Hawaii Real Estate and Economy: June 2013

Sunday, June 30, 2013

State Plans to Build New Elementary School in Kapolei

The state of Hawaii government has announced that they will be building a new elementary school in Kapolei and expanding an existing elementary school in Ewa. Kapolei II Elementary School will cost approximately $40 million to build and will be located on a 12-acre site just west of Kapolei High School on Fort Barrette Road. The new elementary school is scheduled to be completed prior to the 2015-2016 school year and would be able to take in 750 students. The land was donated to the state by developer D.R. Horton. Currently existing Ewa Elementary School will be receiving a new $9.6 million building. This building would have seven classrooms, a computer lab, a faculty center, restrooms and utility/mechanical spaces.

State Representative Sharon Har stated, "I'm ecstatic the governor released this money because I think it's an acknowledgement of our ever-growing population. We need to keep up with the investments in infrastructure. The Kapolei region is the fastest-growing region in the state of Hawaii, that's a fact. But I feel like we often get the short end of the stick. Government created this ‘Second City' concept and residents did their part by moving out here, but government hasn't kept up with the infrastructure, and that includes schools. Now we have ourselves in a situation where Kapolei Elementary and Kapolei Middle have to be run year-round as multitrack schools, with six or seven different tracks, in order to accommodate the population because you have such an overload in capacity of students."

Source: Honolulu Star Advertiser, 6-30-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Residents are Concerned About Kakaako Traffic Due to New Developments

The Howard Hughes Corporation and Kamehameha Schools have the legal rights to build a combined 29 new high rise condominium towers over the next decade. Hughes Corp is allowed to redevelop 60 acres of land for a combined total of 4,650 residential units in 22 towers by 2024. Hughes Corp is also allowed to build 985,000 sq ft of additional retail space in the Kakaako neighborhood. Kamehameha Schools is allowed to build an additional seven residential towers on 29 acres of land. They will be allowed to build 2,750 residential units in these seven towers, as well as 300,000 sq ft of commercial space. This massive redevelopment has brought about a significant concern from residents living in and around Kakaako on how bad traffic would be once all of these towers have been built.

The Honolulu Rail Project is expected to be completed by 2019 and run through the Kakaako neighborhood with a station at Ward Village and one at Ala Moana. Once completed, the two developers note that a rail station will be at most a nine-minute walk from any of the residential towers. The developers also note that there will be plenty of jobs, shopping and dining options in the Kakaako neighborhood, which will hopefully reduce traffic concerns. Residents are not convinced and would like to see updated traffic studies from unbiased parties being presented.

Source: Honolulu Star Advertiser, 6-29-2013, www.staradvertiser.com

Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Saturday, June 29, 2013

Hawaii Visitor Numbers Increases, But Spending Decreases in May 2013

According to a report issued by the Hawaii Tourism Authority, a total of 645,711 visitors arrived in the Hawaiian Islands in May 2013. This represented an increase of 3.7 percent as compared to the same month a year prior. However, in spite having more visitors, tourism spending decreased by 0.6 percent to approximately $1.05 billion. This has lead to a concern that visitors to Hawaii may be experiencing more sticker shock. Hawaii Tourism Authority president and chief executive officer Mike McCartney stated, "Consumers have become more cautious of their spending as the price of a Hawaii vacation continues to increase, resulting in a shorter length of stay and reductions in daily visitor spending."

General Manager of the Hyatt Waikiki Beach Resort and Spa, Jerry Westenhaver, added, "The second quarter is a little slower than the first quarter, but we are still beating last year and it was a very good year. A little slowdown was expected because we can't continue to grow at those rates and revenue streams."

Source: Honolulu Star Advertiser, 6-29-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Personal Income in Hawaii Decreases During the First Quarter of 2013

According to a report issued by the Federal Bureau of Economic Analysis, personal incomes decreased by 0.8 percent during the first quarter of 2013. Experts believe that this is due to an increase in federal payroll taxes that went into effect on January 1, 2013. Workers across the nation saw an increase in payroll taxes of 2 percent at the start of the year, equating to less take home pay. The state of Hawaii's Department of Business, Economic Development and Tourism is predicting a 5 percent increase in personal income for Hawaii residents by the end of 2013.

Hawaii Pacific University Cuts 20 Administration Positions Due to Lower Student Enrollment

Hawaii Pacific University, the state's largest private university, has seen a decrease in it student population from 8,000 students to 7,500 students over the last five years. Vice President for Marketing and Communications, Todd Simmons, commented, "It's not an enormous drop. It's been a small and steady drop. We are heavily tuition-reliant as a private, not-for-profit university. If we experience a downturn in that area, it does create some challenges as we're very market-sensitive." As a result, Hawaii Pacific University has announced that they will be cutting approximately 20 administrative positions at their school. Simmons added, "It's never easy to do these things. We think, ultimately, for the health and success of the university, they are necessary. We have to couple our need to live within our expenses with our need to implement a strategic plan that calls for big new things from the university."

Ka Pa'alama Preschool Helps Homeless Children in Hawaii

Each year the Ka Pa'alana Traveling Preschool educates about 700 homeless children in Hawaii. Funded by various federal programs including the Administration for Native Americans, Ka Pa'alama teaches their classes at homeless shelters and tent encampments on beaches. The program is accredited by the National Association for Education of Young Children.

In related news, Governor Neil Abercrombie has recently signed a bill which will expand the state's Preschool Open Doors program. The state government will provide an additional $7 million to help subsidies 900 children. Eventually, it appears that Abercrombie would like to create a state-funded public preschool.

Friday, June 28, 2013

Honolulu Rail Project to Get Full $250 Million From Federal Government in 2014

The United States House and Senate appropriation committees have approved federal funding for the Honolulu Rail Project in the amount of $250 million in 2014. Over six years, the city of Honolulu is hoping for a total of $1.55 billion in federal funds. The final appropriations for 2014 will still be subject to a vote in the House and Senate, as well as President Barack Obama's final signature and approval. United States Senator Mazie Hirono stated, "In these difficult economic times, when decisions about federal funding remain highly competitive, these actions by the House and Senate appropriations committees demonstrate that support for Honolulu's rail project remains solid."

Source: Honolulu Star Advertiser, 6-28-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Thursday, June 27, 2013

Ritz-Carlton Considers Building a Second Tower Next Door

PACREP LLC, the developer of the Ritz-Carlton Residences Waikiki Beach, is considering building a second tower next to the first one. According to a disclosure statement that PACREP made to buyers in the first tower, the developer is exploring the feasibility of buying the land next door. They may either merge the second tower with the Ritz Carlton or keep it as a separate condominium building.

The land in question is currently owned by Food Pantry Ltd, which is an affiliate of Foodland Super Market Ltd. The lot is relatively small with only 38,000 sq ft of space. The Food Pantry purchased the lot in 1997 for approximately $13 million and is currently using the space as a parking lot with approximately 67 stalls. Previously. The Food Pantry was considering building a grocery store on the site.

Waikiki residents living in buildings on the opposite side of Kuhio Avenue across from the two lots are very unhappy about the possibility of a second tower being built due to the fact that it would severely impact their ocean views. Mark Harpenau, a resident of the Four Paddle condominium, stated, “Holy smokes. If they put another tower there it would really put up a wall, even if there’s a little space between the towers, it would be disastrous.”

Source: Honolulu Star Advertiser, 6-27-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Wednesday, June 26, 2013

Hawaii Army Escapes Troop Cuts

Army Chief of Staff, General Ray Odierno, stated that the entire service will shrink by approximately 14 percent by 2017. This represents a force reduction of about 80,000 troops from the peak of 570,000 soldiers in 2010. Army officials added that the reductions are mostly due to federal budget cuts.

Fortunately for Hawaii's economy, the Army will actually be increasing the number of troops in the Hawaiian Islands slightly. The Army has approximately 23,000 troops in Hawaii, and an additional 165 soldiers are expected to become a part of Schofield Barracks and Fort Shafter. United States Senator Mazie Hirono, stated, "I am very pleased that the Army decided to leave its force structure in Hawaii untouched for the near future. This is important because the Army, along with the other branches of the armed forces, will play a critical role in President Obama's strategy to re-balance to the Pacific."

United States Representative Colleen Hanabusa, added that this news "reaffirms our nation's commitment to Asia-Pacific, and I am pleased to hear that both Schofield Barracks and Fort Shafter will gain soldiers for enhanced engineer and mission command capabilities, as well as headquarters functions to better serve our military personnel based in Hawaii. Our men and women in uniform not only risk their lives to defend our nation, they also enrich our state's diverse culture and contribute to our communities."

Source: Honolulu Star Advertiser, 6-26-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Hawaiian Airlines Starts New Route to Sendai, Japan

Hawaiian Airlines has added a new direct route to Sendai, Japan. The flight will take approximately eight hours and 26 minutes and will be offered three days a week. Hawaiian Airlines' Chief Commercial Officer, Peter Ingram, stated, "Sendai is a little like Sapporo. It's a market that hasn't had the benefit of direct service. We think there's an opportunity to stimulate some of the demand by establishing a direct link between Sendai and Honolulu."

When asked about other international routes planned by the airline, Ingram added, "We've actually got a little bit of reduction in our growth rate next year. We've been growing very, very rapidly over the last two years. Next year, while we have some new (A330) aircraft coming onboard, we also have some aircraft retiring. That means there's less new route additions over the next couple years than you've seen over the last few."

Peter Ingram also did not see very concerned about billionaire Larry Ellison purchasing Island Air and go! Airline. Ingram stated. "Frankly, Mr. Ellison is not the first millionaire to buy an airline in the state. He may be the first billionaire, but he's certainly not the first millionaire to buy an airline. We're obviously paying attention to what they're doing. We're prepared to remain competitive, and, really, our focus is on what we do."

Ritz-Carlton Waikiki Sells 85 Percent of Building During Sales Event

The Ritz-Carlton Residence Waikiki Beach tower sold a total of 263 units over the weekend during their sales event. This represented approximately 85 percent of the 309 units offered in the new development. The developer offered a range of units ranging from 400 sq ft studios starting at approximately $650,000 all the way to a 4,220 sq ft penthouse units priced around $15 million. The property will be located on the corner of Kuhio Avenue and Kalaimoku Street, and all u it's would have an ocean view overlooking Fort DeRussy Park.

Jason Grosfeld, a principal of PACREP LLC, the developer, stated, "The success of this weekend's event further reinforces that, for our buyers, Ritz-Carlton is by far their top choice." Construction is expected to start later this summer. The building is expected to be completed in early 2016.

Tuesday, June 25, 2013

Additional Bills For Honolulu Introduced to Ban Smoking in Public Places

There are three new bills being introduced by various members of the Honolulu government to ban smoking at various public places around Oahu. Mayor Kirk Caldwell initiated Bill 24, which would help to clarify a smoking ban already in effect for seven major parks and beaches in East Honolulu. City Councilman Ikaika Anderson would like to expand the smoking ban to all city operated parks and beaches through Bill 25. And finally, City Councilman Ron Menor is introducing Bill 26, which would ban smoking from all city bus stops. The City Council Public Safety and Economic Development Committee is listening to testimonials from both supporters of the three bills and those who oppose it over the next few weeks. The entire City Council will vote on the three bills sometime in July.

Source: Honolulu Star Advertiser, 6-25-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Monday, June 24, 2013

One in Six Children in Hawaii Live in Poverty

According to new data released by the University of Hawaii Center on the Family, approximately 51,000 children in Hawaii live in families which earn less than $22,811 per year, which is the federal poverty line for a four-person household. This represents approximately 17 percent of the under-18 population in the state. More concerning for state officials was that there was a 12.5 percent increase in total number of children under the poverty line as compared to a study conducted in 2005. Center on the Family junior specialist, Ivette Rodriguez Stern, commented, "When you have those poor economic conditions in childhood, it has ramifications for childhood well-being throughout their development."

The national Kids Count reported stated, "The risks posed by economic hardship are greatest among children who experience poverty when they are young and among children who experience persistent and deep poverty. Growing up in poverty is one of the greatest threats to healthy child development. Poverty and financial stress can impede children's cognitive development and their ability to learn. It can contribute to behavioral, social and emotional problems and poor health."

The Hawaii study also showed a slight increase of teenagers abusing alcohol and drugs. Furthermore, more than 25 percent of high school students failed to graduate on time, as compared to the national average of 22 percent. Hawaii ranked 25th in the nation for the well-being of children.

Source: Honolulu Star Advertiser, 6-24-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Hawaii's Solar Energy Market Seems to Be Slowing

The number of photovoltaic installation panels across the state of Hawaii had increased by 150 percent in 2011 and an additional 172 percent in 2012. However, in 2013, it appears that demand for new solar panels is beginning to slow down and industry experts are expecting only a 66 percent increase by the end of this year. With dozens of new photovoltaic installation companies and franchises opening up across the state each month, companies are forced to offer fantastic giveaways and promotions to try and create new business. From free all-expenses-trips to Las Vegas, to free iPads, to $1,000 cash rebates, to working with local celebrities, companies are trying to get creative with their marketing tactics.

Marco Mangelsdorf, who works in the photovoltaic industry and has been tracking its data, stated, "While it may be too early to say that there's a growing air of desperation among many PV integrators in the state, the apparent shrinking pie, especially when one compares the first five months of this year to the last five months of 2012, is prompting an expanding number of companies to offer bigger and bolder bribes to get homeowners to pick them."

Part of the challenge is that the state of Hawaii had decreased the amount of state tax credit for the installation of new photovoltaic systems systems on January 1, 2013.

Sunday, June 23, 2013

Sidewalk-Nuisance Ordinance to Go Into Effect at the End of June 2013

Honolulu Mayor Kirk Caldwell has stated that the new sidewalk-nuisance ordinance will go into effect at the end of June 2013. Under the law, the city may immediately remove "any object or collection of objects constructed, erected, installed, maintained, kept or operated on or over any sidewalk, including but not limited to stalls, stands, tents, furniture and containers, and of their contents or attachments." Previously, the law required a 24 hour notice to be posted on the items. The owner of the items may reclaim their personal property for $200.

Mayor Caldwell stated, "There's not going to be any specific target, but we are going to use (the ordinance) whether it be at the entrance to Waikiki on Kalakaua, or Puowaina Park, or Iwilei, or Thomas Square, or Chinatown. There are places around this city and outside, too … where you have clusters of people occupying property. And where that occurs, we're going to be using this bill."

The American Civil Liberties Union-Hawaii chapter and (de)Occupy Honolulu have criticized the new law and argue that it unfairly targets the homeless and violates free speech.

Source: Honolulu Star Advertiser, 6-23-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Kamehameha Schools Plans to Create Retail Complex in Kakaako Called SALT

Kamehameha Schools has announced that they would like to renovate several old buildings in Kakaako and create a new retail complex. The project is currently being called SALT and would bordered by Ala Moana Boulevard, Coral Street, Keawe Street and Auahi Street. It is estimated that there will be a total of 84,000 sq ft of leasable space for 50 tenants. Kamehameha Schools is currently seeking a variance from the Hawaii Community Development Authority to allow them to construct a six-story 65-foot tall parking garage, which would be higher than than the currently allowed 45 height limitation.

The Hawaii Community Development Authority is the state agency responsible for regulating development in Kakaako. They will be holding a community input meeting on July 3, 2013 to hear Kamehameha School's presentation as well as public testimonial at 10:00 am at 461 Cooke Street.

Sequestration Hits Hawaii Civilian Defense Workers Hard With Furloughs

Starting July 8, 2013, more than 14,000 civilian defense workers throughout the state of Hawaii will be forced to take one furlough day per week due to sequestration. This 20 percent pay cut is part for the federal government's plan to reduce spending by $80 billion. The exact total cost to the state of Hawaii is still unclear as government agencies scramble to secure other sources of funding. One estimate believed that the furloughs would cost the state's economy approximately $134 million, but others believe that number may be significantly higher.

It is also unclear how long sequestration and furloughs will last. While this current round is scheduled to end in September, there is a good chance that it would be extended past that. Many economists believe that 2014 would be an even tougher year for federally funded projects and departments and worry that some departments may decide on layoffs as opposed to furloughs.

Ritz-Carlton Residences Waikiki Beach Holds Sales Event

The Ritz-Carlton Residences Waikiki Beach held its sales event over the weekend and found buyers for the vast majority of their units. The project, to be built at 2121 Kuhio Avenue, will feature a total of 309 units ranging in size from 400 square foot studios to 3,000 plus square foot three-bedroom suites. Prices started at $500,000 and reached just of $15 million for the penthouses. The condominium-hotel property will also feature the state's first Dean & DeLuca, a gourmet market headquartered in New York City. There will also be a Sushi Sho restaurant and a BLT Market restaurant.

Jason Grosfeld, the principal for the developer PacRep LLC, stated, "This a unique opportunity. Waikiki is one of the most popular vacation destinations in the world but there has been very little available here. (The Ritz-Carlton) is by far the best brand for our customers from Asia. It's the No. 1 luxury brand."

Saturday, June 22, 2013

Governor Signs Bill Helping Low to Mid-Income Families Qualify for Mortgage Loans

Governor Neil Abercrombie has signed a Senate Bill 1025 into law, allowing more low to mid-income families the opportunity to qualify for mortgage loans. The bill updates the Hawaii based Hula Mae Single Family Mortgage Loan Program and eases requirements for potential home owners. Under Hula Mae, buyers may be able to qualify for lower than market value interest rates and receive down payment and closing cost assistance. Executive Director of the Hawaii Housing Finance and Development Corp., Karen Seddon, stated, "It absolutely makes loans more available to more people in the state. We're able to give them a hand up by making mortgage loans available to folks that wouldn't otherwise be able to get one." The HHFD will oversee the Hula Mae program.

Abercrombie added, "This is really something that can change people's lives.This is really a hope bill. I think it fosters economic prosperity, as well. It's a commitment to a sense of confidence that you can't feel otherwise unless you're able to make this change." The law takes effect on July 1, 2013

Source: Honolulu Star Advertiser, 6-22-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Electric Cars in Hawaii Still Pay Equivalent of $3.69 per Gallon

According to a report released by the U.S. Department of Energy, Hawaii drivers who own an electric car may not be getting the massive savings that they were hoping for. While the national average that electric car drivers spend for a "gallon of gas" equivalent is just $1.14, Hawaii drivers are spending $3.69 per gallon equivalency. This is due to the extremely high cost of electricity needed to "fuel" these electric cars in Hawaii.

The U.S. Energy Information Administration stated that in April 2013, Hawaii residents paid an average of 37 cents per kilowatt-hour for electricity. Nationally, the average for that same month was 12 cents per kilowatt-hour. To encourage the use of electrical cars in Hawaii where electricity is so expensive, many shopping centers and offices are now offering free charging stations. Other groups are encouraging the installation of a solar system at home to power your electric car with the sun.

The federal government has created a new website called eGallon at energy.gov/eGallon which helps drivers calculate the actual cost of operating their electric vehicles. U.S. Energy Secretary. Ernest Moniz, stated, "Consumers can see gasoline prices posted at the corner gas station but are left in the dark on the cost of fueling an electric vehicle. The eGallon will bring greater transparency to vehicle operating costs, and help drivers figure out how much they might save on fuel by choosing an electric vehicle. It also shows the low and steady price of fueling with electricity. Not only can electric vehicles save consumers on fuel and reduce our dependence on oil, they also represent an opportunity for America to lead in a growing, global manufacturing industry."

Athletic Department at UH Predicted to Have $3.3 Million Annual Deficit

Over the last 12 years, the University of Hawaii Athletic Department has finished in the red ten times. This current fiscal year is predicted to be the worst one yet, with an estimated $3.3 million annual deficit. Lower than expected ticket sales for all sports, especially football and woman's volleyball, accounted for $1.28 million below projected amounts. The Hawaii Tourism Authority decided not to provide the athletic department with an anticipated $575,000 sponsorship. The University was also scammed $200,000 for a fake Stevie Wonder concert, which was supposed to benefit the athletics program. Stevie Wonder, nor his real agency, knew anything about the concert and the university has already spent $105,000 in legal fees trying to reclaim their money from the fake agents.

Ben Jay, the new athletic director, took over the program five months ago. Jay stated, "I think the football record (3-9) had an impact and certainly pushed our losses to be bigger than what we had anticipated, but there were several other things that also happened. And we were over budget in some areas of necessary expenses. Add all that up and we have a deficit to end this year that is much more than we would have liked. We're trying to make it up and trying to find new revenues, but the loss of some of our sponsorship revenue due in part to what happened here has been unfortunate."

Jay stated that his goal is to get to break-even in 2014.

Friday, June 21, 2013

Larry Ellison Considering The Purchase of go! Airlines

Larry Ellison, who purchased 97 percent of the island of Lanai in June 2012 and who purchased Island Air in February 2013, has announced that he is in discussions with Mesa Air Group, the parent company of go! airline. Island Air's chief executive officer, Paul Casey, stated, “We are committed to building a strong regional airline and part of that process is exploring all options including discussions with Mesa Air,” Mesa Air Group created go! airline in 2006. Mesa filed for Chapter 11 bankruptcy in 2010 and emerged out of it in 2011.

Peter Forman, a Hawaii aviation historian, commented that Larry Ellison is "making a play to become the second serious interisland competitor. It's a major move.” Forman noted that if Island Air does combine with go! Airline, neighbor island flights should become more competitive due to increased service.

Source: Honolulu Star Advertiser, 6-21-2013, www.staradvertiser.com
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Unemployment Rate for Hawaii Drops to 4.7 Percent in May 2013

According to state of Hawaii's Department of Labor and Industrial relations, the unemployment rate dropped to 4.7 percent for the state in May 2013. This figure represented the lowest rate in almost five years and was significantly better than the national average of 7.6 percent. County data, which is not seasonally adjusted, showed that Honolulu County had the lowest unemployment rate at 4 percent. Maui County posted a 4.8 percent unemployment rate. Kauai County was at 5.3 percent and Hawaii (Big Island) County was at 6.5 percent.

Thursday, June 20, 2013

404 Ward Avenue Condominium Building Update

The Howard Hughes Corporation is planning to build a 400 foot tower at 404 Ward Avenue in Kakaako. The building's official name has not been announced yet, but tentative plans call for a total of 424 units, out of which 375 units would be reserved for residents earning between 100 to 140 percent of Honolulu's median income. This would satisfy a requirement set forth by the Hawaii Community Development Authority to create housing for the "moderate income" group, or those who earn too much to qualify for low-income housing but who do not make enough to pay for market-priced housing. This translates to a maximum annual income of about $85,000 for a single person or approximately $120,000 for a family of four. Unit prices would range from between $400,000 to $700,000 in 404 Ward Avenue.

Howard Hughes Corp is requesting a variance from the Hawaii Community Development Authority to build the tower at 404 Ward Avenue just 120 feet away from the existing Kauhale Kakaako tower. The rule currently states that a new building's broad side should be 300 feet away from an existing building's broad side. The Hughes Corp is also requesting that they be allowed to build the tower's garage to 75 feet instead of the current limit of 65 feet to maximize the building's small footprint. The HDCA will review the permit applications for another month and will make their decision by July 17, 2013.

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
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The Collection Draws Opposition from Neighboring One Waterfront Tower

The Collection is a new luxury high rise condominium tower in Kakaako that will be marketed and developed by Alexander and Baldwin. Located on the corner of Ala Moana Boulevard and South Street, the tentative plans for The Collection calls for 397 units in a 400 foot tower, an additional 54 units in a four-story building, and 16 townhouse units in a three-story building. Fronting the main streets of the 3.3 acre lot would be several retail shops and restaurants. It is anticipated that one-bedroom units will start at about $375,000, the two-bedrooms in the high 500,000s and three bedrooms will start at about $750,000.

However, owners of the the adjacent One Waterfront Towers condominium are telling the Hawaii Community Development Authority that the project should not be approved. President of the AOAO for One Waterfront Towers, George Beavin, stated, "I don't believe this size of a building belongs where it is (planned). We already have a high tower." C. Bell, another owner in One Waterfront Towers, added, "Don't block us in from our sunsets. Don't take away from us what we paid for."

It should be noted that the plans for the 400 foot tower exceed the state guidelines for the minimum separation distance between buildings. Under the Hawaii Community Development Authority rules, the slim side of towers must be at least 200 feet apart. The Collection will be 249 feet away from One Waterfront. The Hawaii Community Development Authority will make a decision regarding permits for The Collection on July 17.

Hawaiian Electric Company Hopes to Reduce Rates Through Renewable Energy Projects

The Hawaiian Electric Company is working with state regulators to bring in five new renewable energy projects to the state. The developers of these projects will produce a combined 64-megawatts of energy, or about 5 percent of Oahu's needs. The agreement would call for these projects to sell the energy generated to the Hawaiian Electric Company for an average price of 15.9 cents per kilowatt-hour, which would be approximately 33% less than what it currently costs HECO to produce the equivalent power. It is believed that the five projects combined could save the company $7.4 million a year.

HECO Vice President for energy resources and operations, Scott Seu, stated, "These projects represent an important first step as we are starting to see lower market prices for renewable energy. The strong response we received (from developers) demonstrates the high level of competition in our market. That's good news for customers."

The Public Utilities Commission is currently reviewing the developers and their projects. The names of the developers and their projects will not be announced until they are proved by the PUC.

City Leaders and Cyclists Promote Bicycling in Honolulu

Various Honolulu city leaders, including Mayor Kirk Caldwell, and cycling advocates are working together to promote bicycling as a healthier and more affordable way to commute. There are current 134 combined miles of bike paths, bike routes, and bike lanes in Honolulu and the Department of Transportation Services has stated that another 310 miles of bikeways will be added at a cost of $68 million.

Officials estimate that about 1.5 percent of Oahu's population, or about 15,000 people, use by bicycles to get around. However, it is believed that if additional bikeways were added, that number would increase. Cycle On Hawaii's president, Natalie Iwasa, stated, “Once we get more people riding, they’re going to want to have more places to ride. The thing now is to hold people like the mayor accountable for their words.”

Mayor Caldwell commented that cycling will help residents “save money, stay healthy and not pollute. People can ride from Ewa, get off here with their bike, ride up to City Hall, ride over to the state Capitol, ride to some of the major employment centers and get to and from work.”

Wednesday, June 19, 2013

2,700 Marines from Okinawa May Come to Oahu

According to the U.S. Government Accountability Office, a total of 10,700 United States Marines will be relocating to other bases from Okinawa, Japan by 2026. Tentatively, 4,700 Marines will be sent to Guam, 2,700 Marines will come to Hawaii, 2,500 will go to Australia and 800 Marines would be sent to various bases across the mainland United States. The Defense Department is now conducting several studies as to where to house these 2,700 Marines on the island of Oahu.

Currently, the Kaneohe Bay Marine Corps Base has 7,525 Marines stationed there. An additional 1,734 Marines are based out of Camp Smith, and there are 97 additional Marines scattered throughout the rest of Hawaii's bases. Additional base housing would be needed to incorporate the Okinawa Marines at Kaneohe Bay. Housing may also be built at Barbers Point Naval Air Station or Pearl City Peninsula. Chuck Little, the spokesman for Marine Forces Pacific at Camp Smith, stated, "These (Oahu) studies are in their very early stages; as more information becomes available, we'll be better able to make informed decisions."

Source: Honolulu Star Advertiser, 6-19-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

North Shore Real Estate - Defend Oahu Coalition Opposes Turtle Bay Resort Expansion

In 1986, the state of Hawaii's Land Use Commission gave their approval allowing Turtle Bay Resort to expand. Over the last 27-years, Turtle Bay Resort had not decided to follow through with their expansion plans, but in recent years have begun to move in that direction. The Defend Oahu Coalition is fighting against the Turtle Bay Resort, and has filed a motion with the Land Use Commission to repeal their 1986 decision. The group contends that 236 acres of Turtle Bay Resort's 880 acre property should revert back to agricultural use. Tim Vandeveer, the spokesman for the Defend Oahu Coalition stated, "Promises have been broken. We believe that the law matters and feel that the commission has a mandate and an obligation to require that developers make good on promises to our state and community in exchange for zoning modifications." The Defend Oahu Coalition also contends that the expansion project of the Turtle Bay Resort that was being proposed in 1986 is completely different to the one being presented now, and as a result should be voided.

Replay Resorts Inc, which owns the Turtle Bay Resort, is still working on their environmental impact survey and their project proposal. Tentative plans called for building 750 residences and 625 additional hotel units on the property. The project would be done in phases over the next 10 years and would cost approximately $770 million. Vice president of Replay Resorts Inc., Scott McCormack, stated, "In response to community input and concerns, we have provided a balanced and reasonable plan. We will continue to work through the process with integrity."

Source: Honolulu Star Advertiser, 6-19-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

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