Honolulu Rail Project Could Resume In September 2013

The Honolulu Rail Project may resume as early as September 16, 2013, now that the State Historic Preservation Division and the Board of Land and Natural Resources has given their approval on the completed archaeological survey.  The project came to a halt at the of 2012, when the Hawaii Supreme Court ruled that all of the archaeological work needed to be completed before construction could begin. Executive Director for the Honolulu Authority for Rapid Transportation, Dan Grabauskas, stated, "This approval is a major step forward.  Getting back to work after the yearlong legal delay is essential to completing the project on time and on budget that's our goal."  The Rail Project still needs to receive a "special management area" permit from the Honolulu City Council.  HART hopes that the City Council's Committee on Zoning and Planning would be able to hold a special session prior to the Council's next general meeting on September 11, 2013.

Opponents of the Honolulu Rail Project are still waiting to hear from the 9th U.S. Circuit Court of Appeals on a federal lawsuit that they had filed to stop the project.

Source: Honolulu Star Advertiser, 8-31-2013, www.staradvertiser.com
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Visitor Arrivals Increased in July 2013, But Spending Dropped Slightly

According to the Hawaii Tourism Authority, a total of 757,969 visitors came to the Hawaiian Islands in July 2013, or a 4.6 percent increase as compared to the same month a year prior.  However, visitors spent just $1.3 billion, which equated to 0.7 percent less than they did in July 2012.  HTA President and CEO, Mike McCartney noted that the state will clearly exceed the number of visitors and spending that were seen in 2012, but added that, "We must be innovative and work harder to remain price competitive, while offering a quality and authentic visitor experience that best highlights our people, place and culture."  According to McCartney, visitors have spent an average of $41 million per day so far this year.  Out of that, approximately $21 million was spent on Oahu, $11 million in Maui County, $5 million on the Big Island of Hawaii and $4 million on the island of Kauai.

One positive item that the Hawaii Tourism Authority noted was that the length of stay and visitor days to the neighbor islands increased in July. Experts hope that more visitors will travel to the outer islands, thus alleviating some of the compression on Oahu and helping to normalize prices.  Mike McCartney added, "Maintaining and increasing air access, distributing visitors across all of the Hawaiian Islands, and diversifying our market mix by increasing our meetings, conventions and incentives business will be priorities as we look to the second half of the year."

Source: Honolulu Star Advertiser, 8-30-2013, www.staradvertiser.com
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Honolulu's Unemployment Rate Drops to 4.2 Percent in July 2013

According to the U.S. Labor Department, the city of Honolulu had a 4.2 percent unemployment rate in July 2013, tying it for the 13th lowest jobless rate among 372 metropolitan areas nationwide.  Hawaii unemployment experts note that Honolulu County has fared much better then the other outer islands, thanks to a stronger economy and increased tourism. Maui County had a 4.9 percent unemployment rate while Kauai County had a 5.3 percent unemployment rate. Hawaii County (Big Island of Hawaii) had the highest unemployment rate at 6.8 percent. County unemployment data is not adjusted for seasonal variations.

Source: Honolulu Star Advertiser, 8-29-2013, www.staradvertiser.com
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Hawaiian Airline Continues to Add Jobs

The U.S. Department of Transportation has reported that the number of jobs in the airline industry continues to shrink, as American Airlines and various regional carriers continues to reduce their staff.  American Airlines alone cut 5,400 jobs, or 8.4 percent of its workforce as they attempted to cut costs during their bankruptcy. However, Hawaiian Airlines is proud to report that the opposite is true for their company, and noted that their workforce grew by 11.5 percent in 2012 and is already up an additional 6 percent during the first eight months of 2013.  Hawaiian Airlines now employs 5,220 people and hopes to add additional positions shortly as additional flights and services are being planned for several new counties and cities in Asia.

Source: Honolulu Star Advertiser, 8-28-2013, www.staradvertiser.com
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State Representative Hopes to Pass Tuition Freeze at University of Hawaii

State Representative John Mizuno will be introducing a new bill at the next legislative session which requests a tuition freeze for the entire University of Hawaii system for the 2014-2015 academic year.  This year, undergraduate students who are Hawaii residents pay $4,572 per semester at the UH-Manoa Campus, while nonresident undergraduates pay $13,356 per semester. However, under the current plan, students will see an increase of 7.5 percent per year for the next three years.  This will mean that by the 2016-2017 school year, residents will pay $5,688 per semester while nonresidents would pay $16,452 per semester. Mizuno stated, "These tuition increases are not fair.  It's going to hurt our students."

University of Hawaii's Executive Vice President of Academic Affairs, Linda Johnson, stated that the increases are necessary in order to provide classes and programs of quality.  The additional funds will also be used for classroom improvements, financial aid services, operating expenses and enhancing technology across the campuses.  Johnson stated,"I think that our tuition is affordable." Johnson did add that the school did plan to analyze what would happen in Mizuno's proposal does pass into law.

Source: Honolulu Star Advertiser, 8-27-2013, www.staradvertiser.com
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North Shore Residents Search for Traffic Solutions at Laniakea Beach

Residents on the North Shore of Hawaii have become increasingly frustrated with the traffic problems on Kamehameha Highway and are turning to transportation officials to come up with ideas to fix the situation. One of the biggest problem areas is section of highway next to Laniakea Beach.  The beach is very popular with both tourists and residents, but with only a limited amount of parking on the ocean side, many people park on the mountain side of the highway and then dart across the busy highway to get to the water.  This has ground traffic in that area to a complete standstill at times and also has created some pedestrian related accidents.  Carol Philips, the chairwoman of the North Shore Neighborhood Board's transportation committee, stated that traffic is the number one quality of life issue for residents in the area.  Philips added, "It's just been getting worse and worse every year.  This place is masquerading as a little country town and it's turned into a tourist mecca."

One suggestion made by state transportation officials would be to block off parking at Laniakea Beach altogether, but residents fear that this would just increase parking problems further down the road. Another North Shore Neighborhood Board member, Blake McElheny, commented, "I hesitate to even call it a solution.  One of the things that makes the North Shore special is the access to the beautiful beaches and the ocean." Other residents commented that they were happy that tourists were visiting the area, but wanted to make sure that the traffic does not become an unbearable burden on the community.

Source: Honolulu Star Advertiser, 8-26-2013, www.staradvertiser.com
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Plans to Build Second Workforce Housing Tower in Kakaako

Developer Marshall Hung of Downtown Capital LLC, has put in a request with the state to build a second workforce housing tower on a 3.7 acre site located on the corner of South Street and Kapiolani Boulevard. Construction for the first tower, named 801 South Street, has already started after the vast majority of the 635 units have been put into escrow.  801 South Street had a total of 635 units in studio, one bedroom and two bedroom configurations.  The second tower that is being proposed would have an additional 410 units, and would feature slightly larger units, one to three bedrooms, and would be priced between $360,000 to $700,000 Fee Simple.

However, the Historic Hawaii Foundation has raised a significant objection to the construction of the second tower.  The historic News Building currently sits on the site, and approximately half of the building would have to be demolished in order to build a 788-stall parking garage.  Executive director for the Historic Hawaii Foundation, Kiersten Faulkner, stated, “It’s an incredibly significant historical and architectural treasure in the center of the civic area.”  Marshall Hung responded by noting that the News Building is not on any state or federal registries of historic building, but also added, "“We’re sensitive to the community.”

Source: Honolulu Star Advertiser, 8-25-2013, www.staradvertiser.com
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Hawaii Tourism Authority Focuses Resources on Emerging Markets for 2014

The Hawaii Tourism Authority is a state funded agency which creates Hawaii's tourism policy and manages the marketing budget to bring in new visitors to the islands.  Each year, the HTA sets forth a new goal of the number of visitors that that would like to attract to Hawaii and the amount that they hope to spend.  In a recent announcement, the Hawaii Tourism Authority stated that they hope to bring in 8.7 million visitors to Hawaii in 2014 and have them spend over $16.1 billion.  In order to reach these goals, additional resources are being spent in newer emerging markets, like China, South Korea, Taiwan and Latin America.

Specifically, the HTA hopes to see the number of Chinese visitors increase to 182,078 in 2014, which would represent at 25.6 percent increase from the predicted 2013 numbers.  These Chinese visitors are estimated to spend $441.7 million in 2014, an increase of 23.3 percent from the what is expected in 2013 results. The number of Korean visitors are also expected to rise to 208,921 people, or an 8.9 percent increase from 2013.  The Hawaii Tourism Authority hopes that they would spend 10.9 percent more in 2014 than in the year prior.  The Hawaii Tourism Authority is still predicting very strong numbers from Japan, Canada and the mainland United States in 2014, but experts note that the growth from those markets will be relatively small.

Source: Honolulu Star Advertiser, 8-24-2013, www.staradvertiser.com
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City Enforcing Sidewalk Nuisance Laws and Park Closure Hours

City officials announced that they have hauled away 7.79 tons of waste and collected 12 bins of personal items this week in a series of sweeps to uphold new sidewalk nuisance laws and park closure hours.   Under the new ordnance, city official may remove items deemed to be "nuisances" from a city sidewalks.  Owners of the seized items may reclaim their personal property if they pay a $200 fee.  A "sidewalk nuisance" is defined as “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.”

Source: Honolulu Star Advertiser, 8-24-2013, www.staradvertiser.com
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Hawaii Expecting 8.75 Million Visitors in 2014

According to a prediction issued by the Hawaii Tourism Authority, approximately 8.75 million visitors will come to the Hawaiian islands in 2014.  The goal of the HTA would be to increase spending in 2014 to $16.1 billion, or 5.1 percent more than in 2013. Vice President of Brand Management for the Hawaii Tourism Authority, Dacid Uchiyama, stated, “We’ll continue to grow in 2014 but at a slightly slower pace."  As a point of comparison, in 2012 a total of 7.99 million visitors spend $14.3 billion in Hawaii.  In 2013, the goal would be to have 8.48 million visitors spend $16.1 billion.

Source: Honolulu Star Advertiser, 8-23-2013, www.staradvertiser.com
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Economist's Predictions for Big Island of Hawaii

Jack Suyderhoud, one of the states leading economists and a professor of economics at the University of Hawaii's Shidler College of Business, presented his thoughts at the First Hawaiian Bank, Hawaii County (Big Island of Hawaii) Business Outlook Forum.  Suyderhoud stated, "Thanks to the statewide tourism boom, Hawaii island's economic outlook is better than it has been in the last five years.  Both sides of Hawaii island are experiencing economic expansion, though not all sectors are benefiting uniformly.  The tourism boom will slow down, but its continued strength will spread through the rest of the economy. As economic activity increases there will be more self-sustaining growth and more opportunities for all of Hawaii island's businesses and residents."

Suyderhoud noted that the Big Island of Hawaii is not as economically dependent on tourism as Maui or Kauai, but the improving tourism industry had made a significant contribution to their rebound.  The Hawaii Tourism Authority noted that 753,768 visitors came to the Big Island during the first six months of 2013, an increase of 5.2 percent from the same period a year prior.

Source: Honolulu Star Advertiser, 8-23-2013, www.staradvertiser.com
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Commercial Real Estate Sales Hit MidYear Record

According to a report released by Colliers International, a commercial real estate firm, over $2.2 billion of commercial real estate sales occurred during the first 6 months of 2013.  This number set a new MidYear record for the Hawaiian islands and more than doubles the $942 million sold during the first half of 2012.  For purposes of the report, sales included all commercial property including hotels, retail centers, office buildings and vacant land.

The Colliers report stated, "Investors continue to remain bullish in the Hawaii commercial real estate market. Hotels have regained their luster and institutional investors have jumped back into the hotel investment pool." The report noted that 78 percent ($1.7 billion) of the dollar value of all commercial property sales were from the sale of eight hotels.  The largest transaction was the Grand Wailea on Maui, which sold for $774 million, followed by the Hyatt Regency Waikiki which sold for $450 million.

Source: Honolulu Star Advertiser, 8-23-2013, www.staradvertiser.com
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Hughes Corp. Given Approval to Build First Three Towers in Kakaako

The Howard Hughes Corp has been given approval by the Hawaii Community Development Authority to build its first three high-rise towers in Kakaako. The HCDA had previously approved a tower located at 404 Ward Avenue, which will feature 424 moderately price units. Towers #2 and #3 will be at 1140 Ala Moana Blvd and 1108 Auahi Street respectively.  1140 Ala Moana Blvd (tentative name) will be a luxury condominium with a total of 177 units in the main tower and 10 townhouses facing Ala Moana Blvd.  1108 Auahi Street (tentative name) will have 312 units in the main tower, and 82 flats and townhouses in low-rise buildings.  All three towers are projected to begin sales by the end of this year.  Construction is expected to begin early 2014 and the towers are expected to be completed in 2016.

According to their master plan, the Hughes Corp has the rights to build 22 towers over the next 15 years. Hughes Corp has stated that in a future phase of the development, they may build three more towers on the block currently occupied by the Ward Warehouse.

Source: Honolulu Star Advertiser, 8-22-2013, www.staradvertiser.com
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Hawaii Has Low Obesity Rate, But Trend is Still Not Positive in Some Communities

According to a report released by the Trust for America's Health and the Robert Wood Foundation, a total of 23.6 percent of adults in Hawaii are considered to be obese, which is defined as having excess body fat that could have an adverse effect on health and life expectancy. This number actually ranked Hawaii has one of the top five states in country with the lowest obesity rate (47th lowest), but experts warn that the rate is still climbing in general.  Furthermore, obesity rates among some communities, especially the Native Hawaiians and Pacific Islanders, are extremely high.  According to the study 40.8 percent of Native Hawaiian adults are obese.

Director for the state of Hawaii's Department of Health, Loretta Fuddy, stated, "While Hawaii has a lower obesity and chronic disease rate relative to many other jurisdictions, our state is following the same troubling path as the rest of the nation.  Nearly one-quarter of Hawaii adults are obese, and some population groups have much higher rates. Obesity is an epidemic and we cannot afford to sit back idly on this issue.  Obesity is costly to our state and can lead to diabetes and other chronic conditions later in life."  Fuddy noted that the state spends about $470 million on obesity-related medical costs and $770 million on costs associated to diabetes.

For strategies designed to curb the obesity epidemic, go to: health.hawaii.gov/wp-content/uploads/2012/11/DOH_PAN2020_LO.pdf

Source: Honolulu Star Advertiser, 8-22-2013, www.staradvertiser.com
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Japanese Wedding Companies Hope Lease Land at Kewalo Basin Harbor in Kakaako

Two Japanese wedding companies, Goodluck Corp, and Take and Give Needs Company, have both submitted proposals to lease state land fronting Kewalo Basin Harbor in Kakaako.  The land in question was previously occupied by McWayne Marine Supply, but is currently vacant.  The two companies are seeking a 25-year lease and would build a 25,000 sq ft venue complete with a restaurant and bar. The Hawaii Community Development Authority, who owns the Kewalo Basin Harbor, has agreed to allow their staff to negotiate terms for a potential lease. Final approval would not be given until a more detailed presentation is given by the two companies.  A public hearing, environmental review and community consultation would also need to be completed by all interested parties.

There is actually quite a bit of precedence for these types of projects.  Honey Bee USA Inc., another Japanese wedding company, is under contract with the state Department of Land and Natural Resources to build a $20 million wedding facility at the Ala Wai Small Boat Harbor.  In 2012, the Hawaii Community Development Authority agreed to the building of 53 By The Sea, a $16 million wedding venue with a restaurant and bar on the site of the old John Dominis Restaurant near the entrance of Kewalo Basin Harbor.

Source: Honolulu Star Advertiser, 8-22-2013, www.staradvertiser.com
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Possible Commercial Light Display at Kakaako Waterfront Park

Illuminate Group Inc. is proposing to lease 9.4 acres of the Kakaako Waterfront Park from the Hawaii Community Development Authority to create a $4 million theme park filled with themed light displays.  Illuminate would like a 25-year lease with a 10-year lease extension option.  The company would charge somewhere between $6 to $18 per person for admission, and expects to get about 500 people per day or 182,500 people per year.  A detailed presentation will be made by Illuminate Group in the near future and the community will be allowed to voice their opinion at two public hearings.  It is unclear how much lease rent the HCDA would receive.

Initially, reaction to the proposal has been mixed.  Executive Director for the HCDA, Anthony Ching, pointed out that this particular section of the park is not used very much, and creating a light park would improve the area. Ching also noted that revenue generated would help offset the upkeep and operating express for the Kakaako Waterfront Park, which costs the agency over $600,000 per year.  However, some opponents of the plan argue that the space was intended for public use and creating a private theme park which changes admissions goes against why the park was placed there in the first place.

Source: Honolulu Star Advertiser, 8-22-2013, www.staradvertiser.com
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Four New Condominiums Proposed in Kapolei

Developer Franco Mola and his company, Coastal Rim Properties Inc., has proposed building four new condominium towers in the downtown business district of Kapolei, on the Western Coast of Oahu.  According to Mola's plan, each of the four towers will be between 10 to 12 stories tall, and there will be a courtyard in the center of the buildings.  One of the towers will be "affordable senior housing" while the other three towers would be considered workforce housing.  There will also be some ground-floor retail space planned for each of the towers as well as a community garden, recreation areas, and an open-air pavilion.

Kioni Dudley, the chairman of the Kapolei Neighborhood Board's planning and zoning committee, seems to support the idea in general and commented, "Kapolei is supposed to be a city, but they've never built it.  These are the first buildings in the new business district that are of any height whatsoever. It turns out to be condo buildings. Our whole problem out here is that all we get is bedroom communities and we have to depend on jobs in Honolulu rather than in our second city. Our freeway just gets more and more crowded with people going into Honolulu because there's no real business center.  The downtown business district of Kapo­lei is currently pretty much of a ghost town, a skeleton grid of cross streets surrounding 60 blocks of empty property. The city itself is entirely empty. It's a bunch of cross streets with no buildings in them."

Source: Honolulu Star Advertiser, 8-21-2013, www.staradvertiser.com
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Public Schools Showed Improvement Through "Strive HI" Program

The state Department of Education released their results from their new "Strive HI" system which is designed to better prepare students for success in college and in careers.  The program credits schools for improvement in test scores, attendance, graduation and college-going rates, and works to close the achievement gap between high needs students and their peers.  Ronn Nozoe, the Schools Deputy Superintendent, stated, "The Strive HI system really focuses on a continuum-of-improvement concept. No Child Left Behind was either ‘met' or ‘not met', that's it. It didn't give schools a whole lot of detail about what was working at their schools. Our system is built on multiple measures that allow us to have a very comprehensive and detailed look at a bunch of success factors that we believe are the most critical ones for student success, and measure them."

Under the Strive HI program, schools could earn a maximum score of 400 points.  Manoa Elementary topped the list with 387 points.

To see where a school ranked, go to: http://www.hawaiipublicschools.org/DOE%20Forms/StriveHIIndexReports/2013StriveHISchoolListFINAL.pdf

Source: Honolulu Star Advertiser, 8-20-2013, www.staradvertiser.com
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Kaiser Permanente's Moanalua Hospital Allows 24-Hour Visiting Hours

The Kaiser Permanente's Moana­lua Medical Center & Clinic has created a new policy allowing friends and family members to visit patients 24-hours per day. Previously, the hospital only allowed visitors from 11 AM to 8 PM, but new research has shown that access to friends and family increases recovery time significantly.  The hospital staff issued a press release that stated, "Research shows giving family members and close friends greater access to patients throughout the day helps speed up the recovery and increases satisfaction with the overall treatment process.  In addition, loved ones can provide important information to hospital staff when the patient is unable to communicate."

Kaiser spokeswoman, Laura Lott, added, "It's just kind of the evolution.  Every industry is kind of going more towards putting customers at the center of what they do. Our patients are our customers, so we need to understand what a good experience looks like from their point of view. That's going to deliver better care and make patients happier. If they're happier they're going to heal faster."

Patients will have a right to state who they want to have visiting them, when they can come by, and how many visitors they want.  Furthermore, doctors and nurses will have the authority to determine what is best for a patient and may limit visiting hours on a case by case basis.  Children will be required to accompanied by an adult when seeing a patient.

Source: Honolulu Star Advertiser, 8-20-2013, www.staradvertiser.com
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Higher Fuel Cost Mean High Electrical Rates

Hawaiian Electric Company (HECO) has announced that residential electric rates increased for the island of Oahu in August, mainly due to higher fuel costs. HECO burns low-sulfur fuel oil to produced most of its electrical needs in on Oahu.  As a result, Oahu residents paid 33.5 cents per kilowatt-hour in August as compared to the 32.5 cents per kilo-watt-hour charged in July.  The Maui Electric Company charged their customers 35.9 cents per kilowatt-hour.  Big Island of Hawaii residents paid 39.4 cents per kilowatt hour.  Kauai residents paid the most at 41.6 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 8-20-2013, www.staradvertiser.com
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Residents Complain About Odors from Nuuanu Cemetery

Several residents in Nuuanu have filed complaints against the Oahu Cemetery located at 2162 Nuuanu Avenue, for smells believed to come from its old cremation units.  The cemetery was established in 169, and its oldest crematory was actually built back in 1907.  One nearby resident, Ed Lee, stated, "Sometimes it's so powerful that they (other residents) need to leave their homes."  Lee also contends that some black soot and grey ash from the crematorium settles over his house. The Oahu Cemetery disputes that any soot or ash is coming from their crematories, but does acknowledge that they have proposed upgrading their system to eliminate the use of diesel fuel. The cemetery performs on average seven cremations per day or 2,000 annually.

Source: Honolulu Star Advertiser, 8-19-2013, www.staradvertiser.com
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First Wind Plans to Restart Kahuku Project

On August 1, 2012, a small fire destroyed a battery storage building forcing First Wind to close down its Kahuku wind energy facility and disconnect it from the Hawaiian Electric Company's power grid.  According to an investigation, the fire was caused by defective parts supplied by the Dynapower Corp.  First Wind has just announced that they will be restarting their wind energy project in Kahuku as soon as it finishes making repairs to their system.  This time, First Wind will be using a volt-amp reactive system made by American Superconductor, which should help regulate power fluctuations.  First Wind spokesman, John Lamontagne, stated, "We've been working hard to bring the project back online. We hope to begin testing late this month and ideally be back on line by the end of September or early October."

The project is designed to generate enough power to provide for 7,700 Oahu Households.

Source: Honolulu Star Advertiser, 8-18-2013, www.staradvertiser.com
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The Collection at 600 Ala Moana Sales Office Opens

Developer Alexander & Baldwin has announced that the sales office for The Collection at 600 Ala Moana, their latest condominium tower in Kakaako, has opened.  Units range in price from about $380,000 for a 1B/1BA to over $1 million for a 3B/2BA unit.  The entire complex will eventually have 467 residential units, split into a high rise tower with 397 units and 70 units in a town house and low rise section of the property.  At this point, only units in the main high rise tower are available.  The developer stated that there are currently 199 units being released for owner-occupant buyers.

The Collection will be built on the site of the former CompUSA store, which is bordered by South Street, Auahi Street, Keawe Street and Ala Moana Boulevard.  Actual construction is expected to begin in the middle of 2014 and should be completed by December 2016.

Source: Honolulu Star Advertiser, 8-17-2013, www.staradvertiser.com
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Unemployment Rate For Hawaii Drops to 4.5 Percent in July 2013

According to a report issued by the state's Department of Labor and Industrial Relations, the unemployment rate dropped to 4.5 percent in July 2013.  This is the lowest rate that the state of Hawaii has seen in almost five years.  Honolulu County had the lowest rate at 4.2 percent.  Maui County had a 4.9 percent unemployment rate. Kauai County had a 5.3 percent rate.  And Hawaii (Big Island of Hawaii) County had a 6.8 percent rate.  County data are not seasonally adjusted while the entire state's unemployment rate is seasonally adjusted.  Chief economist for the state, Eugene Tian, commented, "The labor market is looking pretty good.  We're seeing steady improvement with the unemployment rate declining and the job count increasing."

Source: Honolulu Star Advertiser, 8-16-2013, www.staradvertiser.com
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Federal Judges Discuss Appeal Against Honolulu Rail Project

Opponents of the Honolulu Rail Project have filed an appeal with the 9th U.S. Circuit Court of Appeals and are hoping that the three judges who sit on the panel would stop the project in its tracks.  However, during the initial oral arguments, two of the judges questioned if they even have the jurisdiction to make a final ruling in this issue. Observers noted that two of the judges seemed more concerned about the legal procedure and court process than the facts regarding the project itself.

Honolulutraffic.com filed its lawsuit in 2011 and stated that local and federal transit officials violated environmental and historic preservation laws in an effort to get the project approved quickly.  The lawsuit contends that the city did not research better ways to reduce the rail project's impact on the environment and cultural and historical sites.  Honolulutraffic.com argued that development of West Oahu was the main driving force behind the Rail Project and not the reduction of traffic.  Opponents of the Rail Project argue that creating designated vehicle lanes for express buses, car pools and emergency vehicles would reduce reduce traffic congestion more than rail and would also be significantly less expensive.

When Judge Wallace Tashima heard the case in the end of 2012, he ordered that the rail project be halted by the city until three areas of concern were addressed.  The first item required the city to conduct an archaeological survey of the entire route.  The second was to conduct a feasibility study of creating a tunnel under Beretania Street. The final item was to conduct an impact study of how the Rail Project would affect the area surrounding Mother Waldron Park in Kakaako.  Honolulutraffic.com announced that they would appeal the case in February 2013.

Source: Honolulu Star Advertiser, 8-16-2013, www.staradvertiser.com
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Hawaii Tourism Authority Lowers 2014 Visitor Estimates

The Hawaii Tourism Authority still expects a record number of visitors to the Hawaiian Islands in 2014, but has lowered their estimates slightly after it became evident that the Japanese tourism market is not performing as strongly as anticipated.  The HTA now predicts that there there will be approximately 8.753 million new arrivals in 2014, or a 3.2 percent increase from 2013's goal.  The hope is to increase visitor spending to $16.1 billion, or a 5.1 percent increase above 2013's goal.

Source: Honolulu Star Advertiser, 8-16-2013, www.staradvertiser.com
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Waikiki Hyatt Creates Position To Service Elite Members

The Hyatt Regency Waikiki Beach Resorts and Spa has hired James Kaikis to cater to their Diamond members, or those who stay at a Hyatt hotel at least 25 nights a year.  As the largest of Hyatt's 15 resorts in the United States, the Waikiki property realizes that over 20 percent of their guests are repeat visitors, and creating a VIP manager position for Kaikis would help to assure their most loyal customers are treated properly.  Kaikis stated, "On property I meet with about a dozen people a day. Unlike a concierge, who typically works shifts as a front-line employee, I'm a manager, so I'm really their private go-to person.  I have the coolest job in the world.  It's such a great feeling to be empowered to make people happy."

Room Director for the Hyatt Regency Waikiki Beach Resort and Spa, Mark Fenton, commented, "We are really trying to give guests a great customer experience so that they will come back and in turn promote their experience.  Creating customer loyalty through the program that has been our success, that's what we are using as our measurement. If the person comes back, that's a huge return on investment."

Source: Honolulu Star Advertiser, 8-14-2013, www.staradvertiser.com
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David Murdock to Plans Buy Out Outstanding Shares of Dole Foods

Billionaire David Murdock and his family currently owns 40 percent of Dole Food Company, the world's largest fresh fruit and vegetable producer.  Murdock had approached the other members of the board of directors with an offer in June to purchase all outstanding shares of the company for a total of $651 million, or $12 per share.  After much discussion, it was agreed upon that Murdock would be allowed to buy the remaining 60 percent for $733 million, or $13.50 per share.  Dole's board of directors stated that the agreed upon offer is "fair to and in the best interests of the company and the stockholders of the company other than Mr. Murdock."

A majority of the shareholders of Dole Foods would still need to approve the sale.  The company was established in Hawaii in 1901 as Hawaiian Pineapple Company.  Dole Foods still owns about 25,000 acres of land on Oahu.

Source: Honolulu Star Advertiser, 8-13-2013, www.staradvertiser.com
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Hotel Rates in Hawaii Second Highest in Nation

According to a report issued by Hospitality Advisors LLC, hotel rates in the state in Hawaii ranked second highest in the nation in terms of average daily rate (ADR) and revenue per available room (revPAR) behind only New York City.  For the month of June 2013, Hawaii's ADR was $225.34 and the state's revPAR was $169.91. President and CEO of Hospitality Advisors, Joseph Toy, stated, "New York typically leads the U.S. because it's a business center and a gateway tourism city.  Overall, Hawaii still has a strong market. It's just a little more moderated, but we expected that, based on the pent-up demand that drove the market in the first quarter.  We were surprised by the softness in some areas of the market, and we've seen some shortening of booking windows, which tends to proceed market weakening.  But if you look at where the hotel industry is now compared to three years ago, it's hard to imagine how far we have come. We've had an unprecedented rise in revenues not just for hotels, but for the overall visitor industry."

President and CEO of Outrigger Enterprises, David Carey, added, "The great strength has been Oahu.  The neighbor islands are doing OK, but the Big Island's performance has been disappointing.  Visitors finally are recognizing that Hawaii has a very high-quality hotel inventory.  We don't have a lot of budget product here."

Source: Honolulu Star Advertiser, 8-12-2013, www.staradvertiser.com
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9th Circuit Court of Appeals Will Hear Honolulu Rail Project Case in San Francisco

Three judges from the 9th Circuit Court of Appeals will hear arguments from supporters and opponents of the Honolulu Rail Project in a federal lawsuit which claims that the City of Honolulu and federal transit officials had violated environmental and historical preservation laws. In 2011, a lawsuit was filed that against city and federal transit officials stating that reasonable alternatives to the $5.26 billion rail project were not considered.  U.S. District Judge A. Wallace Tashima ruled last year in favor of the city on 54 out of the 57 points.  Judge Tashima's decision was appealed in February of this year.

Former Hawaii Governor Ben Cayetano, who is a member of Honolulutraffic.com that filed the original lawsuit, stated, "I believe the case will end at the 9th Circuit. Win or lose, I believe our group gave voice to a point of view shared by the majority of the people." Cayetano added that he doubts the U.S. Supreme Court would grant a hearing if either side filed an appeal because there is no constitutional issue involved.  Randy Roth, a University of Hawaii law professor, and a plaintiff in this lawsuit, added that, "I expect the 9th Circuit to order (the city) to restart the process for rail. If that happens, I'm confident that it will mark the end of the current project."

Executive Director for the Honolulu Authority of Rapid Transportation, Dan Grabauskas, stated, "We look forward to presenting our case and responding to any questions the judges may have.  It's important that we get the project moving again so that we can deliver an efficient transportation system on time and on budget for the people of Oahu."

Source: Honolulu Star Advertiser, 8-11-2013, www.staradvertiser.com
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Effects of Sequestration Mitigated by Strong Hawaii Economy

State economist Eugene Tian estimated that federal spending cuts from sequestration would cost the state of Hawaii about $462 million in direct loss, and a total of $684 million due to the ripple effect that the reduced federal spending would cause.  However, Tian noted that Hawaii's economy has rebounded enough over the past year to mitigate the effects of sequestration and still believes that the state'd gross domestic product (GDP) would increase by 2.4 percent in 2013.  This increase is due to a stronger construction industry and a booming visitor industry.  State budget director, Kalbert Young, added, "My interpretation, at the top macro-level, is that sequester is not going to be as significant as originally feared." However Young noted that "at the micro-level" there could be still be significant impact on certain individuals, businesses and nonprofit organizations.

Hawaii economists were especially worried by the effects of sequestration due to the large military presence in the islands.  According to Eugene Tian, the federal government accounts for approximately 15.3 percent of the state's economy and 13.7 percent of wage and salary jobs.  This equates to approximately $20.8 billion annually in the state, out of which $10.5 billion is from salary, wages and procurement contracts.  As a result, when sequestration cuts were announced, many economists were extremely worried about how this would effect the state as a whole.

Source: Honolulu Star Advertiser, 8-10-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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