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Monthly Newsletter


Welcome to my monthly newsletter. The first week of each month, I email all my clients my monthly newsletter. This newsletter includes news events of interest along with announcements of new real estate developments, updates on on-going developments and any major transactions of the month. It also includes Real Estate Updates of interest to each client. Send me an email if you’d like to receive it each month. If not, it’s posted here for your reading pleasure.

 

November, 2009
November 2009 Newsletter


Aloha,
 
It finally happened, the Princeville Hotel opened this past month, per an article in the Pacific Business News "St. Regis Princeville opens on Kauai."  The article goes on to say that "The St. Regis Princeville Resort on the north shore of Kauai is now open.  The resort opened Thursday after a multi-million dollar renovation, Starwood Hotels & Resorts Worldwide announced.  Hotel design firm WATG and Honolulu-based Group 70 helped redesign the hotel, which features 252 rooms, including 51 premium ocean-view suites, a spa, Prince and Makai championship golf courses and Kauai Grill.  Guest rooms at St. Regis Princeville range from $360 to $1,150 a night, depending on the season. Ocean-view suites go for between $675 and $6,500.  The property was formerly called Princeville Resort."
 
First, let me correct myself - it is now the St. Regis Princeville Resort not the Princeville Resort Hotel. Also, I was planning to run in and snap a few digital photos but found that "self parking" has been eliminated and everything is "complimentary" valet parking.  Since I planned to be inside probably less time than it would take to valet park and then run and get my car, and since I didn't have anything smaller than a $20 (I don't believe there is anything "complimentary" about valet parking) I just turned and left but not before I exclaimed, pointing to their parking lot "You mean all this is valet parking."  The attendant at the entrance gazebo (never used to be manned but now it is) said "Yes, because it's a St. Regis now."   Oh my.  What ever happened to the good old days when you could park your car and just as leisurely stroll across the grounds to the entrance enjoying the views? 
 
Everyone loves the farmer's markets on Island, and I'm happy to announce a new one at the Community College in Puhi. Per the Oct 2nd Garden Island article "Look out...there's a new market in town,"  "A dream long deferred will finally be realized with the opening of the Kaua‘i Community Market at 10 a.m. Saturday at Kaua‘i Community College. The market will run from 10 a.m. to 1 p.m. Saturdays in the parking lot closest to the entrance near the highway.

“We want to create an atmosphere where people want to hang out, that’s why we include the value-added products, food vendors and the educational booth,” said KCC Chancellor Helen Cox.  For the market’s inauguration there will be culinary demonstrations by Mark Oyama and KCC culinary students and tours of the community garden.

“What makes this market unique is that it brings all the pieces together to support buying and eating local,” said Melissa McFerrin, executive administrator of Kaua‘i County Farm Bureau. “There has been such a strong public interest in supporting agriculture, and this is one of many ways we can do this as a community.”   If your staying down in the Lihue area this would be a good market to visit. 
 
Per an October 4th Garden Island article entitled "Scientists studying Hanalei water quality,"  "A comprehensive study completed nearly two years ago at Stanford University found that some of the water samples collected from Hanalei River contained bacteria of human fecal origin.  The study — “Sources of Nutrients and Fecal Indicator Bacteria to Nearshore Waters on the North Shore of Kaua‘i” — was prompted by concerns over consistently high levels of fecal indicator bacteria enterococcus that far surpassed what the state deems “acceptable.”  A surface protein on the enterococcus was used to “investigate whether the observed bacteria originated from a human source,” the study says.  By identifying how the bacteria enters nearshore waters, water quality issues can begin to be addressed, especially regarding how it ultimately affects Kaua‘i’s coral reefs, the abstract says.  “The water, full of bacteria and sediment, reaches the reef which has dire consequences for the creatures that live there and we subsist on,” Save Our Seas President Paul Clark said.

The Department of Health’s Clean Water Branch Monitoring and Analysis Section Chief Watson Okubo said the study is inconclusive.  An analysis completed in 2008 says the surface protein is an “unreliable indicator of human fecal contamination” because there are “differential occurrences of the gene in the environment.”  “In other words, esp (the surface protein located on enterococcus) is somewhat ubiquitous and not a useful tool in discriminating contaminant sources (i.e., human versus non-human),” DOH spokesperson Janice Okubo said.

But the question remains: Have non-human populations risen as quickly as human to cause the correlated spike in bacteria levels?  Repeated requests for further comment from the DOH were unsuccessful.  Okubo said last month that the Clean Water Branch would soon be losing four of its 10 staff members under the state’s proposed layoffs.  “Concerns are rising about the bacterial pollution present in these renowned recreational waters,” the Environmental Protection Agency says on its Web site in regards to the Hanalei River and Bay.

Data collected “now suggests a correlation between low and high tidal action and the higher bacterial levels suggesting a ‘flushing’ of septic systems in the Hanalei community. Under study now is a possible link to heavy rain events as well,” the EPA says.  All tests conducted on Kaua‘i and elsewhere essentially point to human contamination, water quality expert Dr. Carl Berg of Surfrider Foundation Kaua‘i said, but the “silver bullet hasn’t appeared yet.”  New methods are being used for bacterial analysis and the EPA will soon be “forced” to come up with something to help determine where pollution around the world stems from. This is due to a “beach water” lawsuit filed by the Natural Resources Defense Council.

Critics claim enterococcus is not the best indicator of fecal matter.  “Everybody is out there working like mad” to come up with an “improved” method of testing, Berg said.  Discovering an indicator that is “highly correlated with health risk” and one that is timely and affordable is the key, he said, adding that it could be any day now.

The Hanalei River was recently selected as one of 14 American Heritage Rivers, according to the EPA. The river is approximately 16 miles long from its source to the ocean and is among the five largest rivers in Hawai‘i.  “It is a free-flowing river terminating in an estuarine bay, the third largest and most pristine in Hawai‘i,” the EPA states on its Web site."   If you ever wondered why the locals are not in the Bay after a heavy rain, now you know why....

 

Of equal interest is another October 4th article "Important Ag land study underway."  A long-awaited agricultural study is finally underway and its results could well determine the future of farmland on the Garden Island.  The Important Agricultural Lands study, mandated by state law and to be implemented by the individual counties, will use a host of criteria to determine which areas of the island should be preserved for ag use and which are not as critical.

 

The study officially kicked off with a meeting Wednesday night at the Kaua‘i War Memorial Convention Hall. It was attended by a large portion of the island’s power structure: Mayor Bernard Carvalho Jr. sat alongside Planning Director Ian Costa and County Attorney Al Castillo during a presentation by Dr. Karl Kim of the University of Hawai‘i’s Department of Urban and Regional Planning.

 
Specifically up for review were the eight criteria that will be used, under Act 183, by the state Land Use Commission. (See below)  The crowd, some 50 strong, first used handheld clickers used in UH classrooms to rate each criteria on its importance to the process, and those ratings were used to develop rankings.

 

Former Mayor JoAnn Yukimura, Council Chair Bill “Kaipo” Asing, County Clerk Peter Nakamura, County Engineer Donald Fujimoto and Planning Commissioner Hartwell Blake also attended, and many participated in small group discussions with community members to further hash out the important criteria.  While the criteria were later criticized by prominent farmer Jerry Ornellas as being “obviously authored by guys with no dirt under their fingernails,” both the large group and smaller sub-groups came to the conclusion that good soil and water are essential to farming operations.  The determinations, which are expected to be included in the final report when it is published in March 2011, have come in recent years during Kaua‘i County Council discussions of land-use legislation like a transient vacation rental ordinance update currently in the works.

 

Nearly everyone in the room — those inside and outside county government — agreed agriculture will play an essential role down the road.  “Without food and without teachers,” said one attendee, referring to a pair of budget cuts proposed recently, “it’s a grim future.”

 

Important Agricultural Land criteria:

 

1. Land currently used for agricultural production;

 

2. Land with soil qualities and growing conditions that support agricultural production of food, fiber, or fuel- and energy-producing crops;

 

3. Land identified under agricultural productivity rating systems, such as the agricultural lands of importance to the state of Hawai‘i (ALISH) system adopted by the board of agriculture on Jan. 28, 1977;

 

4. Land types associated with traditional native Hawaiian agricultural uses, such as taro cultivation, or unique agricultural crops and uses, such as coffee, vineyards, aquaculture and energy production;

 

5. Land with sufficient quantities of water to support viable agriculture production;

 

6. Land whose designation as important agricultural lands is consistent with general, development and community plans of the county;

 

7. Land that contributes to maintaining a critical land mass important to agricultural operating activity; and

 

8. Land with or near support infrastructure conducive to agricultural productivity, such as transportation to markets, water or power."

 

Pacific Business News printed a recap of Kauai real estate in their Oct 5th edition "Kauai home sales decline, condos rebound."  "Sales of single-family homes on Kauai fell last month as condo sales rebounded and prices fell in both categories.  The median price of a single-family home in September was $499,000, a 5 percent decline from September 2008, when the price was $525,000, according to statistics from Hawaii Information Service. The number of sales, however, fell by 28.5 percent, with just 15 houses sold, compared to 21 sales in September 2008.

 

There were 14 condo sales last month, a 75 percent increase over the eight units sold in September 2008. The median price of a condo in September was $337,500, a 32 percent drop from $495,000 in September 2008.  Year-to-date sales on the Garden Isle were down by more than 20 percent in both categories.

 

Sales of single-family homes on Kauai were down 26 percent for the first nine months of the year, while the median price of $470,500 was down 25 percent from $630,000 during the same period in 2008.  The year-to-date median price of a condo was $330,000, down 41 percent from the first nine months of 2008, when it was $560,000. Sales of condos for the January-September period were down 21 percent from the same period in 2008."

 

To view the MLS statisitic in their entirety, please go to my website and click on Monthly Stats. I upload them every month then write a short synopsis on my blog comparing the current month/year to years past going back as far as 2004.  It's very interesting.

 

The Garden Island newspaper had a similiar report but from a political point of view. Slow real estate sales is worrying politicians as noted in the Sep 8th Garden Island article "Down but not out."  "Slipping property values and home sales could negatively impact the island’s economy in 2010, as the county’s revenue is largely derived from real estate taxes, Kaua‘i officials said.  Residential median sales prices fell more than 25 percent and the number of home sales are off by some 26 percent on Kaua‘i, according to September’s year-to-date statistics released last week by Multiple Listing Services.

Already “anticipating that next year will be down,” the county has been “frugal” with its spending, Kaua‘i County Councilman Tim Bynum said Sunday.  “We’ve been thoughtful in preparing for a reduction in revenue by being careful about how we spend,” he said.  Layoffs and furloughs have been avoided thus far, but some 50 county positions were recently “frozen” in order to help maintain the roughly $150 million operating budget and make up for projected declining revenue, he added.

While home values have obviously declined, it’s difficult to judge just how much because Kaua‘i residences can cost anywhere from around $200,000 to millions of dollars, Bynum said.  “The impression is that sales prices, although down, haven’t had a precipitous drop,” Bynum said. “Sales prices are down clearly, but not as huge as on the Mainland.”  Even though property values are sliding and tax revenue could fall short next year, Council Vice Chair Jay Furfaro said that’s not his only concern.

Some $12 million to $14 million in county operating costs is obtained from transient accommodations taxes each year, according to county Economic Development Director George Costa.  “Losing that, and a decrease in property value, could be very concerning,” Furfaro said Sunday.  If the state chooses to eliminate the TAT and other revenue sources continue to decline, “we would need to look at internal budget reductions to make up the difference,” Costa said."  The article goes on to say some agents are noticing an uptick in real estate activity within the past few weeks, something I'd have to agree with.

 

"Plastic Bags to be banned" is an article found in the Oct 8th Garden Island.  "After a two-week delay to huddle with the county attorney and revise the wording to ease enforcement, the Kaua‘i County Council on Wednesday morning passed an ordinance that will outlaw single-use plastic checkout bags from the island’s retail establishments despite objections from some members of the business community.  “I feel very pleased that Kaua‘i has made a statement in support of the environment,” Councilman Tim Bynum, who co-introduced the legislation, said outside Council Chambers following the 4-2 vote and a round of applause from citizens in attendance.

Councilwoman Lani Kawahara, who co-introduced the bill with Bynum and “voted proudly in support,” said the ordinance is an important step forward in solving an “environmental crisis” as it helps provide stewardship of the island’s unique environment, including “the waters that run around and through it.”  The bill, soon to be signed into law by Mayor Bernard Carvalho Jr., will go into effect on Jan. 11, 2011 — the same day a similar ban will take effect on Maui."  You have almost a year and a half to finally train yourself to remember to take the cloth bag into WalMart with you, instead of leaving it in the back seat of the car like I do most every time!

 

McDonalds on Kauai is changing hands, per an Oct 12th Pacific Business News article "McDonald’s of Hawaii will sell five Kauai restaurants."  "McDonald’s Restaurants of Hawaii will sell its Kauai franchise, which includes five restaurants, to an undisclosed buyer in a deal expected to close on or before Nov. 27.  The affected restaurants are McDonald’s of Lihue at 3113 Kuhio Highway, McDonald’s of Wal-Mart at 3300 Kuhio Highway, McDonald’s of Kukui Grove at 3-2600 Kaumualii Highway, McDonald’s of Waipouli at 4-0771 Kuhio Highway in Kapaa, and McDonald’s of Eleele in the Eleele Shopping Center."  I wonder if there will be any changes at these locations as a result of the sale.


If you wonder just how well the County government works, take a look at this next article from the Oct 13th Garden Island.  "Open Space Commission working to avoid ‘an embarassing situation’" goes on to say that "The county commission tasked with identifying the island’s important natural and cultural resources and recommending ways to preserve access to them is finally now back to work after months of delays and departures.

The Public Access, Open Space and Natural Resources Preservation Fund Commission appointed its chair and vice chair in a meeting Thursday afternoon, and has until the end of 2009 to prepare a report for the Kaua‘i County Council and Mayor Bernard Carvalho Jr. with recommended property acquisitions, easements or other arrangements.  “Let’s not set up roadblocks for ourselves right now. Let’s see how far we can go,” said Jean Souza, who was elected as chair. She said the body is “on the cusp” of either moving forward or remaining stagnant, and that the task will not be easy but the commission needs to “pick up the pace.”  The commission got to work right away, receiving from Commissioner Johanna Ventura a report on the public input survey process, the first step in the body’s development of the annual list of priority projects.

Ventura said a location identified as “Secret Beach 3” was well-represented in the survey results and that the answer that the entire island should be protected was not uncommon. One respondent went so far as to fill out five surveys, with each one requesting that one of the island’s five ahupua‘a be preserved.  Ventura said that more detailed information would be made available once the survey results are processed and formatted. A preliminary list of potential priority projects could be forthcoming in coming weeks as the commission discusses its preparation of the proposal for the mayor and the council.

Thursday’s meeting got off to a rough start when none of the five commissioners in attendance seemed interested in leadership positions, with Souza, who has served as chair in the past, stating plainly, “I’m done in terms of taking leadership here. It’s been really frustrating the last few years and I find I’m more impatient than I was before.”  Veteran member Beryl Blaich said that frustration could be an asset in helping motivate the commission.  “To some extent, impatience is a great attribute because we do want to perform,” Blaich said. “We have a whole new beginning.”

In a brief recess before voting, Souza went across the meeting room at the Mo‘ikeha Building in Lihu‘e to speak with Tessie Kinnaman, who had turned down a nomination to be chair. Kinnaman, trying to avoid confrontation, jokingly hid beneath the table.  Souza reluctantly became chair, and Kinnaman was later elected vice chair.  Eugene Punzal refused requests to serve in either of the two leadership positions, saying that after a year and a half on the board, he is still unsure how things work and does not have the capability to lead, and would prefer to avoid putting himself in “an embarassing situation.”  The commission has been shorthanded in recent months. According to county officials, Randall Uyehara resigned on April 16, Vice Chair Caren Diamond on July 28 and former Chair Roger Caires on Aug. 29. All three cited scheduling conflicts.

Thursday was the commission’s first successful meeting in months. Scheduled meetings on Sept. 28, Sept. 10, Aug. 27, Aug. 13 and July 23 were all canceled, all but one of which with the explicit reason that a quorum was not available.  Five of nine potential members are required for a quorum, so even with the departures of Uyehara, Diamond and Caires, the body could have met if five of six remaining members were available.

Of the three vacancies, only one — Uyehara’s seat, which must be someone living in the Waimea-Kekaha area — is filled by Carvalho, Office of Boards and Commissions Administrator John Isobe said in a Friday e-mail. The other two at-large vacancies can be filled by the County Council and by the eight sitting members of the commission.  The commission will hold its next meeting on Oct. 22, and has scheduled four more meetings after that before the end of 2009."

 

Pacific Business News had some exciting news in their Oct 13th article "Mokulele, go! to combine operations.  "Mesa Air Group, parent company of go! airlines, and Mokulele Airlines say they are creating a “joint venture” that will make it the second-largest interisland airline in Hawaii.  Under the terms of the agreement, Mesa will own 75 percent of the operation and Mokulele will own 25 percent. The airlines will be co-branded at ticket counters.
In statements issued Tuesday by both airlines, the word “merger” wasn’t used. Mesa’s go! is clearly the dominant partner in the new operation, with Mokulele’s management essentially saying that the deal was inevitable, the result of the recession and low passenger traffic.  Both companies said they are reviewing staffing levels; layoffs are expected since the airlines offer overlapping service. Mokulele has about 160 Hawaii employees, go! has 330.  Mokulele will also be giving up the advantage it touted over go!: its roomier and more luxurious planes.

 

Republic Airways, the majority owner of Mokulele, will be moving its three 70-seat Embraer E170 jets to the Mainland, with go! replacing them with smaller aircraft, most likely the Bombardier CRJ-200 50-seat jets it uses on most of its interisland routes.  “Mokulele’s mission has always been to provide affordable, reliable interisland air service to both local travelers here in Hawaii and to the many who come to visit this beautiful state,” said Scott Durgin, CEO of Mokulele Airlines, in a statement. “Unfortunately, the global economic crisis has dramatically decreased air travel and tourism, and these effects have been sorely felt in Hawaii. The agreement will allow us to continue offering a low-fare schedule, one that is appropriate to the level of demand in the market today.” 

 

Mokulule, founded in 1998, saw opportunity in the shutdown of No. 2 interisland carrier Aloha Airlines in March 2008 and last November began offering interisland jet service with planes that were bigger than go!’s but smaller than those of Hawaiian Airlines (Nasdaq: HA).  Indianapolis-based Republic Airways increased its stake in March to 50 percent and aggressively marketed itself as a competitor to not only go! but Hawaiian, which controls about 80 percent of the interisland market. 

 

Helped by cheap $49 fare promotions and enthusiastic customer service, Mokulele took customers mostly away from go!, though its share of the market is still thought to be less than 10 percent.  go! is not only struggling with the competition but with the tourism downturn. In June, its passenger count was down 22 percent from the previous year.

 

The arrangement doesn’t just affect Hawaii routes. Mokulele said Mainland routes currently served by Republic Airways’ subsidiary, Shuttle America, will be operated by go! beginning Thursday. The routes are mostly in the Midwest.  Republic also said it will forgive Mokulele's $3.1 million in debt to the company but will require Mokulele's current shareholders to come up with $1.5 million to help fund the joint venture with go!"  Well, there goes the low fares for the locals.  It was fun while it lasted.

 

The Oct 14th Pacific Business News article "Hawaii Foreclosures up 63% in September" went on to say that "Hawaii foreclosures were up 63 percent from last September, according to the latest foreclosure data.  Hawaii had 969 filings for the month, compared to 594 a year ago, according to RealtyTrac.  Hawaii ranked 15th in the nation for foreclosures in September, up from 20th in August.

 

Nationally, there were 343,638 foreclosure filings for the month, down 4 percent from August and up 29 percent from September 2008.  Hawaii home foreclosures were up 29 percent from the second quarter to third quarter this year, according to the survey by the California-based real estate research firm. There were 2,743 foreclosure filings in Hawaii in the third quarter.  Hawaii had a rate of one filing for every 185 households.

 

Nevada again had the highest foreclosure rate in the country for the quarter, with one filing for every 23 households.  Arizona had the second highest rate for the quarter with one filing in every 53 housing units, followed by California, also with one in 53.  California had the highest number of foreclosures at 250,054.  Vermont ranked 50th, with 62 foreclosures for the quarter.

 

Finally, KIUC is moving towards the direction of renewable energy, per the Oct 15th Garden Island article "Biomass project to be online by 2012."  "Kaua‘i Island Utility Cooperative announced Wednesday that it has signed an agreement with Pacific West Energy for a 20-megawatt biomass-to-energy project to come online by April 2012.

The project, to be operated by PacWest, will provide renewable-sourced energy for approximately 30 percent of Kaua‘i’s annual electrical use, the news release says. The project also provides firm capacity to KIUC and will enable the co-op to continue to provide reliable power to Kaua‘i.  “Upon reaching full commercial operation, this project will allow KIUC to delay the Kapaia Unit Two Combustion Turbine project for the foreseeable future,” KIUC President and CEO Randy Hee said in the release."   I wonder if it will reduce our "most expensive electricity in the US" rates!

 

By the way, I made a return trip to the St. Regis Princeville Resort Hotel after leaning from several others that they had been able to self park.  This time I just smiled at the gazebo attendant as I nodded towards the parking lot and was pleasantly waved in.  I finally got to see the newly renovated hotel, and I must say, I was impressed.  Before, when you entered the front doors, the entire hotel opened up to you which wasn't bad but it presented a very busy, mixed use scene.  Now you enter into a small vestibule that sets the stage for the calm, welcoming presence within the main space.  As you walk from the vestibule into the lobby, the feeling is one of understated elegance.  I found the use of the space and colors, which are mostly earth tones, very peaceful and inviting.  And of course, you cannot beat the views.  Right now just the hotel, spa and restaurants are open, with shops scheduled to come on line after the first of the year.  Don't forget to admire the white hibiscus as you walk back out to your car.  Check my Oct 14th blog for a recent article on the hotel, complete with pictures. 

 

KHNL Honolulu News reported on Oct 15th that "Airline expert expects fares to go up in Mokulele and go! merger."  "A day after Mokulele and go! airlines announce they're joining forces, there are questions on what this means for traveler's wallets.  An airline analyst says, expect interisland fares to take off.  It's a partnership that airline experts say they saw coming.  go! and Mokulele airlines are combining forces to keep from financially nosediving in a turbulent economic climate. And with Hawaii's interisland industry going from three competitors, to two, airline historian Peter Forman says the deal is going to be a big shake-up for customers.  "The contest between Mokulele and go! is over and we're going to see fares starting to head up," said Forman.

 

Forman says the merger marks an end to the interisland fare wars, with one-way bargains dipping as low as $25. Forman says Mokulele and go! may hold onto their $49 one-way discounts at first, but expects those fares to disappear.  "I imagine they have to get pretty close to $70 a seat at their current loads in order to break even," said Forman.  That, according to Forman, is based on fuel trends and the airlines' previous cost structures. As for what this deal means for Hawaiian Airlines -

 

"Hawaiian has been doing a good job. They're number one in the nation as far as on time so they're doing a good job as an airline and I don't think they have a lot to worry about at this point," said Forman.  Mokulele and go! airlines have said they will continue to offer low fares.  Calls to find out just how low fares would go were not returned."  Ok here we go again.  Just when when we'd gotten used to an affordable way for interIsland travel -- it ends.  I sure will miss those $49 specials.

 

If you wondered how the Kauai job market is doing in this economy, perhaps this Oct 22nd article entitled "Kaua‘i unemployment holds steady at 10 percent" will shed some light on it.  "The unemployment rate on Kaua‘i continued to hover around 10 percent in September, despite some 290 employees of the St. Regis Princeville Resort returning to work last month.  While the reason for the discrepancy could not be pinpointed Wednesday, it is likely because of a “seasonal adjustment” and the number of layoffs counteracting the amount of individuals re-hired, said Ryan Markham, information officer for the state Department of Labor and Industrial Relations.  There were no reported mass layoffs for Kaua‘i last month, but it could just be a “steady” stream of unemployment across the island, he said Wednesday.  The 9.6 percent September unemployment rate for Kaua‘i is more than three times what it was two years ago and is higher than the state’s 7.5 percent average."

 

If you frequent Larsen's Beach, then the Oct 23rd Garden Island article "Larsen’s access in jeopardy" should be of interest to you.  "Disgruntled community members are upset that public access to Larsen’s Beach in Moloa‘a may soon be obstructed by a proposed cattle ranch fenceline 110 feet from the shore.  “This is a classic private property versus public access issue,” concerned resident Richard Spacer, who touts many years of beach activism experience, said Thursday. “Members of the public have had traditional and custom use of the beach for as long as anyone can remember.”

 

Approximately 600 acres of land have been leased by the Waioli Corporation to Paradise Ranch owner Bruce Laymon since 2002. In an effort to get the property “back in shape and put on a responsible management plan” with the Natural Resources Conservation Service, Laymon has been attempting to control “trespassing, squatting and vandalism,” as well as “invasive species,” according to a November 2008 letter he wrote to the state Department of Land and Natural Resources Office of Conservation and Coastal Lands.

 

“Work began mauka over the past couple of years, working our way down to the makai area,” he wrote.  Instead of veering off to the left on the “moderately” angled preferred trail, the public access could possibly be diverted by the fence down a straight, “fairly steep, relatively rocky” path which “we all understood to be the county access,” said Waioli Corporation Board Member Andy Bushnell.  However, Bushnell said citizens who attended an Oct. 16 meeting at Larsen’s Beach were informed by a surveyor there to identify trail access and contingent barricades that there is no record of a steeper access.  Further comment regarding the matter could not be provided by county officials at this time, according to spokesperson Mary Daubert.

 

“The Planning Department is preparing a response/comment to the state Department of Land and Natural Resources regarding the Conservation District Use Application submitted by Paradise Ranch LLC,” wrote Daubert in an e-mail Wednesday. She said that when that response is completed, “most likely late next week,” it will be made available to the public.

 

When asked what role DLNR is taking since the subject parcel is reportedly lying in a state Agricultural and Conservation District, spokesperson Deborah Ward said, “Please contact the County of Kaua‘i for more information.”  While Bushnell said “it would be nice if the moderately level access could be preserved and the fence moved up,” he also raised concerns about liability matters, including individuals getting hurt while traversing the pathway and other issues he “may not be aware of.”  “No one is opposing that they have the right to enjoy their property,” Spacer said. “Indeed we strongly want a fence there for their cattle.”  Instead, the objective is for the blockade to be placed on the mauka side of the trail.
 
“Rather than block the safe lateral trail, the location of the fence could easily be placed mauka of the trail without substantial loss to grazing acreage,” wrote Kaua‘i Sierra Club Secretary Rayne Regush in an e-mail Thursday. “There is also wisdom to keeping cattle as far away as possible from the pristine coastal reef.”  There's sure to be more discussion on this one...and if you're unsure what mauka and makai mean, it's the mountain side vrs the ocean side.

There was good news on Oct 24th when the Garden Island announced that the "Council OKs 5-year ADU extension."  Previous to the extension, the right to build an ADU on Ag land was set to expire the end of this year. "For the sixth time since the ‘ohana zoning amendment was first passed 20 years ago, the Kaua‘i County Council this week extended the window to acquire building permits for additional dwelling units on agricultural land.

 

The council debated the original purpose of the legislation, agreeing for the most part that “the intent of the bill has been lost.”  While many members said the sixth extension — for five full years, to Dec. 15, 2014 — should be the final one and spoke out against inappropriate land use, when it came time to vote, the measure passed unanimously Wendesday morning.  “This bill is not perfect,” said Council Vice Chair Jay Furfaro, who introduced the bill, noting that it is a difficult time to secure money through loans to perform infrastructure improvements. “This is the compassionate way to close the door."
 
Council Chair Bill “Kaipo” Asing presented a detailed ADU history, which includes ordinances passed in March 1989, October 1991, December 1993, August 1996, November 1998, November 2006 and finally October 2009.  “Ag zoned lands should be for ag purposes, and we should keep that in mind,” Asing said, criticizing the original idea and all the subsequent extensions to it.  “What have we created?” he asked, referring to transient vacation rentals and second homes along Hanalei Bay. 

 

Furfaro said he has no intent to revisit the issue in five years and he sees the extension as an “exit strategy” to help bring county law back into compliance with the General Plan.  “There is no way I can see that this will be justifiable in five more years,” Lani Kawahara said, urging those Kauaians who have waited 20 years to pick up their building permits to do whatever is necessary to complete the job before the 2014 deadline so they can provide housing for their descendants, because “this is the end.”
 
“Proliferation of de facto residential on ag lots was not good for Kaua‘i,” Tim Bynum said, admitting to personally living on ag land without operating a farm. He said the value of agricultural properties has “skyrocketed” to “astronomical” levels, pricing out working-class people. “We need to close these giant loopholes.”  Despite the criticism, all seven council members voted in favor of the extension."

 

Lowell Kalapa,a frequent contributor to the Garden Island newspaper, is president of the Tax Foundation of Hawai‘i, a private, nonprofit, non-partisan, educational organization established to research issues confronting governments in the area of public finance, taxation, and public administration. It is supported entirely by private contributions.  I don't always include his articles however, his special article published in the Oct 25th Garden Island speaks to the heart of the issues confronting the government. Entitled "Unfortunate when you can’t afford it" Lowells article goes on to say that "As consumers learned over the past year, equity is a matter of what the world is willing to pay for something, creating value as long as there is a demand for the commodity which in many cases was one’s home.

 

Once that demand lessened or disappeared, the value or equity also disappeared. However, many consumers relied on that value or equity to “pay” for the shopping sprees figuring that they could always borrow against this “equity” to pay for their spending. But once demand weakened and consumers no longer had that equity against which to borrow, the credit markets froze on the fear that those loans may not be repaid. Credit was no longer free flowing, putting a pall over the real estate market, driving values down as homeowners and developers could no longer unload their properties for more than what they had paid.

 

The same observation can be applied to government. For years when the economy grew by leaps and bounds first with the advent of the jet age, the economic base moved from agrarian to a service base as the visitor industry grew and flourished. Sure, the visitor industry had its ups and downs but through the years it has become a solid foundation for economic growth.

 

At the same time, lawmakers looked upon the goose that laid the golden egg as a large target upon which to set its sights for any and every source of income for the state and counties. At the state level, a hotel room tax was enacted after nearly two and a half decades of statehood and the arrival of the first jet service to Hawai‘i.  Originally predicated on the argument that Hawai‘i needed to build a “world-class” convention center, lawmakers went beyond what the hotel industry had agreed to take on, a 2% hotel room tax rate, and instead slapped a 5% rate on hotel rentals. And instead of setting the money aside to build the convention center, lawmakers funneled those funds into the general fund for more than three years.

 

When agreement could not be reached on the site of the convention center, lawmakers decided to get rid of the pesky counties who had come back asking for more subsidies from the state and turned over nearly all of the collections of the hotel room tax or transient accommodations tax (TAT). But during the three years before the proceeds of the TAT were turned over to the counties, lawmakers went berserk trying to find ways to spend those tax dollars. When their creativity reached its limit, they thought up ways to hide the excess funds in what is called “special funds.”

 

But the damage was done, state government had expanded beyond its means so when it came time to set money aside to build the convention center, the TAT rate had to be increased to 6%. And then the state hit a brick wall in the early 1990s as the economy began to stall. Tax revenues failed to materialize, but then, like now, lawmakers feared the curse of a “tax increase.”
 
Not wanting to cut programs and services, lawmakers raided all those special funds in which they had hidden general fund dollars from the better times of the Japanese bubble and the windfall of the TAT. For lawmakers, they thought that socking away all those general funds into special funds was prudent, but that was the furthest from the truth. All that strategy accomplished was to set up future lawmakers, the lawmakers of today, for a very hard landing as little was done back then to curtail the growth of government.

 

So how does this tale of the growth of state government parallel the current economic crisis facing our nation? State lawmakers mistakenly assumed that the economic good times were endless and that the economy would continue to grow into the future. As a result, lawmakers continued to expand programs and services paying for them with new resources when they ran out of tax resources. They refused to heed the warning of the mid-1990s economic slump with the burst of the Japanese “bubble” by raiding special funds to finance the shortfall instead of downsizing government. Only when they ran out of ideas to turn the economy around did they relent and lower taxes, but not by very much nor as rapidly as necessary.

 

While government in Hawai‘i may not face “foreclosure” like many homeowners across the nation, the impact will be nearly as bad on a relevant scale. The pain that many will endure both within and without government will be unlike any crisis before. However, if we are to emerge a vibrant and stronger community, then lawmakers must shrink the size and role of government in Hawai‘i. What we do know is that government has become an obstacle to economic vibrancy and prosperity in Hawai‘i."  Way to go Lowell.  Very well presented!
The Oct 29th edition of the Pacific Business News reported that "Ward Centers adds seven new stores." Ward Centers has added seven new stores, including two seasonal shops."  The article said that "Calendar Club opened this month between The Liquor Collection and T&C Surf.  Go! Games opened next door to Calendar Club and features a large selection of games for all ages.  Trends Jodhpur opened in September. The store, located at streetfront at Ward Centre, offers handcrafted furniture from India.  Hawaii KiteWorks kiosk opened at Ward Warehouse. The store features a variety of kites and accessories. The store’s operators also offer free kite lessons.

 

Waimea Sun kiosk opened last month at Ward Warehouse. The store features tie-dye and custom-designed clothing.  Santa’s Pen opened at Ward Entertainment Center next to Roxy and features personalized Christmas ornaments and other holiday items.  Victoria Nail Salon, a full-service nail salon, is set to open soon at Ward Warehouse."  Great, more places to check out when over in Honolulu /Waikiki.

 

The October 29th Garden Island reported on an event I had the pleasure of attending on Tuesday Oct 27th in their article "Japanese missile intercepts mock PMRF target rocket."  "It was high-fives all around for the crew on the Japanese navy destroyer JS Myoko (DDG 175) after their missile successfully hit and destroyed a mock hostile missile in a missile-defense test Tuesday evening.  The test involved the Japanese Maritime Self-Defense Force destroyer JS Myoko (DDG 175) detecting and tracking a mock enemy missile launched from the U.S. Navy Pacific Missile Range Facility at Barking Sands near Kekaha, then firing a missile to hit to kill the mock enemy missile.  Another test is tentatively scheduled for next year.  Video of the intercept, reactions from ship’s crew and photographs of the SM-3 launch from the JS Myoko are  online at www.thegardenisland.com."  

 

It was also reported on Oct 29th that "Charter Commission still mulling manager plan."  What interests me about this is the fact that the 3 person committee is now down to one person, but is still moving forward. If you've been reading my newsletter for any length of time, you know how fascinated I am with the workings of our goverment.  Here's the article: — "Despite the departures of two of its three members in recent months, the county Charter Review Commission’s Committee on County Governance is moving forward with plans to explore a much-discussed and questionably legal county manager system of government.

 

Barbara Bennett, the only remaining member of the committee and one of just four sitting commission members, said at Monday’s regular monthly meeting that she will be making a final recommendation to the full body next month, providing “information necessary to move forward and make a very important decision about the balloting of this very important subject matter.”
 
Those remarks were part of a three-page prepared statement Bennett read refuting statements made by former commission and committee colleague Carol Ann Davis-Briant, who resigned during the September meeting, complaining that her efforts to move the county manager proposal forward were “systemically blocked” by the existing county power structure.

 

“I can say with authority there was never any intention not to further the process and plan of this special project by the commission or committee,” Bennett said, adding that the plan had been “moving forward in a positive and supportive way,” but Davis-Briant’s resignation “interrupted the process.”  Pressed for support during and after the meeting by outspoken Kapa‘a resident Glenn Mickens, Bennett, speaking on the front steps of the Historic County Building in the presence of three members of the public and The Garden Island, likened some proponents of the county manager system to the “Ku Klux Klan.”

 

Asked to clarify the statement Wednesday, Bennett said the group of people who have “badgered” her about the proposed amendment are like a “clan,” but the first two “K” words just “slipped out” and the racist connotation of the white supremacist hate group does not apply to county manager proponents and is not relevant to the current conversation..“I am totally for this proposal,” she said. “I keep telling these guys that I will bring it to ballot. ‘I support you.’ I wish they would stop.  “You won’t get people to come and volunteer to do the work when there’s this type of harassment,” Bennett said, adding that she has been “bashed and abuse” by “derogatory” “skepticism” almost to the point of “mental torture.”

 

Opinion of law:

Earlier, Bennett had taken two significant steps moving the proposal forward. She moved to release to the public a legal opinion provided to the commission regarding the legality of the county manager system of government, and the motion passed 4-0.
 
However, unlike the county Board of Ethics, which has in recent months ignored legal advice and waived its attorney-client privilege to release opinions, the Charter Review Commission approved the release subject to yet-to-be-approved procedures from the Office of the County Attorney, which will be applied to all boards and commissions.

 

Deputy County Attorney Mark Guyot said after the meeting that he expected the policy will be completed soon. Until it is released, the public will have to piece together the county attorney’s stance from a smattering of public statements and rumors.
 
Earlier this month, Deputy County Attorney Mauna Kea Trask, who authored the still-confidential opinion held by the commission, said the county manager system is “problematic” but could be legal based on “proposal-specific” details that would need to meet the requirements that Kaua‘i residents have the right to vote for their leaders and that separate branches of government have checks and balances on one another.

 

Commission Chair Sherman Shiraishi said he is comfortable placing the matter on the 2010 ballot “as long as it passes legal muster.” He wants to let the “experts decide.” He said it’s not as simplistic as putting a question on the ballot and replacing every instance of “mayor” with “county manager” because the entire county charter would have to be redrafted — “a daunting task.”  “If the county attorney advises me that a proposed charter amendment (would be illegal), I’m not going to have it, as long as I’m chairman,” he said.

 

Shiraishi said the “rumor is true” that the opinion says one proposal would be illegal, but added that there could be different proposals that would meet the county attorney’s standards. Bennett said there are at least 100 different county manager systems nationwide.  When asked by Vice Chair Leonard Vierra if he would like to proceed even if a proposal is deemed illegal by the county attorney, Mickens said he would get a second or third opinion, just like he would with a doctor.

 

What comes next:

Bennett also announced the next step in the Committee on County Governance’s plan to move the proposal forward.  As part of the public education process, the commission will hold a public meeting on Nov. 18 at 6 p.m. at the Kaua‘i War Memorial Convention Hall in Lihu‘e, Bennett said. Topics will include an overview of state and county government structure and relationship, the role of county government in Hawai‘i, and Kaua‘i county government as defined by charter and process for changing it, according to an event flyer she produced.

 

Panelists will include University of Hawai‘i William S. Richardson School of Law Kudo Professor David Callies, former City and County of Honolulu Charter Commission member John P. Whalen and retired Honolulu Advertiser writer Jan TenBruggencate, the flyer states. The event will be moderated by veteran news reporter and former KUAI radio executive Bill Dahle and Kaua‘i Planning and Action Alliance President and CEO Diane Zachary.

 

Bennett confirmed after the meeting that her final report to the full commission would take place at the monthly meeting on Nov. 23 and would incorporate information from the public meeting just days earlier."  

 

Later, one of the Board of Ethics member, Rolf Beiber, was shown standing in front of the Historic County Building holding a sign that says "Racial Slurs at work here."  The Garden Island Oct 30th article "Kaua‘i Board of Ethics Member Rolf Bieber stands alone in protest" stated that "Thursday, Bieber, who was among those present when Charter Review Commissioner Barbara Bennett likened persistent county manager proponents to the ‘Ku Klux Klan’ Monday evening, maintained his vigil on the steps of the Historic County Building. ‘This is the house of the people,’ he said, ‘ and she is a servant of the people."  Apparently at least one person is paying attention.  

Over the last few years I've been writing about the Ka Loko dam tragedy and the subsequent legal issues. The Oct 30th Garden Island reported that "Settlement finalized in Ka Loko lawsuits".. This has been such a long time coming that I am copying the entire article into this email. Read on:  "Good-faith settlements have been reached and approved in state court in various wrongful-death and property-damage cases regarding the March 2006 breach of Ka Loko Reservoir Dam near Kilauea.  Eight people died, including an unborn baby, known in court documents as Baby Doe McNees, and several of the bodies were never found as tons of water rushed seaward, taking out trees, homes and lives on the water’s way to Wailapa Stream, the Kilauea Stream and ocean.

 

"I’d say it’s a good day for justice," said Teresa Tico, attorney for some of the victims’ families. The settlement is “very important” to her clients, who lost loved ones and for whom Thursday’s actions before 5th Circuit Judge Kathleen Watanabe “finally brings closure,” said Tico.  Her clients have been very patient through the settlement process, but they didn’t actually believe the settlement agreements were going to be approved in the state courthouse in Lihu‘e Thursday, Tico said.

 

William McCorriston, attorney for dam owner James Pflueger, said Pflueger is happy to have the civil cases out of the way. Settlement was “a matter of social responsibility, community responsibility. Everybody thought it was fair.”  “In the final analysis,” the settlement is good for Pflueger, said McCorriston, who added that the plaintiffs should not have any trouble getting their settlement amounts from Pflueger.  The settlement wasn’t “a matter of legal responsibility or obligation,” but the right thing to do, said McCorriston, reiterating that Pflueger will “fight the criminal case vigorously,” and still feels he has been “unfairly scapegoated” in what still might be proven in court to have been an act of nature and not a negligent act of man or men.

 

Pflueger has been charged by the state with seven counts of manslaughter — one for each death, not including the unborn child. Pflueger is accused of being reckless in the way he modified the Ka Loko Reservoir, which failed in 2006 after 40 straight days of rain.  Terms of the settlement of most of the civil cases, and the probate cases on behalf of those who perished as millions of gallons of water rushed through the northern Wailapa Road residential neighborhood makai of Kuhio Highway south of Kilauea, are sealed and confidential by agreement of the parties and the court.  But the state and county shares of the settlement are expected to be made public, especially the state share, as it will require an appropriation of the state Legislature during the 2010 session beginning in January, said Kenneth Robbins, an O‘ahu private attorney representing the State of Hawai‘i at Thursday’s proceedings.

 

McCorriston said the manslaughter case against Pflueger is scheduled for trial before Watanabe in April 2010, but that many motions are expected to be heard as early as January, including a double-jeopardy motion.  An appeal of Watanabe’s decision to allow state Attorney General Mark Bennett to continue representing the state in the criminal case is pending before an O‘ahu appellate court, McCorriston said.  All told, there were 16 attorneys present in Watanabe’s court Thursday for a session that lasted 45 minutes.
 
Watanabe thanked the various attorneys for their professionalism and willingness to work together, and thanked mediators Keith Hunter and Warren Price. She said that, without the efforts of Hunter and Price, there would be no settlement.  “With this global settlement, it is hoped by this court that there will be closure for families who lost lives and property,” Watanabe said.  “This has been a difficult case for all of us,” said Robbins, thanking Watanabe for her work as well.  “It’s a very complex case. It was a tremendous tragedy,” said Robbins.  “The county’s attorney is reviewing the settlement and will reserve comment until that review is complete,” said Beth Tokioka, Mayor Bernard Carvalho Jr.’s executive assistant.  The deceased are Alan Gareth Dingwall, Daniel Jay Arroyo, Rowan Grey Makana Fehring-Dingwall, Aurora Solveig Fehring, Christina Michelle McNees (and Baby Doe McNees), Timothy Wendell Noonan Jr. and Carl Wayne Rotstein."  Of course, we'll still be hearing much more on Ka Loko as we head into the criminal trial.  

Most of us are interested in renewable energy, and I found this article from the Hilo KPUA news station on Oct 30th of interest - "Hawaii plans undersea power cable."  The article went on to say that  "Hawaii is moving forward with plans to build an undersea cable that would bring wind power from the island of Maui to Oahu. Government renewable energy officials announced Thursday they are accepting bids from contractors to do an environmental study of the cable's possible impacts on whales, the ocean floor and coral reefs. It could take between two and three years to finish the study and obtain permits, and then it would take only a few months to build the cable itself. Gov. Linda Lingle says the cable is needed to wean the islands off their dependence on foreign oil, which sucks money out of the state and could wreck the local economy if it were ever cut off."  Wow, I can't wait to see how this comes out. 
 
I'd like to end of a story with a personal note: Here's an "only on Kauai" article from the Oct 29th Garden Island "2 people injured, 2 wild pigs killed in traffic crash."  — "A 150-pound wild pregnant sow and her 50-pound baby pig were killed when they were struck by a car Tuesday morning on Kaumuali‘i Highway near the entrance to Kahili Mountain Park, a county news release said Wednesday evening.  The accident occurred at around 5:13 a.m. while it was still dark, and none of the motorists on the road at the time saw the pigs until they were very close, according to police.
 
There were two vehicles heading east on the highway in the area. When the driver of the first vehicle saw the pigs, he swerved to avoid them, and then continued traveling east.  The second car collided into the pigs, killing both on impact, and then spun out of control and into the westbound lane hitting a Kaua‘i Bus, the release says.  The drivers of both vehicles involved in the crash sustained minor injuries. They were taken to Wilcox Memorial Hospital where they were treated and released."
 
Some of you may know that I had a similar experience several years bach while driving down the highway from Princeville.  As I was driving along, a huge boar burst out of the bushes from the left side of the road leaving me with no time to do anything but brace for impact.  I saw him hit my car, then watched him spin around in the middle of the road as I pulled to the side.  Another car behind me grazed him but he took off running into the bushes on the right side of the street. The second car stopped briefly but left when they saw that the boar was gone. I, on the other hand, was sure my car, which back then was a Suzuki Grand Vitara, was badly damaged.  I opened the driver's door slowly and was surprised to see that the entire side of my car had been slimed by mud.  It radiated from the front tire up to the back of the car. 
 
It was truly a miracle that the boar hit right on my wheel, and that the only damage was a cracked lens cover on my running lights and the pins that hold the wheel well in place were sheared.  Plus I needed a front end alignment.  (No surprise there!) It was on that day that I learned the meaning of the terms "going full boar" and "takes a licking and keeps on ticking."  That boar, much to the dismay of many of the locals who had visions of Kahlua Pork was apparently uninjured and never seen again.
 
On to your update!  Don't forget to call before you buy or sell to get the facts!
 
Aloha Elaine


posted by elaine@kauairealestatenow.com November 02, 2009 17:10 | permalink | comments (0) | General

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