Unemployment Rate for Hawaii Drops to 4.7 Percent in May 2013

According to state of Hawaii's Department of Labor and Industrial relations, the unemployment rate dropped to 4.7 percent for the state in May 2013.  This figure represented the lowest rate in almost five years and was significantly better than the national average of 7.6 percent.  County data, which is not seasonally adjusted, showed that Honolulu County had the lowest unemployment rate at 4 percent.  Maui County posted a 4.8 percent unemployment rate.  Kauai County was at 5.3 percent and Hawaii (Big Island) County was at 6.5 percent.

Source: Honolulu Star Advertiser, 6-21-2013, www.staradvertiser.com
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404 Ward Avenue Condominium Building Update

The Howard Hughes Corporation is planning to build a 400 foot tower at 404 Ward Avenue in Kakaako.  The building's official name has not been announced yet, but tentative plans call for a total of 424 units, out of which 375 units would be reserved for residents earning between 100 to 140 percent of Honolulu's median income.  This would satisfy a requirement set forth by the Hawaii Community Development Authority to create housing for the "moderate income" group, or those who earn too much to qualify for low-income housing but who do not make enough to pay for market-priced housing.  This translates to a maximum annual income of about $85,000 for a single person or approximately $120,000 for a family of four.  Unit prices would range from between $400,000 to $700,000 in 404 Ward Avenue.

Howard Hughes Corp is requesting a variance from the Hawaii Community Development Authority to build the tower at 404 Ward Avenue just 120 feet away from the existing Kauhale Kakaako tower.  The rule currently states that a new building's broad side should be 300 feet away from an existing building's broad side.  The Hughes Corp is also requesting that they be allowed to build the tower's garage to 75 feet instead of the current limit of 65 feet to maximize the building's small footprint.  The HDCA will review the permit applications for another month and will make their decision by July 17, 2013.

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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The Collection Draws Opposition from Neighboring One Waterfront Tower

The Collection is a new luxury high rise condominium tower in Kakaako that will be marketed and developed by Alexander and Baldwin.  Located on the corner of Ala Moana Boulevard and South Street, the tentative plans for The Collection calls for 397 units in a 400 foot tower, an additional 54 units in a four-story building, and 16 townhouse units in a three-story building.  Fronting the main streets of the 3.3 acre lot would be several retail shops and restaurants.  It is anticipated that one-bedroom units will start at about $375,000, the two-bedrooms in the high 500,000s and three bedrooms will start at about $750,000.

However, owners of the the adjacent One Waterfront Towers condominium are telling the Hawaii Community Development Authority that the project should not be approved.  President of the AOAO for One Waterfront Towers, George Beavin, stated, "I don't believe this size of a building belongs where it is (planned).  We already have a high tower."  C. Bell, another owner in One Waterfront Towers, added, "Don't block us in from our sunsets.  Don't take away from us what we paid for."

It should be noted that the plans for the 400 foot tower exceed the state guidelines for the minimum separation distance between buildings.  Under the Hawaii Community Development Authority rules, the slim side of towers must be at least 200 feet apart.  The Collection will be 249 feet away from One Waterfront.  The Hawaii Community Development Authority will make a decision regarding permits for The Collection on July 17.

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Hawaiian Electric Company Hopes to Reduce Rates Through Renewable Energy Projects

The Hawaiian Electric Company is working with state regulators to bring in five new renewable energy projects to the state.  The developers of these projects will produce a combined 64-megawatts of energy, or about 5 percent of Oahu's needs.  The agreement would call for these projects to sell the energy generated to the Hawaiian Electric Company for an average price of 15.9 cents per kilowatt-hour, which would be approximately 33% less than what it currently costs HECO to produce the equivalent power.  It is believed that the five projects combined could save the company $7.4 million a year.

HECO Vice President for energy resources and operations, Scott Seu, stated, "These projects represent an important first step as we are starting to see lower market prices for renewable energy.  The strong response we received (from developers) demonstrates the high level of competition in our market. That's good news for customers."

The Public Utilities Commission is currently reviewing the developers and their projects.  The names of the developers and their projects will not be announced until they are proved by the PUC.

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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City Leaders and Cyclists Promote Bicycling in Honolulu

Various Honolulu city leaders, including Mayor Kirk Caldwell, and cycling advocates are working together to promote bicycling as a healthier and more affordable way to commute.  There are current 134 combined miles of bike paths, bike routes, and bike lanes in Honolulu and the Department of Transportation Services has stated that another 310 miles of bikeways will be added at a cost of $68 million.

Officials estimate that about 1.5 percent of Oahu's population, or about 15,000 people, use by bicycles to get around.  However, it is believed that if additional bikeways were added, that number would increase.  Cycle On Hawaii's president, Natalie Iwasa, stated, “Once we get more people riding, they’re going to want to have more places to ride.  The thing now is to hold people like the mayor accountable for their words.”

Mayor Caldwell commented that cycling will help residents “save money, stay healthy and not pollute.  People can ride from Ewa, get off here with their bike, ride up to City Hall, ride over to the state Capitol, ride to some of the major employment centers and get to and from work.”

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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2,700 Marines from Okinawa May Come to Oahu

According to the U.S. Government Accountability Office, a total of 10,700 United States Marines will be relocating to other bases from Okinawa, Japan by 2026.  Tentatively, 4,700 Marines will be sent to Guam, 2,700 Marines will come to Hawaii, 2,500 will go to Australia and 800 Marines would be sent to various bases across the mainland United States.  The Defense Department is now conducting several studies as to where to house these 2,700 Marines on the island of Oahu.

Currently, the Kaneohe Bay Marine Corps Base has 7,525 Marines stationed there.  An additional 1,734 Marines are based out of Camp Smith, and there are 97 additional Marines scattered throughout the rest of Hawaii's bases.  Additional base housing would be needed to incorporate the Okinawa Marines at Kaneohe Bay.  Housing may also be built at Barbers Point Naval Air Station or Pearl City Peninsula.  Chuck Little, the spokesman for Marine Forces Pacific at Camp Smith, stated, "These (Oahu) studies are in their very early stages; as more information becomes available, we'll be better able to make informed decisions."

Source: Honolulu Star Advertiser, 6-19-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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North Shore Real Estate - Defend Oahu Coalition Opposes Turtle Bay Resort Expansion

In 1986, the state of Hawaii's Land Use Commission gave their approval allowing Turtle Bay Resort to expand.  Over the last 27-years, Turtle Bay Resort had not decided to follow through with their expansion plans, but in recent years have begun to move in that direction.  The Defend Oahu Coalition is fighting against the Turtle Bay Resort, and has filed a motion with the Land Use Commission to repeal their 1986 decision.  The group contends that 236 acres of Turtle Bay Resort's 880 acre property should revert back to agricultural use.  Tim Vandeveer, the spokesman for the Defend Oahu Coalition stated, "Promises have been broken.  We believe that the law matters and feel that the commission has a mandate and an obligation to require that developers make good on promises to our state and community in exchange for zoning modifications."  The Defend Oahu Coalition also contends that the expansion project of the Turtle Bay Resort that was being proposed in 1986 is completely different to the one being presented now, and as a result should be voided.  

Replay Resorts Inc, which owns the Turtle Bay Resort, is still working on their environmental impact survey and their project proposal.  Tentative plans called for building 750 residences and 625 additional hotel units on the property.  The project would be done in phases over the next 10 years and would cost approximately $770 million.  Vice president of Replay Resorts Inc., Scott McCormack, stated, "In response to community input and concerns, we have provided a balanced and reasonable plan.  We will continue to work through the process with integrity."

Source: Honolulu Star Advertiser, 6-19-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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