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Monday, August 31, 2015

StarAdvertiser-article

August 31, 2015

New 42-unit Kailua apartment building in the works

The project, on land fronting Kawainui Marsh in Kailua, is projected to break ground in June

By Andrew Gomes

A developer plans to build 42 rental apartments on vacant land fronting Kawainui Marsh in a Kailua neighborhood that includes a mix of single-family homes and small apartment buildings.
The estimated $8 million project is proposed for a 24,593-square-foot parcel at the end of Kihapai Place and is projected to break ground in June if approvals including a special management area use permit are obtained.
Details of the plan were presented in a draft environmental assessment published Aug. 24 by the state Office of Environmental Quality Control.
Kihapai Hui LLC, a company led by developers Tyler Greene and Chad Waters, is buying the parcel from its longtime owner and produced the draft environmental assessment.
The development firm, which also involves Jonah Kogen of Hillside Realty and Development, has a deal to buy the property from a company managed by Gail Patrick Pao Berengue and Sylvia Ann Pao Kruse.
According to the environmental assessment, the property was once partly occupied by a two-story building with nine rental apartments built in 1959 and demolished in 2005.
Kihapai Hui's plan is to build a four-story building named Kihapai Place Apartments with 42 one-bedroom rentals above a surface parking lot with 58 stalls. The company said construction would involve building a retaining wall that redirects runoff away from the marsh toward the street.
The site, along with other parcels on Kihapai Place, is zoned for medium-density apartment use and would fit in with neighboring properties that include single-family homes, duplexes and nine apartment buildings, according to the draft environmental assessment.
The height limit for the property is 40 feet. The proposed building would rise 40 feet and be topped by a 3-1/2-foot parapet ringing a rooftop occupied by photovoltaic panels and a recreation area. The developer said the added height from the wall along the roof's edge is an allowed safety feature under the city zoning code.
If construction begins in June, project completion is expected 12 months later.
Greene and Waters could not be reached for comment. Kogen was reached but deferred comment to his partners.
Greene and Waters, whose companies include The Green Waters Group and Bridge Real Estate Hawaii, are involved in projects that include an ongoing effort to redevelop the Coco Palms Resort on Kauai, building a 24-home subdivision called Ka'ala Highlands on the edge of Wahiawa town, building a cluster of 20 homes called Waikalua Bayside in Kaneohe and building an agricultural subdivision with 23 homes called Olomana Heights in Kailua.

http://www.staradvertiser.com/businesspremium/New_42-unit_Kailua_apartment_building_in_the_works.html?id=323400121

Saturday, August 15, 2015

PacificBusinessNews-article

August 15, 2015

Kailua Macy’s building may convert to shopping-dining complex, Alexander & Baldwin exec says


By Duane Shimogawa

A combination of restaurant and shopping options could be replacing theMacy's store in Kailua in Windward Oahu after it closes down in early 2016, the head of Alexander & Baldwin Inc.'s subsidiary's Kailua operations confirmed to PBN.

Jon Moyer, director of asset management in Kailua for A&B Properties Inc., which owns the ground lease of the building that Macy's occupies, told PBN on Friday that Alexander & Baldwin (NYSE: ALEX) is considering this mixed option for the site.

"We are saddened by the loss of Macy's," he told PBN in an email.

On Thursday, PBN broke the news that Macy's Kailua location, which was built in 1946 as a Liberty House store, was closing down early next year.

The Cincinnati-based retailer decided not not renew its ground lease, which ends on Dec. 31, 2015.

The 61,577-square-foot building on Kailua Road leaves lots of opportunities for other retailers and restaurants once it opens up after Macy's moves out.

Moyer did not specify any brands it would like to move into the highly-visible space in the increasingly popular Windward Oahu beach town, which gained a new Target store in March.

A&B Properties acquired the leasehold interest in the property in 2013 as part of a larger $375 million purchase involving most of the commercial town core of Kailua.

Macy's (NYSE: M) has about a dozen stores in Hawaii, and is opening its first West Oahu location at DeBartolo Development's planned Ka Makana Alii mixed-use project in East Kapolei.

http://www.bizjournals.com/pacific/blog/morning_call/2015/08/kailua-macy-s-building-may-convert-to-shopping.html

Friday, August 14, 2015

PacificBusinessNews-article

August 14, 2015

Macy’s Kailua closure leaves prime real estate opening for possible replacement tenants


By Duane Shimogawa

News of the closure of Macy’s in Kailua, first reported by PBN, opens the floodgates of speculation as to who will replace the Cincinnati-based retailer. We spoke with a number of experts on the area for their thoughts.

Matthew Bittick, president of Honolulu-based Bishop Street Commercial LLC, who lives in Kailua, told PBN Friday that the 61,577-square-foot building along Kailua Road sticks out like a sore thumb.

“Any improvement will be a good thing for Kailua’s image,” he told PBN in an email. “Macy’s has been a great tenant for the area for many years, however, it needs to be redeveloped.”

Bittick, who handles retail real estate deals, said that a big box would not win over the locals in Kailua.

“Demolish the existing building and multi-tenant the area with shops and restaurants, and perhaps, some outdoor seating for the residents and visitors to congregate,” he said.

After Macy’s ground lease ends on Dec. 31, 2015, the landowner, Alexander & Baldwin Inc. (NYSE: ALEX) subsidiary A&B Properties Inc., is expected to take ownership of the building.

Macy’s (NYSE: M), through a spokeswoman, had previously told PBN that the store will remain open through early 2016. It's likely the store will continue on a month-to-month ground lease through early 2016.

Cynthia Manley, president of the Kailua Chamber of Commerce and a Kailua resident, told PBN Friday that in place of Macy’s, she would like to see a family-friendly environment that will add to the shopping experience for the area’s residents and visitors.

“Whenever a retailer offers an opportunity to local residents it’s a win-win for everyone,” she told PBN in an email. “Global Village, [a current women’s retailer in Kailua] frequently showcases resident items. Years ago, when my daughters started a clothing line, Global Village was the first to give them space in the store and even held a mom-and-daughter fashion event in the parking lot. Businesses in Kailua are growing and changing as the need arises.”

Jon Moyer, director of asset management in Kailua for A&B Properties, told PBN Friday that at this point, A&B is thinking about a combination of restaurant and shopping options for the site.

The building that Macy’s occupies at 573 Kailua Road was built in 1946 as a Liberty House store. A&B Properties acquired the leasehold interest in the property in 2013 as part of a bigger $375 million purchase of most of the commercial town core of Kailua and other Hawaii properties from Kaneohe Ranch and Harold K.L. Castle Foundation.

Macy’s has about a dozen stores in Hawaii and most recently closed its Downtown Honolulu location, which was replaced by a Walmart store.

In a reader survey on PBN’s website, posted Friday morning, a majority of voters says another retailer should be inserted in Macy’s place. Readers top choices for brands they'd like to see were Crate & Barrel, Ikea and T.J. Maxx.

http://www.bizjournals.com/pacific/blog/2015/08/macy-s-kailua-closure-leaves-prime-real-estate.html

http://www.bizjournals.com/pacific/pulse/survey/what-should-alexander-baldwin-do-with-the-macys-building-in-kailua-after-the-store-closes/17917202

StarAdvertiser-article

August 14, 2015

Macy’s to close Kailua outlet

Residents lament the retailer’s loss as a final clearance sale is set for early spring
By Kristen Consillio

Another longtime retail institution is closing its doors in the burgeoning Kailua community.
Officials at Macy’s department store notified roughly 70 employees that they will shutter the 59,000-square-foot location at 573 Kailua Road next year after the busy holiday season.
“It’s going to be a real problem. I mean, there’s not another store that compares to this store in Kailua,” said Shelia Smith, 53, who was shopping at Macy’s on Thursday afternoon. “I just think it’s going to be very difficult for people. It’s an unfortunate thing for the community, I know, especially for the elderly. A lot of those people can’t get out and go anywhere, so this is really convenient for them.”
Macy’s Kailua first opened as Liberty House in 1946 and converted to the Macy’s brand in 2006.
The retailer has a final clearance sale planned for early spring, spokeswoman Martha Gil De Montes told the Honolulu Star-Advertiser in an email, but she didn’t give an exact date of closure.
“As the location closes in 2016, we will work to place as many associates as possible in nearby Macy’s stores,” she said. “We are delighted to have been part of the Kailua community over the decades and look forward to continuing to serve our local customers.”
A new Macy’s store is scheduled to open in 2016 in Ka Makana Ali‘i, a regional mall being built in Kapolei. In 2013 the retailer shut its 80,000-square-foot 1032 Fort Street Mall store as part of what the company called “normal-course adjustments to its portfolio.”
Kailua resident Kris Lambert, 67, worked at the store in her 20s when it was Liberty House, and said Macy’s is still the “go-to place for most people” shopping for clothes.
“It is an institution,” she said. “It definitely contributes to the local economy.”
Macy’s “informally indicated” it would not be renewing its ground lease that expires at the end of the year, according to landowner Alexander & Baldwin.
“Obviously, we’re sad to see them go, and we’re actually really disappointed that they chose not to renew,” said Jon Moyer, A&B Properties director of asset management for Kailua. “We will now evaluate our options to make the best use of the space with the goal of retaining the character of the building. It’s important to us that we preserve Kailua’s charm while providing the community a place to gather, and new restaurant and shopping options.”
Aikahi resident Jocelyn Pratt, 59, said she regularly shops at Macy’s and is sad to see it go.
“The thing that’s really interesting with Macy’s, too, of course, is each community has their own blend of merchandise,” she said. “There are things that I kind of think I can find a little bit more simply because it’s Kailua. I come here to look for very specific things. I really try to shop Kailua. I am disappointed (not) just for myself, but I am for the community, too.”
Cincinnati-based Macy’s Inc. acquired in 2001 the former Liberty House department store chain, one of Kailua’s first retailers. A&B bought the land under the Macy’s store in 2013 as part of a $373 million sale from Kaneohe Ranch Co. and the Harold K.L. Castle Foundation that included 70 percent of the commercial-zoned land in Kailua and other property on Oahu.
Some Kailua residents have been lamenting the changing face of the small-town community over the past few years. In 2011 Don Quijote’s Kailua branch closed its doors, making way for a new Target store.
“I think they have a vision that we’re not privy to,” Lambert said. “I’ll bet you it has to do with the lease rents because that’s what happened to a lot of the local merchants that are at other places around this area. I’m real unhappy with the direction that Kailua is changing into. It’s becoming more tourist-oriented and less oriented towards us local people. I don’t think that it looks like anybody cares about those people who live here.”
Macy’s has 15 stores in Hawaii: eight on Oahu, three on Hawaii island, three on Maui and one on Kauai.


http://www.staradvertiser.com/businesspremium/20150814_macys_to_close_kailua_outlet.html?id=321851402

Thursday, August 13, 2015

PacificBusinessNews-article

August 13, 2015

Macy's closing its department store in Kailua in Windward Oahu

By Duane Shimogawa

Macy’s is closing its department store in Downtown Kailua in Windward Oahu, one of the largest ground lease tenants acquired by Alexander & Baldwin nearly two years ago, multiple sources confirmed to PBN Thursday.
The retail giant elected not to renew the ground lease, and will the close the 61,577-square-foot store in early 2016, a store manager told PBN. The building at 573 Kailua Road, which is owned by Macy’s, was built in 1954 as a Liberty House store, according to property tax records.
The store sits on nearly an acre of land, which is ground-leased from Honolulu-based Alexander & Baldwin Inc. (NYSE: ALEX) subsidiary A&B Properties Inc.
A&B purchased the leasehold interest for about $33.8 million in 2013 as part of a bigger $375 million purchase of the commercial town core of Kailua and other Hawaii properties from Kaneohe Ranch and the Harold K.L. Castle Foundation.
Macy’s store employees in Kailua were informed of the store’s impending closure Thursday morning.
Cincinnati-based Macy's Inc. (NYSE: M) has about a dozen stores in Hawaii and most recently closed its Downtown Honolulu location, which was replaced by a Walmart store.
PBN has reached out to Jon Moyer, director of asset management in Kailua for A&B Properties and Macy’s for comment.

http://www.bizjournals.com/pacific/news/2015/08/13/macys-closing-its-department-store-in-kailua-in.html

Wednesday, August 5, 2015

StarAdveriser-article

August 5, 2015

Central Pacific to relocate Kailua branch

By Star-Advertiser staff

Central Pacific Bank, which for more than a year has been seeking to find a new site for its Kailua branch, has decided to proceed with plans to move to the former location of Arby’s restaurant at 6 Hoolai St.
The state’s fourth-largest bank, which has 36 branches statewide, plans to demolish the existing two-story building that previously housed the restaurant. The site would offer better parking and accessibility than its current Kailua branch at 419 Kuulei Road.

Thursday, June 18, 2015

HawaiiNewsNow-article

June 18, 2015

Progress being made on gravity sewer tunnel between Kailua and Kaneohe

By Ramsay Wharton
KANEOHE, OAHU (HawaiiNewsNow) - City officials say after a month and a half of drilling, the Tunnel Boring Machine or TBM, is functioning well and on its 3-mile journey to create the underground space needed for the city to install Hawaii's first and largest gravity sewer line to run between the Kaneohe Waste Water Pre-Treatment Facility and the Kailua Regional Waste Water Treatment Plant. 
The city's Director of Environmental Services Lori Kahikina says the TBM, also named Pohakulani, is about 1,000 feet from its original starting point at the Kailua RWWTP on April 30th. The large machine is actually digging backwards on the tunnel and upwards towards the Kaneohe side that will begin at about a 35-foot depth. 
"They seem to be on target on schedule," Kahikina said. "Their rate is about 40 to 50 feet per day."
The Kaneohe-Kailua Tunnel Sewer Project is the city's second largest construction project behind rail.
It is tunneling at the Kailua RWWTP at a depth of about 65 feet below sea level and moving underground at the Aikahi Gardens residential area now, working to tunnel towards the Kaneohe WWPTF, where the incline of the gravity sewer pipe will eventually begin. 
During a 12-hour shift, the tunneling generates about 1,175 tons of rock material, said officials with Southland Contracting, who's in charge of the project. Right now that dirt is being recycled into a variety of different projects for fill, including in roadwork in residential projects in the Kaneohe and Hauula areas and in the development of a new shopping center in Kapolei, Ka Makana Alii. Various companies are interested in using the materials.
So far, officials say there's been no vibration felt by residents related to the mining. As a precaution, seismographic equipment has been monitoring the area.
"So far there hasn't been any vibration of any significant amount," said Gary Weller, a member of the Kailua Neighborhood Board. "They've been monitoring it from day one and I'm very happy."
The 10-foot wide sewer line that will placed in the tunnel will use gravity, instead of electricity, to move waste water downhill from Kaneohe to the plant in Kailua. Officials say it will help prevent sewage spills and eliminate above-ground containment systems.
The project, including station upgrades, is slated to be finished in 2018.

http://www.hawaiinewsnow.com/story/29353357/progress-being-made-on-gravity-sewer-tunnel-between-kailua-and-kaneohe

StarAdvertiser-article

June 18, 2015

Residents’ frustration with Maunawili Falls hikers has grown

By Leila Fujimori

Maunawili residents are bracing for another busy summer, anticipating an onslaught of visitors by the busload along with local hikers passing through the otherwise quiet neighborhood to get to the Maunawili Falls Trail.
Frustrations have mounted since the state removed its signs a year ago and relinquished oversight of the popular hiking trail — leaving residents to deal with people wandering around looking for the trailhead.
With no government signs, one resident put up hand-painted replacements, said Maunawili Estates Community Association member Chris Nakamatsu.
The state Department of Land and Natural Resources informed the community of its bowing-out in July, Nakamatsu said, adding that the gist of the notification was: “It is not our trail.” Puzzled by DLNR’s move, Nakamatsu said, “After 18 years, it is not your trail?”
The 11⁄2-mile hike starts near homes in the Maunawili Estates subdivision and runs through private land to the waterfall, which is situated on state land.
The community sees 1,000 to 2,000 hikers weekly. Yet there is no steward, no security, no parking, no bathrooms and no trash pickup.
In October, DLNR informed the community that the private land belongs to HRT Realty, a subsidiary of the Harry and Jeannette Weinberg Trust. A 1986 conditional use permit with the city allows the public to use the trail and protects public access to Maunawili Falls.
DLNR Division of Forestry and Wildlife Oahu Branch Manager David Smith said the state agency “decided to take the signs down because we have no agreement” with landowner HRT. Plus, Smith said, “We didn’t want the perception that the state controls the land.”
Even so, Smith said, DLNR is continuing to do some maintenance work on the trail.
The trail’s popularity comes with problems created by hikers who leave trash in the neighborhood and on the path, use residents’ bathrooms and garden hoses with or without permission, and park in front of driveways.
Smith and residents agree that social media and the Internet have caused the foot traffic on little-known trails to grow “at a rate we’ve never seen before.”
“All of a sudden, trails that were quiet little areas have become very congested and see a lot of use,” he said. Maunawili Falls, like Manoa Falls, “is very popular. … People want to go to a waterfall.” The problems occur when there is an “urban interface with these trails.”
Residents deal with problems related to that “urban interface” on a daily basis. One woman, whose house is on a corner lot, said she was surprised one day to find several tourists lined up in her yard to use her outdoor bathroom.
The trail itself, which is often muddy, has widened and is deteriorating due to overuse, residents say.
Last summer, the Hawaii Tourism Authority monitored usage for one weekend, counting 714 hikers in two days (417 on July 5 and 297 on July 6).
In addition, hikers occasionally get stranded in darkness. Nakamatsu said in August 2014 alone the city reported that the Honolulu Fire Department conducted 13 rescues on the trail.
The hiking trail was part of a deal cut with Royal Hawaiian Country Club for a golf course when the land was subdivided by former landowner H.K.L. Castle Trust Estate.
The falls area “has always been landlocked,” Smith said. “There never was an established access. People would sneak through yards, culverts and drainage ditches. That was a big problem for the community, too.”
Maunawili Falls is also accessible by way of a trail that starts at a scenic lookout near a hairpin turn on the Pali Highway, but that path increases the hike to 21⁄2 miles and the lookout is fitted with fewer than a dozen parking spaces.
A 2014 study conducted for DLNR included an analysis of possible solutions to the area’s hiking woes.
According to the report, the “alternative that best resolves community concerns is to construct a remote 85-stall parking lot and comfort station in a historic area known as the Queen’s Retreat.
“Although this is the most expensive alternative considered, it has the best opportunity for a successful fee-based parking lot. With the assistance of local historical interest groups, this area could be further developed as a first-class historic park by showcasing the historic structures and promoting the cultural significance of Queen Liliuokalani’s summer retreat,” the report said.
The estimated cost: $6.36 million. No funding source was identified in the report.
Also, even if area residents support the Queen’s Retreat idea, it would require permission and cooperation from landowner HRT.
HRT Realty’s vice president of real estate investment and community affairs, Corbett Kalama, was unavailable for comment.
Smith said HRT is trying to come up with a master plan that would link trails in Waimanalo, Maunawili, Kawainui Marsh and Olomana, which may resolve some problems tied to access points and parking.
Such a trail system would require cooperation with the state and the landowner.
“There are a bunch of pieces … we need to get the linkages put together,” Smith said.
The state has a bit of leverage it can use with the landowner in the form of House Concurrent Resolution 130, passed during the 2015 legislative session.
The resolution directs DLNR to work with Royal Hawaiian Country Club to develop a plan for the management and maintenance of state-owned Old Government Road, which once connected the Pali with Waimanalo, because portions of the road appear to be within the boundaries of the Royal Hawaiian golf course property.
DLNR has been directed to work with the club to find the ownership status of all portions of the road and whether any access easement over the road was granted to the golf club for any part of the pedestrian trail to the falls.
DLNR is tasked with submitting a report on its findings and recommendations to the Legislature before the 2016 legislative session convenes.
“We want to fix this thing,” Smith said. “We want to provide access. We’re strongly on the side of public access. We want people to go hiking. We’re committed to make that work.”

http://www.staradvertiser.com/newspremium/20150618_Residents_frustration_with_crowds_of_Maunawili_Falls_hikers_has_grown.html?id=308097031

Monday, June 15, 2015

PacificBusnessNews-article

June 15, 2015

Target in Kailua steps out of the box, joins local chamber of commerce

When Target was preparing to open one of the retail giant's newest stores in the Windward Oahu town of Kailua, one thing was clear toDrew Santos: doing so would be unlike any other in Hawaii, or on the Mainland, for that matter.
"Opening our Target store in Kailua was different than opening another Target store," said Santos, the store's team leader. "The community was more involved and aware of what we were doing, and we wanted to make sure that we don't forget about what we did prior to opening, but we continue with what we started."
It's one of the reasons why the Kailua native said he recently decided to have the Kailua Target store become a member of the Kailua Chamber of Commerce — a move that very few Target (NYSE: TGT) stores have taken, if any at all.
"Target has stores across the nation and we operate roughly 1,800 stores nationwide, and joining chambers is not the norm," Santos said. "It definitely was a decision that I made — a lot of thought went into that and I think it's a smart move for us."
Kailua Chamber of Commerce President Cynthia Manley said she hopes Santos' decision "will hopefully set the standard and pave the way for other retailers."
"This gives an opportunity for smaller businesses to talk with them and for them to be able to see and meet with people and talk about things — like what Target'scarrying that smaller businesses carry and what Target's thinking of carrying that other small businesses may have — and I think that will help the community grow well," Manley said.
Going forward, Santos said he would like Target to play a role in the discussions of Kailua's future.
"We realized that the community was so connected here in Kailua, and we wanted to make sure that we perpetuated what we started years ago," Santos said. "Joining the chamber, I think, is a clear indication of small and big businesses coming together to see what's possible for Kailua — what's fueling growth for Kailua businesses."

http://www.bizjournals.com/pacific/blog/2015/06/target-in-kailua-steps-out-of-the-box-joins-local.html

PacificBusinessNews-article

June 12, 2015

PBN panel talks business on Windward Oahu: Slideshow

The panelists and crowd at PBN’s Windward Oahu Means Business event Friday in Kailua agreed that while a hotel and high-rise condominiums are unwanted in Kailua, the community needs to manage its growing popularity with visitors.
The sold-out crowd packed the main dining room at at Mid Pacific Country Club to hear the panel of experts discuss the issues facing business in Kailua and Kaneohe. Click on the photos for a slideshow.
Jon Moyerdirect of asset management at A&B Properties — a subsidiary of Alexander & Baldwin, which bought much of Kailua town from Kaneohe Ranch in 2013 — said the company is trying to preserve the character of Kailua, and thinks high-rises don’t fit in that picture. In regards to business, Moyer is hearing interest from businesses in other parts of Oahu and the Neighbor Islands that want to open a location in Kailua town.
On the topic of a hotel on the Windward side, the panelists and the crowd said it wouldn’t be a good idea.
Cynthia Manley, president of the Kailua Chamber of Commerce and director of public relations at Le Jardin Academy, said there’s no guarantee that a hotel would alleviate the problem.
Lindsey Dymond, owner of Kalapawai Market and Cafe, acknowledged that people want to come and stay here, so it will be up to community to figure it out.
“If we let it happen, it will manage us,” he said. “If we take a proactive stance, we can manage it.”
John Morgan, president of Kualoa Ranch, said everyone in the room knows tourism is the economic driver of Hawaii but said traffic is a problem. He said nearly half of the visitors that come to Oahu drive around the island, and of those, two-thirds go clockwise. He discussed creating a scenic corridor going the other way, which would have benefits for Windward Oahu businesses from Makapuu to the North Shore.
On the topic of doing business in Kailua, Drew Santos, store team leader atTarget’s Kailua store noted the store has created 300 jobs for people in the community who no longer have to commute into Honolulu.
Alex Harris, senior program officer for education at the Harold K.L. Castle Foundation, spoke about some of the ways that has been working with local schools to increase graduation rates.
http://www.bizjournals.com/pacific/news/2015/06/12/pbn-panel-talks-business-on-windward-oahu.html