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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Target to Hire 500 Workers in Hawaii

Target Corp. has announced that they will be hosting two job fairs in December to hire approximately 500 workers for the their two new locations in Kailua, Oahu, and Kahului, Maui.  The Kailua location will be located at 345 Hahani Street and will be approximately 134,000 sq ft in size.  The Kahului store will be about 140,000 sq ft in size and will be located in the Pu'unene Shopping Center.  Both stores will feature a pharmacy and a Starbucks and are expected to open in March 2015. 

Source: Honolulu Star Advertiser, 12-3-2014, www.staradvertiser.com
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Honolulu Mayor Signs Sidewalk Bills

Honolulu Mayor Kirk Caldwell has signed into law several bills that would affect the sidewalks of Waikiki and other parts of the island of Oahu.  Bill 42 made it illegal for people to sit or lie on Waikiki sidewalks 24 hours per day.  Bill 43 prohibited people from urinating and defecating in public places in Waikiki.  Bill 46 made it illegal for people to urinate or defecate in public areas in the rest of Oahu.  Offenders who violate these new laws could be fined up to $1,000 and/or up to one month in jail for the petty misdemeanor.

Caldwell noted that he also intends to sign Bill 48 which would ban sitting and lying from 5:00 AM to 11:00 PM in Chinatown, downtown, McCully-Moiliili, Waipahu, Kalihi, and Kailua. Bill 48 still needs to be heard by the City Council's Zoning and Planning Committee and will need a final vote by the full City Council before coming to the Mayor's desk for his signature.

Opponents of the bills argue that they are unconstitutional and immoral.  They believe that the government is criminalizing being homeless and feel that the money spent enforcing these laws would be better served by building more housing and providing more services for those who need it.  Several organizations have stated that they would challenge the constitutionality of these bills in court.

Source: Honolulu Star Advertiser, 9-17-2014, www.staradvertiser.com
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Over Half of the Top 20 Beach Housing Markets Are in Hawaii

According to a report issued by RealtyTrac, 11 of the top 20 beach housing markets in the United States are located in Hawaii.  The California-based research company conducted their studies based upon the average temperature, percentage of sunny days, percentage of days with good air quality and crime rates.  The top 20 markets were then selected provided that they had a median value of below $1 million.  Daren Blomquist, the vice president at RealtyTrac, explained, "Buying near the beach is one of the best ways to ensure a property will appreciate in value. Whether buying for retirement, a vacation home or a primary residence, homes located in quality beach towns benefit from virtually unlimited demand and a finite supply of land to build on."

Ranking third on the list was Waianae, located on the Leeward Coast of Oahu.  Waianae has an average temperature of 76 degrees, 74 percent sunny days, 100 percent days with good air quality, and a crime grade of a B.  It also has a relatively low median home value at $309,328. The other Hawaii beach housing markets to make it in the top 20 were Wailuku (Oahu) at fourth place, Kahului (Maui) seventh place, Ewa Beach (Oahu) at eighth place, Kihei (Maui) at ninth place, Waipahu (Oahu) at tenth place, Lahaina (Maui) at 12th place, Honolulu (Oahu) at 13th place, Pearl City (Oahu) at 14th place, Kaneohe (Oahu) at 15th place, and Kailua at 18th place. 

Source: Honolulu Star Advertiser, 5-24-2014, www.staradvertiser.com
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Target to Open Kailua Store in March 2015

According to a press release by Target Corp., they will be opening their Kailua store in March 2015.  Target had planned to open the store this October, but construction was delayed when an archaeological study discovered iwi kupuna, or Native Hawaiian skeletal remains, on the site.  When completed, the Kailua Target will have a total of 134,000 sq ft of interior space and will provide jobs to approximately 300 workers.

Source: Honolulu Star Advertiser, 4-3-2014, www.staradvertiser.com
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Alexander & Baldwin Inc Downtown Kailua Purchase Update

Alexander & Baldwin Inc purchased approximately 70 percent of the commercial zoned land and approximately 90 percent of the retail land in downtown Kailua last month pas part of its $373 million purchase of land from the Kaneohe Ranch Co. and the Harold K.L. Castle Foundation.  President and COO of Alexander & Baldwin, Chris Benjamin, stated, "Not much is going to change any time soon.  We are proud to be part of the Windward Oahu community and look forward to a long-term relationship."

Alexander & Baldwin owns approximately 87,000 acres of farmland in the Hawaiian Islands.  They also own 45 commercial real estate properties across the nation with a total of 8 million square feet of retail, office and industrial space.  The purchase of the downtown Kailua land added another 386,000 sq ft of retail and light industrial spaces including the land under Whole Foods Market, Longs Drugs, Foodland, Times Supermarket, Safeway, Macy's and other businesses.

Source: Honolulu Star Advertiser, 12-21-2013, www.staradvertiser.com
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Alexander & Baldwin Announced As Company That Purchased Kaneohe Ranch and Castle Foundation Land

Alexander & Baldwin has announced that they were the ones who purchased approximately 650 acres of land owned by the Kaneohe Ranch Company and the Harold K.L. Castle Foundation.  The Hawaii based company purchased the land for a total of $373 million.  While most of the 650 acres are zoned as agricultural land, and therefore not especially valuable, the purchase did include 36 acres of commercial land in Kailua Town.  Alexander & Baldwin chairman and CEO, Stan Kuriyama, stated, "It is a portfolio that cannot be replicated. An acquisition of this scale and quality rarely occurs in Hawaii."

President and COO of Alexander & Baldwin, Chris Benjamin, added, "Kailua is a thriving and vibrant community, and we intend to partner with the community in maintaining the livability, desirability and beauty of Kailua town. We take a long-term perspective on our community development efforts and strive to work closely with communities to meet their changing needs."

Source: Honolulu Star Advertiser, 11-21-2013, www.staradvertiser.com
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New Gated Community in Kailua Criticized Due to Abuse of Agricultural Land Status

Bridge Real Estate Hawaii has announced a plan to sell 23 agricultural land lots in Kailua on the hillside of Mount Olomana as a part of a new gated community neighborhood.  Advertised as "luxury Hawaiiana living at its finest", the lots will be over $1 million each and would require buyers to live on the property and use it for agricultural purposes.  Owners would be permitted to build one or two "farm dwellings" on each lot.  Lots are expected to go on sale over the next couple of months.

However, many area residents argue that having a couple of fruit trees, ornamental plants, herbs and other specialty crops is not the same thing as using agricultural land the way it was intended.  Chairman of the Kailua Neighborhood Board, Chuck Prentiss, stated, "It seems to be a way to get around having agricultural land protected.  It really is gentlemen's estates."

Source: Honolulu Star Advertiser, 7-29-2013, www.staradvertiser.com
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Castle Foundation to Sell 60 Properties Valued at $600 Million

The Kaneohe Ranch and the Harold K.L. Castle Foundation have announced that they would like to sell 60 of their real estate holdings, valued at approximately $600 million. The properties are located both in Hawaii and on the mainland United States and are expected to bring in between the mid-$500 million to the low-$600 million range.  The majority of the Hawaii properties are located in Kaneohe and in Kailua, leaving many residents of those two neighborhoods nervous of the direction that a potential buyer would like to take the commercial properties.  Kailua resident Rusty Niau commented that Kaneohe Ranch has "pretty much tried to keep Kailua Kailua, like what it was before.  If they sell it, who knows what will happen. Is Kailua going to turn into another Waikiki?  We don't want to change the character of Kailua.  We'd like to keep Kailua as much country as we can. It is a unique town. That's part of the beauty. At any point in Kailua you can look up and see blue skies. I don't want to be stifled or closed in by high-rises."

Jack Aaron, president of Aaron's Dive Shops, added, "I'm scared if it's a mainland company coming in.  The one thing about Kaneohe Ranch is they definitely employ local people, and they seem to really care about the tenants and the properties they manage. Will new management be going to want to raise rents a lot and change the way things are? The fear with new people is if they're all from the mainland, then you're going to have that mainland mentality."

Below is a list of properties that are being put up for sale:

KANEOHE RANCH PORTFOLIO ASSETS

Kailua Properties:
Kailua Town Center III
First Hawaiian Bank
Kailua Shopping Center
Kailua Foodland Marketplace
Straub Building
Hahani Plaza
789 Kailua Road Davis Building
776 Kailua Road
Kalapawai Cafe & Deli
Hekili Business Center
171 Hamakua Drive
156 Hamakua Drive
134 Hamakua Drive
160 Hamakua Drive
380 Hahani parking lot
Windward Town & Country I & II
Kailua Post Office
McKenna Hamakua Drive
Kanoa Estate
167 Hamakua Drive
150 Hamakua Drive
Midas
McKenna Windward Ford & Wheels 4 Less
Napa Auto Parts
Kailua Beach Center
Pali Palms Plaza and Pinky’s
Koolau Farmers Garden Center
Agricultural land
Sprint PCS Tower
Triangle parcel

Kaneohe Properties:
Windward City Shopping Center
Kalaheo Hillside
Telecom Licenses
Hawaiian Telecom

Honolulu Properties:
Kaimuki Shopping Center
Servco Honolulu
Tesoro Honolulu

Mainland Properties:
FBI Building in Mobile, Ala.
Nob Hills Foods in Mountain View, Calif.
Kohl's in Phoenix Red Sunset Apartments in Gresham, Ore.
Lowe’s San Jose in San Jose, Calif.
Miami Marriott Biscayne Bay in Miami
2000 M Street, NW in Washington, D.C.
One Bellevue Center in Bellevue, Wash.
Stanford Corporate Center & Telos Health Club in Dallas

CASTLE FOUNDATION PORTFOLIO ASSETS

Kailua Properties:
Kailua Town Center
151 Hekili St.
Kailua Village Shops
143 Hekili St.
Merchant’s Row
146 Hekili St.
Macy’s
Pali Lanes Bowling Center
HIC Surf
Macy’s parking lot
Aikahi Park Shopping Center
7 Eleven Shopping Center
Former Tesoro Kailua

Kaneohe Properties:
Servco Windward Toyota

Source: Honolulu Star Advertiser, 7-16-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Castle Foundation To Sell 38-Acre Town Center in Kailua

The Harold K. L. Castle Foundation has announced that they will be selling a real estate portfolio which will include a total of 600 acre of land including 38-acres in the heart of Kailua. The 38-acre town center in Kailua includes all of the land under the Foodland, Safeway, Whole Foods, Times, Longs Drugs, and Macy’s. The other holdings include the land under the Kaimuki Shopping Center, Windward City Shopping Center, Pali Palms Plaza, and land in Florida, Alabama, California and Arizona. No specific price was mentioned, but when the Castle Foundation valued its assets in 2011, they came up with a value of $150 million, which included all of their real estate holdings and other investments.

The Castle Foundation hopes that the sale would help generate a big infusion of cash funds, which they will in turn use to fund grants to nonprofits that benefit Hawaii residents. Founder Harold Kainalu Long Castle purchase 9,500 acres of land in Kailua in 1917 and helped establish the town of Kailua by donating land for churches, Castle Hospital, schools including Castle High School and Hawaii Loa College, and the land that became Marine Corps Base Hawaii. Castle passed away in 1967 and his will donated most of his real estate holdings to the Castle Foundation. To date, the foundation has awarded $176 million in grants.

Source: Honolulu Star Advertiser, 5-18-2013, www.staradvertiser.com
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Hawaii Real Estate – Feeding Pigeons Create Neighborhood Feud, Possible Legislation

Jason Nagashima is a resident of the Coconut Grove subdivision in Kailua. His next-door neighbor, Eric Poohina, has been feeding several hundred feral pigeons multiple times per day over the last six years, despite repeated requests to stop. Nagashima stated, “It’s exasperating. We’ve called the Department of Health, Humane Society, vector control companies, nobody raises an eyebrow. (There’s) no way you can get something done.” Poohina, stated that he connects with the birds because he is a descendant of Queen Kaahumanu, whose name means “bird cloak”. Poohina added, “It’s a cultural thing for me to see them, and I only see them in my area in my house.”

Rodney Cambra, who lives on the other side of Poohina’s lot, obtained a permit from the Department of Land and Natural Resources to shoot wild birds on his property. According to Cambra, in the past 18 months he has shot about 100 birds in his yard. Cambra stated, “He (a DLNR representative) told me, ‘As long as the birds are wild, he has no cage, they’re ruining your property, you have the right to protect your property.” This has made Poohina very unhappy and has created friction in the neighborhood.

State lawmakers are working on a legislation that could address concerns like Nagashima’s and Cambra’s, and would make similar problems a potential nuisance violation and would authorize the Department of Health to investigate complaints made by the public. State Representative Karl Rhoads, commented, “It was just appalling what was going on. There were feathers everywhere, and bird excrement, and big flocks of birds flying around all the time. I thought it was more than just a minor annoyance.”

Opponents to the bill feel that this would be a “personal and private problem” between neighbors and the Legislature should not become involved. The Department of Health also commented that it does not have enough staff to investigate complaints of feral bird nuisance feedings. Deputy Director for Environmental Health, Gary Gill, added, “In order to find something is injurious to public health, which is what the threshold to public nuisance is, you have to show that it has an impact; for example, it could cause disease. So because something is dirty or noisy or ugly, which is the common use of the word ‘nuisance,’ doesn’t mean that the Department of Health will have the ability to enforce against that behavior.”

Source: Honolulu Star Advertiser, 4-11-2013, www.staradvertiser.com
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Kailua Real Estate – Target to Arrive October 2014

Target Corporation has announced that their long anticipated Kailua store will be scheduled to open in October 2014. The Kailua Target was scheduled to open in July 2012, but construction was halted after an archaeological study discovered two unidentified native Hawaiian skeletal remains. Target is working with the State Historic Preservation Division and the Oahu Island Burial Council to approve a burial plan. Donna Egan, the spokewoman for Target, stated, “We’re working closely with both of those organizations (Historic Preservation Division and Burial Council) and ultimately are deferring to them out of respect for the cultural descendants. We’re waiting to hear what the next steps are. Until then we are in a holding pattern, but certainly we’re anticipating moving forward sooner rather than later.”

Once complete, Target is expected to employ about 300 workers and generate another 250 construction jobs.

Source: Honolulu Star Advertiser, 5-11-2013, www.staradvertiser.com
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Kawainui Marsh in Kailua Undergoes Restoration

The U.S. Army Corp of Engineers is working together with the Hawaii Department of Land and Natural Resources to help restore the Kawainui Marsh in Kailua. The 830 acre wildlife habitat is the largest remaining wetland in Hawaii and the home of many endangered Hawaiian waterfowl. Experts hope that the restoration will increase the number of aeo (Hawaiian stilt), alae ula (Hawaiian moorhen), alae keokeo (Hawaiian coot) and koloa maoli (Hawaiian duck). The project is 75 percent federally funded, while the Department of Land and Natural Resources will pay for the remaining 25 percent. The entire restoration is expected to cost $6.4 million and hopes to be completed by the Spring of 2013.

Source: Honolulu Star Advertiser, 1-7-2013, www.staradvertiser.com
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Kailua Real Estate – Ban on Commercial Activity at Kailua Beach Stands

On July 26, 2012, Mayor Peter Carlisle vetoed Bill 11 which banned all commercial activity at Kailua Beach Park. However, the Honolulu City Council voted again on August 15, 2012 and in a 7 to 2 vote overrode the Mayor’s veto. Ikaika Anderson, one of the City Councilmen, stated, “It’s not that we do not welcome the tour bus companies and their visitors. The fact is we lack the space to accommodate them.”

Most Kailua residents are happy about the ban on commercial activities at their beach park. However, there are several kayak companies who have announced that they will be filing a lawsuit against the City Council for exceeding their authority.

Source: Honolulu Star Advertiser, 8-17-2012, www.staradvertiser.com
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Commercial Activity Banned at Kailua and Kalama Beach Park

The Honolulu City Council voted 7 to 2 approving a ban on all commercial activity at Kailua Beach Park and Kalama Beach Park.  Residents had complained that the once tranquil beaches had become overrun by commercial vendors who brought in kayakers, kite boarders, and busloads of tourists.  The ban will be in place 7 days a week, 24 hours a day.

It should be note that the ban does not stop people from renting kayaks, kite boards or other recreation equipment and using them at these beach parks.  It only stops businesses from operating at Kailua and Kalama Beach and dropping off their customers with their equipment there.  Still, most Kailua residents are pleased with the ban and feel that it will dramatically reduce the number of tourists using the beach park.

Source: Honolulu Star Advertiser, 7-12-2012, www.staradvertiser.com

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Kailua Real Estate – Wastewater Tunnel Plans Causes Concerns for Residents

The City and County of Honolulu has announced that they will be building a 3.2 mile long wastewater tunnel that will stretch between Kaneohe and Kailua at a cost of $200 million.  City officials noted that the tunnel will be an average of 100 feet below ground and will be able to transport sewage to the Kailua Regional Wastewater Treatment Plant for the next 150 years.  According to the project’s design engineer, Wesley Yokoyama, the tunnel should have no effect on any of the surrounding communities.  Yokoyama stated, “Experts feel there will be very little risk to structures.”

However, there are some Kaneohe and Kailua residents who disagree with the city and are very concerned about the potential impact that this tunnel could have on their properties.  For example, Collette Madden, the board president of the Healani Gardens Homeowners Association stated, “There’s going to be cracks in our walls and foundations.  All of the community is concerned. We want some indemnification.”  The city has stated that they would meet with residents and will provide additional information about the project.

The city hopes to start the project in December 2012 and has a completion date projected for June 30, 2018.

Source: Honolulu Star Advertiser, 6-18-2012, www.staradvertiser.com

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Three Hawaii Beaches Make Dr. Beach's Top Ten List

Each year, Florida International University Professor, Stephen Leatherman, also known as “Dr. Beach”, comes up with a top ten list of best beach in the United States.  Dr. Beach basis his rankings on a wide range of factors including envirnomental quality, sand quality, and safety for swimmers.  Once a beach hits the #1 ranking, they are ineligible to make the top ten in future years.  This year, three beaches in the Hawaiian islands have made his top ten list.  They include Kahanamoku Beach in Waikiki (#2), Hamoa Beach in Hana, Maui (#5) and Waimanalo Bay Beach Park (#7).

Since Dr. Beach has been conducting his survery in 1991, a total of 12 beaches in Hawaii have hit the #1 spot.  The include Hanalei Bay (Kauai), Fleming Beach Park (Maui), Hanauma Bay (Oahu), Kailua Beach Park (Oahu), Lanikai Beach Park (Oahu), Kaanapali (Big Island), Poipu Beach (Big Island), Kaunaoa Beach (Big ISland), Wailea Beach (Big Island), Hulope (Big Island), Hapuna (Big ISland), and Kapalua Bay Beach (Big Island).

Source: Honolulu Star Advertiser, 5-25-2012, www.staradvertiser.com

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Kailua Neighborhood – No Commercial Activity at Kailua Beach Park? – Bill 11 Divides Community

Honolulu City Council representative, Ikaika Anderson, has proposed Bill 11, which would create a complete ban of all commercial activities at Kailua Beach Park.  The residents that side with Anderson feel that kayak rentals and other water sport businesses have ruined the quiet, residential feel of Kailua Beach.  These residents argue that they do not want Kailua Beach to become another Waikiki.  Opponents of Bill 11 argue that the commercial activities have generated much needed jobs and has helped the community’s economy.

According to Bill 11, all commercial activities would be halted at Kailua Beach.  This would include commercial tour buses driving through the parking lot, to having kayak or kite-surfing rentals.  The only exception under Bill 11 would be made for commercial filming.  The Bill will now go before the full City Council for a public hearing.

Source: Honolulu Star Advertiser, 5-7-2012, www.staradvertiser.com
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North Shore Neighborhood – Kahuku, Not Kailua, Top Landfill Spot

A few days ago, SMS Research, an independent consultant to the City and County of Honolulu, had issued a report stating that Ameron Quarry in Kailua was the best spot to install a new landfill.  However, James Dannemiller, the president of SMS Research, just corrected his statement and noted that he had entered the data incorrectly and that the number one spot was actually located in Kahuku in the North Shore.  Dannemiller stated, “Working with the committee, I made data entries in real time and while doing so, an inadvertent data error occurred.  Per SMS policy, we verified the data integrity over the weekend. During this procedure I discovered the error and corrected it. The final ranking has been thoroughly verified.”

However, members of the Kahuku neighborhood question the sudden change in rankings and wonder if pressure from Kailua residents and politicians had anything to do with the reversal.  Dannemiller insisted that the change in ranking had nothing to do with the politics of the situation.

Ernie Martin, the City Council Chariman who represents the Kahuku Area on the North Shore of Oahu, expressed his concern.  He noted that SMS Research’s newly released corrected ranking has the top four landfill sites all located on the North Shore.  Martin stated, “The top four (sites) are in my district. But I want to reassure my constituents that there still needs to be a significant study and review whether these sites are feasible.  And as long as I serve on the Council, I’m going to ensure that a thorough analysis is done before we would even consider having posting a landfill in any community in my district and I’m sure any council member would say the same.”

Honolulu Mayor Peter Carlisle reminded the public that Oahu desperately needs to replace its current landfill location at Waimanalo Gulch, located in Leeward Oahu.  Carlisle commented, “It’s obviously very important that this process be handled correctly, and be completely aboveboard.  At least the error was discovered and corrected quickly, so that we can proceed with a more thorough site analysis before making a proposal to the City Council.”

Source: Honolulu Star Advertiser, 4-26-2012, www.staradvertiser.com

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Kailua Neighborhood – Whole Foods Market Holds Grand Opening

Whole Foods Market held its grand opening, yesterday, April 18, 2012.  Whole Foods is a nation wide grocery chain which specializes in natural and organic food.  This will be the company’s third store in the Hawaiian Islands, with the other two stores located in Kahala Mall on Oahu and on the island of Maui.  The Kailua store’s team leader, Tim Talkington, stated, “Our team members have been overwhelmed by the outpouring of support and warm Windward welcome that we have received from the community and all our shoppers on our first day of business here in Kailua.”

Source: Honolulu Star Advertiser, 4-19-2012, www.staradvertiser.com

Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®

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