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^!- STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES Land Division Honolulu, Hawaii 96813 September 9, 2016 Board of Land and Natural Resources PSF No. 160D-082 State of Hawaii Honolulu, Hawaii OAHU Consent to Amended Subleases for General Lease No. S-5805 for the Extension of the Subleases' Terms; Waikiki Community Center, as Sublessor, to Native Hawaiian Hospitality Association and Waikiki Beach Chaplaincy, Inc., as Sublessees, Waikiki, Honolulu, Oahu, Tax Map Key: (1) 2-6-025:008. APPLICANT: Waikiki Community Center, as Sublessor, to Native Hawaiian Hospitality Association and Waikiki Beach Chaplaincy, Inc, as Sublessees, both entities are domestic nonprofit corporations. LEGAL REFERENCE: Section 171-36(a)(6), Hawaii Revised Statutes, as amended. LOCATION: Portion of Government lands situated at Waikiki, Honolulu, Oahu, identified by Tax Map Key: (1) 2-6-025:008, as shown on the map attached as Exhibit 1. AREA: 1.56 acres, more or less. SUBLEASE AREA: Native Hawaiian Hospitality Association: 356 square feet. Waikiki Beach Chaplaincy, Inc.: 989 square feet D-5

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STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESOURCES

Land Division

Honolulu, Hawaii 96813

September 9, 2016

Board of Land and Natural Resources PSF No. 160D-082

State of Hawaii

Honolulu, Hawaii OAHU

Consent to Amended Subleases for General Lease No. S-5805 for the Extension of the

Subleases' Terms; Waikiki Community Center, as Sublessor, to Native Hawaiian Hospitality

Association and Waikiki Beach Chaplaincy, Inc., as Sublessees, Waikiki, Honolulu, Oahu,

Tax Map Key: (1) 2-6-025:008.

APPLICANT:

Waikiki Community Center, as Sublessor, to Native Hawaiian Hospitality Association and

Waikiki Beach Chaplaincy, Inc, as Sublessees, both entities are domestic nonprofit

corporations.

LEGAL REFERENCE:

Section 171-36(a)(6), Hawaii Revised Statutes, as amended.

LOCATION:

Portion of Government lands situated at Waikiki, Honolulu, Oahu, identified by Tax Map

Key: (1) 2-6-025:008, as shown on the map attached as Exhibit 1.

AREA:

1.56 acres, more or less.

SUBLEASE AREA:

Native Hawaiian Hospitality Association: 356 square feet.

Waikiki Beach Chaplaincy, Inc.: 989 square feet

D-5

BLNR - Consent to amend subleaseGL S-5805 Page 2 September 9, 2016

TERM OF LEASE AND ANNUAL RENTAL:

30 years, commencing on April 1, 2007 and expiring on March 31, 2037 at an annual rental

of $156. Next rental reopening is scheduled for April 1, 2017.

SUBLEASE CHARACTER OF USE:

NHHA: Provide social programs for youth.

WBC: Provide religious services to the community

TERM OF SUBLEASE:

NHHA: April 21, 2016 to October 15, 2017WBC: May 1,2016 to April 30, 2019

CURRENT MONTHLY SUBLEASE RENTAL:

NHHA: $487.72WBC: $1,354.93 *Both changed since last Board approval in September 2015.

RECOMMENDED ADJUSTMENT TO LEASE RENTAL:

None, based upon a deficit net income amount of -$3,43 1.55, as of May 2016.

CHAPTER 343 - ENVIRONMENTAL ASSESSMENT:

In accordance with Hawaii Administrative Rule Sections 1 l-200-8(a) (1) and the Exemption

List for the Department of Land and Natural Resources approved by the Environmental

Council and dated June 5, 2015, the subject request is exempt from the preparation of an

environmental assessment pursuant to Exemption Class No. 1, that states "Operations,

repairs or maintenance of existing structures, facilities, equipment, or topographical features,

involving negligible or no expansion or change of use beyond that previously existing". See

"Exemption Notification" attached as Exhibit 2.

DCCA VERIFICATION:

SUBLESSOR and SUBLESSEES:Place of business registration confirmed: YES x NO

Registered business name confirmed: YES x NO

Good standing confirmed: YES x NO

REMARKS:

Since 1982, WCC has been the lessee for the subject property to serve community service

BLNR - Consent to amend subleaseGL S-5805 Page 3 September 9, 2016

purposes located upon State land. Since the Board issued the new thirty (30) year lease [GL

5805] to WCC in 2007, the Board has given its consents to various subleases between WCC

and other non-profit entities.

At its meeting of September 11, 2015 (see Exhibit 3), the Board gave its consent to four(4)

subleases, including the two covered in this submittal which expired in April and May 2016.

Today's request pertains only to the extension of the term and rent of the subleases

mentioned above, while the remaining terms are kept unchanged.

Based upon WCC's most current income statement as of May 2016, staff noted a deficit net

income amount of: -$3,431.55. Within the report, rental income payments to WCC were

taken into account and reported as revenue. As such, staff believes that no adjustment(s) to

the master lease rent payment amount is warranted at this time for WCC to pay [i.e. sandwich

rent]. The revenue and expense report has been filed for reference purposes.

WCC is currently in compliance with the terms and conditions of the subject master lease.

The Department of Planning and Permitting and the Department of Health have not

responded to staff's request for comments regarding the subject request, as of the time of the

writing of this report.

There are no issues regarding any rental reopening, as the next reopening will not occur until

in 2017. Staff has no objection to the subject request.

RECOMMENDATION: That the Board

1. Declare that, after considering the potential effects of the proposed disposition as

provided by Chapter 343, HRS/ Hawaii Administrative Rule Sections 1 l-200-8(a)(l)and the Exemption List for the Department of Land and Natural Resources approved

by the Environmental Council and dated June 5,2015, this project will probably have

minimal or no significant effect on the environment and is therefore exempt from the

preparation of an environmental assessment.

2. Consent to amend the subleases for General Lease No. S-5805 with Waikiki

Community Center as Sublessor, to Native Hawaiian Hospitality Association and

Waikiki Beach Chaplaincy, Inc. as Sublessees, subject to any applicable conditions

cited above which are by this reference incorporated herein and further subject to the

following terms and conditions:

A. The standard terms and conditions of the most current consent to amend the

sublease form, as may be amended from time to time;

B. Review and approval by the Department of the Attorney General; and

BLNR - Consent to amend sublease

GL S-5805 Page 4 September 9, 2016

C. Such other terms and conditions as may be prescribed by the Chairperson to

best serve the interests of the State.

APPROVED FOR SUBMITTAL:

/'

/^ / ^ L 1.( U^L.Suzannel). Case, (chairperson

Respectfully Submitted,

Timmy CheeLand Agent

BLNR - Consent to amend sublease

GL S-5805 September 9, 2016

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EXHIBIT 1

BLNR - Consent to amend sublease

GL S-5805 September 9, 2016

EXEMPTION NOTIFICATIONRegarding the preparation of an environmental assessment pursuant to Chapter 343, HRS and

Chapter 11-200, HAR

Project Title:

Project / Reference No.

Project Location:

Project Description:

Chap. 343 Trigger(s):

Exemption Class No.:

Consulted Parties:

Recommendation:

Consent to Amend the Sublease to Native Hawaiian Hospitality

Association and to Waikiki Beach Chaplaincy, Inc. for General Lease

S-5805

GL S-5805

Honolulu, Oahu, TMK (1) 2-6-025:008

Request Consent to Amend the Sublease for General Lease S-5805

Use of State Land

In accordance with Hawaii Administrative Rule Section 11-200-

8(a)(l), and the Exemption List for the Department of Land andNatural Resources approved by the Environmental Council and dated

June 5,2015, the subject request is exempt from the preparation of an

environmental assessment pursuant to Exemption Class No. 1, that

states "Operations, repairs or maintenance of existing structures,

facilities, equipment, or topographical features, involving negligible

or no expansion or change of use beyond that previously existing".

The subj ect request extends the existing use of the subject premises to

serve community services purposes. As such, staff believes that the

proposed use would involve negligible or no expansion or change in

use of the subject area beyond that previously existing.

Agencies as noted in the submittal.

It is recommended that the Board find this project will probably have

minimal or no significant effect on the environment and is presumed

to be exempt from the preparation of an environmental assessment./

/

.^1-^^- ^k 'L-e-

Suzanne D. Case, Chairperson

-/.._./,.-

Date

EXHIBIT 2

STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESOURCES

Land DivisionHonolulu, Hawaii 96813

September 11, 2015

Board of Land and Natural Resources PSF No. 150D-077State of HawaiiHonolulu, Hawaii OAHU

Request Consent to Sublease General Lease No. S-5805, Waikiki Community Center,as Sublessor, to: Native Hawaiian Hospitality Association, United Self Help, Waikiki

Beach Chaplaincy Inc. and International Church of the Foursquare Gospel, dba HopeChapel, as Sublessees, Waikiki, Honolulu, Oahu, Tax Map Key: (1) 2-6-025:008.

APPLICANT:

Waikiki Community Center, as Sublessor, to Native Hawaiian Hospitality Association,United Self Help, Waikiki Beach Chaplaincy Inc. and International Church of the Foursquare

Gospel, dba Hope Chapel, as Sublessees, all entities are domestic non-profit corporations.

LEGAL REFERENCE:

Section 171-36(a)(6), Hawaii Revised Statutes, as amended.

LOCATION:

Portion of Government lands situated at Waikiki, Honolulu, Oahu, identified by Tax Map

Key: (1) 2-6-025:008, as shown on the map attached as Exhibit 1.

AREA:

1.56 acres, more or less.

SUBLEASE AREA:

Native Hawaiian Hospitality Association: 356 square feet.

United Self Help: 229 square feet

Waikiki Beach Chaplaincy: 989 square feet

International Church of the Foursquare Gospel, dba Hope Chapel: 991 square feet

APPROVED BY THE BOARD OF EXHIBIT ^LAND AND NATURAL RESOURCES

AT ITS MEETING HELD ON D-7

_^epHtY>ber II, 2015 ^»o,

BLNR - Consent to sublease

GL S-5805 Page 2 September 11, 2015

TRUST LAND STATUS:

Non-ceded; acquired after Statehood.DHHL 30% entitlement lands pursuant to the Hawaii State Constih.ition: No

LEASE CHARACTER OF USE:

Youth, education and multi-service community center to house human services and

community activities purposes.

SUBLEASE CHARACTER OF USE:

Native Hawaiian Hospitality Association:

To provide social programs for youth

United Self Help:To provide mental health services to the community.

Waikiki Beach Chaplaincy Inc.:

To provide religious services to the community

International Church of the Foursquare Gospel, dba Hope Chapel:

To provide religious services to the community

TERM OF LEASE:

30 years, commencing on April 1, 2007 and expiring on March 31, 2037. Next rentalreopening is scheduled for April 1,2017.

TERM OF SUBLEASE:

Native Hawaiian Hospitality Association:4/20/2015-4/20/2016

United Self Help:6/1/2015-5/31/2018

Waikiki Beach Chaplaincy Inc.:5/1/2013-5/31/2016

International Church of the Foursquare Gospel, dba Hope Chapel:6/1/2013-5/31/2017

BLNR - Consent to sublease

GL S-5805 Page 3 September 11, 2015

ANNUAL RENTAL:

$156.00

MONTHLY SUBLEASE RENTAL:

Native Hawaiian Hospitality Association:

$487.72

United Self Help:$313.73

Waikiki Beach Chaplaincy Inc.:$1,354.93

International Church of the Foursquare Gospel, dba Hope Chapel:$1,357.67

RECOMMENDED ADJUSTMENT TO LEASE RENTAL:

None, based upon a deficit net income amount ofahnost $15,000.00, as of May 2015.

CHAPTER 343 - ENVIRONMENTAL ASSESSMENT:

In accordance with Hawaii Administrative Rule Sections 11 -200-8(a)(l) and the ExemptionList for the Department of Land and Natural Resources approved by the Environmental

Council and dated June 5, 2015, the subject request is exempt from the preparation of anenvironmental assessment pursuant to Exemption Class No. 1, that states "Operations,

repairs or maintenance of existing structures, facilities, equipment, ortopographical features,involving negligible or no expansion or change of use beyond that previously existing". See"Exemption Notification" attached as EXHIBIT 2.

DCCA VERIFICATION:

SUBLESSOR:Place of business registration confirmed:Registered business name confirmed:

Good standing confirmed:

SUBLESSEE;Place of business registration confirmed:Registered business name confirmed:

Good standing confirmed:

YESYESYES.

YESYES.YES

x

JLx

x

JLx

NONONO

NONONO

BLNR - Consent to sublease

GL S-5805 Page 4 September 11, 2015

REMARKS:

Waikiki Community Center (WCC) requests the Board's consent to sublease General LeaseNo. S-5805 to the following entities, named as its sublessees: Native Hawaiian Hospitality

Association, United Self Help, Waikiki Beach Chaplaincy Inc., and International Church of

the Foursquare Gospel, dba Hope Chapel.

Since 1982, Waikiki Community Center (WCC) has been the lessee for the subject property

located upon State land, for community service purposes. In the year 2007, the Boardauthorized the issuance of a new 30-year lease to WCC for the pmposes cited above, underthe subject General Lease No. S-5805.

Based on WCC's most current revenue and expense report as of May 2015, staff noted a

deficit net income amount of almost $15,000.00, notwithstanding that the current rent levelfor the sublessees had been reflected in the report. As such, staff does not believe that anyadjustment in the rental of the master lease [i.e. sandwich rent] is applicable in the current

situation. A copy of the subject report has been filed.

The sublease between WCC and United Self Help had expired on February 28, 2013. Acurrent sublease has been executed to replace the expired sublease, commencing on June 1,

2015 and will expire on May 31, 2018. As such, the Board's after-the-fact consent is

required to account for the elapsed time period that had occurred from: March 1, 2013 toMay 31,2015.

Based upon a recent site inspection, the subject property was observed to be in satisfactorycondition. WCC is currently in compliance with the terms and conditions of the subject

master lease. The subject property will continue to serve community service purposes, and

would involve negligible or no expansion or change in use of the subject area beyond that

previously existing.

There are no issues regarding any rental reopening, as the next reopening will not occur until

the year 2017. Staff did not solicit comments on the subject request as it is for housekeeping

purposes only. Staff has no objection to the request.

Staff now brings this request to the Board for its approval.

RECOMMENDATION: That the Board

1. Declare that, after considering the potential effects of the proposed disposition asprovided by Chapter 343, HRS/Hawaii Administrative Rule Sections 1 l-200-8(a)(l)and the Exemption List for the Department of Land and Natural Resources approvedby the Environmental Council and dated June 5,2015, this project will probably have

minimal or no significant effect on the environment and is therefore exempt from thepreparation of an environmental assessment.

BLNR - Consent to sublease

GL S-5805 Page 5 September 11, 2015

2. Consent to the sublease of General Lease No. S-5805 between Waikiki CommunityCenter, named as Sublessor, to: Native Hawaiian Hospitality Association, UnitedSelf Help, Waikiki Beach Chaplaincy Inc. and International Church of the Foursquare

Gospel, dba Hope Chapel, named as its sublessees, subject to any applicableconditions cited above which are by this reference incorporated herein and furthersubject to the following terms and conditions:

A. The standard terms and conditions of the most current consent to sublease

form, as may be amended from time to time;

B. Review and approval by the Department of the Attorney General; and

C. Such other terms and conditions as may be prescribed by the Chairperson tobest serve the interests of the State.

Respectfully Submitted,

^v.Timrriy CheeLand Agent

APPROVED FOR SUBMITTAL:

^^ L^-^Li^ ^Suzanne^D.Case, Chairperson

BLNR - Consent to sublease

GL S-5805 Page 6 September 11, 2015

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EXHIBIT 1

BLNR - Consent to sublease

GL S-5805 Page 7 September 11, 2015

EXEMPTION NOTIFICATIONRegarding the preparation of an environmental assessment pursuant to Chapter 343, HRS andChapter 11-200, HAR

Project Title:

Project / Reference No.

Project Location:

Project Description:

Chap. 343 Trigger(s):

Exemption Class No.:

Consulted Parties:

Recommendation:

Consent to Sublease General Lease S-5805 to: Native Hawaiian

Hospitality Association, United Self Help, Waikiki Beach ChaplaincyInc. and International Church of the Foursquare Gospel, dba Hope

Chapel.

GL S-5805

Honolulu, Oahu, TMK (1) 2-6-025:008

Request Consent to Sublease General Lease S-5805

Use of State Land

In accordance with Hawaii Administrative Rule Section 11-200-

8(a)(l), and the Exemption List for the Department of Land andNatural Resources approved by the Environmental Council and dated

June 5,2015, the subject request is exempt from the preparation of anenvironmental assessment pursuant to Exemption Class No. 1, that

states "Operations, repairs or maintenance of existing structures,

facilities, equipment, or topographical features, involving negligibleor no expansion or change of use beyond that previously existing".

The subject request extends the existing use of the subject premises toserve community services purposes. As such, staff believes that the

proposed use would involve negligible or no expansion or change inuse of the subject area beyond that previously existing.

Not applicable.

It is recommended that the Board find this project will probably have

minimal or no significant effect on the environment and is presumedto be exempt from the preparation of an environmental assessment.

C/.-'vV ( L ••

Suzanne D. (Sase, Chahperson

^ /!'/

Date

EXHIBIT 2