Hawaii Tourism Industry Poised to Set Record Year

According to a report issued by the Hawaii Tourism Authority, it appears that the state will set new records for visitor arrivals and spending in 2014.  While the final numbers for December are still not available, during the first 11 months of the year arrivals had increased by 0.9 percent and spending grew by 2.3 percent, leaving experts predicting that December will not be any different.

David Carey, the president and CEO of Outrigger Enterprises Group, was pleased with this development, but commented that hotel operating costs have also grown. Carey stated, "We always forget that inflation is a factor. Costs have certainly increased rapidly over the past three years: labor costs, medical costs and up until very recently, energy costs. At the end of the day it's been three years in a row of positive increase in business and that's good. The industry is getting better at getting pricing that's more in line with the quality of products here in Hawaii."

Ronald Williams, the CEO for the Hawaii Tourism Authority, commented, "Arrivals and spending from our developing international markets also continue to grow as we work toward diversifying our tourism profile and increasing first-time arrivals to the Hawaiian islands. This has helped to balance our core markets like Japan, where economic uncertainty has led to slight declines in visitor arrivals and decreases in length of stay, which are affecting total expenditures and may hinder us from reaching year-end targets for this market."

Source: Honolulu Star Advertiser, 12-30-2014, www.staradvertiser.com
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Ihilani Resort to Stay Open Until April 5

Developer Jeff Stone has announced that the JW Marriott Ihilani Ko Olina Resort and Spa will be staying open until April 5, 2015, three months longer than initially anticipated.  The resort will be undergoing a complete remodel and will be re branded as a Four Seasons resort.  Stone commented, "We want to preserve as many jobs as possible. The decision was made based on the need to keep people working when you can. Hawaii's running over 95 percent occupancy in Honolulu. We have a lot of events. One of our biggest issues is we have Disney (next door). You start tearing up the front, putting in pools, making a lot of ruckus, it will definitely alter the vacation for a lot of people. We don't want to do anything that will damage Disney's reputation."

The hotel is expected to be closed for about a year while it undergoes the first phase of the $500 million renovation.

Source: Honolulu Star Advertiser, 12-30-2014, www.staradvertiser.com
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What to Do About Illegal Vacation Rental

The city's Department of Planning and Permitting is responsible for preventing illegal vacation rentals on the island of Oahu, but in the last five years only 88 violation notice or warnings have been issued and only $48,853 in fines have been collected.  Critics argue that this is a tiny amount considering that it is currently estimated that there are over 22,000 illegal vacation rentals being operated on the island.

Mayor Kirk Caldwell defended the Department of Planning and Permitting and stated. "The vacation rental issue is highly controversial. We face a huge challenge here, as you know, regulating and enforcing vacation rental issues, and it always comes down to money and whether we have the money to actually do the enforcement." George Atta, the director for the DPP, added, "Quite honestly, operators are smart. They tell their tenants not to answer the door and not to speak to anyone from the city. Because my inspectors don't have a warrant, they can't insist on entering. In a certain sense, we don't have the tools that are necessary to gather evidence."

City Councilman Ikaika Anderson has drafted a proposal that would expand owner-operated bed-and-breakfasts to 1,275 units, with no more than 25 percent of them allowed in one district.  Anderson also would punish violators sternly and would not grandfather in current offenders. The fees created by these new bed-and-breakfasts would pay for about a dozen new city inspectors, who would focus on vacation rental enforcement.

The Honolulu City Council plans to meet in the new year to discuss further options.

Source: Honolulu Star Advertiser, 12-29-2014, www.staradvertiser.com
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Illegal Vacation Rentals Have Many Residents Frustrated

There has been a recent expansion of illegal vacation rentals throughout the island of Oahu and visitors hope to gain new experiences other than being in traditional hotels and tourist destinations. While small businesses have welcomed these visitors to their local economies, many residents argue that the volume of visitors have hurt the quality of life in their sleepy neighborhoods. According to research conducted by the Honolulu Star-Advertiser, the North Shore of Oahu and Kailua are the most popular areas for illegal vacation rentals and as many as 80 percent of these vacation rental owners are operating outside of city restrictions. Donna Wong, a member of the Kailua Neighborhood Board, commented, "It's creating a lot of conflict and hostility. Kailua used to be a quaint, small town where everyone knew everyone. Now, it's a resort. The North Shore has a similar situation. Visitor traffic used to be contained to surf season. Now, they've got it 24/7, 365 days a year."

In 1986, a law was passed that prohibited vacation rentals rented for less than 30 days in neighborhoods outside of designated resort areas.  In 1989, another law was passed prohibiting any new bed-and-breakfast homes in all zoning districts. However, the Hawaii Tourism Authority has noted that the city has failed to enforce these laws and rental property owners are blatantly violating regulations in recent years. It is estimated that between 78 percent to 87 percent of the North Shore and Kailua rentals are operating illegally.

Some tourism industry leaders believe that the city should relax restrictions and make these types of rentals legal, provided that homeowners pay the transient accommodation tax (TAT) and general excise tax (GET). Critics argue that illegal rentals should be stopped, as it increases traffic and crime in residential neighborhoods, drains community resources and reduces the supply of residential housing.

Source: Honolulu Star Advertiser, 12-28-2014, www.staradvertiser.com
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City Plans to Replace Street Lights with LED Lamps

Honolulu Mayor Kirk Caldwell is proposing changing all of the city's streetlights with light-emitting diode (LED) lamps over the next few years.  This move would cut the electricity consumption for the streetlight by half, saving the city approximately $3 million in energy cost per year.  Furthermore, LED lights will last longer than traditional lights and shine brighter, helping to reduce crime and the number of vehicular accidents across Oahu.  The city is now requesting for bids from companies to install the LED lamps.

Source: Honolulu Star Advertiser, 12-27-2014, www.staradvertiser.com
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Hawaii's Population Grows by 0.8 Percent in 2014 Fiscal Year

According to a report issued by the Census Bureau, the state of Hawaii's population increased by 10,500 people in the 2014 fiscal year (ending July 1) or a 0.8 percent annual growth.  This meant that the state's total population was 1,419,561 people in 2014.  The study went on to state that nearly 8 in 10 Hawaii residents were products of natural growth, or the difference between birth and deaths.  The remaining newcomers were those who arrived from out of state vs those who moved away from the islands.

Source: Honolulu Star Advertiser, 12-26-2014, www.staradvertiser.com
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Minimum Wage to Increase to $7.75 Per Hour on January 1

The state's minimum wage will be increasing by 50 cents to $7.75 per hour beginning on January 1, 2015.  This is the first increase the state has seen since 2007. It will increase to $8.50 per hour by January 2016, to $9.25 per hour by January 2017, and will finally reach its new peak of $10.10 per hour by January 2018.  Dwight Takamine the director of the state Labor Department, commented, "This increase will boost consumer demand and jobs because minimum and low-wage workers spend most if not all of their increased wages.

Source: Honolulu Star Advertiser, 12-26-2014, www.staradvertiser.com
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Dillingham Ranch on North Shore Hopes to Build 106 Homes

Dillingham Ranch Aina LLC, has submitted an environmental assessment to the state requesting that they turn the 2,700 arce property into a subdivision for 106 homes.  Under the proposal, all of the properties will be "farm dwellings" which would mean that they would follow state and country regulations and be required to be primarily used for agricultural operations. A total of 91 of the lots would be at least 5 acres in size, plus a cluster of 15 homes close together.  The rest of the land would be refocused on orchard crops, like mango, avocado and lime, and on maintaining the existing cattle production and equestrian activities that the ranch is known for.

Critics argue that this proposal will simply create "gentlemen's farms," where buyers will build luxurious estate-type homes and engage in little or no commercial agriculture.  Under state and country regulation a buyer would simply have to plant a few fruit trees or have a couple of horse to be part of an agricultural subdivision.

Source: Honolulu Star Advertiser, 12-25-2014, www.staradvertiser.com
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Hampton Inn Hotel & Suites to Be Built in Kapolei

Hilton Worldwide has announced that they have come to an agreement to build a Hampton Inn & Suites at the planned Ka Makana Ali'i regional mall in Kapolei. The tentative plan is to build a 175-room hotel as part of the mall's 750,000 sq ft first phase.  Construction will begin in mid-2015 and the Hampton Inn would open sometime in 2016.  Hilton currently has six hotels and seven-time share properties in Hawaii, but does not have a Hampton hotel in the islands yet.  Bill Fortier, a senior vice president of development for Hilton, commented, "As one of the world's most sought-after travel destinations, it is only fitting to expand Hampton Hotels to Hawaii, bringing a successful mid-priced product to the market."

Source: Honolulu Star Advertiser, 12-23-2014, www.staradvertiser.com
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State Budget Proposed to be $12.6 Billion In Next Fiscal Year

Governor Ing has just submitted his proposal for the state budget for the next fiscal year. Under his proposal the budget will increase to $12.6 billion, which represents approximately a 4 percent increase.  The majority of the increase goes to fill contractual requirements with state workers including added health benefits and raises.  These same contractual obligations will increase the budget to $13.1 billion the following fiscal year.  Governor Ing commented, "We do anticipate that we would be putting a more specific imprint on the budget in January as we get department directors on board and they've had a chance to view the budget requests and budget proposals that were developed as part of the budget process."

Source: Honolulu Star Advertiser, 12-23-2014, www.staradvertiser.com
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Sit-Lie Ordinance Enforced in Chinatown

The Honolulu Police department has started to enforce the city's new sit-lie ordinance in Chinatown.  Under the new law, sitting and lying on business district sidewalks is prohibited from 5:00 AM to 11:00 PM.  Police officers have spent the last two weeks handing out warnings in Chinatown and encouraging people to move into shelters. Over the next few months, enforcement will go into effect for downtown Honolulu and 14 other business districts throughout Oahu. Waikiki's ordinance is slightly different as it bans sitting and lying on sidewalks 24 hours per day.

Chinatown merchants and residents stated that they have already noticed a difference, but hope that the city would include banning lying and sitting at five malls in the Chinatown-downtown area as well. These include College Walk Mall, Sun Yat Sen Mall, Kekau­like Mall, Union Mall and Fort Street Mall.

Source: Honolulu Star Advertiser, 12-23-2014, www.staradvertiser.com
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Frustration Increases for Over Budget Rail Project

Hawaii residents and legislators alike expressed their frustration toward the Honolulu Authority for Rapid Transportation who recently broke the news that the Honolulu Rail Project is now expected to cost between $550 million to $700 million more than the $5.26 billion estimated.  Daniel Grabauskas, the executive director for HART, commented that project delays caused by lawsuits by rail opponents, pushed the cost up by as much as $190 million, and higher then expected construction contract have attributed to the rest of the unforeseen expense.  In addition, the city has received $41 million less than what was previously project from the general excise tax surcharge that was expected to pay for the bulk of the Rail Project.

Ann Kobayashi, the Honolulu City Council Budget Chairwoman, suggested that it might be time for HART officials to consider scrapping plans for a rail project, and instead allow buses, instead of trains, to travel exclusively along the 20-mile guide way from East Kapolei to Ala Moana Center. Kobayashi argued that this might be a cheaper alternative, and would eliminate the need for park-and-rides to be built along the rail line.  Grabauskas replied that under the funding agreement with the Federal Transit Administration,"we are not allowed to change our plans mid-stream from a rail transit system to one using buses. To switch from steel-on-steel rail technology to buses using rubber tires, we would have to return the existing federal funding and reapply for the money."

Source: Honolulu Star Advertiser, 12-20-2014, www.staradvertiser.com
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Unemployment Rate Down to 4 Percent in November 2014

According to a report issued by the state Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate fell to 4 percent during November 2014. Eugene Tian, the chief economist for the state Department of Business, Economic Development and Tourism, commented, "It's very good news. The labor market has continued to improve and the labor market is in the best condition since the recession." Honolulu had the lowest unemployment rate at 3.8 percent.  Maui County came in second at 4.2 percent.  Kauai County and Hawaii County posted a 4.6 percent and 5.1 percent unemployment rates respectively. The national unemployment rate, in comparison, was 5.8 percent for November.

Source: Honolulu Star Advertiser, 12-19-2014, www.staradvertiser.com
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Rail Project Expected to Be Over Budget

The Honolulu Rail Project is now estimated to be between $550 million to $700 million more than originally planned.  Members of the Honolulu Authority for Rapid Transportation blamed the booming construction market to be the major source of the problem, and noted that construction companies came in with higher bids than what was anticipated.  At this point, 40 percent of the work has yet to be contracted out, making critics of the Rail Project extremely nervous as to what the final price tag will be.

The city has several options to raise the additional money needed to complete the rail project.  The first option is to attempt to extend the 0.5 percent general excise tax surcharge past its 2022 expiration date.  Another suggestion was to divert more than $200 million in federal funds currently used to support the city's bus system.  Finally, rail officials are suggesting splitting the work into smaller contracts, hoping that construction companies will offer more competitive bids.

Source: Honolulu Star Advertiser, 12-19-2014, www.staradvertiser.com
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Artspace to Proceed with Low-Income Artist Housing in Kakaako

The Hawaii Community Development Authority has announced that they have awarded nonprofit developer Artspace with a 65-year lease for a 30,000 sq ft lot on Waimanu Street to build loft-style apartments for low-income artists in Kakaako.  The lease rent will be a nominal amount of $1 per year.  Artspace plans to build an eight story building with a total of 84 rental units. They will be restricted to households earning 30 percent to 60 percent of Honolulu's median income.  That equates to a maximum of $28,750 for a single person to $57,480 for a family of four. Monthly rent will be between $437 to $1,334 per month.

Source: Honolulu Star Advertiser, 12-18-2014, www.staradvertiser.com
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Electricity Prices Lower in December 2014 Due to Decreasing Fuel Prices

According to report released by Hawaiian Electric Company, the average customer will spend $197.32 for 600 kilowatt-hours in December 2014, which marks the first time since May 2012 that the average bill has been less than $200. Peter Rosegg, HECO spokesman, stated, "Most of the present fall in Oahu electric bills is due to less expensive fuel. A typical Oahu bill has dropped by almost $22 since September. Our goal continues to be lowering electric bills by adding renewable energy, with our commitment to 65 percent renewable energy by 2030. And we plan to use lower-priced, cleaner natural gas to replace imported oil, which remains volatile in price." Oahu residents paid 31.2 cents per kilowatt-hour in December 2014.

Source: Honolulu Star Advertiser, 12-18-2014, www.staradvertiser.com
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Hyatt Enters Hawaii Time-Share Market

Hyatt has entered Hawaii time-share market with the opening of the Hyatt Kaanapali Beach, a Hyatt Residence Club Resort, on Maui.  According to the announcement, there will be a total of 131 time-share units on the 40-acre Hyatt Regency Maui Resort and Spa.  John Burlingame, president of Hyatt Vacation Ownership, commented, "Fifteen years ago we determined that there was an opportunity to build an additional project within the overall resort campus and we thought this would be a great addition. I think Hawaii is an important destination for people to buy and exchange to and if you talk to Interval International they would probably tell you that Maui in particular has the most demanded properties in the system."

According to Hospitality Advisors LLC, time-share units represents 15 percent of total resort accomidations in the state of Hawaii.  

Source: Honolulu Star Advertiser, 12-17-2014, www.staradvertiser.com
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Bankruptcy Filings Decrease in November 2014

According to a report issued by the U.S. Bankruptcy Court, there were only 128 filings during the month of November 2014.  This represented a decrease of 13.5 percent as compared to the same month a year prior Jack Suyderhoud, professor of business economic at the University of Hawaii at Manoa Shidler College of Business and an adviser to First Hawaiian Bank, commented, "Bankruptcies tend to track the economy, so it's not surprising that it's down when the economy is improving, which in terms of the labor market certainly has been the case. When you look at the GDP (gross domestic product) for the U.S. as a whole, 2014 is going to end up pretty good despite the weak start at the beginning of the year. To me it's not a surprise that bankruptcies are going down in this part of the business cycle. The data we're getting on the overall economy is pretty strong. The big question is how this will carry over into 2015 given weakness in Europe and Asia and the strength of the U.S. dollar."

Source: Honolulu Star Advertiser, 12-17-2014, www.staradvertiser.com
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Matson Announces Additional Reduction of Fuel Surcharge

Matson Inc. has announced that they will be reducing their fuel surcharge by 2 percentage points to 35.5 percent thanks to a recent decline in bunker fuel prices.  The price change will take effect on December 21, 2014 and will mark the second consecutive decrease in less than two months. Dave Hoppes, Matson's senior vice president of Ocean Services, stated, "We are pleased to be able to make this downward adjustment to our fuel surcharge, which for most customers represents a reduction in shipping costs ranging from $40 to $70 per container. We have been encouraged by the recent moderation in bunker fuel prices, and remain focused on diligently exploring ways in which we can maximize fuel efficiency for our fleet."

Source: Honolulu Star Advertiser, 12-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Island Air Continues to Show Loss

According to a report issued by the U.S. Department of Transportation, Island Air has just posted its six consecutive quarterly loss during the third quarter of 2014. The quarterly loss amounted to $2.6 million, which is a relatively small amount for its owner, billionaire Larry Ellison, who purchased the airline in February 2013.  Forbes magazine recently noted that Ellison is the fifth person in the world with a net worth of $51.3 billion.

David Pfliger, the President and CEO for Island Air, stated, "The airline's sixth successive quarter of losses with a new owner was not surprising given Island Air's rebuilding efforts and the extremely challenging, competitive environment. It is a result of this continuing trend and other factors that the company is undertaking a comprehensive strategic review of our fleet, network, and other key aspects of our business to design a business plan that will ensure our future success. It remains our goal to provide our customers with a reliable and a superior travel experience while creating an airline that can grow and serve the islands profitably."

Source: Honolulu Star Advertiser, 12-16-2014, www.staradvertiser.com
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Hawaii Rejoices at Lower Gas Prices, Still Highest in the United States

Hawaii residents are rejoicing the fact that the average gas prices around the state are now $3.75 gallon, but still pay significantly more than anywhere else in the United States. In fact, Alaska and New York are the only other states where the average price tops $3 per gallon.  There are even some areas in the country that are already paying less than $2 per gallon.  The national average is $2.60 per gallon.  Still, Hawaii economists believe that the relative lower price of gas will help holiday spending, as residents will have a little extra cash in their pocket.

Source: Honolulu Star Advertiser, 12-15-2014, www.staradvertiser.com
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Assessed Property Values Increase Throughout the Island of Oahu

The City and County of Honolulu will be sending residents real property assessments for the upcoming 2015 fiscal year.  For residential properties, the gross assessed value went up from $169.2 billion to $174.5 billion, or a 7.2 percent increase.  Gary Kurokawa, the city deputy director of budget and fiscal services, stated, "When we look at the numbers, I think that it's pretty similar to last year's increases. The market has been relatively stable as far as the values of properties."

The standard residential tax rate is $3.50 per $1,000 of assessed property value. However, Residential A class dwellings, which are defined as properties worth more than $1 million that are not owner occupied, will pay $6 per $1,000 of assessed value.  For owners who wish to dispute their real property assessment, they may file appeals up until January 15th.   Visit the Real Property Assessment Division's website at www.realpropertyhonolulu.com and click on the "Assessment Appeals" link.

Source: Honolulu Star Advertiser, 12-14-2014, www.staradvertiser.com
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Real Estate Sales Data for Maui for November 2014

Source: Realtors Association of Maui

Single Family Home Sales Data for the Island of Maui

November 2014 - 74 Houses Sold - $587,500 Median Price

November 2013 - 75 Houses Sold - $515,000 Median Price

Condominium Sales Data for the Island of Maui

November 2014 - 68 Condos Sold - $366,250 Median Price

November 2013 - 96 Condos Sold - $350,000 Median Price

Source: Honolulu Star Advertiser, 12-13-2014, www.staradvertiser.com
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HCDA Seeking Developer Bids for Micro-Units in Kakaako

The Hawaii Community Development Authority is requesting for developers to submit bids to build affordable micro-unit apartment rentals at lot that it owns at 630 Cooke Street. The concept is to build apartment units with about 300 sq ft of living space that is suitable for no more than two people. HCDA hopes that units in this building would have a monthly rent that is affordable for residents earning no more than the median income in Honolulu, which is about $57,800 for a single person or $66,100 for two people.

According to a report issued by the Hawaii Appleseed Center for Law and Economic Justice, almost one out of every four households is composed of just one occupant. Therefore, micro-units would be a wonderful way to build much needed affordable housing.

Source: Honolulu Star Advertiser, 12-12-2014, www.staradvertiser.com
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Real Estate Sales Data for the Island of Kauai for November 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Island of Kauai

November 2014 - 35 Houses Sold - $499,000 Median Price

November 2013 - 30 Houses Sold - $589,500 Median Price

Condominium Sales Data for the Island of Kauai

November 2014 - 16 Condos Sold - $397,500 Median Price

November 2013 - 27 Condos Sold - $290,000 Median Price

Source: Honolulu Star Advertiser, 12-11-2014, www.staradvertiser.com
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Real Estate Sales Data for the Big Island of Hawaii for November 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Big Island of Hawaii

November 2014 - 141 Houses Sold - $350,000 Median Price

November 2013 - 162 Houses Sold - $309,500 Median Price

Condominium Sales Data for the Big Island of Hawaii

November 2014 - 36 Condos Sold - $202,500 Median Price

November 2013 - 57 Condos Sold - $244,000 Median Price

Source: Honolulu Star Advertiser, 12-11-2014, www.staradvertiser.com
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Hawaii is the Healthiest State in the Nation

According a report released by United Health Foundation, Hawaii is the healthiest state in the nation for the second year in the row. The United Health Foundation uses a variety of factors in coming up with their rankings including state health policies, the lifestyle behavior of the citizens, availability of clinical care, and medical coverage.  Hawaii had the fewest percentage of smokers at 13.3 percent of adults, and the second lowest obesity rate at 21.8 percent of adults.  Rounding out the top five states are Vermont, Massachusetts, Connecticut and Utah.

Keith Yamamoto, the acting director of the state of Hawaii's Department of Health, stated, "I'm elated that we have gotten the highest ranking in the nation for the second year in a row. We do think it's a reflection of our community and their commitment to healthy lifestyles and environmental protection."  Governor David Ige added, "This is encouraging news and I look forward to working with our public health and health care communities to ensure access to care and strengthen prevention efforts to reduce chronic disease and injury in our state. I'm proud to say that Hawaii is the healthiest state in the nation, and we must continue to invest in our public health efforts."

For full details, please visit americashealthrankings.org

Source: Honolulu Star Advertiser, 12-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Real Estate Sales Data for the Island of Oahu for November 2014

Source: Honolulu Board of Realtors

Single Family Home Sales Data for the Island of Oahu

November 2014 - 225 Houses Sold - $719,500 Median Price

November 2013 - 296 Houses Sold - $684,000 Median Price

Condominium Sales Data for the Island of Oahu

November 2014 - 363 Condos Sold - $343,000 Median Price

November 2013 - 407 Condos Sold - $330,000 Median Price

Source: Honolulu Star Advertiser, 12-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Time-Share Industry Generates $45.8 Million in Tax Revenue

According to a report released by the Hawaii Tourism Authority, the time-share industry generated more than $45.8 million in state and county tax revenue and added 1,445 jobs to Hawaii's tourism industry during the past fiscal year which ended in June 2014.  The report noted that time-share occupancy was 88.9 percent statewide, which was almost 12 percentage points higher than the hotel occupancy during that same period.  Joe Toy, the president and CEO of Hospitality Advisors, commented, "The time-share industry is very healthy in Hawaii. I expect it will continue to expand.  There's lots of motivation for people to buy here. Part of it is the ability to have a prepaid stay in Hawaii, but there's also a very strong redemption value if you want to exchange elsewhere. That's why there are even a lot of Hawaii residents that buy into time share."

Henry Perez, the chairman of the American Resort Development Association of Hawaii added that within the next two years, the island of Oahu and Maui are expected to add an additional 500 time-share units each, and that there are another 800 units planned for the Big Island of Hawaii.  Perez noted, "This period of expansion is pretty close to the 2005-to-2008 time period. The time-share market gets hot when the visitor industry gets hot."

Source: Honolulu Star Advertiser, 12-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Invasive Pine Trees Removed from Haleakala National Park

The National Park Service has announced that they will be removing a total of 3,000 invasive pine trees from the Haleakala National Park on the island of Maui. The operation will take about 10 days to complete and will require the use of helicopters to remove some of the trees that are growing in very remote or steep areas.  The invasive trees are Monterrey pine, Mexican weeping pine and maritime pine, and they are displacing endemic and endangered species in the area.

Source: Honolulu Star Advertiser, 12-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Waikiki Commercial Properties Asked to Contribute to Beach Restoration Projects

Honolulu Councilmen Ernie Martin and Stanley Chang are proposing two new bills, Bill 81 and Bill 82, which would require that commercial property owners in Waikiki must contribute to the beach restoration projects for that neighborhood.  Under the Bills, commercial property owners from Ala Wai Harbor to Kaimana Beach and from Ala Wai Canal to the ocean would be taxed an estimated 7.63 cents per $1,000 of assessed value.  This would generate about $600,000 per year for the Waikiki neighborhood.

Rick Egged, the president of the Waikiki Improvement Association and a supporter of the bills, stated, "It spreads the cost over all stakeholders rather than the few who are willing to come up with the money. It also gives us a seat at the table to make sure that the projects are done properly and that they are in keeping with stakeholder objectives. I think all of our members generally believe that establishing this major public-private partnership is necessary,"  City Councilman Chang added, "As Waikiki's councilmember for the last four years, I believe strongly that the only way to preserve Wai­­kiki Beach for today's and tomorrow's residents and visitors alike is to develop and implement a coordinated comprehensive plan for all of the beach rather than continue to react to spot crises."

Jerry Gibson, the area vice president of Hilton Hawaii, stated that he will support the bills provided that the money stays focused on improving Waikiki beach.  Gibson commented, "I believe in the public and private aspect of putting it together. I wouldn't like to see the money go toward creating a bureaucracy. I want to see it go to maintenance and care of the beaches. We've seen with weather and hurricanes and those kinds of things that the beach can go away quickly. For the economic viability of Wai­kiki and the pleasure of the tourists and locals who live here, it's important to continue to maintain the beach area and continue to make it the best in the world. If everyone does a little bit, we can do a lot together."

Source: Honolulu Star Advertiser, 12-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Hawaiian Electric Industries to be Sold for $4.3 Billion

NextEra Energy Inc., which is based out of Juno Beach, Florida, has just announced that they will purchase Hawaiian Electric Industries Inc for $4.3 billion.  NextEra is currently the nation's largest generator of wind and solar power, and has stated that they will help Hawaii reach its goal of becoming less dependent on imported fossil fuels for power generation. Hawaiian Electric will keep its name and will continue to be based in Honolulu.  NextEra also promised that there will be no layoffs for the next two years.

Government officials have been cautiously optimistic about this new development. Governor David Ige commented, "The state of Hawaii will do its due diligence to ensure the sale will be in the best interest for Hawaii ratepayers. Since Hawaiian Electric Company, Inc. was founded by King David Kalakaua, the state will work to maintain the spirit and values that are consistent with the King's legacy and honors our culture for future generations."  U.S. Senator Mazie Hirono added, "The decision to combine with NextEra Energy and spin off ASB deserves careful scrutiny on behalf of Hawaii consumers and residents."

Source: Honolulu Star Advertiser, 12-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hoopili Has Been Given Approval By Honolulu Planning Commission

The Honolulu Planning Commission has voted 6-0 in the recommendation to the Honolulu City Council to rezone the Hoopili development from agriculture to residential, business and mixed use.  Developer D.R. Horton plans to build a total of 11,750 homes on the 1,554 acre site. Supporters of the project argue that Hoopili will provide much needed homes to the area as well as jobs.  Opponents state that it will make traffic worse and eliminate prime agricultural land. The proposal will now go to the City Council who will probably decide on the rezoning request in January 2014.

Source: Honolulu Star Advertiser, 12-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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