Saturday, April 03, 2004

Kauai Condo Crisis
Rising prices are fueling speculation

By Eddy Conway



When the spirits ruled this island centuries ago, the people worshipped Hiaka, the god of the mountain. Today, the gaze of Kauai's residents is raised heavenward by the lofty prices for condominiums.

In an era in the Hawaiian Islands when few things are more precious than a single-family home on Maui, condos on Kauai are also remarkably dear. Once priced at about two-thirds the cost of a home, a Kauai condo in January 2004 cost about 94 percent of a single-family home, according to the Hawaii Information Service, which tracks realty prices on Kauai. The median condo price was $362,000, and headed upward.

"The Kauai market is just booming right now," says Ryan Harada, a vice president of Central Pacific Bank. He wrote a loan for Plantation at Princeville, 68 units, which broke ground in November, and sold its last unit four months in late February. "The other two projects, Villas of Kamalii and Villas on the Prince, sold just as fast. They actually resold some units before the units were finished," he says.

Speculating in resort condos or residential condos is the new realty game on Kauai. Last July, Dana Newquist and Andrea Eltinge of Santa Barbara bought a resort townhouse in a new condo at Villas of Kamalii, in Princeville. The couple paid $430,000 for the second home, but "our plans changed," explains Newquist, from Santa Barbara. Never occupied, the condo immediately went back on the market, where it has been listed for seven months at $570,000, a markup of $140,000.


Illustration: Mike Austin

"The condos have taken off, but so has everything else on this island," reports county tax assessor John Herring. "I see spec buying right now, I see people buying and selling in three months and turning $60,000. This is a seller's market, and the sellers will increase their list price and sit on their listing until they get their price.

"This trend started back in late '96 and early '97 - all types of property started to escalate … In my opinion, we are in the sixth year of an appreciating market. I don't believe the local people living here, including myself, can pay that price."

Between January 2003 and January 2004, the median condo price was up 57 percent, according to figures from the Hawaii Information Service. Specialists in the condo market, such as Realtor Phil Fudge, tell stories of 50 percent and 100 percent appreciation on some units in a year or two. Resort and time-share condos have become so lucrative that only one-third or one-fourth of about 4,000 condos on Kauai are now actually "residential," Fudge says.

"Some condos converted to vacation rentals and time-shares," explains Bill Spitz, an economic development specialist for Kauai County. "That takes them off the residential market, and puts further pressure on residential rentals and prices. Rents have really experienced an uptick in the last year."

Most of the condo projects now under construction are for resort rather than residential use. A busy hotel market on Kauai contributes to pressure for more resort units. Searchers for residential condos find few advertisements. High demand from Mainland buyers, a low inventory and blurring definitions make condo shopping on Kauai an adventure in a new condo-language.

Patty Serdu, who wades among the incoming tide of buyers as the branch manager at First Hawaii Title, takes a break from paperwork for a $960,000 condo to confirm the prices claimed by Realtors. "The minute they come on the market, they're sold," she says. "We get a lot of second homes. We had one sale that occurred on the first day the unit was listed. It's just nuts."

The glee in realty offices is tempered by concern at City Hall. "Condos have higher value to owners as a vacation rental or, I guess, as a timeshare," says Kauai County councilmember JoAnn Yukimura. "They are not in the affordable range for people who live and work on this island. … Many people who grew up here are having a hard time finding houses to live in. They are living with their parents, or they are moving off island. They are paying far more than 30 percent of their income for housing costs. I don't think public officials have foreseen the crisis - but it is here."





Thursday, April 01, 2004

Meeting gathers suggestions for rules on surfing schools

By Suzanne Roig
Advertiser East Honolulu Writer

Surf school zones, an ocean management plan, student-teacher ratios, or an outright ban on surf school operations were among the solutions suggested by residents at a public meeting held last night to discuss a surf school at the popular Tonggs break near the Kaimana/ San Souci beach.

About 40 people gathered at Jefferson Elementary School to consider public safety, protecting natural resources and concerns about disruptions to the neighborhood.

Information gathered at the meeting will be used as a basis for recommendations for new rules on surf schools. State officials with the Department of Land and Natural Resources will submit the recommendations to the state land board.

Some of the rules may apply to surf schools statewide, from Hale'iwa to Hanalei, but others would be specific to Kaimana Beach, said Steve Thompson, acting administrator of the DLNR boating division.

"We're constantly trying to weigh the competing interests," Thompson said.

"These are issues we face everywhere — it's happening in all areas."

The issues discussed last night arose from complaints about the Hans Hedemann Surf School, which has been giving surfing lessons out of the New Otani Kaimana Beach Hotel in Waikiki for nine years. Neighboring residents want the school to be banned there.

"I'm hoping that good policy comes out of this," said Bob Gentry, a resident of the beachfront community called the Gold Coast. "The issue is what ocean use is appropriate in certain areas."

Residents of condominiums fronting the popular surf break Tonggs, where many of Hedemann's students catch their first wave, were the most vocal in their opposition to any type of commercial venture operating at Kaimana Beach.

"The commercial aspect of surfing is the issue," said Hedemann. "I'm here to try to resolve the community's concerns."

For the past three months, the state has been considering whether to revise rules governing surf schools by changing the licensing requirements, requiring insurance that leaves the state and neighboring property owners blameless in case of injury and having instructors teach the students surf etiquette.

The purpose of last night's meeting, a follow-up to a January meeting, was to seek proposed solutions and new testimony that will help decide whether — and how — rules enacted more than a decade ago need to be updated.

"I think the right solution is to just ban surfing schools to the waters kokohead of the Elks Club," said Richard Quinn, a Gold Coast resident. "It's an issue of safety."

But Peter Cole, who represented the Surfrider Foundation's O'ahu Chapter, reminded residents that surfing is a part of Hawai'i's culture and that there are few places were the surf is small enough for learners and that access to the break is a long paddle away.

"We have to have a compromise on the issue at hand," Cole said. "This is the best place in the general area for a surf school. We need to accept that."

Reach Suzanne Roig at sroig@honoluluadvertiser.com or 395-8831.

Wednesday, March 31, 2004

Wailua condominium owners want bike path to go mauka


The cove at Papaloa fronts several beachfront condominium complexes at Wailua.
By LESTER CHANG - TGI Staff Writer
Posted: Sunday, Mar 28, 2004 - 01:50:40 am HST


A Wailua couple has recommended the Seashell Restaurant on Wailua Bay be torn down to make way for a two-mile leg of a 23-mile-long, bicycle-and-pedestrian pathway Kaua‘i County officials have proposed from Nawiliwili Harbor to Anahola.

Doing so would open the way for development of the pathway along Papaloa Road in Wailua, instead of on a beach in front of a row of condominium projects lining the bay.

The option is being considered by county officials, said Sonja and Bernie King, residents at the Lae Nani condominiums.

The Wailua Bay View, Hale Awapuhi, and Lanikai, and Lae Nani condominiums are located along the picturesque bay.

The Kings said the long-shuttered Seashell Restaurant should be torn down to make way for the third phase because the structure has become rat-infested since it was damaged by Hurricane ‘Iniki in 1992 and closed since then.

The Seashell Restaurant is part of the old Coco Palms Resort, which also was severely damaged by the winds of ‘Iniki and remains closed. The hotel is now up for sale.

The two-mile section of the bicycle-and-pedestrian pathway is proposed to run along the coast from Lydgate Park to Waika‘ea Canal on the south border of the Pono Kai Resort in Kapa‘a. The section is the third phase of the county's proposed six-phase bicycle-and-pedestrian pathway project that would run north to Anahola, and south to Nawiliwili, eventually.

The Kings voiced their opinion in a letter sent to Kimura International, the Honolulu-based consultant conducting an environmental assessment of the route of the two-mile section.

Richard Weiser, a Princeville resident who is negotiating to buy the Coco Palms Resort, said he has been in touch with county officials to "discuss the right-a-way for the bicycle-pedestrian path in two different areas" by the restaurant.

"In no way does either option call for knocking down the restaurant," Weiser said. "We believe it (the bike path) is very good idea, and we are supportive of it."

Weiser said he is aware of the three options proposed for the pathway around the old restaurant, and supports the concept of the project.

"As far as we are concerned, we think it is a good idea, a great county amenity, and if we can work it out we will," Weiser told The Garden Island.

The Kings voiced other reasons for not having a pedestrian-bicycle path put on the beach.

The couple said Papaloa Cove is home to endangered Hawaiian monk seals, and that as volunteers for a monk-seal program they have worked to help with the recovery of the species.

The Kings said they sometimes have had to block off "quite a bit of lawn that is on state land in order to be 150 feet away (a safety distance) from the seal."

There are estimated 1,300 Hawaiian monk seals living in Hawaiian waters today.

The couple also said they can see "many problems with the path coming so close (to the condominiums by the beach) and the increased traffic with the bike path."

The couple also contend erosion makes the county-owned beach area a questionable choice for the pathway.

The shoreline in front of the Lae Nani condominiums was severely damaged by the huge waves of late November last year, and "there is a lot of erosion," the Kings wrote.

The couple also voiced concerns about heavy equipment being brought to the beach to create the pathway, and the impact of the project on surrounding areas.

The couple also said that should the pathway be put on the beach, "there will be no access for EMT (emergency medical technician) vehicles to reach any injured people on this portion of the bike path."

The Kings said they wouldn't object to placing the pathway on the beach if there were no other options. But, there are other options, they said.

Nancy Nishikawa, a senior planner with Kimura International, said three alignments are being considered.

One would run along the beach behind the condominium projects; a second would run along Papaloa Road; and a third would run northward along a canal behind the old Coco Palms Resort and the shopping centers in Wailua.

No route has been selected, as work on a draft environmental assessment for the two-mile, pedestrian-and-bicycle path is ongoing, Nishikawa.

She said the consultants and county officials welcome public comments in trying to determine the best route.

The Kings also said they also didn't like the idea of the pathway going on a public right-of-way between their condominium project and the Kauai Sands Hotel.

Putting parts of the pathway there would mean having to cut down several ironwood trees, the Kings said.

"A lot of trees have to come down, ironwood and palms trees, to make way for this project," Sonja King told The Garden Island.

A better option would be to have the pathway "connect to the shoreline by going between the Islander on Beach (hotel) and Kauai Sands (hotel)," the Kings said.

The King also wondered whether the proposed two-mile section would be in compliance with the federal Americans with Disabilities Act.

Nishikawa said it was her impression the proposed 23-mile bicycle-and-pedestrian pathway project has been generally accepted by the community.

A 2.3-mile trail at Lydgate Park has been completed, and progress is being made on another 4.3-mile section along the East Kaua‘i coastline.

The first two phases have moved more smoothly because they have been developed, or are planned to be developed in rural areas with few homes, Nishikawa said.

The proposed third phase has come under more public scrutiny because portions of the pathway would run by residences, Nishikawa said.

"We have received comments from different segments of the community, and some people like the idea of a coastal path, and others don't," Nishikawa said. "We have heard from all different sides."

She said progress is being made on the proposed third phase. "I don't see any reason for any slowdown in moving toward the objective of getting the environmental assessment for this segment," she said.

"The process is doing what it should do, which is to make people aware the project is in the pipeline, to make people aware of various impacts from the project, and to resolve them."

Nishikawa said once the draft environmental assessment for the proposed third leg of the 23-mile county project is published, a 30-day, public-comment period begins.

During that period, a third meeting on the third phase will be held on Kaua‘i, Nishikawa said.

Two earlier meetings on the third phase were conducted, in January and this month, at Kapa‘a Middle School.

Staff Writer Lester Chang may be reached at 245-3681 (ext. 225) or mailto:lchang@pulitzer.net.

Tuesday, March 30, 2004

Historic mill plans old-style rice tower

By Jan TenBruggencate
Advertiser Kaua'i Bureau

HANALEI, Kaua'i — The Haraguchi Rice Mill museum will build a traditional yagura next month — a watchtower to keep away birds.

"In the old days, most every rice farm had one of these towers," said Rodney Haraguchi, president of the foundation that runs the Hanalei Valley museum on rice cultivation.

Yagura were generally 10 to 15 feet high, with a platform on top where someone — usually a kid — sat and watched for birds. They often were placed in the middle of rice fields, and tied with bits of fabric and clanking empty cans extending in all directions, like a maypole. An attendant would pull the strings to frighten birds that attacked the crops.

While wetland taro cultivation dominates the valley flatlands today, rice was the primary crop for a century, until 1961. The Haraguchi Rice Mill includes a restored mill and much of its equipment.

Hawai'i high school and college students and Native Hawaiians are invited to participate for free in the weeklong yagura-building project, which includes meals and camping accommodations. Others will pay $525 for residents and $975 for nonresidents, a tax-deductible portion of which will go to the museum.

Traditional timber framing techniques and local materials will be used, with building sessions conducted by the Fox Maple School of Traditional Building of Maine. School director Steve Chappell, who will oversee the project, said he hopes the program will demonstrate alternatives to imported building materials.

Harvesting and joinery techniques will be taught 8 a.m. to 5 p.m. April 5 to 9 as parts are built for the 18-foot yagura frame. The tower will be raised on April 10.

For information, visit www.foxmaple.com/kauai2002.html, write to kilauea@aloha.net or foxmaple@foxmaple.com, or call the rice mill at (808) 651-3399.

Reach Jan TenBruggencate at jant@honoluluadvertiser.com or (808) 245-3074.

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