Update on Vida at 888 Ala Moana

Developer MKVida LLC is proposing to build a 39-story luxury tower, called Vida at 888 Ala Moana, with 265 units priced between $900,000 to $4.7 million in Kakaako. Representatives of the project met with members of the Hawaii Community Development Authority and noted that they did find iwi kupuna, or Hawaiian burial remains, in the archaeological survey. However, the developer stated that they have already started meeting with the appropriate parties and will build the Vida tower away from this area.  There will be an open space including a protected area over the graves.

Source: Honolulu Star Advertiser, 11-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Construction Resumes for Building B of 801 South Street Project

Circuit Judge Karl Sakamoto has lifted his injunction for Building B of the 801 South Street Project after the developer had corrected what the judge ruled was a violation of state historic preservation law.  Developer Downtown Capital LLC was required to conduct an archaeological survey of the site and found absolutely no Native Hawaiian burials. As a result, construction will resume immediately after the almost six month long break while the study was being done and official approval was given by the State Historic Preservation Division of the Department of Land and Natural Resources. Ryan Harada, a principal with Downtown Capital LLC, stated, "The development team is very happy to move the project forward. We have a lot of buyers who have been very patient. We're pleased with the judge's decision."

Residents living in the neighboring Royal Capitol Plaza are very unhappy with this decision to allow Building B to be built.  They had filed several lawsuits against the developer, but Judge Sakamoto found that only one of them, the developer's lack of obtaining an archaeological survey, merited a halt in construction.  Now that has been completed, the judge felt there was no reason to delay construction any further.

Source: Honolulu Star Advertiser, 11-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Horizon Lines LLC to Sell Hawaii Operations to The Pasha Group

Horizon Lines, LLC, the second largest ocean cargo carrier which serves the Hawaiian Islands, has announced that it will be selling its Hawaii operations component to The Pasha Group for $141.5 million.  Assuming that the transaction meets regulatory approval, this will mean that Matson Inc. and The Pasha Group will be the only two domestic shipping companies to serve the state after Horizon departs. Leroy Laney, a professor of economics and finance at Hawaii Pacific University, expressed some concern about this and commented, "This is going to eliminate one competitor. It's a small one but it's one competitor. It further concentrates what is a concentrated market to begin with."  Laney noted that Mason will control just over 70 percent of the domestic shipping market share and Pasha, with the acquisition of Horizon, would control the rest.

Source: Honolulu Star Advertiser, 11-12-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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Tourism Officials Excited About Chinese Tourist and Business Visa Announcement

President Barack Obama and Chinese government officials have announced that they will continue to encourage international cooperation and tourism by making it easier for citizens to obtain visas to the other country.  This was seen as a major milestone for the Hawaii Tourism Authority, which has been working for more than a decade to have more Chinese visitors, students and businessmen come to the islands.  Mike McCartney, president and CEO for HTA, stated, "China has become a market with tremendous growth potential. We look forward to working with our marketing contractor, Hawaii Tourism China, and industry partners to enhance travel opportunities and attract Chinese visitors to ensure the long-term sustainability of our tourism economy."  According to McCartney, there have been 128,792 visitors from China to Hawaii during the first nine months of this year.

Mark Dunkerley, the president and CEO of Hawaiian Airlines, commented, "Tourism is a vital contributor to the U.S. economy and to Hawaii in particular, and should not be underestimated. With an enormous population and a burgeoning middle class, the new visa policy will positively impact tourism and create new jobs over the long term by making our islands more easily accessible for Chinese travelers. Hawaiian Airlines offers three-times weekly service between Hono­lulu and Beijing, and we are well positioned to introduce this growing and steady new stream of visitors to our home."

Source: Honolulu Star Advertiser, 11-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Mayor's Sand Island Transitional Center Facing Unanticipated Costs and Delays

Mayor Kirk Caldwell had proposed in August to convert a 5-acre vacant lot on Sand Island into a temporary transition center for up to 115 homeless people.  Initially, the plan was expected to cost less than $1 million, but this number seems to be growing significantly, which may mean that the Mayor's office will have to drop the proposal entirely. 

The state Department of Health stated that the 5-acre lot may contain contaminants because it was once a dump site.  In order to gain approval to build the transitional center, the state Board of Land and Natural Resources stated that a soil study must be conducted to ensure that it is safe for people to camp there.  Soil remediation and resurfacing is already twice what the Mayor's office had initially anticipated, and experts believe that there may be better ways to allocate the $1 million.

Source: Honolulu Star Advertiser, 11-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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UH Athletic Program to Finis Year With $3.5 Million Deficit

The University of Hawaii Athletics program has announced that they will finish the fiscal year with a $3.5 million deficit, over double than their previous estimate of $1.5 million that the gave the Board of Regents in August. Ben Jay, the Athletic Director, stated, "As we've gotten five months into the year and going into the sixth month, our financial condition has worsened, for several reasons. Obviously, the football season has been disappointing. We're currently at 2-8, but the fan ticket-purchasing has fallen off, and not unexpectedly, our revenues have suffered for it."  Donations to the athletics program are also expected to be down by $700,000.

One of the big decisions that Ben Jay will have to make will be what to do with head football coach Norm Chow. Many fans are demanding for a new head coach, but Chow has two years remaining on his contract and the athletic department needs to decide if they can afford to buy him out.  Jay commented, "In terms of coach Chow and the football program, we're going to sit down at the end of the season to discuss how the year went, and I'm not making any decisions or judgments right now until the season plays itself out."

Source: Honolulu Star Advertiser, 11-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Plan Suggested for 2.1 Acres Next to Kewalo Basin

Kewalo Waterfront Partners has proposed building a new complex on the 2.1 acre parcel located between Ala Moana Beach Park and Kewalo Basin.  Under their plan, the complex will feature several small restaurants, a jazz bar, a shopping arcade, a wedding chapel and a 250-stall parking garage.  The land is owned by the state of Hawaii and is operated by the Hawaii Community Development Authority.

Several harbor business owners are very unhappy with the proposal and believe that only maritime related facilities should be developed around Kewalo Basin.  HCDA spokeswoman, Lindsey Doi, mentioned that negotiations are still ongoing and nothing has been approved as of yet.  If lease terms are tentatively agreed to, it would still be subject two several public hearings as well as an environmental assessment.

Source: Honolulu Star Advertiser, 11-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com