The Lihue real estate market, the largest component of the Garden Island’s housing market, will hopefully see an infusion of capital following the loosening of restrictions on a South Shore project. In addition to providing more Lihue homes for sale, recent developments should also reinvigorate the Kauai commercial real estate market. According to an August 11, 2010 report from the Garden Island, “The Kaua‘i County Council in a five-to-two vote Wednesday approved significant revisions to affordable-housing conditions agreed upon five years ago by the developers of a major South Shore project. The original agreement — reached between the county, landowner A&B Properties and developer Kukui‘ula Development Hawai‘i — guaranteed 75 affordable homes, mostly for employees of the project. Qualified buyers would accrue one percent equity annually, plus improvements made on the property. Only after 90 years would owners attain full equity in the homes. The revised agreement allows qualified buyers to accrue four percent equity each year. After 25 years, owners will have 100 percent equity in the house. If the house is sold before the 25-year period ends, the next buyer will go through the same 25-year buy-back period. Another major change in the agreement allows developers to sell the affordable homes in the open market if no buyers qualify after a 14-month sales period.”
One of the Kauai victims of the economic recession is likely to be revived by a mainland company, according to an August 5, 2010 report from the Honolulu Star Advertiser. The article by Kristen Consillio stated that “The financially troubled Aston Kauai Beach at Makaiwa hotel was sold at the end of July to JMI Realty, a California real estate investment and development firm, according to sources familiar with the transaction. Hotel manager, Aston Hotels & Resorts, yesterday notified the state of the sale of the 311-room resort and possible layoff of 112 employees on Oct. 12 when Aston's contract is terminated, according to the filing with the state Department of Labor and Industrial Relations. However, most -- if not all -- of the work force will likely be retained with the new owner, which will conduct jobs fairs in the near future, according to the court-appointed receiver Joseph Toy, who has been overseeing hotel operations since June 2009 after the seller defaulted on a $43.2 million loan. The terms of the sale were not disclosed.”