Kapolei Civic Center

Another of Kobayashi Group’s (KG) projects is the 216,000 square foot, six-story Kapolei Civic Center office building that houses 1,000 State employees from several different departments. This was a design-build project where KG worked extensively with the various State departments to design their respective spaces. The building was completed and turned over to the State 3 months ahead of schedule. This development included a creative financing plan that allowed the State to lease the building for 30 years, with the acquisition of the building by the lessor financed through Certificates of Participation (COP), or purchase the building from KG or the lessor using General Obligation Bonds at any point prior to completion of the project, or during the term of the COP lease. It was the first project in the State specifically structured to allow for this form of take-out financing. The COP financing involved a 30-year lease of the building to the State with a fixed rent schedule for the 30-year term, after which the building would be assigned to the State at no additional cost. The State opted to purchase the building shortly after completion.