Hawaii Real Estate and Economy

Sunday, June 23, 2013

Kamehameha Schools Plans to Create Retail Complex in Kakaako Called SALT

Kamehameha Schools has announced that they would like to renovate several old buildings in Kakaako and create a new retail complex. The project is currently being called SALT and would bordered by Ala Moana Boulevard, Coral Street, Keawe Street and Auahi Street. It is estimated that there will be a total of 84,000 sq ft of leasable space for 50 tenants. Kamehameha Schools is currently seeking a variance from the Hawaii Community Development Authority to allow them to construct a six-story 65-foot tall parking garage, which would be higher than than the currently allowed 45 height limitation.

The Hawaii Community Development Authority is the state agency responsible for regulating development in Kakaako. They will be holding a community input meeting on July 3, 2013 to hear Kamehameha School's presentation as well as public testimonial at 10:00 am at 461 Cooke Street.

Source: Honolulu Star Advertiser, 6-23-2013, 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

Sequestration Hits Hawaii Civilian Defense Workers Hard With Furloughs

Starting July 8, 2013, more than 14,000 civilian defense workers throughout the state of Hawaii will be forced to take one furlough day per week due to sequestration. This 20 percent pay cut is part for the federal government's plan to reduce spending by $80 billion. The exact total cost to the state of Hawaii is still unclear as government agencies scramble to secure other sources of funding. One estimate believed that the furloughs would cost the state's economy approximately $134 million, but others believe that number may be significantly higher.

It is also unclear how long sequestration and furloughs will last. While this current round is scheduled to end in September, there is a good chance that it would be extended past that. Many economists believe that 2014 would be an even tougher year for federally funded projects and departments and worry that some departments may decide on layoffs as opposed to furloughs.

Ritz-Carlton Residences Waikiki Beach Holds Sales Event

The Ritz-Carlton Residences Waikiki Beach held its sales event over the weekend and found buyers for the vast majority of their units. The project, to be built at 2121 Kuhio Avenue, will feature a total of 309 units ranging in size from 400 square foot studios to 3,000 plus square foot three-bedroom suites. Prices started at $500,000 and reached just of $15 million for the penthouses. The condominium-hotel property will also feature the state's first Dean & DeLuca, a gourmet market headquartered in New York City. There will also be a Sushi Sho restaurant and a BLT Market restaurant.

Jason Grosfeld, the principal for the developer PacRep LLC, stated, "This a unique opportunity. Waikiki is one of the most popular vacation destinations in the world but there has been very little available here. (The Ritz-Carlton) is by far the best brand for our customers from Asia. It's the No. 1 luxury brand."

Saturday, June 22, 2013

Governor Signs Bill Helping Low to Mid-Income Families Qualify for Mortgage Loans

Governor Neil Abercrombie has signed a Senate Bill 1025 into law, allowing more low to mid-income families the opportunity to qualify for mortgage loans. The bill updates the Hawaii based Hula Mae Single Family Mortgage Loan Program and eases requirements for potential home owners. Under Hula Mae, buyers may be able to qualify for lower than market value interest rates and receive down payment and closing cost assistance. Executive Director of the Hawaii Housing Finance and Development Corp., Karen Seddon, stated, "It absolutely makes loans more available to more people in the state. We're able to give them a hand up by making mortgage loans available to folks that wouldn't otherwise be able to get one." The HHFD will oversee the Hula Mae program.

Abercrombie added, "This is really something that can change people's lives.This is really a hope bill. I think it fosters economic prosperity, as well. It's a commitment to a sense of confidence that you can't feel otherwise unless you're able to make this change." The law takes effect on July 1, 2013

Source: Honolulu Star Advertiser, 6-22-2013, 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

Electric Cars in Hawaii Still Pay Equivalent of $3.69 per Gallon

According to a report released by the U.S. Department of Energy, Hawaii drivers who own an electric car may not be getting the massive savings that they were hoping for. While the national average that electric car drivers spend for a "gallon of gas" equivalent is just $1.14, Hawaii drivers are spending $3.69 per gallon equivalency. This is due to the extremely high cost of electricity needed to "fuel" these electric cars in Hawaii.

The U.S. Energy Information Administration stated that in April 2013, Hawaii residents paid an average of 37 cents per kilowatt-hour for electricity. Nationally, the average for that same month was 12 cents per kilowatt-hour. To encourage the use of electrical cars in Hawaii where electricity is so expensive, many shopping centers and offices are now offering free charging stations. Other groups are encouraging the installation of a solar system at home to power your electric car with the sun.

The federal government has created a new website called eGallon at energy.gov/eGallon which helps drivers calculate the actual cost of operating their electric vehicles. U.S. Energy Secretary. Ernest Moniz, stated, "Consumers can see gasoline prices posted at the corner gas station but are left in the dark on the cost of fueling an electric vehicle. The eGallon will bring greater transparency to vehicle operating costs, and help drivers figure out how much they might save on fuel by choosing an electric vehicle. It also shows the low and steady price of fueling with electricity. Not only can electric vehicles save consumers on fuel and reduce our dependence on oil, they also represent an opportunity for America to lead in a growing, global manufacturing industry."

Athletic Department at UH Predicted to Have $3.3 Million Annual Deficit

Over the last 12 years, the University of Hawaii Athletic Department has finished in the red ten times. This current fiscal year is predicted to be the worst one yet, with an estimated $3.3 million annual deficit. Lower than expected ticket sales for all sports, especially football and woman's volleyball, accounted for $1.28 million below projected amounts. The Hawaii Tourism Authority decided not to provide the athletic department with an anticipated $575,000 sponsorship. The University was also scammed $200,000 for a fake Stevie Wonder concert, which was supposed to benefit the athletics program. Stevie Wonder, nor his real agency, knew anything about the concert and the university has already spent $105,000 in legal fees trying to reclaim their money from the fake agents.

Ben Jay, the new athletic director, took over the program five months ago. Jay stated, "I think the football record (3-9) had an impact and certainly pushed our losses to be bigger than what we had anticipated, but there were several other things that also happened. And we were over budget in some areas of necessary expenses. Add all that up and we have a deficit to end this year that is much more than we would have liked. We're trying to make it up and trying to find new revenues, but the loss of some of our sponsorship revenue due in part to what happened here has been unfortunate."

Jay stated that his goal is to get to break-even in 2014.

Friday, June 21, 2013

Larry Ellison Considering The Purchase of go! Airlines

Larry Ellison, who purchased 97 percent of the island of Lanai in June 2012 and who purchased Island Air in February 2013, has announced that he is in discussions with Mesa Air Group, the parent company of go! airline. Island Air's chief executive officer, Paul Casey, stated, “We are committed to building a strong regional airline and part of that process is exploring all options including discussions with Mesa Air,” Mesa Air Group created go! airline in 2006. Mesa filed for Chapter 11 bankruptcy in 2010 and emerged out of it in 2011.

Peter Forman, a Hawaii aviation historian, commented that Larry Ellison is "making a play to become the second serious interisland competitor. It's a major move.” Forman noted that if Island Air does combine with go! Airline, neighbor island flights should become more competitive due to increased service.

Source: Honolulu Star Advertiser, 6-21-2013, 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

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