Visitor Industry Sets Records for Spending and Arrivals in 2013

According to a report released by the Hawaii Tourism Authority a total of 8.24 million visitors arrived in Hawaii in 2013 and spent a total of $14.5 billion while in the islands.  These numbers set new state records for spending and arrivals, but were still lower than the Hawaii Tourism Authority had hoped for.  While the first half of the year started off very strong, the second half slowed considerably. President and CEO of the Hawaii Tourism Authority, Mike McCartney, commented, "While we were pleased that we surpassed our 2012 record numbers, we fell short of our 2013 targets. Fluctuations in currency exchange rates, taxes and fuel surcharges have slowed bookings and hampered growth, causing a leveling off throughout the second half of 2013."  Daniel Nahoopii, the Director of Tourism Research for the HTA, added, "Besides cutting down on shopping, some visitors also have elected to cut their stay short, and that's snowballed into what we are seeing in terms of total spending."

Source: Honolulu Star Advertiser, 1-31-2014, www.staradvertiser.com
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Office of Hawaiian Affairs Seeking Approval to Build Condominiums in Kakaako Makai

The Office of Hawaiian Affairs is requesting approval from the Hawaii legislature to build high-rise condominium towers on their land in Kakaako Makai.  The OHA currently own a total of 25 acres of land between Kewalo Basin and Honolulu Harbor, on the Makai (ocean) side of Ala Moana Blvd.  This land, valued at $200 million by the state, was given to OHA by the state government two years ago as part of a settlement for ceded land revenue claims that date back to 1978.  However, OHA believes that the land will not achieve the $200 million value of land under existing zoning, unless residential zoning is allowed.

Eight years ago, when the land was owned by the state, the legislature passed a bill that prohibited residential development of Makai Kakaako.  At that time, local developer Alexander & Baldwin wanted to build three condominium towers there, but public protests quickly attacked the idea.  The difference now is that the land is owned by the Office of Hawaiian Affairs and they have a right to use the land to benefit Native Hawaiians and are not mandated by the state to serve in interests of the general public.  OHA has a total of 9 parcels of land in Kakaako Makai, out of which six of them have water frontages, making them premium lots for potential developers.

State Senator Clayton Hee, who supports the request by OHA, stated, "The highest revenue generation, as evidenced by what's going on in Kakaako, is condominiums. It would provide a tremendous revenue-generating income for Hawaiians."  Governor Neil Abercrombie's office released a statement stating, "The Governor stands alongside OHA to find approaches and solutions that will help OHA help its beneficiaries."  However, many members of the public disagree including Stuart Coleman with the Surfrider Foundation. Coleman commented, "I was part of the Save Kakaako Alliance that helped stop luxury condos and residential units from being built on this last bit of public oceanfront land in Honolulu. The Legislature did the right thing in passing a law to ban residential development in this area, and it seems senseless to go against your own rules and make exemptions now."

Source: Honolulu Star Advertiser, 1-30-2014, www.staradvertiser.com
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Hawaiian Airline Posts $17.1 Million Profit in Fourth Quarter of 2013

Hawaiian Holdings Inc, the parent company of Hawaiian Airlines announced that the airlines had a $17.1 million profit during the fourth quarter of 2013.  This meant that the company finished the year with a net income of $51.9 million.  President and Chief Executive Officer, Mark Dunkerley, stated, "During the first half of the year, there were a lot of extra seats in the U.S. mainland-to-Hawaii market. It turns out there were more seats than there was demand, and that hurt the financial results for all airlines participating in the market. What happened in the second half of the year is that those airlines that put extra seats in took some of those out, and that helped the finances of all the airlines in the market."

Dunkerley stated that Hawaiian Airlines will work on improving capacity numbers for their nine new international routes that they have established over the last three years.  Other then adding a new route to Beijing this April, 2014 will be a relatively slow growth year regarding overseas travel.  Hawaiian Airlines is also planning to start a new interisland operation called 'Ohana by Hawaiian.  This subsidiary of Hawaiian will fly to smaller airports like those found on Lanai and Molokai.  Getting 'Ohana off the ground and running will be one of the company's major goals for 2014.

Source: Honolulu Star Advertiser, 1-29-2014, www.staradvertiser.com
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Unemployment Rate at 4.5 Percent in December 2013

According to a report released by the state Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate was at 4.5 percent in December 2013. This was a slight increase from the 4.4 percent posted the month before.  However, the DLIR stated that the slight rise in unemployment was due to more workers entering the work force and looking for jobs, rather than people losing their jobs.  Leroy Laney, a professor of economics and finance at Hawaii Pacific University, commented, "If the job count is going up, that means the economy is doing better. Tourism has been doing well for some time, and construction is beginning to ramp up because of things like condominium development in Kakaako."

Honolulu County had the lowest unemployment rate at 3.8 percent.  Maui County had a 4.6 percent unemployment rate.  Kauai County had a 5.1 percent unemployment rate. Hawaii County had a 5.9 percent unemployment rate.  County data is not seasonally adjusted. Nationally, the unemployment rate was 6.7 percent in December 2013.

Source: Honolulu Star Advertiser, 1-28-2014, www.staradvertiser.com
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University of Hawaii Athletic Director Discusses Future of Program

Ben Jay, the University of Hawaii's athletic director has high hopes for all of his sports teams, and would love to see the school become one of the "Higher Resource Group", or a "have" in the widely divided haves/have nots in college athletics.  Jay, who is in his second year as athletic director, fully admits that UH Manoa is lacking in resources and facilities compared to the countries elite athletic programs, and is turning the community, businesses and to the state for funds.  Jay stated, "In football, we are not just recruiting against the Mountain West schools, we are competing against the West Coast schools, even for the top players in Hawaii," he said. "We need to update our facilities, renovate what we have in order to be competitive in the recruiting game.

One of his Jay's short term top projects is to create a dining room in the athletic complex for all student athletes. Jay mentioned, "I hosted our 4.0 (GPA) student-athletes at a dinner and, to a person, their big issue was no place to eat (in the athletic complex).  They spend a lot of time down there with practice, at the academic center, in the training room, and there is no place for them to swipe their meal card and get a nutritious meal. When the student workout center moves to the new Campus Center, I can see turning that space into the student-athlete dining room."

As for long term projects, Jay added, "We have to start talking about a new (football) facility. We're not going to solve the issue with Aloha Stadium. (Manager) Scott Chan does a helluva job when operating within the system that was created, but he has to make money off the swap meet and off our (football program) assets to make his budget at a state-run facility.  It's going to take a huge effort by all those who love University of Hawaii athletics, and I mean everyone, fans, businesses, the legislature and the university. We need everyone to pitch in if we do want to not just get to the next level but to stay competitive when we do."

Source: Honolulu Star Advertiser, 1-27-2014, www.staradvertiser.com
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Plan to Add 1,200 Acres of Solar Photovolatic Panels on Oahu

The Hawaiian Electric Company has presented a plan to create a huge array of solar photovoltaic panels on Oahu by partnering with several renewable energy developers. According to HECO, the plan calls for panels to cover 1,200 acres of land.  These panels would produce approximately 240 megawatts of electricity, which will provide enough power for approximately 60,000 household.  Officials at the Hawaiian Electric Company have not stated where the panels would be located or who the renewable energy developers would be, stating that they wanted the developers to have the time to do community outreach before the details of the project becomes known.  The plan notes that the Hawaiian Electric Company would purchase the power generated at an average cost of 15.8 cents per kilo-watt hour.  Currently, it costs HECO approximately 23 cents per kilowatt-hour to create electricity from burning fuel oil.

Source: Honolulu Star Advertiser, 1-26-2014, www.staradvertiser.com
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Howard Hughes Corp Ward Village Update

The Howard Hughes Corp. is spending a total of $24 million to renovate the historic IBM building on Ala Moana Boulevard in Kakaako to be their sales office and information center for their massive redevelopment of the Ward area.  The Ward Village project includes the building of 22 high rise condominiums on their 60 acre property, as well as the doubling of the existing retail and dining space in the neighborhood.

The first two condominium towers to be built, Anaha and Waiea, have already begun selling units to investor clients, with owner occupant sales to the general public beginning shortly. Waiea will be located on the ocean side lot directly in front of the Ward movie theater.  One bedroom units there will start at $1.5 million. Anaha is located on above the old Pier One store's location, kitty corner from Waiea.  Studio units here will start in the $400,000s.  Race Randle, the director of development for Hughes Corp. stated, "(Investor) sales are exceeding expectations."

Source: Honolulu Star Advertiser, 1-25-2014, www.staradvertiser.com
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Proposed Bill Would Limit the Power of the Hawaii Community Development Authority

The Hawaii Community Development Authority is a state agency responsible for the redevelopment of Kakaako.  When the authority was created in 1976, their mission was to help to revitalize Honolulu's urban core with mixed used developments.  However, some citizens are concerned that the HDCA is catering to heavily towards developers and are concerned about increased traffic, the blocking of view channels, and the expense of infrastructure that would be created by high rise condominiums that are being proposed for Kakaako.  Other citizens argue that the luxury condominium units are targeting mainland and foreign buyers and that the "affordable" buildings are still much too expensive for the majority of Hawaii residents.  As a result, Scott Saiki, the State House Majority Leader, is proposing a series of bills that would limit the power of the Hawaii Community Development Authority and would establish legislative oversight on their actions. One of the bills would impose a one-year moratorium on the approval of any plan in Kakaako, which would slow down the building process considerably.

Source: Honolulu Star Advertiser, 1-25-2014, www.staradvertiser.com
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Electrical Rates on Oahu Increased in January 2014

Oahu residents will see an increase in their electric bills in January 2014 as the Hawaiian Electric Company increases rates to 34.9 cents per kilowatt-hours.   According to the Hawaiian Electric Company, part of the reason why the electrical cost increased was due to the fact that some of the more efficient generators were shut down due for maintenance reasons.  HECO company spokesman, Peter Rosegg, stated, "Maintenance is part of the operation of any piece of machinery, and a generator and its auxiliary equipment are a complex system. We schedule regular maintenance to have as little impact as possible on customer bills. But inevitably there are times when highly efficient generators need work."

Maui residents will pay 35.7 cents per kilowatt-hour.  Hawaii (Big Island of Hawaii) residents will pay 39.5 cents per kilowatt-hour.  Kauai residents will pay 42.3 cents per kilowatt hour.

Source: Honolulu Star Advertiser, 1-24-2014, www.staradvertiser.com
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Update on Ka Makana Ali'i Shopping in Kapolei

DeBartolo Development LLC held a blessing ceremony at the site of the planned Ka Makana Ali'i shopping mall in Kapolei despite not having signed an official lease agreement with the state Department of Hawaiian Home Lands, which owns the 67 acre site.  The DHHL has provided a contract with DeBartolo to pay them $600 million in base rent over 65 years and a percentage of the rent that the mall would receive from their tenants, which would amount to approximately another $400 million. DeBartolo hopes to work out the final details of the lease shortly, as they have stated that they would like to begin construction of the 1.4 million sq ft mall by the end of this year.

Source: Honolulu Star Advertiser, 1-24-2014, www.staradvertiser.com
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Massive Waves on Oahu's Shores Fortunately Causes No Deaths or Damage

Honolulu's Department of Emergency Management was pleased to report no major damage to property and no loss of life was caused by massive waves that hit Oahu's North Shore and Leeward Coast line.  The waves, some with faces reaching 50 feet in height, were still challenged by expert and professional surfers, but city and state officials warn that theses waves are extremely dangerous for even the best athletes.  Lifeguards made two rescues on the North Shore and twelve rescues on the Leeward Coast.  On the island of Kauai, an elderly man sitting on the beach watching the surf was swept away by an especially large wave.  An off duty lifeguard managed to save him before he got swept out into the ocean.  The elderly man suffered from cuts and abrasions and was treated at a Kauai hospital.

While waves are expected to decrease to 20 and 25 feet in height over the next few days, lifeguards warn that these "smaller" waves can be extremely dangerous.

Source: Honolulu Star Advertiser, 1-24-2014, www.staradvertiser.com
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Waikiki Trade Center Office Building Purchased, May Become Hotel

Coastwood Capital Group LLC has announced that they have purchased the leasehold interest in Waikiki Trade Center.  While it is unclear, what the company plans for the office building, recent speculation is that Coastwood will transform the property into a hotel as the management company has been instructed not to lease out any of the vacant units. Cordell Lietz, president of Coastwood Capital Group, stated, "The acquisition of Waikiki Trade Center is an exciting opportunity for Coastwood Capital Group LLC to continue to play a role in the renaissance of Waikiki. We are currently refining our business plan for the asset as we strive to find the highest and best use for the property and the market, as we do with all of our investments. In the meantime, there are no immediate changes planned for the property."

The Waikiki Trade Center is located on the corner of Seaside and Kuhio Avenue.  The 22 story building has approximately 205,390 sq ft of rental space.  Currently, the building is only about 50 percent occupied. Stephany Sofos, a real estate analyst specializing in Wakiki, commented, "More people are working from virtual offices. Here, in Waikiki, it makes sense to do a hotel conversion because market conditions have shown accommodations are needed." 

President and CEO of Hospitality Advisors LLC, Joseph Toy, added, "Because it is very expensive to build from the ground up, it's more cost effective to acquire, renovate and reposition. This is a good-sized property in Waikiki and it's on the right side of Kuhio, the ocean side, which is where a hotelier would want to be. If successfully renovated, it would re-energize that area."

Source: Honolulu Star Advertiser, 1-23-2014, www.staradvertiser.com
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State of Hawaii Has $844 Million Budget Surplus

During his annual State of the State address, Governor Neil Abercrombie announced that Hawaii has an $844 million budget surplus and is now on solid financial ground.  The governor outlined a wide range of projects and programs that he would like to have funded thanks to the surplus, including improving early childhood education and childhood health care, increasing minimum wage, reducing homelessness, improving the prison system and creating long term sustainability for the Hawaiian Islands.  State Senator David Ige, who is the chairman of the Senate Ways and Means Committee, cautioned that the surplus can not be spent wildly.  Ige stated, "We're concerned about the budget and making sure that it balances. We need to live within our means."

To read the State of the State in its entirety, please goto: governor.hawaii.gov/blog/2014-state-of-the-state-address/

Source: Honolulu Star Advertiser, 1-22-2014, www.staradvertiser.com
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Waiea's Grand Penthouse

Ward Village's new Waiea condominium, located on Ala Moana Blvd in Kakaako, will feature the largest grand penthouse to date in Hawaii.  The grand penthouse will be a total of 21,182 sq ft in size, including its 3,661 sq ft lanai, and will take up the top two floors of the building.  It will have a total of seven bedrooms, eight bathrooms, and two half-bathrooms as well as it's on infinity-edge pool.  Based upon its interior square footage, it is estimated that the monthly maintenance fee will be approximately $19,521 per month or $234,000 per year. While the actual price for this unit has not been disclosed to the public, many speculate that the unit will cost somewhere between $25 million to $40 million.

In comparison, a developer in Sunny Isles Beach, Florida is marketing a 16,000 sq ft penthouse at The Mansions at Acqualina for $55 million.  In Hong Kong, a buyer in 2012 purchased a 6,744 sq ft unit in the Opus Hong Kong building for $55 million.  In Manhattan, New York, two penthouses in the One57 building with 11,000 sq ft and 14,000 sq ft respectively, each reportedly went under contract for about $90 million each.

Source: Honolulu Star Advertiser, 1-22-2014, www.staradvertiser.com
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State and County Officials Shut Down Beaches Due to Huge Surf

Hawaii State and Honolulu County officials have shut down several beaches along the North Shore and Waianae coastline of Oahu due to huge surf.  Waves are expected to reach heights of 50 feet over the next few days. Shayne Enright, the spokeswoman for the city's Ocean Safety Division, stated, "We don't want anyone stuck in the parking lot if there's a surge. We're asking people not to risk their lives. That jeopardizes lifeguards' safety."

Director of Honolulu's Department of Emergency Services, Melvin Kaku added that this type of high surf is a once-in-10 years event.  Kaku stated, "What increases the hazard is the forecasted wave heights in combination with the long duration these swells will be impacting our shorelines. The long duration means that ocean waters will pile up in the surf zone, allowing the larger waves to impact farther into beach areas. This battering effect can cause increased shoreline erosion and damage to homes and infrastructure as well as blocking coastal highways with sand, debris and water."

Source: Honolulu Star Advertiser, 1-22-2014, www.staradvertiser.com
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Honolulu City Council Members Suggest Allowing Light Sparklers and Fountains During Holiday Celebrations

Currently under Honolulu law, the only type of firework allowed to be set off during personal holiday celebrations with a permit are firecrackers.  However, Honolulu City Council members Ikaika Anderson and Ann Kobayashi are introducing a bill that would allow sparklers and fountains to join the approved list.  Both items play a special role in various religious and cultural events, and many residents were unhappy to see them banned.  Kobayashi stated, "Constituents want this definition broadened. Some people think fountains and sparklers are less dangerous. The aerials are already illegal and they should stay illegal."  The Honolulu Fire Department has stated that they would like to review the new bill before commenting. Previously, Fire Captain Terry Seelig has stated that fire officials have supported all firework prohibitions.

Source: Honolulu Star Advertiser, 1-22-2014, www.staradvertiser.com
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Tourism Industry and State Have High Hopes for China Market

The Hawaii Tourism Authority has high hopes for the China market, especially now that Air China has begun their new non stop service between Beijing and Honolulu.  Air China will fly this route three times per week.  The HTA predicts that this new service will bring the islands an additional $80.4 million in visitor spending per year and an additional annual state tax revenue of $8.6 million.  Furthermore, Hawaiian Airlines has also announced that they will begin their own service between Beijing and Honolulu starting on April 16th and will also fly three times per week between the two cities.

According to the Hawaiian Tourism Authority, these two new routes by Air China and Hawaiian Airlines should help them reach their goal of a total of 182,078 Chinese visitors in 2014 spending approximately $441.7 million.  If this goal is achieved, this would represent a 21.5 percent increase in the number of visitors from China and an increase of 23.3 percent in visitor spending.  President and CEO of the Hawaii Tourism Authority, Mike McCartney, stated, "The success of our visitor industry has a direct correlation with the increased airlift, and we are committed to ensuring that we maintain a strong inventory of air seats to support our industry and our state's economy."

Air China's general manager of North America, Zhihang Chi, commented, "Demand for international travel is growing (in China).  With the very wise easing of visa restrictions, the U.S. is in a strong position to capture the wave of outbound travel.  Honolulu is the first new destination that Air China has launched in 2014, and it is timed very close to Chinese New Year to create a truly festive atmosphere."

Source: Honolulu Star Advertiser, 1-21-2014, www.staradvertiser.com
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Oceanfront North Shore Residents Concerned About Largest Ocean Swell in a Decade

The National Weather Service is predicting what could be the largest ocean swell in a decade hitting the North Shore of Oahu sometime over the next two days.  Matt Foster, a National Weather Service forecaster, note that waves could be as large as 25 to 30 feet in height (50 to 60 feet face) thanks to a calumniation of a storm 1,500 miles northwest of Hawaiian Islands and strong sustained winds on top of that.   While this is delightful news to professional big wave surfers and thousands tourists who are flocking to watch various surfing competitions, some North Shore residents who have oceanfront homes are concerned about the erosion that may occur because of the pounding waves.  Residents are doing their best placing sand bags and tarps along their property line, but truthfully it will be up to mother nature to see what damage, if any, would occur.

Source: Honolulu Star Advertiser, 1-21-2014, www.staradvertiser.com
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Air China Offers Nonstop Service from Beijing to Honolulu

Air China has just begun its new nonstop service from Beijing to Honolulu.  According to the airlines, the flight will be offered three days a week.  Currently, the only other carrier that offers nonstop service between China and Honolulu is China Eastern Airlines with its service from Shanghai to Honolulu.  Hawaiian Airlines has also announced that they will be starting a direct route to Beijing on April 16, 2014, which will also fly three times per week.

David Uchiyama, the vice present of brand management for the Hawaii Tourism Authority commented, "Being able to open up Beijing is another phase of developing China as a whole and in terms of an inbound market to Hawaii. These flights from Air China open up Beijing, and then following Air China's three flights a week, Hawaiian comes into the market in April, which will bring a nice balance of origination points between Shanghai and Beijing. It's a new entry for them into the market, so the responsibility is on us to cultivate demand out of Beijing and Shanghai, and all of China for that matter, so we can develop that market further."

Source: Honolulu Star Advertiser, 1-20-2014, www.staradvertiser.com
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Aggressive Panhandlers in Waikiki May Be Hurting Tourism

Over the last few years, Waikiki residents and the visitors have noticed an increase in the number of homeless and panhandlers asking for money.  Many feel that the panhandlers have become increasingly aggressive in the demands for money often heckling tourists as they walk by. Dennis Ihaksi and his wife Penny, who are Canadian visitors who have been visiting Waikiki since 1977, stated, "We'll probably take next year off. We'd like to come back, but we just don't feel safe anymore. And it's not just us that feel that way. We have friends that have been coming here for years and we all are having the same discussion. It's worse here than in Los Angeles or San Francisco. We've also been to Vietnam, China and Cambodia. In the tourist areas, we didn't see the massive group of people with hands out to the extent that it's happening here."

Several residents and Waikiki businesses are demanding that the Honolulu government change the laws on panhandling, vagrancy, loitering, and public intoxication,  Under Honolulu law, a panhandler has to use aggressive tactics in a prohibited location to be cited for aggressive panhandling.  Aggressive panhandling is forbidden within 10 feet of an ATM, a facility with an ATM, or a check cashing business.  The penalty is $25 for each offense. The city of Honolulu does not have any laws against vagrancy, loitering, public intoxication or homelessness.

Source: Honolulu Police Department; A panhandler can be arrested by the police if they:

1.  Persist in soliciting money from, follow, or approach a person after that person has given a negative response by either words or conduct to a solicitation for money

2.  Intentionally touch or cause physical contact with a person being solicited without the person’s consent

3.  Intentionally block or interfere with the safe or free passage of a person exiting or entering a vehicle near an ATM

4.  Use violent or threatening gestures toward a person being solicited

5.  Use profane or abusive language that is likely to provoke an immediate violent reaction from the person being solicited

6.  Approach or follow a person being solicited in a group of two or more persons in a manner intended or likely to cause a reasonable person to fear imminent bodily harm or damage to or loss of property or otherwise to be intimidated into giving money or other thing of value.

Source: ACLU; A panhandler or street performer has the following rights:

A.  Panhandlers and street performers have a First Amendment right to be on the public ways and sidewalks provided they are not obstructing the flow of traffic or peddling. Peddling is defined as selling, renting, or offering to sell or rent goods, wares, merchandise, food or other kinds of property or services. A person offering goods or services in public places in Waikiki who does no more than solicit or accept a donation, leaving the amount to be determined solely and freely by the donor, is not in violation of the peddling ordinance.

Source: Honolulu Star Advertiser, 1-19-2014, www.staradvertiser.com
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Conservation Easement Proposal With Turtle Bay Resort Faces Challenges

The State of Hawaii has proposed purchasing just over 600 acres of land from Turtle Bay Resort to create a conservation easement along the North Shore of Oahu.  Supported by Governor Neil Abercrombie, the proposal would allow the resort to continue using the land for recreational operations provided that they provide public access, but would prevent them from developing the land.  Turtle Bay Resorts would also retain ownership of the land under an easement. Members of the North Sore community are delighted with these suggestions by the state and Turtle Bay Resort representatives have stated that they would be willing to work with the Governor and the state legislature to come to a resolution that all parties can be happy with.

However, the biggest challenge comes down to money.  Under Hawaii law, the state government is not allowed to pay more for conservation easement than the property's appraised value.  State appraisers have come up with a preliminary appraisal range of $31.3 million to $38.3 million, and the state actually has a $40 million target price to purchase the land.  However, Turtle Bay's owners have stated that amount is far too low for them to accept.  If the Turtle Bay Resort is willing to accepted the price of $40 million, they may come up with additional compromises with the state including limiting the extent of public access and/or creating exceptions for the developer regarding required road improvements.  

One final option that the state could have would be condemnation, where the state seizes the land for public use and then pays the owner the appraised value.  However, if they were to do this, the Turtle Bay Resort would surely challenge that decision in court, which could cost the state millions of dollars in legal fees.  The state would also be responsible for managing and maintaining the property under condemnation.

Source: Honolulu Star Advertiser, 1-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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AAA Five Diamond Status Awarded to Three Hawaii Hotels and Two Restaurants

AAA has awarded their elite Five Diamond Status to three Hawaii hotels and two restaurants in 2014, while a total of 20 other hotels and eight restaurants were awarded their Four Diamond status.  The three hotels that earned Five Diamond status were the Four Seasons Resort Maui at Wailea, the Ritz-Carlton Kapalua on Maui, and the Four Seasons Resort Hualalai at Historic Ka'upulehu on the Big Island of Hawaii.  The two Five Diamond restaurants were La Mer on Oahu and Chef Mavro also on Oahu.

Below is a list of AAA's 2014 Four Diamond Hotels:

BIG ISLAND OF HAWAII:
The Fairmont Orchid, Hawaii
Mauna Lani Bay Hotel & Bungalows

KAUAI:
Grand Hyatt Kauai Resort & Spa
The St. Regis Princeville Resort
The Westin Princeville Ocean Resort Villas

LANAI:
Four Seasons Resort Lana'i at Manele Bay
Four Seasons Resort Lana'i, The Lodge at Koele

MAUI:
Hyatt Regency Maui Resort & Spa
Grand Wailea, a Waldorf Astoria Resort
The Fairmont Kea Lani, Maui
Wailea Beach Marriott Resort & Spa
The Westin Ka'anapali Ocean Resort Villas
Travaasa Hotel Hana
Honua Kai Resort & Spa

OAHU:
JW Marriott Ihilani Resort & Spa at Ko Olina
Halekulani
The Kahala Hotel & Resort
The Modern Honolulu
Trump International Hotel Waikiki Beach Walk
Aulani -- A Disney Resort & Spa in Ko Olina, Hawaii

Below is a list of AAA's 2014 Four Diamond Restaurants:

BIG ISLAND OF HAWAII:
Ulu Ocean Grill
Brown's Beach House

LANAI:
The Dining Room

MAUI:
Spago

OAHU:
Bali Steak & Seafood
Orchids
Azul
Hoku's

Source: Honolulu Star Advertiser, 1-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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City Council Puts of Decision on Bus Advertisement

The Honolulu City Council's Budget Committee has decided to wait until at least March to decide on Mayor Kirk Caldwell's suggestion to allow advertising on the sides of city buses. The proposal drew a lot of criticism from members of the community and special interest groups, who argued that the advertising would create a visual blight and have a immeasurable negative impact on tourism.  There were also legal concerns due to current Hawaii laws that prohibit bill boards and other such signs. Ann Kobayashi, the Council Budget Chairwoman, stated, "We're putting it in our toolbox so that after seeing the mayor's budget, we can see how we can raise other revenues. And if not, well, we'll go with the advertising on buses. But it's the last thing we want to do."

The Mayor's office felt that by allow advertising on the sides of buses, it would generate as much as $8 million per year in revenue.  The money was slated to go back to improving bus services and adding routes.  Michael Formby, the director of the city's Department of Transportation Services, commented, "Advertising, as a sustainable revenue source, was a means to the end. The key to me is that this is a sustainable revenue source, meaning if it's $6 million the first year, over 10 years that's $60 million."

Source: Honolulu Star Advertiser, 1-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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www.myhawaiicondo.com
www.myhawaiidreamhome.com

Legal Petition Against 801 South Street's Second Phase

A legal petition against the Hawaii Community Development Authority has been filed in state court, and is asking that they invalidate a development permit for the second phase of the 801 South Street project. According to the AOAO of neighboring building Royal Capital Plaza, which filed the petition, the HCDA violated numerous state laws and agency rules.  The petition states, "The actions of HCDA in approving the Phase II permit were clearly erroneous, arbitrary and capricious, and characterized by both an abuse of discretion and a clearly unwarranted exercise of discretion."

801 South Street is being constructed by Downtown Capital, which is owned by local affordable housing developer Marshall Hung.  Under the current proposal, two towers (Tower A and Tower B) would be built. Tower A is already under construction and will have a total of 635 units in its 400 foot residential tower. Tower B, which has been approved by the Hawaii Community Development Authority, will also be 400 feet tall and would have another 318 units.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Warehouse Vacancy Dips to 2.7 Percent in 2013

According to a report issued by Colliers International, a commercial real estate firm, the percentage of warehouse vacancies dropped to 2.7 percent in 2013 from 3.8 percent in 2012. One of the biggest reason for this is that the state of Hawaii has begun to reclaim warehouse space at Sand Island and at the Honolulu Airport to expand the Honolulu Harbor and airport facilities.  As a result, tenants in these areas are forced to find space in privately owned warehouses and rents have begun rise moderately because of it.  The average monthly base rent rose to 99 cents per square foot, an increase of 3 cents per sq foot from the year prior. The report stated, "Tightened market conditions are fueling competition for limited warehouse space. The relocation of tenants to private-sector industrial properties boosted demand throughout the island for warehouse space."

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Kahuku Residents Concerned Abut Proximity of Wind Turbines

Kahuku residents on the North Shore of Oahu expressed their concerns to representatives of Champlin Windpower LLC, who are proposing to put up an additional 15 wind turbines at the Na Pua Makani project.  These turbines would be adjacent to the 12 that were build in 2011 by First Wind LLC.  The nearest turbines will be about 2,100 feet from Kahuku's Mauka Village. Residents have asked that the turbines be moved further away from homes, schools and the community in general.  

Champlin Windpower hired Dr. Robert McCunney, a Harvard Medical School physician who specializes in occupational and environmental medicine to speak with concerned residents. McCunney stated that his research showed that the turbines were safe and did not pose any risk to the safety or welfare of any of the people living in Kahuku. Residents were a little skeptical about McCunney's claims and stated that they could hear the wind generated from the turbines.  While the residents appreciated the clean, green energy that was being produced by the turbines, they wanted to make sure that they were located further away from them, for peace of mind if nothing else.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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www.myhawaiicondo.com
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North Shore of Oahu to Get Enormous Surf

The National Weather Service is forecasting enormous surf for the North Shore of Oahu over the next few days, with wave reaching up to 35 feet (70 foot face).  Lifeguards have posted warnings and have warned spectators who have gathered to watch the professional surfers to stay a safe distance away from any shoreline.  City officials have also noted that there is a potential for waves to wash over the highways. For residents who have beachfront properties in that area, there is a concern that waves may cause additional erosion of their property.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Waikiki Neighborhood Board Denies Approval for Second Ritz-Carlton Tower

In a 13 to 1 decision (with two abstentions), the Waikiki Neighborhood Board has voted to deny approval of the second Ritz-Carlton tower being proposed by developer PACREP LLC. Legally, the board's support is not actually needed for PACREP to proceed with their development, the community's decision may weigh heavily on the City Council which wold provide an exemption to allow the building to exceed existing height limitations.  The second tower would be built right next to the first tower on Kuhio Avenue and is scheduled to be 350 feet tall.  Residents are concerned that the two towers would create a continuous wall of buildings that violates Waikiki guidelines and would destroy an exhisting view channel.  Waikiki resident Mark Harpenau commented, "This is going too far. Enough is enough. Tower 1 should not be a precedent for building another wall."

Casey Federman, the Managing Director of PACREP, responded by stating, "As a result of discussions that we have had with (Waikiki community members) and the city, we've done what we can to make adjustments, specifically we've changed the project to a more mauka-makai design and we've increased the distance between the two buildings to about 75 feet.  We'll continue to work collaboratively with the city and our intent is to do the same with the community."  However, community members argue that these changes were not enough. Furthermore, there is criticism that PACREP did not disclose their plans to build a second tower while they were obtaining permitting to build the first tower.

Source: Honolulu Star Advertiser, 1-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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University of Hawaii Requesting $33.5 Million from State to Replenish Tuition Revenues

The University of Hawaii is requesting from the state of Hawaii a total of $33.5 million to help replenish tuition revenues that was spent to cover salary restorations and increases that were made in the latest faculty contract that was ratified in 2010.  If the state is willing to grant them this money, the university added that they would use $14 million of that money to debt service $212 million in revenue bonds to start to tackle the $487 million of repairs needed for deferred maintenance projects around their various campuses.  University officials have proposed that if the state could provide them with a large enough bond, they would be able to eliminate the $487 million of repairs over the next six years and would repay back the money over the next 30 years through tuition increases.  David Lassner, the Interim President, stated, "Our approach this year is to say, ‘Let's try something different. Let's come in and ask to see if the Legislature and the (Abercrombie) administration will support us taking responsibility for this backlog."

Not all of the lawmakers agree with the University of Hawaii's strategy.  Representative Scott Nishimoto, who is the vice chairman of the House Finance committee, commented that over the past five years the school has doubled its tuition scholarships amount to $40 million instead of using some or all of that money towards obtaining construction bonds.  Nishimoto stated "Part of my concern is that you've doubled the amount of tuition you guys are giving away, but you're also coming to us for more money. At what point do you cut that off or kind of taper that off?"

Lassner to responded to Nishimoto that the University of Hawaii has been increasing their tuition rates, but still need to make sure that needy students can afford tuition.  Lassner stated, "Everything can be a trade-off, and reducing financial aid for needy students, or any number of things, certainly could produce revenue."  Under the current plan, tuition will increase by a total of 35 percent over the next 5 years.

Source: Honolulu Star Advertiser, 1-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com