Number of Visitors Increase by 0.1 Percent In January 2014

According to a report issued by the Hawaii Tourism Authority, the number of visitors to Hawaii increased by just 0.1 percent in January 2014 as compared to the same month a year prior. This equates to 682,634 visitors.  However, spending decreased by 4.7 percent to $1.37 billion, causing the industry some concern. Mike McCartney, the President and CEO of the Hawaii Tourism Authority, stated, "Hawaii's tourism economy is starting to plateau following two years of record-breaking growth. We anticipate seeing this trend continue into the first and second quarters of 2014."

Executive vice president of Outrigger Enterprises Group, Barry Wallace, believes that Hawaii hotels need to work harder to stimulate more travel to Hawaii by offering competitive rates and value-added incentives like free breakfasts or extra room nights.  Wallace commented, "Airlift is up and occupancy is down. We need to help airlines fill their planes so that they don't cut seats or routes.  We're hopeful that the pickup that we are seeing for summer will continue into the second half of the year. Even if conditions improve, I doubt that we'll surpass 2014. However, we'll probably come in close, and that's not such a bad thing."

Source: Honolulu Star Advertiser, 2-28-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Update on the Second Ritz-Carlton Tower in Waikiki

Developer PACREP 2 LLC is requesting the rights to build a second hotel-condominium at 2139 Kuhio Avenue, next to the existing Ritz-Carlton project that is currently being built.  Under the current Waikiki Special Design District plans, the maximum height restriction for the building would be 300 feet.  However, PACREP is requesting a variance from the Honolulu City Council to increase the height to 350 feet.  The proposal is to build a 39-story story that would reach 350 feet in height and have a total of 280 units in it.  An architect employed by PACREP stated that by raising the height limit, the developer would be able to create a sleeker design that would help to minimize the visual impact on neighboring buildings.  In addition, having a slimmer building would provide additional space between the new tower and the first Ritz-Carlton tower.

Some community members are still very unhappy with even the concept of the second tower regardless of its possible height, and argue that any new structure would mean the loss of view planes and open spaces, as well as increased traffic and parking problems.  Opponents of the project are also demanding to find out how the developer is dealing with various Hawaiian cultural issues and are accusing the developer for making them believe that there was only going to be one tower when the project was originally proposed.  Casey Federman, a principal of PACREP, stated that the developer was first focused on building the first tower and then decided to build the second tower after the first was deemed to be successful.  Federman argues that the developer never misled the public in any stage of the project.

Source: Honolulu Star Advertiser, 2-28-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Tentative Agreement to Increase Minimum Wage to $10 Per Hour

The state Finance Committee has approved a bill that would increase the minimum wage in Hawaii to $10 per hour by January 2018.  The tip credit, which is the amount that a business can deduct from the minimum wage for those workers who earn tips, would be expanded from its current amount of 25 cents to $1 per hour over the next three years.  However, in this approved bill, the state Finance Committee has added a "poverty threshold" term, which is designed to protect low-income workers.  Under the "poverty threshold" business will not be able to deduct the tip credit from workers who earn less than 250 percent of the poverty level, or approximately $33,500 per year.  Sylvia Luke, the chairwoman of the House Finance Committee, stated, "We want to make sure we never have a situation where people are making under the minimum wage."

Source: Honolulu Star Advertiser, 2-28-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

400 Keawe Introduction - Collaboration Between Castle & Cooke and Kamehameha Schools

Kamehameha Schools introduced their new plan to collaborate with Castle & Cooke Homes Hawaii Inc, to build two mid-rise buildings in Kakaako.  The project, called 400 Keawe, will feature a 95-unit condominium mid-rise that will be built by Castle & Cooke, and an 88 unit rental apartment mid-rise to be built by Kamehameha Schools.  An existing office building in the block will also be converted for retail use.  It is estimated the 400 Keawe project will cost $60 million to build.

The Castle & Cooke section will feature one to three bedroom units with between 670 sq ft to 1,400 sq ft in size. Tentatively, the prices will range from $400,000 Fee Simple to $700,000 Fee Simple.  Out of the 95 units, a total of 20 units will qualify as moderate-priced housing under the rules created by the Hawaii Community Development Authority. There will also be approximately 10,000 sq ft of retail space on the first level of this building.  Executive vice president for Castle & Cooke, Bruce Barrett, commented, "Our Kaka‘ako is a growing, vibrant community, and 400 Keawe will be an integral part of the entire master plan."

The apartments being created by Kamehameha Schools will be rented out to middle-income tenants and will feature various sizes of units ranging from studios to three-bedrooms. There will be income limits imposed on renters, ranging from approximately $52,000 for a single person to $84,000 for a family of four.  Rents will range from $1,100 to $1,700. If approved by the HCDA, construction for both buildings will begin by the end of 2014 and will be completed by early 2016.  There will be several public hearings on the two buildings where residents and the community can voice their opinions.

Source: Honolulu Star Advertiser, 2-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hawaiian Airlines Decides to Suspend Daily Service to Fukuoka, Japan

Hawaiian Airlines has announced that they will be suspending their daily service to Fukuoka, Japan due to low demand.  According to a report issued by the U.S. Department of Transportation, just 53 percent of the seats on this flight were filled through the first seven months of 2013.  More recent data has not been made available yet, but President and CEO for Hawaiian Airlines, Mark Dunkerley, stated, "Unfortunately, despite two years of effort, we have not seen sufficient passenger growth to justify continuing the service."

Vice president of brand management for the Hawaii Tourism Authority, David Uchimaya, commented, "We're disappointed to see the reduction of Hawaiian service from Fukuoka but we've pointed out in the past we're going to expect to see overall adjustments (from airlines) in seat inventory."  The HTA estimates that this route brought in 96,360 air seats per year, and generate approximately $156 million in visitor spending and $17 million in tax revenue per year.  With Hawaiian Airlines ending this service, Delta Airlines will be the only carrier that will offer nonstop daily service to Fukuoka.  According to the Department of Transportation, Delta has an occupancy rate of about 67 percent of their seats for this route.

Source: Honolulu Star Advertiser, 2-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Counties Want State to Lift Cap on Their Share of Hotel Room Taxes

In 2011, the State of Hawaii government passed a bill that capped each counties' share of the hotel-room tax revenue at $93 million a year to help balance the state budget.  In 2013, the state decided to make the cap permanent.  However, county officials are now trying to change the law to remove the cap and give the counties 44.8 percent of the hotel room tax that they collect annual.  This would be broken down further and would give Honolulu 41.1 percent of this share, Maui County 22.8 percent, Hawaii (Big Island) County 18.6 percent and Kauai County 14.5 percent.

Honolulu Mayor Kirk Caldwell and Maui County Mayor Alan Ara­kawa stated that the counties pick up a significant portion of the costs of tourism, such as parks, roads and public safety, and therefore they should enjoy a greater share of hotel room tax revenue.  Mayor Caldwell stated, "So we're really looking for help here. As mayor, I have not been afraid to go and propose fees and increases in taxes where necessary to provide the services that everyone demands and needs. And so we're here today to ask for some help to make sure that we keep ourselves on the front edge of tourism in the world."  Mayor Arakawa  added, "The counties need to be made whole. It's a fairness issue."

State Representative James Tokioka argued that the state lawmakers are frustrated with some of the county policy choices while the state government was making budget cuts during the recession.  Tokioka stated, "You know how frustrating it is for us sitting over here that our friends and our cousins from the counties are doing these things while we're furloughing teachers and cutting ag inspectors and all of these positions. So that's the kind of thing that is very frustrating when we sit in this seat."

Source: Honolulu Star Advertiser, 2-26-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Update on Kamehameha School's Plan for Kakaako

Kamehameha Schools has announced that they will be working with local developer Castle & Cooke Homes Hawaii Inc. to build a new mid-rise building on the block on the east side of One Waterfront Towers. Under the proposed plan, Castle & Cooke will develop a total of 183 condominium and apartment rentals along with some commercial space on that parcel. The current tenants, which include Alu Like, Ka Ulu-koa, J's BBQ and Hawaiian Beauty Products Ltd. have already received notices that they may have to relocate soon for this development.

The master plan of Kamehameha Schools calls for the complete redevelopment of nine blocks within Kakaako.  When completed, there will be a total of 2,750 new housing units and 300,000 sq ft of new commercial space.  The Collection, a 470 unit condominium tower complex, has already been approved for development, as has a retail complex called SALT.  Kamehameha Schools is also seeking permission to build a 209-unit mid-rise apartment building next to a 40-story condominium and mid-rise tower building called Keauhou Lane.  This project is currently being considered by the Hawaii Community Development Authority.

Source: Honolulu Star Advertiser, 2-25-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Walmart to Hire 150 Employees for New Downtown Honolulu Store

Walmart has announced that they will be hiring a total of 150 employees for their new downtown Honolulu store, which is scheduled to open sometime this summer.  According to their hiring statement, most of the employees will begin working and training in April, in order to prepare for the grand opening.  The new Warlmart will be located at Fort Street Mall, in the site which the downtown Macy's had previously occupied.  Victor Lim, the chairman of the Fort Street Mall Business Improvement District, stated, "We are very excited about Walmart entering our downtown Honolulu. We at Fort Street Mall Business Improvement District firmly believe that positive business activities and customers in the area brings energy and vitality to our downtown."

Any interested applicants may apply online at careers.walmart.com

Source: Honolulu Star Advertiser, 2-25-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Larry Ellison Purchases Another Two Dozen Homes and Properties on Lanai

On June 2012, billionaire Larry Ellison purchased nearly 98 percent of the island of Lanai for approximately $300 million.  Since then, Ellison has been buying even more real estate on Lanai.  According to recent property records, two of Ellison's companies have purchase another two dozen homes and lots for a total of $40 million. Many of these additional purchases have been luxury vacation homes and condominiums, though some of them have been old plantation houses.  Some speculate that Ellison decided to purchase the additional properties as housing for the consultants and employees that he has been bringing in to improve and diversify the island's economy.  It is believed that Ellison may decide to build a third resort on the island, as well as a second airport runway, commercial agriculture, a tennis academy, a film studio and a research institute.  Still, Ellison has been rather selective of which properties he is buying on the island.  Over the last two years, Ellison has purchased only approximately 20 percent of the available listings.

Source: Honolulu Star Advertiser, 2-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Island Air To Cancel Service to Molokai

Island Air has announced that they will be discontinuing service to Molokai after April 1, 2014. The company, which was close to bankruptcy when it was purchased on February 26, 2013 by billionaire Larry Ellison, still appears to have some financial challenges, and they plan to streamline their operation.  David Uchiyama, the vice president of brand management for the Hawaii Tourism Authority, commented, "I understand that Island Air is going through a redevelopment plan of their product.  I thought we were going to see some growth from them going forward, and I'm sure we still will. I have not talked with them recently and will be trying to connect with them so we can get updated on their plans. I'm sure they are building a strategy in the market. They are making substantial investment, most recently in the lounge at the airport. I think there's still more to come. We just need to wait and be patient. There's a big picture why he (Larry Ellison) is making those investments."

Hawaiian Airline has announced that they will be creating a new subsidiary called Ohana by Hawaiian.  Ohana has announced that they will be offering service from Molokai to Oahu starting on March 11.  Ohana will use the 48 seat ATR-42 airplane and will offer three flights per day to Molokai.  However, Ohana will not offer any cargo service, something that Island Air did.

Source: Honolulu Star Advertiser, 2-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Update on Artspace's Low-Income Apartment Rental in Kakaako

Artspace, a nonprofit development company, is still hoping to build a rental apartment complex for low-income artists in Kakaako, but have asked for and have been granted additional time to obtain financing and a land lease. The Hawaii Community Development Authority has agreed to give Artspace another 12 months to secure financing for their project.

The proposed project is to build 80 lofts for artists to work and live in on a 30,000 sq ft lot located on Waimanu Street.  The proposed nine-story building will be constructed just makai (on the ocean side) of the Pacific Honolulu condominium tower.  The rental units would be reserved artists who are making a maximum of 50 to 60 percent of Hawaii's medium income.  Artspace estimates that rents would range from $437 a month for a one-bedroom unit to $1,334 a month for a three-bedroom unit.  There will also be a space in in the building to display artists work and a large room available to nonprofits and community groups.  Artspace has built more than 30 similar projects in 14 different states.

Source: Honolulu Star Advertiser, 2-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Electrical Rates to Increase for February 2014

The Hawaiian Electric Co. announced that residential electrical rates will increase to 34.7 cents per kilowatt-hour for the island of Oahu in February 2014.  This is a 1 cent increase from the 33.7 cents per kilowatt-hour that HECO charged a month prior.  According to officials of the company, the increase is mainly due to the fact that one of the main coal-fired plants located in the Campbell Industrial Park was taken offline for maintenance. Electrical rates should decrease once this plant is back in operation.

In comparison, Maui Electric Co charged their customers 37.2 cents per kilowatt-hour.  The Kauai Island Utility Cooperative charged 42.3 cents per kilowatt hour and Big Island of Hawaii residents paid 40.6 cents per kilowatt-hour.  The national average, as stated by the U.S. Energy Information Administration, was 12.1 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 2-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Construction Industry Forecast to Have Strong 2014 and 2015

The state Department of Business, Economic Development and Tourism has predicted that the construction industry in Hawaii will create an additional 5,000 jobs over the next two years. Overall, DBEDT predicts a 12.4 percent increase in construction spending in 2014 and a 8.3 percent increase in construction spending for 2015. The construction industry was one of the hardest hit by the 2008-2009 recession and has taken a long time to turn around.  Since 2012, the island of Oahu has already begun to see some progress, but the neighbor islands have not seen much demand.  Oahu will get an additional boost in the coming years thanks the the Honolulu Rail Project and the redevelopment of the Kakaako neighborhood.  John White, the executive director of Pacific Resource Partnership, stated that the construction industry is ready to build homes to help solve the anticipated housing shortage in Hawaii.  White commented, "If we don't build these homes, more and more residents will be forced to leave Hawaii because they cannot access housing they can afford. We're grateful for the opportunity to get our members back to work, but we're mindful that we must grow in a balanced way, to build housing and create jobs, but protect the open spaces and places in Hawaii that are important to all of us."

Source: Honolulu Star Advertiser, 2-21-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Honolulu Mayor Proposes $10 a Month Trash Pickup Fee

Honolulu Mayor Kirk Caldwell has proposed a new bill that would charge every single family home owner on Oahu $10 a month for trash pickup.  For condominiums, townhouses, businesses and nonprofits that have dumpster pickups, they would be charged an additional $314 per month per 3-cubic-yard dumpster.  Bill 9 has passed its first reading by Honolulu City Council members and will now be sent to the city Budget Committee for further review. Caldwell stated that the bill's minimal fee would raise as much as $21 million per year for the city. Caldwell also noted that the trash pickup service costs Honolulu approximately $100 million per year.  City Councilwoman Kymberly Pine, who supported the bill with reservations, noted that the new fee will be especially hard for disadvantaged families who are already burdened by a high sewer fee.

Source: Honolulu Star Advertiser, 2-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

State Minimum Wage Bill Gains Support, Debate on Tip Credit

State of Hawaii House and Senate leaders have reached a tentative agreement to raise the minimum wage to $10 per hour by January 2018.  Currently the state's minimum wage is $7.25 per hour, and under the proposed bill, there will be gradual increases over the next four years. However, Senator Clayton Hee, the chairman of the Senate Judiciary and Labor Committee, stated that he would like to debate the tip credit amount before moving the bill forward.  Tip credit is the amount that a business can deduct from the minimum wage for waiters and other workers who earn tips.  Currently, Hawaii has a 25 cent tip credit and this new bill would increase tip credit to 75 cents.  Senator Hee stated that he would like to eliminate the tip credit entirely, while several other senators and congressmen have stated that they would like to make the amount higher than 75 cents.  Hee stated, "In my opinion, a tip credit is a revenue enhancement for employers.  It works like a tax credit but it's not a tax. So my view is if the Legislature wishes to provide some kind of financial relief in the form of a tax credit, it ought to do so, straight up, and not disguise it as a tip credit."

According to the state Department of Labor and Industrial Relations, the average tipped worker in the state of Hawaii earned $9.87 per year including tips.  Waiters and servers earn an average of $12.64 per year.  The average for all workers is $21.53 per hour.

Source: Honolulu Star Advertiser, 2-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Young Bros Interisland Shipping Volume Increases by 1.5 Percent in 2013

Young Bros. Ltd. the main interisland shipping company for the state of Hawaii, announced that they saw a 1.5 percent increase in shipping volume in 2013.  Per harbor, Kahului (Maui) saw a 1 percent gain, Hilo (Big Island of Hawaii) saw a 2.1 percent gain, Nawiliwili (Kauai) saw a 4.5 percent gain, Kaunakakai (Molokai) saw a 7.2 percent gain, and Kaumalapau (Lanai) saw a 20.7 percent gain.  The only harbor that saw a decline in shipping volume was Kawaihae harbor (Big Island of Hawaii) with a decrease of 4.7 percent.  Glenn Hong, president of the company, stated, "We turned the corner in 2013, but we still have a long way to go relative to the boom period we experienced during the middle of last decade.  Cargo volumes started coming back in the second quarter last year and maintained relative strength to finish 2013 with some growth. We recognize that various economic reports have been mixed of late but we're hopeful that there is enough fuel in the economy to continue to drive increasing cargo volumes in 2014."

Source: Honolulu Star Advertiser, 2-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Major Court Wins for Honolulu Rail Project

Two major victories in federal court will mean that the Honolulu Rail Project will proceed as planned.  At a federal court in Hawaii, Judge A. Wallace Tashima ruled that transit officials had followed proper procedures in choosing a rail route to Ala Moana Center instead of a route to the University of Hawaii's Manoa campus.  At a federal appeals court panel, a panel of three judges ruled unanimously that the route did comply with environmental law. Opponents of the Honolulu Rail Project have stated that these court decisions would bring their legal fight to an end.  Retired businessman Cliff Slater, who has been an opponent of the rail project from the beginning, commented, "Our preliminary decision is that there is little likelihood of prevailing in any further legal action. Therefore, today's rulings conclude our legal fight.  We didn't leave any stone unturned."

Rail supporters and members of the Honolulu government are delighted by the news.  Donna Leong, member of the Honolulu Corporation Counsel, stated, "It's now time to get on with the transit project to provide mobility to those who need it and to complete the rail on time and on budget."

Source: Honolulu Star Advertiser, 2-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

UH Athletic Department Asked to Trim Expenses

The University of Hawaii Manoa's athletic director, Ben Jay, has asked all of his staff members and coaches to cut between five percent and ten percent of their expenditures for the remainder of the fiscal year in an effort to reduce expense.  Last summer, the athletic department was ordered by the UH Manoa Chancellor Tom Apple to reduce their annual operating deficit to no more than $1 million per year for the next three years and have no deficit thereafter.  However, Jay reported to the UH Board of Regents earlier this month that this year's fiscal deficit would be approximately $2 million.  Jay is asking everyone to work together and reduce that difference and added that several coaches who are being recommended for pay raises would not see any increase in the current fiscal year.

Source: Honolulu Star Advertiser, 2-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Poll Shows Even Split of Opinion on Kakaako Redevelopment

The Ward Research Inc. conducted a poll for the Honolulu Star-Advertiser and Hawaii News Now, which showed that approximately 54 percent of Oahu's residents are concerned that too much development has been planned for Kakaako and that it is happening too quickly.  However, 43 percent of residents surveyed felt that it is better to satisfy demand for new housing by building in the urban area instead of elsewhere on Oahu.  Ward Research stated that there was a margin of error of 4.5 percent.

Nearly 40 years ago, state officials had created a vision of transforming Kakaako from an industrial neighborhood to a mix-used neighborhood with residents living in high-rises.  In 1976, the Hawaii Community Development Authority was created to has spent almost $200 million since then upgrading the sewer systems, roads and infrastructure to encourage developers to create a dense urban neighborhood.  Currently, the Howard Hughes Corp and Kamehameha Schools are planning to build a total of 29 new towers in Kakaako over the next two decades.

In recent months, there has been a lot of concern from residents stating that the new towers will block view channels of existing towers as well as that the additional towers will create traffic congestion and may be too much for the current sewer and water infrastructure.  Others worry that there will be inadequate police, medical care, and schools to handle the additional population.  However, this latest poll also indicated that many Oahu residents would rather concentrate redevelopment to Kakaako as opposed to have new housing projects throughout the rest of the island.

Source: Honolulu Star Advertiser, 2-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

The Groove Hawaii to Open in Kakaako

The first phase of the Groove Hawaii, a miniature amusement park, is scheduled to open in Kakaako on February 22, 2014.  The property, located on a three acre lot along Ala Moana Boulevard near Kakaako Makai Gateway Park, will include a go-kart track, a miniature Ferris wheel, swings, a climbing wall, an arcade game room and a small carousel along with food service and tours on Segways.  According to developer Billy Balding, a vertical wind tunnel, a zip line type ride and a miniature golf course will open in a later phase of the project.  Balding stated that the Grove Hawaii is primarily aimed at local residents, but will also appeal to visitors.  The Grove Hawaii will open daily from 9:00 AM to 10 PM.

The land is being leased from Kamehameha Schools and was approved by the Hawaii Community Development Authority in March 2013.

Source: Honolulu Star Advertiser, 2-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Senator Clayton Hee Proposes Two Bills for Traffic and Erosion Problems on North Shore of Oahu

Two bills have been introduced by state Senator Clayton Hee to help ease traffic and beach erosion problems on the North Shore of Oahu.  The first bill that Senator Hee is proposing would move a section of Kamehameha Highway from Laniakea to Chun's Reef further mauka (closer to the mountains).  Hee is also suggesting that the state should create a wayside park on the makai (ocean) side of that portion of the highway.  Hee stated, "Right now, nobody's talked about a park, it's always been, ‘Move the highway. But it's been over a decade, so we're trying to spur the discussion and accomplish two things at the same time — the creation of the park and the movement of the highway mauka."

The second bill that Senator Hee introduced would have the University of Hawaii's Sea Grant College Program create a North Shore beach management plan for the North Shore of Oahu. Hee commented that this bill was prompted after high surf threatened several houses on the Rocky Point neighborhood.  Hee added, "It's important that legislators hear from the community and part of this is to mobilize the community to be a part of the solution as opposed to wondering what government solutions might exist."

Source: Honolulu Star Advertiser, 2-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Majority of Hana Ranch on Maui Sold for $4.75 Million

Approximately 3,600 acres of the 4,500 acre Hana Ranch on Maui has been sold for a $4.75 million. The new ownership group, Hana Ranch Stewards LLC, has stated that they plan to turn the property into "one of the premier sustainable farms in the state."  Grant McCargo, one of the principals of the company, stated, "We are proud and humbled to become the new stewards of Hana Ranch. To maintain Hana's natural beauty, continue Hana's legacy as a productive ranch, and be part of a vibrant community centered on healthy food, clean water, and a thriving environment is truly a blessing."

Source: Honolulu Star Advertiser, 2-15-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Honolulu Rail Project to Redesign Maintenance Storage Facility

Officials for the Honolulu Rail Project have announced that they will be spending an additional $4.25 million to redesign the track operations at the main maintenance storage facility.  The 43-acre facility, located near the Leeward Community College, will have to be reconfigured so that its tracks can support "automated train operations" that won't require workers to manually move train cars around the yard.  There will also be a test track at the facility, additional cabling for the automated track system, a car-unloading dock and more grading and utilities.  Rail officials stated that these changes will make the storage facility safer and less expensive to operate in the long run.  Unfortunately, the $4.25 million that is being allocated will only pay for the costs associated with the redesign and not for the eventual construction costs associated with the changes.  Critics of the project question why the upgrades were not part of the original designs to begin with.

Source: Honolulu Star Advertiser, 2-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Honolulu Rail Project - Mock-Up of Rail Car on Display at Kapolei Hale

The Honolulu Authority for Rapid Transportation (HART) has announced that a life-size mock-up of the rail cars that will be used for the Honolulu Rail Project are now on display at Kapolei Hale. The model will be available for viewing during regular business hours from now until the end of April for anyone who is interested in seeing what the rail cars will look like.  The building will be also open from 10:00 AM to 4:00 PM on Saturday and Sundays for the public.  The first real rail cars are expected to arrive on Oahu in 2016.  The first section of the rail project is expected to be completed in 2017.

Source: Honolulu Star Advertiser, 2-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

OHA's Kakaako Makai Condominium Development Plan Gains Support in Senate

The Office of Hawaiian Affairs has stated that they would like to have the right to develop 3 or 4 condominium towers on land that they own in Kakaako Makai.  Under the amended bill that passed through two Senate committees, they would restrict housing to three inland parcels of the nine lots that were given to them by the state two years ago as a settlement for disputed claims over unpaid ceded land revenue.  The amended bill also increases the development height limit for the two parcels that front Ala Moana Boulevard to 400 feet from 200 feet.

OHA official submitted written testimony that stated, "We seek to find the highest point at which the culturally rich use of our Kakaako Makai lands intersects with revenue-generating use of the parcels.  We understand better than any other developer the impacts of irresponsible development. Native Hawaiians have been victims of, and suffered most from, the consequences of reckless development."

Homelani Schaedel, an OHA beneficiary, added, "While we will hear voices who oppose the passage of this bill, it is time for all to hear (that) we are tired of being told what we can or cannot do, or what we should and should not do with our lands. I ask all here to remember, it was our ancestors who walked and worked these lands. They taught us how to be good stewards of the aina (land). We agree Kakaako Makai is for the benefit of Native Hawaiians. What we may not agree on is how it should be developed. That kuleana (responsibility) rests on the shoulders of OHA and its trustees. Do not tie their hands."

The Senate bill will now move to the Judiciary Committee.  If passed it will move to various House committees.

Source: Honolulu Star Advertiser, 2-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

New Minimum Wage Bills Advanced

State Senator Clayton Hee and State Representative Mark Nakashima have advanced new bills that would increase that state's minimum wage.  Under House Bill 2580, there would be a gradually increase the minimum wage until it reaches $9.50 an hour by January 2017 and the wage would be adjusted in future years based on the Consumer Price Index. The 25-cent tip credit would be eliminated.  Under Senate Bill 2609, there would be a gradual raise of the minimum wage to $10.10 an hour by January 2017. Future increases would be tied to the Consumer Price Index. The tip credit would be repealed.  Tip credit is the amount that business can deduct from restaurant staff and other workers who earn tips and has been one of the main focuses of argument in past minimum wage debates in Hawaii.

The state's minimum wage is $7.25 per hour and has not increased since 2007.  The tip credit is currently only 25 cents.   The Chamber of Commerce of Hawaii and the Hawaii Food Industry Association have warned that an increase in minimum wage could mean that businesses will lay off workers or raise prices.

Source: Honolulu Star Advertiser, 2-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Kahuku Wind Project Back at Full Capacity

First Wind has announced that their Kahuku wind energy project is back to working at full capacity after almost a year and a half of being shut down due to a fire that damaged the battery system at the plant.  The damage was repaired back in August 2013, but the energy output was limited to 5 megawatts as the Hawaiian Electric Company and First Wind ran tests to ensure that the new battery system was working properly,  The large turbines are now generating their maximum 30 megawatts of capacity and is being fed into the HECO grid.  This equates to enough energy to provide approximately 7,700 homes with electricity.  HECO will pay First Wind an average of 22.9 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 2-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Four Bills Advance that Would Limit the Authority of the HCDA

The state House Committee on Water and Land has revised and advanced four bills, out of the seven that were proposed, that may affect the Hawaii Community Development Authority.  The HCDA is the state agency that is overseeing the redevelopment of Kakaakao, and has recently been under criticism from current Kakaako residents who feel that the neighborhood is being changed too quickly.  These opponents feel that the HDCA is serving the interests of large developers instead of that of the community.

The bills that have advanced are:

HB 1867: Towers must be separated by 300 feet, no tower higher than 400 feet.
HB 1866: Limit the governor’s power to appoint HCDA board members.
HB 1865: Require a management and financial audit of HCDA.
HB 1863: Allow citizens to sue HCDA.

These bills will now be reviewed by a state House Finance committee.  If some or all of these bills pass the committee, they would then be sent over to the Senate.

Source: Honolulu Star Advertiser, 2-12-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

'Ohana by Hawaiian Airlines to Start Service in March 2014

Hawaiian Airlines has announced that their new subsidiary, 'Ohana Airlines, will begin service in March 2014 to the islands of Molokai and Lanai from Honolulu Airport.  Initially, 'Ohana will offer three flights to Molokai per day starting on March 11, and will offer two flights per day to Lanai starting on March 18.  They will be using a new turboprop ATR-42 aircraft, which will be able to accommodate 48 passengers.  'Ohana Airlines will create over 100 new jobs in Hawaii.

Source: Honolulu Star Advertiser, 2-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Maui Real Estate Data for January 2014

Source: Realtors Association of Maui

Single Family Home Sales for the Island of Maui:

January 2014 - 64 Homes Sold - $691,500 Median Price

January 2013 - 63 Homes Sold - $550,000 Median Price

Condominium Sales for the Island of Maui

January 2014 - 93 Condos Sold - $437,000 Median Price

January 2013 - 63 Condos Sold - $297,000 Median Price

Source: Honolulu Star Advertiser, 2-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hawaiian Electric Hopes To Create Natural Gas Import Terminal at Pearl Harbor

The Hawaiian Electric Company is currently in discussion with the U.S. Navy to build a liquefied natural gas import terminal at Pearl Harbor.  According to HECO, natural gas burns much cleaner than oil and would provide significant fuel savings over time when compared to oil.  The plan calls for a new-shore floating platform at Pearl Harbor, where the liquefied natural gas (LNG) would be unloaded from ships and converted back to a gas.  It would then be transported through a pipeline to various HECO power plants.

Bill Doughty, a Navy spokes­man, stated that "extensive technical and environmental studies are required before any decision is made on locating a terminal at Pearl Harbor."  Doughty added, "We are aware that such a project could yield significant potential benefits for the Navy and for Hawaii energy security, electricity cost savings and environmental stewardship. Both Navy Region Hawaii and HECO consider the development of the LNG terminal to be a long-term project that would take several years to compete."

Darren Pai, spokesman for HECO, commented, "Since LNG is a cleaner-burning and less expensive fuel, it would be advantageous as a bridge fuel to displace as much of the remaining oil as possible.  Pearl Harbor is protected, has calm waters and good water depths, and is closer to power generating stations."

Source: Honolulu Star Advertiser, 2-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Honolulu Unemployment Rate at 3.8 Percent in December 2013

Accord to the U.S. Labor Department, Honolulu was tied for the 19th lowest unemployment rate out of the largest 372 metropolitan areas in the country in December 2013 with a 3.8 percent rate.  This was a decrease from the 4.1 percent posted in November 2013.   Bismarck, North Dakota had the lowest rate at 2.8 percent and Yuma, Arizona had the highest at 27.1 percent.  Nationwide, the unemployment rate was 6.7 percent.

Source: Honolulu Star Advertiser, 2-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Explanation of the Terms "Affordable Housing" and "Workforce Housing"

Affordable Housing: The U.S. Department of Housing and Urban Development (HUD), gives tax credits to developers who can create units priced for household earning 60 percent of the area median income (AMI).  There is no federal subsidy for projects accommodating those who earn higher than 60 percent AMI.  However, because it is so difficult for developers to turn a profit at these profits, most decide not to create true affordable housing.

Workforce Housing or Moderate Income Housing: The City and County of Honolulu requires that developers build a certain number of workforce housing when building new projects. Depending on the requirements, these would have to be designed for families earning a maximum of 120 percent area median income (AMI) or 140 percent AMI.  Additional incentives are given for units for 80 percent AMI and 100 percent AMI.

Recent bills before the state legislature suggest increasing the number of required workforce housing that developers must build and forcing developers to create a certain number of 80 percent and 100 percent AMI buildings.  Developers argue that supplying these properties are not profitable for them and that huge government subsidies would have to be provided by the state or city in order for that to happen.

As a point of reference the median income (100 percent AMI) for a family of four in Honolulu is $82,600 in Honolulu.

Source: Honolulu Star Advertiser, 2-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com