Friday, February 20, 2004

Honolulu Star-Bulletin Hawaii News
Friday, February 20, 2004



FL MORRIS / FMORRIS@STARBULLETIN.COM
At Waimea Bay Beach Park, lifeguard Glenn Wachtel, left, advised people to stay out of the dangerous shorebreak yesterday as surf reached advisory levels.

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Courtesy of a strong storm off
Japan, heavy surf keeps lifeguards
busy on Oahu's North Shore

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By Mary Vorsino and Leila Fujimori
mvorsino@starbulletin.com lfujimori@starbulletin.com
The big surf that kept Oahu's North Shore lifeguards busy yesterday with at least 11 rescues should continue through the weekend, forecasters say.

The National Weather Service has posted a high-surf advisory effective through today for the north and west shores of Kauai, Maui, Molokai and Oahu.

Forecaster Henry Lau said residents can expect waves heights on Oahu's North Shore to peak today at about 23 feet, with most sets between 15 and 20 feet.



FL MORRIS / FMORRIS@STARBULLETIN.COM
Nicole Foras moved to heed the warning.

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Yesterday, Kauai officials closed beaches between Haena and Kee because of the big waves. Lifeguards on Oahu say they will decide whether to close beaches late this morning.

"It's not really giant," said city Ocean Safety Division dispatcher Rod Alderton, "(but) it's dangerous and there's long lulls, so the water's all blue and looks tranquil."

Alderton's office was flooded with calls for assistance yesterday, and North Shore lifeguards were working overtime until dusk to keep people out of the water.

Off Mokuleia yesterday, a man sustained head injuries while surfing in waves with 8- to 12-foot faces.

By the time the man was rescued, the surf had increased to 10- to 16-foot faces, according to Ocean Safety and Lifeguard Services Lt. John Hoogsteden.

The man was surfing about 300 to 400 yards offshore of Crozier Drive, Hoogsteden said. Fellow surfers rescued the man, who is in his late 30s or early 40s.

Fire Capt. Kenison Tejada said the surfers brought the man past the break, and lifeguards brought him to shore.

At a beach just north of Shark's Cove, another man standing on the beach was swept off his feet by the surf. Hoogsteden said bodyboarders helped the man, who was taken to Kahuku Hospital for evaluation.



FL MORRIS / FMORRIS@STARBULLETIN.COM
Surf reached advisory levels yesterday, and only experts were allowed to enter the ocean at Waimea Bay Beach Park.

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Ocean Safety also reported three rescues at Sunset Beach, three at Waimea Bay and one each at Waialua and Ke Iki. Alderton said one kayaker needed rescuing off Haleiwa.

Lau said the high surf was caused by a strong storm off the coast of Japan that passed north of the islands several days ago.

"There will be a series of storms for the next several days," which translates to a steady stream of high waves, he said.

Lifeguards from other parts of the island will be on North Shore beaches today to help out, Alderton said. But more lifeguards does not mean it is safe to go in the water, he stressed.

"People should never depend on us anyway for their safety," he said.



LATEST NEWS
4:05 PM HST Thursday
Cruise visitors decline, but stay longer, spend more

Prabha Natarajan
Cruise visitors stayed longer and spent more but came in lesser numbers to Hawaii in 2003, according to a state report released Thursday.


A total of 230,495 visitors sailed in Hawaii cruises, down 2.5 percent from 2002. The decrease was attributed to only 47 ships and 125 trips during the year compared to 57 ships and 131 trips in 2002.

Cruise visitors account for 3.6 percent of the state's total visitor count.

"The cruise industry continues to remain strong for Hawaii, and we're particularly pleased that the benefits are spread throughout the state," said Marsha Wienert, state tourism liaison.

Nearly 90 percent of all cruise passengers visited the four main islands of Oahu, Maui, Big Island and Kauai.

In 2003, 5,654 locals went on cruises -- nearly 21 percent fewer than 2002. They spent an average of $51 per person per day during the 4.1 days of cruising.

Where they came from
U.S. East visitors on cruises increased during the year and accounted for 55 percent of all passengers. Visitors from U.S. West, Canada and Europe made up the rest of the numbers.

Nearly 58 percent of the visitors were repeat -- mostly from the U.S. West and Canada -- while most of the visitors from U.S. East and Europe were visiting the islands for the first time.

Where they stayed
Passengers spent an average of 4.5 days on board the cruise ship and 1.1 days on shore after the cruise. Also, visitors who flew in to get on board a cruise came in 1.6 days ahead of a cruise on average. Most visitors stayed longer, at 7.3 days on average for a trip. European visitors stayed longest at 8.23 days and U.S. East the least at 7.1 days.

What they spent
Visitors spent $101 per person (compared to $99 in 2002) on tours, souvenirs, entertainment and shopping. On average, U.S. East visitors spent the most -- $108, European visitors $104, Canadian visitors $98, and U.S. West visitors $87 per person.



Hotel occupancy jumps above 87% - 2004-02-20 - Pacific Business News (Honolulu)
LATEST NEWS

8:33 PM HST Thursday

Hotel occupancy jumps above 87%

Howard Dicus
Thanks to the Pro Bowl, the Cisco Systems annual convention, the Great Aloha Run and Valentine's Day, Hawaii hotel occupancy soared in the most recent reporting week to 87.3 percent, Hospitality Advisors LLC reports.



That statewide figure, covering Feb. 8-14, was 8.2 percentage points better than the same week last year, and it was way above the 75 percent occupancy of the previous week. Room rates were 4.7 percent higher than last year.

On Saturday, Feb. 14, which was Valentine's Day,. statewide occupancy peaked at an astonishing 93.2 percent.

Around the islands:

Oahu: 91.5 percent. Waikiki was almost 12 percentage points fuller than it was the same week last year, with room rates about 2 percent higher, to almost $130 a night. More than half the rooms in the state are here.
Maui: 85.6 percent. Hotels were 4.5 points fuller than last year on the Valley Isle and room rates were about 2 percent higher than last year, above $205 a night.
Kauai: 83.2 percent. The Garden Isle saw occupancy more than 15 full points better than last year with rates up nearly 7 percent to almost $192 a night, second only to Maui.
Big Island: 78.4 percent. This was 5.8 points above year-ago levels, but room rates were down 5.1 percent to about $151 a night on average.
The nationwide occupancy rate for the same period was 61.2 percent, Smith Travel Research LLC reported, while hotels were 79.7 percent full in Los Angeles and 75.9 percent full in Orlando.




Thursday, February 19, 2004

LATEST NEW
8:57 PM HST Wednesday
CBRE Hawaii: Retail vacancy rate 5.9%

An improving market resulted in a retail vacancy rate of 5.9 percent, according to CB Richard Ellis Hawaii's retail market index brief for fourth quarter 2003.


Vacancy rates have declined in most markets with an overall drop of 1.3 percent from 7.2 percent at the beginning of 2003.

"The Hawaii real estate market is outpacing the national market," said Jeffrey Hall, director of research. "Nearly 1.2 million square feet of shopping center space has changed hands and experienced significant absorption in 2003, due to the enhanced vision of new ownership."

Retail absorption climbed to more than 180,000 square feet in CBRE Hawaii's 2003 survey. Most of it occurred on Oahu, although the largest proportional gains were on Kauai in the resort center category.


Kauai Garden Island News

KAUAI News


Kaua‘i Food Bank kicks off food drive






By DENNIS FUJIMOTO - TGI Sports Editor

LIHU‘E — The Kaua‘i Food Bank is trying to surpass its 2003 goal during the 2004 Spring Fund and Food Drive which begins in early March.

Kaua‘i Food Bank Board President Paul Douglass announced the campaign start at a mahalo celebration held at the Kaua‘i War Memorial Convention Hall Wednesday morning.

Douglass told the gathering that the 2003 year was a record-breaking year, while setting the goal for the 2004 Drive at $20,000.

Mickie Diamant, the food bank's community development officer, reminded people that for every dollar they contribute, the Kaua‘i Food Bank is able to distribute $16 worth of food to Kaua‘i and Ni‘ihau people who might otherwise go hungry.

The gathering served not only as a kickoff for the Spring campaign, but also to recognize the efforts of community volunteers who put in a combined 13,000 volunteer hours in 2003.

Labeled the "cookie and cracker lady," Anthony Koerte, the Kaua‘i Food Bank's warehouse supervisor, presented Gladys Oshiro with a plaque for her 190 hours of volunteerism, most of that time spent stocking the cookie and cracker sections to the brim.

Linda Wong was recognized for her 211 hours of service to the Nawiliwili facility, and Charles Song was recognized as the Top Volunteer with 250 hours of service, Koerte asking the audience to do the math to realize the cost savings to the Kaua‘i Food Bank volunteerism serves.

David Kalahiki, the event host as well as representing Kaua‘i Fresh, the Kaua‘i Food Bank's produce section, recognized Rainbow Gardens for their contribution of over 13,000 pounds of fresh sprouts that went towards the food bank's goal of feeding Kaua‘i's hungry.

Also recognized were agencies that were responsible for distributing food to those who need it, Nana's House in Waimea receiving a third place plaque for their efforts which amounts to serving about 750 people a month with 37,000 pounds of food distributed in 2003.

St. Michael's Church was recognized with a second place plaque for their efforts which sees about 1,000 people fed monthly through the distribution of 49,000 pounds of food in 2003.

Aloha Church, whose Grace Galiza expressed her pride in being part of the team to help feed Kaua‘i's hungry, topped the agency recognition with over 1,000 people being served each month, and 76,000 pounds of food distributed last year.

Top Grocer Donor awards were announced by Kelvin Moniz who said Safeway was the largest donor followed by Big Save, Inc., and Foodland. Papaya's was the largest of the small business donors.

The Kaua‘i Food Bank 2004 Spring Healthy Food and Fund Drive sponsors include the County of Kaua‘i, The Garden Island newspaper, Kaua‘i Island Utility Cooperative, Aloha Furniture Warehouse, Kaua‘i Lumber Company and the Kaua‘i Community Federal Credit Union.

The mahalo banquet was made possible through the efforts of the County of Kaua‘i, Lihue Court Town Homes, Kauai Nursery and Landscaping, and Diversified Awards and Engraving.



Wednesday, February 18, 2004

Cane versus commercial development: value in A&B farmlands - 2004-02-18 - Pacific Business News (Honolulu)

LATEST NEWS
6:58 AM HST Wednesday
Cane versus commercial development: value in A&B farmlands

A mainland stock analysis firm says Alexander & Baldwin has only just begun to tap the value of its massive land holdings in Hawaii. But the glowing report is based on the assumption that its Maui canefields will inevitably be developed for more profitable uses.


The analysis came this week from the Motley Fool, whose name hints at the breezy, cut to the chase style of its reports. It said Tuesday that A&B stock is undervalued relative to future earnings because of its land holdings in Hawaii.

A&B carries $120 million in property, much of it undeveloped land on Maui and Kauai. "And what, you may ask, is the average carrying cost per acre for this undeveloped land? Would you guess $5,000? $10,000? The answer is $150. Don't blink, you read it correctly," Motley Fool said. "The company owns around 90,000 acres in Hawaii, with an average cost per acre less than the price of an expensive dinner for two."

The report said A&B's real estate division "has barely begun to unlock the value of its historic landholdings -- yet the segment is already highly profitable." A&B Properties made a $61 million last year, up 17 percent, on $144 million in revenue.

The mainland analyst did note that 30,000 of A&B's Hawaiian land holdings are zoned for watershed or conservation. "However," it said, "that still leaves more than 60,000 acres of mostly agricultural land worth substantially more than the stated cost."

A&B grows sugar cane on its central Maui farmlands, and coffee on its Kauai holdings.



COURTESY OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
The Hawaiian Islands, winter home to more than 6,000 humpback whales, will be part of a $5.8 million study of the species.

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Whale of a study

Hawaii plays a key role
in the largest-ever study
of Pacific humpbacks


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By Diana Leone
dleone@starbulletin.com
Over the next three years Hawaii will be part of the largest-ever study of endangered humpback whales in the North Pacific Ocean, isle scientists announced yesterday.

The $5.8 million international project likely is also the largest study of any whale species, said David Mattila, science and rescue coordinator for the Hawaiian Islands Humpback Whale National Marine Sanctuary.

It will involve more than 100 researchers in the United States, Japan, Russia, Mexico, Canada, the Philippines, Costa Rica, Panama, Nicaragua and Guatemala.

Key portions of the research will be done in the Hawaiian Islands, which is the winter home of more than 6,000 humpbacks, a majority of the estimated population for the entire North Pacific. Winter studies also will be done off the coasts of Mexico, Central America and Japan.

In summer, when the whales move north, other researchers will take over the work at West Coast National Marine Sanctuaries and other feeding areas. In some cases Hawaii researchers will go to the Aleutian Islands off Alaska or the Commander Islands near Russia on research vessels, Mattila said.

The project links virtually every research group that studies humpback whales, many of which are Hawaii-based or travel regularly to Hawaii in winter, Mattila said.

The study's name is SPLASH, which stands for Structure of Populations, Levels of Abundance and Status of Humpback Whales.

"This is unprecedented in the level of cooperation and geographic scope," Richard Spinrad, assistant administrator of the National Ocean Service, said yesterday at the Waikiki Aquarium.

Mattila said he is excited about the international cooperation and plans to widely share information gained through the study. Though some preliminary information may be released earlier, a full three years of data will be required to draw most conclusions, he said.

Among the questions researchers expect to answer are:


>> How many whales are in the North Pacific?
>> Are their numbers going up or down?
>> Are there toxins in whale feeding areas?
>> What effect do marine debris and fishing gear have on whales?

Another question will be where whales that winter in Hawaii spend their summers, said Chris Gabriele, a wildlife biologist at Glacier Bay National Park in Alaska.
Of the estimated 6,000 whales that winter in Hawaii, only about 900 are known to spend the summer in Southeast Alaska, where she works at Glacier Bay National Park and Preserve, Gabriele said.

"Where are they all going?" Gabriele asked.

Each of the main Hawaiian Islands has a research team that will "tag" whales from December to April.

When they encounter a whale, a team will:


>> Take digital photographs of its tail, or fluke. The unique markings are used like a fingerprint to identify each individual.
>> Collect a small sample of whale tissue, which will be used to determine the animal's sex, plus show whether the whale is pregnant or has significant amounts of dangerous toxins in its blubber.
>> Take photos of scars on the animal that indicate entanglement in fishing line or injury from striking a boat.

The study will be similar to a study done in the North Atlantic in 1992-93, which cost about $3 million, including use of equipment and services from governmental agencies, said Mattila.
Technology has progressed since that study, Mattila said, so that more genetic information can be gathered about each whale from tissue samples.

The sample is collected with a specially designed crossbow that takes a pencil-eraser-sized chunk of blubber and skin from the whale.

A mature humpback can be up to 45 feet long and weigh 45 tons. The humpback whale was listed as an endangered species in 1973. Scientists estimate that the pre-whaling population of the animal in the North Pacific was about 15,000. The population was estimated to be about 7,000 in 1992, the most recent reliable estimate.

The SPLASH project is supported by the National Oceanic and Atmospheric Administration. Information about the study is available at hawaiihumpbackwhale.noaa.gov

Kaiser Permanente Leaving Kauai

(Honolulu) -- Kaiser Permanente is pulling out of Kauai. The health care organization will stop offering its insurance plans to commercial employer groups on Kauai effective December 31st. State and county employees whose plan coverage begins July 1st also will be affected. Kaiser covers about 47-hundred people on Kauai, or about 7.8% percent of the island's resident population.

Kaiser has never had a physical presence on Kauai, and has provided health coverage under a contractual arrangement with Kauai Medical Group for physician services and Wilcox Hospital for in-hospital services. Kaiser spokesman Chris Pablo says the primary reason for the withdrawal from Kauai was the cost of contracting services.

Monday, February 16, 2004

Kauai Garden Island News

KAUAI News

Kaua‘i Rotarians fighting polio in India



Members of the Rotary Club of Kapa‘a now in India to help medical professionals eliminate polio are: left to right, Neva Olson, Marty Kahn and Pam Brown.
By PAMELA V. BROWN - Special to The Garden Island

A dozen Kaua‘i residents are having experiences of their lifetimes, volunteering to travel to India to help immunize children against polio.

The Kauaians are there now as part of Rotary International's PolioPlus program, an ambitious, 19-year campaign to rid the entire planet of polio.

Since the drive began in 1985, all but seven countries in the world have become certified as polio-free, and of those seven, India has the highest incidence of polio.

Kaua‘i Rotarians and some of their spouses are joined in India by 10 O‘ahu residents and tens of thousands of Indian Rotarians, health workers and others, helping to administer oral polio vaccines.

Just a couple drops of the liquid on a child's tongue will prevent the disease's devastating effects — paralysis and sometimes death.

During India's National Immunization Days in February last year, 165 million children were immunized.

Kauaians in India include Neva Olson, Marty Kahn and Pam Brown of the Rotary Club of Kapaa; Kahn's wife Carole Kahn; Valerie Parker, president of the West Kauai Rotary Club; Al and Patty Ficker and Margee Faunce of the Rotary Club of Poipu Beach; Don and Susan Wilson; and Bruce and Mary Baxter.

In what was the first and has become the largest internationally coordinated, private-sector support of a public-health initiative, the PolioPlus program has partnered Rotary International members with those from the World Health Organization, UNICEF and the U.S. Centers for Disease Control and Prevention.

Rotarians worldwide have contributed more than $500 million to the effort.

Program coordinators believe that by 2005 polio will be defeated globally.

Widespread use of the polio vaccination in the United States began in 1952.

Kaua‘i residents traveled to India on their own volition. Rotary leaders do not provide funds for members to participate in such charitable projects.

For Marty Kahn, owner of Kahn Galleries and a longtime member of the Kapaa Rotary Club, it's well worth the time and expense.

"PolioPlus is the most amazing project that I've ever witnessed or been privileged to be part of," he said. Kahn, who met up with his wife Carole Kahn who was already traveling in India, before he left Kaua‘i earlier this month was looking forward to meeting Rotarians and others of like minds.

"It's comforting (to know) that there are people around the world who have the same goals, dreams, aspirations and desires in their community as we do here in our home," Kahn said.

"Saving children from that dreaded disease regardless of religious affiliation or cultural background is a joy that can't be spoken or measured."

India has long been a "moving target" in the quest to eliminate polio, said Hanalei resident Gary Siracusa, district governor for all of Rotary in Hawai‘i.

"Two years ago in one day during a National Immunization Day, we immunized 100 million kids, and you're not making a dent in the population."

Rapid reproduction rates, logistics of hundreds of thousands of people living in boats on rivers, and religious differences in developing nations make the remaining work challenging, Siracusa said.

It's also a logistical challenge of the highest order to get the word out to residents in rural areas that a life-saving elixir is available at no cost, he said.

Roads to some villages are in poor repair or completely impassable. People in such villages don't have television or radios. Among illiterate people, rumors run rampant that the oral vaccine will cause sterilization, said Siracusa.

Out of fear, well-meaning parents withhold their children from the free clinics staffed by health workers and Rotarian volunteers.

Despite the challenges, for Kahn making a difference is what it's all about. "I'm looking forward to being able to do the good that I went there to do, and feel the excitement and energy of being in a new place," he said before leaving.

Rotary International is a worldwide network of 1.2 million business and professional leaders belonging to 31,000 clubs in 166 counties, providing humanitarian service in their home communities and in locations around the world.

There are six Rotary clubs on Kaua‘i.

Pamela V. Brown is a freelance writer, Kapa‘a resident, and current president of the Rotary Club of Kapaa.


Sunday, February 15, 2004

Honolulu Star-Bulletin Business



CRAIG T. KOJIMA / CKOJIMA@STARBULLETIN.COM



Donald and Nancy Smallwood marked their 44th wedding anniversary yesterday with a renewal of vows ceremony at the Outrigger Reef on the Beach.




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State finds true love
in wedding industry
Hawaii’s nuptial market
is up 31 percent in the last
five years


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By Allison Schaefers
aschaefers@starbulletin.com
Hawaii's wedding industry is a niche market with a future that might just last longer than the average marriage.

An increasing number of wedding couples are saying, "I do," to the romance of the islands and the word is getting out, said Marsha Wienert, Gov. Linda Lingle's tourism liaison.

Hawaii was recently named America's top romantic destination in a poll conducted by Yahoo! Travel and National Geographic Traveler magazine. Maui and Honolulu also have been named top destinations by Hotels.com. And moviegoers who go to see the romantic comedy "50 First Dates," which opened yesterday, will be able to see actor Adam Sandler romance actress Drew Barrymore against the backdrop of Hawaii's natural beauty.

"Hawaii is the perfect place to celebrate romance," said John Monahan, president and chief executive officer of the Hawaii Visitors and Convention Bureau.

Last year, visitor weddings grew 7.4 percent over 2002 to 18,131 ceremonies and comprised a third of all nuptials in the state. And despite a recent drop in international weddings due to SARS and the war with Iraq, overall the market has grown nearly 31 percent in the last five years, according to data from the state Department of Health.

The number of Japanese visitors coming to Hawaii to get married dropped in 2003, but the industry is healthy, said Hidetoshi Watabe, president of the Hawaii branch of the Watabe Wedding Corp., which handled a record 16,595 Japanese weddings in Hawaii in 2000.

Japanese wedding couples have a big impact on Hawaii's overall tourism industry, Watabe said. "Japanese wedding couples brought about an average of 7.7 guests, excluding the couple, to Hawaii in 2002," he said.

The industry is one Hawaii should romance because of its potential for high economic yields, Wienert said.

More than 20 percent of all adults who traveled last year -- roughly 42 million people -- took at least one trip in 2003 for a honeymoon, to celebrate an anniversary or to attend a wedding, according to data from the Travel Industry Association of America. Romance-related travel also is very popular with the Baby Boomer generation, which comprises 41 percent of travel in this niche market. Baby Boomers are attractive to the visitor industry because they typically have higher household incomes than other demographic segments.

"If there's a time in your life when you don't worry about expenses, it's a wedding or a honeymoon," Wienert said. "The destination weddings market impacts a wide range of businesses that aren't normally touched by tourism."

The International Institute of Weddings estimates the average cost of a U.S. wedding at more than $21,000, with money being spent on everything from food and lodging to clothing and flowers.

"The wedding market is huge," said Lori Naone, sales and events coordinator at Outrigger Hotels & Resorts. "It's definitely one of the more popular reasons for coming to Hawaii."

Trying to capitalize on the growing romance market, the Outrigger Reef on the Beach started offering a complementary vow renewal ceremony performed against the backdrop of Waikiki Beach.

Couples of every age, dressed in styles ranging from aloha casual to semiformal, have participated in the ceremony. Since October, 150 couples have renewed their vows at the weekly event, Naone said.

"So many people fantasize about getting married in Hawaii," Naone said. "I get e-mails everyday asking about the ceremony."

Although Oahu gets the lion's share of wedding and honeymoon visitors at more than 70 percent, wedding couples and honeymooners also are seeking out neighbor island views for their nuptials. Last year, Kauai drew the largest percentage of those who came to the state exclusively to get married or honeymoon, according to data from the Department of Business, Economic Development & Tourism.

The wedding of "Friends" star Matt LeBlanc last year and the paparazzi blitz concerning Jennifer Lopez's nuptial plans have pushed Kauai to the forefront of the romance destination market, said Sue Kanoho, executive director of the Kauai Visitors Bureau.

"Media coverage of celebrities has increased and there's a heightened awareness of Kauai," Kanoho said, adding press about the LeBlanc wedding netted the equivalent of $838,239 in free publicity for the island.

Wedding and honeymooner growth on Kauai has been so strong that the island is giving other destinations a run for their market share, said Silvia Gamma, president of the Kauai Wedding Professionals Association.

"We've had about a 30 percent increase in business over the last few years," Gamma said. "Even Maui, the No. 1 neighbor island market, is starting to worry."

Terryl Vencl, executive director of the Maui Visitors Bureau, denies the Valley Isle is worried.

"It's booming," Vencl said. "And it's continuing to grow. People are attracted to the ambiance of our island. The laid-back atmosphere tends to attract people who want to take time to be together away from the everyday hassles of life."



Reactions to Kauai tax
reform plan mixed


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By Anthony Sommer
tsommer@starbulletin.com
LIHUE >> A Kauai County task force unveiled a sweeping property tax reform proposal to mixed reviews at Thursday's County Council meeting.

Council Chairman Kaipo Asing expressed doubts, saying he believes the proposals to limit property tax values while land prices are skyrocketing will fuel even more buying by land speculators who plan to leave the parcels vacant for years or decades while they increase in market value.

"If I had a lot of money, knowing the land values (for tax purposes) are not going to move much, I would buy a lot of land," Asing said.

In contrast, Council Finance Committee Chairman Joe Munechika endorsed the proposal: "I understand the concept and I like the concept. Part of my responsibility is to sell it to the other members."

The Council sent the matter to Mayor Bryan Baptiste with a request for a bill for them to act on. In a written statement, Baptiste thanked the task force for coming up with a proposal that "appears" to be better than the current law but still will be considerably amended.

Public testimony on the proposal was limited because the task force did not make copies of its recommendations public until only a few minutes before it was presented to the Council.

Appointed last spring by Baptiste and the Council in reaction to double-digit increases in property tax collections the past two years, the nine-member task force is recommending drastic changes to the way in which the county places a value on land.

But the proposal does not limit the Council's authority to set tax rates or place any cap on county spending.

The spreadsheets that accompanied the document were all "revenue neutral," meaning that the recommendation was designed so that it would not increase or decrease county property tax revenues in 2005, assuming the tax rates stay the same as in 2004.

Examples provided with the recommendation show that owners of expensive beachfront property will receive the biggest tax breaks. A beachfront home in fashionable Anini would receive a 74 percent tax cut; what was termed a "beachfront mansion," also in Anini, would see taxes reduced 62 percent; and a "luxury dwelling" in Poipu would be given a 99 percent tax cut.

"Why are we giving all these breaks to millionaires?" Asing asked.

The housing boom, which started on Kauai late in 1998 and hit property valuations in 2001, sent property values soaring 13 percent last year and 21 percent this year. The Council declined in both years to roll back tax rates, and county coffers are bulging.

The task force recommendation would set the 2005 value of every parcel on the island at a figure that equals the average of the same property's tax valuation from 1999 to 2003.

It then would limit annual increases or decreases to the Honolulu Consumer Price Index, which has been growing by 1 percent to 2 percent in recent years. The valuation for tax purposes would remain fixed even if the property is sold.

It also would reduce Kauai's eight tax classifications to two: residential and general. Long-term rentals would be classed as residential. Vacation rentals would be classified as general property and valued at double the amount of residential.

A competing proposal from citizens group Ohana Kauai might appear on the ballot this fall. That measure is limited to residential property. It would roll property valuations back to 1998 and limit increases in total tax bills to the annual cost-of-living increase. That would put tight reins on the Council's ability to change the tax rate.



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