Waikiki Commercial Properties May Pay Special Tax to Maintain Waikiki Beach

The Honolulu City Council is being presented with bills that would allow the Waikiki district to tax the owners of all commercial properties in Waikiki an additional 7.63 cents per $1,000 of assessed value.  By levying this tax, the Waikiki district hopes to collect approximately $600,000 a year from these commercial properties to help maintain the sand on Waikiki Beach.  The balance of the $1.3 million that it costs to retain sand on Waikiki Beach will be paid for by the state Department of Land and Natural Resources.  According to the DLNR, the beach is eroding at a rate of about one foot per year.  The beach will be need to be replenished every five to ten years to keep up with this loss.

Commercial property owners in Waikiki already pay between 12.5 cents to 50 cents per $1,000 of assessed value into the Waikiki Business Improvement Fund.  This is in addition to their regular property tax bill.  The Waikiki Business Improvement Fund pays for the streetscape maintenance, the "aloha ambassadors" in Waikiki, and overtime hours for the Honolulu Police Department officers.

Source: Honolulu Star Advertiser, 1-18-2015, www.staradvertiser.com
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Institute of Human Services Show Initial Success with Outreach Program in Waikiki

The Institute of Human Services announced that they have experienced initial success with their full-time homeless outreach program in Waikiki, and have already helped 63 homeless people into shelter or housing since they started in November 3, 2014. The program is funded through a joint effort by the city's Housing First program as well as financial support from the Hawaii Lodging and Tourism Association. Connie Mitchel, the executive director of IHS, stated that the program hopes to serve 300 homeless people during its first year. As a point of reference, during the 2014 Statewide Homeless Point-in-Time Count, it was recorded that there were 541 homeless people in Waikiki in January 2014, but IHS believes that the actual number is slightly higher.

The Hilton Hawaiian Village plans to host a fundraising concert at the end of April to raise at least $1 million for the Institute of Human Services to continue its work to reduce the homeless population in Waikiki. Jerry Gibson, the area vice president for Hilton Hawaii, commented, "We want the community to line up behind us for IHS so that we can put a real big effort into giving them as much as we can so that they can have the tools to do their job to end homelessness." Honolulu Mayor Kirk Caldwell stated, "What's taking place in Waikiki is a testament to what can happen when the public, private and nonprofit sectors work together, and we hope to continue this collaborative approach."

Rick Egged, the president of the Wai­kiki Improvement Association, added, "Frankly, I agree with those that say the problem is not solved, but I believe that they've made fantastic progress. The fact that we are on the right track shows that we can get results with the money that's been raised. The outreach and services that are happening now weren't available a year ago."

Source: Honolulu Star Advertiser, 1-14-2015, www.staradvertiser.com
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Severe Erosion Raises Concern About Waikiki's Sandy Beaches

In June 2012, the state of Hawaii's Department of Land and Natural Resources completed a beach replenishment project which added an additional 24,000 cubic feet of offshore sand to Waikiki Beach.  The project cost $2.2 billion and was funded by the joint effort of the state and Waikiki hotels.  However, a recent study by the University of Hawaii has found that one-fourth of that sand has already disappeared.  The DLNR has commented that the state and city are working together to study the recent erosion along Waikiki Beach and hopes to come up with new solutions.  However, they have added that since 1939, there have been at least 10 sand replenishment projects to Waikiki Beach.

Source: Honolulu Star Advertiser, 1-5-2015, www.staradvertiser.com
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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
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Concern Mounts on Where the Waikiki Homeless Will Go

At the start of this year, Honolulu officials estimated that there were 560 chronically homeless people living on Oahu, out of which approximately 30 percent, or 170 people, lived in Waikiki.  Last month, the Honolulu Police Department begun enforcing a new law which prohibits lying and sitting on Waikiki's public sidewalks.  It is estimated that about 50 to 60 percent of the homeless population in Waikiki has moved away from Waikiki.  However, there has been conflicting information as to where the homeless have gone or plan to relocate to.

According to Ron Lockwood, the chairman of the McCully-Moiliili Neighborhood Board, there appears to be an increase of homeless camped out in his board's jurisdiction. Lockwood stated that the homeless are sleeping on side streets to avoid being harassed by law enforcement officers.  Neighborhood boards in Ala Moana, Kakaako, and Chinatown are also concerned if they would see an surge in homeless on their streets.  Mayor Kirk Caldwell has stated that he is committed to its "Housing First" Program which would help to provide permanent housing to those deemed chronically homeless.  However, while the funds are in place to build these units, they are still months away from completion.

Source: Honolulu Star Advertiser, 10-12-2014, www.staradvertiser.com
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No More Overnight Camping on Fort DeRussy Beach in Wakiki

Last month, the City and County of Honolulu passed a new law which banned sitting or lying on sidewalks within the Waikiki Special Design District.  In response, many homeless decided to camp out overnight on the Fort DeRussy Beach in Waikiki, as its jurisdiction fell under the state of Hawaii's Board of Land and Natural Resources and could not be regulated by the Honolulu Police Department.  This led to complaints from hotel operators, residents and community leaders in Waikiki.

In the latest development, the state Board of Land and Natural Resources has voted unanimously to issue the city a one-year revocable permit which allows the Honolulu police and other city workers to enforce laws at Fort DeRussy Beach for "health and safety reason."  The state will continue to be responsible for erosion control, sand replenishment and sand cleaning on the beach during the time of the permit.

Source: Honolulu Star Advertiser, 10-11-2014, www.staradvertiser.com
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Longs Drugs to Open First Location in Waikiki

Longs Drugs has announced that we will opening their very first Waikiki location at the Bank of Hawaii Waikiki Center, where the former Teddy Bear World store was located.  The tentative plan is complete the two-story, 20,000 sq ft location by the end of 2015.  Waikiki currently has only two pharmacies, though there are many ABC Stores and Lawson convenience stores that sell over-the-counter medications.  Rick Egged, the president of the Waikiki Improvement Association, commented, "We think it's a great idea. I've actually wanted one in Waikiki for a long time. It's a great addition to Waikiki because it'll provide services that will be much in demand, both from the standpoint of our visitors and even our residents and people who work in Waikiki."

Source: Honolulu Star Advertiser, 10-9-2014, www.staradvertiser.com
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Solution to Homeless at Waikiki's Fort DeRussy Beach Sought

Last month, the Honolulu City Council approved several bills that would prevent people from sitting or lying on sidewalks in Waikiki and that would ban public urination and defecation. These new laws, coupled with existing park closures and no-camping polices were part of Mayor Kirk Caldwell's strategy of compassionate disruptions, which were meant to have the homeless population find help, government assistance and long term housing. However, many of the homeless found a loophole in the law and have simply moved themselves to Fort DeRussy Beach and made themselves at home.

The challenge stems from the fact that the Honolulu police department has no jurisdiction over Fort DeRussy Beach.  The stretch of beachfront that runs from the Hale Koa Hotel to the Outrigger Reef Hotel is under the jurisdiction of the state Department of Land and Natural Resources.  Police Captain Lisa Mann, who is in charge of District 6 Waikiki, stated that the police have been getting complaints daily about the homeless who have taken over Fort DeRussy Beach.  Mann stated, "The area is under state jurisdiction and the district attorneys won't prosecute."

Mayor Kirk Caldwell's office has stated that they are in preliminary discussions with the DLNR about how to resolve the jurisdictional issues of Fort DeRussy, but it could take months since it would require approval from the state Board of Land and Nature Resources. Jesse Broder Van Dyke, Caldwell's spokesman, stated, "The mayor is definitely interested in this measure, but he wants to make it clear that it could only happen with the approval of DLNR."

Daniel Raffone, a new resident to Waikiki, stated, "Homeless people are everywhere. It's a huge contrast to Hilton Hawaiian Village and shops like Armani and Tiffany's. If this continues, the tourists will stop coming to Hawaii. They'll say, 'Hawaii was great and beautiful, but there were so many homeless people and drugs all over. We're going to take our $5,000 elsewhere.'"

Source: Honolulu Star Advertiser, 10-3-2014, www.staradvertiser.com
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Zip Line Proposed at Hilton Hawaiian Village Waikiki Beach Resort

Waikiki Beach Activities Ltd., a beach activities operator, is requesting permission from the state Board of Land and Natural Resources to build a zip line at the Hilton Hawaiian Village Waikiki Beach Resort.  Under the proposal, the zip line would sail guests over the oceanfront lagoon and would have an estimated ridership of about 250,000 people per year. In their proposal to the DLNR, Waikiki Beach Activities stated, "Due to the growing popularity and demonstrated safety of zip-line activities throughout the Hawaiian Islands, WBA (Hilton) proposes to operate a daytime zip-line experience that would provide the general public with a one-of-a-kind sightseeing experience."

Some Waikiki residents aren't too sure that zip-lining would be a good fit for an urban beachfront resort area.  In response to that, Waikiki Beach Activities admitted that they were in the early stages of exploring the feasibility of the plan and noted that they would like to conduct a test study to provide information about the visual impact, ideal position and resolve any engineering problems prior to designing and developing the actual zip line. Jerry Gibson, area vice president for Hilton Hotels & Resorts, stated, "We want to test to see if it's viable. It would be kind of fun if we can make it work. This is something that could be very exciting."

Source: Honolulu Star Advertiser, 9-26-2014, www.staradvertiser.com
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Mortgage Lender Starts Selling Units in Ilikai Apt Bldg

In 2009, iStar Financial Inc. acquired four entire floors in the Ilikai Apt Bldg in Waikiki through foreclosure.  With a total of about 178 units in its inventory, iStar Financial has just announced that they will be releasing a total of 59 renovated and furnished units for sale, with prices starting at about $399,000 for a 500 sq ft one bedroom unit and prices starting at about $1 million for a two bedroom unit with 1000 sq ft of interior.  The company's long term plan would be to liquidate their remaining unit inventory as well as finding buyers to purchase their retail, restaurant and commercial spaces that they own in the complex.  Ben Dookchitra, vice president of iStar, stated, "The demand was more than we expected. We've been positively surprised."

The Ilikai was built 1964 and has just over 1,000 units in the building.  Dookchitra stated that approximately 90 percent of the units in the building are rented out as vacation rentals.

Source: Honolulu Star Advertiser, 9-25-2014, www.staradvertiser.com
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Waikiki Homeless Move to Fort DeRussy Beach

With the recent ban on sitting and lying on Waikiki sidewalks enacted into law, some of Waikiki's homeless residents have decided to move themselves to Fort DeRussy Beach. which stretches from in front of the Hale Koa Hotel and the Outrigger Reef on the Beech. The Honolulu Police Department is unable to anything about the new homeless campers as Fort DeRussy Beach falls under the jurisdiction of the state Department of Land and Natural Resources.  The military police, who patrol the grounds of the Hale Koa Hotel, have stated that their jurisdiction ends at the sidewalk. Tom Brower, the state representative for Ala Moana, Waikiki and Kakaako, commented, "Now that the homeless won't be permitted on Wai­kiki sidewalks, it's no surprise that they'll want to be on the beaches,"  Waikiki resident Steve Caplan noted, "What has occurred in just the last few weeks is a massive influx of tents and individual sleepers from the 10 p.m.-to-6 a.m. range because they know they are in a safe zone exempt from HPD control. It's Little Switzerland."

Lisa Mann, the acting commander of the Waikiki police force stated, "It has recently been brought to our attention that the number of campers has grown. HPD has been advised recently that they can't move them because the area is under state jurisdiction and the district attorneys won't prosecute."  Mann added that they could enforce rules prohibiting camping at Fort DeRussy Beach, but the proper signs would have to be posted first. Deborah Ward, the spokeswoman for the Department of Land and Natural Resources, stated, "The department is currently reviewing jurisdiction issues and is not prepared to comment on these questions."

Barry Wallace, the executive vice president of hospitality services for Outrigger Enterprises, commented, "The current level of homelessness is just awful. It's very frightening to our guests and employees. It's unsanitary, unattractive and totally not what people want to see when they come to Hawaii. We supported the sit-lie bill with the idea that it would give police a tool to move people off the streets and connect them with shelters and help. We're even working with a nonprofit to provide more services. I would hate to think that there was one area in Wai­kiki where the rules didn't apply."

Source: Honolulu Star Advertiser, 9-20-2014, 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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Waikiki Sidewalk Bills Approved by Honolulu City Council

There are many Waikiki business leaders, residents and tourists who have become increasingly frustrated with the growing homeless population in their community.  Andrew Kawano, the executive vice president of Food Pantry Ltd. stated, "They go through our trash cans; they pull out anything that looks edible, like uneaten fruit. They eat it and they toss it on the ground. They panhandle and eat whatever they can get nearby the entrance. They defecate and they wipe their feces on the side of our building. They harass customers and use foul language. They walk through our store, making our customers uneasy and afraid."

In response, members of the Honolulu City Council have approved the following bills, which will now move to the mayor's desk for his signature: Bill 42 will ban people from sitting or lying on sidewalks in Waikiki.  Bill 43 will ban people from urinating or defecating in public places in Waikiki.  Bill 46 will impose a ban on urinating and defecating in public throughout the island of Oahu.  Violating these bills would be considered to be petty misdemeanors that could be punishable by up to a year in prison and a $1,000 fine.

Opponents of these bills feel that they are unfairly targeting and criminalizing the homeless.

Source: Honolulu Star Advertiser, 9-11-2014, www.staradvertiser.com
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Developer Hopes to Build Assisted-Living Tower in Waikiki

Developer PRW Hawaii LLC hopes to build an assisted-living tower at 1700 Kalakaua Avenue in Waikiki, provided that they can acquire the land and gain the necessary permissions and permits from the state and city. Under their proposal, PRW would like to build a 250 foot tall tower with as many as 250 residential units for seniors.  Residents would pay a one-time entry fee of between $750,000 to $1,000,000 for units with 1,000 sq ft of living space on average, and would pay additional monthly services fees.  However, residents will not actually own their unit.  Residents who decide to move out or die would get between 75 percent to 90 percent of their entry fee refunded to them or to their estates.  This model is similar to the one currently used by Kahala Nui.

The project will still have to obtain agreements to buy the land from multiple owners as well as work with the city Department of Planning and Permitting to rezone the parcel to allow for height increases and affordable-housing requirement issues.  Principals at PRW Hawaii LLC expects that it would take about a year to complete development arrangements and another 18 to 22 months to build the tower after that.  The developer is currently welcoming feedback from the public.

Source: Honolulu Star Advertiser, 9-9-2014, www.staradvertiser.com
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Cinnamon's to Open Restaurant in the Ilikai Condominium and Hotel in Waikiki

Cinnamon's, whose original restaurant opened in 1985 in Kailua, will be opening its second location in Hawaii this November at the Ilikai Condominium and Hotel in Waikiki.  The restaurant will be open from 7:00 AM to 10:00 PM on most weekdays and until midnight on Fridays and Saturdays.  Alexander Nam, the company president, stated, "We've been looking for two years. Kailua's pretty much doing all it can. We can't really expand in that space anymore. We get a lot of people from town side, Leeward side and tourists, so it just made sense. We're proud to be able to go to Waikiki and offer a more accurate reflection of Hawaii and the islands versus the plastic aloha that's already out there. We have no idea what to expect. We're just excited to get in and see what the reaction is. It took 20 years to become an overnight success (in Kailua)."

Source: Honolulu Star Advertiser, 9-1-2014, www.staradvertiser.com
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Honolulu City Council Looks at Five Bills That Would Have Major Impact on the Homeless

The Honolulu City Council's Zoning and Planning Committee will be looking at five bills which, if made into laws, would have a huge impact on the homeless population of Oahu.  Three of the bills are focused on banning lying and sitting on public sidewalks in various areas around Oahu, with Bill 42 focusing on restrictions in Waikiki, Bill 45 imposing it island wide, and Bill 48 focusing on business districts in downtown Honolulu.  Meanwhile, Bill 43 would ban urinating and defecating in public areas of Waikiki, while Bill 46 would impose the same ban island wide.

Supporters of the bills state that the sidewalks should belong to pedestrians and that Oahu's sidewalks should be clear and clean for residents, businesses and visitors to use.  Opponents of the bills argue that they unfairly target the homeless population and the city should create shelters and services to help the homeless.  One online petition against the bills states, "The sidewalks are the only public place left for displaced persons to legally exist.  Those seeking this criminalization cannot succeed without the majority of local working-class people buying into their propaganda that displaced families threaten the livelihood of our state, which they clearly do not."

Source: Honolulu Star Advertiser, 8-26-2014, www.staradvertiser.com
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Waikiki Visitor Industry Hopes to Address Chronic Homeless Problem

Waikiki officials are very concerned with the chronic homeless problem in their neighborhood and are attempting to work with the Institute of Human Services and the Honolulu City Council to alleviate the problem.  Rick Egged, the president of the Waikiki Improvement Association stated that they hope to join forces with IHS to create services to help house the homeless. Egged stated, "A team from IHS has met with visitor industry leaders and, based on the way that they have reacted, I'm very optimistic that we can get it up and running by Jan. 1."

The City Council's Zoning and Planning Committee plans to meet on August 28 to review two bills that would prohibit standing and lying on sidewalks as well as urinating and defecating in public areas in Waikiki.  Ikaika Anderson, the Zoning Chairman, stated, "I do believe that the public urination and defecation bills pertaining to Waikiki and islandwide need to pass, but I'm also convinced that the administration needs to give the Council a definitive timetable for Housing First. It's unacceptable when they tell us it will be implemented in August and a few weeks later we hear that it will be October at the earliest. The Council appropriated more than $47 million to implement an affordable housing and Housing First strategy, and I suggest that the mayor release these monies in a timely manner."

Mayor Kirk Caldwell disagrees, and feels that the city should not implement the bans until it can house all of the estimated 5,000 homeless on Oahu.  Caldwell stated, "What we are left with is a problem that continues to fester with no additional tools to improve the situation."

Source: Honolulu Star Advertiser, 8-18-2014, www.staradvertiser.com
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City Officials Concerned that Waikiki Not Ready for A Major Hurricane

Officials from Honolulu's Department of Emergency Management are very concerned that Waikiki, Oahu's most densely packed area, is not ready in the event that a major hurricane were to strike. While most of the hotels meet monthly to review and update their disaster plans, the Department of Emergency Management noted that most of the condominiums and apartment building have no such plan in place, and are encouraging them to get prepared.  Many of Waikiki's building were built before stricter building codes required more solid, concrete construction.

Steven Businger, a meteorology professor at the University of Hawaii admitted that a major hurricane hitting the islands is a rare event, but agreed with city officials that the public should be ready and have a plan.

Source: Honolulu Star Advertiser, 8-4-2014, www.staradvertiser.com
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Royal Hawaiian Center Sold for $696.5 Million Leasehold

According to the Hawaii Information Service, the Royal Hawaiian Center has been purchased from J.P. Morgan Asset Management from Kamehameha Schools for $696.5 million Leasehold.  The sale included all of the mall buildings, but did not convey the underlying lands.  Kamehameha Schools has stated that they will not disclose the length of the lease, but it is generally speculated by real estate professionals that the lease will be for approximately 60 years.

Proceeds from the sale of the Royal Hawaiian Center will be reinvested to support Kamehameha School's operations.  The center was Kamehameha School's biggest single asset and the school decided to sell the property as a way of diversifying its roughly $9 billion investment portfolio.  Kamehameha Schools has announced that they would also be willing to sell the Hawaii Kai Towne Center and Windward Mall in Kaneohe in a similar leasehold sales transaction.  The value of these two properties combined is estimated at between $275 to $400 million Leasehold.

Source: Honolulu Star Advertiser, 7-30-2014, www.staradvertiser.com
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Second Ritz-Carlton Tower in Waikiki Approved

The City Department of Planning and Permitting has announced that they have approved the second Ritz-Carlton Residences Waikiki Beach luxury tower.  Developer Pacrep 2 LLC will be allowed to build a new 39-story, 350-foot tall mixed-use tower at 2139 Kuhio Avenue.  George Atta, the director for the DPP, stated, "In general the project will be of benefit to Waikiki, its businesses and nearby commercial establishments. Visitors will be welcomed at the project's ground level by an active landscaped open space featuring lush plant life, interactive uses, outdoor dining and gather space. The project will improve the streetscape along Kuhio Avenue, provide a pleasant pedestrian experience and promote social interaction."

Casey Federman, the authorized representative of Pacrep LLC's, stated, "Feedback from the community and DPP's guidance has resulted in a better plan overall for the Waikiki community. Our goal from the beginning was to create a landmark property and destination in Waikiki and also to lead the way in bringing new life and energy to an area of Kuhio Avenue that many feel needs revitalization."

Not everyone is happy with the decision.  Mark Harpenau, who lives at the Four Paddle condominium across from the Ritz-Carlton, stated, "It's too bad that the DPP wastes everybody's time because they obviously don't listen. There were strong negative comments from the Waikiki Neighborhood Board, and they ignored the Waikiki Special District guidelines. These are two massive ocean-facing buildings, and we're lucky we even got a 75-foot gap between them. It's not much. It's not really anything to be happy about. They've essentially given them carte blanche."

Source: Honolulu Star Advertiser, 7-19-2014, www.staradvertiser.com
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