Kauaʻi Island Utility Cooperative is seeking approval from the Hawaiʻi Public Utilities Commission to purchase the Līhuʻe property that has served as its headquarters for more than two decades.
The cooperative is proposing to buy the Hāna Kukui property on Paheʻe Street for $11.8 million. The purchase is expected to result in significant long-term savings compared with continuing to lease the site, the cooperative said.
“After evaluating all available options, we determined that purchasing Hāna Kukui is the best financial decision for the cooperative and our members,” KIUC President and CEO David Bissell said.
As part of its evaluation, the cooperative considered extending its existing lease, moving its headquarters to another location and constructing a new headquarters.
The cooperative said its analysis included the limited availability of office space and parking that could accommodate its needs, along with the costs and time involved in relocating or building a new facility.
The cooperative also considered the disruption a headquarters move would cause to its operations. Purchasing the existing property would allow the cooperative to maintain its current headquarters while avoiding future rent increases and the costs associated with relocating, Bissell said.
“After considering these options, purchasing the existing property allows us to secure the long-term use of our headquarters while avoiding future rent increases and relocation costs, and will provide the greatest long-term value to Kauaʻi Island Utility Cooperative and its membership,” he said.
If the Hawaiʻi Public Utilities Commission approves the transaction, the cooperative would acquire the Hāna Kukui Center improvements and the underlying land in fee simple, giving the cooperative full ownership of the property.
The $11.8 million purchase would be financed through proceeds from Kauaʻi Island Utility Cooperative’s existing loan with the U.S. Department of Agriculture’s Rural Utilities Service.
The proposed purchase remains subject to the Hawaiʻi Public Utilities Commission’s approval and completion of the transaction.
