM Board Members and Officers for their work in founding,sponsoring and overseeing the construction and operation of the Project. • 3 CONDITIONS AND CONTINGENCIES FOR EAH'S ASSUMPTION OF RESPONSIBILITY FOR THE DEVELOPMENT AND OPERATION (((:(( EAH's obligation shall be subject to the following conditions and contingencies, each of which shall be subject to EAH's satisfaction in its sole and absolute discretion:. 1. Title. EAH shall have the right to approve title interests,service contracts and leases r in and to the Project,including,without limitation,the right to review a preliminary title report and all underlying documents referenced therein,and an ALTA survey of the Project. 2. Physical Condition of the Land. EAH,and or its authorized representatives,shall have the right to conduct physical inspections of the property provided that at least 48 ( hour notice is provided to HIVM. Inspections may include destructive testing to the Land and if done,EAH shall restore the areas of destructive testing to the same condition as immediately prior to testing conducted. EAH shall review any physical inspection reports and all Project and HIVM organizational documents associated with HIVM's ownership and operation of the Project during the feasibility period as defined below. EAH agrees to keep the information provided by HIVM confidential and limit review to EAH and necessary attorneys,consultants, lenders and investors. 3. Feasibility Review: EAH shall have one hundred twenty(120)days following the effective date of this MOU(the"Feasibility Period")to review the Land documents, any physical inspection reports, and any related Project documents(the"Feasibility Review"). EAH shall also have the right to conduct necessary third party reports on the Land to assess feasibility. Upon the written request of EAH prior to the expiration of the Feasibility Period,EAH shall have the right to extend the Feasibility Period for two(2)successive,thirty(30)day periods,as reasonably needed to complete its Feasibility Review. In the event that EAH elects to not proceed hereunder during the Feasibility Period,EAH shall send notice thereof to HIVM,and neither EAH nor HIVM shall have any further obligation under this MOU. 4. Financing Contingencies. EAH's obligations hereunder are also expressly conditioned upon EAH's determination that financing of the project is financially feasible(in its sole discretion). In such event,EAH shall provide HIVM a notification to proceed(the"Notice to Proceed"). The Notice to Proceed shall constitute an affirmative waiver of both(a)the Feasibility Review,above(if not previously waived) and(b)this Financing Contingency that may take into account such factors as: i. Financing under the Hawaii Housing Finance and Development Corporation Rental Housing Trust Fund loan; ii. Low Income Housing Tax Credit and/or Hula Mae Multi-Family(Tax Exempt Bond)reservations, iii. Project-Based Vouchers from the County of Hawaii in an amount deemed to be sufficient to ensure Project feasibility; and 4 iv. EAH's or HII's receipt of any other financing sources,rental subsidies or. �l approvals as may be deemed necessary to complete the Project's financing. EAH shall have one year(35G days)from the execution hereof(the Financing Period")to review,obtain,satisfy or waive the Financing Contingencies;provided , - that,if the Feasibility Period is extended,as provided above,the Financing Period ' shall automatically be extended for an equivalent period. At any time during the Financing Period,EAH may notify HIVM that it is waiving the remainder of the Financing Period and Feasibility Period,if applicable, by providing HIVM with the Notice to Proceed and in such event,both parties agree to cooperate in fully effecting the transfer of the Project Site to EAH(including without limitation, obtaining any governmental agency or other third party approvals as may be required). EAH may at any time during the Financing Period elect to terminate this MOU by delivering written notice thereof to HIVM and thereupon this MOU shall be null and void. ADDENDUM A ) Attached Addendum A shall be made part of this MEMORANDUM OF UNDERSTANDING and, if accepted, shall be acknowledged by all parties. 5 SCOPE OF MEMORANDUM OF UNDERSTANDING. ( . ( , This MOU is intended to be a statement of the terms of a proposed transaction. It is ( subject to the final negotiation,execution and delivery of legal documents by EAH and HWM reflecting with greater specificity the terms and conditions of agreement and negotiated in good . ( faith. Provided that, if any party is found to have breached a duty to negotiate in good faith,the other party hereby(a) agrees that its damages for such a breach shall be limited to its out-of- pocket costs incurred in conducting negotiations pursuant to this MOU,and(b)waives any other claim which it may have for damages arising from or related to the breach of any duty to negotiate in good faith. This MOU shall expire if not executed by both parties by 5:00 p.m. HST on [ ,2015]. ( ' In accordance with the above covenants,agreements and representations,the undersigned have executed this MOU in the capacity designated below and on behalf of their respective corporation. - EAH INC., a California nonprofit corporation By: Date:.-- Marian Gushiken Authorized Signatory • HAWAII ISLAND VETERANS'MEMORIAL,INC. a Hawaii nonprofit corporation 4 ( ,�. . (�: Z 2 r By: Date: President ( CAUsorsmwnan.goehikraIDuktopWapehnaBig Isk VostHIVM MOU Drat 3.docx 6 ( II � Illi ADDENDUM A To MEMORANDUM OF UNDERSTANDING Between EAH Inc.and HIVM . ADDENDUM A to a Memorandum of Understanding dated June 19, 2015 by and between EAH Inc. ("EAH") and Hawaii Island Veterans Memorial, Inc. ("HIVM"), pertaining to EAH developing and operating 60-75 units of affordable senior independent living rental housing with a preference for military veterans and their surviving spouses, and other eligible senior residents of Hawaii("Project") on land currently leased by HIVM from the County of Hawaii located ,fl between Kapiolani and Ululani Streets, adjacent to Olena and Ululani Streets, in Hilo, Hawaii. 1. Land Area: Approximately 5.6 acres of fully entitled state land currently identified as TMK ) 3:2-4-57-30(as outlined in Exhibit 1)that was transferred at HIVM's request through a ' ) Governor's Executive Order(EO) to the County of Hawaii for HIVM to accomplish this project. This parcel is part of approximately 7.25 acres overall as shown in the attached Concept Plan in HIVM's approved FEA dated July 2006. ) 2. Project Entry Locations: EAH will develop a site plan consistent with the driveways for ingress and egress as shown on HIVM's site Concept Plan(Exhibit 1) in order to remain consistent with the Traffic Assessment dated June 2005 included in the Final Environmental Assessment(FEA). Together with additional points of access off Kapiolani and Ululani ) Streets in addition to a common use entrance off Kawili St that HIVM will construct,these entry points will ensure minimal impact from the housing project to Kawili Street during peak traffic hours. 3. Easements: Proposed points of ingress and egress to the EAH Project noted as "Entry I" and "Entry 2"are outside of the land identified for the Project and are located on land that HIVM or its successors will continue to lease.Therefore, HIVM will ensure EAH is provided ) permanent easements for ingress and egress at these access points as shown in the(green) marked areas on Exhibit 1. In return,EAH shall provide HIVM and/or its successors an easement for emergency exit purposes along one of its driveways; and also agrees to provide _ some limited overflow parking pursuant to a future agreement that will be mutually agreed upon and designated prior to the start of construction of the housing project. 4. Veterans Preference: Military veterans and spouses of deceased veterans who are Hawaii residents shall be given priority and preference to rent available units, subject to income and ' qualification requirements. 5. Median Income Qualifications: Both parties recognize and agree that the proposed project is aimed at serving those with incomes at or below 60% of HUD AMI. However, since a fully disabled veteran on social security or 100% VA disability pension will earn slightly more than 60% of AMI, HIVM desires that 6-8 units (or 10% of the total of units, whichever is C less), be made available with a preference for those veterans or spouses of deceased veterans f` earning up to 80% of AMI. If no one in that category is qualified to occupy such a unit, then that unit may be rented to other seniors whose income is at or below 80% AMI. HIVM recognizes that for EAH to meet this condition, a rent comparability and market study must be conducted to verify market area(County and state) since HIVM believes there are many qualified elderly state residents on Oahu who would like to come home to the Big Island if affordable housing of this nature were available)to support this. HIVM will work with EAH during the marketing phase of the Project to provide outreach to veterans' organizations to C assure ample coverage of the intended market area, and trusts EAH to work in good faith to attempt to meet this objective. (= 6. Reimbursement of Project Expenses: EAH recognizes HNM's accomplishments in obtaining a County approved FEA and all preliminary development actions for this parcel, to include partial grubbing, rough, appropriate zoning, water, utilities, and sewer entitlements, and completion of a landscape plan. In return for consigning their lease to EAH and assistance in obtaining a new long term renewable Iease for the land from the State of Hawaii or County of Hawaii,EAH shall reimburse HIVM for the pro-rated share of all preliminary development expenses that can be documented as having applicability to the housing component. The amount of these hard and soft development costs to be reimbursed will be ( mutually agreed upon following the joint signing of this agreement and will be payable in full at the time of the Project construction loan closing. Future pre-development expenses (- incurred from the date of this MOU, and intended to be shared by EAH and HWM, shall also' be mutually agreed upon, in writing, after the joint signing of this agreement. { 7. Development Advisory Role: HIVM will continue to work in partnership with EAH and will advise and assist EAH as desired until the housing project is approved and operating. Thereafter EAH will assign HNM an advisory role to be mutually agreed. Acknowledged&Approved: t � EAH INC., a California nonprofit corporation By: q1.1"4 - Date: 91P-/ /6' (. _ Marian Gushiken Authorized Signatory HAWAII ISLAND VETERANS' MEMORIAL,INC. a Hawaii nonprofit corporation `2--/� By: Date: 2 /�4=. 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PROJECT CH. 12 A0 \\\\ PRPROJECTARARUI_ SEF PROJECT PLANS KH SHEET CONIENI3: C SITE PIAN • 'v__ cfr- t oaE:August 24,2016 Cl. SHEET: O SITE PLAN ,__Ac1 L. sGLLE:3(32'-1'-0• Exhibit 4 HIVM's CV ':OC Architectural Plan' - - - ---- --- - --. -- ----- nr--, w-)r- ( • .-sr-,r , ( v- )n.r-), )( )( ); )r )fls," ) ), )"c '! . ) , 1 . .1.. • ' .:'..:. 4•- .1,!.. 1 1 q : :4,-;.• 1.... V.: 1..: 0 , ..-n 9 6 P 0 1 W o -17 -L Q 4 2 -• • F--_,--"----0 Er—.111 Di - --11 ' Irli.,:"=,'....:.,...:...'... OI, In 1 MIL D la',7i,D II IF I I 1 --- -7- 0000000 r" 011111 ri ; 1 • 6 11 C roi 6 CD' °Duo op RHBEE 8H 1 .,,. 1 1 l',, ci) 00 qo OID 14';.: 4 IMINT D 20 D r lil I D 0; 00 00 00 1 I 0000 , "--------- . , 00 00 00 1 g Di AI ® _ 4 1 NMI D :1- ,.:., F,.. • :,,i, : rini . 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KAWILI STREET *NEI 76L .', 19", ,05 z HILO,HAWAII,96720 1 lq 1 1 T2i. 1 .7 1 Ig;./. 9%Dee TMK 930 2457:030 ,. .. .m......-.-., -, :_ • • • • \I\I 111711 l 1 - -- r - I:8 ,ET • • I �J I 1 1 1 1 1 1 1 1 11 I I 1 1 1 1 I I 1 I I I 1 1 1 111111111111111111111 11111111 I 11 �- / r r 1 1 1 1 1 1 I 11111111111111111111111111111111111111111111111111i i • • • • • r; Exhibit 5 Hilo SeniorN : eteran s Co LL mmunit Concept Site Plan - - ULULANI STREET , -...•: ••, _ . .', ..,•••,-,, .:: . - ,--.7,,0.:,staL- 3.7,:, __r- ...A- ,,-,,,,,.4.7-1.' j i 7 .::...,...,:.,..;,...,. ..... . '... ,,-.,.. ._, • ,,q.-.0! . ',.-:1 lif ! I ; I li TRADEWINDS .::,;......,,,.1 . . , . ' . • 7 ' • ' ' ' - 1 • '' PARKING 3 : ', -."..,--,,.• H 1 I fr'77q FENCE 'L'INE: . ' ' d . , . FIRE HYDRANT ' .•,;-,:-,,. .'i'.':: •: kkj .. , ..,1'...,1 I ,. '( , inn, liT';';". '1 / , '4'.'...- ,--. ELEVATOR 2 /./ ,..,,:s,g,...,: ...., ,1 ;,.1•1 ..... I 3 , ..., . ,(300,.p.,RADIUS) ..::-1 . ,..._„.. 77. -.,. . 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': .. ff. , ,, T E 0 ) " ..... ...`.1.. . - •';'7; :":7,::,:: ;Z ,_.. 1111111111111 -••••:' .:'-'' -, , •• - , ,--„ HILO SENIOR / VETERAN'S COMMUNITY - CONCEPT SITE PLAN MAY 10,2018 • • • HILO VETERAN'S COMMUNITY 5/10/2018 UNIT TABULATION PROPOSED UNIT TABULATION PLEX PER BLDG #OF BLDG SUB-TOTAL 2-BEDROOM 4 lex 1 bld 1 units P g 3 units 12-plex 4, 48 units 1-BEDROOM 4-Plex 4 bldg 16 units units PROPOSED TOTAL UNITS 68 units PROPOSED LAUNDRY ROOMS - 4 rooms PARKING TABULATION : I- , PROPOSED PARKING TABULATION ACCESSIBLE STALLS STANDARD STALLS - '3 SUB-TOTAL PARKING 1 for the residence/EAH 47 2 49 stalls Guests/Office worker/Neighbor overflow • PARKING 2 for the office worker/EAH 39 2 41 stalls guests PARKING 3 for the residence/EAH guests 33 2 35 stalls PROPOSED TOTAL PARKING STALLS 125 stalls REQUIRED/REQUESTED PARKING TABULATION OWNER-REQUESTED DWELLING STALLS(1 stall per unit) 68 stalls REQUIRED GUEST STALLS(10%) 7 stalls REQUIRED MULTI-PURPOSE STALLS(1 stall per 300 S.F.) 26 stalls OWNER-REQUESTED SHARED STALLS 16 stalls REQUIRED/REQUESTED TOTAL PARKING STALLS 117 stalls Exhibi Community en # V it ...ik III rk,)°%Qooa�dc09o,oa,1 ggeomo -- ,_ A 0,. 1 -TOIL •!LET �wi illsi�.■i� sIIIIIIrIwww■ COFFEE BAR _ (J ■ t, t of �-'� � I � �wlr■n■�rnlllllli■r __ >\a LOSET s4..r4ea zr� h.�w��1■1��■1a■P:wMMt F� .1M4:1:i'1 114: G,XT.• [A]eek 0 il��wiu•Mi�iui•�awIIIM �p 7C=:::-::=:C,: A G ��■■■ww■■w■■■www� EOFFBE CID .,�.,��.t..t.. 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OF,:: 11.11.....1 50-0x45-O [[[■��' •''' Fl N SS =••T• ICE OFFI a 1 1 — -I 111111111•1111111111 - - -_ — © i Il. x11'-2' 10'1'x 13...E ®3 Ilii/'■ _ >@ - ■iY�Iw <_— VMwMwMAIRwrltiww+rwwng..w.w..vy FO ,..0„, — — — — — I — — — — — — , '/ a 20•-0"SETBACK LINE 11111 1111611& AIIIMk r • • o PROPERTY LINE .4,0 \\\ \\\ \\\ I \\ \\\ ( \\ \\\ Scale:3/32"=V- ile Hilo Veteran's Community THIAIIM O,24 53Community Center Plan TMLO, :2�-057:030 Architect:DESIGN PARTNERS INCORPORATED PRELIMINARY CONCEPT DEVELOPMENT MARCH 09,2018 Exhibit 7, EAH: Hilo enior 1 Veterans Memorial Project = Project Concept EAH HOUSING I ( r�( `i i A S \J OF SERVICE HILO SENIOR/VETERANS MEMORIAL PROJECT Project Concept Background EAH was approached by a Hawaii Island nonprofit organization seeking a developer partner to assist in completing their vision for the co-location of a veterans' center and community-based outpatient clinic, along with affordable senior housing. The Hawaii Island Veterans Memorial, Inc. (HIVM) is a 501 (c)(3) organization administered by a volunteer Board with a mission to establish a veterans center and affordable housing in Hilo serving veterans and their families. The original concept was to develop a one- stop Veterans Center that consolidates services to veterans, while providing affordable senior housing to veterans and surviving spouses of deceased veterans. Through the State of Hawaii and County of Hawaii, HIVM has secured a -7.5 acre site for this multi- service Center and continues its efforts to secure funding for the Veterans Center but recognized the need to partner with an experienced affordable housing developer. EAH will develop an affordable senior rental development serving senior households with a preference to veterans and their surviving spouses on approximately 5.5 of the 7.5 acre site. Site Pursuant to Executive Order 4539 dated November 3, 2017, the State of Hawaii has set aside the referenced site to the control and management of the County of Hawaii for the expressed use of a combined veterans center and affordable housing with preference to veterans and spouses. In turn, County of Hawaii Resolution 252-17 authorized the County to enter into ground lease negotiations with EAH's affiliate to pursue a 65-year lease term, which is currently underway. Site location is at the junction of two main roads in a prime Hilo locale, adjacent to the University of Hawaii at Hilo campus, local high school and two churches, as well as commercial uses nearby. The infill site is readily served by two main roads and infrastructure. Site is currently zoned as Residential Multifamily (RM-1) which permits multi-family residential development. Project Concept The senior housing development (62 years or older) of approximately 68 units will serve households at or below 80% Area Median Income (AMI), with approximately 43 units targeting households at or below 50% AMI in order to qualify for project-based 1 vouchers, and 4 units targeting 30% AMI per State funding requirements. Preference for all units shall be given to veterans and spouses of deceased veterans. One-bedroom units are contained in low-rise single-story fourplex buildings and two- story building clusters, arranged in a village concept. Onsite parking and four central laundry facilities will also be provided. A central Community Center will include spaces for a common area lounge, coffee bar, fitness room, and property management offices. The Center will also feature a multi-purpose room along with (non-commercial) kitchen to provide space for larger tenant social and/or educational activities. The multi-purpose room opens onto a large sheltered lanai and Service Court, or outdoor area where larger events could be accommodated. The multi-purpose room and its adjacent indoor/outdoor area will also be available to community groups for occasional use, subject to House Rules and maximum occupancy requirements. The site will be fully landscaped with meandering walkways connecting all of the buildings and the Community Center. Tenant gardens will be sited at the various housing clusters to encourage social interaction and provide residents the opportunity to grow their own fruits and vegetables. At key locations garden benches will be sited along the walkways and within a passive garden area for residents' respite and reflection. EAH Housing As a nonprofit developer and manager of affordable housing, the mission of EAH Housing is to create healthy communities by managing, developing and promoting quality affordable housing. EAH is one of the oldest and experienced nonprofit development/management companies in the western United States. EAH has developed over 7,000 units in California and Hawaii. The current management portfolio consists of nearly 10,000 units and approximately 25% of these units serve senior households where the median age is 72 years. EAH Housing maintains a strong focus on seniors where the operations philosophy goes beyond conventional property management. EAH's Aging in Place philosophy seeks to couple affordable housing with opportunities for culturally sensitive, health and supportive services that provide our residents with the ability to remain for as long as possible where they are most comfortable: at home. Once the Veterans Center is developed, the complementary location of affordable senior housing and the Center will provide a unique opportunity that is consistent with EAH Housing's goals to create well-designed, secure communities where residents thrive by all measures of well-being: physically, mentally, socially, financially, and spiritually. X:\ACTIVE PROJECTS\Hito-HI Isle Vets Memorial\Feasibility\Project Description 6-19-18.doc 2 Exhibit 8 HIVM Lease Agreement, August 31, 2012 • ZY Oi William P.Kenoi Mayor '' Nancy E.Crawford L: ' Director Deanna Sako • __ • Deputy Director ok *of'+►''M• �`, Kenneth J. VanBergen Property Manager • County of Ilawai`i Finance Department 25 Aupuni Street,Suite 1101 • Hilo,Hawaii 96720 (808)961-8234 • Fax(808)961-8248 September 4, 2012 TO : Bob Williams Hawai`i Island Veterans Memorial, Inc. P.O. Box 827 Pepeekeo, Hawai`i 96783 FROM: Iwaloa Chilson County of Hawai`i RE : Lease Agreement between the County of Hawai`i and Hawaii Island Veterans Memorial, Inc.; TMK(3)2-4-057:029,2-4-057:030, and 2-4-057:031 COPIES/ITEMS DATE DESCRIPTION 1 August 31, 2012 Copy of fully executed Lease Agreement TRANSMITTED FOR: ® Information and Files ❑Approval ❑ Signature and Return ❑ Review and Comments ❑ Signature and Forwarding As Noted Below ® See Remarks Below ❑ Pursuant to Your Request 0 Filing and Return(Envelope Enclosed) REMARKS: Enclosed is a copy of the fully executed Lease Agreement for your records. Enclosure Hawai'i County is an equal opportunity provider and employer. 17' LAND COURT REGULAR SYSTEM Return By Mail X Pick-Up l , To: OFFICE OF THE.CORPORATION COUNSEL (CTM) 333 KILAUEA AVENUE,2ND FLOOR HILO,HAWAII 96720 TOTAL NUMBER OF PAGES: TITLE OF DOCUMENT: LEASE AGREEMENT PARTIES TO DOCUMENT: LESSOR: COUNTY OF HAWAII 25 Aupuni Street Hilo,Hawaii 96720 LESSEE: HAWAII ISLAND VETERANS MEMORIAL,INC. P.O. Box 827 Pepe'ekeo,Hawaii 96783 AFFECTS TAX MAP KEYS: (3)2-4-057:029, 4820-2891-4191/5-10-12 (3)2-4-057:030,AND(3)2-4-057:031 4812-3239-0415.1 LEASE AGREEMENT THIS LEASE AGREEMENT, made this i day of 4151A6f , 2012 (the "Effective Date"), by and between the COUNTY OF HAWAII, a municipal corporation of the State of Hawai`i,whose principal place of business and mailing address is 25 Aupuni Street,Hilo, Hawai`i 96720, hereinafter called the LESSOR, and HAWAII ISLAND VETERANS MEMORIAL, INC., a community-based nonprofit veterans organization, whose mailing address is P.O. Box 827, Pepe'ekeo, Hawai`i 96783, hereinafter called the LESSEE. WITNESSETH: That the Lessor does hereby lease unto the Lessee the premises described as Tax Map Keys: (3) 2-4-057:029 containing an area of 0.821 acre,(3) 2-4-057:030 containing an area of 5.615 acres, and(3) 2-4-057:031 containing an area of 41,412 square feet (collectively the "demised premises"),more particularly described in Exhibits "A-1", "A-2" and "A-3", and delineated on Exhibit "B", all of which are attached hereto and made a part hereof by reference. To have and to hold the demised premises during the period August 31, 2012 through August 31, 2017 . A. THE LESSOR COVENANTS AND AGREES WITH THE LESSEE: I. Quiet Enjoyment. That the Lessor hereby covenants and agrees with the Lessee that upon the observance and performance of the covenants,terms, and conditions hereof on the part of the Lessee to be observed and performed,the Lessee shall and may have, hold, possess, and enjoy the demised premises for the term hereby demised, without hindrance or interruption by the Lessor or any other person or 4812-3239-0415.1 -2- persons lawfully claiming by,through, and under it,except for the Lessor's right- of-entry to make repairs, improvements, and inspections as set forth herein. 2. Term. The initial term of said lease shall be for a period of five(5)years from the Effective Date, unless sooner terminated by either the Lessor or Lessee pursuant to the provisions in paragraph 32, Breach and Termination, herein. Subject to Lessee's compliance with the terms of this Lease Agreement,the parties may extend the initial lease term for those parcels that have commenced construction on the veterans center or veterans housing on that parcel for additional 5-year terms,upon conditions acceptable to both parties. 3. Rent. The Lessee hereby covenants and agrees to pay the sum of ONE DOLLAR ($1.00) per year for the term of this lease. B. THE LESSEE COVENANTS AND AGREES WITH THE LESSOR: 1. Covenant Against Discrimination. During the performance of this lease,the Lessee agrees as follows: (a) The Lessee shall comply with all applicable requirements set forth in Federal and State laws and regulations relative to Title VI of the Civil Rights Act of 1964,as amended, which provided for nondiscrimination in Federally-assisted programs. (b) The Lessee shall not discriminate against any employee or applicant for employment because of race, ancestry/national origin,religion, color, disability, age, marital status,military status, veteran's status, sexual orientation. lactation,arrest and court record, citizenship,or any other 4812-3239-0415.1 -3- classification protected by State or Federal law. The Lessee shall assure that applicants are employed and that employees are treated during employment without regard to race, ancestry/national origin, religion, color,disability, age,marital status,military status, veteran's status, sexual orientation, lactation, arrest and court record, citizenship, or any other classification protected by State or Federal law. Such action shall include, but not be limited to,the following: employment,upgrading,demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training. The Lessee agrees to post in conspicuous places notices to be provided by the Lessor setting forth the provisions of the nondiscrimination clause. (c) The Lessee shall in all solicitations or advertisements for employees placed by or on behalf of the Lessee, state that all qualified applicants shall receive consideration for employment without regard to race, ancestry/national origin, religion, color,disability, age,marital status, military status,veteran's status, sexual orientation, lactation,arrest and court record, citizenship, or.any other classification protected by State or Federal law. (d) noncompliance the event of the Lessee's nonco p liance with the nondiscrimination clauses of this lease,this Iease may be canceled or suspended in whole or in part and the Lessee may be declared ineligible for further County contracts until such time that the Lessee by satisfactory evidence,in good faith, ceases such discriminatory practices or procedures. 4812-3234-0415.1 -4- (e) The County may direct the Lessee to submit a statement in writing signed by an authorized officer, agent, or employee that the signer's practices and policies do not discriminate on the grounds of race,ancestry/national origin, religion,color, disability, age,marital status,military status, veteran's status, sexual orientation, lactation, arrest and court record, citizenship,or any other classification protected by State or Federal law, and that the terms and conditions of employment under the proposed contract shall be in accordance with the purposes and provisions stated herein. 2. Sanitation,Etc. That the Lessee shall keep the demised premises in a strictly safe, clean, sanitary and orderly condition, in compliance with all applicable standards of the County, State,and Federal governments. 3. Waste and Unlawful, Improper, or Offensive Use of the Demised Premises. That the Lessee shall not commit, suffer,or permit to be committed any waste, nuisance, strip,or unlawful, improper, or offensive use of the demised premises, or any part thereof, nor,without the prior written consent of the Lessor, cut down, remove, or destroy, or suffer to be cut down,removed,or destroyed, any trees now growing on said premises.- 4. Compliance With Laws, Etc. That the Lessee shall comply with all applicable requirements of all County, State, and Federal authorities and observe all County ordinances and State and Federal statutes,pertaining to the said demised premises,and pertaining to the Lessee's activities, now in force or which may hereinafter be in force,and comply with all applicable licensing requirements of 4812-3239.0415.1 -5- the State and Federal governments,and with all applicable accreditation and other standards of quality generally acceptable in the field of Lessee's activities. 5. Improvements. That the Lessee shall not at any time during said term construct, place, or install on said demised premises any building, structure, or improvement of any kind and description whatsoever, except with prior written approval of the Lessor and upon such conditions as the Lessor may impose, unless otherwise provided herein. 6. Liens. That the Lessee will not commit or suffer any act or neglect whereby the demised premises or any improvements thereon or the estate of the Lessee in the same shall become subject to any attachment, lien,charge,or encumbrance whatsoever,except as hereinafter provided, and shall indemnify and hold harmless the Lessor from and against all attachments, liens,charges, and encumbrances and all expenses resulting therefrom. 7. Assignments, Etc. With the exception of a sublease to the Hilo Meishoin Church for parking purposes,and subject to the prior written consent of the Lessor, which consent shall not unreasonably be withheld,the Lessee shall not transfer,assign, or sublease the demised premises or any portion thereof, nor permit any other person to occupy or use the demised premises or any portion thereof, except in furtherance of the uses expressly permitted herein and shall not transfer or assign or sublease this lease or any interest herein, either voluntarily or by operation of law, and any transfer or assignment so made shall be null and void. Lessor declares that it enters into this lease on reliance on the specific identity of the Lessee. 4812-3239-0415 1 -6- 8. Mortgage. That, except as provided herein, the Lessee shall not mortgage, hypothecate,or pledge the said demised premises or any portion thereof or this lease or any interest therein without the prior written approval of the Lessor and any such mortgage, hypothecation, or pledge without such approval shall be null and void. 9. Indemnification. That, with the exception of intentional,willful and/or grossly negligent acts or omissions by the Lessor, its respective employees, agents or assigns,the Lessee will indemnify,defend, and hold the Lessor and the State of Hawai`i harmless: (a) from and against any claim or demand by third persons for loss, liability, or damage,including claims for property damage, personal injury,or wrongful death, arising out of any accident on the demised premises, sidewalks and roadways adjacent thereto or occasioned by any act or nuisance made or suffered on the demised premises,or by any fire thereon or growing out of or caused by any failure on the part of the Lessee to maintain the demised premises in a safe condition, or arising from the Lessor's supervision, if any, of the Lessee's activities or the demised premises, or arising from the Lessor's inspection, if any, of the Lessee's activities or the demised premises, including any negligence in the Lessor's supervision, if any, or inspection, if any, of the Lessee's activities or the demised premises, and will reimburse the Lessor for all costs and expenses in connection with the defense of such claims; 4812-3239-0415.1 -7- (b) from and against all actions, suits,damages, and claims by whomsoever brought or made by reason of the nonobservance or nonperformance of any of the terms, covenants, and conditions herein or the applicable rules, regulations, ordinances, and laws of the Federal, State, or County governments,including actions against the Lessor brought by the Federal government for noncompliance with any applicable Federal grant requirements caused by the Lessee's failure to comply with the terms of this lease. 10. Liability Insurance. That the Lessee shall procure, at its own cost and expense, and maintain during the entire period of this lease, with an insurance company or companies acceptable to the Lessor, a policy of comprehensive liability insurance, with minimum amounts of$1,000,000 per occurrence for bodily injury and property damage, insuring against all claims for bodily injury, death, and property damage; that said policy or policies shall cover the entire demised premises, including all buildings, improvements, grounds, and all roadways and sidewalks on the demised premises in the control or use of the Lessee. The Lessee shall furnish the Lessor with a certificate showing such policy to be initially in force and shall furnish a like certificate upon each renewal of such policy,each such certificate to contain or be accompanied by an assurance of the insurer to notify the Lessor with thirty days minimum notice, of any intention to cancel any such policy under this lease as set forth herein or limit the amount of its liability under this lease. The Lessee shall cause the Lessor to be named as an"additional 4812-3239-D415.i -8- insured" on the above-mentioned comprehensive liability insurance policy. The policy shall have a deductible for not more than $500 per claim. 11. Fire Insurance. That upon initiating construction of improvements at the demised premises, the Lessee shall procure, at its own expense, and maintain, during the entire period of this lease with an insurance company or companies acceptable to the County, a policy of insurance insuring against damage or destruction of the demised premises due to fire,vandalism, or malicious mischief,in the minimum amount of$350,000, and a maximum deductible of$500. The Lessee shall cause the County to be named as an "additional insured" on the above-mentioned damage or destruction insurance policy. In the event new structures are appraised in the future, the Lessee shall obtain at its own expense and maintain, during the period of this lease sufficient insurance policy to reflect replacement value of these structures. The Lessee shall furnish the County with a certificate showing such policy to be initially in force and shall furnish a like certificate upon each renewal of such policy,each such certificate to contain or be accompanied by an assurance of the insurer to notify the County of any intention to cancel any such policy prior to actual cancellation. 12. Hazardous Materials. Lessee shall not cause or permit the escape, disposal or release of any hazardous materials on the demised premises except as permitted by law. During the term of this Lease Agreement, Lessee shall not allow the storage or use of such materials in any manner not sanctioned by law or by the applicable standards prevailing in the industry for the storage and use of such 4812-3239-0415.1 -9- materials,nor allow to be brought onto the demised premises any such materials except to use in the ordinary course of Lessee's business, and then only after written notice is given to the County. Consent may be withheld at the County's sole and absolute discretion. If any lender or governmental agency shall ever require testing to ascertain whether or not there has been any release of hazardous materials by Lessee, then the Lessee shall be responsible for the reasonable costs thereof. In addition, Lessee shall execute affidavits, representations and the like from time to time at the County's request concerning Lessee's best knowledge and belief regarding the presence of hazardous materials on the demised premises placed or released by Lessee. Lessee agrees to indemnify, defend, and hold the County harmless from any damages and claims resulting from the release of hazardous materials on the demised premises occurring while Lessee is in possession, or elsewhere if caused by Lessee or persons acting under Lessee. "Hazardous materials" shall mean any pollutant,toxic substance, hazardous waste,hazardous materials,hazardous substance, or oil as defined in or pursuant to the Resource Conservation and Recovery Act, as amended,the Comprehensive Environmental Response, Compensation, and Liability Act,as amended,the Federal Clean Water Act,or any other applicable Federal, State or local environmental law,regulation, ordinance, rule, or bylaw,whether existing as of the date hereof, previously enforced, or subsequently enacted. 13. Maintenance. That the Lessee shall keep the demised premises in good repair (wear and tear resulting from the reasonable use of the same excepted). The 4612-3239-0415.1 -10- Lessee shall, at its own expense,perform all necessary maintenance of the demised premises, including all grounds and landscape maintenance. The Lessee shall promptly repair and correct,at its own expense, any condition or defect in the demised premises which creates a risk of harm to persons or property,or which exposes the demised premises to rapid deterioration in excess of normal weathering. 14. Written Consent Required for Resairs and Renovations. That prior to commencing any Tepairs or renovations,the Lessee shall notify the Lessor and secure the Lessor's written consent, which shall not be unreasonably withheld. The Lessor may require the Lessee to produce plans showing the work to be done. The Lessor may inspect any repairs and renovations and require that it be done in conformance with good and accepted construction practice and in compliance with applicable laws, codes, and regulations. 15. Casts of Litigation. That in case the Lessor shall be made a party to any litigation commenced by or against the Lessee (other than condemnation proceedings),the Lessee shall and will pay all costs and expenses incurred by or imposed on the Lessor; furthermore, the Lessee shall and will pay all costs and expenses which may be incurred by or paid by the Lessor in enforcing the covenants and agreements of this lease, in recovering possession of the demised premises or in the collection of delinquent rental,taxes,and any and all other charges. 16. Entry by Lessor. That the Lessee shall permit the Lessor, its agents and invitees, or independent contractors hired by the Lessor,to enter on the demised premises or any part thereof, at all reasonable hours,for the purpose of inspecting same, -11- 4812-3239-0415.1 including inspections related to the services provided at the demised premises,or making repairs, improvements, or alterations necessary or desirable for the safety or the preservation of the demised premises, upon the Lessor or its agent giving twenty--four hours notice of entry,except that in case of emergency,no notice need be given for entry. That the Lessee shall cooperate with the Lessor to the fullest practical extent in permitting the Lessor to make such inspections, alterations,repairs, and improvements. That any temporary diminution in or interference with the use of the demised premises to the Lessee occasioned by such inspections, alterations, repairs,and improvements shall not be a breach of this lease, and shall not result in any liability on the Lessor. Nothing in this paragraph shall be construed as requiring the Lessor to make any inspections, repairs, improvements,or alterations to the demised premises. 17. Contracts for Construction. That the Lessee shall not enter into any contract for construction,repair,renovation, or improvement on,in, of,or to the demised premises, or any part thereof, or for any work to be done or materials to be furnished on or to the demised premises,without first obtaining the written approval of the Lessor. The Lessor's approval may be conditioned on the Lessee providing adequate assurance that it has the financial ability to pay for the cost of any such contract, or to otherwise provide sufficient assurances that no mechanic's or materialman's lien may be levied against the demised premises. 18. Condition of Demised Premises. That the Lessee has examined and knows the condition of the demised premises, that the demised premises are leased as they now are,that the Lessor expressly disclaims any warranty of fitness for any 4812-3239-0415.1 -12- particular purpose, and that the Lessor shall not be responsible for the present or future condition thereof. The Lessor shall not be required to perform any repairs, alterations,or improvements whatsoever during the term of this lease. 19. Notice. That in the event of any material change in the condition of the demised premises, whether through the acts or omissions of the Lessee or otherwise, or any defect discovered in the demised premises,the Lessee shall immediately notify the County of Hawai`i Department of Parks and Recreation of the change in condition of the demised premises or the defect. "Material change" includes, but is not limited to, any change, which may create a risk of harm to users or occupants of the demised premises, or any change which exposes the demised premises to rapid deterioration in excess of normal weathering. Nothing in this paragraph shall be construed to imply a duty by the Lessor to remedy or repair any such changes. 20. Use. That the Lessee shall use the demised premises to construct a veterans center and/or veterans housing. The facilities may serve all veterans and veterans' organizations,to include veterans affairs, administrative offices for counseling and readjustment assistance, community based out-patient clinic, transportation services,and the State Office of Veterans Services. The Lessee shall fund, construct,maintain,and operate the veterans center and/or veterans housing described in Exhibit "C" of their letter dated June 23, 2001,and Exhibit "D"of the Final Environmental Assessment, attached hereto and made a part thereof. 4812-3239-0415.1 -13- 21. Property Tax. That the Lessee shall pay promptly, when due, all real property taxes, rates,assessments, impositions, duties, charges, and fines, which shall, during the term of this lease,be lawfully charged, assessed, imposed, become a lien upon, or become due and payable upon or on account of each and every part and parcel of land leased by the Lessee. The Lessee may apply for an exemption from real property taxes based on its nonprofit status. However, until such exemption is granted, Lessee shall be responsible for all real property taxes. 1 records of 22. Records and Reports. That the Lessee shall establish and maintain intake, discharge, services,and other documentation necessary to show compliance with paragraph 20,Use, above, including but not limited to,the financial status of clients served, and the scope and nature of services rendered at the demised premises and shall maintain and preserve all required records and documents for three years after the expiration of the lease agreement. The records shall be compiled and an annual summary report shall be submitted to the Lessor. All records referred to in this paragraph shall be available for inspection by the Lessor and its agents on reasonable notice,provided that the Lessee and Lessor shall agree on measures necessary to protect the privacy and individual identity of clients receiving services from the Lessee. 23. Tax-exempt,Nonprofit Status. That the Lessee has and shall maintain status as a tax-exempt, nonprofit organization as certified by the Internal Revenue Service. The Lessor shall require the Lessee to provide evidence of such certification. That the Lessee has, and shall continue to have during the lease term, bylaws or 4812-3239-0415.1 -14- . l4- policies which describe the manner in which business is conducted,and shall submit the same to Lessor. 24. Personal Property. That the Lessee shall, at its own expense, be responsible to provide all equipment and all other property of any nature necessary for the uses described in paragraph 20, Use, above. 25. Personnel. That the Lessee shall,at its own expense,be responsible to provide all necessary staff for the provision of the services described in paragraph 20, Use, above. 26. Surrender. That the Lessee shall,and will, at the expiration or sooner termination of this lease, peaceably and quietly surrender and deliver possession of the demised premises to the Lessor, together with all buildings and improvements of whatever name or nature, now on or hereafter erected or placed upon the same, in good order and condition,reasonable wear and tear excepted, and that Lessee shall remove, at no expense to the Lessor, all of the Lessee's personal property at the termination of this lease. 27. Nonwaiver. That the failure of the Lessor to insist on the strict performance of the terms, agreements,covenants,and conditions herein contained,or any of them, shall not constitute or be construed as a waiver or relinquishment of the Lessor's right thereafter to enforce any such term, agreement,or condition, but the same shall continue in full force and effect. 28. Holdover. That if Lessee shall hold over, after expiration of the term hereby created, with consent of the Lessor, it shall be deemed a renewal of this lease and 4812-3239-0415.1 -15- of all terms, covenants, conditions, and agreements herein contained, for the Period agreed upon in writing by both parties. 29. Abandonment. That if the Lessee abandons the demised premises, its right to possession shall cease and this lease shall terminate,without prejudice to any other rights of the Lessor. "Abandonment" shall include,but not be limited to, Lessee's failure to use the demised premises for the purposes and uses listed in paragraph 20, Use, herein. If Lessee abandons the demised premises, the demised premises shall automatically revert to Lessor without need for further action. 30. Destruction, Etc. That if, during the term of this lease, the demised premises shall be substantially destroyed or become untenantable by reason of fire,the elements, or any other cause,then this lease may be terminated by either the Lessee or the Lessor upon notice in writing to the other party, and the Lessee shall be released from further obligation hereunder. Notwithstanding any insurance on the demised premises, Lessee shall not be required to rebuild the Lessee's improvements should it be destroyed or become untenantable. 31. Condemnation. That in the event that all or part of the land of the demised premises be taken for public use under the right of eminent domain, all of the award received for such taking shall belong solely to the Lessor, and no part of such award shall belong to the Lessee. If the entire demised premises are taken, or if so much of the demised premises are taken that the demised premises become unsuitable for the uses specified in paragraph 20,Use,this lease shall terminate,and the Lessee shall be released from further obligation hereunder. 4812-3239-0415.1 -16- 32. Breach and Termination. That, upon the expiration of five (5)years from the Effective Date herein,this Lease Agreement shall be terminated unless the term is extended or earlier terminated as specified in paragraph A2, Term. That if the Lessee shall become bankrupt or shall abandon the said demised premises, or if this lease and said demised premises shall be attached or otherwise taken by operation of law, or if any assignment shall be made of the Lessee's property for the benefit of creditors, or if the Lessee shall fail to observe and perform any of the covenants,terms, and conditions herein contained and on its part to be observed and performed,the Lessor may at once reenter such demised premises or any part thereof,and upon or without such entry,terminate this lease without prejudice to any other remedy or right of action. 33. Headings. That the marginal headings throughout this lease are for the convenience of the Lessor and Lessee and are not intended to construe the intent or meaning of any of the provisions thereof. 34. Complete Agreement. This lease contains the full and complete agreement of the parties and supersedes any prior agreement between the parties, and there are no covenants, terms,agreements, or conditions or understandings, either oral or written, between the parties other than herein set forth. 35. Lessee Not an Agent of Lessor. Nothing herein contained is intended or should be construed in any way establishing the relationship of copartners between Lessee and Lessor, or as constituting the Lessee as the agent, employee, or representative of the Lessor for any purpose whatsoever. 4812-3239-0415 1 -17- . 1) ' 1 IN WITNESS WHEREOF,the parties hereto have executed this instrument on the day and year first above written. COUNTY OF HAWAII By WILLIAM P. KENO1 r•-•. MAYOR LESSOR . ' HAWAII ISLAND VETERANS } s ORIAL,INC. By • Name:RM/E ' 1/1)) Title: e_444, -1rSIA-. Aus',a4-1407 1!1. L r . LESSEE RECOMMEND APPROVAL: H (*),;49._ ROBERI .' ZGERALD,Director Department of Parks and Recreation APPROVED AS TO FORM AND LEGALITY: Approved as to Availability of Funds hi the amounts and for The purposes _ set forth herein. Deputy irporation Counsel • • .,IRECTOR OF F1NANi; AUG 212012 ._ 4812-3239-0415.1 -19- • (- STATE OF HAWAII ) SS. COUNTY OF HAWAI`I ) On August 31,2012 ,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 Hawaii,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 Hawaii by authority given to said Mayor of the County of Hawai`i by Sections 5-13 and 13-13 of the County Charter,County of Hawaii(2010),as amended,and said WILLIAM P.KENOI acknowledged said instrument to be the free act and deed of said County of Hawaii. 411 `+�'Uu Itflu/1d � �'��i f� `arJ?... •1.t� u F2-ig5'r * = Notary Public,State of Hawai`i Printed Name: Lisa Robertson //rr�� l ttt �� My commission expires:05/20/2016 NOTARY CERTIFICATION STATEMENT Document Identification or Description: Lease Agreement: Hawai'i Island Veterans Memorial,Inc.(HIVM) Doc.Date: 08/31/12 0 Undated at time of notarization ��4;';Ittif:flr"rfr N..of Pages: 21 . '•' Jurisdiction:Third Circuit .�� 1102e03e 11110 08/31/2012 -:` 45)744 Signature of N�tary Date of Notarization and :1t ••tr$ rr Certification Statement ` qi 14.L.s.;, Lisa Robertson ,,6 O C�'lt a~ Printed Name of Notary ;^-') STATE OF HAWAI`I ) ) SS. COUNTY OF HAWAII ) On this lye=day of 3Vk't, 2012, before me personally appeared teq - \eitom g , to me personally, who being by me duly sworn, did say ef_ that , is the CV Air AV\ of HAWAII ISLAND VETERANS MEMORIAL, INC., and that the seal affixed to the instrument is the corporate seal of the corporation, and that the instrument was signed and sealed in behalf of the corporation by authority of its board of directors, and 9..ttst . 1&"S acknowledged the instrument to be the free act and deed of the corporation. •.., Matin/w it* MM'__4. lb-ti. Name: jcVAArit. %k V.. Carv�OA® — l"77- ••+04-395 • * — Notary Public 4,U8y#1 State of Hawaii Ak ' • 'ee,, Of H,asMy commission expires: y\-).%\3 �edd1111f1N� � l NOTARY CERTIFICATION STATEMENT Document Identification or Description: %..t.At@. tly t y* Document Date: ‘,MIN At `��M1M Hutto/��.,�� No. of Pages: 1.dy Jurisdiction(in which notarial act is performed): - * ; 04-395 s ,y. V Luiom:!win. .• Signature o NotaryDate of Notarization a?ion and �� F N ,��`• 1 u Certification Statement .V1M0,c'L t tk.(sk. Cats b,Ub (Notary Stamp or Seal) Printed Name of Notary 4812-3239-0415.1 EXHIBIT 1 ►�M4 STATE OF HAWAII ( SURVEY DIVISION DEM OF ACCOUNTING AND GENERAL SERVICES Ca.F. Ne 24,418 EaoNoIULu April 18, 2005 ( ADDITION TO COMBINED VETERANS CENTER,VETERANS HOUSING AND OTR RELATED PURPOSES SITE Waiakea, South Hilo,Island of Hawaii; Hawaii - . ( Being a portion of the Government(Crown)Land of Waiakea. ( Beginning at the south corner of this parcel of land, and at the north corner of the intersection of Ululani Street Extension and Kawili Streets,the coordinates of said point of beginning referred to Government Survey Triangulation Station "HALAL"being 5344.35 feet South and 7124.74 feet East, thence running by azimuths measured clockwise from True South:- 1_ 148° 10' 148.34 feet along the northeast side of Ululani Street Extension; 2. 238° 10' 24I.17 feet along Grant S-14,827 to Hllo Meishoin; 3. 328° 10' 148.34 feet along the southwest side of Abandoned Railroad Right-of-Way; -1- EXHIBIT "A-1" `�l f .- t .4a4. it STATE OF HAWAII SURVEY DIVISION DEPT. OF ACCOUNTING AND GENERAL SERVICES c.s.r. 23,608 HONOLULUHONOLULUAugust 22, 2003 e�® COMBINED VETERANS CENTER, VETERANS HOUSING AND OTHER.RELATED PURPOSES SITE Waiakea, South Hilo,Island of Hawaii,Hawaii ( Being a portion of the Government (Crown)Land of Waiakea. • • - Beginning at the south corner of this parcel of land,the north corner of the intersection of Kapiolani and Kawili Streets,the coordinates of saidpoint of beginning referred to Government Survey Triangulation Station`aHALAT'being 5613.82 - ) feet South and 6690.70 feet East, thence running by azimuths measured clockwise from True South:- . • 1. Along the north cornerof the intersection of Kawili and Kapiolani Streets on a curve to• the right with a radius of 30.00 feet,the chord azimuth and distance being: - 103' 10' . 42.43 feet; - 2. 148' 10' 297.86 feet along the northeast side of Kapiolani Street; 3. 238' 10' 249.44 feet along Grant S-I4,064 to The Protestant . • Episcopal Church in the Hawaiian Islands; _.' 4. 148° 10' 362.34 feet along Grant S-14,064 to The Protestant Episcopal Church-in the Hawaiian Islands; • • EXHIBIT "A-2" -1- • 1 ' C.S.F.No. 23,608 August 22, 2003 • • • 5. 238° 10' 240.45 feet along the remainder of the Government (Crown)Land of Waiakea; • 6. 328° 10' 690.20 feet along the remainder of the Government - (Crown)Land of Waiakea; • 7. 58' 10' 450.89 feet along the northwest side of Kawili Street to the point of beginning and containing ' an AREA OF 5.615 ACRES. • SURVEY DIVISION DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES • STATE OF HAWAII By ,r1.11•44,,,,,YK- -662 : J. Kodam Land Surveyor - • gr._ Compiled from map furn.by . ' • -County of Hawaii, CSF 13321; Hawaii File Carton 165 and other (. Govt: Survey Records. c • • • • s • • • t _2_ • 1, I • • 'll PARCEL I LAND SITU ATED AT WAIAICBA,SOUTH HILO, ISLAND OF HAWAII,HAWAII. Being a portion of Government(Crown)Land of Waiakea. Beginning at the east corner of this parcel of land,and on the northwesterly side of Kawili Street, the coordinates of said point of beginning referred to Government Survey Triangulation Station"HALM", being 5,344.35 feet South and 7,124.74 feet East, thence running by azimuths measured clockwise from true South: 1 1. 58° 10' 60.00 feet along Kawili Stet; 1 2. 148' 10' 14834 feet along Governor's Executive Order No.4014; , ) 3. 238° 10' 60.00 feet along the remainder of Government Land; 4. 328° 10' 148.34 feet along Governor's Executive Order 4108 to the point of beginning and containing an area of 8,900 Square Feet. j - 1 , EXHIBIT "A-3" C PARCEL 2 LAND SITUATED AT WDA,SOUTH HILO, ISLAND OF HAWAII,HAWAII. • Being a portion of Government(Crown)Land of Waiakea. ( Beginning at the west corner of this parcel of land,the coordinates of said point ofbeginning referred to Government Survey Triangulation Station"HALAI', being 4,882.95 feet South and 6,767.67 feet East, thence running by azimuths measured clockwise from true South: r - I. 238° 10' 60.00 feet along the remainder of Government Land; 2. 328° 10' 432.00 feet along Grant S-14,827 to Hilo Meishoin; 3. 58° 10' 60.00 feet along the remainder of Government Land; 4. 148° 10' 432.00 feet along Governor's Executive Order No.4014 to the (._ point of beginning and containing an area of 25,920 Square Feet 4 - 1 1 . I^j PARCEL 3 ") ) LAND SITUATED AT WA[AREA,SOUTH 111W, ISLAND OF HAWAII,HAWAII. eing a portion of Government(Crown)Land of Waiskea. ) Beginning atthe south comer of this parcel°fund,the coordinates ofsaid point ofbeginning refined to Government Survey Triangulation Station 11ALAr, being 4,882.95 feet South and 6,767.67 feet East,thence running by azimuths measured clockwise from true South: 1. 148° 10' 109.86 feet along Governor's Executive Order No.4014; 2. 238° 10' 60.00 feet along the remainder s;f Government Land; 3. 328° 10' 109.86 feet along Grant S-14,827 to Hilo Mleisboin; 4. 58° 10' 60.00 feet along the remainder of Govemroent Land to the point of beginning and containing an area of 6,592 Square Feet. • J f i ) }I` ttf v 7 i J ✓ 1 SI 23 — +"agoc. iso,a-7.a w•......• s,.e. I 60� n d re.Sot��,) I.549Ac. OLONA 5T • rr.44 a AO*ma ar..o a...§$ rho L,oi+.eapa+I CRs+,@A e� ++s Naw-ai,. A i/e .61aJa/...i. `74: CA uroh U6 g y i 4 gt Q8.am .Ioa. X s IX. rU 4. ea..e. _r-144,4,4 �= t o L g N Gam. 3'-"tea.r �9e .. �vo.aa V e f EXEC.. Q IeA. 4-014 j}` 'Z I 0 I u a.a7 J Rcr $ C /� %,....,..,-. j _. :4, .J .6 I AC. E) GC. 4Itco.4Jcog 'V 10 •JeT�• O..Aa$ Ac. p . 8.4/.17 Ms AlMo.frIs s1. v. KAWrtr sr. sz —'•.^- mire••Afp PAxa area.E610,W ai.4,.a, DBPARTM@NT OP TAXATION TAXATION MAPS BUREAU STATE OF HAWAII TAX MAP THIRD TAXATION DIVISION ZONE $EC. PUT FOR REAL SUBJECT TOTACHXAATION E PURPOSES 7 PROPERTY 2 4 1; 5 el-.AI 1-. 1 IN Ina 6-1. ' I EXHIBIT B • • EXHIBIT H .40R; ""' i ice_ '•4•\, COUNTY OF HA A�°I t-�� i •' STATE OF HA 1AN RESOLUTION IOEM NO. 275 12 f � I ' RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO NEGOTIATE A LEASE OF REAL PROPERTY,SITUATED AT WAIAKEA,SOUTH HILO, COUNTY AND STATE } OF HAWAII,IDENTIFIED AS TAX MAP KEYS: (3)2-4-057:029,(3)2-4-057:030,AND(3) 2-4-057:031,TO THE HAWAII ISLAND VETERANS MEMORIAL,INC. BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII. n- WHEREAS,the County of Hawaii controls the three real property parcels described as '11 Tax Map Keys:(3)2-4-057:029,(3)2-4-057:030,and(3)2-4-057:031 (collectively the "Parcels"),situated at Waiakea, South Hilo,County and State of Hawaii,delineated on Exhibit • "A"attached hereto;and • WHEREAS,the Hawaii Island Veterans Memorial,Inc.,a nonprofit organization, 1 desires to lease the three properties from the County,for the purpose of construction and development of a veterans center and veterans housing; and WHEREAS,the Council of the County of Hawai`i-previously approved the lease of Tax Map Key:(3)2-4-057:031,which was to be used for a veterans center and veterans housing, - through Resolution 293-07,under similar terms and conditions;and WHEREAS,the Council of the County of Hawaii previously approved the lease of Tax -_- Map Key: (3)2-4-057:029 and Tax Map Key:(3)2-4-057:030,which was to be used for a veterans center and veterans housing,through Resolution 168-04, under similar terms and conditions;and • WHEREAS,the leases of the Parcels have lapsed,without construction of the veterans center and veterans housing by Hawaii Island Veterans Memorial, Inc.; and • WHEREAS,Hawaii Island Veterans Memorial,Inc.,still wishes to pursue building a C veterans center and veterans housing on the Parcels; and WHEREAS, Section 2-120(a)(2)of the Hawaii County Code provides that the Council of the County of Hawaii may, by resolution approved by a majority of its members, direct the Finance Director to negotiate the lease of real property to nonprofit organizations,at such rentals and on such terms and conditions as deemed proper; and WHEREAS,Section 2-120(b)provides such lease of real property to nonprofit organizations may be made without the notice or appraisal as required by Chapter 2,Article 19, of the Hawaii County Code;now,therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that under ( ` Chapter 2,Article 19, Section 2-120(a)(2)of the Hawai`i County Code,the Director of Finance is hereby authorized to negotiate a five(5)year lease of the Parcels(with additional renewal options of five(5)year increments)with the Hawai`i Island Veterans Memorial,Inc., a nonprofit organization,without notice or appraisal,for the real properties identified as Tax Map Keys: (3) 2-4-057:029, (3)2-4-057:030,and(3)2-4-057:031. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, that the Honorable William P. Kenoi,Mayor of the County of Hawaii,is hereby authorized to execute said lease agreement on behalf of the County of Hawai`i following its approval by the Council as noted herein. ' f a ... .. _ .. • . � I BE IT FINALLY RESOLVED that a copy of this resolution be forwarded to: (1)Mayor {_ William P.Kenoi; (2)Finance Director Nancy Crawford;(3)the Department of Parks and Recreation;(4)the Office of the Corporation Counsel;and(5)Hawai`i Island Veterans Memorial,Inc.,P.O. Box 827,Pepe'ekeo,Hawaii 96783. Dated at Hilo ,Hawai`i,this 1st day of August ,2012. INTRODUCED BY: ??1,-,p1 es- COUNCIL ME ER,COUNTY OF HAWAI`I - • COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AYES NOES ABS EX Hilo,Hawai`i BLAS X FORD �- I hereby certify that the foregoing RESOLUTION was by HOFFMANN X the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on August J., 2012 _ IKEDA X ONISHI X PILAGO x ATTEST: • SMART X YAGONG X YOSHIMOTOX 9 _ 0 0 0 Reference: C-773/FC-236 CO TY CLERK CHAIRPERSON&PRES IN OFFICER RESOLUTION NO. 275 12 . . . . • • - . It'fa. .-,... i • ..54'.7.-ri ....,0.44, ; "" let • . g 23 ".....••••• g.c~0. e.94+7 042.0 eak 'Io e....p,... .001•11•400+0..0..4". ,t il I; 1 d • 1 .3 8 2,4...„. 1,§ IL ow,. 2 14 alr....,.....33 OLONA Sr .0........ .i.-4......4.. . I . • C) 1 TA. .19,4zfreoze..G..,,,...-404 ,,,... .............,..., 0..........4 mg. 0 , . . 1 t I • Cs a. ItI i ...., ,`Ii co am, ..-Iota 0 Cat 4 •IC d cn ts d • ll. 3 cu w.-. •s•-/4.0r.rr 4411.41,4r if --iu _. 1,* a Exec. ooze..4Ol* I • Z i i. 0 vi 1.4 .1 IN .3.2.-,•D Am It 1--- ....... m •.••....,.._ • exac. csnees,-ncos3 CI . 1 I 14 g P. I ca.a z./ .A.c.. d tzti.e..• as? 41.:10,09 x 32 . 1,7....romesseep .1"1, — v. KAINILI ST. sr . 1 asocersoc. Auvece.cs.we„ IDEPARTMENT OF TAXATION TAXATION MAPS BUREAU STATE OF HAWAII TAX MAP • — - THIRD TAXATION DIVISION . . , 20)15 SEC. PLAT FOR REAL PROPERTY TAXATION PURPOSES 2 I 4 57 - SUBJECT TO CHANGE - • WALI t• 1 IN ....Ilihrs CT' EXHIBIT A 41, _. ,__...., ..._.. • --„, , . • , . ) , • • -,HAWAII ISLE VETERANS MEMO &L, Is W M _MAY ( 1M • A NO?4'PROiF`ITCORPORATION 590 1GLIXINA °ASSISTING ALL VETERANS l : —� DIVIAN To: Ms..Patricia G.Engelhard, Director 6/23101 ! ) at Mostar` County of Hawaii Dept. Parks and Recreation . �) :•.' is Mapes 25 Anpuni St. Roon 210 � et DeSOva ARY Hilo Hi_ 96720 :Director MAME :Dep Dir 3 . . :Planner :r.; Si` Fr: Lt. Col. (Ret)Robert L.Montague,Chairrttan -Accounting LAGER' 1 Hawaii Island Veterans Memorial Inc. (7KIVY/I) -Personnel ilfgalat RD OF DIRECTORS 1590 Kilikina St Hilo,Hi. 967204,314.?,br". at Montague Town"' 1 sots Smith GLAI4 1)1(4- t Dsav' Subject: Combined Veterans Center,corner of ICawiili,and Kapiolani Streets. So Tanaka , Smith - h Sh Dear Director Engelhard:Nakamura - •' rr Clam ' on Matsuda In your letter 2/28/01 you requested written concnrr+ene c from the adjoining properties to ( ) les Sandcrs the Combined Veterans Center(CVC)property. At incl. 1-4 enclosed,you wall find the tt Musa i y John written concurrence and approval. The University of Hawaii,Hilo Campus is especially• ` anxious for this facility to be build,so the two organiza ions can start with collaboration ; floor t®the Stateof Hawaii for the Office of There is also the possibility of leasingspace Veterans Services(OVS). Generating a substantial cost saving to the State of Hawaii. The AARP has expressed a desire for floor space,and VFW needs space for an Hawaii (" Island Service Officer,this concept will put all Veterans Facilities in one location for convenience to VA,the State of Hawaii,Service Officer,Travel coordination and pick up ( of Veterans,and most importantly the Veterans and their families. The Veterans Han will be utilized for Veterans Group activities,meeting place,and the Public may make use of the facility for Receptions,Conventions,Seminars,and Reunions for a reasonable fee per function. There will be little or no charge to Seniors,Youth, and Veterans Groups for day time Programs. Hawaii Island Veterans Memorial Inc.,feels the CVC willbe very self-sufficient,and a definite asset to the community,with no burden to the County of Hawaii for.Operation and Administrative costs. Thank you very much. Sincerel .. . .. Sincerely: Col.(Ret)RZ W ontague Chairman incl.5 • • ^) UNIVERSITY OF HAWAII • 1 ) May 15,2001 • Lt. Col (Ret)Robert L. Montague, Chairman Hawaii Island Veterans Memorial Inc. 1590 Kilikina Street Hilo HI 96720 • • Dear Lt. Col. Montague: I was delighted to learn of your plan to develop a Veteran's Center adjacent to our campus on • Kawili Street This will be a valuable asset to our communityand an appropriate venue through which crucial services and appropriate recognition can be provided to the many veterans living on the Big Island. I look forward to talking with your organization about the possibility of developicig collaborative programs between the Veterans Center and the,Uxdversity of Hawaii at Hilo. • I wish you every success in-this important venture. Sincere , • 60,zt se Tseng Chancellor Office of the Chancellor tea W.KA.W$.[STREET , HILO.HAWAII 96720-4091 PHONE WON 974-7444 FAX: (808)974-7622 .Equal Opportunity/Affirmative Action Institution yiii�.T M � r , tM. k _ .. ..4' •, f r'; 1 .The Church of the Holy Apostles . "Called by Cod &eimpovvasred by tlie;Holy Spirit to proclaim JEsuus;id love, to serve and to grow spiritually." C June 13, 2001 ( To: Hawaii Island Veterans Memorial Inc. Lt. Col. (Ret) Robert L Montague, Chairman f 159010likina Street. - •• .., Hilo, Hawaii 96720 . . ( ' • i Dear Mr. Montague, - . , The Church of the Holy Apostles°is happy to support the.Veterans;Center Project. ( it is our hope eyou willto incorporate, inyour landsca d in deli •rt, the existin . P ' try � rP P 9 9 g large.trees an your property which Were spared.during the most recent bulldozing -69 the County.:Weare-especially concerned,witti_the kukui_nuttrees bordering the - church property. - - ... Sincerely, c .I.Ciet":1.4 .44 7.... 74-. Rev.Jeannette Myers Priest in Charge ge.4 t-tiLL)44/12e....„ , r Priscilla Hope Sr. Warden . c • +4+The Rev.Jeannette Myers,Priest in Charge-H-h The Rev. John Holmes,Deacon++-f Priscilla Hope, Sr. Warden ,,. 1407 K---solani St.Extension -F+-f-Hilo, Hawaii 96720 ++f , r .. (� h • l • • • WINO usogsaayN°1!H *U p S 1d VinluotRi PYI .silit144441#‘4Z7C AC.11= • • - ford a1.3o uogaiduaoa aq3 pia uoj*Cif IOAt pue Ramo=int)ioj pip suesapA a1 mph. aaepoidde aC .aAd -mmo mo luaourpe mica('ivap sunplaA a pjnq oo muff uodtins AIl[a ciolosari3 uiogs °pH Jo sztquam `am, *Jogetu slap uo Booms rug nlyta.2upeoprommoo jou soJ ABoiode amours irdp :2nalnuorel m iCi • OZL96 • • . _ - s 06Si (. tePougalfi suluMA PU J I mems • ( ( ; ( ; i00Z`ZI aun[ tJ 091/C.696:re �©9669-5£6:81.1014d OEL96 L VMYH 1011H-1 .1331119 AiNO1O e6 p*• �.� 0 ,,e. %a• ,• Jebsium luepFsaty !t,P?A ungoy Asti rJ Exhibit 9 BLNR Cancellation of E0s 4014 and 4018, April 13, 2017 �s� n <,,...�».,.M SUZANNE D.CASE �\ DAVID Y.ICE 9/ @1{1590 �yy ROARU OF I.ANI)AND NATIIR'AL RESOURCES J GOVERNOR OF HAWAII k�11�.%; t 1. l , COMMISSION ON WAWA RESOURCE MANAGE.MIM f7d II:� i fi -n`dr�F•7-, Vit I-1 c�okv�and Nabi k' QT s� STATE OF HAWAII a ,4 9N. DEPARTMENT O F LAND AND NATURAL RESOURCES �r` LAND DIVISION � -S � '' 75 Aupuni Street,Room 204 ( � Stele ofHa4'. Hilo,Hawaii 96720 PHONE:(808)961-9590 FAX:(808)961-9599 n } April 13, 2017 Ref. No. 17HD-004 Mayor Harry Kim County of Hawaii 25 Aupuni Street, Suite 2603 i Hilo, HI 96720 Dear Mayor Kim: ' ') j Subject: Cancellation of Executive Orders No. 4014 and No. 4108 to the County of Hawaii, for Combined Veterans Center, Veterans _- Housing and Other Related Purposes; and Reset Aside to the ) County of Hawaii, for a Combined Veterans Center, and Affordable Senior Housing with' Preference to Veterans and Spouses; Waiakea, South Hilo, Hawaii; Tax Map Keys: (3) 2-4- ) 057:029 and 030 I. We are pleased to inform you that at its meeting of April 13, 2017, under agenda item D- ) 3 (copy enclosed), the Board of Land and Natural Resources approved the County of Hawaii's request for the set aside of the above-referenced parcel for a combined Veteran's Center and _} affordable senior housing with preference to veterans and spouses. ;�) Please provide us with a CAD map, together with metes and bounds description, of the area to be set aside in accordance with the DAGS Survey Division CAD Mapping Standards. If your staff has questions regarding the preparation of the survey map, please contact DAGS Survey Division at (808) 586-0380. If there are any other questions, please feel free to contact me at the Hawaii District Land Office at 961-9590. Thank you. ._U - Sincerely, .41.7_ ,C1111W; 4011re— ' .J- .- .Gordon,C. eit • . . ,District Land.•Agent - J Enclosure C: Central Files Frank De Marco 1 District Files . Neil Gyotoku J Yoshimoto William Kurcharski Collins Tomei ' Bob Williams , ) C RECEIVED APR 17 2017 �. OFFICE OF THE CORPORATION COUNSEL COUNTY OF HAWAII ( ( ( ( ( ( 1)-5 n STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES ) Land Division i Honolulu,Hawaii 96813 April 13, 2017 } i Board of Land and Natural Resources PSF No.: 17HD-004 State of Hawaii Honolulu,Hawaii Hawaii Cancellation of Executive Orders No. 4014 and No. 4108 to the County of Hawaii, for Combined Veterans Center,Veterans Housing and Other Related Purposes; and I Reset Aside to the County of Hawaii,for a Combined Veterans Center, and ( � Affordable Senior Housing with Preference to Veterans and Spouses;Waiakea, South Hilo,Hawaii; Tax Map Keys: (3) 2-4-057:029 and 030 • CONTROLLING AGENCY: 1 County of Hawaii ) APPLICANT: County of Hawaii ) LEGAL REFERENCE: (�) Section 171-11,Hawaii Revised Statutes (HRS), as amended. LOCATION: ) Portion of Government lands situated at Waiakea, South Hilo, Hawaii,identified by Tax Map Key: (3) 2-4-057:029, 030, as shown on the attached map labeled Exhibit A. AREA: i EO 4014- 5.615 acres, more or less. EO 4108 - 0.821 acre, more or less. ZONING: State Land Use District: Urban County of Hawaii CZO: RM-1 APPROVED BY THE BOARD OF LAND AND NATURAL RESOURCES ' AT ITS MEETING HELD OH D-3 April t3, 2ot7 • BLNR-Set Aside to Page 2 April 13,2017 `( County of Hawaii TRUST LAND STATUS: Section 5(b)lands of the Hawaii Admission Act DHHL 30%entitlement lands pursuant to the Hawaii State Constitution: NO r : CURRENT USE STATUS: • Governor's Executive Order No.4014,setting aside 5.615 acres, and Governor's Executive Order No. 4108 setting aside 0.821 acres to the County of Hawaii for Combined Veterans Center,Veterans Housing and Other Related Purposes. ( PURPOSE: Revised Executive Order: Combined veterans center,and affordable senior housing with preference to veterans and spouses purposes. CHAPTER 343 -ENVIRONMENTAL ASSESSMENT: The Final Environmental Assessment for the subject project was published in the OEQC's Environmental Notice on August 8,2006 with a finding of no significant impact (FONSI). (. .. APPLICANT REQUIREMENTS: . Applicant shall be required to: 1) Process and obtain subdivision at Applicant's own cost; 2) Provide survey maps and descriptions according to State DAGS standards and at Applicant's own cost; BACKGROUND: - .- Executive Order No.4014: At its meeting of November 19, 1999,under Agenda Item D-18,the Board of Land and Natural Resources(Board)approved the set-aside of the subject property to the State of - Hawaii,Department of Defense for the Combined Veterans Center,Veterans Housing 0 and other related purposes. At its meeting of August 24,2001,the Board under Agenda Item D-11, amended the prior Board action of November 19, 1999,by deleting all reference to the Department of Defense and by approving of and recommending to the Governor,issuance of an executive order to the County of Hawaii (County)for the development of a Combined Veterans Center,Veterans Housing and other related purposes. The amended action included the addition of an adjacent two-acre portion of the subject parcel relinquished by _. the Department of Health to be included as part of the set-aside to the County.• f • BLNR-Set Aside to Page 3 April 13,2017 1 County of Hawaii •n n r , At its meeting of October 25, 2002,the Board, under Agenda Item D-15, approved a second amendment to the prior Board action by the addition of adjacent road rights-of- way subject to the County executing a quitclaim for the same to the State. In the County's attempt to process the quitclaim for the rights-of-way,there were concerns raised about the inclusion of these rights-of-way. In the interest of expediting the disposition,the County had requested that these rights-of-way, together with the �) remainder parcel on the east side of Ululani Street extension be excluded from the ) Executive Order for the Veterans Center. The County would have incorporated the use of these rights-of-way into the design of the veterans center as necessary but would have retained jurisdiction over them. This would have reduced the area of the site from 7.562 } acres to 5.615 acres. To simplify the disposition, at its meeting of August 8, 2003,the Board, under Agenda Item D-9,rescinded all previous Board actions regarding the subject parcel and approved �) a set-aside of the smaller area for the same purpose to the County. Executive Order No. 4014 was completed for the smaller area of 5.615 acres, excluding the extensions of Ululani Street and Olona Street. Executive Order No. 4108: As a result of the County of Hawaii retaining the Ululani Street extension, a small parcel of State land at the south-east corner was carved out of the original set-aside request. At its meeting of November 19,2004,the Board,under Agenda Item D-13, approved and recommended the issuance of Executive Order No.4108,containing approximately 0.821 acre of land. / 1 Environmental Assessment: A Draft Environmental Assessment(DEA) was prepared by Yukie Ohashi,Planning Consultant, on behalf of the Hawaii Island Veterans Memorial,Inc. (HIVM)in conjunction with its request to lease the properties from the County for East Hawaii } Veterans Center and housing project. In the DEA report, the residentialcomponent was described as "affordable housing independent living community for Hawaii seniors (62+), with preference given to veterans and spouses of deceased veterans." As part of the DEA review process, a request for comments was sent to various government agencies. Harry Yada,then District Land Agent for the Hawaii District Land Office,recommended the language in section 2.3.3—"Senior Affordable Housing"as better reflecting the purpose of the Executive Orders (Exhibit B). Changes were made in the Final Environmental Assessment(FEA)to conform with the purpose of the executive orders by defining the residential component as an"affordable independent living community for Hawaii seniors (62+),for veterans and widowed spouses of deceased veterans" (Exhibit C). BLNR-Set Aside to Page 4 April 13,2017 County of Hawaii REQUEST: By letter dated December 19,2016(Exhibit D),the Mayor of Hawaii County,the Honorable Harry Kim,requested an amendment to Executive Order No. 4014 and Executive Order No.4108. The request is to amend the residential component back to (- the proposed use in the DEA,"affordable housing independent living community for Hawaii seniors(62+),with preference given to veterans and spouses of deceased veterans." The reason for the requested amendment is that IRS regulations bar projects ( \ such as this from using low-income housing tax credits to fund projects that solely benefit veterans. In his letter,the Mayor is also asking that a portion of the abandoned railroad right-of- (. way identified by Tax Map Key; (3)2-4-057:001 (Parcel 001)be included in EO 4108 for use as additional off-street parking for the veterans center. Parcel 001 was identified in the FEA although it was not included in the original design. There currently is an easement for utility purposes to the Hilo Meishoin over Parcel 001,1 however,this ( . easement will not impact the proposed use. { Staff takes note of the comments and recommendations by the previous District Land (__ Agent that, should the County or the HIVM wish to expand the use to possibly allow for seniors that are non-veterans,this issue should be brought back to the Board and the Governor for cancellation of the existing EO's and the issuance of new EO's allowing for the expanded use. { • Staff is therefore recommending the cancellation of Executive Order No. 4014 and Executive Order No. 4108 and the reissuance of a single Executive Order for a Combined Veterans Center,and Affordable Senior Housing with Preference to Veterans and Spouses. Also,included within this set-aside would be the addition of a portion of the abandoned railroad right-of-way. RECOMMENDATION: That the Board: 1. Approve of and recommend to the Governor issuance of an executive order canceling Governor's Executive Order Nos.4014 and 4108 subject to the following: ( _= A. The standard terms and conditions of the most current executive order form, as may be amended from time to time; B. Disapproval by the Legislature by two-thirds vote of either the House of Representatives or the Senate or by a majority vote by both in any regular or special session next following the date of the setting aside; C. Review and approval by the Department of the Attorney General;and 1 LOD 28,949,perpetual non-exclusive utility easement for waste disposal transmission pipeline purposes. 'tel BLNR-Set Aside to Page 5 April 13,2017 County of Hawaii r-� D. Such other terms and conditions as may be prescribed by the Chairperson to best serve the interests of the State. 2. Approve the addition of the thirty-foot wide abandoned railroad right-of-way identified by Tax Map Key: (3) 2-4-057:001 and abutting parcel 029 to the area to be set-aside to the County, subject to the following: A. Land Office Deed No. 28, 949, perpetual non-exclusive utility easement to Hilo Meishoin. B. Subdivision and:consolidation of the subject remnaut,railroad.right-of-way into parcel 029. 3. Approve of and recommend to the Governor the issuance of an executive order setting aside the subject lands to County of Hawaii under the terms and conditions cited above, which are by this reference incorporated herein and subject further to the following: A. The standard terms and conditions of the most current executive order form, as may be amended from time to time; B. Disapproval by the Legislature by two-thirds vote of either the House of Representatives or the Senate or by a majority vote by both in any regular or special session next following the date of the setting aside; C. Review and approval by the Department of the Attorney General; and D. Such other terms and conditions as may be prescribed by the Chairperson to best serve the interests of the State. Respectfully Submitted, -7. /_ ,y Gordon C. Heit District Land Agent APPROVED FOR SUBMITTAL: 0-1 Suzan e D. Case, Chairperson ,vl r(\ TM K: (3) 2-4-057:001, 029 & 030 C n v.ne.r N• /t•.%nim./ °6541' v Corpvaflon $ *ra ewta X13 X . _ wy S�/. t oM•�.neio c Rifiv4gro'X B l' 23 /BA406¢ /6.L'74voallor✓e,.vif eaa'o I Vie/ P..% .ea.na iM.IEoTAna-N/r j: i d eta o.4 f N n 0 22 15 o 14 /g��a'd 0 3 0 0 O %a->e oo.x • n4...> ;32 ; ( 57.c.) 1.509 Ac. eaaa' OLONA Sr aa•se....... esesaa :na/1p! �- 070.7 ` • 7.4e Epiicapa, CAu..- A •• ' •• e p n A-1.7",....... : p Hilo.Ne..rhai`, 0.0 ( ', ' `Amr.A 24 Ululani Street Extension 0 Q c V j e.00 A.S. 5,1 a a • Q 4.v. J-/4064 • i 'P� 3 Y N; G.-,3"-/4da7 I.7 i. I. . N,. ' , i m N C - Remnant Railroad Right-of-way Rlg ay � t y 5..61'5•Ac. 5)-(EC, , 431 �. ' sti ' :I 31 2 ., W.` KAWILI ST. ST OROa'PeO PARcELEU Tse.zo,25, DEPARTMENT OF TAXATION TAXATION MAPS BUREAU STATE Of HAWAII TAX MAP THIRD TAXATION DIVISION • ZONE SEC. PLAT FOR REAL PROPERTY TAXATION.PURPOSES I 2 4 57 SUBJECT TO CHANGE ( A SCALE:1 IN.=100 FT. • (.. i 1 r^� YUKIE ®HASH! From: <Harry.M.Yada@hawaii.gov> Sent: Tuesday, June 06, 2006 4:55 PM i� Subject: Draft EA for Ka Hui Na Koa 0 Kawili ) Yukie: • l I received the subject Draft EA and have the following comments: ® Section 2.3.3 indicates that the residential component will be an affordable housing independent living community for Hawaii seniors (62+),with preference given to veterans and spouses of deceased veterans. Based on this description, I have some reservations as to whether this use is within the parameters of County's Executive Order that is described as, "Combined Veteran's Center, Veteran's Housing and Other Related Purposes". Although the last section"Other Related Purposes"would seem to open a door to a broader interpretation, I would say that the more obvious interpretation would be that it would have to be "Other(Veteran) Related Purposes"which would be the clear intent of the language. If there is a desire to pursue the ability to expand the use to possible seniors that are non-veterans, we would need to take the issue back to the Board of Land and Natural Resources and the Governor for a cancellation of the existing EOs and the reissuance of new EOs allowing for the expanded use. ® I noticed a signed copy of the lease between the County of Hawaii and HIVM attached as Appendix A-3. Pursuant to Chapter 171-11, HRS, the County is authorized to issue leases consistent with the purposes of the EO, however, the lease requires a consent of the Board of Land and Natural Resources. The lease should be submitted to this office for submission to the Board of Land and Natural Resources for their consent. o I am unclear as to how this concept of a life estate is to work within an EO and a lease. What happens if } the purchaser of the life estate outlives the term of the lease? That may not be probable for the first buyer 1 but may be a definite possibility for subsequent purchasers. I ) Thanks. • l • i EXHIBIT B 6/28/2006 C' C . KA HUI NA KOA 0 KAWILI C A HAWAII ISLAND VETERANS'MEMORIAL,INC.PROJECT • To provide administrative space to the management entity for purposes of security, (" maintenance, repair, general administration,and service delivery to the residents (eg. dining, transportation, housekeeping, care-giving arrangements, etc.). • To provide military and veterans' groups, and the community in general, an appropriate and convenient facility in which to stage meetings and events of varying sizes. The largest portion of this building will consist of a banquet facility available on a rental basis to residents and the community at large. Fees collected will be used by the management firm to sustain the facility without surcharging residents;and to maintain a capital reserve specifically for this facility for repair,maintenance,upgrades, improvements, etc. The facility will have a commercial kitchen, a lounge area, a large banquet room with stage, designed to seat 355 people inside with additional spill-over seating for an additional 130 in the two adjoining dividable rooms and outside seating on covered lanais. It will have separate access for events from the Kawili Street side where parking to accommodate 480 people has been designed without conflicting with residential parking. The north end of the building consists of a library and dining rooms,a spacious recreation area and a small exercise wellness center for residents use and for small group gatherings. The mail room, administrative office, and a conference room make up the remainder of this building. This facility is specifically designed to be revenue-producing to offset costs for its operation. Further discussion follows in Section 2.4. 2.3.3 Senior Affordable Housing • r . The residential component of the project(Figures 7A, 7B, 7C)is proposed as an affordable independent living community for Hawaii seniors (62+), for veterans and widowed spouses of deceased veterans. Together with the Multi-Purpose Facility, this component will be managed and operated by a certified, licensed and bonded non-profit senior housing entity in accordance with HUD provisions.• `. The preliminary design envisions three(3)4-story buildings, comprising a total of 96 to 110 units with a mix of one-and two-bedroom units ranging from 800 sq. ft. to 1,000 sq. ft. (with lanai, 950 sq. ft. to 1,225 sq. ft.,respectively). Individual residential units will be ADA accessible and will have a living/dining room,kitchen,one or two bathrooms, laundry area, and balcony. Wide central hallways, elevator service, and stairs provide access to all units and all units are designed for assisted-living, thus, as residents' age, assisted care level can be provided on an ala carte basis. Individual residential units and common areas in all components of the overall project will be designed for ADA- accessibility to facilitate care-giving on an individualized basis initially,with the possibility of transitioning into a formal assisted-care facility in the future. - .. .. .,.�\-._.._...-.. ...�..... FINAL ENVIRONMENTAL ASSESSMENT ... .. . _..�_ ._... ........,__. _...,.K.._. .. (.-- EXHIBIT C • n n 1 e:Wy Harry Kim I¢�g� }l4, ID n r Mayor �•..r� .,,�Ir e o l; LAND \Min ; '•o=- Barbara J Kossow Count t l 4:44.° p.... inIc %flu's"�$f�Fclo�J_ • ,^1 25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawai•196740 (808)323-4444 • Fax(808)323-4440 • • I-) - December 19, 2016 • Suzanne Case, Chairperson --) Department of Land & Natural Resources Kalanimoku Building 1151 Punchbowl Street Honolulu, Hawaii 96813 SUBJECT: Amendment to Executive Order No. 4014: 5.615 acre parcel, TMK (3) 2-4-057:030 Amendment to Executive Order No. 4108: 0.821 acre parcel, TMK (3) 2-4-057:029 1 Hawaii Island Veterans Memorial, Inc., (HIVM) is the lessee of lands covered by the above ) Executives Orders No. 4014 and 4108, both "For combined veterans center, veterans housing and other related purposes." HIVM has an agreement with EAH Housing, a leader in developing and managing affordable senior living communities in Hawaii, to develop and operate the housing project on parcel 030 as low-income apartments for seniors with a preference for veterans and their ) spouses. Unfortunately IRS regulations bar projects from using low-income housing tax credits to fund projects that solely benefit veterans. Towards this objective, HIVM asks that the public purposes be amended to state: "For a combined veterans center and i_) affordable senior housing community with preference to veterans and spouses". , J J Secondly, HIVM is now developing a combined veteran's center on parcel 029 and requires '.) added space for off street parking. Accordingly, we respectfully request an amendment ,_) Executive Order No. 4108 to include that portion of the abandoned railroad right of way that ) adjoins the eastern boundary of the land covered by Executive Order No. 4108. HIVM understands that a survey map is required to move forward with this second request. -_-,' Please see the attached parcel map. �) ` ) On behalf of HIVM, the County respectfully request these amendments be considered as soon as •ossible. `_) 3.....3 1 / \ ° _ Harry Kim, Mayo _ t,ry , `) County of Hawal • ��.:r,_:'i • county, EXHIBIT D J) :rand Employer. :. Exhibit1 County Council Resolution 252-17, September 7, 2017 • .• C , COUNTY OF HAWAII -• � %�• STATE OF HAWAII aE•pF•µ,a+ RESOLUTION NO. 252 17 RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO NEGOTIATE THE LEASE OF REAL PROPERTY, SITUATED AT WAIAKEA, SOUTH HILO, COUNTY AND STATE OF HAWAII,IDENTIFIED AS TAX MAP KEY: (3) 2-4-057:030, TO HKI KAWILI,LLC,A NONPROFIT CORPORATION. WHEREAS, pursuant to an Executive Order approved by the State of Hawai'i Board of Land and Natural Resources on April 13, 2017 which is pending Governor David Ige's execution,the County of Hawai`i has control and management of real property identified as Tax Map Key: (3) 2-4-057:30 (hereinafter referred to as"Property"), situated at the corner of Kapi`olani and Kawili Streets, across from Waiakea High School, at Waiakea, South Hilo, County and State of Hawai`i, for the purpose of affordable senior housing with preference to veterans and their spouses; and WHEREAS, HKI KAWILI, LLC, a Hawai'i limited liability company,the sole member of which is Hui Kauhale, Inc., a Hawai'i 501(c)(3) nonprofit organization and affiliate of EAH Inc., a California non-profit public benefit corporation(hereinafter referred to as"HKI"), desires to enter into a sixty-five (65) year lease of the subject Property for the purpose of the construction, development and operation of an affordable senior housing project with preference to veterans and their spouses; and WHEREAS,the subject Property is currently being leased to Hawaii Island Veterans Memorial, Inc. ("HIVM"), which lease will expire on August 31, 2017 (the "HIVM lease"); and r { WHEREAS,HIVM supports having the subject Property leased to HKI; and WHEREAS,Article 19, Section 2-120 (a) (2) of the Hawai`i County Code, provides that the Council of the County of Hawai`i may,by resolution approved by a majority of members, direct the Finance Director to negotiate the disposition of real C property by leasing it to governments, governmental agencies, nonprofit organizations, or affordable housing developers at such rentals and on such teiuis and conditions as deemed proper; and WHEREAS,Article 19, Section 2-120 (b)provides such lease of real property to governments, governmental agencies,nonprofit organizations, or affordable housing developers may be made without notice or appraisal as required in Chapter 2,Article 19 of the Hawai`i County Code. • BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, that under Chapter 2,Article 9, Section 2-120(a)(2)of the Hawai`i County Code,the Director of Finance is hereby authorized to negotiate a lease of the Property with HKI,a non-profit organization, and/or an affordable housing developer that is controlled by HKI, without notice or appraisal; and BE IT FURTHER RESOLVED that the Honorable Harry Kim, Mayor of the County of Hawai`i is hereby authorized to execute said lease agreement on behalf of the County of Hawai`i following its approval by the Council as noted herein. • J-1 I 1 BE IT FINALLY RESOLVED that a copy of this resolution be forwarded to: (k) (1)the Honorable Mayor Harry Kim; (2)Director of Finance Collins Tomei; (3)Deputy _L I ' 1 Corporation Counsel J Yoshimoto; and(4)HKI. Dated at Hilo ,Hawai`i,this 7th day of September ,2017. INTRODUCED BY: 41110 ` ) •'� CIL MEMBER, CO, OF . ` WAI`I sr • • COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AYES NOES ABS EX Hilo,Hawai`i CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by EOFF X the vote indicated to the right hereof adopted by the COUNCIL of the X County of Hawai`i on September 7, 2017 ICANUHA LEE LOY X O'HARA X ATTEST: POINDEXTER X RICHARDS X RUGGLES X $/tdel or 9 0 0 0 • Reference: C-384/FC-34 COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 252 1 Exhibit 11 a r1_1 , . I • I y, f 1__ , i B pv2 V7/ 'C...C.F..1!Aj. SUZANNE D.CASE Ili DAVID Y.IGE �.0:.",..‘9,90‘:,.....? GOVERNOR OF HAWAII /1 ni',.,;A BOARD OF LAND AND NATURAL RESOURCES ,d i/ _�r,.:�' COMMISSION ON WATER RESOURCE MANAGEMENT c ��i. ROBERT K.MASUDA : ofVpnd and p w.c��, ic/ FIRST DEPUTY I, �� ¢� ry~��}�--�•%.¢ JEFFREY.T.PEARSON,P.E. I. $ �V( I 'g•C;.;.;50 DEPUTY DIRECTOR-WATER J—. may`.., - '.I STATE OF HAWAII e WAI I AQUATIC RESOURCES STATE G f9A BOATING AND OCEAN RECREATION BUREAU OF CO 4-tate ofTWs° DEPARTMENT OF LAND AND NATURAL RESOURCES COMMISSION ONWATER RESOURCEEMANAGEMENT CONSERVATIONAND COASTAL LANDS 'M POST OFFICE BOX 621 CONSERVATION AND RESOURCES ENFORCEMENT ENGINEERING I_ HONOLULU,HAWAII 96809 FORESTRY HISTORIC PRESERVATION WILDLIFE _ KAHOOLAWE ISLAND RESERVE COMMISSION LAND I_ STATE PARKS ' October 17, 2017 L. 1 Ref. No.: 17HD-004 Author: LD-GH r_,' `..l MEMORANDUM. 1 _ 1 TO: The Honorable David Y. Ige, Governor IP State of Hawaii FROM: Suzanne D. Case, Chairperson 4,<__ . 42 I Board of Land and Natural Resources SUBJECT: Executive Order Setting Aside Public Lands to the County of Hawaii for Hawaii Island Veterans Memorial, Inc. a Combined Veterans Center, and Affordable Senior Housing with Preference to Veterans and Spouses, Waiakea, South Hilo, Hawaii, Tax Map Key: (3)2-4-057:029. 1 Enclosed for your consideration and signature are two originals of an executive order setting aside 9.091 acres to the County of Hawaii for a Combined Veterans Center, and Affordable Senior Housing with Preference to Veterans and Spouses Purposes. At its meeting of April 13, 2017, under agenda item D-3 (copy enclosed), the Board of L d and Nate iral Resou ccs approved of and voted recommend Governor, the _ � an.. rJvv vNN, to to the LIIC. } issuance of the subject executive order to cancel Governor's Executive Order No's. 4014 and 4108 (EO 4014 & EO 4108) and reset aside to the County of Hawaii for a Combined Veterans Center, and Affordable Senior Housing with Preference to Veterans and Spouses Purposes. In a letter dated December 19, 2016, the Mayor of Hawaii County, the Honorable Harry Kim, requested an amendment to Executive Order No. 4014 and Executive Order No. 4108. The request was to amend the residential component back to the proposed use in the DEA, I ' "affordable housing independent living community for Hawaii seniors (62+), with preference given to veterans and spouses of deceased veterans." The reason for the requested amendment is that IRS regulations bar projects such as this from using low-income housing tax ,__: credits to fund projects that solely benefit veterans We would greatly appreciate your signing and numbering the enclosed executive orders ; if it meets with your approval. Upon certification by the Lieutenant Governor, please.retain one original and return the second original to our office. L_.' • C• If there are any questions, please feel free to contact Gordon Heit at the Hawaii District C Land Office at(808) 961-9590. Thank you for your attention to this matter. C. Enclosures cc: Land Board Member Central Files . • District Files • � I • • I ( ( ( I, ( I I i ( (` (" < . (• 2 1 L. • (;-) • (—) • ) LAND COURT SYSTEM ) REGULAR SYSTEM Return by Mail ( ) Pickup ( ) To: )1 � 1 � Total Number of Pages: Tax Map Key Nos . (3) 2-4-057 : 029 and 030 O FROM: STATE OF HAWAII BOARD OF LAND AND NATURAL RESOURCES TO: COUNTY OF HAWAII � ) 25 Aupuni Street, Suite 2603 .Hilo, Hawaii 96720 ,, �:;s'' 4 3 9 EXECUTIVE ORDER N0:" SETTING. ASIDE LAND FQR PUBLIC PURPOSES BY THIS EXECUTIVE ORDER, I, the undersigned, Governor of the State of Hawaii, by virtue of the authority in me vested • by Section 171-11, Hawaii Revised Statutes, as amended, and every other authority me hereunto enabling, do hereby order that the public land hereinafter described be, and the same is, hereby set aside for the following public purposes: FOR COMBINED VETERANS CENTER, AND AFFORDABLE SENIOR HOUSING WITH PREFERENCE TO VETERANS AND SPOUSES PURPOSES, to be under the control and management of the County of Hawaii, being that parcel of land situated at Waiakea, South Hilo, Island of Hawaii, Hawaii, and identified as "Combined Veterans Center and U Affordable Senior Housing Site, Parcel A, " containing an area of 705506_1.DOc PRE!!M APPR'D K2) o � -I r- 5. 615 5. 615 acres, more particularly described in Exhibit "A" and ( � delineated on Exhibit "C, " both of which are attached hereto and made parts hereof, said exhibits being respectively, a survey description and survey map prepared by the Survey Division, (' Department of Accounting and General Services, State of Hawaii, both being designated C. S. F. No. 25, 630 and dated September 13, 2017, and "Combined Veterans Center and Affordable Senior Housing Site, Parcel B, " containing an area of 0. 928 acre, more particularly described in Exhibit "B" and delineated on Exhibit ( . "C, " both of which are attached hereto and made parts hereof, said exhibits being respectively, a survey description and survey map prepared by the Survey Division, Department of Accounting and ( , General Services, State of Hawaii, both being designated C. S.F. No. 25, 631 and dated September 13, 2017, SUBJECT, HOWEVER, to Perpetual Non-Exclusive Utility Easement, Easement S-1 covered by ( Grant of Easement: State of Hawaii to Hilo Meishoin dated May 22, f 2017 and recorded as Document No. A-63530757 (Land Office Deed 5- 28949) . - .-I SUBJECT, HOWEVER, to the condition that upon cancellation of this executive order or in the event of non-use or abandonment of the premises or any portion thereof for a . 1 continuous period of one (1) year, or for any reason whatsoever, ( j the County of Hawaii shall, within a reasonable time, restore the premises to a condition satisfactory and acceptable to the Department of Land and Natural Resources, State of Hawaii. (, SUBJECT, FURTHER, to disapproval by the Legislature by ( j two-thirds vote of either the Senate or the House of Representatives or by majority vote of both, in any regular or ( ( special session next following the date of this Executive Order. j This executive order does not authorize the recipient �. of the set aside to sell or exchange or otherwise relinquish the State of Hawaii' s title to the subject public land. `1 (. (_I C ' 1 705506_1.Doc 2 C t✓ IN WITNESS WHEREOF, I have hereunto set my hand and r ) caused the Great Seal of the State of Hawaii to be affixed. Done at the Capitol at Honolulu this day of , averr, Ph^ , 2017 . L� (- DAVID . IGE Governor t the State of Hawaii APPROVED AS TO FORM: 1 � AMANDA: J. WESTON. Deputy Attorney General Dated: Vt-f-G /D5 2.al 1 , F.9tN1Al APPR'D. 705506 1.DOC 3 DeputmSnt of the • Aibmoy Gon®m1 • i STATE OF HAWAII Office of the Lieutenant Governor r THIS IS TO CERTIFY 'hat .the within is a true copy of ( Executive Order No. - • 4 5 3 9 setting aside land for public purposes, the original of which is on file in this office. IN TESTIMONY WHEREOF, the Lieutenant Governor of the State of Hawaii, has hereunto subscribed his name and caused the Great Seal of the State to be affixed. SHAN S. TSUTSUI Lieutenant Governor of the State of Hawaii ( DONE in Honolulu, this day of (" , A.D. 2017 ( i .l I ( ( ( \ .J • UM.APPWD. �. 705506_1.DOC 4 Deportmani of Iker Amey Geoerd ( �J1 . • ;;S✓or •,!;,- ry4 r4 s �19 9= �--, ; -ori ; STATE OF HAWAI`I n SURVEY DIVISION DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES HONOLULU ( 1. L- C.S.F.No. 25,630 September 13,2017 COMBINED VETERANS CENTER,AND AFFORDABLE SENIOR HOUSING SITE PARCEL A Waiakea, South Hilo,Island of Hawaii, Hawaii Being a portion of the Government(Crown)Land of Waiakea. } Beginning at the south corner of this parcel of land,the north corner of the intersection of Kapiolani and Kawili Streets,the coordinates of said point of beginning referred to Government Survey Triangulation Station"HALAL"being 5613.82 feet South and 6690.70 feet East,thence running by azimuths measured clockwise from True South:- 1. Along the north corner of the intersection of Kawili and Kapiolani Streets on a curve to the right with a radius of 30.00 feet,the chord azimuth and distance being: 103° 10' 42.43 feet; 2. 148° 10' 297.86 feet along the northeast side of Kapiolani Street; 3. 238° 10' 240.44 feet along Grant S-14,064 to The Protestant Episcopal Church in the Hawaiian Islands; t�ra.ln�.At�crv. of tho 4. 148° 10' 362.34 feet along Grant S-14,064 to The Protestant porti aHom°y G'221wd Episcopal Church in the Hawaiian Islands; - 1 - EXHI T "AQP I ' C\ C.S.F.No. 25,630 September 13,2017 5. 238° 10' 240.45 feet along the remainder of the Government (Crown)Land of Waiakea; 6. 328° 10' 690.20 feet along the southwest side of Ululani Street Extension; 7. 58° 10' 450.89 feet along the northwest side of Kawili Street to the point of beginning and containing an AREA OF 5.615 ACRES. r '- SURVEY DIVISION DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES STATE OF HAWAII By: 3, Gerald Z. Yonashir o Land Surveyor rk Compiled from map and desc. furn. by dlb &Associates,LLC. , Said map and desc.have been examined and checked as to form and mathematical correctness but not r on the ground by the Survey Division. :1 • MUM.RPM. Lkportment of the Mornay Gonorat -2 l I SE OF tii A,I. \059 9;-•. i c y•:��Ly: i llf (_. • STATE OF HAWAI`I SURVEY DIVISION DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES Th HONOLULU (�l C.S.F.No. 25,631 September 13,2017 COMBINED VETERANS CENTER,AND AFFORDABLE SENIOR HOUSING SITE PARCEL B Waiakea, South Hilo, Island of Hawaii,Hawaii Being a portion of the Government(Crown)Land of Waiakea, including a portion of the Abandoned Railroad Right-of-Way(30.00 feet wide). Beginning at the south corner of this parcel of land, and at the north corner of the intersection of Ululani Street Extension and Kawili Streets, the 1 coordinates of said point of beginning referred to Government Survey Triangulation Station"HALAI"being 5344.35 feet South and 7124.74 feet East,thence running by azimuths measured clockwise from True South:- 1. 148° 10' 148.34 feet along the northeast side of Ululani Street Extension; 2. 238° 10' 256.17 feet along Grant S-14,827 to Hilo Meishoin and Grant S-16,040 to Hilo Meishoin; 3. 148° 10' 11.86 feet along Grant S-16,040 to Hilo Meishoin; FREW.4. 238° 10' 15.00 feet along Grant S-16,041 to Alfred Tadashi �of Ku Haraguchi; ' y Gs EXHIBIT "Er /- ) 1 • C.S.F.No. 25.631 September 13, 2017 5. 328° 10' 160.20 feet along Grant 9139 to Herbert G.Rowland (� and Mary Elizabeth Rowland and Grant (f 9557 to Manuel M. Theodore; 6. 58° 10' 271.17 feet along the northwest side of Kawili Street C` to the point of beginning and containing an AREA OF 0.928 ACRE. ( . SUBJECT, HOWEVER,to Perpetual Non-Exclusive Utility r. Easement,Easement S-1 covered by Grant of Easement: State of Hawaii to Hilo Meishoin dated May 22,2017 and recorded as Document No.A-63530757 (Land Office Deed S-28949) as shown on plan attached hereto and made a part hereof. 5 ( • SURVEY DIVISION DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES STATE OF HAWAII By: A s. Gerald Z. Yonasbiro v1 Land Surveyor rk 1 Compiled from map and desc. .1 Earn.by dlb &Associates. Said � map and desc have been examined and checked as to form and ( 'i mathematical correctness but not I on the ground by the Survey Division. ( f OAPPR1D. f -2- I Y y 1 n Easement J cSF 12375) 9 I �— �i� osa ( Grant 10,107 to Samuel S Won ' Grant 11,663 to William H. Rill Por. of Grant 11,871 to f�e'J I 0.v to Powers of Howe'n,Ltd. "- ��a -• — OLONA STREET ...Sr".r — 2 1Perpetual Nan-Exclusive mates and VW*Easement,Easement 2 s Grunt of Easement:Slate of Hawaii to 1R ttelshol,dated Dec 24, 1997 andpd .as 4� +f'Afr+.ir�q ; as Doe li.97-180192 (LOA.5-28727)(CSF.22.374) rya to ,�J ,''r CAWG�c�gS Er ''•• it 3 (3 Grant S-14,064 to The Let Lpt ` toIW Protestant Episcopal Chung in the Hawaiian{sl00ds 6 —Groot S-16,442 to DAT tie no (CSF. 13,321) (GSE 25,403) ea •ao KaoGrn tLelo0ng7Chocck to z 1 3 • a' 44441111 _ g`x' Grant 3-14.827 to Hilo Afeishoin $$�+. Li Grant 9189 to 918 'a, ry o dl Tsukmna Hinalmlra -nj y c 238.10 244.44 -Grant 5-76041 to Cad 5-16,040 to Hilo kekl+oTn Afire• �T h �guchl W 1 (CSF.14,691) �p c�G��= J 7' CD Q[l' -1 J -�Co 9�1�Y x PARCEL A G1ar�� g x 5.615 ACRES SLeQ j M - (C.SF-25.630) I 23670'1500 3 } 748fo'11.66 • tatZT8'10' "-► 75677 '4 Grant 9139 to a ' Government (Crown) Lend es II ti,ds HerbertG.Rowland and PARCEL $ ;I Nary Elizabeth Rowfond q 0.928 ACRE 11 I (C.SF.25631) II.. Grant 9557 to / LAi fr 10 42113 ' Government(Crown)fond �I o Manuel AL Theodore -S !J 30.00 5610* — 4,5Q69 a ` ! 58'1d -- 21.17 , / t {1 `� 5673.82 S ]} Perpetual Non-Emfusim ��fl �6! G6�88 6690.70E 5344.35 5J tlbBly Easement Easement 5-1 7reA74 a Gant of date Ra Stale at Audi to Hda COMBINED V S CEi , AND '�" A IG4VJ11! STREET '+w�o Afeandn dated(day 22 2017 and recorded as Doe Na A-0530757 (LGA.,3_28949)(C.w 24.667) AFFORDABLE SENIOR HOUSING SITE PARCELS A AND B i4---) . Jots 11-1-164(17)17) Waiakea, South Milo, island of Hawaii, Hawaii C.i1 H Scale: 1 inch = 100 feet rex rteP z-0-57:07,25 SURVEY DIVISION S. and 30 DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES ScsF.No. 2b,�0 9 STATE OF HAWAII ktf s yt`mtger 13.2017 '.......... 11.0 f1..LX Sq.ft Exhibit 1 . HIV Second Amended Lease Agreement, November 3, 201 LAND COURT REGULAR SYSTEM (AREA ABOVE RESERVED FOR RECORDING INFORMATION) After Recordation, Return by ® Mail or I I Pick-up Phone#: (808) 961-8251 FILL IN NAME AND ADDRESS BELOW: Office of the Corporation Counsel (JSY) 101 Aupuni Street, Suite 325 • Hilo, Hawai`i 96720 DOCUMENT CONTAINS 5 PAGES TITLE OF DOCUMENT: SECOND AMENDED LEASE AGREEMENT PARTIES TO DOCUMENT: LESSOR: COUNTY OF HAWAII 25 Aupuni Street Hilo, Hawai`i 96720 LESSEE: HAWAI`I ISLAND VETERANS MEMORIAL, INC. P. O. Box 827 Pepe'ekeo, Hawai`i 96720 AFFECTS TAX MAP KEY: (3) 2-4-057:029 AND (3) 2-4-057:031 SECOND AMENDED LEASE AGREEMENT THIS SECOND AMENDED LEASE AGREEMENT, made this day of , 2017 (the "Effective Date"), is by and between the COUNTY OF HAWAII, a municipal corporation of the State of Hawai`i, whose principal place of business and mailing address is 25 Aupuni Street, Hilo, Hawai`i 96720 ("Lessor"), and the HAWAII nonprofit organization,veterans ISLAND VETERANS MEMORIAL, INC., a community-basedp whose mailing address is P.O. Box 827, Pepe'ekeo, Hawaii, 96783 ("Lessee"). WITNES SETH: WHEREAS,pursuant to an Executive Order approved by the State of Hawai'i Board of Land and Natural Resources on April 13, 2017 which is pending Governor David Ige's execution,the County of Hawai'i has control and management of real property identified as Tax Map Key: (3)2-4-057:29,Tax Map Key(3)2-4-057:30, and Tax Map Key (3) 2-4-057:31 for a combined veterans center and affordable senior housing with preference to veterans and spouses. WHEREAS,on August 31, 2012,Lessor and Lessee entered into a Lease Agreement for the premises described as Tax Map Keys: (3)2-4-057:029 containing an area of 0.821 acre, (3)2-4-057:030 containing an area of 5.615 acres, and (3)2-4-057:031 containing an area of 41,412 square feet, (collectively the"demised premises")more particularly described in Exhibits"A-1", "A-2", "A-3", and delineated on Exhibit"B", all of which are attached hereto and made a part hereof by reference("Lease Agreement"). WHEREAS,the term of the Lease Agreement is effective from August 31, 2012 through August 31,2017. WHEREAS, Section A(2)of the Lease Agreement provides that the parties may extend the initial term for those parcels that have commenced construction on the veterans center or veterans housing on that parcel for additional 5-year terms,upon conditions acceptable to both parties. WHEREAS,both parties presently desire to extend the term of the Lease Agreement for only Tax Map Keys: (3)2-4-057:029 containing an area of 0.821 acre and(3) 2-4-057:031 containing an area of 41,412 square feet for an additional five(5) year term beginning September 1, 2017 and ending on September 1, 2022. WHEREAS,both parties agree that all other terms and conditions of the Lease Agreement infull force and effect; remain , 2 NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the Lessor and Lessee covenant and agree that the Lease Agreement dated August 31,2012 is modified as follows: 1. Term: The term of this Lease shall be for five (5)years commencing on September 1, 2017 and ending on September 1, 2022 for only Tax Map Keys: (3) 2-4-057:029 containing an area of 0.821 acre and (3)2-4-057:031 containing an area of 41,412 square feet. 2. Rent: The Lessee hereby covenants and agrees to pay the sum of ONE DOLLAR ($1.00)per year for the term of this lease. All other terms and conditions of the Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have executed this instrument on the day and year first above written. LESSOR: COUNTY OE AWAI`I By / I J t M. OKABE Its 4/7! Managing Directo, LESSEE: HAWAI`I ISLAND VETERANS MEMCRIL, INC. - - - --� By Its 0---44 (Z'^� rJ CJl l�)i�=G cf ZPf RECOMMEND APPROVAL: DEANNA SAKO, Director Department of Finance APPROVED AS TO FORM AND LEGALITY: Deputy Corporation Counsel 3 STATE OF HAWAI`I ) ) SS. COUNTY OF HAWAI`I . ) On this q41'' day of 064-0106K , before me personally appeared Reeve NiOvn n Williams, to me personally, who being by me duly sworn, did say that he/ he is theChiC V4 of the HAWAII ISLAND VETERANS MEMORIAL, INC., and that the seal affixed to the instrument is the corporate seal of the corporation, and that the instrument was signed and sealed in behalf of the corporation by authority of its board of directors, and 2-eei& 1\1Or i/ lI l fl1 acknowledged the instrument to be the free act and deed of the corporation. ` 151t'Sefe° N•14.�'R.'', R-�%,a• �!'�• O� d'�i�' Notary Public, State of Hawaii � LEL-1 ' . c6 R61-6C: �� Live G Print name °°f✓��EF�F, °` My commission expires: 11- 12 - ig NOTARY CERTIFICATION Doc. Date: l/1111 a-1-epl No. of Pages: NotaryK Name; revice- Doc. Description: S-abilA 4rVY12t'k7( 2/ Circuit: TSI i 6�pt rye 6714 %• LAW // RA& 11\ Off 1 .. 4".;;**07/449.), Notary Signature L.-- Date o rn t9;:**.PUBL\C'.•: if�tCcc' 5 I STATE OF HAWAII ) SS. COUNTY OF HAWAII ) On this 3rd day of November, 2017, before me personally appeared WILFRED M. OKABE, to me personally known, who, being by me duly sworn, did say that he is the Managing Director of the County of Hawaii, a municipal corporation of the State of Hawaii, that the foregoing instrument was signed on behalf of the County of Hawaii by authority given to said Mayor of the County of Hawaii by Sections 5-1.3 and 13-13 of the County Charter, County of Hawaii (2016), as amended, and assigned by the Mayor to the Managing Director pursuant to Section 6-1.3(h) of the County Charter; and said WILFRED M. OKABE acknowledged said instrument to be the free act and deed of said County of Hawaii. ottlestilli. 4111-1,0A-- `\ LE /., Z-ature 4. is 70" Tg9iF JOELLE LEE 16-109 Print or Type Name iN> ,./90 t• •` Notary Public, State of Hawaii "di; �OF1NP�� My Commission Expires: 03/20/20 NOTARY CERTIFICATION Doc. Date: No. of Pages: X Undated at time of signature 5 Notary Name: JOELLE LEE Third Circuit Second Amended Lease Agreement ,��i�ii��i Doc. Description: ��% VLLE ••°;;,()T.4,9s-t i s 16-109 44; A BI.G .A . 11/03/17 �'. �',9•'•.0 ``'.qt. Z. ary Signature Date ',��• iiOFtN�o Exhibit 13`, K awili LC ease !r=erne} t �l �l fl -) ;tel r") LAND COURT SYSTEM REGULAR SYSTEM Return by Mail ( ) Pickup ( ) To: TITLE OF DOCUMENT: LEASE PARTIES TO DOCUMENT: Lessor: COUNTY OF HAWAI`I, a municipal corporation of the State of Hawaii, whose mailing address is 25 Aupuni Street, Hilo, Hawai`i 96720 Lessee: HKI KAWILI LLC, whose mailing address is 1001 Bishop Street, \ , Suite 2880, Honolulu, Hawaii 96813 Affects Tax Map Key No. (3) 2-4-057:030 This document contains pages. U 690\001\150474 1 l ;' C SUMMARY OF LEASE C TERMS OF THE LEASE Executive Order Executive Order No. 4539 Duration: Sixty-five (65) years starting from the date of execution of this Lease. Rental Charge: $10.00 per year. Utility Services: Must be paid by the Lessee. Improvements: The Lessee cannot improve the Property without prior written consent from the Lessor. Liens: Except as expressly permitted herein, neither the fee simple interest in the Property nor the leasehold (, interest shall become subject to any attachment, lien, charge or encumbrances without prior written consent of the Lessor. Liability Insurance: The Lessee shall, at its own expense, obtain a minimum of$2,000,000 liability insurance.- Fire Insurance: The Lessee shall, at its own expense, obtain fire insurance for full replacement cost of (� improvements. _ Maintenance: The Lessee shall, at its own expense, perform all necessary maintenance of the Premises. Condition of Premises: The Lessee has examined and is familiar with the condition of the Property and acknowledges that the - `__ Lessor is not responsible for the present or future ( condition of the Premises. Notice: When the Lessor's consent or approval is required under this Lease, the Lessee shall contact the Housing Administrator. Use: The Lessee shall use the Premises solely to provide affordable rental housing and supportive services L. and related uses for senior citizens (62 years of age L, 690\001\150474 2 i C • or older)with a preference to: (a) veterans and their spouses; and(b) spouses of deceased veterans. i Non-Profit Status: The Lessee or the Lessee's member with management authority shall maintain status as a tax- • exempt, non-profit organization as certified by the IRS. �1 Note: The attached Lease provides more information and details regarding the provisions summarized above. In the event of any conflict between this summary and the attached Lease, the terms of the Lease shall govern. • 690\001\150474 3 C TABLE OF CONTENTS LEASE FOR HKI KAWILI, LLC PARAGRAPH PAGE A. THE LESSOR COVENANTS AND AGREES WITH THE LESSEE: 1. Executive Order 1 (" 2. Quiet Enjoyment 2 (" 3. Term 2 4. Rent 2 5. Financing Contingency 2 6. Operation of Premises 3 B. THE LESSEE COVENANTS AND AGREES WITH THE LESSOR: 1. Utility Services 3 i. 2. Covenant Against Discrimination 4 3. Sanitation, etc. 4 4. Waste and Unlawful, Improper or Offensive t Use of Premises 4 5. No Hazardous Materials 5 (. (r 6. Compliance With Laws, etc. 5 7. Improvements 5 8. Liens 7 9. Assignments, etc. 7 c ( 10. Mortgage 8 11. Indemnity 15 12. Liability Insurance 15 ; 13. Fire Insurance 16 690\001\150474 ;� ,-Th 14. Workmen's Compensation 20 15. Automobile Insurance 20 ,-� 16. Costs of Litigation 21 (� 17. Entry by Lessor 21 r�) ' - 18. Contracts for Construction 22 19. Condition of Premises 22 �) 20. Notice 22 • ') 21., Maintenance 23 ' ) 22. Use 24 23. Records 24 • ) 24. Non-Profit Status 24 T 25. Surrender 25 • ) 26. Non-Waiver 25 • ) 27. Holdover 25 28. Abandonment 25 } 29. Subdivision of the Property 26 C. IT IS HEREBY UNDERSTOOD AND AGREED BY THE PARTIES: 1. Destruction, etc. 26 2. Condemnation 26 ! 3. Breach 27 4. Limited Partner Provisions 27 5. Reasonable Cooperation 28 6. Headings 28 690\001\150474 ii 7. Complete Agreement; Hawaii Law; Severability 29 8. Lessee Not an Agent of Lessor 29 ( <-1 ( { 690\001\150474 iii r-- LEASE THIS LEASE, made this day of , 2018, by and between the COUNTY OF HAWAII, a municipal corporation of the State of Hawai`i, whose mailing address is 25 Aupuni Street, Hilo, Hawai`i 96720, hereinafter referred to as the Lessor, and HKI KAWILI LLC, a Hawai`i limited liability company, the sole member of which is Hui Kauhale, Inc., a Hawaii nonprofit corporation, whose mailing address is 1001 Bishop Street, Suite 2880, Honolulu, Hawai'i 96813, hereinafter referred to as the Lessee; WITNESSETH: That the Lessor, for and in consideration of the rent to be paid and of the terms, covenants, and conditions herein contained on the part of the Lessee to be kept, observed and performed, does hereby demise and lease unto the Lessee, and the Lessee does hereby lease and hire from the Lessor the premises more particularly described in Exhibit A, attached hereto and made a part hereof, Tax Map Key No. (3) 2-4-057:030 (hereafter referred to as "Property") situated at the corner of Kapi'olani and Kawili Streets, across from Waiakea High School, at Waiakea, South Hilo, County and State of Hawai'i. The Property, together with all improvements to be constructed and owned in fee simple by the Lessee as provided in this Lease, are collectively referred to as the "Premises". A. THE LESSOR COVENANTS AND AGREES WITH THE LESSEE: 1. Executive Order. Pursuant to Executive Order No. 4539 approved by the State of Hawai'i Board of Land and Natural Resources on April 13, 2017 and executed by Governor David Ige on November 3, 2017 (the "Executive Order"), the County of Hawai'i has control and management of the subject Property for the purpose of affordable senior 690\001\150474 - rental housing with preference to: (a) veterans and their spouses; and (b) spouses of deceased veterans. Both the Lessor and the Lessee understand that the Lessor's authority to enter into this Lease is subject to the Executive Order and the approval of the State of Hawai'i Board of Land and Natural Resources. 2. Quiet Enjoyment. That the Lessor hereby covenants and agrees with the C (- Lessee that upon the observance and performance of the covenants, terms and conditions hereof on the part of the Lessee to be observed and performed, the Lessee shall and may have, hold, _ possess and enjoy the Premises for the term hereby demised, without hindrance or interruption ( by the Lessor or any other person or persons lawfully claiming by, through and under it, except for the Lessor's right of entry to make repairs, improvement and inspections as set forth herein. ( 3. Term. The term of this Lease shall be for a period of sixty-five (65) years, commencing as of the date of this Lease, or unless sooner terminated by either the Lessor or �. .. the Lessee in accordance with the terms of this Lease. 4. Rent. The Lessee hereby covenants and agrees to pay the sum of ten dollars ($10.00) per year ("Rent") for the term of this Lease. The first payment of Rent shall be made ( within ten (10) business days of upon full execution of the Lease, and thereafter, on the anniversary date of the Lease date. All Rent payments shall be made to the addressee in 'Paragraph B.20 herein. 5. Financing Contingency. Notwithstanding any provision to the contrary in this ( Lease, this Lease is subject to the Lessee obtaining sufficient loan proceeds for construction t and permanent financing from various programs administered by the Hawaii Housing and ( ., Finance Development Corporation, including but not limited to, the Hula Mae Multi-Family Revenue Tax-Exempt Bond Project, the Low Income Housing Tax Credit Program (LIHTC), �..._, 690\001\150474 2 f and the Rental Housing Revolving Fund, and other private and public sources, grant proceeds and capital contributions, as applicable, to pay for the total estimated cost to develop, construct and equip the Project (as defined below), including a developer fee (the "Financing r"1 Contingency"). The Lessee shall have the right to terminate this Lease upon written notice to f the Lessor if the Financing Contingency is not satisfied or waived in writing by the Lessee as of the third (3rd) anniversary of the date of this Lease (the "Financing Contingency Deadline"); provided that the Financing Contingency Deadline shall be automatically extended for one (1) year pursuant to written notice delivered to the Lessor by the Lessee prior to the expiration of the Financing Contingency Deadline, and thereafter further extended as may be mutually agreed upon by the parties. If the Lessee fails to provide written notice either waiving the Financing Contingency or terminating this Lease on or before the expiration of the Financing Contingency Deadline, as may be extended, then the Lessee shall be deemed to have terminated this Lease. In the event that the Lessee terminates this Lease or is deemed to have terminated this Lease pursuant to this paragraph A.5, then the Lessee shall surrender possession of the Premises to the Lessor as of the effective date of such termination in accordance with this Lease, whereupon the parties shall have no further rights, duties or obligations to each other under this Lease, except for those obligations which expressly survive the expiration or termination of this Lease. 6. Operation of Premises. The Lessee acknowledges and agrees that the Lessee shall be solely responsible for payment of all costs and expenses relating to the operation, repair and maintenance of the Premises in accordance with the terms of this Lease and that the Lessor shall have no obligation under this Lease to provide financial support to the Lessee to subsidize the Lessee's operating costs and expenses for the Premises. 690\001\150474 3 L B. THE LESSEE COVENANTS AND AGREES WITH THE LESSOR: 1. Utility Services. That the Lessee shall pay when due all utility charges, connections, duties and rates of every description, including water, sewer, gas, electricity, refuse collection or any other charges related to the Premises or any improvements thereon during the term of this Lease. 2. Covenant Against Discrimination. That the Lessee acknowledges and agrees that the nondiscrimination clauses set forth in County of Hawaii Executive Order No. 142 (Nondiscrimination in County Contracts) ("County Contract Nondiscrimination Clauses"), a ( , complete copy of which is attached hereto as Exhibit B, are hereby incorporated into this Lease by this reference. The Lessor and the Lessee acknowledge and agree that "contractor's noncompliance", as used in paragraph(4) of the County Contract Non- Discrimination �._.. Clauses, means that a federal, state or county agency having jurisdiction over such matters or a court of competent jurisdiction has determined that the Lessee is not in compliance in a material respect with the County Contract Nondiscrimination Clauses. 1. 3. Sanitation, etc. That the Lessee shall keep the Premises in a strictly safe, t - i clean, sanitary and orderly condition, in compliance with all applicable laws, rules and regulations of the county, state and federal governments. 4. Waste and Unlawful, Improper or Offensive Use of Premises. That the ( Lessee shall not commit, suffer or permit to be committed any waste, nuisance, strip, or unlawful, improper or offensive use of the Premises, or any part thereof, nor, without the prior written consent of the Lessor, cut down, remove or destroy, or suffer to be cut down, removed or destroyed, any trees now growing on the Premises, except with prior written { 690\001\150474 4 L approval of the Lessor and upon such conditions as the Lessor may impose in writing, unless 'tel otherwise provided herein. Notwithstanding any provision to the contrary in this Lease, approval by the Lessor of the Lessee's construction drawings for submittal for a building permit for the Lessee's improvements to the Premises which include the trimming, removal, fl and/or relocation of any trees now growing on the Premises, shall serve as the Lessor's written approval of the trimming, removal and/or relocation of any trees now growing on the Premises, unless such trees are designated as Exceptional Trees of the County of Hawaii pursuant to section 14-65 of the Hawai'i County Code 1983 (2016 Edition, as amended). 5. No Hazardous Materials. The Lessee shall not bring, cause or permit the escape, disposal, or release on, within, under, or about the Premises of any "hazardous materials," "hazardous substances," "hazardous wastes," "extremely hazardous wastes," or "toxic substances" (collectively, "hazardous materials"), as such terms are defined in any federal, state, or county laws, statutes, ordinances, rules, and regulations (collectively "Environmental Laws"), that is in violation of applicable Environmental Laws. The Lessee agrees to indemnify, defend, and hold the Lessor harmless from any damages and claims resulting from the release of hazardous materials on the Premises in violation of any Environmental Laws occurring as a result of the Lessee exercising its rights under this Lease. 6. Compliance With Laws, etc. That the Lessee shall comply with all of the requirements of all county, state and federal authorities and observe all county ordinances and state and federal laws, pertaining to the Premises, and pertaining to the Lessee's activities, now in force or which may hereinafter be in force, and comply with all applicable licensing requirements of the state and federal governments. tea; 7. Improvements. That the Lessee shall not, at any time during said term, 690\001\150474 5 C construct, place or install on the Premises, any building, structure or improvement of any kind and description whatsoever, except with prior written approval of the Lessor and upon such conditions as the Lessor may impose in writing, unless otherwise provided herein; provided C . that the Lessor's approval shall not be unreasonably withheld, conditioned or delayed. The Lessee shall supply all information and documents as the Lessor may require to perform its (. review. The Lessor and the Lessee recognize that, subject to satisfaction of the Financing Contingency, the Lessee intends to construct buildings and related improvements for an affordable senior rental complex consisting of approximately sixty-eight (68) units (the "Project") on the Premises and that the Lessee shall submit the proposed schematic plans for the buildings and improvements, including the site plan, building elevations, and the floor plans for the units and community building (collectively, "Schematics") for review by the ( ' Lessor as the manager of the Property pursuant to HRS §171-11. The Lessor shall with reasonable promptness provide the Lessee with any specific comments to the Schematics; provided that the Lessor's approval of the Schematics shall not be construed to constitute a representation or warranty by the Lessor that the Schematics comply with any applicable (- federal, state or county law, rule, regulation, code or ordinance. After obtaining the Lessor's approval of the Schematics,'the Lessee shall cause the preparation of construction drawings ( " for the Project that are substantially consistent with the approved Schematics and shall thereafter seek to obtain any regulatory approvals or permits required to develop the Project in compliance with applicable federal, state and county laws or regulations, including those from County of Hawai`i agencies. The Lessor agrees to provide such information and/or authorization as may be required in connection with the Lessee applying for such regulatory approvals or permits. (. C. 690\001\150474 6 .1 8. Liens. a. That the Lessee will keep and maintain the Premises free and clear of ) all mechanic's and materialmen's liens and, in the event any lien is filed against the Premises or any improvements thereon, will indemnify and save harmless the Lessor from ^l all loss, cost and expense with respect thereto and will, prior to the construction of any improvements on the Premises, deposit with the Lessor a certificate or other evidence satisfactory to the Lessor that the contractor constructing such improvements has obtained a bond with a surety approved by the Lessor, guaranteeing the construction of the ) improvements free and clear of all mechanic's and materialmen's liens. b. That the Lessee will not commit or suffer any act or neglect whereby ) the Premises or any improvements thereon or the estate of the Lessee in the same shall ) become subject to any attachment, lien, charge, or encumbrance whatsoever, except as hereinafter provided, and shall indemnify and hold harmless the Lessor from and against all ( ) ) attachments, liens, charges and encumbrances and all expenses resulting therefrom. 9. Assignments, etc. That the Lessee shall not transfer, assign or sublease the i Premises or any portion thereof, nor permit any other person to occupy or use the Premises or any portion thereof, except in furtherance of the uses expressly permitted in paragraph B. 22 herein and, except to the extent permitted in this paragraph B.9, shall not transfer or assign or sublease this Lease or any interest therein, either voluntarily or by operation of law without the t.._) Lessor's prior written consent, and any transfer or assignment so made shall be null and void without such consent. The Lessor declares that it enters into this Lease on reliance on the specific identity of the Lessee. Notwithstanding any provision to the contrary in this Lease, _, Lessee may assign its interest in this Lease to a partnership in which the Lessee, as presently 690\001\150474 7 {..._\ constituted as of the date of this Lease, is the general partner(a"Permitted Transferee"), with management control of said entity (a"Permitted Transfer");provided that (a) the Lessee shall provide the Lessor with documentation reasonably evidencing that such assignment qualifies as a ( Permitted Transfer; and(b)pursuant to an assignment instrument executed by the Lessee and the Permitted Transferee, the Permitted Transferee shall assume all of the duties and obligations of ( .,. the Lessee under this Lease from and after the effective date of the Permitted Transfer. This paragraph B.9 shall not apply to the Lessee's issuance of residential tenant leases for the use and occupancy of units in the Project in the ordinary course of business and in furtherance of the Lessee's permitted use under paragraph B.22 of this Lease. 10. Mortgage. That the Lessee shall not mortgage, hypothecate or pledge the (- Premises, Premises, or any portion thereof or this Lease or any interest therein, without the prior written consent of the Lessor. Any mortgage to which Lessor has so consented is referred to herein as an "Approved Mortgage". Any mortgage, hypothecation or pledge without such consent shall be null and void. a. The Lessee shall obtain the prior written consent of the Lessor to the assignment of lease or mortgage of the Lessee's interest in this Lease,together with its right, ( - title and interest in and to the Project, and any and all other improvements, fixtures and personal property of the Lessee now or hereafter placed thereon, to secure fmancing for the construction of the Project("Financing Mortgage") and to record associated regulatory agreements as may be required by the Lessee's lenders or other parties, against the title to the Premises. (A Financing Mortgage or Approved Mortgage, are individually and collectively referred to herein as a "Permitted Mortgage".) With respect to any such request for consent, the Lessee will submit its (. written request for consent to the Lessor and furnish the Lessor with a copy of such { 690\001\150474 8 n instrument(s), including the proposed mortgage within thirty (30) days after the same is executed by the Lessee. If the Lessor consents to such request, then the mortgagee or holder under the approved mortgage shall be authorized to record this Lease (or a short form thereof) ~1 and the approved mortgage and associated regulatory agreements in the Bureau of Conveyances 1 of the State of Hawai`i (if the demised land is regular system property) or the State of Hawai`i 'J) Land Court(if the demised land is Land Court property). From and after the date of recordation l of the approved mortgage in the Bureau of Conveyances or Land Court of the State of Hawaii, -,} as applicable, such approved mortgage shall be deemed to be a"Permitted Mortgage"under this Lease and the mortgagee under the Permitted Mortgage shall be deemed to be a"Permitted Mortgagee"under this Lease. A Permitted Mortgagee may enforce such Permitted Mortgage and acquire title __ ) to the leasehold and any removable improvements in any lawful way, rent the Premises pending foreclosure and acquisition and disposal of title; and the Permitted Mortgagee under a Permitted Mortgage and the Permitted Mortgagee's assignees or designee or anyone taking by,through of under any Permitted Mortgage may sell and assign the leasehold and the improvements thereon, subject to the terms and provisions of this Lease, or may sublet the Premises in whole or in part, and any assignee of the Permitted Mortgagee may mortgage this Lease to the Permitted J Mortgagee, or any other established lending institution as mortgagee, to finance the purchase of this Lease. Any person acquiring the leasehold estate in consideration of the extinguishment of the debt secured by the Permitted Mortgage or through foreclosure sale,judicial or otherwise, or any party claiming by, through or under any such person, and any subsequent holder of the leasehold estate shall be liable to perform the obligations imposed upon the Lessee by this Lease, but only during the period such person or party has possession or ownership of the _ 1 690\001\150474 9 `l� I C C leasehold estate and shall be recognized by the Lessor as the lessee hereunder. When giving notice to the Lessee with respect to any default hereunder, the Lessor shall also deliver a copy of such notice to any Permitted Mortgagee who shall have given the Lessor a written notice specifying its name and address. During the existence of any Permitted Mortgage, the Lessor will not exercise the Lessor's right to terminate this Lease by reason of the occurrence of any of the events of default set forth in this Lease, if the Permitted Mortgagee, within sixty (60) days (or such longer period of time as may be approved by the Lessor) after the Lessor has mailed to the Permitted Mortgagee at its last known address a written notice of intention to terminate this Lease for such cause, shall either remedy such default, if the default can be cured by the payment of money, or if such is not the case, shall undertake in writing to perform all covenants of this Lease capable of performance by the Permitted Mortgagee until such time as this Lease shall be assigned upon foreclosure pursuant to such Permitted Mortgage (or assignment in lieu ( - of foreclosure). If such default shall be the failure of the Lessee promptly to discharge or cause to be discharged any lien, charge or encumbrance which may be filed against the Premises or any improvements thereon,junior in priority to such Permitted Mortgage or other default not susceptible to being cured by the Permitted Mortgagee,the Permitted Mortgagee may cure such default by accomplishing the foreclosure of such Permitted Mortgage and such default shall be deemed to be cured within such period of sixty (60) days, if such foreclosure shall be accomplished through proceedings or action instituted within said period and thereafter prosecuted in a diligent and timely manner, subject to any stay in any proceedins involving the insolvency of the Lessee or other proceeding or injunction (unless in the meantime the ( " c Permitted Mortgagee shall have acquired the Lessee's estate hereunder, either in its own name or through a nominee, by assignment in lieu of foreclosure). 690\001\150474 10 n b. In the event of the commencement of a bankruptcy proceeding by or against the Lessee, the Permitted Mortgagee shall have the option, and the Lessor shall recognize the Permitted Mortgagee's right, within the statutory time period or any extension thereof provided under Section 365 of the Bankruptcy Code for the rejection or assumption of this Lease, to obtain or cause the Lessee and/or trustee in bankruptcy to obtain: n (i) An extension of the period during which this Lease may be assumed or rejected; or S (ii) An abandonment of the leasehold estate by the Lessee and/or trustee in bankruptcy court pursuant to Section 554 of the Bankruptcy Code, as amended; or (iii) An assumption of this Lease pursuant to Section 365 of the ) Bankruptcy Code, as amended. . ) In the event of the termination of this Lease by reason of a default by the Lessee in 1 accordance with this Lease, or commencement of a bankruptcy proceeding by or against the ) Lessee, the Lessor agrees and acknowledges for the exclusive benefit of the Permitted Mortgagee and any person or entity acquiring an interest in this Lease or in lieu of the foreclosure of the Permitted Mortgage, that such termination of this Lease or the actual or deemed rejection or disaffirmance of this Lease under Section 365 of the Bankruptcy Code (11 United States Code section 365) or any other law having similar effect shall not effect a n termination of this Lease or affect or impair the Permitted Mortgagee's lien thereon or rights with respect thereto (provided however that this provision is not intended and shall not be deemed to confer any rights or benefits upon the Lessee or the Lessee's bankruptcy trustee), and '—� upon the written request of the Permitted Mortgagee delivered to the Lessor within thirty (30) ) days following the Permitted Mortgagee's receipt of written notice of such termination or actual 690\001\150474 11 or deemed rejection of this Lease, the Lessor will, at the option of the Permitted Mortgagee, execute and deliver to the Permitted Mortgagee or its designee (1) an instrument recognizing, C confirming and giving legal effect to the continued existence of this Lease, with its original validity and priority, or(2) a new lease of the Premises in favor of the Permitted Mortgagee or its designee, (in either event, hereinafter called the "Mortgagee's Lease"), subject to the lien of CT ( \ the Permitted Mortgage and any lien or encumbrance prior to the lien of the Permitted \ Mortgage,upon and subject to the following terms and conditions: (a) The Permitted Mortgagee shall pay or cause to be paid to Lessor at the time of the execution and delivery of the Mortgagee's Lease, any and all sums which are at the time of execution and delivery thereof due under this Lease and, in addition thereto', all reasonable expenses, including reasonable attorneys' fees, which the Lessor shall have incurred by reason of the termination or actual or deemed rejection of this Lease and l' execution and delivery of the Mortgagee's Lease; - (b) The Mortgagee's Lease shall be effective as of the date of �. termination or the actual or deemed rejection of this Lease, and shall expire on the last day of the term of this Lease, at the same rent, and upon the same terms, covenants and conditions of this Lease and of any amendment or modification thereof; (c) The lessee under the Mortgagee's Lease shall undertake, by accepting the Mortgagee's Lease, to perform all covenants and conditions of the Mortgagee's r .. Lease. The lessee under the Mortgagee's Lease may assign the Mortgagee's Lease and the lessee under the Mortgagee's Lease, if such lessee is a mortgagee, or a wholly-owned subsidiary of a mortgagee, shall thereupon be released from all liability for the performance or observance of the covenants and conditions in the Mortgagee's Lease contained and on lessee's part L. 690\001\150474 12 _ thereunder to be performed and observed from and after the date of such assignment, provided that a certified recorded copy of such assignment be provided to the Lessor; (d) The lessee under such Mortgagee's Lease shall be entitled } to and shall have the same right, title and interest in and to the Premises and the buildings and improvements thereon as the Lessee had under this Lease prior to its termination or rejection and the Lessor shall use its best efforts to obtain the cooperation of all parties in interest such that any Mortgagee's Lease made pursuant to this Lease shall be prior to any mortgage or other lien, charge or encumbrance on the fee of the Premises, which mortgage, lien, charge or ) encumbrance was junior to this Lease; (e) The lessee under such Mortgagee's Lease may mortgage its interest in the Mortgagee's Lease to the mortgagee under one or more new mortgages, and all of the lessee's agreements under this Lease with respect to the Permitted Mortgage shall apply equally to the new mortgagee, provided that a certified recorded copy of such assignment be provided to the Lessor; and (f) No provision contained in this Lease shall be construed as authorizing the Lessee to encumber in any way the Lessor's management interest in the Premises or the State's fee simple interest in the Premises. The rights to a Mortgagee's Lease } by any Permitted Mortgagee as set forth above shall survive any termination of this Lease. c. The Lessor and the Lessee agree that, without the prior written consent of the Permitted Mortgagee (which consent shall not be unreasonably withheld, conditioned or ) delayed), neither the Lessor nor the Lessee shall have the right to (i) enter into any agreement amending, modifying, terminating or waiving any material provision of this Lease (except as otherwise provided in this Lease), or (ii) cancel or terminate or agree to a cancellation or 690\001\150474 13 termination or surrender of this Lease (except in the event of default by the Lessee and provided I' the Permitted Mortgagee shall have been provided with written notice and opportunity to cure such default as provided in paragraph B.10.a hereof). Any actions described under this paragraph B.10.c. taken by the Lessor without Permitted Mortgagee's prior written consent �~ the event of default the Lessee (— (except inn by and provided the Permitted Mortgagee shall have been provided with written notice and opportunity to cure such default as provided in paragraph B.10.a hereof) shall be voidable by Permitted Mortgagee. d. In the event of any breach by the Lessee under the Lease or default under any loan documents executed in connection with the Permitted Mortgage ("Loan Documents"), the Lessor will allow the Permitted Mortgagee to enforce its lien and security interest in the Lessee's personal property located at the Premises and the Lessor will allow the Permitted Mortgagee to assemble and remove all of the Lessee's personal property located on the Premises. The Lessor hereby agrees to subordinate any lien the Lessor might hold, whether statutory, constitutional, contractual or otherwise, in any personal property owned or leased by the Lessee and now or hereafter located on the Premises,to the lien or security interest in favor of any Permitted Mortgagee. If so requested by the Lessee, the Lessor shall execute a subordination agreement subordinating any right, title or interest or right to seize any of the Lessee's personal property on the Premises to the lien or security interest in favor of any Permitted Mortgagee. e. For as long as any Permitted Mortgage is in existence, there shall be no merger of the leasehold estate created by this Lease and the fee estate in the Property merely (. because both estates have been acquired or become vested in the same person or entity, unless Permitted Mortgagee otherwise consents in writing. In the event there are more than one '_- i 690\001\150474 14 �1 r^•� Permitted Mortgagees, each may exercise its respective rights under this Lease and if there is a conflict that renders it impossible to comply with all requests of the Permitted Mortgagees, the Permitted Mortgagee whose Permitted Mortgage would have senior priority in the event of a foreclosure shall prevail. f. The Lessor agrees to provide estoppel certificates within thirty (30) days of request by the Lessee or Permitted Mortgagee, to establish that there have been no '� unapproved material modifications to this Lease, that this Lease is in full force and effect, that there are no known defaults, the date through which rent has been paid, and such other matters as may be reasonably requested by the Lessee or Permitted Mortgagee. 11. Indemnity. That, except to the extent caused by the gross negligence or willful misconduct of the Lessor, the Lessee will indemnify, defend and hold the Lessor and the State of Hawai'i harmless: (a) from and against any claim or demand by third persons for loss, liability or damage, including claims for property damage, personal injury or wrongful death,to the extent arising out of any accident on the Premises or occasioned by any negligence or willful misconduct of the Lessee, any act or nuisance made or suffered on the Premises, or by any fire thereon or growing out of or caused by any failure on the part of the Lessee to maintain the Premises in a safe condition, and will reimburse the Lessor for all reasonable costs and expenses incurred in connection with the defense of such claims. 12. Liability Insurance. That the Lessee shall procure, at its own cost and expense, and maintain during the entire period of this Lease, with an insurance company or companies acceptable to the Lessor, a policy of comprehensive liability insurance, with minimum amounts of$2,000,000.00 per occurrence for bodily injury and property damage, insuring against all claims for bodily injury, death and property damage; that said policy or policies shall cover the 690\001\150474 15 entire Premises, including all buildings, improvements and grounds. The Lessee shall furnish the C Lessor with a certificate showing such policy to be initially in force and shall furnish a like certificate upon each renewal of such policy, each such certificate to contain or be accompanied by an assurance of the insurer to notify the Lessor of any intention to cancel any such policy prior to actual cancellation. The procuring of this policy shall not release or relieve the Lessee of its responsibility under this Lease as set forth herein or limit the amount of its liability under this Lease. The Lessee shall cause the County of Hawai`i, and State of Hawai`i to be named as "additional insureds" on the above comprehensive liability insurance policy in addition to any Permitted Mortgagee. The policy shall have a deductible of not more than $25,000.00 per claim. 13. Fire Insurance. a. The Lessee shall be responsible for and insure all improvements and contents within the Premises, with the exception of the personal property of the Lessee's tenants. The Lessor shall not be responsible for the protection or safekeeping of any of the Lessee's improvements or contents. t. b. The Lessee shall name the Lessor as additional insured on the Premises and shall insure the structure and common areas against loss or damage by fire, including extended coverage, in an amount equal to full replacement cost without deduction or depreciation. The Lessee shall provide the Lessor with certificates of insurance from time to time to show that said insurance remains in full force and effect. The Lessee shall obtain commitments from its insurer that said insurance will not be cancelled or reduced unless the Lessor has been given thirty (30) days' notice, sent to the Lessor by certified or registered mail, postage prepaid. c. Payment of Insurance Proceeds. Every policy of such insurance,shall be 690\001\150474 16 \_1 issued to cover and insure all of the several interests in such buildings, fixtures and improvements of the Lessor and the Lessee and any Permitted Mortgagee under any Permitted Mortgage of this Lease, as their respective interests shall appear, and shall be made payable in case of loss or damage to the Lessee, as trustee of all proceeds of such insurance to be used as described below. d. Use of Insurance Proceeds. In case such buildings, fixtures or other improvements, or any part thereof, shall be destroyed or damaged by fire or other casualty herein required to be insured against, then, and as often as the same shall happen, subject to the terms of any Permitted Mortgage, all proceeds of such insurance, including the interest therein of the Lessor shall be available for and used with all reasonable dispatch by the Lessee in rebuilding, repairing or otherwise reinstating such buildings, fixtures and other improvements in a good and substantial manner according to the original plans and elevations thereof, or according to such modified plan conforming to laws and regulations then in effect as shall be approved in writing by the parties hereto and any Permitted Mortgagee, and in case such proceeds shall be insufficient in amount to so rebuild, repair or reinstate such buildings, fixtures and other improvements, the Lessee shall make up the deficiency for such purpose out of the Lessee's own funds; PROVIDED, HOWEVER, that if(A)the restoration of such buildings, fixtures and other improvements to substantially their same size and function as immediately prior to such casualty shall be prevented by any laws or regulations then in effect, or (B) such loss shall occur in the last fifteen(15)years of the term of this Lease,then the Lessee, in lieu of making up the deficiency, shall have the right, at its option, to surrender this Lease if the Lessee complies with all of the following conditions: (i) • gives written notice of its intention to surrender the Lease to the 690\001\150474 1\1 0474 1'] ( - Lessor within thirty (30) days after determining the insufficiency of such insurance proceeds; (ii) is not in material default under any provision or condition of this Lease on the date of surrender; (iii) promptly removes from the Premises all remains of such buildings, fixtures and other improvement and all debris resulting from such casualty and restores the land (- to good and orderly condition and even grade; (iv) pays the real property taxes for the whole fiscal year in which this Lease is surrendered and all rent and other charges hereunder for the whole calendar year in which this Lease is surrendered, and performs all other obligations of the Lessee hereunder up to the date of surrender; r (v) pays in full the indebtedness secured by any Permitted Mortgage on this Lease, using such portion of the insurance proceeds as shall be necessary to pay and (, discharge the indebtedness and in case such proceeds are insufficient in amount to satisfy the indebtedness, the Lessee shall make up the deficiency out of Lessee's own funds; �. (vi) causes to be discharged all liens and encumbrances resulting from any act or omission of Lessee; and (vii) causes to be surrendered and terminated all subsisting subleases and rental agreements on any part of the Premises. Upon the Lessee's satisfaction of conditions (i)to (vii) above, the Lessee shall be relieved of all further obligations under this Lease and any remaining insurance proceeds (that is, ( the balance remaining after deducting the amounts used in satisfying conditions (iii)through (v) ( l above) shall be divided between and payable to the Lessor and the Lessee as follows: (a) the interest of the Lessor in such insurance proceeds shall be a proportionate amount thereof in the (._ 690\001\150474 1$ ratio which the expired portion of the term of this Lease from the date of original completion of such buildings, fixtures and improvements to the date of such loss or damage bears to the portion " } of such term from the date of original completion of such buildings, fixtures and improvements to the date of expiration of the term of this Lease; and (b) the interest of the Lessee therein shall be the balance of such proceeds. The interest of any Permitted Mortgagee whose loan exceeds or is not covered by the Approved Mortgage Limit(as hereinafter defined) shall be limited to only H the interest of the Lessee under clause (b) above, and in no event shall such Permitted Mortgagee , be entitled to,claim any portion of the Lessor's interest under clause (a) above after the Approved Mortgage Limit has been fully exhausted to pay the loan indebtedness of any Permitted Mortgagee. As used in this subparagraph,the term "Approved Mortgage Limit" shall mean the total amount of loan indebtedness secured by Permitted Mortgages, the proceeds of which have been used to pay for the costs of acquiring, developing, constructing and equipping the Premises (including"soft costs" such as architect's, engineer's and consultant's fees, "hard costs" of constructing or renovating anyimprovements on the Premises, and construction loan interest), and any refinancing of such loan indebtedness shall also be counted towards the Approved Mortgage Limit. The"costs of acquiring, developing, constructing and equipping the Premises" shall be liberally construed, but the Approved Mortgage Limit shall not include the amount of working capital loans or that portion of any refinancing loans which represents appreciation equity over and above the Lessee's costs of acquiring, developing, constructing and equipping the Premises. At the request of the Lessee or the Lessee's Permitted Mortgage,the Lessor shall provide a written statement confirming the Approved Mortgage Limit with respect to such Permitted Mortgagee's Permitted Mortgage on the Premises. 690\001\150474 19 C e. Limitation on Use. The Lessee shall not store or place any material, or - (� conduct any business on the Premises which will cause Lessor's insurance policy to be canceled, ( or the rates to be increased from the normal rate for the business. ( , C 14. Workmen's Compensation. The Lessee shall, in accordance with Hawai`i Worker's Compensation Law, HRS Chapter 386, "Employers Liability", shall secure adequate workers' compensation and employers' liability insurance with minimum limits of$100,000 (bodily injury per occurrence) for all of its employees who will be engaged in work at the site of the Project, and in case any part of the Premises is sublet,the Lessee will require his contractor and subcontractors to maintain such insurance for all employees who will be so engaged, unless ( I the latter's employees are protected by the principal Lessee's insurance. The policy shall remain in full force and effect for the term of this Lease and which further names the County of Hawai`i and its officers and employees as an additional insured. The limits required under this Lease may not be adequate and any limit requirement contained in this Lease shall not act as a limitation of the Lessee's indemnification obligation under this Lease and/or liability thereunder. (. . 15. Automobile Insurance. The Lessee shall secure adequate automobile liability insurance policy with minimum limits of$100,000 (bodily injury per person) / $300,000 (bodily ( injury per occurrence)/$100,000 (property damage per occurrence) coverage (assuming the Lessee will be using vehicle(s) in performance of its duties and obligations under this Lease), ( _ which policy shall remain in full force and effect for the term of this Lease and which further ( names the County of Hawai`i and its officers and employees as an additional insured. The limits required under this Lease may not be adequate and any limit requirement contained in this Lease ( shall not act as a limitation of the Lessee's indemnification obligation under this Lease and/or liability thereunder. L 690\001\150474 20 C L : 16. Costs of Litigation. That in case the Lessor shall be made a party to any litigation commenced by or against the Lessee (other than condemnation proceedings or any ') action to enforce the covenants and agreements of Lessor under this Lease), the Lessee shall and will pay all reasonable costs and expenses incurred by or imposed on the Lessor; furthermore, �� II the Lessee shall and will pay all reasonable costs and expenses which may be incurred by or paid by the Lessor in enforcing the covenants and agreements of this Lease, in recovering possession of the Premises or in the collection of delinquent rental, taxes and any and all other 1 charges. 17. Entry by Lessor. That the Lessee shall permit the Lessor, its agents and invitees, or independent contractors hired by the Lessor, to enter on the common areas of the ) Premises, at all reasonable hours, for the purpose of inspecting same, including inspections related to the services provided at the Premises, upon the Lessor or its agent giving not less than 24 hours' notice of entry, except that in case of emergency, no notice need be given for ) entry. That the Lessee shall cooperate with the Lessor to the fullest practical extent in permitting the Lessor to make such inspections. That dny temporary diminution in or interference with the use of the common areas of the Premises by the Lessee occasioned by such inspections which are conducted in accordance with this Section 17 and in compliance with all applicable laws, rules and regulations, shall not be a breach of this Lease, and shall not result in any liability to the Lessor. Nothing in this paragraph shall be construed as requiring the Lessor to make any inspections of the common areas of the Premises. Notwithstanding the foregoing, Lessor reserves the right to conduct inspections of individual units as may be required to comply with applicable laws, rules and regulations from time to time; provided that such inspection of an occupied unit in the Premises shall at all times be 690\001\150474 21 ( . 1' conducted by Lessor in accordance with the advance notice and other requirements of the Residential Landlord-Tenant Code under Chapter 521 of the Hawai'i Revised Statutes, as may be amended. 18. Contracts for Construction. That the Lessee shall not make any contract for construction, repair, renovation or improvement on, in, of, or to the Premises, or any part ' thereof, or for any work to be done or materials to be furnished on or to the Premises, without first obtaining the written approval of the Lessor; provided that the approval of the Lessor shall not be unreasonably withheld, conditioned or delayed. The Lessor's approval may be conditioned on the Lessee providing adequate assurance that it has or will have, prior to commencement of such work the financial ability to pay for the cost of any such contract, and shall obtain partial and full lien waivers, in a form reasonably acceptable to the Lessor, during the course of construction of the work and upon completion thereof and shall cause the filing of a notice of completion and affidavit upon substantial completion of the work as required under HRS Section 507-43 to provide sufficient assurances to the Lessor that no mechanic's or materialman's lien may be levied against the Premises. 19. Condition of Premises. That the Lessee has examined and is familiar with the condition of the Premises, that the Premises is leased in its current condition,that the Lessor expressly disclaims any warranty of fitness for any particular purpose, and that the Lessor shall not be responsible for the present or future condition thereof. The Lessor shall not be required to perform any repairs, alterations or improvements whatsoever during the term of this Lease. 20. Notice. That in the event of any material change in the condition of the Premises, whether through the acts or omissions of the Lessee or otherwise, or any defect 690\001\150474 22 discovered in the Premises, the Lessee shall immediately notify the Housing Administrator, County of Hawai`i, of the material change in condition of the Premises or the defect. "Material change" includes, but is not limited to, any change which may create a risk of harm to users or occupants of the Premises, which change cannot be repaired or otherwise remedied �) by alterations or repairs by the Lessee, or any change which exposes the Premises to rapid deterioration in excess of normal weathering. Nothing in this paragraph shall be construed to imply a duty by the Lessor to remedy or repair any such changes. The Housing Administrator, County of Hawai`i, shall be the agent of the Lessor for all provisions of this Lease where the Lessee is required to give notice or obtain consents or approvals from the Lessor. All notices and/or requests for consents or approvals pursuant to this Lease must be in writing and given by personal delivery or United States mail with postage or delivery charges prepaid, return receipt requested and addressed to the Housing Administrator of the County of Hawaii. The address for the Housing Administrator is as follows: County of Hawaii Housing Administrator Office of Housing and Community Development 50 Wailuku Drive Hilo, Hawai'i 96720-2456 21. Maintenance. That the Lessee shall keep the Premises in as good repair as the Premises shall be at the commencement of the term (wear and tear resulting from the reasonable use of the same excepted). The Lessee shall, at its own expense, perform all necessary maintenance of the Premises. The Lessee shall immediately inform the Lessor in writing and promptly repair and correct, at its own expense, any condition or defect in the Premises which creates a risk of harm to persons or property, or which exposes the Premises to rapid deterioration in excess of normal weathering. 690\001\150474 23 L C ' 22. Use. The Lessee shall use the Premises solely as an affordable senior rental housing facility with preference to: (a) veterans and their spouses; and (b) spouses of deceased veterans, in accordance with federal, state or county laws; provided that this requirement shall C. not apply to those units designated as staff units for personnel employed to manage the Project. 23. Records. That the Lessee shall establish and maintain records of intake, C discharge, services and other documentation necessary to show compliance with paragraph B.22 above,including but not limited to, the financial status of clients served, and to show the scope and nature of services rendered at the Premises, and shall maintain and preserve all required ( " records and documents for three (3)years after the expiration of this Lease. All records referred to in this paragraph shall be available for inspection by the Lessor and its agents on reasonable advance written notice but in no event less than forty-eight (48) hours,provided that the Lessee and the Lessor shall agree on measures necessary to protect the privacy and individual identity of persons receiving services at the Project. Upon thewritten request of the Lessor, the Lessee (- shall provide the Lessor with a copy of the Lessee's most recent annual independent audit of the financial records of the Project. C 24. Non-Profit Status. That the sole member of Lessee, Hui Kauhale, Inc., a Hawaii non-profit corporation ("Managing Non-Profit Entity"), has and shall maintain its status as a tax-exempt, non-profit organization as certified by the Internal Revenue Service. The Lessor may require the Lessee to provide evidence of such certification. That the Managing Non-Profit Entity has, and shall continue to have during the term, a governing board whose members serve without compensation. (` That the Lessee will have, and shall continue thereafter to have during the term, a partnership agreement, operating agreement, bylaws or policies, as applicable, which ( 690\001\150474 24 describe the manner in which the Lessee's business and operation of the Project shall be conducted, including management, audit and fiscal policies and procedures, and policies on n nepotism. 25. Surrender. That the Lessee shall, and will, at the expiration or sooner �) termination of this Lease, peaceably and quietly surrender and deliver possession of the Premises to the Lessor, together with all buildings and improvements of whatever name or nature,now on or hereafter erected or placed upon the same, in good order and condition, } reasonable wear and tear excepted, and that Lessee shall remove, at no expense to the Lessor, all of the Lessee's personal property at the termination of this Lease. 26. Non-Waiver. That the failure of the Lessor to insist on the strict performance } of the terms, agreements, covenants and conditions herein contained, or any of them, shall riot constitute or be construed as a waiver or relinquishment of the Lessor's right thereafter to enforce any such term, agreement or condition, but the same shall continue in full force and effect. 27. Holdover. That if Lessee shall hold over, after expiration of the term hereby created, with consent of the Lessor, it shall be deemed a renewal of this Lease and of all terms, covenants, conditions and agreements herein contained, for the period of thirty (30) days. 28. Abandonment. That if the Lessee abandons the Premises, its right to possession shall cease if not cured after the giving of notice and within the time periods permitted under this Lease, in which event this Lease shall terminate, without prejudice to any other rights of the Lessor. "Abandonment" shall mean Lessee's failure to use the Premises for the purposes and uses listed in paragraph B.22 herein, except (a) for the 690\001\150474 25 i.,. period commencing as of the date of this Lease and continuing until the Premises are first C constructed and occupied for the purposes and uses set forth in paragraph B.22 herein; and (b) during any period that the Premises or any portion thereof are under renovation, refurbishment, repair or improvement in accordance with the terms and conditions of this Lease. C 29. Subdivision of Property. The Lessee shall obtain the prior consent of Lessor before applying for subdivision of the Premises. Such subdivision shall be in order ( to further the purposes of this Lease. The Lessor shall not be responsible for any of the costs of processing the subdivision or for complying with conditions thereto. C. IT IS HEREBY UNDERSTOOD AND AGREED BY THE PARTIES: 1. Destruction, etc. That if, during the term of this Lease, the Premises shall be substantially destroyed or become un-tenantable by reason of fire, the elements or any other (.. (. cause, then paragraph B.13.d. shall apply. 2. Condemnation. That in the event of a condemnation proceeding, the Lessee and t. the Permitted Mortgagee shall have the right to participate in any such condemnation proceeding or settlement discussions, including filing and pursuing a claim against the condemning authority on account of the value of all or a part of Lessee's leasehold interest in the Premises, the value of Lessee's interest in the improvements, moving and relocation expenses and loss of profits, and any award received on account thereof shall be the sole property of the Lessee. If the entire Premises are taken, or if so much of the Premises are taken that the Premises become unsuitable or impracticable for the operation of the uses (, permitted in paragraph B.22, as determined by the Lessee, in its sole discretion, then this Lease shall terminate upon written notice bythe p Lessee to the Lessor, effective as of the date l i t 690\001\150474 26 H of such taking, whereupon the Lessor and the Lessee shall have no further obligations under this Lease. In the event of a partial taking,the Lessee shall have the right to rebuild and restore fl the Premises in accordance with the terms of the Permitted Mortgage; provided that the Lessee shall have the right to terminate this Lease upon written notice by the Lessee to the Lessor if (� such partial taking occurs during the last ten(10) years of the term of this Lease. 3. Breach. That if(a) the Lessee shall become bankrupt, or (b) shall abandon the Premises, or(c) if this Lease and the Premises shall be attached or otherwise taken by operation of law, or(d) if any assignment shall be made of the Lessee's property for the benefit of } creditors, or(e) if the Lessee shall fail to observe and perform any of the covenants, terms and - 1 conditions herein contained and on its part to be observed and performed,then the Lessor shall ' provide written notice of such default and an opportunity for the Lessee to cure such default for ) } a period of not less than thirty (30) days, provided that if such default is not susceptible to cure within thirty (30) days and the Lessee shall substantially commence to cure such default within ) ) such 30-day period,then such 30-day period shall be extended for such additional time as reasonably approved by the Lessor for the Lessee to diligently prosecute the same to completion. If, after the giving of such written notice and expiration of such 30-day period(as may be extended),the Lessee shall fail to cure such default, then the Lessee shall be in breach of this Lease. In the event of such breach, Lessor may immediately re-enter the Premises, and; • upon or without such entry, terminate this Lease without prejudice to any other remedy or right of action. 4. Limited Partner Provisions. 690\001\150474 27 a. The Lessor hereby agrees for purposes of this Lease that the cure of any C default made or tendered by a limited partner of the Partnership (the "Limited Partner") shall be deemed to be a cure by the Lessee and shall be accepted or rejected on the same basis as if made �-V or tendered by the Lessee. b. The Lessor hereby agrees that, from and after a Permitted Transfer, transfers of interests within the Permitted Transferee, including but not limited to, a transfer of Partner, in accordance with the terms of the partnershipagreement of the interest of the Limited g ( Transferee, shall be expressly permitted under the terms of this Lease and shall not the Permitted p y ( " require the prior consent of the Lessor; provided that the Lessee shall give written notice of such transfer to the Lessor. c. The Lessee owns fee simple title to all improvements constructed or ( - installed on the Premises during the term of this Lease. ( . d. No amendments or modifications to this Lease shall be signed without the consent of the Limited Partner, which consent shall not be unreasonably withheld. ( 5. Reasonable Cooperation. The Lessor and the Lessee acknowledge and agree that the Lessee may request an amendment to this Lease in connection with satisfying the Financing Contingency or the requirements of a Permitted Mortgagee. In such event, the parties shall work cooperatively and in good faith to enter into such amendment, as permitted by law, that may be requested by the Lessee to satisfy the Financing Contingency or the requirements of a Permitted Mortgagee; provided that any such amendment shall not impose ( ' any obligation upon the Lessor to construct or make any improvements to the Premises. 6. Headings. That the marginal headings throughout this Lease are for the convenience of the Lessor and Lessee and are not intended to construe the intent or meaning (.,, ( 690\001\150474 28 I 'tel - of any of the provisions thereof. } 7. Complete Agreement; Hawaii Law; Severability. This Lease contains the full and complete agreement of the parties and supersedes any prior agreement between the parties, and there are no covenants, terms, agreements or conditions or understandings, either oral or written, between the parties other than herein set forth. This Lease shall be governed ' 1 by the laws of the State of Hawaii. If any provision of this Lease shall be invalid or ' ) unenforceable to any extent, then the other provisions of this Lease shall not be affected thereby and shall be enforced to the greatest extent permitted by law. ' ) 8. Lessee Not an Agent of Lessor. Nothing herein contained is intended or should be construed in any way establishing the relationship of co-partners between the Lessee and the Lessor, or as constituting the Lessee as the agent, employee or representative of the Lessor for any purpose whatsoever. [signatures on the next page] 1 690\001\150474 29 C C' C IN WITNESS WHEREOF,the parties hereto have entered into this Lease on the day and year first above written. C COUNTY OF HAWAI`I By Its "Lessor" , HKI KAWILI LLC, a Hawai'i limited liability company By Hui Kauhale, Inc., a Hawaii nonprofit corporation Its Sole Member (. B Y Marian Gushiken Its President "Lessee" RECOMMEND APPROVAL: Housing Administrator Date: APPROVED AS TO FORM AND LEGALITY: Deputy Corporation Counsel County of Hawaii Date: �_.. 690\001\150474 30 STATE OF HAWAII ) SS: COUNTY OF HAWAII ) r On this day of , 2018, before me personally appeared ,• , to me personally I 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. Signature Print Name Notary Public, State of Hawai`i My Commission Expires: NOTARY CERTIFICATION Doc. Date: No. of Pages: Notary Name: Doc. Description: Circuit: Third Notary Signature Date 690\001\150474 � ^ ( � /-` \ /-` INSERT � /_� MAYOR' S- - -- - ' -- - - -- - -- PAGE---- �/- � . - � ` /`' ` - / [ ( (-� - � (^ ( ' ( -' '�. � ( ( ~ 690NO1\150474 ( �� fl �1) STATE OF HAWAII r) SURVEY DIVISION DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES r) HONOLULU C.S.F.No. 25.630 September 13,2017 j COMBINED VETERANS CENTER,AND AFFORDABLE SENIOR HOUSING SITE pr— PARCEL A O Waiakea,South Hilo,Island of Hawaii,Hawaii Being a portion of the Government(Crown)Land of Waiakea. 1 Beginning at the south corner of this parcel of land,the north ) corner of the intersection of Kapiolani and Kawili Streets,the coordinates of said point of beginning referred to Government Survey Triangulation Station"HALAP'being 5613.82 } feet South and 6690.70 feet East,thence running by azimuths measured clockwise from True South:- , } } 1. Along the north corner of the intersection of Kawili and Kapiolani Streets on a curve to the right with a radius of 30.00 feet,the • chord azimuth and distance being: i 103° 10' 42.43 feet; ) 2. 148° 10' 297.86 feet along the northeast side of Kapiolani Street, 3. 238° 10' 240.44 feet along Grant S-14,064 to The Protestant Episcopal Church in the Hawaiian Islands; aasun�.ate. Deportment d the 1 4. 148° 10' 362.34 feet along Grant S-14,064 to The Protestant AO.nOY CO1°'r` ' Episcopal Church in the Hawaiian Islands; / \ t -1- EXHIBIT A } 690\001\150474 ✓j ) Exhibit 14 bvernor David ge Grant-in TA is Letter, July , 117 • • EXECUTIVE CHAMBER-S HONOLULU DAVID V.IGE GOVERNOR July 2, 2015 Lt. Col. R.N. Williams, U.S. Army Retired Hawaii Island Veterans Memorial al 465 Kaanini Circle Hilo, Hawaii 96720 Dear Colonel Williams: • I am pleased to inform you that I am releasing $425,000 ingeneral obligation bond g funds for the Hawaii Island Veterans Memorial grant. I understand that the project will complete the design phase of the Community Based Outpatient Clinic and construction of a box culvert at the front of the entrance to the property. The Department of Defense (DOD), which will be the expending agency for the grant, will be working with your organization to develop the scope and terms of the contract. Please contact DOD to facilitate the release of funds, Sincerely, ArYv:r:y. DAVID i , i • Governor, State of Hawaii c: Honorable Arthur J. Logan STATE OF HAWAII Page 1 of 2 ALLOTMENT ADVICE )rable Arthur J. Logan, Adjutant General ADVICE NO. 15-0470 xxxxxxxx ant of Defense COMPTROLLER'S NO. xxxxxxxx s day approved the following allotment from the general obligation bond fund appropriation authorized n 39 , 71, and 79 of Act 134, SLH 2013 as amended by Act 122 SLH 2014, for thepurpose indicated M APP D ALLOT SOURCE/ ITEM TITLE AND PURPOSE OF ALLOTMENT 0 AMOUNT CAT OBJECT F xxx xx xx xxxx xxxxxx (20 x) x xxxxxxxxxxx xx TRANSFER AND ALLOTMENT 414 H E-4.07 Hawaii Island Veterans Memorial, Hawaii C 425,000 00 Construction for a Community Based Outpatient Clinic and Box Culvert. This Project Qualifies as a Grant, Pursuant to Chapter 42F, HRS. (Construction) 801 G E-4.07 Hawaii Island Veterans Memorial, Hawaii C 425,000 00 (Construction) 801 G E-4.07 Hawaii Island Veterans Memorial, Hawaii C 350,000 00 (Construction) 800 G E-4.07 Hawaii Island Veterans Memorial, Hawaii C 320,000 00 (Design) 800 G 20 E-4.07 Hawaii Island Veterans Memorial, Hawaii C 320,000 00 (Design) Purpose: Design for a Community Based C 320,000 00 Outpatient Clinic and Box Culvert. • • STATE OF HAWAII Page 2 of 2 ALLOTMENT ADVICE TO: The Honorable Arthur J. Logan,Adjutant General ADVICE NO. 15-0470 xxxxxxxx Department of Defense COMPTROLLER'S NO. xxxxxxxx I have this day approved the following allotment from the general obligation bond fund appropriation authorized by Section 39 , 71, and 79 of Act 134, SLH 2013 as amended by Act 122 SLH 2014, for the purpose indicated M TC F YR APP D ALLOT SOURCE/ ITEM TITLE AND PURPOSE OF ALLOTMENT 0 AMOUNT CAT OBJECT F xxx x xx xxx xx xx xxxx xxxxxx 120 x) x xxxxxxxxxxx xx REGULAR ALLOTMENT 531 B 14 801 G 20 E-4.07 Hawaii Island Veterans Memorial, Hawaii C 105,000 00 (Construction) Purpose:To finance the construction of the Box Culvert. Total Allotment:$425,000 Project No.: (n/a) ktattiL G VERN , S i'E OF HAWAII DIRECT OF BUDGET AND FINANCE DATE: JUN 3 0 2615 HAWAII ISLAND VETERANS MEMORIAL DEPARTMENT OF DEFENSE By By Lt. Col. Robert N. Williams (Ret.) Brigadier neral Arthur J. Logan Chairman of the Board djutant General DATE: ;vti DATE: 8/ i � APPROVED AS TO FORM: Deputy Attorney General Date Page 3 of 3 ti Exhibit 15 r . DWS Water Commitment Receipt for TMK: 2-4-057:029, June ', 117 • . s 3'�4 O R SGAA `1. 149` DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII 345 KEKUANAO'A STREET, SUITE 20 • HILO, HAWAII 96720 ' ryOFHAWP��,,,o TELEPHONE (808) 961-8050 • FAX (808) 961-8657 June 9, 2017 Mr. Yen Wen Fang, P.E. Engineering Partners, Inc. 455 East Lanikaula Street Hilo, HI 96720 Dear Mr. Fang: Subject: Water Commitment Deposit Change of Zone Ordinance No. 07-026 Applicant: Hawaii Island Veterans Memorial CVC and CBOC Tax Map Key 2-4-057:029 This is to acknowledge receipt of the required $450.00 water commitment deposit for the subject application. Therefore, pursuant to Rule 5 of the Department's Rules and Regulations, a water commitment for the proposed development in the amount of 1,200 gallons per day, or three (3) additional units of water at an average of 400 gallons per day, per unit is hereby granted until May 31, 2020,with the following conditions: 1. Construct necessary water system improvements, which shall include, but not be limited to: a. installation of a 11/4-inch service lateral to accommodate a 1-inch meter, and b. installation of a reduced pressure type backflow prevention assembly within five(5) feet of the meter on private property, the installation of which must be inspected and approved by the Department before water service can be activated. 2. Remit the prevailing facilities charge balance, which is subject to change, as shown below: FACILITIES CHARGE (FC): One (1)unit for first service $1,190.00 Three (3)additional units of water @ $5,500.00/unit $16,500.00 Total FC Balance (subject to change) $17,690.00 WATER COMMITMENT DEPOSIT CREDIT(WCD): Three (3) additional units of water @ $150.00/unit $450.00 Total FC Balance (subject to change) $17,240.00 . . . Water, Our!Most cPrecious cgsource. . . 1(a WaiA pane. . . The Department of Water Supply is an Equal Opportunity provider and employer. Mr. Yen Wen Fang, P.E. Page 2 June 9, 2017 This is due and payable upon completion of the installation of the required water system improvements and prior to final approval being granted. 3. Upon completion and final acceptance of the required water system improvements, water service can be granted when an authorized representative completes an application for water service with payment of the water meter installation fee of$150.00 for the 1-inch meter. Application for water service can be completed at one of the Department's offices. 4. Comply with all other applicable policies and requirements of the Department's Rules and Regulations. Noncompliance may be cause for voiding this water commitment, at which time availability will be subject to change in accordance with prevailing water system conditions, policies, and Rules and Regulations. Furthermore,the Department's Water System Standards require that a minimum of 2,000 GPM be available at the site for fire protection for commercial use. Please be informed that the nearest fire hydrant is connected to an 8-inch waterline, within West Kawili Street, which is inadequate to provide the required fire flow. The applicant should contact the Fire Department to determine any other fire protection requirements. Should there be any questions, please contact Mr. Troy Samura of our Water Resources and Planning Branch at 961-8070, extension 255. Sincerely yours, Keith K. Okamoto, .E. Manager-Chief Engineer TS:dfg copy— planning Department Bob Williams, HIVM Inc. r Exhibit 16 DWS Water Demand Calculations for H • V-tera 's ommu,ititt 7 T;/ - Y ^1 r.ricyya r. ,e' V1ATEi lig k1,-, '9/ DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII =oG s MP3+' 345 KEKOANAO'A STREET, SUITE 20 • HILO, HAWAII 96720 , s' `roFHpWP``'n"n' TELEPHONE (808) 961-8050 • FAX (808) 961-8657 - May16,2017 ;� Cr- '_-. - -C Mr.Ross S. Okuda C �1 Mechanical Enterprises,Inc. 501 Sumner Street, Suite 503 --' Honolulu,HI 96817 _':: ,) z .) _i Dear Mr. Okuda: --I , Subject: Water Demand Calculations for Hilo Veteran's Community • Change of Zone Ordinance No.07-026 Tax Map Key 2-4-057:030 J We have reviewed the subject water demand calculations for the proposed 75-unit housing development and A find them acceptable. 1 '1. Based on the calculations provided,the estimated average daily water demand for the project is 30,560 gallons per day(GPD),or 77 equivalent units of water at 400 GPD per unit,and the peak flow is estimated at 120 .1 gallons per minute. A 3-inch meter with a 4-inch service lateral will be required. ,l In accordance with the Department's current water availability conditions,which are subject to change without I notice,water can be made available from an existing 8-inch waterline within Kawili Street fronting the subject parcel. 1 Pursuant to Rule 5 of the Department's Rules and Regulations,a water commitment may be issued. Based on the 76 additional units of water needed,the required water commitment deposit is$150.00 per additional unit,or $11,400.00. Remittance of the water commitment deposit is requested as soon as possible so that a water commitment may be formally effected. The commitment will be in writing with specific dates and conditions r stated. Upon receipt of the water commitment deposit,we will provide our requirements for water service, applicable facilities charges due,and other conditions for final approval. Prior to granting water service to the subject development,the applicant/developer will be required to comply with the following conditions: ' 1. Construct necessary water system improvements,which shall include,but not be limited to: a. installation of a 4-inch service lateral to accommodate a 3-inch meter, b. installation of a reduced pressure type backflow prevention assembly within five(5)feet of the meter on private property,the installation of which must be inspected and approved by the Department before water service can be activated,and f . . . Water, Our Nast(Precious(source. . . Ka WaiA lane. . . 111684 The Department of Water Supply is an Equal Opportunity provider and employer. , ; Mr.Ross S.Okuda MayPage 1 16,2017 d c. subject to other agencies' requirements to construct improvements within the road right-of-way fronting the property affected by the proposed development,the applicant shall be responsible for the relocation and adjustment of the Department's affected water system facilities,should they be necessary. fl Submit construction plans,prepared by a professional engineer licensed in the State of Hawai`i,for IC review and approval. e which is subject to change,as shown below: prevailing facilities charge, J Remit the r g 2. P FACILITIES CHARGE(FC): , • $ 1,190.00 151 service 76 additional units aa,$5,500.00/unit $418,000.00$418, 00.00 Total FC These are due and payable upon completion of the installation of the required water system improvements and prior to water service being granted. 3. Should it be necessary,submit the appropriate documents,properly prepared and executed,to convey the water system improvements and necessary easements to the Water Board of the County of Hawai`i p (rior to final subdivision approval being granted. A registered land surveyor shall stamp and certify the (ii metes and bounds description within the conveyance documents. However,prior to water meter services being granted to the development,the conveyance documents shall be accepted by the Water I ( Board. H Should there be any questions,please contact Mr.Ryan Quitoriano of our Water Resources and Planning Branch (I. at 961-8070,extension 256. . 1. Sincerely yours, r'1VO/4"41/6V) , : I. I: • Keith K.Okamoto,.P.E. Manager-Chief Engineer ( RQ:dfg ) �_ copy- Planning Department i Mr.Bob Williams,HIVM,Inc. C / (; c ( c, c • ULULANI STREET ZONING. — MIO HIGH DENSITY • Qin RESIDENTIAL USE I A'+<, J_� 1 MAMMON DEN017Y: 750 S F.OF LANG AREA PER DWELLING UNIT I `c InUNORYI FORE /� I ORSEPARATERENTALUMi I I FLEMING& AAICCH HYDRANT / -__ I I MINIMUM BUILDING GTE AREA 7,500 S.F. Associates,LLC k ( 557 BLAND?*STREET I 7 ..' �L' 'l l I LOT WIDTH. 60 FEET wto.HnWAn i I >.4 ?—L„]—,7 r' I I I MAXIMUM HEIGHT 120 FEET —If- T r"j —f I MIN.DISTANCE BETWEEN BUILDINGS:15 FEET r 1 1. i 5 } I PROFIT&AEARYARD NETSnLK 15 FEET I I µ DMLOIRGA .� i 1 tI1 V\RKING 4 Y{{ I 32 URITS _ 7 2 .I30 STALL&I IF41II III SIDE YARD SETBACK DRONE-STORY ATIT1O0AL 2 FEET FOR EACH ADDITONAL STORY IIIII i 1 Ii r ELEV.IT _ \\I EI 320LLE•BEDROOM UNITS II1 ;91%, 1 2n DI 20EPI30 )20 SCOPAL Y •'I—I p IBUILDINGh LUNDRY ROOM x 1 ELETNTNL MANAGER UNIT x1 ELEVATOR x, - d' 71 CHURCH 61 k .Q _ 1 CPOA=1.2) EGRESS STNRWAY x 2 DEDICATED MECHANICAL SPACE I S d"L31 , N X0 YSITE T I i— It DEDICATED STORAGE SPACE E f e _ J i I I 6 I i BUILDING B. 32 ONE-BEDROOM UNITS CONSULTANT: ig k t ( 9 - LAUNDRY ROOM IAANTQANCE SHOP xt ERNGERTIUAR� -_., • } Y ELEVATOR C I & P I ( EGRF.55 STAIRWAY.HAN �I Ti II DEDICATED MECHANICAL SPACE .,,,SED._is I+1+ '- TL(AEH{` DEDICATEE/STORAGE SPACE I I GARDENS Inn(T fl ` RECYCLING '-I �U U ILL! FIRE 1 BLAL.DING G 32 ONE-BEDROOM UNITS Q LLAUNDRYROIJM x I 1f 4 L 'LA'D-6117'''. ( HYORANY ELEVATOR.I �M1 f dMECH_L6 1 '�°� EGRESS STPIRNAYx2 1 1 0 d "I"4. >'j DEDICATED STORAGETCCHANICAL SPACE r ! I --- — DEDICATED SPACE I I 'W r0 0 `— I 1 PARIANG•REQUIRED BY HAWAII COUNTY ZONING CODE _ Z BUILDING El I L RESIDES TIAL UNIIS 1.2551/LS FOR EACHUND `120STAEE'S J __I I I COhih1Ut11TYLEMER 1.E/STALL PER 300 SAF. =L]STALLS Lu 1 I- 1 _1 l 32 was `E IRKING 3 'f 1 1 T.IAL STALLS 41/75V.LL5-. (r)a —U �8 m 2-STORY 5 . I.'.ISTALLn I �.., .e, A '1 ai ____I MINIMUM NUMBER OF ACCESSIBLE STALLS' =5 p ^ y 6 .+,.'' S '1 ELEV.2 x, IL l I LOADING STALLS ONE STALL AT 12x E0 -�- I �E% a I 1-'1 I REQUEST VARIANCE TO PROVIDE ONE 10'.225T/LL W Q I Z I ru'.4'r'.' *,,4 g- 2.N ( I I L I O Y �1. I PARKING REONRED BYOWNER O I } [ BUILDING x 4 I-1 L COVERED RE$heti IAl.GMTS. 105TA1 PEROlva =955 ALL x ��., Z g EIV. 32 UNITS rT L'tAUND30 ? i I ~ PARKING GUEST STALLS 4057/LLL ER BUILDING -125TALL5 Q W 3 IPA I z 2-STORY AM1ECH 3 COMM1I 4VE'AT 105TALLPER30USI_. —1�1MLS U EE =� -L_ 1, 7 ? IL.. I I TOTALsTnus —13,NfuLs Qz ) n. I _ .al L PARKING TALUS FROMDEEL 135 STALLS _I O I% 'L I I ACCESSIBLE STALLS PROVIDED? 8 STALLS I I Ln U 1 P Y / N I� T } I I I '.v `," 'Ln, b ri.' 1 n .d 1-t FIRE B 41 l! F.H. 1 HYDRANT RAISED ' 11 EIRRfE11J _. _ .- -_RD_.5Ns -, —i J a a , _HILU MEISHOIN �___,_ C� r�.ul. 'w STI ( �+ I _�' „•._.,,____I__ I, E I CH�IRCH SITE _ 1 .f” COVERED/ PARKING 1: TRASH B I_• COVERED] PARKING I / IH. PARKING I 36 STALLS (RECYCLING EARRING 27 STALLS I \ I('T SM514N..9; itrpi Mass r�. '11 I—�I...I_I-I . CLF->.1 I-II-I I� t �I�I—�IP�cam.-j�l FItE_�Y __.�..—(,� �� 1 I I I I I- „''�- �L- i L�f6 - HYDRANT GROUND SIGN 10 22. I I LOADING ....Aa¢, I FUTURE -i'PROPERTY LINE TRASLIN L-f0'+ COMMUNITY CENTER PILL VETERANS Z 1 a�� RECYCLING8,000S F © 1 (- SETBACK 3 =2?PARKING STALLS I I -1, +iF �%� y Px41ECEN0:18030.00 3 _ _ _ OUTPATIENT! I oR ;; SF el. 1 NC RH I CLINIC I I SQiQNByR: rrE ELAN no mi 1 L_-- GROUND SIGH-- CI 5 'y 1J —_ --__— _---_------_—__--_--_--- —_--__�J 7:3 I KAWILI STREE — : OSP`" — _ SCALE - Al DEPARTMENT OF PUBLIC WORKS COUNTY OF HAWAII HILO, HAWAII • DATE: August 21, 20.18 r-- Lzn moi' ' Neffiendadeefft _. TO: Michael Yee, Planning Director \' \ento u li Works Engineering Division FROM: Itr �.�-�,�� Depart g g SUBJECT: AMENDMENT TO CHANGE OF ZONE ORD. No. 07-26 (REZ 06-000051) Applicant: Hawaii Island Veterans Memorial, Inc. Request: Amendment to Condition B (Time Extension to Pay Water Commitment Fee), Condition C (Time Extension to Complete Construction), and Delete Condition F (Installation of Traffic Lights) TMK: 2-4-005:029, por 030, and por 031 (formerly 2-4-057:001) We have reviewed the subject request forwarded by your memo dated July 18, 2018 and provide the following: We have no objection to the time extensions. We do object to the deletion of Condition F, the installation of street lights and traffic controls. Until final construction plans are , submitted with locations of driveways, DPW will not be able to determine streetlight and traffic control requirements. Questions may be referred to Robyn Matsumoto at 961-8924. qrc i tU6212013 Mom in Dept. Exhibit _.. County of Hawaii is an Equal Opportunity Provider and Employer ,IIlIII/ i ,v t .1.. t ',!::0* TER S A oG Ag•r DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII 345 KEKUANAO`A STREET, SUITE 20 ^ HILO, HAWAII 96720 �FWOO, • TELEPHONE (808) 961-8050 • FAX (808) 961-8657 August 13, 2018 TO: Mr. Michael Yee Director Planning Department LI FROM: Keith K. Okamoto, Manager-Chief Engineer SUBJECT: Change of Zone Ordinance No. 07-26 (REZ 06-000051) Applicant- Hawai`i Island Veterans Memorial, Inc. Request: Amendment to Condition B, C, and F Tax Map Key 2-4-057:029, 030, and 031 - r We have reviewed the subject request and have the following comments. Please be informed that the available water for the development for Parcel 30 is subject to change without notice. Plan approval is subject to the applicant securing the necessary water commitments for the development. In other words, unless a water commitment is officially effected, water availability is subject to change without notice, depending on the water situation. - A copy of Rule 5 of the Department's Rules and Regulations is being attached to help the applicant understand this requirement. Should there be any questions,please contact Mr. Ryan Quitoriano of our Water Resources and Planning Branch at 961-8070, extension 256. Sincerely yours, WIRAMADIC) Keith K. Okamoto, P.E. Manager-Chief Engineer RQ:dmj ..... :. _..- .... !y., copy - Hawai`i Island Veterans Memorial, Inc. (w/copy of Rule 5) SCAN-IN-WTI AU6 14 2013 . . . Water, Our 914ost Precious resource . . . Wai j1 Rane. . . ManningDept The Department of Water Supply is an Equal Opportunity provider and employer. ;_ ibit L Harry Kim `P ��„ \ , William A. Kucharski Mayor i t;• ,(��: , , +; Director • •r • , Wilfred M.Okabe ''' "' �'� Diane A.Noda Managing Director Deputy Director CountITf Raf t`t DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 345 Kekuanao`a Street,Suite 41 •Hilo,Hawai`i 96720 Ph:(808)961-8083•Fax:(808)961-8086 cohdem@co.hawaii.hi.us http://www.hawaiicountv.gov/environmental-management/ :7 MEMORANDUM _ - rV TO: Michael Yee,Director = -111 • 3 Planning Department _= ;IC FROM: William A. Kucharski,Director cr) Environmental Management Des.. --1 DATE: August 14,2018 SUBJECT: Amendment to Change of Zone Ordinance No. 07 26 (REZ 06-000051) Applicant: Hawai`i Island Veterans Memorial, Inc. • Request: Amendment to Condition B (Time Extension to Pay Water Commitment Fee), Condition C (Time Extension to Complete Construction), and Delete Condition F (Installation of Traffic Lights) Tax Map Keys: (3) 2-4-057:029,por. 30, por. 031 (formerly 2-4-057:001) The Solid Waste Division has reviewed the subject application and offers the following comments and/or recommendations (contact the Solid Waste Division for details): (X) No comments. ( ) Commercial operations, State and Federal agencies,religious entities and non-profit organization may not use transfer stations for disposal. ( ) Aggregates and any other construction/demolition waste should be responsibly reused to its fullest extent. • ( ) Ample and equal room should be provided for rubbish and recycling. ( ) Green waste may be transported to the green waste sites located at the West Hawai`i Organics Facility and East Hawai`i Organics Facility, or other suitable diversion programs. ( ) Construction and demolition waste is prohibited at all County Transfer Stations. ( ) Submit Solid Waste Management Plan in accordance with attached guidelines. ( ) Existing Solid Waste Management Plan is to be followed. Provide update to the department on current status. ( ) Other: Nonni, g Det. 2 12018 Exhibit County of Hawaii is an Equal Opportunity Provider and Employer ; Mr. Michael Yee, Director August 14, 2018 Page 2 The Wastewater Division has reviewed the subject application and offers the following comments and/or recommendations (contact the Wastewater Division for details): ( ) No comments. (X) Require connection of existing and/or proposed structures to the public sewer in accordance with Section 21-5 of the Hawaii County Code. ( ) Require Council Resolution to approve sewer extension in accordance with Section 21- 26.1 of the Hawai`i County Code. Complete Sewer Extension Application. ( ) Require extension of the sewer system to service the proposed subdivision in accordance with Section 23-85 of the Hawai`i County Code. (X) Check or line out as applicable: [ ] If required by the Director of the Department of Environmental Management("Director of DEM"), [X] applicant shall conduct a sewer study in accordance with the then applicable wastewater system design standards prior to approval to connect to the County sewer system. Applicant shall provide such sewer line or other facility improvements as the Director of DEM may reasonably require,which the sewer study may indicate are advisable for mitigation of impacts of the proposed project. Contact Wastewater Division Chief for details. P P P ( ) Other: WK:mef . DAVID Y.IGE '871; BRUCE S.ANDERSON PhD. . .'q6,.........,.4� GOVERNOR OF HAWAII ��P:u,g 59 ••.9 . DIRECTOR OF HEALTH....... cr , , .. STATE OF HAWAII DEPARTMENT OF HEALTH c "' P.O. BOX 916 ; HILO,HAWAII 96721-0916 • fV MEMORANDUM - DATE: July 24, 2018 TO: Mr. Michael Yee Planning Director, County of Hawaii FROM: Eric Honda District Env onnental Health Program Chief SUBJECT: Change of Zone Ordinance No. 07 26 (REZ-06-000051) Applicant: Hawaii Island Veterans Memorial, Inc. - Request: Amendment to Condition B (Time Extension to Pay Water Commitment Fee), Condition C (Time Extension to Complete Construction), and Delete Condition F (Installation of Traffic Lights) TMK: 2-4-057:029, por 030, por 031 (foimerly 2-4-057: 001 The applicant would need to meet the requirements of our Department of Health Air Pollution Rules, Chapter 60.1, Title 11, State of Hawaii for fugitive dust control. If there is need to discuss these requirements, please contact our Clean Air Branch staff at Ph. 933-0401. The Department of Health(DOH), Clean Water Branch (CWB), acknowledges receipt of the subject document on July 19, 2018. The CWB has reviewed the limited information contained in the subject document and offers the following comments: Permit Issuance * Any project and its potential impacts to State waters must meet the State's: 1) Antidegradation policy, which requires that the existing uses and the level of water quality necessary to protect the existing uses of the receiving Naming ng Dept. State water be maintained and protected; 2) Designated uses, as determined by the classification of the receiving State Exhibit ja_ waters; and 3) Water quality criteria [Hawaii Administrative Rules (HAR), Chapter 11-54], * A Section 401 Water quality Certification (WQC) is required if your i NTN7T-1; _ project/activity: , - Requires a federal permit, license, certificate, approval,registration, or JUL. 3 0 2t ,) 1fir Michael Yee July 24, 2018 Page2of7 Statutory exemption; and May result in a discharge into State waters. The term"discharge" is defined in Clean Water Act, Subsections 502(16), 502(12), and 502(6). Examples of"discharge" include, but are not limited to, allowing the following pollutants to enter State waters from the surface or in-water: solid waste, rock/sand/dirt, heat, sewage, construction debris, any underwater work, chemicals, fugitive dust/spray/paint, agricultural wastes, biological materials, industrial wastes, concrete/sealant/epoxy, and washing/cleaning effluent. Determine if your project/activity requires a federal permit, license, certificate, approval, registration, or statutory exemption by contacting the appropriate federal agencies (e.g. Department of the Army (DA), U.S. Army Corps of Engineers (COE), Pacific Ocean Division Honolulu District Office (POH) Tel: 808-835-4303; U.S. Environmental Protection Agency Tel: 415-947-8021; Federal Energy Regulatory Commission Tel: 866-208-3372; U.S. Coast Guard Office of Bridge Programs Tel: 202-372-1511). To request a Section 401 WQC, you must complete and submit the Section 401 WQC application. This application is available on the e-Permitting Portal website located at: https://eha-cloud.doh.hawaii.gov/epermit/. Please see HAR, chapter 11-54 for the State' Water Quality Standards and for more information on the Section 401 WQC. HAR, Chapter 11-54 is available on the CWB website at: http://health.hawaii.gov/cwb/. • National Pollutant Discharge Elimination System (NPDES)permit coverage is required for: -Storm water associated with construction activities for land disturbances of one (1) acre or more. Land disturbance includes, but is not limited to, clearing, grading, grubbing, excavation, demolition, uprooting of vegetation, equipment staging, and storage areas. -Storm water associated with industrial activities for facilities with Standard Industrial Classification Codes regulated in 40 CFR 122.26(b)(14)(i) through (ix) and (xi). -Storm water and certain non-stoLiu water from a small Municipal Separate Stoma Sewer System. -Discharges of water pollutants into State surface waters. Examples of these discharges include, but are not limited to, cooling water, hydrotesting waters, dewatering effluent, and process wastewater. -Discharges from the application of pesticides (including pesticides, herbicides, fungicides, rodenticides, and various other substances to control pest)to State waters. Michael Yee July 24, 2018 Page 3 of 7 An application for an NPDES individual permit must be submitted at least 180 calendar days before the commencement of the discharge or start of construction activities. To request and NPDES individual permit, you must complete and submit the NPDES individual permit application. This application is available on the e-Permitting Portal website located at: https://eha-cloud.doh.hawaii.gov/epennit/. A Notice of Intent (NOI) for coverage under a specific NPDES general permit must be submitted at least 30 calendar days before the commencement of the discharge or start of construction activities. To request NPDES general permit coverage, you must complete and submit the NOI. The NOI is available on the e-Permitting Portal website located at: hap s://eha-cloud.d.oh.hawaii.gov/epermit/. Please see HAR, Chapter 11-55 for more information on the NPDES individual permit and NPDES general permits. The specific NPDES general permits located in HAR, Chapter 11-55, Appendices B through M. HAR, Chapter 11-55 and HAR, Chapter 11-55, Appendices B through M are available on the CWB website at: http://health.hawaii.gov/cwb/. • According to State law, all discharges related to the project construction or operation activities, whether or not NPDES permit coverage and/or Section 401 WQC are required, must comply with the State's Water Quality Standards. Monitoring • Effluent discharge and/or receiving water monitoring may be required as conditions of Section 401 Water Quality Certifications and NPDES General and Individual permits. Enforcement, • Noncompliance with water quality requirements contained in HAR, Chapter 11-54 and/or permitting requirements specified in HAR, Chapter 11-55 may be subject to penalties of$25,000 per day per violation. • Violations of Hawaii Revised Statutes 342D and 342E may elicit administrative, civil and criminal penalties for such violations. Polluted Runoff Control • Manage projects identified in watershed-based plans that reduce polluted runoff and educate the public about nonpoint source pollution. Projects are selected through an annual request for proposals. Funding is provided by the EPA through the Clean Water Act. For more information on projects and funding opportunities, please visit: wvvw.hawaii.gov/doh/pollutedrunoffcontrol. • Michael Yee July 24, 2018 Page 4 of 7 The Department of Health (DOH), Clean Water Branch (CWB), acknowledges receipt of the subject document on April 26, 2018. The CWB has reviewed the limited information contained , in the subject document and offers the following comments: Permit Issuance * Any project and its potential impacts to State waters must meet the State's: 1) Antidegradation policy, which requires that the existing uses and the level of water quality necessary to protect the existing uses of the receiving State water be maintained and protected; 2) Designated uses, as determined by the classification of the receiving State waters; and 3) Water quality criteria [Hawaii Administrative Rules (HAR), Chapter 11-54], * A Section 401'Water quality Certification(WQC) is required if your project/activity: Requires a federal permit, license, certificate, approval, registration, or Statutory exemption; and May result in a discharge into State waters. The term"discharge"is defined in Clean Water Act, Subsections 502(16), 502(12), and 502(6). Examples of"discharge" include, but are not limited to, allowing the following pollutants to enter State waters from the surface or in-water: solid waste, rock/sand/dirt, heat, sewage, construction debris, any underwater work, chemicals, fugitive dust/spray/paint, agricultural wastes, biological materials, industrial wastes, concrete/sealant/epoxy, and washing/cleaning effluent. Determine if your project/activity requires a federal permit, license, certificate, approval, registration, or statutory exemption by contacting the appropriate federal agencies (e.g. Department of the Army (DA), U.S. Army Corps of Engineers (COE), Pacific Ocean Division Honolulu District Office (POH) Tel: 808-835-4303; U.S. Environmental Protection Agency Tel: 415-947-8021; Federal Energy Regulatory Commission Tel: 866-208-3372; U.S. Coast Guard Office of Bridge Programs Tel: 202-372-1511). To request a Section 401 WQC, you must complete and submit the Section 401 WQC application. This application is available on the e-Permitting Portal website located at: https://eha-cloud.doh.hawaii.gov/epermit/. Please see HAR, chapter 11-54 for the State' Water Quality Standards and for more information on the Section 401 WQC. HAR, Chapter 11-54 is available on the CWB website at: http://health.hawaii.gov/cwb/. ® National Pollutant Discharge Elimination System (NPDES) permit coverage is required for: -Storm water associated with construction activities for land disturbances of one (1) acre or more. Land disturbance includes, but is not limited to, clearing, grading, grubbing, excavation, demolition, uprooting of vegetation, Michael Yee July 24, 2018 Page 5 of 7 equipment staging, and storage areas. -Storm water associated with industrial activities for facilities with Standard Industrial Classification Codes regulated in 40 CFR 122.26(b)(14)(i) through (ix) and (xi). -Storm water and certain non-storm water from a small Municipal Separate Storm Sewer System. -Discharges of water pollutants into State surface waters. Examples of these discharges include, but are not limited to, cooling water, hydrotesting waters, dewatering effluent, and process wastewater. -Discharges from the application of pesticides (including pesticides, herbicides,fungicides, rodenticides, and various other substances to control pest) to State waters. An application for an NPDES individual permit must be submitted at least 180 calendar days before the commencement of the discharge or start of construction activities. To request and NPDES individual permit, you must complete and submit the NPDES individual permit application. This application is available on the e-Permitting Portal website located at: https://eha-cloud.doh.hawaii.gov/epermit/. A Notice of Intent (NOI) for coverage under a specific NPDES general permit must be submitted at least 30 calendar days before the commencement of the discharge or start of construction activities. To request NPDES general permit coverage, you must complete and submit the NOI. The NOI is available on the e-Permitting Portal website located at: https://eha-cloud.doh.hawaii.gov/epennit/. Please see HAR, Chapter 11-55 for more information on the NPDES individual permit and NPDES general permits. The specific NPDES generalpermits located in HAR, Chapter 11-55, Appendices B through M. HAR, Chapter 11-55 and HAR, Chapter 11-55, Appendices B through M are available on the CWB website at: http://health.hawaii.gov/cwb/. ® According to State law, all discharges related to the project construction or operation activities, whether or not NPDES permit coverage and/or Section 401 WQC are required, must comply with the State's Water Quality Standards. Monitoring ® Effluent discharge and/or receiving water monitoring may be required as conditions of Section 401 Water Quality Certifications and NPDES General and Individual permits. Enforcement Michael Yee July 24, 2018 Page 6 of 7 ® Noncompliance with water quality requirements contained in HAR, Chapter 11-54 and/or peiniitting requirements specified in HAR, Chapter 11-55 may be subject to penalties of$25,000 per day per violation. • Violations of Hawaii.Revised Statutes 342D and 342E may elicit administrative, civil and criminal penalties for such violations. Polluted Runoff Control • Manage projects identified in watershed-based plans that reduce polluted runoff and educate the public about nonpoint source pollution. Projects are selected through an annual request for proposals. Funding is provided by the EPA through the Clean Water Act. For more information on projects and funding opportunities, please visit: www.hawaii.gov/doh/pollutedrunoffcontrol. Construction activities must comply with the provisions of Hawaii Administrative Rules, Chapter 11-46, "Community Noise Control." 1. The contractor must obtain a noise permit if the noise levels from the construction activities are expected to exceed the allowable levels of the rules. 2. Construction equipment and on-sitevehicles requiring an exhaust of gas or air must be equipped with mufflers. 3. The contractor must comply with the requirements pertaining to construction activities as specified in the rules and the conditions issued with the permit. Should there be any questions on this matter, please contact the Department of Health at 933- 0917. Lands formerly used for sugarcane production are now being developed into communities where residential homes, schools and commercial businesses are being constructed. Chemicals associated with the sugarcane industry persist in soil today and may be a threat to public health and the environment. Elevated arsenic levels were discovered in soil at former sugarcane production areas on the islands. The HEER Office has identified former sugarcane production areas for assessment throughout the state and plans to work with property owners to conduct environmental assessments to identify and address elevated soil arsenic levels prior to finalizing development plans for the properties. We recommend that you review all of the Standard Comments on our website: http://hawaii.gov/health/environmental/env-planning/landuse/landuse.html. Any comments specifically applicable to this project should be adhered to. The same website also features a Healthy Community Design Smart Growth Checklist (Checklist) created by Built Environment Working Group (BEWG) of the Hawaii State Department of Health. The BEWG recommends that state and county planning departments, developers, planners, engineers and other interested parties apply the healthy built environment Michael Yee July 24, 2018 Page 7 of 7 principles in the Checklist whenever they plan or review new developments or redevelopments projects. We also ask you to share this list with others to increase community awareness on healthy community design. • RHawaiiVetMemAmendREZ.doc 10/2/18 COUNTY OF HAWAII PLANNING DEPARTMENT RECOli/IlVIENDATION HAWAII ISLAND VETERAN'S MEMORIAL INC. AMENDMENT TO CHANGE OF ZONE ORDINANCE NO. 07 26 (REZ 06-000051) Upon careful review of the request, the Planning Director recommends that a favorable recommendation of the request to amend Condition C (Complete Construction) and an unfavorable recommendation to amend Condition B (Water Commitment) and Condition F (Install Street Lights and Traffic Controls) of Change of Zone Ordinance No. 07 26 be forwarded to the County Council. Since this recommendation is made without the benefit of public testimony, the Director reserves the right to modify and/or alter this position based upon additional information presented at the public hearing. This recommendation is based on the following findings: The applicant is requesting to amend Conditions B, C and F of Change of Zone Ordinance No. 07 26. Condition B required submittal of a water commitment payment to the Department of Water by September 16, 2007 (within 180 days of the effective date of the ordinance). Water commitments have been secured for Parcels 29 and 31 to support the combined veteran's center/community based outpatient clinic (Exhibit 15 of Application). The applicant has not yet made a water commitment payment for Parcel 30 to support the affordable housing project. This water commitment payment will be the responsibility of EAH/HKI Kawili LLC. The applicant is requesting to amend Condition B to make the water commitment payment for Parcel 30 payable upon securing financing and prior to project construction. Condition C required that construction of the project be completed by March 20, 2012 (five years from the effective date of the ordinance). The applicant is requesting to amend Condition C to allow completion of construction of the project within ten (10) years from the effective date of the amended ordinance. The applicant has made steady, substantial progress in moving the proposed development forward and requests this additional time to secure financing and continue the permitting process. Condition F requires the applicant to design, purchase and install street lights and traffic controls, as may be required by the Department of Public Works (DPW). The -1- applicant requests this condition be deleted because the applicant indicates based on a verbal consultation with DPW, entrance lights and traffic control measures will not be required for the project since streetlights and traffic controls already exist as the Kawili Street-Kapi`olani Street intersection, which is in close proximity to the project's access driveways at Kawili Street and Kapi`olani Street. The applicant, HIVM, is a 501(c)(3) nonprofit corporation administered by a volunteer Board with a mission to establish the Ka Hui Koa development project consisting of a combined veteran center(CVC) and community based outpatient clinic (CBOC) at its property on Kawili Street (Parcel 29). The CVC/CBOC building will co- locate several agencies and veteran service providers to offer a full range of services to active and,retired military members and their dependents. Co-located offices under one roof and a multi-media conference room for training sessions and group meetings will result in an efficient delivery of services, including health care, not currently available in Hawaii County. The CVC/CBOC is envisioned as a public building which will be a one- story, 10,600-square foot, ADA accessible building. Federal funds are being sought for the construction of this building and user tenants will share in the operating costs. In 2015, HIVM partnered with EAH Housing/HKI Kawili LLC to develop the affordable housing and community center components of the development on Parcel 30, which will consist of approximately 96 rental housing apartment units and a community center with spaces for a common lounge area, coffee bar, fitness room and property management offices. The multi-purpose room within the community center will be available to community groups for occasional use. HKI Kawili LLC is consulting with the County Office of Housing and Community Development to obtain Hawai`i Revised Statutes Section 201H status for exemptions from zoning code and ordinance condition requirements for the affordable housing project. CONDITION C The non-performance is the result of conditions that could not have been foreseen or are beyond the control of the applicant, successors or assigns, and that are not the result of their fault or negligence. The applicant requests a 10-year time extension to complete construction of the proposed development. The applicant has made substantial progress towards completing the project since the property was rezoned in -2- 2007. They have grubbed and rough graded the property, final graded Parcel 30, maintained the property on an on-going basis, constructed a two-lane access driveway/box culvert off of Kawili Street onto Parcel 31 to serve both the proposed affordable housing community and CVC/CBOC project, installed sewer stub-outs to serve both projects, and secured the property with fencing and gates. They have also partnered with EAH/HKI Kawili LLC for the development of the affordable housing project and have secured grant funding from the State for design of the CBOC project. The applicant will seek Final Plan Approval for the project components upon the successful amendment of the ordinance, and expects to commence construction of the affordable housing project in 2020, upon securing project financing and subsidies. Approval of the time extension request to comply with Condition C would not be contrary to the General Plan or Zoning Code nor the original reasons for granting the Change of Zone. There have not been any significant changes to the General Plan or Zoning Code for this area since the subject rezone was approved in 2007. At that time the General Plan LUPAG Map designation for the property was the same that it is today, High Density Urban. This designation includes uses such as general commercial, multiple-family residential at a density of up to 87 units per acre, and related services. The current RM-1 zoning district is consistent with the General Plan LUPAG Map designation and compatible with the surrounding land uses which are a mix of residential, commercial and educational uses. This favorable recommendation is made with the understanding that the applicant remains responsible for complying with all other applicable governmental requirements in connection with uses permitted within the Multiple-Family Residential zoning district, prior to its commencement or establishment upon the subject property. Additional governmental requirements may include the issuance of building permits, compliance with the Fire Code, installation of improvements required by the American with Disabilities Act(ADA), among many others. Compliance with all applicable governmental requirements is a condition of this favorable recommendation; failure to comply with such requirements will be considered a violation that may result in enforcement action by the Planning Department and/or the affected agencies. -3- CONDITION B AND CONDITION F Approval of the request to amend Condition B and Condition F would be contrary to the General Plan or Zoning Code and the original reasons for granting the Change of Zone. The applicant is requesting an amendment to Condition B in order to defer submittal of a water commitment payment for the affordable housing project until financing can be secured by the affordable housing developer, EAH Housing/HKI Kawili LLC. According to a letter from the Department of Water Supply(DWS) dated August 13, 2018,unless a water commitment is officially effected via a water commitment payment, water availability is subject to change without notice depending on the water situation. Thus, if the water commitment payment is deferred as requested, the applicant runs the risk of potable County water not being available for development of the affordable housing project on Parcel 30. The request is also not entirely consistent with the intent of the concurrency requirement in Section 25-2-46(m) of the zoning code, which indicates that a time extension for a change of zoning ordinance shall not be granted unless the DWS has determined that it can meet the water requirements of the project and issue water commitments using its existing system. For these reasons, the Planning Director does not support the applicant's request to defer the water commitment payment beyond 180 days from the effective date of the amended ordinance, which is the standard time period granted to secure water commitments for new rezones. The Director also recommends amending the condition to require the applicant to maintain valid water commitments for the CVC/CBOC project, which will expire May 31, 2020 according to a letter from DWS dated June 9, 2017 (Exhibit 15 of Application). The applicant is requesting to delete Condition F, which required the applicant to design, purchase and install street lights and traffic controls, as may be required by the Department of Public Works (DPW). The applicant requests this condition be deleted because the applicant indicates based on a verbal consultation with DPW, entrance lights and traffic control measures will not be required for the project since streetlights and traffic controls already exist as the Kawili Street-Kapi olani Street intersection, which is in close proximity to the project's access driveways at Kawili Street and Kapi`olani Street. In their memo dated August 21, 2018, the Department of Public Works- Engineering Division indicated that they object to the deletion of Condition F because -4- they will not be able to detennine streetlight and traffic control requirements until the applicant submits final construction plans showing the final locations of driveways. It should be noted that if upon approval of the final construction plan, the DPW determines the existing traffic controls and street lighting is sufficient to maintain public safety, the applicant will not be required to install additional devices. For these reasons, the Planning Director does not support the deletion of Condition F. Based on the above findings, the Planning Director recommends that a favorable recommendation of the request to amend Condition C (Complete Construction) and an unfavorable recommendation to amend Condition B (Water Commitment) and Condition F (Install Street Lights and Traffic Controls) of Change of Zone Ordinance No. 07 26 be forwarded to the County Council. In addition, the Planning Director recommends that existing conditions in the ordinance be revised to reflect the current standard language for conditions of approval. The accompanying draft bill to amend Ordinance No. 07 26 is provided for your consideration. Please note the proposed conditions of approval attached to the draft bill. Material to be deleted is bracketed and struck-through; new material is underscored. -5- COUNTY OF HAWAI'I •`! '%'1'•• STATE OF HAWAI`I _ ♦ f •Mi M T 4rE•OFHPJ BILL NO. ORDINANCE NO. (P(aij D -) AN ORDINANCE AMENDING ORDINANCE NO. 07 26, WHICH RECLASSIFIED LANDS FROM OPEN (0) TO MULTIPLE FAMILY RESIDENTIAL— 1,000 SQUARE FEET (RM-1) AT WAIAKEA, SOUTH HILO, HAWAII, COVERED BY TAX MAP KEY: 2-4-057:029, POR. 030 &POR. 031 (FORMERLY 2-4-057:001). BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Section 1 and Section 2 of Ordinance No. 07 26 is amended as follows: "SECTION 1. Section 25-8-33 Article 8, Chapter 25 (Zoning Code) of the Hawai`i County Code 1983 [(2005 Edition)] (2016 Edition, as amended), is amended to change the district classification of property described hereinafter as follows: The district classification of the following area situated at [Waiakca] Waiakea , South Hilo, Hawai`i, shall be Multiple Family Residential— 1,000 square feet (RM-1): Beginning at the southeast corner of this parcel, being also the south corner of an Abandoned Railroad Right-Of-Way and on the northwesterly side of Kawili Street, the coordinates of said point of beginning referred to Government Survey Triangulation Station"HALAI", being 5,217.14 feet South and 7,329.63 feet East, thence running by azimuths measured clockwise from true South: 1. 58° 10' 752.06 feet along Kawili Street; 2. Thence along the north corner of the intersection of Kawili and Kapiolani Streets on a curve to the right with a radius.of 30.00 feet, the chord azimuth and distance being: 103° 10' 42.43 feet; 3. 148° 10' 297.86 feet along Kapiolani Street; • -1- 4. 238° 10' 540.89 feet along Grant S-14,064 to The Protestant Episcopal Church in the Hawaiian Islands, the remainder of Governor's Executive Order No. 4014 and the remainder of • Government (Crown) Land; 5. 328° 10' 179.52 feet along Grant S-14,827 to Hilo Meishoin; 6. 238° 10' 241.17 feet along Grant S-14,827 to Hilo Meishoin; 7. 328° 10' 148.34 feet along an Abandoned Railroad Right-Of- Way to the point of beginning and containing an area of 4.888 Acres. All as shown on the map attached hereto, marked Exhibit "A" and by reference made a part hereof. SECTION 2. In accordance with Section 25-2-44, Hawai`i County Code 1983 [(2005 Edition)](2016 Edition, as amended), the County Council finds the following conditions are: (1) Necessary to prevent circumstances which may be adverse to the public health, safety and welfare; or (2) Reasonably conceived to fulfill needs directly emanating from the land use proposed with respect to: (A) Protection of the public from the potentially deleterious effects of the proposed use, or (B) Fulfillment of the need for public service demands created by the proposed use. SEE ATTACHED CONDITIONS • SECTION 2. Material to be deleted is bracketed and stricken. New material is underscored. -2- SECTION 3. [ - - - • - - : - -• : . . invalidity shall not affect the other parts of this ordinance._ Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid,the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable." SECTION 4.This ordinance shall take effect upon its approval. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAI`I , Hawai i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: -3- RM-1.5 I J R&10 CN-10 R.;-10 R&10 RS-10 114Pirvuhu W - — RS-10 Rs-10 R&10 / I- - RS40 RS-10 U 1 I 11 KINOOLE$T 0 0 c R40 24 cti RS-10 RS-101 R540 RS-10 RS-1) { 11 5,217.14 S RM-1 ;.. 7,329.63 E "HALAI"® ULULANT ST RM-1 C • RM-1 RS-/0 _ )(AMMAN!ST OPEN(0)TO MULTIPLE-FAMILY RS-10 RESIDENTIAL-1,000 SQ.FT(RM-1) R&10 4.888 ACRES 280 140 0 280 560 840 1,120 1,4Wee t AMENDMENT TO THE ZONING CODE AMENDING SECTION 25-8-33 (CITY OF HILO ZONE MAP) ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE 1983 (2005 EDITION), BY CHANGING THE DISTRICT CLASSIFICATION FROM OPEN (0) TO MULTIPLE-FAMILY RESIDENTIAL-1,000 SQ. FT. (RM-1) AT WAIAKEA, SOUTH HILO, HAWAII PREPARED BY: PLANNING DEPARTMENT COUNTY OF HAWAII "MK:2-4-057:029,Por.030&Por.031 (formerly 2-4-057:001) Date:November 16,2006 EXHIBIT"A" FOR REFERENCE ONLY (Hawaii Island Veterans'Memorial,Inc.:1216) CHawaiiVetMem-AmendREZ.doc 10/2/18 HAWAII ISLAND VETERAN'S MEMORIAL INC. AMENDMENT TO CHANGE OF ZONE ORDINANCE NO. 07 26 (REZ 06-000051) CONDITIONS OF APPROVAL A. The applicant, its successors or assigns shall be responsible for complying with all of the stated conditions of approval. B. Supply in accordance with its "Water Commitment Guidelines Policy" within one hundred and eighty days from the effective date of this ordinance.] The required water commitment deposit shall be paid to the Department of Water Supply within 180 days from the effective date of this amended ordinance in accordance with Rule 5 of the Department of Water Supply's Rules and Regulations. The applicant is responsible for maintaining valid water commitments to support the proposed development until such time that required water facilities charges are paid in full. C. Construction of the proposed development shall be completed within [five (5)] ten (10) years from the effective date of this amended ordinance. Prior to construction, the applicant, successors or assigns shall secure Final Plan Approval for the proposed development from the Planning Director in accordance with Section 25-2-70, Chapter 25 (Zoning Code), Hawai`i County Code. Plans shall identify all existing and/or proposed structures, paved driveway access and parking stalls associated with the proposed development. Landscaping shall also be indicated on the plans for the purpose of mitigating any adverse noise or visual impacts to adjacent properties in accordance with the requirements of Planning Department's Rule No. 17 (Landscaping Requirements). The applicant shall comply with landscaping requirements for RM zoning. D. All driveway connections to Kawili Street, Kapi`olani Street and Ululani Street shall conform to Chapter 22, County Streets, of the Hawai`i County Code. E. The applicant shall provide full improvements to the entire frontage along Kapi`olani Street consisting of, but not limited to, pavement widening with concrete curb, gutter and sidewalk, drainage improvements, and any required utility relocation, meeting with the approval of the Department of Public Works. F. The applicant shall also install street lights and traffic controls as required by the Traffic Division, Department of Public Works. The applicant shall be responsible for the design, purchase, and installation of such devices. G. A Solid Waste Management Plan shall be submitted to the Department of Environmental Management for review and approval prior to the issuance of a Certificate of Occupancy. H. All development-generated runoff shall be disposed of on site and shall not be directed toward any adjacent properties. I. A drainage study shall be prepared by a licensed civil engineer and submitted to the Department of Public Works prior to issuance of a construction permit. Any recommended drainage improvements, if required, shall be constructed meeting with the approval of the Department of Public Works prior to receipt of a Certificate of Occupancy. J. All earthwork activity, including grading and grubbing, shall conform to Chapter 10, Erosion and Sedimentation Control of the Hawai`i County Code. K. The applicant shall conduct a sewer study in accordance with the applicable wastewater system design standards prior to approval to connect to the County sewer system. Sewer lines or other facility improvements shall be installed within the development to connect with the County's sewer system, meeting with the approval of the Department of Environmental Management, prior to the issuance of a Certificate of Occupancy. L. In lieu of paying the fair share contribution, the applicant shall develop a multi- purpose facility. M. Should the Council adopt a Unified Impact Fees Ordinance setting forth criteria for imposition of exactions or the assessment of impact fees, conditions included herein shall be credited towards the requirements of the Unified Impact Fees Ordinance. N. To ensure that the Goals and Policies of the Housing Element of the General Plan are implemented, the applicant shall comply with the requirements of Chapter 11, Article 1, Hawai`i County Code relating to Affordable Housing Policy. This -2- requirement shall be approved by the Administrator of the Office of Housing and Community Development prior to Final Plan Approval for'any new residential structures, or prior to issuance of building permits [in] if the site is developed with single-family dwellings. O. [. ..- - - . . _ . . - , . - . . . , _- . - , . . . , State Historic Preservation Division (DLNR SHPD) shall be immediately notified. Subsequent work shall proceed upon an archaeological clearance from In the unlikely event that any surface or subsurface historic properties and/or resources, such as lava tube openings, concentrations of artifacts, structural remains or human skeletal remains are found during construction activities, the applicant shall cease work in the immediate vicinity of the find, protect the find from additional disturbance and immediately contact the State Historic Preservation Division (DLNR-SHPD) at(808) 933-7651 for further guidance. The applicant shall also notify the Planning Department immediately after contacting the DLNR-SHPD. Subsequent work shall proceed upon an archaeological clearance from DLNR-SHPD when it finds that sufficient mitigation measures have been taken. P. The applicant shall comply with all applicable County, State and Federal laws, rules, regulations and requirements. Q. An annual progress report shall be submitted to the Planning Director prior to the anniversary date of enactment of the ordinance. The report shall include, but not be limited to, the status of the development and to what extent the conditions of approval are being complied with. This condition shall remain in effect until all of the conditions of approval have been complied with and the Planning Director acknowledges that further reports are not required. -3- i [An initial extension of time for the performance of conditions within the ordinance may be granted by the Planning Director upon the following circumstances: 1. The non perfonnance is the result of conditions that could not have been - --- . . . - . . . - . .. • . , . - . 2. Granting of the time extension would not be contrary to the General Plan or Zoning Code. 3. Granting of the time extension would not be contrary to the original reasons for the granting of the change of zone. 1. The time extension granted shall be for a period not to exceed the period originally granted for performance (i.e., a condition to be performed within one year may be extended for up to one additional,year). 5. If the applicant should require an additional extension of time, the Planning Director shall submit the applicant's request to the County Council for appropriate action.] If the applicant should require an additional extension of time, the Planning Director shall submit the applicant's request to the Planning Commission and the Hawai`i County Council for appropriate action. S. Should any of the conditions not be met or substantially complied with in a timely fashion, the Director may initiate rezoning of the area to its original or more appropriate designation. -4- 1 - a, a''" �I�A uM 'y' $•"F "�'; ': 17n1� 167 ., — - .___ . r - I 1,. ,, Lt ir4,1_ , -..,->ir. :\111,,.,...--- ,1 .-. \,.till k,_44,I 1 ^_-'•* tltt III/ .� r - `/ l rHag'. t� . . �—) t 1 i u `r Sx fie'^- �, r , A II- - t '..I F ,d L' I � s r L� — -,:,,,,,,.%-N...;..A.-`,.Y +' ` � yyy�� `5 cc �'�'. ,'C "'`t�:v>xe�fi r i 5,,, rl — g4 +,firs,.'r _assn• .3iip_,,,...V4W-,..11-‘, '-'. ''`;.1-,..'..,7c,':-',A,cmtut-. tam 1 , 1...:.;.4:---£' j/J/t11 �` -te e..- _...'�;. ir.< �' ril ;.,:::,`,1,,7.,',' •: . ,�/ ..1-,i--,..,...ay '" ,q 1 CHANGE OF ZONE ORDINANCE NO . 07 26, WAS ADOPTED IN 2007 BY THE COUNTY COUNCIL TO REZONE 4.88—ACRES OF LAND FROM AN OPEN TO A MULTIPLE— FAMILY RESIDENTIAL- 1 ,000 SQUARE FOOT ( RIVE- 1 ) ZONING DISTRICT FOR THE PURPOSE OF DEVELOPING A 6,200—SQ . FT. VETERAN ' S CENTER, , AAND 1596,000—SQTO1 . FT. M .+ �,T 9 URPOSE COMMUNITY CENTER10 INDEP Ea�� DENT— LIVING APA6',----a,\ /\ ENN,I UNITS FOR SENIOR ; FFOO \` 7ABLE HOUSING WITH PREFERENCE TO VETER N,'\_. SPOUSES OF VETERANS is -.r: The applicant is requesting to amend Conditions B , C and F . 000NDITION B REQUIRED SUBMITTAL OF A WATER COMMITMENT PAYMENT TO THE DVVS BY SEPTEMBER 2007. WATER COMMITMENTS • HAVE BEEN SECURED FOR PARCELS 29 AND 31 TO SUPPORT THE COMBINED VETERAN'S CENTER (CVC)/ COMMUNITY BASED OUTPATIENT CLINIC (CBOC). HOWEVER, THE APPLICANT HAS NOT bi-L-uURED WATER COMMITMENTS FOR PARCEL 30 TO SUPPORT ;LI:FORDABLE HOUSINGPRO DAYIVIENT WILL BE THE RESPONSLBILITY OF THE . AFFORDABLE . DEVELOPER. APPLICANT REQUESTS TO AMEND WATER COMMITMENT PAYMENT FOR SECURING FINANCII\!G BY THE IL\F-T--- The applicant is requesting to amend Conditions B , C and F : ® CONDITION C REQUIRED THE CONSTRUCTION OF THE PROJECT BE COMPLETED BY MARCH 20, 2012 (5 YEARS FROM THE EFFECTIVE DATE OF THE ORDINANCE). THE APPLICANT REQUESTS TO AMEND CONDITION C TO ALLOW COIVIPLETION OF CONSTRUCTION OF THE PROJECT WITHIN 10 YEARS FROM THE EFFECTIVE DATE OF THE AMENDED ORDINANCE. • THE APPLICANT HAS MADE STEADY, SUBSTANTrA MOVING THE P': C )OS _y DEVELOPMENT FORWARD AN'D REQUESTS THIS ADDI € 1ON ',. SECURE FINANCING AND CONC -\!UE THE PERMITTING PRODE SS requesting 11., , ri r.,,,,„ ,..,._., ,,,,‘,,,,,,,,,. ci - T 0 .,.......2 Al ,.i , ,..7,,,, ,, . The applicant is req • Conditions B , C and F : ,. .. .. ';'C 0 N D I T 'NI F REQUIRED THE APPLICANT TO DESIGN, PURCHASE AND INSTALL STREET LIGHTS AND TRAFFIC CONTROLS, AS MAY BE REQUIRED BY THE DPW. _ THE APPLICANT RT (7„?.'UL-7-STS TO DELETE THIS CONDITION E',FCAUSE THEY INDICATE THA-'-- ,,... ; ID r'il. .) '-) 1"' C*P D ON A CON\JERSATION WITH DPV\i ,.,. ENTRANCE LIGHT:7:J AND TRAFFIC CONTROL ML__ AS U F.)'i,--=,-_,H--,7 ‘,,. '‘.,;1'-LIL,_ ri:\!:JCL-F. BE cs P--, „ E S T R„ET I r''' -11-c) i'-'-c.,\,,,L.,' REQUIRED FOIL-7,, 1-.- ....-----._.: ,:ii:P\OJEC .I_ SINC - .1.__. _Jut _ CONTROLS ALREADY EXIST A r HE KAM D] S-1-1---: P R 'Th\':" V 7-',..E-LI-7-!(<1.i'L',..7-' \:1,1_ ,S,lirciiR_,E E-T INTERS 1-4 i CI ! i ECTION, W i i . . , ,S IN C,i k'eD S LT . . .C....),/\,..!1 1=TY --1`''-'1--'' --:.'1"---''',- L::::- r--,- A 'i-,.,1 n, ..{: /3,p 0 r-.-4.:...1. . ,:,..:.- -. -_ -- In 1\ / , f\i ics f) .--r- v.: A V1in l':_.! STREL-- g '1--'' \''.--— ." 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' - • :-•'-g',-,',.•:''..:--:•' : - :.•' `••:''';'-::•:-.• -•:•,.,:••:-.,:4-W3;',•-!',--, .. r..•,1•40A.F.:•-:..1;a:-:--7.,.-Ak-.4-fe.1.,:'•_,Y,:•1.•; „;-•,;:,':•.,:-----: --,--_,-,-:::.-;,,-----, „ ..• APPLICANT ' S SITE PLAN FOR HOUSING DEVELOPMENT , .._. .. . .. . . . uillij• , ".1`..,:t7.:."'""'"•'`"'" , t Fit MINK.+1, • f ,*-7. 1 :. :.'• ....... e......,1 . .._ - ,c ..: 4 ,—. EP tSCOPAL -:`F,"':;-.7"::.".-,- CHURCf I ,,, ,, .....,,,,..,---. :...",*'.4' M * A ...........'.-... ....2 '11.2v....2.......2 ........ ..................Pr ,;(' 121Att i: ,-,-- ..... ....,.......... ,..... !.-?7, pi , .,,........,............. ...- '3 7 , !:a‘..'-: ,,............... • ,IZ.4. '' ' • . 2 , , •...............“.'.... .',...a I.ir Z,..,',i •- .... i 1- : &.4.*: 7. r---.. i 1--" r----- `o-t....^0.....,rmatti Lar...4.,.....2*.1.4 ,.. 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CY ft.''; 0.• y s t 4 ,.. t i = . 1---- f ,. .. , ,. , .,,i: 1 Ltd /.ar' 1 RX T .' cz L.L. ,_r: - 1 +d ti ('. i __ ........_____ _ _______ . . _____________ ___ W ,,. i- VIEW OF PROPERTY AND KAWILI STREET LOOKING EAST 1 yam- 4 r, N _� .a ♦..... • " s i - r - - - — _ — ____ .._.— 3. 1,e...u,ui:i...awu„ - .. i� ic• find„�[ i _ a < _ - w�.( r y=' :a VIEW OF PROPERTY AND KAPIOLA \1I STREET LOOKING SOUTH 1 -.-:•,..-.,-.,,,- ,,... ,,,...-.:,....,-..,,,-,N.,,,,,,,,.„,,,,,,.,-:-.,,,:•,t ,,,,,,:-.,-,,,,,..,....- ....,...... . . .„ . . F t h r '.' v .�.; . At .i�- ;t�; of i� 'r �1-= : yam.. �vl P .s- Yiw{- y►� ., + ? D ar T ,f y ✓ 44 tai -4 ;Y I : MS ... f F - ..,.. ,... .. dao-... .,.-!-,•„.. r, yr .. , _ :� PLANNING RECOMMENDATION A FtVOABLE LECOMMENDAUON DF HE REQLST AMEND CON r)7111 0 r C. TO PRO VI D E. A 10rYFART : . „-- L _ A NI kJ N A V n'" -7 N DA u u e " 1.0,) ciq 51/ t. I VA F ( NSTALL • WINDWARD PLANNING COMMISSION COUNTY OF HAWAI`I HEARING TRANSCRIPT NOVEMBER 7, 2018 A regularly advertised hearing on the application of HAWAII ISLAND VETERANS MEMORIAL INC. (AMEND REZ 06-000051) was called to order at 9:52 a.m. in the County of Hawai`i Aupuni Center Conference Room, 101 Pauahi Street, Hilo, Hawai`i with Chairman Joseph Clarkson presiding. COMMISSIONERS PRESENT: Gilbert Aguinaldo, Joseph Clarkson, Donald Ikeda, Thomas Raffipiy, John Replogle. ABSENT &EXCUSED: Donn Dela Cruz. ALSO PRESENT: Michael Yee (Planning Director), Malia Hall (Deputy Corporation Counsel for the Windward.Planning Commission), Jeff Darrow (Planning Program Manager), Maija Jackson (Planner), Christian Kay(Planner), Sarah Hata Finley(Commission Secretary), and Kim Tanaka (Secretary). And 25 members from the public in attendance. APPLICANT: HAWAII ISLAND VETERANS MEMORIAL,INC. (AMEND REZ 06-000051) Application to amend Condition B (Water Commitment), Condition C (Complete Construction), and Condition F (Install Street Lights and d Traffic Controls) of Change of Zone Ordinance No. 07 26, which reclassified 4.888 acresfrom an,Open(0)to a Multiple Family Residential– 1,000 square feet (RM-1)zoning district in 2006 The property is located at the north corner of the Kawili Street and Kapi`olani Street intersection,Waiakea, South Hilo, Hawaii, TMK: (3) 2-4- 057:029,portion of 030 and portion of 031. CLARKSON: The next item on the agenda is Hawaii Island Veteran's Memorial, Inc., application to amend certain conditions from a previous zoning change. JACKSON: All right. The next application is a request from Hawaii Island Veteran's Memorial, Inc. to amend Change of Zone Ordinance 07 26. The subject property is located in the Hilo District. It's generally shown in this location here by a red dot in the middle of the slide, and it's located just north of Kawili Street and a little bit east of—I'm sorry, a little bit west of Kino`ole Street. The area shown here in purple is the University of Hawaii at Hilo Campus. All right, so Change of Zone Ordinance No. 07 26 was adopted in 2007 by the County Council to rezone about four acres of land from Open to a Multiple Family Residential– 1,000 square foot zoning district. And,'they did that for the purpose of developing a 6,200–square foot veterans' 1 center, a 15,000-square foot multi-purpose community center, and about 96 to 110 independent • living apartment units for senior affordable housing with preference given to veterans and spouses of veterans. There—since 2007 when the ordinance was adopted, the Applicant has found another development entity, and they can explain more about that to you, but there's basically two major components of developing the property. One is the affordable housing and one is the veterans' center community-based, outpatient clinic. So, in order to implement the two components of the project, the Applicant is requesting to amend Conditions B, C, and F. Condition B required submittal of a water commitment payment to the Department of Water Supply by September of 2007. Water commitments have been secured for Parcels 29 and 31. This is to support the veterans' center outpatient clinic project; however, the Applicant has not yet secured water commitments for parcel 30. That's the location of the proposed affordable housing project. The payment would be the responsibility of the new_development entity that will develop the affordable housing project. So, the Applicant's regriest was to amend Condition B to make the water commitment payable for parcel 30 upon securing financing by the affordable housing developer. • Their second request is a time extension." Condition C required construction to be completed of the entire development by March 20th of 2012. The Applicant requests to amend the condition to allow an additional ten years from the effective date of the attended ordinance. They have made steady progress. They've completed a few different important project components. They actually constructed a driveway off of Kawili.Street into,that will service the primary access to the veterans' center project and then also service another access-to the affordable housing project. They've also done a lot of pre-planning and site plan development. So, they have made steady progress in the last,11 years. They are requesting the additional time to secure financing and to continue the permitting process. And, then.their last request is to amend condition actually delete Condition F. Condition F required the Applicant to design, purchase, and install streetlights and traffic controls as maybe required by Department of Public Works. '.They are requesting to delete the condition because they spoke with Department of Public Works staff, and during that conversation, they said that staff agreed that entrance lights and traffic control measures would not be required for the project since the streetlights and traffic controls already exist at the intersection of Kawili Street and Kapi`olani Street. This is'in,close'proximity to both of the project driveways. And, let's back up. So, this the Applicant's site plan. It shows their overall development plan. Just for orientation, Kapi`olani Street is on the left side of the slide. You have Ululani Street on the north side and then Kawili Street on the bottom of the slide. So, the driveway entrance that already exists that they did construct located in this location here. This will service the primary access to the future veterans' center outpatient clinic which is, will be located on the east side of the property. Then you have a parking lot, and then you have the entrance into the affordable housing project which you can see the various apartment units kind of a reverse L shape here. Then we have parking with another access that will serve the affordable housing project and community center on Kapi`olani Street. On the bottom of the slide, you see in this location here 2 • is the future community center. And, then there will be another access all the way up to the top out towards Ululani Street. And, then I have some close-up views of the various project components. So, this is a zoomed in view of the veterans' center, community-based, outpatient clinic. You see that Kawili Street on } the bottom, the entrance into and then like a loop driveway out of the site with the parking on the left side. The—it will be one structure. There will be a waiting room, quite a few exam rooms in this location here, a conference room, restrooms, break room, and then on the bottom of the slide are the offices associated with the veterans' center. This is a view of the proposed community center, and so you have a patio area that kind of separates two structures. One will have a multi-purpose room and a kitchen facility. There will be restrooms, some storage and office building or office rooms,and then the other side is like a gathering area that will have a TV, computer, some tables, and then a little fitness center in this location here. And, then the next—oh, I'm sorry, I thought I had a close-up view of the affordable housing, but I don't. So, the County zoning for the property is Multi[ple]-Family Residential– 1,000-square feet. That's shown in the brown. As I mentioned earlier, the University is located just across Kapi`olani Street to the west which`s shown in the purple. And, then you have a mix of Single- Family zoning which is shown in the yellow further to the east across Kinoeole Street. To the south is the Waiakea School campus. And, the General Plan designation of the property is High Density Urban, which allows high density residential single-family and multi-family residential use as well as community uses. This is an aerial view of the photo'[sic]. Again, you yeti have Kapi`olani Street on the west side; Kawili Street on the south side. That'one driveway entrance would be generally located I believe in this area here. Another entrance off of Kapi`olani;Street in this location, and then a. connection to Ulularii Street on thenorthend. The property is currently vacant. This is a view of the property looking towards the UH Campus, so towards the west; and the property is on this side here with the big tree. And, a view looking the other way. The truck is parked in that existing driveway entrance. This is a view of Kapi`olani Street, so the University would be just off the slide here, and then the subject property is located on the left side. The Planning Director is recommending a favorable recommendation for the time extension • request and an unfavorable-recommendation to amend Condition B and F, and I'll explain that briefly. So, we did get a comment letter back from Department of Water Supply and Department of Public Works regarding Condition B and F. So, the way Condition B works is our Zoning Code concurrency requirements say that anytime you apply for a Change of Zone or a time extension to a Change of Zone, we have to ensure that water is available to support that zoning change, and that requires that the Applicant secure water commitments from Water Supply. We've received a letter from Water Supply saying that because commitments haven't been secured for the affordable housing project, that there is no guarantee that water can be made available until they secure those commitments. 3 So, we understand that the Applicant wants to have a little more time in order for that affordable housing development entity to secure financing, but if more time is granted beyond like the normal 180 days, we are concerned that it won't meet concurrency requirements and water may not be available to actually build the affordable housing project. • Regarding Condition F, we got a memo from Department of Public Works saying that they would like to keep that condition in and not delete it because they want to be able to look at the Applicant's construction plans to see whether or not street lighting would be needed to illuminate the future' entrances. The current plan we have before you is a conceptual plan. The driveway locations may change slightly, and so that's why Department of Public Works doesn't want to remove the condition until they know exactly where those driveways will be located. So those are the two reasons for the unfavorable recommendation. And, that concludes my presentation. I'd be happy to answer any questions. • CLARKSON: Any questions from the Commission for staff? AGUINALDO: I do have one, Commi—I mean, on the public facility and services, item 21, water system, it states here, "County water is available to the property via an 8-inch waterline within Kawili Street. The applicant has paid the water commitment fee to provide water for the CVC/CBOC project and is....." As far as those fees, so that fees is paid and additional fees again? JACKSON: Yeah, so the veterans' center community outpatient project, that component, the water commitment fees have been paid, and they-have water commitments secured. It's the affordable housing component that has not secured those water commitments. AGUINALDO: Thank you. • • CLARKSON: There being no further questions, thank you. Will the Applicant and/or their representative please come forward? Would you please, if you can, raise your right hand? All of you. Anyone who is going to-testify. Do you swear or affirm to tell the truth on this matter before the Commission today? OHASHI: Yes, we do. WILLIAMS: I do. GUSHIKEN: Yes. CLARKSON: Please, whoever is going to begin first, introduce yourself and proceed. • OHASHI: Yes, Mr. Chairman, Commissioners, Maija, thank you very much for this opportunity. My name is Yukie Ohashi. I'm a planning consultant to the Applicant. I worked on the project in 2006, 2007 at the very start along with Lt. Colonel Bob'Williams here, and we secured the permits at that time. Since that time, I've seen HIVM work diligently towards 4 securing a partner to develop the housing component and so Ms. Marian Gushiken is here from EAH. She will be speaking about the housing component. With regard to the recommendation, so we have read and discussed the recommendations of the Planning Director, and, yes, we appreciate the extension to ten years. Then, with regard to the other two conditions, I'd just like to explain that initially, when HIVM came in with this project, they held the lease for all three parcels. The two parcels, the parcel that the CVC/CBOC or the Combined Veterans Center and the Community-Based Outpatient Clinic is to be built on as well as the Ululani Street extension which is going to be used just for access and also the third parcel, the larger parcel where housing is going to be held. So, HIVM held the lease for all three parcels. Since acquiring a housing development partner, the leases have been changed, so, yes, the water commitment was paid for the CVC/CBOC properties. Now, the lease for the housing component has gone through the process. We have received the approval of the BLNR to transfer the lease for the third larger parcel where housing is to be built, and that is in process of being executed. So, that lease has been approved by the BLNR and is going to be transferred to EAH. EAH has not been in a position, not being the leaseholder, to pay that commitment. So, we are very close to getting an executed lease for the housing parcel, and at that point, EAH will be in a position as the leaseholder to make the payment of the water commitment deposit. • Now, with regard to the Traffic Division's comment, it was our Misunderstanding that streetlights for illumination, we misunderstood that to be traffic signals. Big difference. So, there's a traffic signal at the intersection of Kino`ole and Kawili and also at Kawili and Kapi`olani. Our driveway will be approximately half way between the two, and so because of our misunderstanding, we request that this condition to be deleted. Anyway, any—shall I— WILLIAMS: —Well, we withdraw that, yes. Chairman Clarkson and Members of the Planning Commission, staff, Corp. Counsel, members of the public, thank you. Bob Williams is my name. I've been project manager for this for ten, twelve years. Long time in the pipeline coming and hallelujah, it's there. Just to clarify one thing. We're talking about a total parcel here that includes 5.6 acres. It's the upper tmk which extends all the way back to the tail end of Ululani Street and also where there is a water source back there. That's all earmarked for housing for EAH develop—our partner. The other sandwich little strip parcels are 60-foot wide roadway easement which is actually a County property that we added to or leased once we got the executive orders for thelipper parcel. And, then the lower parcel which at the time was about .9 acres, subsequently, we did a parcel consolidation, the old abandoned roadway easement to our makai, on the makai side, arid so it gave us about a sum total of about an acre plus to do a 10,600-square foot facility that we have already completed the design and engineering plans for. I've got a shovel ready to go minus zoning, and that parcel,just addressing those lower two parcels now, that consist of about an acre half and that parcel will ideally be built by the Department of Veterans Affairs, the VA. We—that was our\preferred developer and who we intended to build that for. By the way, we also put in two sewer taps on the driveway, and we also put in—we also have a sewer tap for our lower parcel, so we got the sewers completed. They are all roughed in. We got 5 ' the watercommitment, of course. We just need to bring electric over, and we're ready to roll the lower parcel. The lower parcel, as I say, is intended for the DVA. The DVA has finally agreed to put in a concept which is to consolidate their health arm along with their other service arm here in—and I'll clarify this in a moment—and to put 'em all in one location would make sense, so we agreed to do that. At that end, we've helped lobby politically and for legisla—for appropriations, and they have been awarded, according to Senator Schatz, they've been awarded—whose on the appropriations committee—they've been awarded $10 million to do a consolidated CBOC and combined veterans' center on that lower parcel. No, well no, that period. They will put that out as an RFP. They'll go out for a competitive bid which we welcome, and when we get that RFP which we're looking for, but they're so slow getting us all together, we then think we'll have, we think we'll have a—be in a strong position to say we got a development partner. If they still continue to do as they've done, we also have several non-profit health care providers to also partner with, and they would provide then medical outpatient clinic services to a larger community to include the general community and veterans can access that through what is known as the veterans' choice program. One fiirther clarification I should tell you. We talk about veterans on this island. We're talking about 25,000 people, more or less. Not to mention the reserve components, troops that made multiple deployments. You know, the reserve units:and the National Guard units some of which who are already forward deploying again. So, we got a large community of all ages and all generations. We've addressed this, too. We got involved with this because we saw all this diverse population of veterans and'there was a proliferation of veteran services scattered here and there, impossible to find, constantly changing `storefronts, and so we created our—this was, the organization was created not by me, but others. The—address the situation, so we're essentially a non-profit developer, that's what we are. We're not a service, veterans' service organization like Purple Heart or Marine Core League or all those units. So, what we have from the Department.of Veterans Affairs, currently we have a community- based outpatient clinic, an outpatient clinic by any other name, and that's located currently up across from the hospital in an awkward location, not a bus stop, on an expired lease, in a facility owned by Hilo Medical Center. [Inaudible] but they don't, they just keep kicking the can down the road so yeah, yeah,well, finally they're in gear to get out of there now, and that's one arm. The other arm is what is knownas the vet center program, totally separate bureaucracy from within the Veterans Administration, and they're located as an after-thought behind a dentist office over on Lanihuli Street which is mauka of Hilo Shopping Center. Impossible to find, and with cars all jammed up and parked on the streets in there in a, you know, a RM-1 type neighborhood. So, we're saying we're going to put most of it together in one facility, and VA finally agreed to do that. We're, they're going to put out an RFP for this, and we think we're going to be in a pretty good position. Once we get our zoning and we'll be shovel ready with our lower project with this. We designed that project with Fleming Associates Architect, Engineering Partners, an 6 engineering services firm here in town, and basically, and all have been plan approved by the DPW, Department of Public Works. So, we'll have shovel ready plans ready to roll for that. The water commitments, once we have'our zoning, we are shovel ready. We'll get Final Plan Approval on this. So, we're basically prepared to offer the VA a set of plans and say you're ready to go, let's go, with no acquisition fee and a long-term lease. We got a long-term lease for VAH housing, 65-year renewable lease. That's a sweet spot on a$1 million appropriated piece of property sitting up there, and we'll get a long-term lease from the Council, I'm confident of on the lower parcel once we have a development partner. So,hopefully that clarifies the whole— it's a bigger than a 4.88 parcel—that was the original parcel that was zoned, you know, and now we're addressing the zoning on that. I don't know if that creates:more confusion then it answers, but if you have questions, I'm happy to field them. Questions`? Do you want to elaborate on that? CLARKSON: Let's hear about the— WILLIAMS: —Housing— CLARKSON: The housing. WILLIAMS: So, I'm happy, I'm also happy first of all, I should say, or happy to have Yukie Ohashi out of retirement again, probably best planning consultant in Hawaii, and anyway, I'm really happy to have formed, also to have developed an ideal-partner who I learned about in Pacific Business News, when I realized who are these-EAH characters who are out here doing housing all over the State,wellnot really in Kauai, in'Oahu.; They'revery well regarded and `lo and behold, we've partnered up with them and:happily, too. Marian Gushiken, who is the director of development'for EAH, to_be a local'girl Who grew up in Mohouli Street and whose parents are, you know, ideal-candidates for a housing facility like this. I'm not by the way. I'll be over income. So, I won't:-without further ado, Marian Gushiken, take the floor here. GUSHIKEN: Thank you,Bob. Good morning,-everyone. We are very excited to be here. I think as-we'-ve all mentioned;it's been,a_long road for us, especially for HIVM, so we are particularly excited to be at this juncture,and for EAH, we'll just starting although it has been about a few years since HIVM first approached us about an interest in pursuing the affordable housing component'of this development. EAH is a non-profit housing development and management company-We were just celebrating our 50th anniversary this year. We came to Hawaii back in 1996 at the invitation of HUD to preserve some affordable units that were HUD financed on Oahu that were.at of converting to market rate uses. So,back in '96, we acquired nearly 500 units and have owned and operated them as affordable housing ever since then, and since that time have also been expanding our development activities in this State. So, we're excited to be here on the Big Island. It would be our first project here. Just to sort of confirm the statement that Yukie made with respect to Condition B, the genesis of that request to defer the water commitment payment came from really the mismatch between the timing of the ground lease that we would have and the need to make the payment at the time. So, as Yukie mentioned, now that the executive orders have been revised and we've negotiated the ground lease with the County, and that's as I understand almost imminent as far as execution, 7 we'll be in a position to have the site control and then we'll be, it should be no issue to pay the water commitment fee within the 180-day time frame that's required. So, that's no issue. Just a little bit with respect to the housing, the site plan showed, it will be a little bit different I think when we're all said and done but we're looking at between 90 to 95 units of affordable senior rental housing, one-bedroom units, in that L-shaped configuration. We do intend to have a community center that services both our residents as well as the multi-purpose room that would be available to both the residents as well as members of the public. We would have clusters of buildings throughout the site with open space throughout that, so tenants can traverse the site from the bottom to the top. The entry ways that were shown are, we're staying consisting with, so they'll be the main entry that we share with HIVM's group at Kawili Street. It's a right-in, right-out turn that we're planning. There would also be another entry at the Kapi`olani Street side, kind of at the top of the parcel that we own or lease, and-then also on the Ululani Street extension site. So, we're still in final stages of refining that site plan and then as I understand it, we'll be back in front of you for final plan review at-the appropriate time. The rental housing that we're intending to development, of course, would-be affordable to households at 60 percent or below, but we also,because of HIVM's involvement, are making about 10 percent of the units available:to a higher income bracket, so 80 percents and that was specifically to target veterans who might-be on a 100 percent disability payments. So, that would actually kick them over the 60 percent limits. So, we've now incorporated a small component of the project to serve folks at that 80 percent AMT°band. And,-We'd be happy to answer any questions you might have. _ _ CLARKSON: Well,let me just start out by trying to-resolve:soine confusion. Are you actually now then withdrawingyouur request;to amend Conditions B and T? OHASHI: Yes:_ ,Y_ CLARKSON: Okay, so any further questions for the Applicant? REPLOGLE::-.1 sort of do. I understand about the water, but what about the lighting? Are you going to put in the lights or isn't that a condition? GUSHIKEN: As we understand it the condition is that Public Works would review or Traffic would review it at the time that the construction plans are submitted. So, we're willing to— REPLOGLE: —Okay, I see what you mean. WILLIAMS: And, we have two construction plans. Theirs and also the veterans' center, and so, yeah, that entranceway on Kawili would be one critical one for sure, but probably all entranceways, and it would probably need entrance illumination, well that some overhead, curb lights, will impact curb lights. REPLOGLE: Okay. 8 WILLIAMS: To be determined. REPLOGLE: I understand. WILLIAMS: Yeah. REPLOGLE: Thank you. WILLIAMS: Sure. AGUINALDO: Mr. Chair, I have a question. For the affordable housing and we're talking about lease, what is, you know, how long more in order foryou guys to secure the lease? Secondly is are you guys planning to do the construction phase,you know, all at once as far as the affordable housing, the veterans' center? WILLIAMS: Staggered I would imagine. It all depends on finance as you know. So, Marian can speak to financing for the housing. I can speak to financing for the veterans' center. AGUINALDO: Right. And, as far as for the lease, isI know you guys are talking about securing the lease. How long more? Because water is an issue, yeah? No waterno building. WILLIAMS: Well, the Corp. Counsel, the County was shut yesterday, so I have a call into Joe Kamelamela and all saying where are the documents that are for Harry Kim to sign? And, I, presumably, those documents went from the DLNR, BLNR,-they went to the Corp. Counsel who was the action,agency.for the County, and it just prepares the-for what a perfect, you know, format, so then the Mayorsigns that. The Mayor 1ssupposed to sign this. They're here in the County somewhere. We can't locate the documents frankly. That's for EAH's lease. We have our lease. OHASHI Yes, HIVM lease document is in your, in your papers there. So, and then there's also a draft of the EAH or HKI lease. Now that is, I believe the language is the same. This is a lease that went to BLNR and is on route back to the County for execution by the Mayor. So, and the , housing lease is now a 65-year lease. WILLIAMS: Renewable. AGUINALDO: Mm-hmm `Thank you. WILLIAMS: Yes, a 65-year renewable, and it—and the lease, approved lease by the BLNR is here in the County, in the County administration somewhere. Not sure. After this meeting is over, I'll go to Corp: Counsel. In fact, Malia, is there, can you do that for us? Could you check on that fact `cause I do believe—I've called Ron Kim, and I've called Joe Kamelamela and said hey, you seen your BLNR lease documents? Where are there? They're here. The land agent from DLNR says no they're here, they're at the County. We just can't find them. 9 CLARKSON: .Okay, so it—based on my understanding of the testimony, the transfer of the lease is imminent. WILLIAMS: Yes. CLARKSON: And, regardless of that, they're withdrawing their application for an amendment to Condition B. HALL: And F. CLARKSON: And F. Are there any further questions? If not, thank you. We'll take public testimony. RAFFIPIY: Mr. Chairman, I just want to, I'd like to make a comment on this subject. I just want to let you know that I myself amd a veteran. I'm,a member, I' u a life member of Post 3 875 VFW, Veterans of Foreign Wars, and I use the service of CBOC and the vet center. And, I know it's frustrating. It is very frustrating when you=go:there, and in the vet center, there's no parking. Really no—you know that you going one way and-come out.the.other way, andyouu go in and; there's only a handful of parking and so many veterans that theyneed to utilize Same as up there, CBOC. You go up to CBOC across from the hospital,-and a lot of times, you go up there and there's not enough parking and then you have a lot of disabled veterans. They gotta go park across the street and try to cross that, Waianueriue, coming across to go to CBOC, and every time I look at it, I thought it was a very disgrace-you know,from the point of, you know, Hawaii taking care of their veterans That we cannot have one place_where the veterans they can go and get all the care that they need, and to even have_the housing right next to the CBOC, I think that's, it's really good;_A lot of us veterans we go,we volunteer in the schools to go read to the children and how nice it is.to.be right across the`school that you can just walk across and go and mentor and workwith the Children-across-the street-"in the school, Waiakea Elementary School and High'°School So, thank you very much-!---iknow this has been a long hall and appreciate, sir, Colonel Williams, Bob, for, you know, I know you've been very steadfast in all, navigating the bureaucracy to bring this project to this point. So, thank you very much, and thank you very much for EAH for coining up and stepping up and partner up with our volunteers to provide the housing development. So, 1'.11--vote, Mr.-Chairman, in favor of this project. - CLARKSON: Well,before we make a commitment, we need to hear from the public who wishes to testify. Thank you. Please be seated, and we'll proceed now with public testimony. Two people have signed up to testify, Ken Fujimoto and Jeremy Kelley. Would you both please come forward? Please raise your right hand. Do you swear or affirm to tell the truth on this matter before the Commission today? FUJIMOTO/KELLEY: I do. CLARKSON: Either one of you, whoever is proceeding, introduce yourself and then proceed with your testimony, please. 10 • FUJIMOTO: Thank you. Good morning, everyone. My name is Ken Fujimoto. I come before you as not only as a board member of HIVMI, but also importantly as a veteran. I served in the U.S. Army from 1963 to 1966. I fought in the Vietnam War as a helicopter crew chief. In 1964, I was wounded transporting South Vietnamese troops into battle, and because of my injury, I rely heavily on the community-based, outpatient clinic or CBOC. And, I look at it this way. As the County has done with the ADRC, I'd like to see a similar situation for the veterans where we can have a one-stop shop. We can have our medical taken care of and go to the other side and have our other—if we have any questions on other veteran issues or filing claims, we would have that. And, if possible, maybe an office for one of the veteran service organizations with their service officers which a lot of veterans are more comfortable with that instead of going direct to the VA. So, and that would be nice because for now, to get our medical services, we run all the way up Waianuenue, and to get other veteran services, we gotta run all the way down to Lanihuli Street, and as was reported by Mr. Raffipiy, there's always hardly any parking, and it's frustrating at times,but we carry on and hope in the future they'll be a better situation. And as for the housing component, an affordable senior rental apartment community would be best for a lot of the fellow veterans and their spouses`and also for. those in need;of housing. This housing availability will help our homeless and elderly`veterans with shelter. Although I do own my own home in Ninole, I can see that someday, I won't be able to maintain the property. That's when a senior rental apartment would be the best situation fo_r forme. So, I thank you for allowing me to speak on behalf of the veterans Thank you. KELLEY: Good morning, everyone. My name is Jeremy Kelley. CLARKSON: Please use the mic. HALL: Please use the microphone. KELLEY: The mic, sorry. LL. _ - HALL: Yes,please, thank you. KELLEY: My name is Jeremy Kelley. I joined the naval air reserve in Seattle at the age of 17. After one year in the reserve, I served three years of active duty and was honorably discharged from the Alameda Naval Air Station in October of 1961 and then five more years of reserve after that. I took advantage of veterans' benefits including ahome loan in the mid-60's. Educational benefits provided me with a huge range of aviation training all the way up through airline transport certification, flight instructor, helicopter flight instructor, a bunch of stuff. And, for the past ten years, I've utilized the medical, CBOC, also as a part of my veterans' medicals. I've been on the Board of Directors of Hawaii Island Veterans' Memorial for the last ten years, and have been the board secretary for the last seven. I joined the board with the idea of giving back as much as possible for the VA benefits that changed my life for the better since the mid- 60's, and I'm thankful to be actively helpful in implementing our mission to provide a really nice, low-cost senior independent living community with preference to veterans and their 11 spouses. This also includes a desirable livingoption for me, much the same as Ken just mentioned regarding maintaining my house, at some point not being able to. We've made great progress with our 1.5-acre shovel ready site in providing complete architectural engineering plans for a new community-based, outpatient clinic and combined veterans' center on our lot here in Hilo. The successful outcome of our mission will benefit any of our Big Island veterans and provide options for veterans from other islands as well. I appreciate being part of this effort to provide better and more easily accessible services for Hawaii Island Veterans. Thank you. CLARKSON: Are there any questions from the Commission for Mr. Fujimoto or Mr. Kelley? If not, thank you. Are there any other members of the audience that wish to testify on this matter? If not, I'll ask for a motion to close public testimony. HALL: Oh, sir, what is his name again? Sir, your hat. [Mr. Kelley left his hat on the testifier table.] KELLEY (from audience area): [Inaudible] all the time. RAFFIPIY: I move to close public testimony, Mr. Chairman. REPLOGLE: Second. CLARKSON: It's been Moved and seconded that public testimony be closed. All those in favor? - COMMISSIONERS: Aye.'_ _ CLARKSON: Opposed'? Public testimony is closed. :Is there a motion for action on this matter'? RAFFIPIY:. Mr. Chairman,-I'm going.to make the motion. I move that a favorable recommendation be forwarded to the County Council on the request to amend Change of Zone Ordinance No. 07.26 based on the Planning Director's recommendation, findings, and proposed amended conditions which shall be adopted. CLARKSON: Now, I just want to make sure that your motion includes the fact that— RAFFIPIY: —Right. CLARKSON: Okay. RAFFIPIY: Can I just ask one question? You know, up there its amended Rezone 06-51, and down here it says Change of Zone Ordinance 07 26. Which is the right number? JACKSON: The ordinance number is what you should refer to. The rezone is just our rezone file number. 12 RAFFIPIY: Okay. All right, so yeah, the motion included the conditions that was— CLARKSON: —Withdrawn. RAFFIPIY: Withdrawn, yes. Yes, sir. CLARKSON: Is there a second? REPLOGLE: Second. CLARKSON: Being moved and seconded, would staff poll the Commission, please? JACKSON: Okay, so the motion is to forward a favorable recommendation to the County Council to amend Condition C for a ten-year time extension. Commissioner Raffipiy? RAFFIPIY: Aye. JACKSON: Commissioner Replogle? REPLOGLE: Aye. JACKSON: Commissioner Aguinaldo? AGUINALDO: Aye.- JACKSON: Commissioner Ikeda? IKEDA: Aye. JACKSON: And, Chair Clarkson. CLARKSON: Aye. JACKSON: All right, the motion carries five, zero. CLARKSON: You'll be notified in writing of the action of the Commission. The discussion ended at 10:38 a.m. Respectfully submitted, Sarah Y. Hata-Finley, Secretary Windward Planning Commission • 13