Island News March 08

Aloha,

I hope you've been having the same spectacular weather we've been enjoying. The week before last was so wonderful that even the locals (like me!) were saying how rare it was to have one full week of absolutely perfect days. We're back to more normal weather now which is sun, light clouds and pleasant trades.

I'm happy to report that real estate activity seems to have picked up within the last two weeks. This is based on the number of clients I've shown property to, along with what I see going on in our office. I've also have several calls to show my listings - plus more things seem to be going into escrow and staying there.

This buyer's market is nowhere near as stable as the seller's market was. Back then, buyers did everything to keep a contract together for fear of losing their prized property but today, with so many to pick and choose from, many buyers get into escrow and decide, and for one reason or another, to cancel or even worse, it falls out at the end due to financing. That's another thing that makes this market unstable...we do not have the same financing guidelines now as we did then and fewer people can qualify.

Rumors have been flying regarding the Princeville Hotel renovation which is scheduled to start sometime later this year. The most consistent rumor is that the hotel will close in September for approximately 8 months during which time they intend to incorporate the spa that is now over at the PV Golf and Health club into the hotel. As the General Manager of Princeville at Hanalei said, you can't have a spa experience then have to drive back to the hotel over a bunch of speed bumps. Clients want more pampering than that and the hotel is gearing up to do it.

All of this is good news, as it brings value to every single property in PV. If you've been here lately, you've undoubtedly noticed that the PV shopping center is also being spruced up. The real estate office downstairs of us is moving and that space will be replaced (so I hear) by a food court. You can already see all the nice picnic table setting out in the courtyard. Big changes, which are great for all of us, especially RE/MAX because we'll be the only company right there above the food court. Don't forget to call me if you get into town and want to stop by the office to say hi. I usually work at home but would be delighted to come down and meet with you.

Although I reported in last month's newsletter that the Council had passed the resolution regarding vacation rentals outside of Visitor Destination Areas (VDA's) it does not become law until the Mayor signs it. Please, correct me if I am wrong, but I have heard NOTHING about the Mayor signing this bill into law. Why is that? It literally took years to get this far. Are we now to wait another 10 years for a signature? Hopefully, I just missed the announcement and this legislation has, in fact, been signed into law.....

On another topic; despite Island wide support, the County Council voted 4-3 this past week to shelve a bill that would have placed a temporary moratorium on the creation of new agricultural subdivisions. Per the 2/28/08 Garden Island newspaper, "Several hours of discussion at the Historic County Building revealed a communication breakdown (?) with the administration in addition to mostly legal concerns over the proposed legislation." (the "?" is my emphasis.)

"Councilman Mel Rapozo said his vote was more of a statement against the administration than a position on the moratorium." Maybe now, you are beginning to see why I love the County Government so much. I thought our Council members were there to vote on bills based on the good of the Community; not to express their "statement." Oh well. You can read all of this under "Ag subdivision decision shelved."

On a more positive note, the Planning Commission approved a biomass plant, clearing the way for Green Energy Hawaii. The 2/27/08 Garden Island reported that the "Planning Commission unanimously approved use permits critical to the sustainability project. The precedent-setting decision will allow Green energy Hawaii to proceed with its plan to build a 7,100 kilowatt facility in Knudsen Gap that will renewably provide roughly 10% of the Island's energy needs.

The Kauai based company will use gasification technology to convert mostly albizia and eucalyptus wood chips into power that will be sold to the local electric company." (See TGI "Commission approves biomass plant.) In case you don't know how badly our electric company (KIUC) needs help, let me just say that we have the most expensive electricity in the US. Last time I asked it was something like 31 cents a kilowatt with a fuel surcharge of 37 cents per kilowatt. That's why we like the trade winds better than A/C. One is free and the other is well--- extremely costly.

On a side note, the Pacific Business News reported in their 2/22/08 issue that "Honolulu based sold technology firm Sopogy Inc. plans to build a 50 acres sold farm on Oahu capable of generating about 10 megawatts of power, enough energy to power about 30,000 homes." " Sopogy plans to sell the power to Hawaiian Electric Co. What we're trying to do is bring large-scale solar energy to Hawaii." To read more on this go to www. Pacificbusinessnews.com.

I think that's about it for this month. Hopefully next month, and in the months to follow, I'll have more Real Estate related news. A hui ho.

Aloha Elaine

Elaine Schaefer (R, GRI, ABR)
Broker in Charge - Princeville Resort Office
Graduate, Realtor's Institute
Accredited Buyer's Representative
Top Producer 100% Club

RE/MAX Kauai
Princeville Resort Office
POB 223632
Princeville, HI 96722
cell: 808 639 2935
home fax: 1 808 440 4552
email:soldonkauai@yahoo.com
website: www.kauairealestatenow.com

......you can have your own piece of paradise
ask me how!