HomeMy WebLinkAboutCOM 0966.000 2018-2020 •
Harry Kim o+tv o`"•y' Deanna S. Sako
Mayor .••� ' Director
Steven A. Hunt
Deputy Director
•r{oF•HP.p
County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720
(808)961-8234 • Fax(808)961-8569
May 28, 2020
Aaron Chung, Council Chair and ~a .�
Members of the Hawai`i County Council
Hawai`i County Council •
25 Aupuni Street t., •
Hilo, Hawaii 96720 ,. ,J
7,17_7 rs
Re: Resolution for multi-year amended and restated lease agreement ----
Enclosed is a resolution authorizing the County to enter into a multi-year amended and
restated lease for 75 years with Big Island Bond Partners, LP for the rehabilitation and
leasehold rights of Ainakea Elderly Apartments. Kohala Union Housing Corporation (the
original lessee) desires to amend the original lease and assign all of its interest to Big
Island Bond Partners, LP to complete the rehabilitation of the premises, which will
continue to serve as a rental housing facility for low and moderate income elderly.
The Office of Housing and Community Development requests that this resolution be
waived from Finance Committee and be placed on the June 17, 2020 Council agenda in
order to expedite this transaction. If you have any questions, please do not hesitate to
contact Christine Nguyen of the Office of Housing and Community Development at 961-
8379.
4
Deanna S. Sako
Director of Finance
Enc.
c: OHCD •
<.R'eS. t43(Pa-ate
Comm. No.
Ref. To: .CUnu I - fG
Hawai'i County is an Equal Opportunity Employer and Provider Rei.Dak:MAY 2 9 2020
1-1 Form-#: B-52
7118191
DEPARTMENT OF FINANCE
REQUESTFOR COUNCIL ACTION
;•
Office of Housing & Community
DEPARTMENT: Development DATE: 5/12/2020
STAFF CONTACT: aity PHONE: 323-4303
1
A. REQUEST:
-1 The Office of Housing and Community'Development(OHCD) requests that the-County enter into a multi-year
amended and restated lease for 75 years with Big Island Bond Partners, LP far the rehabjltation and
leasehold rights for Ainakea Elderly,Apartments located'in Kapaau, District of North Kohala, Hawaii covered
by TIVIK: (3)5-3=01I :107 as required per Chapter 2,•Article 19, Section 2-120(a)(2), Hewer' County Code.
OHCD respectfully requests that theabsove-referenced matter be waived from Committee to the full Council
for action et the next,Council meeting.
1?: B. BACKGROUNDAND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
History
-1 On January 27, 1989, the County of HaWail entered,into'a:55-year lease with Kohala Unian Housing
s• -Corporation (KUHC) ("Original Lessee"),,ra Hawaii nonprofit corporation,to build and operate the Ainakea
1 Elderly Housing Project which sits on a pat cel containing 132,155 square feet located at 53-3996 Ainakea
• 1-
Drive, Kapaau, Hawaii,96755, on TMK: (3)5-3-01:1:107; and
KUHC successfully secured funding and allowed the construction of multiple single-story buildings with a
total of 21 one-bedroom apartments and one meeting room•(the Trernisee), and secured U.S. Department
[1. of Housing and Urban Development ("HUD') Section 6 rental vouchers for the project; and
-I New, thirty years later, the KUHC has identified the need,to renovate this cornplek's aging structures.
The.KUHC searched for a local affordable housing partner.with renovation experience and entered into an
agreement with Ahe Group Since 2014, Ahe Group-is ore of Hawaii's most successful developers dedicated
to developing1 'quality,affordable,hoysing communities with an emphasis on family and senior„ ,
housing, and workforce housing units who hasoverseen over,$71 million dollars in new constrUction and
rehabilitation of affordable:hoysing.,
:**** SEE ATTACHED SHEET
11
SIGNED: DATE:
Department Head
;•
hI
3letns1(
1
........
,..., ,
13-52 Continued for the[ Amended and Restated Lease for 75 years with Big island Bond
„Partners,.LP for TMK: (3)‘ 6- -01 i A 07
.
Their portfolio'includes affordable 15 affordable housing projects located in Kona,
I , Oahu, and Kauai.
r<",4
To formalize this Partnership, KONG and Ahe Group created the entity Big island
Ii Bond Partners; LP for the future renovation and management of the Ainakea
Elderly Housing complex.
. Big Island Bond Partners, LP-will seek funding forthe rehabilitation of the
1'
premises.through Low Income Housing Tax Creditallocatioh and other soft
funding sources.
The proposed transfer of le,asehold rights to the Big.island Bond Partners; LP
=;
i., would ensure that the residents Of Ainakea Elderly Housing Cart continue to live
;.
in safe, decent and affordable rental housing;
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s VI OF How ,, AARON S.Y.CHUNG
MAILE MEDEIROS DAVID .�°'x 9�.''s KAREN EOFF
Chairperson �y�,``M0'. MATT KANEALI`I-KLEINFELDER
% * , .fil,�Ir c* ASHLEY L.KIERKIEWICZ
HERBERT M."TIM"RICHARDS,III ='='==— SUSAN L.K.LEE LOY
Vice Chair • sr;. ,i s??
Mo;:•:% _ VALERIE T.POINDEXTER
, e ' REBECCA VILLEGAS
HAWAII COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building
25 Aupuni Street
Hilo,Hawai'i 96720
May 29, 2020
Aaron S.Y. Chung, Council Chair
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
RE: Resolution No. 662-20 : A RESOLUTION AUTHORIZING THE
MAYOR TO ENTER INTO A MULTI-YEAR LEASE AGREEMENT WITH BIG
ISLAND BOND PARTNERS, LP, FOR THE REHABILITATION OF AINAKEA
ELDERLY HOUSING LOCATED IN THE DISTRICT OF NORTH KOHALA,
HAWAII COVERED BY TMK: (3) 5-3-011:107.
Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of
Hawai`i,this written request is submitted with my approval that the above-referenced matter be
waived from the Committee on Finance to the full Council for immediate action. In reviewing
this matter, timely approval is crucial. It is therefore advantageous that approval is granted and
the matter be placed onto the next Council agenda for review. However, in the event this request
is denied, for whatever reason, I understand the matter shall be referred to the Committee on
Finance for placement on its future agenda.
Sincerely,
Maile David, Chairperson
Committee on Finance
Approve Date/Waive to Council: Disapproved/Date/Refer to FC:
it( Aaron S.Y. Chung, Council Ch it Aaron S.Y. Chung, Council Chair
Hawai`i County Council MAY 2 9 2020Hawai`i County Council
MD/lm
Hawaii County is an Equal Opportunity Provider and Employer