StarAdvertiser-article

July 23, 2014

Eatery keeps serving favorites despite uncertainty over lease

By Erika Engle

Many pause at the door to review menu options first; nevertheless, a steady stream of customers walks through the door at Pepper's Place in Kai­lua Shopping Center.

Late Monday morning, co-owner John Dee cheerfully called to one pair of customers just outside, "It's 6,000 miles to Philly. Better eat here!"

The male customers smiled, entered and placed their orders.

Dee, his wife, Carol, and their seven employees are serving fresh-to-order cheesesteaks, custom-crafted foot-long hot dogs, other sandwiches, kids' meals and various styles of potatoes, on what may be their last lease for the space.

Their lease expires Aug. 15, and they have yet to finalize a renewal with Alexander & Baldwin, which in December purchased the shopping center, along with most of Kai­lua, from Kane­ohe Ranch. About 70 percent of Kai­lua's commercial real estate and 90 percent of its retail property was included in the transaction.

"We just want more time," Carol said.

Advertising for Pepper's Place will debut in Japan next month, the Dees are in talks to expand to Japan and the shop has outstanding gift cards that have yet to be redeemed.

"It's a financial obligation to us and to our customers," she said.

Months ago Carol was told another company had offered to pay A&B double the rent that Pepper's pays; meanwhile, its lease renewal talks got repeatedly delayed.

The last meeting A&B official Kimo Steinwascher had with the Dees was in May, Steinwascher told TheBuzz. He had been out of town and did not have an immediate response to queries about the lease.

As of Monday, Carol Dee was in the process of mailing a certified letter to A&B to try to expedite a lease renewal or extension.

The Dees fully expect to pay increased lease rent to their new landlord, but along the way they were told "it wasn't all about money," she said. Rather, A&B was leaning toward putting a different concept in the 400-square-foot space that Pepper's has occupied since 2002. They were offered a 900-square-foot space on Hekili Street a few blocks away.

Moving to a new space would be akin to "starting over" for the Dees, Carol said.

"We can change our menu, we can add healthier items," she said, but for years, Pepper's was prohibited, via its lease, from offering salads so as not to compete against the nearby Subway restaurant, which they used to own. In the intervening years, Aloha Salads was granted space right next door to Subway.

The Dees were Hawaii's first Subway franchisees, having opened the McCully Shopping Center location in 1987 and eventually owning four stores.

On Monday, Carol happily greeted a pair of Japa­nese visitors who were standing outside Pepper's door with the Japa­nese-language version of their menu, which also happens to be posted outside, and she offered to answer any questions.

In addition to a cheesesteak to split, they also ordered Pepper's famous Happy Fries, which are fried potatoes in smiley-face shapes.

Pepper's is famous for them. "They're like breaded mashed potatoes," John explained, "light, not oily."

In addition to the unique Happy Fries, Pepper's offers eight other types of potatoes, including baked options, as well as onion rings and brownies.

Pepper's serves foot-long hot dogs, as do many quick-service establishments, "but not like these," Carol smiled. Pepper's foot-longs "are packed here locally" especially for the Dees.

While in Philadelphia, home of the cheesesteak, the provolone-vs.-Cheez Whiz battle rages, peace prevails at Pepper's.

The bright-orange processed cheese product used in Philadelphia originals is "too salty," Carol said, "so we came up with our own formula" using cheddar cheese, which is coupled with slices of natural provolone on Pepper's creations.

John is in the restaurant cooking twice a week, while Carol handles front-of-the-house duties on weekdays, and employees round out the restaurant's staffing needs.

John has been known to entertain customers with sleight-of-hand magic tricks and is often referred to as the "Magic Man."

Customers "love the cheesesteaks, but they come in for him, too," Carol smiled.

PacificBusinessNews-article

June 22, 2014

Castle Medical Center expands across Windward Oahu

By Matt Tuohy

Castle Medical Center is adding more and more services and medical office space to the Windward side of Oahu.

Travis Clegg, the center’s vice president of operations, said the hospital has been expanding its operations on the Windward side since purchasing the Kailua Professional Centers 1 and 2 on Aulike Street last year. While the office buildings are currently operating as physician offices, but Clegg says they plan on increasing the number of physicians in the building and adding more outpatient services.

“We really want our community to view these buildings and Castle Professional Center in Kaneohe as health care destinations that are an extension of Castle Medical Center,” said Clegg.

The Kailua hospital, which is owned and operated by Adventist Health, is also planning a$28 million renovation to expand its emergency room to 25 beds instead of the current 18. It also recently opened a new urgent-care clinic at the Castle Professional Center in Kaneohe and is planning an overhaul to the same building that includes renovations inside and out. There will also be a new three-level parking garage built for the professional center.

“The overall footprint will be the same the building [but] will have an updated modern look with modernized elevators and infrastructure,” said Clegg.

Castle Medical Center is one of 18 companies that will be honored at PBN's Healthiest Employers awards program on July 31, for its work in engaging with employees about healthy lifestyle decisions in and out of the workplace. Registration is still open if you’d like to attend.

StarAdvertiser-article

July 22, 2014

Sewer pipe repair clogging Kailua might take weeks

The traffic mess might be solved soon, but will not be if more digging is required

By Gordon Y.K. Pang

Kailua motorists might have to live with the traffic mess near the entrance to Kai­lua town for up to two more weeks as city officials continue repairs on a corroded 15-inch concrete sewer pipe, 20 feet underground, that created a sinkhole July 11.

The concrete was found to be so badly corroded that city officials ended up removing an 18-foot section — much larger than the 3 feet they expected, said Mark Yona­mine, the city deputy director of design and construction. The original repair, which is almost done, was complicated in part by the depth of the pipe, he said.

On Tuesday workers will examine more of the pipeline, installed in 1958, to see whether an even larger section needs to be removed, Yona­mine said.

The best-case scenario would allow the workers to simply insert a lining to reinforce the pipe. If that's the case, a fix should be completed by Wednesday or so, he said.

The worst-case scenario would require digging a larger trench to remove a bigger section of pipe, Yona­mine said.

"If we have to expose more pipe, that could take a couple of weeks," he said.

A larger trench would also mean a bigger section of road would have to be closed. Two Kai­lua-bound lanes of Kai­lua Road — the right lane and the middle lane — have been closed from the mauka side of Hama­kua Drive since the pipe broke and will remain closed if the trench needs to be bigger, Yona­mine said.

Motorists traveling into Kai­lua can skip the road closure by entering through Keolu Drive, in Enchanted Lake, via Kalanianaole Highway, or via H-3 or Kapaa Quarry Road, city officials advised.

StarAdvertiser-article

July 16, 2014

Castle Medical Center due for $28M upgrade

The yearlong project targets the hospital's emergency room and other departments

By Kristen Consillio

Castle Medical Center is investing $28 million to renovate the hospital and expand its emergency room to keep up with demand in the growing Windward community.

The primary provider of emergency and trauma care in Windward Oahu is hoping to begin the project in November, said Castle spokes­woman Jasmin Rodriguez.

"We continue to not only grow with new programs and services, but our ER has gotten more visits than we ever had before," Rodriguez said.

"With the growth of the Windward side and, of course, the elderly population getting older, we needed to really expand our ER services to meet the needs of our community."

The number of emergency visits has increased by nearly 20 percent over four years to 33,161 in 2012 from 27,751 in 2008, according to a filing with the State Health Planning and Development Agency, assigned to regulate health care projects.

Certain parts of the ER will be closed in phases during the renovations, but the department will remain fully operational, Rodriguez said.

The 160-bed hospital opened in 1963 and has been expanded since then to address the needs of patients from Wai­ma­nalo to the North Shore. Still, much of the building's original infrastructure is currently in place.

The yearlong project will expand Castle's emergency department within the existing hospital footprint, increasing the number of beds to 25 from 18. Renovations will replace outdated electrical and air-conditioning systems.

The obstetrics and behavioral health departments, as well as the intensive care unit, admissions, laboratory and imaging areas will be entirely remodeled. The project does not include any expansion of the hospital's parking lot.

Castle budgeted $23 million for construction costs and $5 million for new equipment. The hospital is owned and operated by Adventist Health, which will use cash reserves for the renovation project, the filing said.

The private, nonprofit hospital, with about 1,000 employees and 300 physicians, is projecting revenue of $20 million and expenses of $14.5 million in the first year of operations after the renovations and $5.6 million in net income.

In its filing, Castle pointed to a growing demand for primary care services as more people obtain insurance coverage through the federal Affordable Care Act, specifically with the expansion of Medicaid, the government health insurance program for low-income residents.

"Although once a source of care for primarily major injuries and life-threatening medical conditions, over the last several decades, hospital emergency rooms have increasingly become a source of primary care — especially to the medically underserved," Castle said. "The addition of these individuals to Oahu's insured population will add to the stress already placed on hospital emergency rooms to provide primary care to individuals who do not have a primary care physician."

In addition to the hospital expansion, the company announced earlier this year that it will spend $24 million to renovate its medical office building — the Castle Professional Center — in Kane­ohe.

Castle said it will provide upgraded office space for primary care physicians and medical specialists. The medical center will expand ancillary services already offered in the building, including imaging services, laboratory, rehabilitation services, urgent care and pharmacy.

The existing parking structure at the Kane­ohe building will be demolished and replaced with a new structure that will accommodate 80 more vehicles. In addition, Castle's investment in the office building will include infrastructure upgrades such as replacement of the current air-conditioning units, elevators and sprinkler systems, as well as a renovation of both the exterior and interior of the building.

That project is expected to start next year.

StarAdvertiser-article

July 15, 2014

Sinkhole, sewer repair leads to Kailua traffic headaches

By Star-Advertiser staff

Lane closures will delay drivers heading into Kailua for at least a week as crews work to repair a broken sewer pipe, officials said.  

City officials believe the broken pipe caused a sink hole to form on Friday at the intersection of Hamakua Drive and Kailua Road.

Crews will be working around the clock for the next week to fix that pipe, but the work will require the closure of at least two lanes on Kailua Road, according to city officials. 

A pump bypass will keep the sewage flowing while the pipe is being repaired, officials said.

StarAdvertiser-article

July 7, 2014

'Heartsick' Hungry Ear will move out of Kailua

By Erika Engle

Lease prices are driving local retail institution Hungry Ear Records from Kai­lua to Hono­lulu.

"We are heartsick to have to move what has always been our flagship store," said co-owner Ward Yama­shita in a statement. Rising rents and "the changing profile of Kai­lua make it impossible to stay in our current location."

Development of mainland retail behemoths Whole Foods and Target in Kai­lua, as well as the constant presence of high-spending visitors from Japan, mean commercial rents are going up.

Yamashita and business partner Dennie Chong tried to find nearby lease rent cheaper than that being sought by the landlord, to no avail, each told TheBuzz.

"For the rent they wanted here, we were able to find something for less, that was larger and offered validated parking," Chong said.

The new digs will be in University Square at 2615 S. King St., Suite A-100. It is at the corner of King and University Avenue, in the same small retail complex as Uyeda Shoe Store.

That recording on vinyl has seen a resurgence has paid off for the small retailer, and being amid a larger population base and close to trend-focused university students might pay off even better.

"New bands nowadays are releasing albums on vinyl," said Yama­shita, naming an eclectic range of artists from the Arctic Monkeys to Lady Gaga.

Additionally, noted jazz label Blue Note Records is celebrating its 75th anniversary by releasing five reissued classic albums each month. Classic rockers including Led Zeppelin and Kiss also are reissuing vinyl, he said.

To answer the "Yeah, but where do I find a turntable?" question, the store sells a range of them, from $100 up to $300.

Hungry Ear will wind down its Kai­lua inventory with a "Moving to Town" sale beginning Monday and running through its last day in Kai­lua, July 19, 35 years to the month since the store opened, Chong said.

Chong and Yamashita plan a soft opening in the new location Aug. 1, after which store hours will be 10 a.m. to 6 p.m. Monday through Saturday. "Once we're up and running," the store may be open daily.

In between the ending and the new beginning, Yama­shita and Chong will be at the Third Annual Hawaii Record Fair from 10 a.m. to 3 p.m. July 27 at McKinley High School Cafeteria. Hungry Ear and other vendors from around the islands will buy, sell and trade vinyl records, CDs, cassettes and music memorabilia.

Early admission at 9 a.m. costs $10, while admission at 10 a.m. costs $5.

The move will be a further evolution of the Hungry Ear legacy.

In the early 1990s it had stores in Hono­lulu and Wahiawa, as well as the flagship Kai­lua store founded by Luke Yama­shiro and friends Dennis Chun and Reyn­old Kong.

The location at 418 Kuu­lei Road first was home for a store called Vinyl Donut and then Bullseye, Yama­shita said, "and when that went out of business, they opened Hungry Ear." Yama­shiro had been an employee of "both previous stores," Yama­shita said.

The store sold music on vinyl and subsequent media platforms through good and bad economic times, through four store locations and six U.S. presidents, the partners noted.

"We all grew up in this store," Chong said. "Luke was a surrogate father or older brother to most of us and was a fount of musical knowledge for all of the community." Yama­shita met his wife, Mary, at the store in 1985.

Upon Yamashiro's death his widow, Michelle, ran the business until 2008 when Chong and Yama­shita, both of whom had worked for Yama­shiro in previous years, assumed ownership.

Separately, Coconut Grove Music, of which Yama­shiro was a co-founder, was willed to other family members. The music store, no longer connected to Hungry Ear, relocated in March to the second floor of the Hawaiian Water Sports building at 167 Hama­kua Drive.

Reach Erika Engle at 529-4303, erika@staradvertiser.com or on Twitter as @erikaengle.

PacificBusinessNews-article

July 4, 2014

Kailua's July Fourth fireworks return, thanks to donations from businesses and residents

By Braelyn Wood

The annual Kailua Fourth of July fireworks show will return on Friday thanks to the sponsorship from businesses includingAlexander & Baldwin, Clear Channel and Macy's, as well local residents, including one who calls himself "Uncle Kokua."

The annual fireworks show and daytime parade have been a tradition in Kailua since 1948. But in 2005, the Kailua Chamber of Commerce decided to pull funding from the fireworks shows and focus exclusively focus on the parade.

The funding passed between the hands of various companies and committees until 2012, when the fireworks display was cancelled due to the lack of funding.

Eight Kailua residents formed a volunteer foundation in 2013 to raise money for the Fourth of July fireworks and air show, but the funding fell short by $25,000 and the event was almost cancelled.

That's when part-time Kailua resident Uncle Kokua stepped in, and donated the remaining funds to save the show.

Uncle Kokua is the pseudonym for Marc Paskin, a San Diego multi-millionaire who earned his fortune from real estate investments. He was featured on the ABC television show “Secret Millionaire” in March 2011 and also has his own show on KFVE called “Uncle Kokua.”

Uncle Kokua decided to donate again in 2014 after saving last year’s display, and offered to match event sponsor donations up to $25,000.

The event sponsorship included four different levels including platinum, gold, silver and bronze. The highest platinum level sponsorship was for donations over $25,000. Uncle Kokua was the only platinum sponsor. The other sponsorships ranged from $2500 to $10,000 donations.

Sponsors for the 2014 Firework display included Clear Channel, Alexander & Baldwin Inc., the John King Family, Macy’s, Kalapawai Market, Bank of Hawaii, Hardware Hawaii and D.R. Horton.

This year's goal for the foundation was to raise $80,000. While the foundation was still counting the money from donation boxes around Kailua as of Thursday, the total amount raised was still at $72,000.

Even though fireworks are paid for this year, the foundation wanted the complete amount to help pay for parking, security and marketing. Any money left over from this year’s event would be used to begin planning the 2015 firework display.

Kailua Fireworks committee member Linda Ross emphasized the importance of community donations in making sure the event continues into the future.

“The show continues to be funded by the residents. Although we are the organizing group, there is no one entity paying for it,” said Ross, “Our show is really just a group of mish-mash residents who have come together and work throughout the year to make sure the event happens. We’re still relying on everyone. We still need help from the community.”