HBuzz

Get the latest business buzz

DEALS ON WHEELS

In the market for a used car? Maybe something unassuming like a Dodge Omni or Ford pickup truck? Or why not go for an old Handivan or a police squad car?

The City & County of Honolulu auctioned off 90 vehicles and heavy-equipment machines in late February, everything from cars and trucks to mini buses and a forklift. According to the city, the automobiles were “used and worn to the point they are deemed uneconomical for the city to repair.”

photo: Kyle Galdeira

Among the most intriguing vehicles on the block were about 10 Ford buses, which the city has used for Handivans. The large people movers were valued at about $8,000 apiece, yet sold for anywhere from $200 to $1,000.

The auction, conducted by Insurance Auto Auctions at Campbell Industrial Park, saw buyers from all walks of life, some hoping to purchase the vehicles for personal use, and others for business purposes. A pickup truck drove to each vehicle as it was put to bid. An auctioneer perched in a makeshift booth in the truck bed let fly his spiel as bidders, including those making proposals live over the Internet, raised their assigned identification numbers.

Perhaps because the equipment was sold “as is” and it was a crap shoot as to the exact extent of the damage or wear to the vehicles, the majority of them sold for well under $1,000, with a handful going for $50—including an Omni, which sold while sitting on two flat tires.

There is no regular schedule for these auctions; they are held when the city has a large batch of vehicles that needs to be disposed of. However, Insurance Auto Auctions sells private vehicles, which have been either damaged in accidents or repossessed by banks or credit unions, at the same location every Thursday beginning at 11 a.m.

- Kyle Galdeira

---

NON-PROFIT MARGINS
The number of non-profit organizations in Hawaii filing a federal tax return jumped 31 percent from nearly 1,600 in 2000 to almost 2,100 in 2005, according to Hawaii Community Foundation, who recently performed an in-depth study of changes and challenges in that substantial sector. Here is HCF’s Island breakdown of non profits in 2005. Visit hawaiicommunityfoundation.org, to learn more.
	Number of Non profits	Ratio per 1,000 people	Ratio per 100 in poverty
Honolulu County	1,419	1.62	1.72
Hawaii County	281	1.71	1.30
Maui County	268	1.93	2.97
Kauai County	108	1.74	1.23
State Total	2,076	1.68	1.71

---

BACK IN BLACK

For the first time since 2001, the University of Hawaii athletic program had a winning year — in budgetary terms.

UH raked in $7,483 worth of profits through its sports teams last calendar year. While that might not seem like much for a program that created more than $21 million in revenue, it is a promising sign that the department is headed in the right direction under athletics director Herman Frazier.

According to Frazier, the increase in the budget and resulting profits can be attributed in part to Hawaii’s television and pay-per-view contract with K5 television, and implementation of premium seating charges in the teams’ stadiums and arenas. Here is a quick glance at how some of the university’s teams fared in terms of net profit:

* BIGGEST WINS:
Wahine Volleyball:	$ 540,111
Football:	$ 434,523
Men’s Basketball:	$ 187,074
Men’s Volleyball:	$ 29,144
* BIGGEST LOSS:
Wahine Basketball:	-$ 739,535

- Kyle Galdeira

---

AIRPORT UPGRADE

GORDON BIERSCH, WELCOME TO THE HONOLULU INTERNATIONAL AIRPORT

And welcome Wolfgang Puck Grab and Go, ColdStone Creamery, and Dewar’s Clubhouse. What, there’s more? Come on in.

Thanks to a lease extension with HMSHost Corp., the airport, over the next three years, will be adding a series of new restaurants and food establishments to the less-than-overwhelming selection currently housed there. HMSHost, in fact, plans to invest a minimum $8 million over the life of the lease, which runs till 2014.

Well, aloooha.

photos: istock

As part of the makeover, a Starbucks has already been added in the pre-security concourse. But that is just an aperitif to the changes. Inside, in addition to the others mentioned above, there will be Quiznos Subs, Mexican restaurant Tequileria, and two Island Brews, one in the interisland terminal. There is also Jamba Juice and Sbarro’s.

HMHost says Stinger Ray’s Grill, Burger King, Chow Mein Express, Starbucks and Garden View Food Court will all remain at the airport, though they may be “refreshed or reimaged.”

This is also good news on the tax revenue side of things. The state will reportedly receive $4.8 million each year or, if it is greater, a percentage of food and beverages sales. Industry experts say that with tighter security limits on airports – in particular non-ticketed passengers not being allowed inside – concessions operators have been upgrading around the country to make back the lost dollars.

With the direction in-flight meals have taken on most domestic flights, we can say we are very thankful for the airport’s latest development.

- Scott Radway

---

Hawaii Business defines often-spoken words, new and old, to help you make sense of what's being said.

SLUFFIN’: If you’re accused of procrastinating, showing up late, taking too long on a project, or just never coming through, chances are you need to stop sluffin’. Don’t be surprised to hear Gen X and Gen Y employing that verb with your name next to it. Sluffin’ means slacking off. Manager: Where’s Bob, this meeting was supposed to start ten minutes ago. Staffer: He’s been sluffin’ lately, let’s start without him. -Kyle Galdeira Email confusing words to hbeditorial@pacificbasin.net

---

REAL ESTATE: KAUAI’S “RESORT TOWN” GETS A FACELIFT

With more than 2,000 residential units in the early development stages in Poipu and Koloa towns, and another 1,500 on the books, Kauai’s south shore is undergoing a sizeable housing boom. Popping up alongside the new units are more hotel rooms, shopping centers, spa and fitness centers, and, of course, timeshare units. The area’s build out is its biggest in nearly two decades, and, despite a national and statewide slowdown in real estate sales, experts predict sales will do just fine.

Kukuiula Development, Poipu, Kauai. rendering courtesy of Kukuiula

“There really haven’t been any new condominium projects or residential subdivisions here for almost 20 years, so there’s a lot of pent-up demand for product,” says Frank Supon, a Poipu-based Realtor with Pacific Ocean Properties. “The interesting point will be to see how much depth there is to the demand for product.”

So far, that demand hasn’t been locally based. Supon says most of the new developments’ sales have been to offshore buyers. “I think because 25 years ago, several resort projects were built down in Poipu, I think everybody understands that this is really a resort area for the island. So for the most part, Poipu is really a second-home or retirement- or vacation-home community,” he says. We’re pretty sure some local residents would beg to differ. Either way, with prices in the $600,000 to $3 million range, many homes in the new subdivisions, like Pili Mai and Kukui’ula, will most likely be out of reach for the average Island resident.

- Jacy L. Youn

Do you like what you read? Subscribe to Hawaii Business Magazine »