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Monday, July 9, 2012

Hawaii Business - article

July 2012

Kailua seeks balance

Businesses and jobs vs. preserving a residential community

    
It’s a hot Thursday and state Rep. Chris Lee is sitting in traffic trying to get out of Lanikai, his home neighborhood in Kailua. It’s 2:30 p.m., and Kailua and Lanikai beaches are still full of people, but cars trying to leave the area are already backed up way past Buzz’s restaurant.

Lee is supposed to be at a meeting in Honolulu in half an hour, but he’s not going to make it on time.
“I don’t think we can limit the number of people coming into Kailua,” he says, “but I think you can manage how those people come into the community and where they’re going to be, to mitigate the impact on any one neighborhood.

“We’re a welcoming town, and our challenge is to make sure that the needs of our residents continue to be met and aren’t overlooked because of an increasing focus on tourism. Finding that balance is key.”

Balance is the word many people use these days in response to the tourism and development boom as visitors and Oahu residents flock to Kailua, a once sleepy suburb by the sea. The problem is: Different people have different visions of balance.

Stores, tour operators and rental businesses are flourishing and hiring more people, but many long-time residents see their laid-back lifestyle dying, with some saying tensions are close to a “boiling point.”

At peak time on a busy weekend, it can take an hour or more to drive the two miles out of Lanikai. Judy Bishop, who runs a recruiting and staffing agency, says she tries not to go to the beach or even leave her Lanikai house on weekends because of the crowds and traffic.

“The sheer volume of local people and tourists is overwhelming the infrastructure of Kailua,” Bishop says. “We love to have visitors, tourists, people from Aiea or Pearl City or Kahaluu, come to our beaches because these are very popular with residents. … But we can’t fit a busload of tourists in there. We’re being overwhelmed. The parking area, the little bridge, the narrow roads, it wasn’t designed for tour buses.”

There are other friction points:
  • The long-standing dispute over illegal bed-and-breakfast facilities and short-term home rentals that cater to tourists eager to see “the real Hawaii,” and upset neighbors and unsettle communities of long-time residents.
  • The construction of big-box stores, Whole Foods Market, which opened in April, and Target, scheduled to open next year.
  • D.R. Horton-Schuler’s development of 153 condominiums in six four-story complexes on Kailua Road, which eliminated rundown but affordable apartments for low-income people.
  • The emotional debate over state Senate Bill 2927, which would have eliminated planning, zoning, height and environmental oversight around rail and bus-transit stations around Oahu, including Kailua. The bill died in the Legislature, but it may be revived next session;
  • The proliferation of rented kayaks, paddleboards and other watercraft on the beaches, in the water and on the offshore islands that serve as bird sanctuaries.
  • For years, private landowners allowed hikers to cross their property to reach the trail to the World War II pillboxes above Lanikai, but the owners now chafe as the number of climbers has grown exponentially, seriously increasing erosion.
There are many themes to the competing interests: jobs, revenue and profit versus oceanside lifestyles and traditions; newcomers versus oldtimers; traditional stores versus unconventional entrepreneurs plying their wares from front yards or the beach; beautification and development versus preservation and Kailua for Kailuans.

“There’s no one who will tell you Kailua isn’t prettier, with the new storefronts, the shady median and the upgraded shops like Whole Foods,” says one resident. “But some wonder: ‘At what price?’ ”
 
Mitch D’Olier says one person is largely responsible for bringing all those extra tourists to Kailua. “I am absolutely convinced it’s the Obama effect,” says D’Olier, president and CEO of Kaneohe Ranch, which has recently redeveloped 15 of the 40 acres it owns in the heart of Kailua.

“The tour bus people say, ‘We’re no longer selling a Haleiwa tour, we’re selling a Kailua tour. It’s closer (to Waikiki), and the second thing is Obama-san,’” D’Olier says.

“This is where the president comes when he comes home. They want to eat shave ice where he eats shave ice, and they want to walk on the beach where they’ve seen him walking with his daughters. He’s an iconic figure who has been very good for Kailua at exactly the time we needed something. We were heading for recession and I was worried we were going to lose merchants.

“But,” he continues, “we need to manage the traffic better and we need to manage the recreational places better. And we need to enforce whatever rules are there. When people can’t get out of Lanikai, when traffic doesn’t work, no, that’s not what we see for Kailua.”

Bus companies wanted to drop off tourists at the district park, he says, but he told them that would be a “nightmare” and create a community backlash. Instead, Kaneohe Ranch provided space on Hekili Street for tour buses and opened up the 135 stalls on the second floor of the parking garage beside Longs Drugs, for extra cars drawn by the opening of Whole Foods.

Many smaller businesses that cater to both tourists and locals are thriving: Boots & Kimo’s Homestyle Kitchen has a constant lineup for breakfast and lunch; Pablo Gonzalez gets an overflow crowd daily at Lanikai Juice; and James Kodama’s Island Snow may be the biggest single beneficiary of the Obama effect. The president and the first family have bought Kodama’s shave ice during every Christmas vacation for the past four years, and that translates into national and international media coverage for Island Snow.

“The Obama thing for Kailua has definitely made a difference for all businesses in Kailua,” says Kodama, who owns the Island Snow shop, but has turned operations over to his son, Brockton.
When he was growing up in Kailua, Kodama says, “Stores really couldn’t survive here.” He welcomes the changes to what he remembers as a dull and sluggish town where he had trouble finding even part-time work as a teenager.

“It’s been a hidden jewel, but it’s no longer hidden,” he says. “When the Japanese people come in, they’re appreciating exactly what you and I appreciate.”

But Chuck Prentiss says the balance has been lost. Prentiss is president of the Kailua Neighborhood Board, which supports a more tranquil windward lifestyle and wants kayak rentals banned from Kailua beaches.

“Kailua and Kalama beach parks are public recreational properties, not commercial shopping centers,” he told the City Council in a hearing on Bill 11, CD1, which would prohibit commercial activities at those beach parks. “In fact, they are zoned P-2 Preservation. Furthermore they are located in an area that you have designated as a residential community on the Oahu General Plan and the Koolaupoko Sustainable Communities Plan. … The General Plan designates other parts of the island as resort destinations where regulated commercial beach activities are permitted. … Let’s not make a mockery out of our strategic planning process.”

Prentiss said passage of the bill would not force anyone out of business. “Anyone can have a kayak rental business that is conducted from a commercial property in Kailua, which rents to locals or visitors, who can take the kayak to the beach. But for them to use scarce beach space for constant delivery and pickup of hundreds of kayaks every day, conduct lessons for kite boards, paddle boards, surfboards, etc., is totally incompatible and inappropriate outside of designated resort-destination areas.”

A vote on the bill was delayed when the city’s attorney advised the City Council that it was overstepping its powers by regulating commercial activities at the parks. Meanwhile, city Parks and Recreation director Gary Cabato says he is drafting park rules that may include a limited number of permits for rentals.

That’s what Bob Twogood hopes for. Twogood, who has spent three decades renting kayaks, says a complete ban would put at least three companies in Kailua out of business. He suggests a “reasonable permitting” system that allows the four store-based rental companies now operating to deliver kayaks next to Kaelepulu Stream, next to the bridge and across from Buzz’s.

“That keeps our delivery vehicles out of the beach parks,” he says, “and that gives the new kayakers a nice, safe place to learn to control the boat.” Then, he says, they can paddle to the mouth of the stream, drag the kayak across the sand and launch in the ocean.

Twogood says the city recently banned commercial activity in the beach parks from 1 p.m. Saturdays to 6 a.m. Mondays. So, the state will require businesses to buy permits for their kayaks, so that the companies pay $5 each time one of their kayaks lands on an offshore wildlife sanctuary like Mokulua, the twin islands off Lanikai that are nicknamed the Mokes. Lee says the money will be used to protect endangered species and the fragile ecosystems.

Mainlanders, Japanese and other foreigners are not the only visitors to Kailua. Many residents from other parts of Oahu are driving over the Pali or along H-3 to try the restaurants, browse in the shops or hold a family picnic at the beach. But, for many Kailua storeowners, it’s the tourists who keep the lights on.

At Elvin’s Bakery, Richard Wong has watched his sister’s business grow during its six years in operation. “Kailua is a nice town,” Wong says. He especially enjoys the growing number of Japanese tourists, who are particularly fond of the bakery’s blueberry scones.

“Kailua is really becoming a shopping destination,” agrees Kerrie Inouye, manager of the Fighting Eel boutique, which opened in December. “It’s amazing, the rate of growth and the number of people who are shopping. … I’m in absolute heaven here. We have a very loyal clientele, plus the Japanese magazines have a straight Kailua section. And the Japanese tourists want omiyage, so there is a lot of shopping.”

Fighting Eel, a locally owned women’s clothing company, moved into a building fronted by Whole Foods as part of Kaneohe Ranch’s pedestrian-friendly redevelopment of Kailua. The new shops are built with attractive storefronts next to the street, and parking is in the rear.

Kaneohe Ranch also plans to extend the pedestrian-friendly district by selling to the state a 6-acre-hillside parcel parallel to Hamakua Drive. The area, which would be called the Hamakua Nature Walk, would be zoned conservation in perpetuity, include pedestrian walkways on each side of Hamakua Marsh and feature a walkway to the hilltop.

“It provides another place for our community to be healthy,” D’Olier says.

When the Target store opens next year, he says, Kaneohe Ranch and Target will do more traffic studies. D’Olier envisions a traffic signal at the corner of Hekili and Hahani streets, at Target’s main entrance, coordinated with nearby stoplights to create a smooth traffic flow in and out. He’d also like a traffic solution next to Kalapawai Market that eases left turns for people leaving the beach park and Lanikai area, and thereby reduces backups.

“It’s in nobody’s interests for traffic to come to a grinding halt,” he says. “If it comes to a grinding halt, it’s bad for all our merchants.”

Some long-time residents say the boost to Kailua’s economy is worth the extra bodies, while acknowledging that locals have to make accommodations, such as getting to the beach early and knowing when to leave.

“It doesn’t really bother us,” says landscaper Brandon Roper.

“Living in Kailua, we know what a beautiful place we live in,” says his friend, fellow landscaper Chris Canario. “We cannot be selfish. We gotta share.”

Still, there are limits and they both say they don’t want their hometown to ever look like Waikiki. “One time I counted 150 kayaks on the Mokes,” Roper recalls with exasperation.

Friday, May 18, 2012

Building Industry Magazine-article

May 2012

Hawaii Developers
Deep roots, Deep Commitment

By Lee Schaller


(click image to view larger)

Please tell us how scupltures, mosaics, fountains and "living walls" are "Hawaiian sense of place".  These features sure sound like something you can easily find in the mainland if you ask us!


Wednesday, April 25, 2012

Why Buy Local?

Another reason why Big Box Stores and/or mainland stores are not the answer for our Kailua Town, or Hawai'i in general.

PLEASE support all our LOCAL businesses!

(click to view larger)

Monday, April 23, 2012

KITV - article

April 23, 2012

Kailua Residence Oppose Transit Bill
by KITV-TV

Even though the rail's route does not stop in their backyard, Kailua residents fear Senate bill 2927 would give special privileges to developers building near public transportation centers and open the door to high-rise buildings.

"They could build a hotel or a skyscraper or large buildings within small local communities," said Kailua resident Chris Delaunay.

Opponents of the bill passed out fliers at the "I Love Kailua" block party Sunday, asking the public to speak out against the legislation.

Residents said the bill includes development around bus stations and if one of the proposed Kailua sites is picked, it would impact the windward community.

"Basically it will allow for landowners to ignore existing county zoning laws within a quarter mile radius around bus transit centers," said Delaunay.

Area representative Chris Lee voted against the bill, though he believes the statewide legislation could benefit leeward and downtown neighborhoods.

"Its intention is to look at transit oriented development downtown and really push for it with smart growth and urban redevelopment in that area. But what we don't want to see on the windward side is that to have an impact here," said Lee.

Sen. Pohai Ryan also represents the Kailua district.  Ryan voted for the bill with reservations, which she said gives her the power to potentially change it.
"The difficulty is working with the majority that does not oppose the bill yet and having to convince them and point out to them what is wrong with the bill," said Ryan.

Ryan said in no way is she in favor of turning Kailua into Waikiki.  Instead she said she is planning to ask lawmakers to remove Kailua from the list.

"A group in Kailua has been saying that I want a hotel in Kailua and I just want the public to know that is absolutely false," said Ryan.

The bill heads to conference committee Tuesday, which is open to the public, before it gets a final vote. If the bill passes, it does not go into effect until 2050

Friday, April 20, 2012

Hawaii News Now - article

April 20, 2012

Committee Recommends Site in Kailua for Next Landfill
by Rich Meiers

A landfill selection committee has recommended a site for Oahu's next landfill. Mayor Peter Carlisle's Advisory committee on Landfill Site Selection recommended the Kailua Ameron Quarry Site.
Currently, Oahu has two landfills: the City-owned Waimanalo Gulch Sanitary Landfill (WGSL) and the privately-owned PVT landfill. The WGSL is Oahu's only municipal solid waste (MSW) landfill. 
The selection committee was given strict orders not to consider the current landfill site at Waimanalo Gulch.
The committee met for the first time on January 20, 2011.
The nine member committee came up with a list of 20 different criteria.  Things like proximity to homes, schools and tourist attractions as well has rainfall, impact on endangered species and cost.

Thursday, April 19, 2012

StarAdvertiser - article

April 19, 2012

Business ban sought for beaches
Keep commercial activity off our sand, residents tell Council regarding Kailua
by Gordon Y.K. Pang

Members of a City Council committee voted unanimously Wednesday night to support a bill that would impose a blanket ban of all commercial activity at the popular Kailua and Kalama beach parks.
The vote came after a majority of an estimated 200 people at a meeting at Kailua High School the Council Parks and Cultural Affairs Committee that they support such a ban.
Everything from water sports instructional classes to recreational stops by commercial tourist companies would be prohibited by the ban. The only exception would be commercial filming activities.
The vote was 5-0, although committee members Romy Cachola and Breene Harimoto voted "with reservations." The bill now goes to the full Council on May 9 for the second of three required votes.
Enchanted Lake resident Lisa Cates, a lifelong Kailua resident, told the Council's Parks and Cultural Affairs Committee that the influx of commercial activity at Kailua Beach Park has reached a tipping point. "The vendors and tour bus activity are incompatible with our infrastructure, our neighborhoods and the true character of our village community," she said.
Many people feel a spiritual connection with Kailua Beach, Cates said. "To see it exploited for monetary gain is hurtful, it's degrading, and it's pushed everybody together to unite and ask for this legislation."
Lanikai resident Laurie Lindsay said, "I love tourists." However, she said, "There's a place for them. It's called Waikiki."
Chris Delaunay, a Kailua attorney, said that nearly 1,000 people have put their names to an online petition supporting an outright ban on all commercial activity at the two beaches.
"The beaches are for recreation, not for profit," Delaunay said.
Not everyone was for a complete ban at Kailua Beach. People who rely on the beach for their jobs said they think there's room for some business.
Bob Twogood, owner of Twogood Kayaks, said an outright ban would destroy his business, which operates out of Hamakua Drive in Kailua but drops off kayaks and visitors at a parking lot next to the main portion of Kailua Beach.
What's needed is better regulation of existing laws as it pertains to water sports activities on the beach and permits for a few businesses, Twogood said, adding that he also supports banning commercial buses from entering the parking lot.
A complete ban is just the latest attempt at curtailing commercial activity at the two beach parks.
In February, the Council passed Bill 5 (2011) prohibiting commercial activity at the two beach parks from 1 p.m. Saturdays until 6:30 a.m. on Mondays. Mayor Peter Carlisle signed that bill into law on March 1.
The strong community response to Bill 5 prompted Councilman Ikaika Anderson, the Windward representative, to introduce the original language in Bill 11 (2012), which further limited what was allowed for commercial watercraft and tour bus activities.
Specifically, it calls for:
» A limit of two commercial activities each permitted at Kailua and Kalama. There are currently three commercial permits issued, but only for windsurfing and kite-surfing activities, and none at Kalama, according to Anderson's staff. There are no limits now on how many permits the city can issue at each facility.
» Curtailing the types of commercial watercraft activities allowed at each park to storing, setting up and launching in areas designated by the state Department of Land and Natural Resources.
» Restricting recreational stops by tour buses, vans and other vehicles to a turnaround area next to the main restroom facility in the Kailua Beach Park parking lot.
Anderson said the reaction from the community to Bill 11 has been a call for a complete ban on all activity.

Wednesday, April 18, 2012

Hawaii News Now - article

April 18, 2012

Kailua Shoppers enjoy Whole Foods, wonder about Target
by Brooks Baehr

KAILUA (HawaiiNewsNow) – Thousands of shoppers crowded into Whole Foods Market for its grand opening in Kailua Wednesday. And while they enjoyed the vast selection of natural and organic products, some expressed interested in an update from Target Corporation about its planned Kailua store.
The Kailua Target was originally scheduled to open in July of this year (2012) but construction has not begun.

Hawaii News Now called and wrote Target asking for a project update, but Target has not answered.
David Tanoue, Director of the city's Department of Planning and Permitting, told Hawaii News Now Target is still in the process of acquiring needed permits.

"They are going through their grading permit process and pretty much the last thing they need to resolve is working with the State Historic Preservation Division (SHPD) in ensuring that they can address all the concerns with the possibility of uncovering any kind of archaeological finds or iwi (bones) on the site," Tanoue said.

SHPD is a division of the state Department of Land and Natural Resources (DLNR).
A SHPD review is triggered by any permitting activity by the city or state. In this case the SHPD review was triggered by the request for a grading permit.

SHPD asked Target for an archaeological inventory survey plan which Target submitted. SHPD then asked for additional subsurface test trenching based on a review of old maps provided in the survey plan.
In response to an inquiry about SHPD's work with Target, the DLNR wrote, "Kailua was inhabited for centuries before Captain Cook "discovered" Hawaii and there is subsurface evidence of their lives all over Kailua. The archaeological inventory survey may find burials, but that is not its primary purpose. The purpose is to adequately document any historical or cultural sites," the DLNR wrote.

"We have asked Target to revise their survey plan, and are waiting for the revision," the DLNR concluded.
There is no new "official" target date for opening Target's Kailua store. But it will not open any time soon. Target still needs to resolve its business with SHPD. Once that it finished it needs to secure the grading permit. It also needs a building permit. To secure a building permit Target must satisfy the city's concerns about traffic. And Target's web site puts estimated construction time at 10 to 12 months.

It now looks like Target will not open until the summer of 2013 at the earliest.

Friday, February 17, 2012

Pacific Business News - article

February 16, 2012

Whole Foods Market to open third Hawaii store April 18

Whole Foods Market has set April 18 as the opening date for its thrid Hawaii location in Kailua, and plans to hire about 140 people to staff the 32, 000 square-foot store.

The Honolulu Star-Advertiser reports landlord Kaneohe Ranch spent about $12 million developing the kailua Town Center site for the new store, demolishing a collection of smaller buildings and building one large retailer center on Kailua Road anchored by Whole Foods market (NYSE: WFM), and that includes tenants Executive Chef and Fighting Eel.

The newspaper notes that Target Corp. (NYSE: TGT) awaits building permits to break ground on a 130,000 square-foot store several blocks from Whole Foods on the site of the former Don Quijote store and hopes to open later this year.

Whole Foods Market's other Hawaii stores are in Honolulu at Kahala mall and on Maui.

Wednesday, January 18, 2012

Star Advertiser - Kokua Line

January 17, 2012

Kokua Line

Question: Where are we on the construction of the new Target in Kailua? There is no activity going on behind the screening.

Answer: Last September we were told the retail chain was going through the permitting process and looked "forward to bringing Target to Kailua residents in 2012."
We checked again last week, and a spokeswoman told us, "Unfortunately, I do not have anything new to share. We continue to move through the permitting process and look forward to bringing Target to Kailua."
Asked whether a 2012 opening was still on the books, she repeated that she had no other details. Kaneohe Ranch sold the 311,000-square-foot former Don Quijote site to Target last year.