Kauai Home Sales

*****Runaway Truck Slams Into Sueoka’s Grocery Store In Koloa Town!*****
On Wednesday early morning shoppers had the surprise of their life at Sueoka’s General Store in Old Koloa Town. Just after 7 a.m. a trash truck ran the stop sign and plowed through the three foot lava rock wall and into the mom and pop store which is right by Crazy Shirts and the historic banyan tree in old Koloa Town. The force of the impact moved the front window freezer some four feet and about a dozen people were taken to the hospital however no serious injuries have been reported. My husband and I were driving into Lihue and 7:40 and I took this photograph. The front part of the truck is totally imbedded in the store and I did notice that it had rained. Police are still investigating and at the time of this writing no updates were available.

******The Royal Hawaiian Hotel, Waikiki Beach, Oahu*****
It’s with special affection that I write about the renovation at the Royal Hawaiian Hotel. Living in Kauai it’s obvious that the big city is not for me and when I do need to go to Oahu we stay at the Royal Hawaiian (aka “Pink Palace”) where I feel transported to the 1920’s, the era that it was built. The last time this hotel was shut down was during WWll when the military had occupied the hotel and surrounded it with barbed wire. Before then it was the place to “see and be seen” and Hollywood celebrities, foreign dignitaries and heads of State all would stay at “The Royal”. The hotel will be a little less pink on the inside and the rooms, which now have furniture from the 1980’s and wallpaper that is less then appealing, will be completely updated but will still retain its 1920’s feel. Some shops will be eliminated in the lobby to open it up more and the line to check in will be eliminated. Guest will now sit in the garden area and sip guava juice while waiting to check in, afterwards they will be escorted to their rooms which will have soft Hawaiian music playing. This 110 million dollar renovation is currently being done and construction will last for 7 months. Will the room rate change? You bet. The current rate is $300 and it’s expected to go to $400.
Did you know: The Shirley Temple drink was invented at the Royal Hawaiian while the child star was visiting in the 1930’s? Also true: the hotel also popularized the Mai Tai and Dean Martin was once refused entry to the Monarch Room due to the hotels strict dress code. Dean went back to his room to change and showed back up in a coat and tie and-his briefs.

*****20 Acres of Beachfront Property To Be Preserved*****
The Kauai Public Land Trust received the remaining $700,000 it needed to purchase the 20 acre beachfront parcel in Kilauea that borders Kahili Beach. The LLCP (Legacy Land Conservation Program) is a new program within the state Department of Land and Natural Resources and it was this group that spearheaded the purchase. The Kilauea Coastal Preserve will now begin the process of finalizing the deal. This means that this gorgeous 20 acre pristine coastline will remain undeveloped for generations; open public access to the lands will remain the same. Improvements that are slated for the land are to reintroduce native Hawaiian plants and remove the invasive vegetation. Native birds will also be brought in. Its efforts like this that makes our Garden Island a truly special place.

*****Hawaiian Airlines To Add 4 Aircraft*****

In response to the ATA and Aloha Airlines shutdown Hawaiian Air is adding 4 aircraft to its interisland fleet. Two Boeing 717-200 jets will be added in September and 2 more later in the year. Mark Dunderley, who is Hawaiians CEO, says this purchase reaffirms the airlines commitment to servicing our islands.

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

The Honolulu Board of Realtors reported a 29.4 drop in home sales and a 29.7 drop in condominium sales but the median price from a year ago has stayed the same within a very small margin. The homes sales are within .01% of last year and the condo median sales price is up 3.8%. For an excel spreadsheet on this week’s new listings and closed transactions CLICK HERE FOR SPREADSHEET

Aloha From the Kiahuna Plantation in Poipu Beach! My husband and I have owned a vacation rental condo at the lovely Kiahuna for the last ten years and have not taken the time to stay in it since we moved here four years ago. We checked into our unit on Friday and will be leaving Tuesday. We have not taken time off our jobs and are doing some fun projects to improve our unit in between our work shifts. People have often asked me what it’s like to move here and the fact is there are still responsibilities that we both have and it’s easy to get caught up in the daily grind (yes even here in Kauai!) and miss all the reasons why we moved here. Staying at our beautiful vacation condo brings back memories of the times when we vacationed here and dreamed of the day when we could move here and how sad we used to be that we had to go back to our home in Orange County, CA. Even though we only live right down the street at the Poipu Kai Resort its different staying where none of your “stuff’ is! I took this photo on my barefoot walk to the Kiahuna beach on Sunday morning at 8:30 a.m., enjoy.

*****Kauai Real Esate News*****
Whether you’re looking to buy, sell or are in the information-gathering stage, I would like to be your Kauai Real Estate Connection. Accomplishing a successful real estate experience starts with building a positive working relationship with someone who knows Kauai real estate. I strive to provide the latest and most efficient ways of keeping you abreast of new laws, trends and events that will influence any transaction.

My “Monday Morning Coffee With Lynda” blog page has been a great way for people to stay connected no matter where they are in their buying or selling process. Every Monday morning be informed of Kauai’s latest news events, new real estate listings and closed sales. Even if buying or selling is years away, it’s not too early to start building our relationship. Please contact me for information on how to stay Kauai connected with “Monday Morning Coffee with Lynda”.

Here is an excel spread sheet on last weeks new listings and closed transactions: CLICK HERE

*****New Flights Between China and Honolulu*****
The Hawaii Tourism Authority has been aggressively pursuing the Chinese tourism marketplace for some time and their efforts have paid off. Three flights will start on July 28th of this year and three more in October. These flights will also go on to Las Vegas.

With the loss of two airlines travel to Hawaii has been off by 15.2%. Hawaii is not the only market to show a decline. The US to Japan travel is off 15.3% and the East Coast travelers were down 5%. Canada however is showing a 48.2% increase in vacation travelers.

Good news is Hawaiian Airlines is adding an Oakland flight this month and Alaska and Delta have announced plans to post new flights also. Marsha Wienert from the Hawaii Tourism Authority said that “This increased seat capacity will help offset the loss of Aloha and ATA seats”. Go! Airlines has increased their flights from 58 to 88 per day and they have seen a 50% increase in their number of seats sold. The Superferry is also reporting higher sales for their Maui the Oahu runs.

The HTA has been focusing on the local market and offering incentives to locals to take vacations interisland. This has been very well received and has helped to alleviate the loss from the mainland visitors.

As a side note: Aloha Airlines is going ahead with a lawsuit they had filed against Go! Airlines for trying to drive the now bankrupt airlines out of business by using market data that the airlines provided in a possible purchase situation when the airlines was facing financial trouble in 2006. The rights to the lawsuit will become one more asset to be sold off to pay off Alohas many legal claims.

*****First Hawaiian Bank Robber Nabbed*****

A Hanalei man is in custody after turning himself in to police on Tuesday night. The suspect hitch hiked a ride to the county jail from a local resident who remained nameless. The driver said the man told him that he had heroin and alcohol problem and had robbed a bank and wanted to turn himself in. The driver told him he was dong the right thing and dropped him off at the county jail where the officers treated the suspect in a very respectful manner as they cuffed him and took him into custody. The police had been using the bank surveillance cameras to look for clues for the robber and recently had been questioning bus drivers because it was believed, after seeing a bus in the film taken from the surveillance cameras, that the robber had taken the Kauai Bus to the bank. The suspect has had several robberies in his past record.

*****1.2 million dollars for Na Pali and Koke’e State Parks*****

Governor Linda Lingle released 1.2 million dollars for improvements on the Na Pali trail and Koke’e State Parks. The first two miles of the Napali coast trail are the most heavily used due to the fact that they do not require a permit to hike. One of the reasons this popular trail has not been touched is it’s an archaeologically rich area and studies needed to be done before trail maintenance could be addressed. The wilderness concept will be maintained says Diane Zachary who is the president and CEO of KPAA (Kauai’ Planning and Action Alliance). “We want the trail to look as
natural-looking as possible, but safe”.
The rest of the grant money will go to the CCC Camp in Koke’e State Park in Waimea Canyon. Renovations of camp are expected to be return of all electrical and plumbing services and completion of finish work in Barracks A and B, Mokihana Cabin, Wash House and the storage shed and fireplace. The CCC Camp was added to the National Register of Historical Places in
1996.

*****Kauai In The National Spotlight!*****

Outrigger Waipouli Beach Resort & Spa made Expedia’s top 25 resorts and is the only property in Hawaii to make it into the top 100!!! The resort was ranked #21 by Expedia Insiders for quality and overall value. I have two listings at this wonderful resort and you are welcome to contact me for more information.

Also Hanalei Beach came in second in the annual “Dr. Beach” survey who every year compiles a list of the best beaches. Caladesi Island in Florida beat out Hanalei for the number one position.

And finally Trip Advisor top 10 free attractions named Waimea Canyon as #3 on their list. The Bellagio Fountains in Vegas and Arlington National Cemetery in Virginia beat out Waimea respectively.

*****Good Times If You’re a Humpback Whale!*****

In 1966 there was an estimated 1,500 humpback whales and at that time the international hunting of humpbacks was banned. Now, some 42 years later, the humpback population has grown to 18,000 according to a study done by SPLASH which is an international organization of more than 400 whale watchers. Since humpbacks only give birth to one whale at a time the time it takes to build up the population can take a while, however these new numbers are very encouraging to the Hawaiian Islands Humpback Whale National Martine Sanctuary. The whales that migrate from Hawaii to Alaska are showing the healthiest growth but the isolated group that migrates from Japan and the Philippines to Russia are taking longer to recover. Discussions are up on if they are to remain on the endangered species list.

*****Robber Escapes With Cash at First Hawaiian Bank*****

On Saturday the First Hawaiian Bank at the Kukui Grove Shopping Center was the scene of a bank robbery. This branch is one of the few to offer weekend service. A man wearing a tan shirt, dark shorts and a University Hawaii baseball cap entered the bank and got an undisclosed amount from a teller and left without incident, mall security showed up within 15 minutes of the incident. Police remain on the lookout and anybody with any information on the incident is encouraged to call Kauai Police Department.

*****Mauna Loa Macadamia Nut Company Fined $75,000*****

Citing cesspool violations the US Environmental Protection Agency placed a hefty fine against the Mauna Loa Company. Three large cesspools at the plant were not shut down until 2007 which was 2 years after the 2005 deadline; the company had been warned in the summer of 2004 of the 2005 deadline to comply with the EPA’s regulations. The facility now is connected to the state approved sewer system and there has been no evidence of any raw sewage leakage but the Hersey Company, which is the parent company to Mauna Loa, has accepted the fine without any complaint.

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

What got listed last week and what was sold? For a complete list CLICK HERE . Would you like an update on when this list is posted? If so then you are welcome to join my Blog Update List by signing up on this form

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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.