HomeMy WebLinkAboutRES 664 Draft 01 2018-2020 .J�SY Os.........
COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION NO. 664 20
A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A MULTI-YEAR
LEASE AGREEMENT WITH BIG ISLAND BOND PARTNERS, LP, FOR THE
REHABILITATION OF WAIKOLOA GARDENS APARTMENTS LOCATED IN THE
DISTRICT OF SOUTH KOHALA, HAWAII COVERED BY TMK: (3) 6-8-003:030.
WHEREAS, on January 24, 1984, the County of Hawai`i ("Lessor"), through its Office
of Housing and Community Development ("OHCD"), entered into a 65-year lease ("Original
Lease") with JACK HALL KONA MEMORIAL ("Original Lessee"), a Hawai`i non-profit
corporation, to build and operate Waikoloa Gardens Housing Project ("Waikoloa Gardens")
which sits on a parcel composed of 100,144 square feet located at 68-1820 Pua Melia Street in
Waikoloa, Hawai`i, 96738, on TMK: (3)6-8-003:030; and
WHEREAS, the Original Lessee successfully secured funding and built townhomes
composed of 24 apartments (the "Premises"), and secured U.S. Department of Housing and
Urban Development ("HUD") Section 8 rental vouchers for the project; and
WHEREAS, the Original Lessee determined the Premises are in need of substantial
renovations; and
WHEREAS, the Original Lessee has entered into a partnership with Ahe Group, LLC to
complete the renovations. Ahe Group, LLC has experience in the affordable housing
development industry and has demonstrated success in all facets of development, from
acquisition and rehabilitation to new construction and ownership throughout the State of
Hawai`i; and
WHEREAS, the Original Lessee desires to amend the Original Lease and assign all of
its interests to BIG ISLAND BOND PARTNERS LP, a Hawai`i limited partnership, whose
address is at 157 Makawao Street, Kailua, Hawaii 96734 (the "Lessee"), and Lessee desires to
amend and restate the Original Lease in its entirety; and
WHEREAS, the Lessee will seek funding for the rehabilitation of the premises through
Low Income Housing Tax Credit allocation and other soft funding sources; and
WHEREAS, for the duration of the Lease, the Lessee shall use said Premises solely as a
rental housing facility for low and moderate income family housing and related uses in
accordance with federal, state or county laws of such other family housing which is a"qualified
low-income housing project", health care, nutrition programs, or support services for residents
including residents of rental units on premises; and
WHEREAS,the Lessee's use of the Premises shall be operated and rented at rents to
tenants with incomes that do not exceed United State Department of Agriculture ("USDA")
income admission limits at time of admission and Lessee shall conform to the rental ceiling
established and as amended from time to time by the USDA in its administration of the Multi-
Family Housing Rental Assistance Program (together with the admission limits, the "USDA
Requirements") for the duration of the Lease; and
WHEREAS, the proposed transfer of leasehold rights to the Lessee would ensure that
the residents of Waikoloa Gardens Apartments can continue to live in safe, decent and
affordable rental housing; and
WHEREAS, Chapter 2, Article 19, Section 2-120(a)(2), Hawaii County Code, as
amended, provides that the County Council may direct the Finance Director to negotiate the
disposition of real property by lease to affordable housing developers at such rentals and on such
terms and conditions as deemed proper; and now, therefore
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, that the
Finance Director is hereby authorized to negotiate a multi-year lease with BIG ISLAND BOND
PARTNERS LP for the purpose of rehabilitating and maintaining the existing rental housing
apartment for senior citizens at a set lease rental amount of Ten Dollars ($10.00) per year.
BE IT FURTHER RESOLVED that the Mayor of the County of Hawaii or his
authorized representative is hereby authorized to execute the lease agreement and any other
documents required to induce financing entities to provide funding for the project; and
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the Office of the Mayor, the Department of Finance, and the Office of Housing and
Community Development.
Dated at Kona , Hawaii, this 17th day of June , 2020 •
INTRODUCEI
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COUN M ,sb► • 1 Y OF H• AI`I
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i 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 ad',
ted b the COUNCIL of the
County of Hawaii on June 2020 KANEALI`I-KLEINFELDER X i
—_
KIERKIEWICZ X
LEE LOY X
ATTEST: POINDEXTER X '
RICHARDS X
VILLEGAS X
9 0 0 0
Reference: C-968/Waived FC
TY CLERK HAIRPERSON& PRESIDING OF ICER RESOLUTION NO. 664 20