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Hawaiʻi Community Development Authority extends Zimmer lease at 610 Ward Avenue, declines broker commission
Summary
The Hawaiʻi Community Development Authority voted 8-0 on March 5 to extend a lease with Zimmer US Inc. at 610 Ward Avenue through June 30, 2026, approve a 3% rent increase and retain a termination clause shortened to 90 days; the board declined staff to pay a broker commission requested by the lessee.
The Hawaiʻi Community Development Authority on March 5 authorized the executive director to amend a lease with Zimmer US, Incorporated for retail space at 610 Ward Avenue in Honolulu, extending the term one year to June 30, 2026, and approving a 3% rent increase.
The lease amendment retains a special termination provision to allow HCDA to end the lease when the parcel is ready for development; staff proposed shortening the current six-month notice to 90 days to preserve development flexibility. "This is a fairly straightforward request," said Lindsey Doy, CASET manager, adding the 3% increase was "standard" and that Zimmer is amenable to it.
The board discussed a separate request from the lessee's broker, Colliers, for a brokerage commission equal to two months' gross rent (noted in the staff report as roughly $11,000). Staff did not recommend paying the commission. Member Evans said the broker's communications with HCDA did not rise to a level that would justify paying the fee and supported staff's recommendation not to pay. Chair Sterling Higa concurred: "If Colliers wants to collect it, they are more than welcome to collect it from their client, Zimmer."
No members spoke in favor of paying the requested broker fee. After the discussion, Member Evans moved to authorize the executive director to execute the lease amendment; Vice Chair Ishii seconded. The board approved the motion by roll-call vote, 8 in favor, 1 excused.
During public testimony on the item, a representative of Kala Foundation said the group had been emailing staff about notification for an upcoming King Kamehameha celebration and parade scheduled for June 14. Executive staff asked the testifier to provide an email address in the Zoom chat so staff could follow up by email.
The lease covers a portion of the Block P-3 parcel (the site behind the Jack in the Box on Ward Avenue) acquired by HCDA; staff said the extension would keep the parcel activated and generating revenue while development plans continue to be evaluated. The staff report noted the brokerage request but made no recommendation to fund it from HCDA resources.
Vote at a glance: Motion to authorize the executive director to amend the lease dated March 4, 2022, with Zimmer US, Inc., extending the lease term to June 30, 2026, increasing rent by 3% and taking necessary steps to effectuate the amendment — Passed, 8-0 (1 excused).
