Council postpones lease of former Safeway store

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Hawaii County is keeping its options open as it looks for new office space in Hilo.

Hawaii County is keeping its options open as it looks for new office space in Hilo.

In addition to negotiating a lease for the former Safeway space at Prince Kuhio Plaza, the county also is seeing if it’s feasible to buy a building at 1055 Kinoole St., where the Office of Aging rents space.

Finance Director Deanna Sako said the county wants to consolidate its locations throughout town.

“What we want to do is what’s most economical for the county,” she said, adding it’s possible the county could choose both options.

At Sako’s request, the County Council postponed a resolution authorizing the administration to lease the former Safeway store, which offers 39,500 square feet. She said she wanted to delay the action because cost estimates for retrofitting the site came in higher than expected.

County officials estimated moving the Office of Aging and Office of Housing and Community Development there would save $2.4 million during the 10.5-year lease.

Sako said she didn’t have an estimate for the size of the Kinoole Street building at hand, but noted the county currently leases less than 17,000 square feet on the lower level. That lease ends in June.

She said the county could make full use of both locations if it bought the Kinoole Street location and leased the former Safeway space.

Charles Ensey, who was representing the building’s owners, told the council that they are open to selling to the county. He noted the county was doing an appraisal, but he hadn’t seen the results.

Sako said the appraisal should be done in the next couple of weeks.

The property and building were last assessed at $3.6 million, according to the county’s tax records.

Email Tom Callis at tcallis@hawaiitribune-herald.com.