Hawaii Real Estate and Economy

Saturday, November 3, 2012

Honolulu Rail Project – Federal Judge’s Decision Causes Further Disagreement

In 2001, former Governor Ben Cayetano and other opponents of the Honolulu Rail Project ruled a lawsuit against the city with 57 points of concern regarding the project. Earlier this week, U.S. District Judge Wallace Tashima, sided with the lawsuit on just 3 of the 57 points. Specifically, Judge Tashima stated that the city of Honolulu had (1) “failed to complete reasonable efforts to identify traditional cultural properties along the proposed 20-mile rail line and must do so now”, (2) “must re-evaluate the possibility of putting a tunnel under Beretania Street as an alternative to a portion of the elevated rail line” and (3) “reconsider the impact the project will have on Kakaako’s Mother Waldron Park.”

Both supporters and opponents of the $5.26 billion rail project feel that Judge Tashima’s ruling favors them. Long time opponent and mayor candidate, Ben Cayetano, stated, “It shows to the public that this project was rushed so badly that the city didn’t do the work it was supposed to do. It will set the project back, and it may kill the project. This project, for all the assurances given to the public, is really based financially on a house of cards.” Cayetano also believes that a supplemental Environmental Impact Statement would be needed based upon Judge Tashima’s ruling which may take several additional months of study and public hearing.

However, current Honolulu mayor, Peter Carlisle, disagrees with Cayetano and stated that Cayetano “is trying to blow up the parts of the ruling that suit his purposes. While the city did not win completely on all of the major points, the truth is that the issues that remain can and will be addressed in a responsible manner.” Carlisle added that he has not been able to speak with Federal Transit Administration (FTA) officials about Judge Tashima’s decision due to fact that FTA officials have been busy with the aftermath of Hurricane Sandy on the east coast.

Source: Honolulu Star Advertiser, 11-3-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, November 2, 2012

HMSA to Raise Premiums by Only 1.2 Percent

The Hawaii Medical Service Association (HMSA) has announced that they will be raising their medical premiums by just 1.2 percent next year. The increase will effect approximately 78,000 members, but HMSA officials are quick to point out that this is the lowest rake hike in over five years. HMSA spokeswoman Elida Yadal stated, “For several years now we’ve had programs in place aimed at slowing the growth of medical costs. These include our patient centered medical home program and our pay-for-quality programs with doctors, hospitals, and other health care providers. We’re optimistic that these programs are now starting to show results.”

Source: Honolulu Star Advertiser, 11-2-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Waikiki Real Estate – Island Colony Undergoes $6 Million Overhaul

The Island Colony Condominium Hotel, located at 445 Seaside Avenue in Waikiki, will be undergoing a $6 million overhaul and renovation. The hotel portion will now be managed by the Aqua Hotel Group and will rename their portion The Aqua Skyline at Island Colony. In addition to renovating over 110 guest rooms, the common areas will also under significant work. There will be a new front desk area, an upgraded swimming pool, a new fitness center and BBQ area, and there are even plans to add two dining venues to the property. Senior vice president of sales and marketing for Aqua, Elizabeth Churchill, stated, “Given the dramatic difference in overall guest experience, we felt it appropriate to rebrand this property with a name that more closely reflects the new look and feel of the hotel.”

Construction Industry Gaining Strength

According to a forecast released by the University of Hawaii Economic Research Organization (UHERO), Hawaii’s construction sector had been gaining strength and starting to recover, even if the Honolulu Rail Project remains on hold. According to UHERO, the number of commercial and residential building permits has increased, which will help the industry move forward. However, UHERO does acknowledge that the construction industry could use the huge boost that the Honolulu Rail Project would provide. The report stated, “We have pushed back our forecast for rail work by one year compared with our previous estimate. And of course we await the outcome of November’s mayoral election, which could affect rail prospects beyond that.”

The University of Hawaii Economic Research Organization predicts that construction jobs will increase by 0.6 percent in 2012 but will increase by 7.7 percent in 2013. The tiny gain this year would be the first percentage increase since 2007.

ONE Ala Moana to be Built Over Nordstrom’s Parking Lot

The Howard Hughes Corporation has announced their plans to build a new condominium tower at Ala Moana Shopping Center over the six story parking lot next to Nordstrom. The plans call for a 17 story tower,with a total of 206 units, to be completed in 2014. The project is currently named ONE Ala Moana, and will have units ranging in price from $500,000 to $9 million with an average price of $1.6 million. Chief Executive Officer of Hughes Corp, David Weinreb, stated, ”ONE Ala Moana will offer a one-of-a-kind lifestyle experience with the best in luxury retail and restaurants at your doorstep.”

Thursday, November 1, 2012

Kaiser Permanente Hawaii May Increase Rates on January 1, 2013

Kaiser Permanente Hawaii, the state’s largest health maintenance organization, has announced that they may increase premiums by 5.3 percent for members covered by employer sponsored health plans. According to Kaiser, the increase, which would take into effect on January 1, 2013, is due to escalating medical costs. Kaiser spokeswoman, Laura Lott, stated, “We continue to look for greater efficiency, redirecting resources to better meet evolving customer and member needs, and consolidating administrative functions to support standardization and simplification in process.” While many members have expressed concern about this proposed increase, this 5.3 percent is actually the lowest increase in years. Kaiser had raised their rates by 8.8 percent in 2012, 12.6 percent in 2011 and 10.7 percent in 2010.

Source: Honolulu Star Advertiser, 11-1-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Wind Projects To Help Hawaii’s Economy

According to a study conducted by the University of Hawaii Economic Research Organizations (UHERO), the creation of large-scale wind farms on the neighbor islands would have a “net positive effect” on the state’s economy. While it seemed obvious that the creation of wind farms would help reduce the cost of electricity, what was not clear how cost effective they would be. However, the study showed that wind energy would serve as a strong hedge against the potential rise of fuel prices as well as create jobs, increase spending and cut emissions. UHERO research fellow, Makena Coffman, stated, ”We looked at various scenarios and found that the economic impact was positive.”

Despite this study, there has been strong community opposition on the islands of Lanai and Molokai. Residents on these islands, where these wind projects would be built, are concerned that building giant wind turbines would ruin their island’s natural beauty and may damage cultural sites.

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