HomeMy WebLinkAboutCOM 0967.000 2018-2020 Harry Kim '.<17°,f''+k� Deanna S. Sako
Mayor uc' : Director
+ Steven A. Hunt
•,o- Deputy Director
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
Members of the Hawai`i County Council '`
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
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 Pahala Holei Partners, LP for the rehabilitation and
leasehold rights of Pahala Elderly Apartments. Ka`u Housing Corporation (the original
lessee) desires to amend the original lease and assign all of its interest to Pahala Holei
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.
Deanna S. Sako
Director of Finance
Enc.
c: OHCD
(12c9"6- °>
Comm. No. Call,
Ref:"To: COUIIN 041 Ft)
Hawai'i County is an Equal Opportunity Employer and Provider Ref.Date MAY 2 9 2020
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Form# B-52
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7/18/91
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DEPARTMENT OF FINANCE
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(` REQUEST FOR COUNCIL ACTION
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Office of Housing & Community
DEPARTMENT: 'Development DATE: 5/1112020
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STAFF CONTACT. Anne Bailey. ._._...__m_ RHONE: 323-4303
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A. REQUEST:
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1,1 s1 The Office of Housing and Community Development (OHCD) requests that the County enter a it uiti-year
amended and restated lease for 75 years with Pahala Motet Partners, LP for the rehabilitation and leasehold
r rights to Pahala Elderly Apartments located in Pahala, District of Kau, Ha*aii covered by TMK (3) 9-6-
017:038 as required per Chapter'2,Article 19; Section 2-120(a)(2), Hawaii.County Code.
The Office of Housing and Community-Development respectfully request that the above-referenced matter
al be waived from Committee to the full Council for action at the next Council`meeting,
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1,1 B. BACKGROUND AND JUSTIFICATION (USE ADDITIONALSHEETS AS NEEDED):
l " In 1984,the County of Hawaii (County) embarked:on:a partnership with C. Brewer, and the ILWU to build
`i a new elderly'housing project adjoining the existing Pahala Elderly Housing Complex:
I:;i .1 The plan was to build an,additional S°uriits,on an adjacent parcel (TMK:(3)9.6-017:038) which was being
l` donated to the County by C. Brewer.
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'` `--i The ILWU worked with the County to develop-the unitsl with financial assistance from HUD Section 202_
'' financing (long-term).and CDBG funds($75,000).for site,improvements for the development:
i' -.1 The Kau,Housing Corporation (KHC), a non-profit corporation, Was forrned to manage the'development and
ederly housing rental prograrii.
' In 1985,the Count leased the parcel to KHC for'55 ears to develo the affordable housingproject. .
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1987, all 8 single bedroom &bathroom apartments:and a'community room were completed and rented.
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1 1 Now, twenty-three years later, the KHC has,iderif Pied the.need to renovate this complex'saging structures.
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**R" SEE-ADDITIONAL SHEET
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SIGNED:, DATE: Z
Department Head
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or
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b-52 Continued
Amended,and Restated Lease for 75 years with Pahala.Holei Partners, LP for TMK: (TIVIK::(3)9-
6-017:038)
a The KHC,Seardhed for a local affordable housing partner with renovation
experience and entered intoan agreement'with Ahs Group:,
n Since 2014, Ahe Group is one of Hawaii's most sutceasful,clevelopers dedicated
11 to developing quality affordable housing comrnunitiesmith an emphasis on multi-
family, senior housing, and workforce housing units who haS overseen Over$71
dollarstri new Construction and rehabilitation of affordable housing,
a Their portfolio includes affordable 15 affordable housing projects located in Kona,
Oahu, and Kauai:
To formalize This:partnership, KHC and Atte:Group created,the entity Pahala
Holei Partners, LP for the future renovation and management of the Pahala
Elderly Housing complex:
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- Big Island Bond Partners, LP haesecurecifundingfor the rehabilitation of the
1;! premises in the form of a$400,000 Affordable-HoUsing Program direct subsidy
through'the Federal Home Loan Bank and a $326,000 permanent lean from First
Hawaiian Bank:
0 The proposed transfer of leasehold rights to the Big Island Bond Partners, LP
would ensure that the elderly residents of Waikoloa Garden Apartments can
111 continue to live.insafe,'decent and affordable rental housing.
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ZOO- yq AARON S.Y. CHUNG
MAILE MEDEIROS DAVID = °'fir q�,'•, KAREN EOFF
Chairperson `
MATT KANEALI -
KLEINFELDER
' ti46�.
•*; ASHLEY L.KIERKIEWICZ
HERBERT M."TIM"RICHARDS,III s •, SUSAN L.K.LEE LOY
Vice Chair s �; , Ma;:P.� VALERIE T.POINDEXTER
" ?rF OF-i REBECCA VILLEGAS
HAWAII COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building
25 Aupuni Street
Hilo,Hawaii 96720
May 29, 2020
Aaron S.Y. Chung, Council Chair
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
RE: Resolution No. 663-20 : A RESOLUTION AUTHORIZING THE
MAYOR TO ENTER INTO A MULTI-YEAR AMENDED AND RESTATED
GROUND LEASE AGREEMENT WITH PAHALA HOLEI PARTNERS LP, FOR THE
REHABILITATION AND LEASEHOLD RIGHTS OF PAHALA ELDERLY
APARTMENTS PROJECT LOCATED IN PAHALA, DISTRICT OF KA`U, HAWAI`I
COVERED BY TMK: (3) 9-6-017:038.
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
Approved ate/Waive to Council: Disapproved/Date/Refer to FC:
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1#Aaron S.Y. Chung, Council Chai Aaron S.Y. Chung, Council Chair
Hawai`i County CouncilMAY 2 9 2021) Hawaii County Council
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Hawaii County is an Equal Opportunity Provider and Employer