Search

Real estate developer Peter Savio has been making deals in the down economy. His strategy for 2011 is to convert rentals to affordable condominiums and convert old hotels to college dormitories.

The gift giving of firms in Hawaii started to increase for the 2010 Holidays after dropping in 2008 and 2009. The trend is believed to indicate that businesses are starting to feel more optimistic about improvements in Hawaii's economy. Other views and information on corporate gift giving in Hawaii are presented.

Aloha Pacific Federal Credit Union is taking a break from a growth program that saw membership increase by almost 50% after the opening of two more branches in Kailua and in Las Vegas. The credit union also recently invested $20.8 million for an office building in Kaimuki. Other information on Aloha Pacific and on its growth are presented.

Businesses in Hawaii are learning to maximize the use of group-buying websites such as Groupon. J.J. Dolans Irish pub owner Danny Dolan for example, revealed that while the websites enable them to earn revenue upfront, the free stuff that they give away also takes its toll on the business. Other information on the websites and on the firms that use them are presented.

The potential impact of a recent Hawaii appeals court decision on Group Builders Inc. v. Admiral Insurance Co. on contractors are discussed. The court found that construction defects can never be an occurrence so commercial general liability insurance policies do not provide coverage for a construction defect claim. Key information on the case are also provided.

Hawaii real estate companies are using Web-based tools to attract new customers, speed transactions, and improve sales. For example, Coldwell Banker Pacific Properties has added QR codes to its yard signs. Senior vice president Lori McCarney says the codes provides access to information for mobile users.

Businesses in Kailua, Hawaii are benefiting from the increasing number of Japanese tourists who visit by bus or through rented cars. Tour company JTB Hawaii Inc. for example, allows Japanese tourists one-and-a-half hours of free time, resulting in increased sales for merchants and eateries in the area. Japanese tourists are estimated to contribute $15 million to Kailua's economy every year.

The U.S. Environmental Protection Agency (EPA) is expected to be tougher with renovators as it started to implement the EPA Renovation, Repair and Painting Rule. The rule covers works on buildings that may contain lead paint. Other information on the rule and on lead paints are presented.

Shred-it and Access Information Management's competition has resulted in two lawsuits, request for restraining orders, and complaints to Hawaii's Department of Commerce and Consumer affairs for breach of franchise law. The companies' accusations include deceptive business practices, revealing trade secrets and unfair competition. Insights on the shredding market are also given.

Women-owned small businesses are expected to benefit from a federal contracting program to be implemented by the US Small Business Administration starting in 2011. The program sets aside contracts of up to $5 million for women-owned small businesses and aims to reach the goal of allotting 5% of federal contracting money to these businesses.

The Newspaper Association of America has reported that the $6.2 billion classified advertising revenue in 2009 is a 68 percent dropped from $19.6 billion it generated 10 years ago. The trend shows the formation of Honolulu-Star Advertiser from two daily newspapers merger might no longer relevant to classified ads future. Insights on the growth of online advertising are also given.

Communications Pacific is planning to shutdown its advertising division. It is also set to partner with a local advertising firm to provide creative and media services. The company has cited the economy as reason for the move.

The Honolulu Advertiser and Star-Bulletin's merger has worried businesses that advertised in Honolulu's daily newspapers due to new rate card that increased ad prices by as much as 40 to 50 percent. The Honolulu Star Advertiser's press also gave few options for businesses that print their own publications. Insights on the merger's economic impact are also given.

Hawaii governor Linda Lingle has signed into law Act 155, which adds personal liability for unpaid taxes and threatens the nonprofits' tax status. The law requires the registration of all business and nonprofits that do business with the state and the filing of the necessary report regardless of whether they pay the general excise tax. How critics view the law is also presented.

Reactions of Hawaii-based businesses to a federal court ruling on the unconstitutionality of a state law are discussed. The said state law mandates the terms of ground lease rent renegotiations with industrial land owner HRPT Properties Trust. The said businesses had been forced into arbitration to renegotiate lease rent with HRPT.

Bank directors outside of bank boards are important to financial institution governance because they are responsible for the welfare of the bank, its customers, and its investors. Patrick McFadden and David Heenan are two of the directors in Hawaii's nine banks. The importance of continuity for the board is also discussed.

Banks in Hawaii set aside almost $115 million as allowance for bad loans in the first quarter of 2010. Federal Deposit Insurance Corp. has revealed that the allowance for these losses is 27% more than the $422.5 million allowance in the same quarter in 2009. Only Hawaii National Bank, Territorial Savings Bank, and American Savings Bank have lowered the amount set aside for loan losses.

Seoul, South Korea-based electric car manufacturer CT&T has inked an agreement with the state of Hawaii for the location of an assembly plan and showroom in West Oahu. Four as-yet-undisclosed sites in West Oahu are being considered by CT&T. As much as $30.5 million might be incurred by CT&T on land costs.

The Gold Coast Neighborhood Association in Hawaii has previously filed a lawsuit to force the state to pay for repairing the seawall along its property. However, the state filed a countersuit against the owners of the individual buildings and asked for judgment that will settle dispute over the responsibility for the repair. Insights on the functions of the seawall are also given.

Accounting firm Grant Thornton is set to leave the Hawaii market after more than 50 years and a new firm called PKF Pacific LLP will take over its practice. PKF Pacific will be owned by Grant Thornton's audit partners, Patrick Okl and Lawrence Chew, but will become a dues-paying member of PKF North America. Details of the changes in big accounting firms are discussed.

Miles Furutani, appointed receiver of Makena Resort by Wells Fargo, has sued Kakea LLC due to the fence blocking the golf cart path to the 17th tee of the resort's South Golf Course. The fence was built by Kakea LLC as part of the construction site for Everett Dowling's luxury subdivision called Maluaka. Other details of the lawsuit are also discussed.

The resort real estate market in Hawaii seems to recover considering that sales were up by almost 20 percent for the first quarter of 2010 compared with 2009 figures. Total sales in 2010 could reach 1,288 homes, surpassing the 1,058 sales of resort homes in 2009, and the 1,082 sales closed in 2008. Factors that have been motivating buyers to make home purchases are discussed.

The three major candidates for Hawaii's first congressional district have all hired Mainland advertising agencies to create their TV ads instead of Hawaii's ad agencies. Democratic candidates Ed Case and Coleen Hanabusa, as well as Republican Charles Djou, were all vying to replace Democrat Neil Abercrombie in a special election. How Hawaiian agencies view the move is also presented.

Bert A. Kobayashi Jr. and Ian MacNaughton, who both represent the next generation in Hawaii real estate, have branched out from their family companies and launched the BlackSand Capital. The real estate investment firm will focus on purchasing and developing assets in the Hawaiian Islands. Insights on their plans for the firm are also given.

Safeway has bought a property from Schuman Carriage where it will build a new store in Hawaii. A number of supermarkets have refurbished their stores in Hawaii. A description of the planned facility is also provided.

The University of Hawaii Economic Research Organization reported that Hawaii's economy is beginning to show signs of growth. It reported that the tourism sector experienced an increase in jobs and visitor arrivals, but that the public sector would serve as a drag on the economy.

Kyo-ya Co. Ltd. is proceeding with plans for a $700 million redevelopment project in Waikiki, Honolulu, Hawaii. Plans include the redevelopment of the Princess Kaiulani property and the construction of a 282-foot-high hotel.

Central Pacific Bank (CPB) has hired turnaround expert John C. Dean, who is replacing Ronald Migita as executive chairman. CPB plans to cut its assets by $1.4 billion in three years' time, similar to rival Bank of Hawaii's turnaround in 2000, which saw the sale of its non-core assets. CPB's plans for capital ratio improvement are discussed.

Proposals to stimulate the Hawaiian construction industry are not being tackled as half of the proposals were not put into schedule for a legislative meeting. A group of business and labor leaders have been created to address the construction initiative, but it has not come up with relevant results. Details on the proposals are presented.

Hawaiian lawmakers have passed a legislation that requires real estate appraisers working as arbitrators in ground rent negotiations to abide on the same rule that guide appraisals. Hawaii Gov. Linda Lingle needs to decide on Senate Bill 771, which was created to give transparency to negotiation process for leasehold property. How appraisers view the bill is also presented.

The Hawaii Supreme Court will decide on whether a development plan will be done by the group of lenders that took title to the 858-acre Turtle Bay Resort in Oahu, Hawaii. Instead of a foreclosure, the development plan will include the construction of additional hotel and condominium units in the resort. Implications of possible court rulings that might ensue are discussed.

The filming of American Broadcasting Company's castaway drama 'Lost' has made an estimated $400 million impact on Hawaii's economy during its six seasons. However, Hawaii will also lose millions of dollars which the production steadily pumped into the state economy when it leaves the island. Insights on the impact of other TV series made on Hawaii are also given.

Honolulu, Hawaii-based Black Diamond Hospitality Investments, new owner of the former Diamond Wailea Resort & Spa, was embroiled in a lawsuit filed by minority owners with regards to the hotel's renovation bill. Each tenant-in-common (TIC) investors was levied $16,813 assessment as their share of a $23.5 million renovation cost. Insights on the TIC investors are also given.

Hawaii's Legislature has a pending package of bills that could potentially generate millions of dollars for both construction spending and tax revenue. Hawaii's Construction Industry Task Force has made recommendations into the measures designed to make it easier and less costly for builders and developers to initiate the projects. Insights on the bills' status are also given.

The Hawaiian Legislature has proposed a 1% tax hike on real estate businesses that will take effect on July 1, 2010 and continue for five years. The tax is applicable to commercial and residential sales and will be implemented on gross sales proceeds minus conveyance tax and sales commission.

Servco Pacific won in its arbitration with HRPT Properties Trust over the rent for a 9.6-acre lot in Mapunapuna, Hawaii being used as a car dealership. The court announced that Servco would pay $5.26/square foot for the property, or $2.2 million/year, as opposed to HRPT's demand of $7/square foot with a 4% increase every year for 10 years.

Time share taxes in Maui have increased significantly. The increase has adversely affected property owners in the area. County officials have been trying to balance its budget by collecting more money from absent vacationers.

The commercial real estate market in Oahu, Hawaii, is faring better than most markets in the US and may start recovering in 2010. Real estate experts believe that the recovery could be stifled by increasing state and county taxes.

The content of gift baskets people in Honolulu are receiving in 2009 has been reduced. Isle Concierge's managing partner, Jan Hori, says that local businesses spent around $50 for an average basket in 2008 while they spent about $35 per basket in 2009. How much these companies are spending on gift cards is also discussed.

Home sales in Hawaii have been steadily rising since it bottomed out at the start of 2009 even if only a handful of sales were affected by the $8,000 tax credit for first-time homebuyers. The expiration of the tax credit has already been extended for six months. How much influence the tax credit had on Hawaii sales is also discussed.

HRPT Properties Trust of Newton, Massachusetts has filed a federal lawsuit against Hawaii claiming that a law has narrow application to HRPT and hinders private contract negotiations. The law originated from a bill introduced by Hawaii House Speaker Calvin Say, and his link to Warabeya U.S.A., Inc. is mentioned in the lawsuit. A company that pays rent to HRPT leases a building to Warabeya.

Allen Doane will be turning over his post as CEO of Hawaii-based Alexander & Baldwin (A&B) to Stan Kuriyama on January 1, 2010. He shares possible business strategies that might be undertaken by A&B by the next six to 18 months. Doane also stresses the importance finding his successor, who according to Doane himself, must do a better job than he did.

Banks in Hawaii posted a 6 percent annual increase in income for various fees during the first two quarters of 2009, despite the recession. These fees are sourced from different banking activities, such as automated teller machine transactions and bounced checks. Meanwhile, these banks have amassed almost $52 million in service charges over the first half of said year.

Hawaii's West Waikiki district has been experiencing vacancies in restaurants and stores located along the Kalakaua Avenue. Despite this trend, optimism about the districts economic recovery has been expressed due to the district's location. Tenants might also avail of spaces in West Waikiki when retail spaces in the center of Waikiki get occupied.

The strict requirements of the Small Business Administration's America's Recovery Capital interest-free loan program might attract only a few small businesses in Hawaii. Among the requirements is the need for applying businesses to identify the exact cause of their financial hardships. Applicants are also compelled to present two-year cash-flow projections.

Bank of Hawaii and American Savings Bank have both stopped commissioning business confidence survey which created a gap in the historical data going back to the start of the last boom and bust in the early 1990s. The loss of the Hawaii surveys was unfortunate because of the state's isolation and unique economy. The importance of the surveys is also discussed.

Merrill Lynch has announced that Carl Choy, Lynne Kinney and Ronald Wo of The Chong Kinney Wo Group were no longer with the company. The wealth management team, who left Morgan Stanley on October 10, 2008 for Merrill Lynch, has managed 1,200 clients with assets of more than $900 million. Details of lawsuit filed by Morgan Stanley against the group are also discussed.

The recession has led to the 15% decline in the net worth of the wealthiest residents of Hawaii who are living in East Honolulu. Residents in the Kuliouou and Waialae Nui communities have cut their clothing and services expenses by 25% and recreation by 15%. Other spending cuts in HawaiiEs wealthiest ZIP codes are presented.

The Moana Vista condominium tower in Kakaako, Hawaii is set to be auctioned. The project's contractor has foreclosed on the developer for failure to pay $29.5 million in fees. KC Rainbow II is set to cancel 175 sales reservations.

Larry Rodriguez has been named to board of directors of Goodwill Industries. Rodriguez has been chosen for his work in business and in the community. Comments from executives are also supplied.