Federal Register #D12082

Exemption for Property Sale from Hawai'i Pacific Health Retirement Plan to Straub Clinic & Hospital in Honolulu, Hawaii

This opportunity involves a Department of Labor exemption for a property sale between the Hawai'i Pacific Health Retirement Plan and Straub Clinic & Hospital in Honolulu, Hawaii. - Government Buyer: - U.S. Department of Labor, Employee Benefits Security Administration, Office of Exemption Determinations - Transaction Details: - Sale of real property at 888 South King Street, Honolulu, HI - Buyer: Straub Clinic & Hospital (subsidiary of Hawai'i Pacific Health) - Sale price: Greater of $16,247,000 or 110% of appraised value determined by a Qualified Independent Appraiser - Oversight & Services: - Central Pacific Bank acts as Qualified Independent Fiduciary to monitor, review, negotiate, and approve the sale - Lesher Chee Stadlbauer or another approved appraiser determines fair market value - Notable Requirements: - Repayment of prior property expenses by Straub or Hawai'i Pacific Health - Maintenance of records for six years for audit purposes - Strict adherence to fiduciary and appraisal requirements under ERISA - Additional OSHA Variance: - NASA Neutral Buoyancy Laboratory Operations Contract granted a permanent variance from commercial diving decompression chamber requirements - No OEMs or traditional vendors involved; this is a property and fiduciary services transaction

Description

This exemption permits the Hawai'i Pacific Health Retirement Plan to sell property to Straub Clinic & Hospital for the greater of $16,247,000 or 110% of the appraised value of the property as of the date of sale. The sale would otherwise violate certain prohibited transaction restrictions under ERISA and the Internal Revenue Code. The Department of Labor reviewed the application and determined the sale is in the best interest of the plan and its participants. The exemption includes conditions to protect the plan, including repayment of certain property expenses and maintenance of records for audit.

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