Flat Rate Proposed for Taxis from Airport to Waikiki

The Honolulu City Council is discussing the creation of a flat rate that taxis would charge passengers when driving from the Honolulu International Airport to Waikiki.  According to the Council, hotels in Waikiki have been receiving numerous complaints from tourists about how much they are being charged by taxicab companies and would like to know up front how much the cost would be. Outrigger Enterprises executive, Max Sword, commented, "The point is, when the tourists get off a plane, they (will) know how much it costs to go to Waikiki. All we're saying is that we would like to see a cap so that when the tourists get off (the airplane), they know exactly how much they're going to be paying."

Currently, the maximum allowable metered rates for taxi companies are $3.50 for the first one-eighth of a mile and 45 cents for each additional one-eighth mile or 45 seconds of waiting, from $3.10 for the first one-eighth mile and 40 cents for each additional one-eighth mile or 45 seconds of waiting.  However, if there is heavy traffic, the fees could get quite high and many tourists feel that they are getting taken advantage of. City Councilman Stanley Chang, states that he supports the bill and added, "I think we can all relate to the convenience and certainty of having a flat rate when we travel around the world and not being concerned about getting ripped off or taken for a ride."  The City Council Budget Committee has already given their preliminary approval for Bill 54, but it will now go before the full City Council for their approval.

Source: Honolulu Star Advertiser, 9-30-2013, www.staradvertiser.com
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Neighbors Protest Second Tower for 801 South Street

A group of residents living in Royal Capital Plaza in Kakaako, are protesting the building of a second tower at 801 South Street. The Hawaii Community Development Authority, which is a state agency tasked with regulating the development of Kakaako, has already given approval for developer Downtown Capitol LLC to build the first tower at 801 South Street, but is still deciding if a second tower would be allowed.  Under the proposal, there will be 635-units in the first tower, and an additional 410-units built in the second tower. Tentatively units in the first tower will be priced between $250,000 for a studio to $550,000 for a two-bedroom.  The second tower would have one bedrooms starting at $360,000 to three bedrooms at around $690,000.

Source: Honolulu Star Advertiser, 9-29-2013, www.staradvertiser.com
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Visitor Arrivals Increase, Spending Flat in August 2013

According to a report issued by the Hawaii Tourism Authority, a total of 748,775 visitors came to Hawaii in August 2013.  This represented a 2.5 percent increase from the same month a year prior.  However, spending remained flat a $1.2 billion, the exact same amount as August 2012.  President and CEO for the Hawaii Tourism Authority, Mike McCartney, stated, "While the growth in August was not as robust as in previous months, it is important to note that due to continued efforts to increase distribution statewide, we have been successful in increasing total expenditures on the neighbor islands. As we come out of the peak summer travel season, visitor arrivals and spending for the year continue to surpass 2012. We anticipate seeing a slowing in arrivals and expenditures as we enter the fall shoulder season. We will continue to monitor the fluctuating fuel costs, strengthening of the dollar against international currencies and other economic conditions, which have been impacting visitor length of stay."

Outrigger Enterprises Group's Executive Vice President of Hospitality Services, Barry Wallace, commented, "The HTA report doesn't match our experiences in Waikiki. We looked a August as a very strong month, and we are hopeful that will continue.  I think this year is going to go into the record books as one of the good ones, and we have every reason to suspect that 2014 will be just as strong. In other markets if you had occupancy at these levels, you would build new hotels. Inventory is tight in Waikiki, and it's only going to get tighter when several hotels close for renovations. That may finally bring needed occupancy improvements to some neighbor island markets."

Source: Honolulu Star Advertiser, 9-27-2013, www.staradvertiser.com
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Aloha Kai Tower Approved By Zoning and Planning Committee

The Honolulu City Council's Zoning and Planning Committee has given their approval to build the Aloha Kai condominium tower on the site of the Atkinson Drive YMCA.  Previously, there was a height restriction of 150 feet and a limit of 120 units to be build on that site, but the Zoning and Planning Committee has given their approval for Aloha Kai to be 350 feet tall with 128 units.  The developer argued successfully that a taller building would allow for it to be slimmer and more aesthetically pleasing.

However, many neighbors are concerned about the increased traffic that Aloha Kai will create for an already busy Atkinson drive.  Furthermore, the taller tower will create a loss of view planes for units in the Sunset Tower and possibly for the Yacht Harbor Tower buildings.  Nearby residents are requesting that the City Council also obtain an independent traffic study, and not simply accept the one that was paid for by the developer, before final rezoning is approved.  The matter will be brought before the entire Honolulu City Council on October 9 for a final vote.

Source: Honolulu Star Advertiser, 9-27-2013, www.staradvertiser.com
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Federal Grant Will Help State Tackle Long-Term Unemployment

The state of Hawaii has received a $1.8 million federal grant from the Workforce Investment Act Dislocated Worker Program to help provide job training for those individuals who have been unemployed for 27 weeks or longer.  The grant would help by reimbursing Hawaii employers up to 90 percent of the wages that they pay workers while they hire and train them.  The Workforce Investment Act hopes to help those who may need to upgrade their job skills in order for them to get hired.

Executive Director of the Job Quest job fair, Beth Busch, thinks that this federal grant will provide some people with an excellent resource.  Busch stated, "We have a skills gap in which many of those who are unemployed don’t have the skills employers are looking for.  We just don’t have as broad a range of industries in Hawaii, which makes branching out and getting training even more important here. People need to open their minds. They need to know that some jobs are never coming back.”  For more information go to labor.hawaii.gov/wdd/onestop

Source: Honolulu Star Advertiser, 9-25-2013, www.staradvertiser.com
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CVS Decides to Open In-Store Clinics

CVS Caremark Corp. has announced that they will open "MinuteClinics" in seven of their Longs stores on Oahu. MinuteClinics will treat minor illnesses and provide preventative health services such as flu shots and tetanus shots, and will be staffed by nurse practitioners.  They will be open seven days a week and no appointment is necessary to see a nurse practitioner.  The Longs Drugs Store location that will have MinuteClinics will include Moiliili, Kahala, Aiea, Kapolei, Hawaii Kai, Kaneohe and Kailua.  The company stated, "Hawaii's Long's locations are an important milestone in MinuteClinic's national expansion plan to open 150 clinics nationwide in 2013."

Source: Honolulu Star Advertiser, 9-24-2013, www.staradvertiser.com
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Oahu Electrical Rates Decrease Slightly in September 2013

The Hawaiian Electric Company reported that residential electrical rates fell in the month of September thanks to a decline in fuel costs.  Oahu residents paid 32.3 cents per kilowatt-hour, which represents the lowest rate in over four months.  Maui Electric charged their clients 36.3 cents per kilowatt-hour.  Big Island of Hawaii residents paid 40.4 cents per kilowatt-hour and Kauai residents paid 42.3 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 9-21-2013, www.staradvertiser.com
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Hawaii's Unemployment Rate Falls to 4.3 Percent in August 2013

According to the state Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate fell to 4.3 percent in August 2013.  This marked the lowest level since July 2008, when the seasonally adjusted unemployment rate was 4.1 percent.  For August, Honolulu County had a 3.7 percent unemployment rate.  Maui County had a 4.5 percent rate.  Kauai County posted a 4.9 percent rate and Hawaii (Big Island) County had a 5.8 percent rate.  County data are not seasonally adjusted.  In comparison, the national unemployment rate in August was 7.3 percent.

Source: Honolulu Star Advertiser, 9-20-2013, www.staradvertiser.com
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Kamehameha Schools to Sell Two Kakaako Blocks for Luxury Condominium Development

Kamehameha Schools has announced that they will be selling two Kaka­ako blocks that they own to MK Development who will develop the properties into two luxury condominium towers.  MK Development is a joint venture of Koba­ya­shi Group and The MacNaughton Group, two developers with a long history of building properties in the islands.

The two blocks that are being sold are both located on Ala Moana Blvd.  The first is currently occupied by a Jaguar/Land Rover dealership and an Office Max.  The second block has a Cutter Mazda car dealership leasing the space. MK Development stated that they would like to build a luxury tower on each of the lots and estimates that there will be a total of 500 units split  between the two towers.  The Hawaii Community Development Authority would still have to give their approval of the projects.  MK Development estimates that sales would begin in the fall of 2015.

Source: Honolulu Star Advertiser, 9-19-2013, www.staradvertiser.com
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More Potential Employers Attend Job Quest Fair in Honolulu

A total of 176 employers attended the tri-annual Job Quest job fair at the Neil Blaisdell Center in Honolulu to interview prospective job seekers.  This was an increase from past events and included 16 companies that had never recruited at Job Quest before.  Executive Director for Job Quest, Beth Busch, commented, "Employers had been kind of holding back and waiting to really hire until they thought that the economy was going to get better and stay better.  I think people feel like it's really back, that we're really headed in the right direction and that it's not going to fall out from under us.  For a while the mentality on the job seeker's side was just ‘I need a job.' Now we're back to seeing people at the job fair who are comfortable enough in the economy that they can look for a better job."

Source: Honolulu Star Advertiser, 9-18-2013, www.staradvertiser.com
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Alexander & Baldwin Inc Purchase Pearl Highlands Center

Alexander & Baldwin Inc. has announced that they have just completed the purchase of Pearl Highlands Center for $141.5 million.  After purchasing the 415,000 sq ft shopping center, Alexander & Baldwin has become the second-largest retail landlord in the state.  The company's portfolio now has just over 2 million sq ft of retail space.  Earlier this year, Alexander & Baldwin purchased the Waianae Mall in West Oahu (170,000 sq ft) and the Napili Plaza Mall on Maui (46,000 sq ft). Those two purchases were $30 million and $19 million respectively.

Source: Honolulu Star Advertiser, 9-18-2013, www.staradvertiser.com
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Honolulu Rail Project Construction Resumes in Ewa

After being delayed over a year due a lawsuit that halted the project, construction is finally resuming for the $5.26 billion Honolulu Rail Project.  Large columns are being put into place in the Ewa fields, giving the Honolulu Authority for Rapid Transportation's chief executive Dan Grabauskas reason to smile.  Grabauskas stated, "To me that's the most beautiful sound in the world, the sound of that equipment starting up."  According to HART, the year long delay cost taxpayers between $30 million and $35 million.

Last year, the Honolulu Supreme Court halted all construction by the city until an archaeological survey was completed for the entire 20-mile route.  A few weeks ago, the State Historic Preservation Division signed off on the completed archaeological plans.  The Honolulu City Council then approved several permits that allowed construction to resume.  Opponents of the rail project are quick to point out that there is still a pending federal litigation, and if the federal appeals court sides with those who oppose the rail project, it could mean that the city would have to tear down the concrete columns that they are currently building.

Source: Honolulu Star Advertiser, 9-17-2013, www.staradvertiser.com
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Hotel Industry Strong in July 2013, But Rate of Growth is Slowing Down

According to a report issued by Hospitality Advisors LLC, Hawaii's average room rate increased by 11.8 percent in July 2013 from the same month a year prior to $241.63.  This increase helped the hotel industry to set a new record for most revenue earned and for the highest average daily room rate.  However, industry experts warn that the rate of growth is slowing down.  Starwood Hotels and Resort's Senior Vice President of Operations, Keith Vieira, stated, "I think we'll remain on a growth pace, but when your occupancy is running in the 90s percentage-wise it's unrealistic to see it keep rising. You have to grow your market through rate and that carries risk because of price point challenges."

Source: Honolulu Star Advertiser, 9-16-2013, www.staradvertiser.com
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Higher Taxes for $1 Million and Up Residential Properties

The Honolulu City Council has approved Bill 42 which has created a new tax classification for residential properties valued $1 million or more.  Currently, owners pay $3.50 for every $1,000 of assessed value.  The tentative plan would be to increase the tax amount to $4.50 for ever $1,000 of assessed values for non-owner occupant homes valued at more than $1 million.  This would generate an additional $10 million per year for the city of Honolulu.  Bill 42 will not affect owner occupants who have filed for homeowners exemption.

Source: Honolulu Star Advertiser, 9-15-2013, www.staradvertiser.com
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Koa Ridge Project Given Preliminary Approval

The Honolulu City Council's Planning Committee has given preliminary approval to rezone 576 acres of agricultural land in Waipio to create the new Koa Ridge development.  Developer Castle & Cooke plans to build 3,500 residential units as well as a commercial center, hospital, school, hotel and several other buildings.  A second phase, not part of this consideration, may be proposed at a later date.  The second phase would have an additional 1,500 homes. The proposal will now go before the full City Council for a vote.

Opponents of the Koa Ridge project are concerned about the reduction of agricultural land and about the traffic problems that a new development would create. Critics argue that the traffic report being submitted by the developer was conducted in 2009, and should be updated.

Source: Honolulu Star Advertiser, 9-14-2013, www.staradvertiser.com
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Air China to Offer Service from Beijing to Honolulu

Air China has announced that they will be starting to offer service from Beijing to Honolulu three times per week starting in January 2014.  This will be Air China's first route to the Hawaiian Islands.  President and CEO for the Hawaii Tourism Authority, Mike McCartney, stated, "We've been working on China as a developing new market. Increased air access has been a priority for us for a long time, and David Uchi­yama (HTA's vice president of brand management) is on his way there to follow up on this and other opportunities. In any developing market there's a lot of work to be done to create a strong, long-term relationship.  This is part of our long-term strategy to diversify departure cities in multiple major markets in Asia."

Source: Honolulu Star Advertiser, 9-13-2013, www.staradvertiser.com
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Construction To Resume for Honolulu Rail Project

The Honolulu City Council has given their approval to resume construction of the Honolulu Rail Project after more than a year of delays.  Permits have been issued for construction crews to erect concrete columns in East Kapolei, and the areas under the maintenance and storage facility in Waipahu will be regraded.  Executive Director for the Honolulu Authority for Rapid Transportation, Dan Grabauskas, stated that he is very happy about the City Council's approval.  Grabauskas had previously stated that the city is losing about $200,000 per day while construction has been halted.  In total, Grabauskas estimated that the city has lost between $30 million to $35 million since construction was halted in 2012.

Source: Honolulu Star Advertiser, 9-12-2013, www.staradvertiser.com
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Maui Real Estate Sales Data for August 2013

Source: Realtors Association of Maui

Single Family Home Sales for the Island of Maui:
August 2013 - 79 Houses Sold - $585,000 Median Price
August 2012 - 77 Houses Sold - $509,000 Median Price

Condominium Sales for the Island of Maui:
August 2013 - 113 Condos Sold - $420,000 Median Price
August 2012 - 98 Condos Sold - $342,450 Median Price

Source: Honolulu Star Advertiser, 9-11-2013, www.staradvertiser.com
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Higher Tax For $1 Million And Up Properties Proposed

The Honolulu City Council is a proposing to create a new tax classification for houses and condominiums valued at $1 million or more.  Under this proposal, the city would be allowed to tax them these owners at a higher rate than other residential properties.  However, under Bill 42, those residents who are occupying the property as their primary residence and who have filed for home exemption would not have to pay any extra taxes.  Mayor Kirk Caldwell has stated that he supports the bill if it is passed by the Honolulu City Council.

Source: Honolulu Star Advertiser, 9-11-2013, www.staradvertiser.com
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Billionaire Genshiro Kawamoto Sells 27 Homes on Kahala Avenue to Alexander & Baldwin

Japanese Billionaire Genshiro Kawamoto has sold a total of 27 homes on Kahala Avenue and four other parcels of land on Windward Oahu and on Maui to local developer Alexander & Baldwin for a total of $98 million bulk sale.  According to property tax records, Kawamoto purchased the Kahala houses for a total of $177 million between 2003 and 2011.  In 2006, Kawamoto created what he called the "Kahala Avenue Mission" and rented out nine homes to nine Native Hawaiian families for $150 to $200 per month. When this lead to complaints about housing discrimination, Kawamoto decided to provide rent for Hawaiian families for free in 2007.  Kawamoto then transformed several of the other properties into art and garden museums, and demolished several more houses for no apparent reason.  This significantly frustrated his Kahala neighbors who felt that Kawamoto's actions were depreciating the value of their properties.  Kawamoto was arrested in Japan in March 2013 for suspected tax evasion.  According to prosecutors, Kawamoto's Marugen company evaded paying about $9 million in corporate taxes.

Alexander & Baldwin has stated that they plan to clean up and refurbish the houses and vacant lots, and will be reselling the parcels to interested buyers.  For tax purposes, the city values the 27 properties at $118 million.

Source: Honolulu Star Advertiser, 9-11-2013, www.staradvertiser.com
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The Collection Project Being Challenged By Neighboring Building Residents

The Hawaii Community Development Authority, a state agency responsible for the redevelopment of the Kakaako Neighborhood, has given developer Alexander & Baldwin approval to build The Collection high-rise condominium on the site of the former CompUSA store on Ala Moana Blvd.  However, residents and owners in the neighboring One Waterfront Towers have filed a lawsuit against The Collection and HCDA and are stating that the land is reserved primarily for commercial use and a new tower should not be allowed. Alexander & Baldwin's senior vice president, Rick Stack, commented the One Waterfront residents are misinterpreting HCDA rules or are citing rules that do not apply.  Stack stated, "We believe our project and the minor variances approved by the HCDA board comply completely with the applicable HCDA rules and regulations."  The HDCA spokesperson stated that they will not make any comments on the lawsuit until their legal council has had an opportunity to review it.

Source: Honolulu Star Advertiser, 9-10-2013, www.staradvertiser.com
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Honolulu Rail Project May Resume Shortly

The Honolulu Authority or Rapid Transportation (HART) has received some excellent news from the Honolulu City Council's Zoning and Planning Committee and the Intergovernmental Relations and Human Services Committee to proceed once again with with the construction of the $5.26 billion rail project.  The Honolulu City Council is still required to give final approval for to allow work to commence, but HART is optimistic that this would occur within the next week.

According to the Executive Director for the Honolulu Authority for Rapid Transportation, Daniel Grabauskas, the city loses approximately $200,000 each day that project construction is halted.  The project was placed on hold on August 27, 2012 when the Hawaii Supreme Court ruled that the project needed to complete certain procedural steps, including creating an archaeological survey of the entire route, before they could continue.  The State Historic Preservation Division gave their approval of HART's archaeological reports on August 30, 2013.  Grabauskas estimates that this delay has cost the city somewhere between $30 million and $35 million, not including the $3 million or so in attorney fees.

Opponents of the rail project point out that there is still a major lawsuit against the project which is currently being presented to the 9th U.S. Circuit Court of Appeals.  These opponents caution the City Council that they should wait until after a final verdict has been made before granting or denying the Honolulu Authority for Rapid Transportation to resume work.

Source: Honolulu Star Advertiser, 9-10-2013, www.staradvertiser.com
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Koa Ridge Project Being Reviewed By Zoning and Planning Committee

The Honolulu City Council's Zoning and Planning Committee will be meeting to discuss the Koa Ridge Project, which is being proposed by developer Castle & Cooke Homes.  The large residential project has asked to rezone 576 acres of agricultural land in Waipio, just north of Ka Uka Boulevard.  If approved, Castle & Cooke hopes to build 3,500 residential homes, a new medical facility, a commercial center, an elementary school, several parks and a small business hotel.  As part of the proposal, the Koa Ridge Project will spend $100 million in traffic improvements for the neighborhood, including build a new H-2 freeway interchange at Pineapple Road.

The project has been heavily criticized by the Sierra Club Oahu Group and other organizations who feel that this would destroy one fertile agricultural land.  There is also concern about traffic that the Koa Ridge development would cause in the neighborhood.

Source: Honolulu Star Advertiser, 9-10-2013, www.staradvertiser.com
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University of Hawaii Enrollment Down

Enrollment across the University of Hawaii's 10-campus system was down by 2.2 percent this fall to a total of 59,288 students.  The only campuses to see a slight increase were the UH-West Oahu campus, and the Windward, Leeward and Kauai community colleges.  The decrease is being attributed in part to a stronger economy in Hawaii.  Executive Vice President for Academic Affairs, Linda Johnsrud, stated, "Enrollment in higher education typically runs counter to economic growth.  Students often leave college when the economy provides more jobs. This is particularly true of the community college students."

Source: Honolulu Star Advertiser, 9-10-2013, www.staradvertiser.com
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Bill Would Make Lying Down on Honolulu's Public Sidewalks Against the Law

Honolulu City Councilman Stanley Chang is proposing Bill 59, which would make it against the law to lie down on a public sidewalk, except in certain circumstances.  According to Chang, lying down on a public sidewalk creates a safety concern by impeding pedestrians' movements.  Under the bill, someone with a medical condition or in an emergency would be allowed to lie on the sidewalk, as would "expressive activity" such as a protest or a street performance.  The fine for a violation would be $50.  Chang did add that the bill is not targeted at the homeless, but stated, "Our aim with this measure is to ensure that our public sidewalks are kept free and clear for all members of the public to pass.  We're certainly not trying to target any individual group of people.  There may be some homeless people who are obstructing sidewalks. There may be not-homeless people who are obstructing sidewalks. The main aim of this measure is to ensure the safety of the sidewalks for public transportation."

Honolulu Mayor Kirk Caldwell commented that he supports any new legislation "that makes sure our sidewalks are open to everyone."  Caldwell added that he will wait until city attorneys have had a chance to review the language of Bill 59 before he gives his official support.  The ACLU Hawaii Chapter stated that they will also wait until they have had a chance to review the bill before making and comments.

Source: Honolulu Star Advertiser, 9-9-2013, www.staradvertiser.com
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Oahu Real Estate Sales Data for August 2013

Source: Honolulu Board of Realtors

Single Family Home Sales for the Island of Oahu
August 2013 - 366 Houses Sold - $665,000 Median Price
August 2012 - 293 Houses SOld - $609,000 Median Price

Condominium Sales for the Island of Oahu
August 2013 - 460 Condos Sold - $350,000 Median Price
August 2012 - 407 Condos Sold - $320,000 Median Price

Source: Honolulu Star Advertiser, 9-9-2013, www.staradvertiser.com
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DFS Group Renames Waikiki Retail Center to T-Galleria

The DFS Group is a Hong Kong Based company which has become synonymous with duty-free shopping and sale of luxury items.  Over the past few years, the company has spent more than $50 million upgrading its Waikiki retail center and during a recent unveiling, the company has decided to rename its Waikiki property to T-Galleria.  Chairman and CEO for the DFS Group, Philippe Schaus, stated that the "T" in T-Galleria stands for "travelers".  Schaus added, "Choosing a one-letter brand name is very bold and yet easy to remember and identify.  Really, we're just naming what we've become. Our objective is to be the world traveler's preferred destination for luxury.  We are among the best department stores in the world, but we are completely obsessed by the notion of travel and the customer as he is traveling. Most department stores come from serving the local market with the widest variety, but we come from serving the traveler. It's a different point of departure."

David Charles, the Pacific region president of DFS Hawaii, added that part of the reason why his company is pouring so much money and resources into the Waikiki retail center was due to the growing visitor markets from China, Korea, Taiwan and Latin America.  Charles stated, "Shopping is one of the most important activities for Chinese consumers when they travel overseas.  Accessibility to shopping is a key determinant to Chinese travelers in electing a destination."  Charles noted that the T-Galleria will also offer a concierge and a lounge service for their top customers.

Mark Bratton, the Vice President of Colliers International, a commercial real estate firm, commented, "We appreciate major companies spending money and bringing more customers to Waikiki.  Many big companies are after international shoppers, but it's rare to see one actually get involved in creating visitor demand. It's a unique and pioneering strategy that I think will work for them and in general will benefit Waikiki."

Source: Honolulu Star Advertiser, 9-8-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Hawaii Kai Marina Dredging Project Stalled Due to Possible Illegal Dumping

The Hawaii Kai Marina Community Association has hired American Marine to oversee a $5 million dredging project to remove sludge from its marina, whose waters are very low in some areas making it dangerous for boaters.  American Marine in turn subcontracted SER Silva Equipment Rental to dispose of the sludge.  However, when a Silva dump truck overturned on the H-1 freeway on its way to the Waianae Coastline, City Councilwoman Kymberly Pine, who represents Waianae, became suspicious of illegal dumping and demanded that the Hawaii Kai Marina Community Association takes back all of its sludge.  Pine stated, "I will make sure that I do everything in my power, including exploring all legislative options, to stop this private marina from dumping its sludge in our community and ensure that this unchecked dumping never happens again."

State Senator Maile Shimabukuro, who also represents Waianae, added that homestead residents reported that the SER Silva trucks were illegally dumping material in the Waianae Valley.  Shimabukuro contacted the city's Department of Planning and Permitting, who sent an inspector.  The inspector issued a notice of violation against SER Silva Equipment Rental to stop work immediately.  Waianae residents are concerned that they do not know what is in the sludge and that it could end up contaminating its beaches and bays.  The Waianae residents are especially upset that the Hawaii Kai Marina Community Association is claiming ignorance of the matter.  The Hawaii Kai Marina Community Association President stated that that it is not their responsibility as to where the sludge ends up, but rather the fault of American Marine and SER Silva Equipment Rental.

Source: Honolulu Star Advertiser, 9-7-2013, www.staradvertiser.com
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Kauai Real Estate Sales Data for August 2013

Source: Hawaii Information Services

Single Family Home Sales for the Island of Kauai
August 2013 - 37 Houses Sold - $685,000 Median Price
August 2012 - 25 Houses Sold - $460,000 Median Price

Condominium Sales for the Island of Kauai
August 2013 - 27 Condos Sold - $274,000 Median Price
August 2012 - 35 Condos Sold - $242,000 Median Price

Source: Honolulu Star Advertiser, 9-6-2013, www.staradvertiser.com
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Big Island of Hawaii Real Estate Sales Data for August 2013

Source: Hawaii Information Services

Single Family Home Sales for the Big Island of Hawaii
August 2013 - 174 Houses Sold - $320,000 Median Price
August 2012 - 147 Houses Sold - $270,000 Median Price

Condominium Sales for the Big Island of Hawaii
August 2013 - 61 Condos Sold - $280,000 Median Price
August 2012 - 53 Condos Sold - $225,000 Median Price

Source: Honolulu Star Advertiser, 9-6-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Maui's Economy Rebounding Thanks to Improvements in Tourism

Respected Hawaii economist Jack Suyderhoud believes that Maui's economy is beginning to rebound thanks to improvements in their visitor industry.  At a recent business forum on Maui, Suyderhoud, who is a professor of business economics at the University of Hawaii, stated, "Slowly these benefits have spread from the tourism sector to other parts of the economy, including commercial construction, retailing, real estate and, most importantly, jobs.  Maui's tourism boom will slow down, but its continued strength will support the rest of the economy.  Certainly challenges remain in the residential construction sector, but infrastructure and commercial construction are leading the way. The business outlook for Maui is positive in the next year."

According to Suyderhond, Maui has already received 1.2 million visitors during the first six months of 2013.  This is an increase of 4 percent from the year prior.  More importantly, these visitors spent $1.9 billion during that time, which was a 12 percent increase from the first six months of 2012.  Suyderhoud cautions that Maui still has a way to go, and noted that during this past economic downturn about 9,000 jobs were lost.  By best estimates, about 5,000 of those jobs have been regained in the past few years.  Suyderhoud summarized, "While this is very good news, it is worth noting that Maui is still 4,000 jobs below the prior peak and the unemployment rate is still well above the 3 percent rate before the Great Recession."

Source: Honolulu Star Advertiser, 9-6-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Honolulu Rail Project Needs $27.1 Million for Safety Gates at Rail Stations

Board members of the Honolulu Authority for Rapid Transportation are seeking approval to spend an additional $27.1 million to added safety gates at the 21 stations along the route.  These gates were not initially budgeted into the elevated rail system, but would help to prevent passengers from falling onto the tracks.  Executive Director for HART, Dan Grabauskas, stated, "It was intended to be that there would be platform screen gates or at least the possibility of it, but no one ever budgeted for it and I don’t know why. But it’s the right thing to do.”

The rail project has a contingency fund of $658 million which would cover this expense if approved.  However, critics of the rail project warn that another costly budget oversight that has not been addressed is a lack of a power-failure backup system which would allow the driver-less trains to return to the nearest station in the event of a power outage.

Source: Honolulu Star Advertiser, 9-5-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Bankruptcy Cases Decrease By 19 Percent in August 2013

According to the U.S. Bankruptcy Court, the number of bankruptcies filed in August 2013 decreased by 19 percent as compared to the same month a year prior.  The report stated that there were just 168 bankruptcies filed in August, a decrease from 208 filed in August 2012. Oahu had a total of 111 filings, Maui County had 33, Hawaii (Big Island) County had 14 cases, and Kauai County had 10 cases.  Experts note that the decline in the number of bankruptcy cases is a direct result on the improving job market and the reduction of consumer debt loads.

Source: Honolulu Star Advertiser, 9-4-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Payments to Department of Hawaiian Home Lands to End in One Year

In 1993, a federal judge required that the state of Hawaii pay the Department of Hawaiian Home Lands a total of $600 million, or $30 million each year for 20 years, to settle breach-of-trust claims made against the state from 1959 to 1988.  Over the last 19 years, the state of Hawaii made their $30 million payments each year to the DHHL. With just one year remaining until the state's obligation has been fulfilled  the Department of Hawaiian Home Lands is scrambling to find a way to replace that $30 million income, which represents nearly 40 percent of their overall budget.  If they are unable to find replacement income, the DHHL would have to make significant adjustments to their infrastructure to handle the shortfall.

According to state officials, the $30 million given by the state to the Department of Hawaiian Home Lands was the primary funding source for a department trust fund devoted to homestead development, infrastructure improvements, and repair and maintenance at existing subdivisions. When asked by state legislative representatives as to what they will do when the settlement runs out, Department of Hawaiian Home Land officials have just given vague responses  that they will "improve DHHL operations," "increase performance of DHHL's financial assets," "encourage renovations/re investments in leased properties to increase revenue," "control costs," and "enhance revenue sources".

State Senator Clayton Hee, who is the vice chairman of the State Committee on Hawaiian Affairs, stated, "They don’t have an answer.  That’s the problem.  If people think the wheels are coming off the Department of Hawaiian Home Lands presently, there will be no wheels in 2015 because there will be no vehicle."

Source: Honolulu Star Advertiser, 9-3-2013, www.staradvertiser.com
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Kaiser Unveils New Pearlridge Center Clinic

Kaiser Permanente Hawaii will be opening a new $12 million clinic at Pearlridge Center in Aiea on October 4, 2013.  The clinic will be approximately 7,000 sq ft large and will offer family medicine and pediatrics, as well as a pharmacy and laboratory services.  The property is located on 98-1005 Moanalua Road and would have about a dozen full-time employees there initially. A Kaiser spokesperson added that the long term goal would be to expand the clinic to 12,000 sq ft.

Source: Honolulu Star Advertiser, 9-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Maui Beaches Eroding Faster Than Other Islands

According to a study conducted by the University of Hawaii and the state Department of Land and Natural Resources. Maui's beaches are eroding much faster than those found on the other islands.  The study points towards a rise in sea levels as the primary factor for erosion, and noted that in the past century, approximately 78 percent of Maui's beaches eroded, with an average overall shoreline change of 5 inches of erosion per year. In comparison, during the past century, only 52 percent of Oahu's beaches eroded with an average overall shoreline change of 1.2 inches of erosion per year. Sam Lemmo, administrator of the state Office of Conservation and Coastal Lands, stated, "The research being conducted by SOEST provides us with an opportunity to anticipate (sea level rise) effects of coastal areas, including Hawaii's world-famous beaches, coastal communities and infrastructure.  We hope this information will inform long-range planning decisions and allow for the development of (sea level rise) adaptation plans."

Source: Honolulu Star Advertiser, 9-2-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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