Gas Prices Increase to Over $4 a Gallon

According to AAA Hawaii, the average price for regular unleaded gas in the State of Hawaii is $4.04 per gallon. The city of Honolulu had the least expensive gas average at $3.98 per gallon, while the neighbor islands saw a slightly higher rate. AAA Hawaii Branch Supervisor, Cynthia Hall, commented, “Motorists in six states, Colorado  Idaho, Oklahoma  Minnesota, Utah and Wyoming, currently pay less than $3 a gallon at the pump, while the state average in Hawaii tops more than $4 per gallon. The highest average prices in the continental United States are found in California and also in the Northeast, where effects of superstorm Sandy continue to be felt.” The United States Energy Department noted that the national average for gas is $3.44 per gallon.

Source: Honolulu Star Advertiser, 1-12-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Kaiser Increases Premiums for 155,000 Members by 5.3 Percent

The state of Hawaii has given their approval to allow Kaiser Permanente Hawaii to increase their premiums by 5.3 percent for 155,000 of their members. This increase affects a total of 5,200 companies whose insurance is through Kaiser Permanente. Kaiser spokeswoman, Laura Lott, stated, “Rate adjustments are necessary to cover rising costs and continue delivering quality care. This rate adjustment is below the national health care cost projection for 2013 because we continually look for new and better ways to deliver high-quality, affordable care.”

However, many businesses owners feel differently. President of the Hawaii Business League, Tim Lyons commented, “Businesses are trying desperately to find ways to cut costs. Even though the economy’s showing some signs of improvement, there’s been no gangbuster solution. A lot of businesses would love to increase prices by 5 percent, but they just can’t or they’ll lose the business; one or the other. It seems (insurers) have this carte blanche for increases, and businesses that are paying it are having a difficult time increasing their own prices by even 1 percent.” The Hawaii Business League represents over 900 small businesses in Hawaii.

Source: Honolulu Star Advertiser, 1-12-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Liquefied Natural Gas Switch Could Save Hawaiian Electric Significant Money

The Hawaii Natural Energy Institute has just released a report stating that the Hawaiian Electric Company could save more then 50 percent at each of its two power plants by switching over to using liquefied natural gas instead of using its current fuel oil. According to the report, the state’s reliance on oil-burning power plants is the primary reason why the state’s electrical costs are over three times higher then the national average. By switching to liquefied natural gas, Hawaii residents would see a significant decrease in their electric bills.

However, not all groups support the importation of natural gas. The Sierra Club argued, “Even assuming Hawaii can consistently access affordable LNG, it is unclear how infrastructure facilitating the use of fossil fuel energy will assist Hawaii in developing renewable energy resources. In fact, investors’ incentives to invest in innovative renewable energy technologies may diminish if opportunities to invest in more ‘familiar’ fossil fuel technologies become available.”

Source: Honolulu Star Advertiser, 1-12-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Island Air to Be Sold to Undisclosed Buyer

Island Air has announced that they will be selling their company to an undisclosed buyer. The deal is expected to close sometime within the next six to eight weeks. Current president of Island Air, Les Murashige, stated that due to his nondisclosure agreement, he could not identify the buyer or the price at this point. However, Muarshige did state that there are not any plans to play off any of the company’s 245 employees. Murashige commented, “This is very positive for all the employees of Island Air as well as the communities that we serve. It’s business as usual. At the appropriate time we’ll hopefully be adding more flights to the system.”

Island Air remains the third smallest interisland passenger service with approximately 5 percent of the market share. In comparison, Hawaiian Airline has the largest interisland market share at 84 percent, followed by go! airline with 8 percent. The company offers 322 flights per week and has a total of three planes in its fleet. Murashige added, “The finances of the company are fine. We’re struggling along. We’re OK, but we’re not making money hand-over-fist. I truly believe we can be the solid No. 2 carrier. We have no delusions of thinking that we can take over the world or be the No. 1 carrier. We’re just looking to be No. 2 as an alternative for people who want to travel on us.”

Source: Honolulu Star Advertiser, 1-11-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Kakaako May Get Fairgrounds Complex

Billy Balding has announced that he has arranged a lease of a 3-acre parcel in Kakaako from landowner Kamehameha Schools and hopes to build a year-round fairgrounds complex on the site. The lot is located near the Kakaako Makai Gateway Park and Balding plans to build a stationary surfing way, a skateboard park, a go-kart track, a miniature golf course, a rock-climbing wall, kiddie carnival rides and offer food and refreshments. The project still needs to obtain a development permit from the Hawaii Community Development Authority, the state agency that governs development in Kakaako and Balding still has to finalize the project details with Kamehameha Schools. However, if leasing and permitting goes through, Balding has stated that he would like to open his fairgrounds complex by this summer.

Source: Honolulu Star Advertiser, 1-11-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Queen’s Medical West Oahu to Open February 2014

The Queen’s Medical Center had purchased the closed down Hawaii Medical Center West at the end of 2012 and has begun a massive renovation project of the property. According to their most recent press release, Queen’s will be opening the hospital under the name Queens Medical Center West Oahu in February 2014. Queen’s would have spent a total of $70 million aquiring the hospital, completely renovating the interior and purchasing new equipment for their doctors. The new West Oahu campus would have a total of 22 emergency rooms and four operating tables upon completion. President of Queen’s Medical Center, Art Ushijima, stated, “We have a larger medical staff compared to what HMC or St. Francis had. There’s significant interest among physicians who would like to establish services in West Oahu. That’s one of the key things. There’s expertise from the medical center that we can certainly provide that may not have been there before. There’s been significant community interest in reopening that hospital. I would anticipate the community wants the hospital to be successful so there’s going to be active interest in supporting the hospital.”

According to regulatory filings with the State of Hawaii, Queen’s estimates that there will be a total of 3,300 inpatient admissions in their first year, as well as 27,100 emergency and outpatient visits. By their third year, the West Oahu campus is expected to grow to 3,500 inpatient admissions and 29,400 emergency and outpatient visits.

Source: Honolulu Star Advertiser, 1-10-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Maui Real Estate – Sales Data for the December 2012

Source: Realtors Association of Maui

Single Family Home Sales for the Island of Maui:
December 2012 – 82 Homes Sold – $511,750 Median Price
December 2011 – 79 Homes Sold – $411,000 Median Price

Condominium Sales for the Island of Maui
December 2012 – 137 Condos Sold – $382,450 Median Price
December 2011 – 89 Condos Sold – $304,000 Median Price

Source: Honolulu Star Advertiser, 1-9-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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