Kauai Home Sales

Welcome to my Monday Morning Coffee posting which includes Kauai news highlights and a complete list of our new listings and closed transactions this past week.

*****Kauai Real Estate; New Listings and Closed Transactions*****
For an excel spread sheet on Kauais new listings and closed transactions CLICK HERE If you have any questions please contact me!

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*****Crash Landing At Polihale Beach*****

On a routine Kalalau Beach trash hauling mission on Wednesday morning an Inter-Island helicopter went down and fortunately the pilot was able to walk away from the wreckage.

Inter-Island Helicopters helps the state out with trash removal as funding becomes available. On this particular day the rubbish that was removed from the valley filled two dump trucks and everything that could be found at WalMart was in that valley having been left behind by people who don’t want to “pack it in, pack it out”.

Eyewitness’s to the crash were two visitors who were on Polihale beach at the time said they saw the nose of the chopper pitch forward and then the tale jerked backward in an attempt to correct itself. The visiting couple said the chopper was flying fast and sounded maxed out as it was carrying a load of trash some 30 feet off the ground when it lost control. The pilot spoke with newspapers on Saturday and said that he was 100 feet from the ground and controlled the landing and knew exactly where he was going to put the helicopter down. The pilot spoke with the press on Saturday and said: “I knew where everyone was and where I wanted to go. I put the aircraft down in a controlled area that was the safest spot to land.” The Federal Aviation Administration has launched an investigation.

*****Vog, Vog and more Vog*****

The trade winds have been non-existent and the vog conditions have been prevalent. What looks to be fog across the island has obliterated mountain and ocean views and this is a very minor condition to us here on Kauai. The Big Island is suffering mightily. To read in more detail about vog vist my April 14 posting: http://blogs.alohaliving.com/kauai-home-sales/2008/04/14/kauai-real-estate-and-local-news-4/

The National Weather Service has announced that Sunday will be the first marketable day that the vog conditions, which have made Oahu look like Los Angeles, will lift. Given that Kauai is the furthest island away from Hawaii we have not had anywhere near the conditions that the other island have had. As of yesterday our trade winds are back and conditions are returning to normal.

*****Hawaiian Airlines To Codeshare With United Airlines*****

With the demise of Aloha and ATA airlines Hawaiian Airlines had an increase in flight bookings by 25.5% this last month. Year to date Hawaiian Airlines is up 9.1%. This week Hawaiian Airlines announced a codeshare agreement with United Airlines who is a historical heavy hitter with mainland to Hawaii flights. Partnering up with United will strengthen Hawaiian Airlines franchise as being a dominant choice for mainland to Hawaii travel. United announced it will offer codeshare flights this summer.

*****Dog Walkers Battle with City Council*****

Tensions were high on Wednesday when 20 residents showed up for a rally in support of a bill that would allow dogs on the proposed 16 mile path from Nawiliwili to Anahola which will include the current 2.3 Kapa’a to Kealia beach path and the 2.5 route at Lydgate Park. Currently dogs are not allowed on the path which is managed by the county Parks and Recreation Department. Liability is cited as the main issue and some elderly residents and parents with small children have expressed fear of using the path if dogs are on it. A phone survey was taken of 350 Kauai residents and 71% of the respondents supported dogs being allowed on the path. 63% of these respondents had pets of which half of those were dog owners themselves. As a side note it was discovered during this survey that pet ownership is up 6% from 2001. Of the 20 residents that were at the County building on Wednesday to rally for the proposed change, Becky Rhoades, Director of the Kauai Humane Society, was among them. The bill was to be discussed that day but due to an over packed agenda it has been put off to June 12 at 1:30 pm.

Welcome to my Monday Morning edition of Kauai local news and real estate updates! I hope you all had a nice Mothers Day. It was busy over here with mothers being celebrated with beautiful flower leis and eating out at their favorite restaurants. Our weather has been breezy and very sunny with the temperature kept at a very comfortable level and this weekend was no exception.

*****Kauai Real Estate Update*****

You will notice a number of properties listed in the new listings section for the Poipu area. This is a developers project that is just being released on the MLS. For more information on this project give me a call or email. For the latest in Kauai Real Estate CLICK HERE

*****Monk Seal Pup Airlifted To Oahu*****
On a remote beach on the North Shore of Oahu and baby monk seal was found having been abandoned by his mother. The NOAA team (National Oceanic and Atmospheric Administration) tried to reintroduce the pup to its mother but she exhibited aggressive behavior towards the pup and seemed more interested in the male monk seal that was nearby. The NOAA has never nursed a pup this small but remain optimistic t that it can be saved and released to the Midway Atoll. The Hawaiian Monk Seals are on the endangered list, many are dying of starvation because they can’t find enough to eat or are killed by sharks. As of Friday the seal pup is showing continued signs of improvement and caretakers of the seal remain “guardedly optimistic”

*****3 Kauai Police Officers Convicted*****
Three Kauai police officers were convicted on Monday for second degree theft and tampering with government records. All three officers have received probation and are ordered to pay restitution and fines. In 2005 the three officers did not attend a Maui marijuana eradication meeting. Instead they used the time on Maui as a vacation and spent $300 dollars of state and county money. The officers altered attendance records form the event. The sentencing was tough to do Judge Watanabe said because all officers had exceptional records before this. The decision, Watanabe said, was more about the subsequent actions when they returned by exhibiting “continuous deception”.

*****Did You Lose Your Iguana? *****
A three foot iguana was captured at Makaha Elementary School on Oahu. The school was on lockdown while police captured the iguana with fishing net. It remains a mystery where this iguana comes from; they are illegal here in the state of Hawaii because they feed on bird eggs.

*****Superferry Return Dependent on Kauai Leaders*****
The new CEO of the troubled superferry retired Navy Adm. Thomas Fargo said it is up the Kauai leaders to invite the superferry to come back. Senator Gary Hooser said he can’t direct the superferry to return because legally it still can. But he says that the public sentiment is still negative and that he is not inclined to put this to the Kauai Council. So what does Kauai think? It all depends on what poll you read! Given the current shake up in Aloha Airlines Cargo division there has been some positive thought towards having an alternate transportation mode. Senator Hooser said he’d like to see the reliability proved on Maui before the question is posed to invite the company back to Kauai.

Kauai Real Estate News for the past week!

It has been so busy here with our annual Kiahuna Plantation owner meetings and Poipu Kai owners meetings I have not had time to do my local news report. It’s been one meeting after another and LOTS of fun social events!! What I do have for you is a Kauai Real Estate update!

You will see that there are a huge amount of listings in Princeville, this is a developer that has put his remaining inventory on the MLS and is offering incentives. If you are interested in fee simple condo ownership on the north shore then contact me for more information!

I have included an excel spreadsheet for all the new listings and closings for last week. Call if you have any questions. For this spread sheet CLICK HERE

Poipu Beach was beautiful at 8 a.m. yesterday morning as you can see by this photo. The water was so warm you didn’t even need a wet suit. We are having some really wonderful weather island wide in between the vog that continues to drift over from the Big Island. This Monday Morning I have another posting for you with some interesting island news including:
Go! Airlines Pilots Sacked
Hawaiian Airlines Adds a New Flight
Aloha Airlines Cargo Division Sold
and more but first we’ll cover Real Estate here on Kauai.

*****Kauai Real Estate News*****
Year to date the number of sales are down but the median sales price on Kauai is up. Here are the numbers island wide:

Housing +3.46%
Vacant Land +47.07%
Condominium +18.01%

Our sales continue to hold the same line as they have been the last couple of months. For a complete list of what has been listed and what has sold this last week CLICK HERE

*****Go! Pilots Sacked*****
The two Go! Airlines pilots that overshot the Hilo airport by 15 miles have been fired. Mesa Air Group has not released the pilot’s names and the Air Lines Pilots Association says it has filed a grievance for the two pilots. Investigations have focused on the possibility of the pilots falling asleep. The plane, which was carrying 40 passengers, had to circle back and landed safely at the Hilo airport on February 13, 2008.

*****Did You Lose Your Sailboat? *****

An unmanned 30 foot sailboat drifted into Hanalei Bay and remained stuck for several hours. Good Samaritans worked together and freed the boat by 7 pm. The “Felicia” escaped fuel leaks and had minimal damage to it.

*****Uncle Sam and the State of Hawaii*****
In the state of Hawaii Uncle Sam is a true benefactor. On a federal level the government collects and average of $5,500 per person at tax time but spends an average of $10,500 for every resident. Hawaii ranks #2 per capita for national spending on the federal payroll. Where do the dollars go to? By far a good share of it is for military spending with 3.7 billion going towards salaries for military, federal and civilian workers.

*****Hawaiian Airlines to Add Oakland Flight*****
Hawaiian Airlines is adding a Oakland to Honolulu flight this Thursday. This new route will have a kick off celebration in Oakland with live music and hula dancing along with a Hawaiian blessing ceremony.

*****Lawmakers Endorse Turtle Bay Plans*****
State lawmakers have agreed on a bill to allow the purchase of the Turtle Bay Hilton on the North Shore of Oahu. The preliminary plan is to sell the resort itself and keep the multitude of acreage as State land and keep undeveloped. The State is also going ahead with plans to buy 2,100 acres owned by the Galbraith Estate in Central Oahu. These lands would also be left undeveloped.

*****Aloha Air Cargo Winner Is…..*****
Los Angeles Pacific Air Cargo LLC was approved by the US Bankruptcy courts to be the winning bidder for Aloha Air Cargo division. Aloha Airlines filed bankruptcy and shut down service on March 31 leaving its passengers to a mad scramble for tickets to and from Hawaii. The air cargo division is profitable and it services 85% of the states air cargo including all the mail to and from Maui and the Big Island. Pacific Air Cargo already provides similar ground services in Honolulu for Qantus Airlines for their Honlulu and Los Angeles route. Seattle based Saltchuk Resources pulled out after their 13 million offer was outbid at 13.65 million.

Meanwhile Aloha Airlines former pilots union ALPA (Air Line Pilots Association) is seeking the courts assistance to make the sale contingent on the new owner abiding by the terms of the pilots contract that they had with Aloha. Pilots that flew the passenger planes are getting retrained for the cargo division and they would like their pilots to be hired on a seniority basis

Aloha from Kauai! Last weeks news events were wide ranging as you will find. A cocker spaniel rescue from Fanning Island, Superferry breaking news, tragedy at Kalapkai beach and more. We’ll start with the real estate news:

Closed transactions have been keeping steady these past months and this week it went up by 1/4 as evidenced by the excel spreadsheet that I have attached. We are getting back to normal with most of the “spring breakers” back in school and the island remains busy with couples traveling. We will see it stay this way until mid June. For a full excel spreadsheet on last weeks activity CLICK HERE

*****Snickers the Cocker Spaniel Rescued At Sea*****

Now here’s a story that just makes you feel good. Snickers story began when his owners catamaran developed mast problems and drifted 200 yards to Fanning Island where it hit a reef and the couple swam 200 yards to shore carrying their 5 month old Cocker Spaniel, Snickers, and their Macaw Gulliver. A cargo ship rescued the pair but they were forced to leave the pup and bird behind since it was not allowed to carry animals on board. The couple returned to their home and moved on with their lives and left the memory of Snickers and Gulliver behind. A Las Vegas pet lover, Jack Joslin, read the story and financed a rescue mission that involved the Hawaii Humane Society, Hawaiian Airlines and NCL cruise lines. But the mission proved to not be as costly as he thought it would be as Hawaiian Airlines will fly Snickers to Vegas for free and the Hawaii Humane Society donated it’s animal carriers and services. Snickers has been in Honolulu quarantine and is set to fly to his new Las Vegas owner this next week. Paperwork problems prevented Gulliver from making the trip but bird lovers have gotten involved in a elaborate plan to move Gulliver to Christmas island where he can be transported back to the states. “Snickers is going to live with me for a long time,” Joslin said “and we’re trying like hell to get the bird back here.” Fanning island is one of 33 coral atolls that make up the remote island of nation of Kiribati.

*****State Had CAVED into Superferry Demands Auditors Find*****
Last we left the superferry the courts had ordered the State to audit itself on how the Superferry was allowed to bypass the Independent Environmental Study before setting sail. Operations of the Superferry have been suspended here in Kauai after an all out protest in Nawiliwili Harbor last year. State auditor Marion Higa released the first part of her study on Thursday which revealed that the Superferry CEO John Garibaldi gave the state a June 30, 2005 deadline to waive the Environmental Study or he was not going to do business in the State of Hawaii. Garibaldi states that he had to give the State the deadline as he needed the waiver to get the loan for building the new mode of transportation. But contrarily Marion Higa finds out from the Maritine Association that the loan was good until January of 2006 and that it was the Superferry that forced the hand of the State by setting a six month earlier deadline. The auditor continues to gather information for a second report to be released later.

*****Hawaii The Most Expensive State For Renters*****
The National Low Income Housing Coalition named Hawaii the highest in the nation for rentals with an average of $1,509 a month for a two bedroom apartment. What island had the most expensive rent? Oahu came in number 1 and Hawaii had the lowest rent at $1000 for a 2 bedroom apartment. Rent has gone in up 70% in Hawaii since the year 2000. Hawaii was followed by California, New York, Massachusetts and New Jersey for the highest rents in the USA.

*****Vacation Rentals on Ag Land Being Questioned*****
The Kauai Council is requesting a legal opinion on vacation rentals on ag land. Currently vacation rentals are not allowed on land that is zoned agricultural but it these types of vacation rentals are known to exist. An example was cited by County Councilwoman JoAnn Yukimura: a 10,000 square foot vacation mansion with a few fruit trees and a couple of horses could mask the vacation rental that it is. It is feared that this type of misuse of ag land would drive up prices on agricultural land and making it not affordable to farmers. This issue was hammered out during a meeting on April 4th and it was determined that legal investigation is needed.

*****Man Drowns Off Kalapaki Beach and Rescue of Swimmer at Kiahuna Beach*****
A 30 year old United Airlines flight attendent was pulled from Kalapaki Beach on Saturday. His coworkers had lost sight of him swimming in the water and went searching for him and after having no luck they alerted the Marriott emlployees. They got to the beach right away to find that tourists had pulled the cyanotic man out of the water. He was taken to Wilcox and was pronounced dead.
On the same day, around 2 pm, rescuers responded to a boogie boarder who had lost his board some 70 yards off shore in front of the Kiahuna Plantation. South Shore waves were rolling in at 8 to 10 feet. People on the beach had seen his distress signal and alerted Kiahuna security who called 911. Medics checked him out and he was released on site.

Aloha From Kauai! It’s been getting warmer but still a little chilly at night. We’ve also had “vog” visiting us from the Big Island, read more about this in my posting today. For real estate news I’ll be posting a special piece about a tax law that was passed concerning leasehold land and a little history on this type of land ownership. If you have any questions your welcome to contact me.

*****Real Estate News*****
The spotlight is on leasehold land. Leasehold land is very common here in the State of Hawaii and was born out of the need for affordable land in the 1960’s. Lease’s are now at a point in Oahu where they will be coming due and the State has passed a bill in June of 2007. Act 166, tax exemption incentive for fee owners to sell. It is a “carrot” incentive in an effort to avoid a possible “stick” of a statewide mandatory conversion law for condos and co-ops.
Act 166 was signed into law by the Governor and it provides capital gains tax exclusion to leased-fee owners who sell their interest to the Association of Apartment Owners. This creates a win-win situation for everyone since lessees would get fee simple home ownership, fee owners can profit in reinvestment and the state can free up millions of dollars to be put into the economy, hopefully generating use tax dollars that would not be generated otherwise. This tax free exclusion will expire on December 31 2012. So at a State level there would be no tax but there would be tax on the Federal level. To answer that H.R. 2613 was recently introduced by Representatives Abercrombie and Hirono to provide a similar capital gains tax exclusion from federal income taxes. Given that this bill represents and affects a very minor issue from a national perspective and is unique to Hawaii, there is no guarantee that Congress will consider it this year let alone take action on it. To see a copy of this bill click this link…..Leasehold Land Act

*****Real Estate Sales and New Listings*****
Our number of sales have held up to the same levels that they have been at for the last several weeks. We expect our activity to get a little stronger with the majority of spring breaks behind us. For a complete list of what has come on the market and what has sold CLICK HERE

*****Hawaii Tourism Authority Helping With Stranded Passengers*****

The Hawaii Tourism Authority is adding charter flights daily to help out passengers who were scheduled to fly home on Aloha or ATA airlines. Given the new flights that had been added by Delta, Alaska Airlines and United we don’t expect to be running short on seats after the readjustments.

*****Aloha Airlines Sells Off Cargo Division*****

Aloha Airlines was running in the black with their cargo business and it still is in operations. A Seattle based company, Saltchuk Resources, Inc. Saltchuk was given the green light by the Honolulu Bankruptcy Court to purchase the company. Given this is not a normal sale there is some protocol to follow. Here is what Saltchuk Resources is outlining to happen:

“Due to the fact that the bankruptcy court will not announce a winner of the auction until April24th, and closing is required to occur the following day on the25th, we are thus required working on a transition plan that will ensure continuity of all Aloha air cargo operations.

There are many issues that we are working on, complicated by the fact that we are acquiring assets as opposed to purchasing the stock of an ongoing business. The most important is our need to hire employees at our new Hawaiian corporation to allow operations to continue without interruption. “

Union officials for the airline are in heavy negotiations for the Aloha Airlines pilots to be re-hired.

*****Vog Visits Us From The Big Island*****
Kauai’s eastside has been hit with Vog from the Big island. Vog is elevated sulfur dioxide levels from active volcano’s and creates a haze over all the islands. Kilauea volcano has been erupting since January 3, 1983 but recent activity forced the closure of Volcano’s National Park on Hawaii. 2,000 people were evacuated from the park and one school was closed. On Wednesday night the noxious gas forced an explosion which sent rocks 230 feet in the air. On Thursday the winds had shifted enough to allow the park to be re-opened which includes the 42 room Volcano House hotel and Kilauea Military Camp.

Aloha from breezy (but warm) Kauai and I hope you all had a great weekend. I have a lot of local news and a real estate update for you.

*****Kauai Real Estate*****

5 Kukui’ula lots here in Poipu sold this week and a new subdivision came on the market in Kapaa. The new subdivision is called Aina Wai Agricultural Subdivision. This project is designed specifically for farming uses and has great mountain and ocean views. These lot sizes start at 1 + acres and should qualify for one house plus a guest house. The offerings on these lots are for non-binding reservations only as the subdivision has Tentative Subdivision Approval at this time. Call me for more details. For a complete list of what has been listed and what has sold this last week CLICK HERE

*****ATA shutdown*****

Another surprise move was the shutdown of ATA Airlines on April 2. In a press release on their website they state: “After filing for Chapter 11 on April 2, 2008 in the U.S. Bankruptcy
Court in Indianapolis, IN, ATA Airlines has discontinued all operations and cancelled all current and future flights. Following the loss of a key contract for our military charter business, it became impossible for ATA to continue operations. Unfortunately, we were not in a position to provide our customers or others with advance notice.” ATA abruptly went out of business on Friday leaving hundreds of travelers stranded. ATA had filed for bankruptcy in 2006 and came out of it after partnering with Southwest Airlines. Officials say that the most affected travel routes for the state of Hawaii that the Aloha and ATA leaves us is the Hawaii to Las Vegas routes of which these two airlines had 40% of the market.

The shutdown triggered the Hawaiian Tourism Authority to release 5 million in travel funds to help stranded passengers. Hawaiian, United, Delta, Continental, Northwest, Alaska and US Airways are all working with Aloha and ATA passengers to get them back home. United, Go! and Hawaiian Air are adding new flights to fill the void. Hotels here are working with people who need an extra night stay and are keeping them up to date on the airline changes.

What has the mood been here on Kauai? You wouldn’t know anything happened besides an occasional reference. Everyone is pretty calm about it and to quote a gentleman that spoke to our newspaper “If I have to be stranded I’d rather be stranded in paradise”

*****Aloha Airlines Fallout Continues*****
Aloha Airlines has been in the news daily. The biggest headlines have
been the stranded Merrie Monarch Halau’s and the adding of flights by
Hawaiian and Go! Airlines. The Merrie Monarch Festival which
is dedicated to the memory of King David Kalakaua, known as the Merrie
Monarch. King Kalakaua came to the throne of the Hawaiian Kingdom in
1874 and reigned until his death in 1891. He was a patron of the arts,
especially music and dance. This year the festival is being held in Hilo and
with the 24 hour notice that Aloha Airlines gave the dancers and
festival goers were stranded and scrambling for tickets.
Hawaiian Airlines is credited to stepping up to bat and helping out
the festival participants and the halaus which had members coming from as far away as Japan.

Hawaiian Airlines and Go! put out an ad to fill 54 positions to meet
the demands of new flights being added. “This is only the first step,
in what we hope will be many more announcements regarding employment
opportunities at Hawaiian Airlines” said mark Dunkerley Hawaiian
Airlines president and CEO.
Officials say loss of Aloha airlines will not affect tourism because
Aloha only accounted for 4.5 percent of the nearly 7.6 million
passenger seats from the Mainland to Hawaii. Rex Johnson, from the
Hawaii Tourism Authority, said Aloha’s competitors should have no
problem filling the void.

*****Superferry Gearing Up Early*****
Seeing a void in interisland travel and freight service the Superferry is back in service 2 weeks early. Their Maui to Oahu run will start today. Controversy still surrounds the new mode of transportation as the Environmental Impact Study is still underway.

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The Poipu Beach round about is officially open! The round about will help to diffuse traffic and is much more attractive then a stoplight. This makes the second round about for the island of Kauai, the first is on the Kapaa bypass road. Aloha Everyone and I hope you all had a great weekend. In addition to Kauai’s latest real estate activity I have a lot of local news for you so we’ll get right to it….

*****Kauai Real Estate News for March 24 to 31*****

Spring Break has brought a lot of activity to our island and with that goes lots of real estate inquiries. We expect to see another week of this kind of activity. On the South Shore the shops at Kukui’ula and the Poipu Beach Estates lots are showing a huge amount of progress. Koloa Landing is still laying it’s ground work but still does not have building permits. Contact me for more information on buying or selling here on Kauai. For now here is an excel spreadsheet on what has come on the market this last week and what has sold CLICK HERE

*****Aloha Airlines Stops Service March 31, 2008*****
Aloha Airlines announced on Sunday that its last day of operations will be Monday, March 31 2008. On that day, Aloha will operate its schedule with the exception of flights from Hawaii to the West Coast and flights from Orange County to Reno and Sacramento, and Oakland to Las Vegas. United Airlines and other airlines are prepared to assist and accommodate Aloha
Airlines passengers who are left with tickets. Effective immediately, Aloha will stop selling tickets for travel beyond March 31, 2008.

Aloha Airlines shutdown will affect some 1,900 employees statewide. Aloha also announced that its air cargo and aviation services units will continue to operate as usual while the U.S. Bankruptcy Court seeks bids from potential buyers. On March 27 2008, Saltchuk Resources Inc. a Seattle based company announced its intention to buy Aloha’s air cargo business. Earlier this week the State announced it was looking at ways to help the Hawaii based company which was founded in 1946. Waiving landing fees and GE tax on their fuel were some of the ideas. But David a. Banmiller, Aloha’s president and chief executive officer said “We just ran out of time” and Aloha Airlines could not find a qualified buyer and had no choice but to take this severe action. The airline has expressed deep regret to the people of Hawaii and its employees. Careful to not mention any companies Aloha Airlines stated that unfair and preditory competion drove them out of business.

*****Visitor Arrivals Up For February*****
Visitors arrivals were up Statewide by 5.9% from last year and visitor spending on Kauai alone increased by 6.3%. The largest increase were visitors from Canada up 31.5%, February marked the 7th consecutive month for Canadian arrivals on the rise. Stateside the West Coast sent us 1.9% more visitors, East Coast sent 3.2% more but Japanese arrivals were down 3.2%. Given that this is leap year the extra day in February added to this number.

*****City Council Supports 10 Moratorium On Genetically Grown Taro*****
A bill that was proposed to genetically develop Taro in order to find and promote a stronger strain of the crop had effectively split the Taro community and City Council in half. The bill to put a ten year moratorium on genetically grown Taro passed by a mere 4-3 vote last Friday. Taro farmers on Kauai grow 75% of the states Taro and it’s considered to be a sacred crop by the Taro Farmers, the belief is the food came from the Hawaiian Gods themselves. Genetically tampering with the Hawaiian ancient food source spurred the community to attend City Council meetings and speak out their feelings.

*****Not a Good Time To Be a Rooster on Oahu*****
The city of Honolulu is paying a local company $60,000 to round up feral roosters that have been keeping residents up at night. Complaints largely have been about the wild roosters crowing at all hours but some about owners of pet roosters. Councilman Charles Djou has tried to ban roosters as pets in residential areas several times.

Aloha! Kiahuna Plantation was the place for Easter Celebrations on Sunday. The day started out with a service on the Great Lawn overlooking the ocean. Then about a hundred guests and residents gathered for an Easter Egg Hunt and I even got to lead the 7 and 8 year olds out to their egg hunting area! The Easter Bunny was even there for photographs. It was great fun and a very beautiful morning.

*****Kauai Real Estate News*****
Fractionals have been established in parts of the mainland but have been coming to Kauai only this last year, some with success and some not. A Prince Kuhio Penthouse unit was fractionalized and a second sale recently closed. If you would like more information on fractionals give me a call for a brief run down. Here is the new listings and closed transactions for this past week. Again our closed transactions are staying at that upwards bump we got a couple of months ago. For an excel spreadsheet CLICK HERE

*****Hawaiian Land Deal Voted Down*****
A complete turnabout was done by the Hawaiian legislature in a deal to give $200 million dollars to pay the Office Of Hawaiian Affairs (OHA) for land ceded to the U.S. government in the late 1800’s. The dispute between the government and OHA has been in negations for 30 years. When this bill was drafted it sailed through the House with only 2 “no” votes. Hawaiian groups became concerned that it was not in their best interest even after 42 public meetings were held by OHA that this deal was in their best interest. The groups felt this deal was “chump change” and if accepted would forfeit their rights over any future claims and the fact that officials could not explain how they came up with the $200 million dollar figure was a huge concern to them. State officials have sounded off over the rejected deal. Governor Linda Lingle said “We thought that the settlement was fair and reasonable, and we’re disappointed, very
disappointed, that it was rejected.” OHA and the legislature still have six weeks to try for another negotiation of the bill.

*****Aloha Airlines Files For Chapter 11 Bankruptcy*****
Citing predatory pricing by Go! Airlines and rising fuel costs Aloha
Airlines filed for bankruptcy for the second time in three years. In 2005 the two airlines had filed bankruptcy and they both claim that Go! Airlines used confidential information during that time frame to get into the Hawaii marketplace which they did with aggressive rock bottom interisland fares in 2006. Hawaiian Airlines had won it’s lawsuit against Go! Airlines to the
tune of 80 million dollars, Aloha Airlines case is still pending. Aloha Airlines made a follow up announcement on Friday that they are in negotiations to sell all or part of it’s operations. Aloha Airlines parent company is General Motors Acceptance Corporation. In a related news item: Investigations are still pending for two pilots of a Go! Airlines flight that overshot the Hilo airport. The pilots on the short island hop flight and did not respond for 17 minutes to nearly a dozen calls into their cockpit by a stewardess on the flight and another Go! airline pilot. Both
pilots have been grounded during the investigation, malfunction of the aircraft itself has been ruled out.

*****Ritz-Carlton Kapalua Sells $176 Million in 3 Hours*****
S&P Properties, which is the same company that brokered Trump Tower Waikiki, sold out 93 out of 107 condos in 3 hours. I called a representative and got more of the story; I was told that they have been working with their contract holders for the last 6 months and on the day of selection their buyers were contacted in the order that their reservation had been taken. They are now in the 30 day recession period and at the end of that their contracts will go binding and the buyers will commence with their financing to complete the sale. 40% of the buyers were from Japan, Canada and Europe. The price range of the one and two bedroom fee simple condos ranged from $895,000 to $6.4 million. A Japanese buyer purchased the Presidential Suite for $6.4 million. The hotel had recently completed $160 million major remodel.