HomeMy WebLinkAboutResolution No. 2022-38COUNTY COUNCIL
COUNTY OF KAUA'I
3ResolutionNo. 2022-38
RESOLUTION AUTHORIZING THE TRANSFER OF THE REAL PROPERTY
IDENTIFIED AS TAX MAP KEY (TMK) NO. (4) 3-8-018-012 TO
GROVE FARM COMPANY, INCORPORATED FOR THE PURPOSE OF
OPERATING AN ADOLESCENT TREATMENT AND HEALING CENTER
WHEREAS, in August 2015 Grove Farm Company, Incorporated ("Grove
Farm") and the County of Kaua'i ("County") entered into a Memorandum of
Understanding pursuant to which Grove Farm agreed to donate roughly 5.825 acres
of land, identified as Tax Map Key (TMK) No. (4) 3-8-018-012 ("Property"), for the
construction of an Adolescent Treatment and Healing Center ("ATHC") to provide
services to at-risk youth within the County; and
WHEREAS, in 2017 the County subdivided the land to create the lot upon
which the ATHC would be constructed, and on February 23, 2017, Grove Farm
executed and delivered to the County a Dedication Deed which provided that the
Property would be utilized solely for use for adolescent and adult health care purposes,
subject to a right of reversion, which provided that if the Property was not used for
adolescent and adult health care purposes for a period of two (2) years, the Property
would revert to Grove Farm; and
WHEREAS, the County then set aside funding, secured $5,000,000.00 from the
State of Hawai'i in capital improvement funds, and received several private donations
for the construction of the facility; and
WHEREAS, the County completed an environmental assessment, obtained the
necessary zoning permits to construct the facility, completed the procurement for the
construction work, received the necessary building permits, and began construction in
January 2018; and
WHEREAS, construction of the ATHC was substantially completed in
August 2019 and the Certificate of Occupancy was issued on November 6, 2019; and
WHEREAS, during the construction in early 2019 the County issued a request
for proposals, in accordance with state procurement laws, to operate the facility and
received no offers; and
WHEREAS, the County issued a second request for proposals in 2019 and
received and accepted the only proposal; and
WHEREAS, the County executed the contract to operate the ATHC on
October 31, 2019; and
WHEREAS, beginning on March 14, 2020, at the outset of the global COVID-19
pandemic the facility was requisitioned to operate as a COVID-19 isolation center; and
1
WHEREAS, the contract with the vendor to operate ATHC was terminated for
convenience as it quickly became apparent that the center was a critical tool in
mitigating the spread of COVID-19 as the County encountered a stream of COVID-19
positive individuals that required isolation and that the center would be needed as an
isolation site for longer than the duration of the contract; and
WHEREAS, due to the County's pivot from the intended purpose of the ATHC,
Grove Farm convened a group of governmental leaders, educators, the Hawai'i Health
Systems Corporation ("HHSC"), and other community members, to formulate a new
comprehensive plan to fulfill the goal of providing an adolescent treatment facility
with residential services; and
WHEREAS, these members formed a non-profit corporation, Kaua'i Adolsecnt
Treatment Center for Healing ("KATCH") and sent a letter to
Mayor Derek S.K. Kawakami urging the County to expeditiously revert the land and
improvements back to Grove Farm; and
WHEREAS, the County elected to transfer the property directly to HHSC; and
WHEREAS, the Kaua'i Region of HHSC conducted due diligence which
included an updated environmental assessment and applied for permits to operate the
facility; and
WHEREAS, the Kaua'i Region of HHSC and the County agreed to the terms of
a warranty deed in September 2021, however, the Kaua'i Region of HHSC then
elected to not sign the deed, after it was executed by the County, due to outstanding
concerns; and
WHEREAS, the Kaua'i Region of HHSC expressed an interest in resolving the
outstanding issues and expressed a commitment to taking and operating the facility;
and
WHEREAS, the Kaua'i Region of HHSC committed to signing the deed in
June 2022 but informed the County on June 29, 2022 that it would no longer move
forward with the conveyance; and
WHEREAS, the Kaua'i Region of HHSC then expressed an interest in leasing
the premises to operate an Adolescent Treatment Center but later retracted that
interest; and
WHEREAS, Grove Farm donated the land subject to a right of reversion, and
Grove Farm asserts in Grove Farm Company, Incorporated v. County of Kaua'i,
Case No. 5CCV-22-0000057, that the property has reverted as a matter of law; and
WHEREAS, the County disputes that the property has reverted, however,
Grove Farm and the County acknowledge that the land dispute is a major impediment
to future operation; and
WHEREAS, Grove Farm and the County recognize the dire need to open the
center immediately to help treat those suffering from drug addiction; and
WHEREAS, there is generally a wait list for similar facilities on O'ahu and
many Kaua'i families cannot afford the cost of these programs; and
2
WHEREAS, substance abuse has a disproportionate impact on adolescents and
opening the ATHC is critical for successful intervention; and
WHEREAS, Grove Farm expressed an interest in leading the effort for a team
of partners to develop a viable operational plan, and to pursue various sources of
financial support in order to have a sustainable facility; and
WHEREAS, Grove Farm has committed to utilizing the property to benefit the
public by operating an adolescent treatment center and has agreed to a Deed
restriction that would limit the use of the property to adult and adolescent health care
purposes. A copy of the Deed is attached to this Resolution as Exhibit A.
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA'I:
SECTION 1. That the operation of an adolescent and adult treatment
center will benefit the residents of the County of Kaua'i and the transfer of ownership
to Grove Farm Company, Incorporated is in the public interest; and
SECTION 2. The Mayor or the Director of Finance, and other appropriate
officials of the County are hereby authorized to take such other actions as may be
necessary or appropriate in connection with the transfer of title; and
SECTION 3. This Resolution shall take effect immediately upon its
adoption by the Council.
BERNARD P. CARVALHO, JR.
Gl~~q~
KIPUKAI KUALI'I
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3
EXHIBIT A
AFTER RECORDATION, RETURN BY MAIL ( ) PICKUP ( )
TYPE OF DOCUMENT:
WARRANTY DEED
(LOT 1-A-5-A)
PARTIES TO DOCUMENT:
Granter:
Grantee:
COUNTY OF KAUAI
4444 Rice Street, Suite 275
Lihue, Hawaii 96766
GROVE FARM COMPANY, INCORPORATED
3-1850 Kaumualii Highway
Lihue, Hawaii 96766-7069
PROPERTY DESCRIPTION: LI BER/PAGE:
See Exhibit "A"
TMK No.: (4) 3-8-018:012
DOCUMENT NO.:
TRANSFER CERTIFICATE OF
TITLE NO(S).
WARRANTY DEED
(LOT 1-A-5-A)
KNOW ALL MEN BY THESE PRESENTS THAT:
The COUNTY OF KAUAI, a political subdivision of the State of Hawaii, the principal place
of business and address of which is 4444 Rice Street, Suite 275, Lihue, Kauai, Hawaii 96766,
hereinafter called the "Grantor," for good and valuable consideration to the Grantor provided by
GROVE FARM COMPANY, INCORPORATED, a Hawaii corporation, the mailing address of which
is 3-1850 Kaumualii Highway, Lihue, Kauai, Hawaii 96766-7069 hereinafter called the "Grantee,"
the receipt of which is acknowledged, does hereby grant and convey unto the Grantee the real
property described in Exhibit "A" attached hereto and incorporated herein by reference;
TOGETHER WITH, except as herein provided, the reversions, remainders, rents, issues,
and profits thereof, and all of the estate, right, title, and interest of the Grantor, both at law and in
equity, therein and thereto.
TO HAVE AND TO HOLD the same, together with the improvements thereon, and all rights,
easements, privileges, and appurtenances thereunto belonging or appertaining, unto the Grantee,
in fee simple, solely for use for adult and adolescent health care purposes.
The Grantor hereby covenants with the Grantee that the Grantor is lawfully seised in fee
simple of the premises described herein and has good right to sell and convey the same; that the
same are free and clear of all encumbrances except as set forth herein and in Exhibit "A"; and that
the Grantor will WARRANT AND DEFEND the same unto the Grantee against the lawful claims
and demands of all persons, except as aforesaid.
The Grantee, in consideration of the foregoing, hereby accepts the conveyance of real
property described herein.
The Grantee acknowledges and agrees that the premises may be affected periodically by
the adverse environmental conditions more particularly described in Exhibit "A" attached hereto,
accepts the possibility of the occurrence of the same, and holds harmless the Grantor and its
lessees, tenants, licensees, and occupants from any responsibility for the elimination or abatement
of said adverse environmental conditions. The covenants of the Grantee herein contained and the
encumbrances set forth in Exhibit "A" shall run with the land and be binding upon the Grantee, its
licensees and invitees, and all persons who shall hereafter have an interest in the land hereby
conveyed.
This conveyance and the respective covenants of the Grantor and the Grantee shall be
jointly and severally binding upon the person or persons identified above as "Grantor" and
"Grantee," if entered into by more than one person, and shall run in favor of, inure to the benefit
of, and be binding upon the person or persons identified above as Grantor and Grantee, and their
respective estates, heirs, executors, administrators, personal representatives, successors, and
assigns. The use herein of the singular in reference to a party shall include the plural and the use
of a pronoun of any gender shall include all genders. The term "person" shall include an individual,
partnership, association, or corporation, as the context may require.
IN WITNESS WHEREOF, the Grantor and the Grantee have caused these presents to be
duly executed this ___ day of _________ 20
APPROVED AS TO FORM AND LEGALITY
County Attorney, County of Kauai
COUNTY OF KAUAI,
a political subdivision of the State of Hawaii,
By: _______________ _
Derek S. K. Kawakami
Mayor, County of Kauai
APPROVED:
By: _______________ _
Jade K. Fountain-Tanigawa
County Clerk, County of Kauai
"Granter"
GROVE FARM COMPANY, INCORPORATED,
a Hawaii corporation,
By: ----------------Name: --------------1 ts: ---------------
By: _______________ _
Name: --------------1 ts: ---------------
"Grantee"
STATE OF HAWAII )
) SS.
COUNTY OF KAUAI )
On this ___ day of ____________ , 20 __ , before me appeared
_________ and __________ , to me personally known, who, being
by me duly sworn, did say that they are the Mayor and County Clerk, respectively, of the County
of Kauai and that said instrument was signed and sealed in behalf of said County of Kauai by
authority of its Charter; and acknowledged said instrument to be the free act and deed of said
COUNTY OF KAUAI.
Date
Doc:
Name
Notary:
of
Doc.
Description:
of
Notary Signature
Notary Public, State of Hawaii
Type or print name: _________ _
My commission expires: ________ _
Date
Fifth Circuit, State of Hawaii
#
Pages:
Notes:
(stamp or seal)
NOTARY CERTIFICATION
STATE OF HAWAII )
) SS.
CITY AND COUNTY OF HONOLULU )
On this __ day of ____________ , 20 __ , before me appeared
__________ to me personally known, who, being by me duly sworn, did say that
he is the _____________ , respectively, of GROVE FARM COMPANY,
IN CORPORA TED, a Hawaii corporation, that the seal affixed to the foregoing instrument is the
corporate seal of said corporation and that said instrument was signed and sealed in behalf of
said corporation by authority of its Board of Directors, and said Officers acknowledged said
instrument to be the free act and deed of said corporation.
Notary Public, State of Hawaii
Type or print name: _________ _
My commission expires: _______ _
Date of #
Doc: Pages:
Name of
Notes:
Notary:
Doc.
Description:
(stamp or seal)
Notary Signature Date
First Circuit, State of Hawaii
NOTARY CERTIFICATION
STATE OF HAWAII )
) ss.
COUNTY OF KAUAI )
On this ___ day of ____________ , 20 __ , before me appeared
____________ to me personally known, who, being by me duly sworn, did say
that he is the _____________ , respectively, of GROVE FARM COMPANY,
IN CORPORA TED, a Hawaii corporation, that the seal affixed to the foregoing instrument is the
corporate seal of said corporation and that said instrument was signed and sealed in behalf of
said corporation by authority of its Board of Directors, and said Officers acknowledged said
instrument to be the free act and deed of said corporation.
Date
Doc:
Name
Notary:
Doc.
of
Description:
of
Notary Signature
Notary Public, State of Hawaii
Type or print name: _________ _
My commission expires: _______ _
Date
Fifth Circuit, State of Hawaii
#
Pages:
Notes:
(stamp or seal)
NOTARY CERTIFICATION
EXHIBIT "A"
LOT 1-A-5-A
LAND SITUATED AT HANAMAULU, LIHUE, KAUAI, HAWAII,
Being a Portion of RP. 4481, L. C. Aw. 7713, Apana 2, Part 7 to V. Kamamalu,Being also
a Portion of Grant 188, Apana 1 to William L. Lee
Beginning at the southeast corner of this parcel of land, on the North side of Maalo Road,
the coordinates od said point of beginning referred to Government Survey Triangulation Station
"KALEPA" being 548.08 feet South and 4,869.18 feet West thence running by azimuths measured
clockwise from true South:
1. 73° 44' 80.16 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road);
thence along remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road) on a curve to the right
with a radius of 190.00 feet, the chord azimuth and
distance being:
2. 94° 55' 30" 137.37 feet;
3. 116° 07' 53.24 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road);
Thence along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road) on a curve to the right
with a radius of 420.00 feet the, chord azimuth and
distance being;
4. 131° 40' 30" 225.30 feet;
5. 147° 14' 147.07 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7(Maalo Road);
thence along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road) on a curve to the right
with a radius of 420.00 feet, the chord azimuth and
distance being:
6. 158° 30' 30" 164.24 feet;
7. 169° 47' 84.15 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road);
thence along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Maalo Road) on a curve to the left
with a radius of 430.00 feet, the chord azimuth and
distance being:
8. 168° 01' 30" 29.39 feet;
thence along the remainder of RP. 448, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-B) on a curve to the right
with a radius of 20.00 feet, the chord azimuth and
distance being:
9. 208° 04' 30" 26.67 feet;
10. 249° 53' 365.70 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-B);
11. 339° 53' 439.60 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-B);
12. 343° 44' 296.07 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-B) to the point of beginning
and containing an area of 5.825 acres.
TOGETHER WITH Easement ATHC-1 for Access and utility purposes, further described as
follows:
EASEMENT ATHC-1 LAND SITUATED AT HANAMAULU, LIHUE, KAUAI, HAWAII,
Being a Portion of LOT 1-A-5-B, Being also Portion of RP. 4481, L. C. Aw. 7713, Apana 2, Part
7 to V. Kamamalu,Being also a Portion of Grant 188, Apana 1 to William L. Lee
Beginning at the southeast corner of this parcel of land, the coordinates of said point of
beginning referred to Government Survey Triangulation Station "KALEPA" being 148.94 feet
South and 5,103.30 feet West, thence running by azimuths measured clockwise from true
South:
1.
2.
3.
4.
69° 53'
208° 04' 30"
161°35'18"
156° 54' 36"
365.70 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-A);
thence along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-A) on a curve to the left
with a radius of 20.00 feet, the chord azimuth and
distance being:
26.67 feet; thence along the remainder of RP. 4481, L.
C. Aw. 7713:2, Part 7(Maalo Road) on a curve to
the left with a radius of 430.00 feet, the chord
azimuth and distance being:
70.14 feet;
26.66 feet along the remainder of RP. 4481, L. C. Aw.
7713:2, Part 7(Maalo Road);
5.
6.
7.
293° 23' 48"
249° 53'
339° 53'
thence along the remainder of R.P. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-A) on a curve to the left
with a radius of 20.00 feet, the chord azimuth and
distance being:
27.54 feet;
364.90 feet along the remainder of R.P. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-A);
60.00 feet along the remainder of R.P. 4481, L. C. Aw.
7713:2, Part 7 (Lot 1-A-5-A) to the point of
beginning and containing an area of 0.531 acre.
Being the premises acquired by:
INSTRUMENT:
GRANTOR:
GRANTEE:
DATE:
RECORDED:
Dedication Deed
Grove Farm Company, Incorporated
County of Kauai
February 23,2017
Document No. A-63410542
SUBJECT, HOWEVER, to the following:
1. All encumbrances, easements, and restrictions of record.
2. Reservation in favor of Granter, GROVE FARM COMPANY, INCORPORATED, GROVE
FARM LAND CORP., and their respective successors and assigns (collectively and
individually, the "Benefitted Parties"), of an easement for the right of passage of surface
water and drainage on and over the premises, subject to a County-approved drainage
plan, which easement and right are herein specifically reserved in favor of Granter, its
successors and assigns, together with the right to enter onto the premises to construct,
reconstruct, install, operate, maintain, repair and replace the improvements thereon
located or required, as Granter (and/or its successors and assigns) deems appropriate or
advisable or as may be necessary for aforesaid purposes, together with the right to license
or grant on a non-exclusive or exclusive basis said easements and rights to whomsoever
Granter (and/or its successors and assigns) determines appropriate, these reserved rights
to be exercised in a manner that will cause the least practicable interference with the use
and occupancy of the premises by Grantee, its successors and assigns. This reservation
benefits and such easements are appurtenant to all of those lands of the Benefitted
Parties.
3. Reservation of an easement by the Benefitted Parties for various environmental conditions,
hazards and risks, which may result in the premises being periodically affected by various
nuisances and hazards and by noise, dust, smoke, soot, ash, odor or adverse
environmental conditions of any kind (including but not limited to those attributable to
winddrift and other weather factors) created by surrounding prospective, existing, and
historical, agricultural, industrial, golf course and other non-residential uses and activities,
which include specifically, but are not limited to: (1) diversified agriculture, burning,
harvesting and tending, fertilization and weed and pest control; construction, development,
grading, improvement, sales and maintenance of adjacent and surrounding properties,
including residential and non-residential property and roadways; irrigation of any and all
the surrounding lands; common areas and golf course with treated effluent, reclaimed
water or other sources of non-potable water; the use of an adjacent area as a County landfill
known as Halehaka, and the closure and post-closure monitoring of the landfill, as well as
activities associated with such closure; the husbandry of livestock, including but not limited
to swine; This reservation benefits and such easements are appurtenant to all of those
lands of the Benefitted Parties.
END OF EXHIBIT A