HawaiiConstructionLaw.com

Hawaii Housing Update

Attended a luncheon seminar put on by Thinktech Hawaii.  The topic was on housing in Hawaii, and how to keep up with demand.  Thinktech assembled a panel of speakers consisting of major condomomiium and home construction developers, HCDA and PRP (carpenter union) representatives, and economist Paul Brewbaker, who set the stage for the talk with a quick snapshot of where Hawaii's housing market is today, where it is going, and what needs to be done to meet demands. 

According to Brewbaker, Hawaii's housing recovery is not around the corner.  It is here.  We are poised to experience housing demands that will very quickly outpace supply, leading to price increases that could end up in median home prices of a shocking $1,000,000 by 2018.  Oahu houses are already priced at the same price they were at the peak of the last housing boom.  On the cusp of Hawaii's last housing boom, Hawaii had about a year's worth of inventory on the market.  Now, we have two months.   Based upon current demand, the market could bear 20-30-40k in new housing.  Even if all of the currently planned condominium developments come to fruition, we are looking at about 5k in additional housing.   Without available housing our economy will suffer, because businesses cannot relocate or sustain themselves without available housing for talented employees. 

Against this backdrop of statistics, four major developers, the HCDA, and PRP, offered their perspective on Hawaii housing and what must be done to meet the ever growing need of Hawaii's residents.  The major consensus was that the only think holding up developers from building more homes was the difficulty of working in Hawaii.  Construction costs, labor pools, state and county regulations, and litigation, are all potential roadblocks, sset against existing and expected demand.  High-rise construction in Kakaako, within the urban core, encouraging walking communities, has long been a plan of the HCDA and it appears it may finally be coming to fruition. 

In the meantime, however, Kakaako residents are not excited about planned new construction within their neighborhood.  They met with lawmakers to express their concerns and see what can be done.  This conflict will likely grow as more projects come online. 

 

Are Hawaii's Bridges Safe?

The bridge collapse in Washington last week has left many Hawaii residents wondering whether Hawaii's bridges are safe.  This is certainly a thought that occurs to many stuck in traffic under an overpass.  How safe are Hawaii's bridges?

The bridge that collapsed in Washington is now believed to have collapsed due to a truck accident that struck a critical girder keeping the bridge aloft.  "We had a collision between a very heavy vehicle traveling at probably not a small amount of speed crashing into not just one but probably multiple girders, and it failed," Washington Governor Jay Inslee told an afternoon press conference in Mount Vernon.

It is possible to look up bridges on the national bridge inventory database, which is monitored by the federal highway administration.  According to the database, the Washington bridge was "functionally obsolete."  According to the same database:

"Functional obsolescence is a function of the geometrics of the bridge in relation to the geometrics required by current design standards.  While structural deficiencies are generally the result of deterioration of the conditions of the bridge components, functional obsolescence generally results from changing traffic demands on the structure.  Facilities, including bridges, are designed to conform to the design standards in place at the time they are designed.  Over time, improvements are made to the design requirements.  As an example, a bridge designed in the 1930s would have shoulder widths in conformance with the design standards of the 1930s, but current design standards are based on different criteria and require wider bridge shoulders to meet current safety standards.  The difference between the required, current-day shoulder width and the 1930s' designed shoulder width represents a deficiency.  The magnitude of these types of deficiencies determines whether a bridge is classified as functionally obsolete."

On the other hand, the I-35 bridge that collapsed in Maryland, was categorized as "structurally deficient":

"Structurally deficient bridges are not inherently unsafe. Bridges are considered structurally deficient if significant load-carrying elements are found to be in poor or worse condition due to deterioration and/or damage, or the adequacy of the waterway opening provided by the bridge is determined to be extremely insufficient to the point of causing intolerable traffic interruptions.  That a bridge is deficient does not imply that it is likely to collapse or that it is unsafe.  By conducting properly scheduled inspections, unsafe conditions may be identified; if the bridge is determined to be unsafe, the structure must be closed.  A deficient bridge, when left open to traffic, typically requires significant maintenance and repair to remain in service and eventual rehabilitation or replacement to address deficiencies.  To remain in service, structurally deficient bridges often have weight limits that restrict the gross weight of vehicles using the bridges to less than the maximum weight typically allowed by statute."

The Maryland bridge was classified as structurally deficient, and rated a "4" which includes advanced section loss, deterioration, or scour.  A bridge rated a "4" is subject to "possible" increased inspection.  A bridge is not subject to being shut down until it reaches a 2  which is when a bridge has "advanced deterioration of primary structural elements.  Fatigue cracks in steel or shear cracks in concrete may be present or scour may have removed substructure support.  Unless closely monitored, it may be necessary to close the bridge until corrective action is taken."

According to the NBI database, Hawaii has a total of 1133 bridges, 143 of which are structurally deficient, and 347 of which are functionally obsolete.  This database does not provide the actual rating of Hawaii's bridges, however, which is necessary to know the whole story.

According to Hawaii's DOT, its bridges are safe.  But, according to the NBI database, so was the Maryland bridge, and so was the Washington bridge.  According to the DOT, it will cost upwards of $1 billion dollars to update and repair Hawaii's obsolete and deficient bridges.

167,000 Square Foot Bloomingdales to be Constructed at Ala Moana

Macy's Inc. announced today that a new Bloomingdales will be built at Ala Moana.  Says the company:

“Ala Moana will provide an exceptional environment for the distinctive, upscale shopping experience for which Bloomingdale’s is world famous. It is a beautiful open-air shopping center that is a recognized destination not only for local customers from the Hawaiian islands, but also for visitors from the U.S. mainland, Asia and worldwide,” said Michael Gould, chairman and chief executive officer of Bloomingdale’s. “In Hawaii, we will offer global customers the unique Bloomingdale’s sense of contemporary style, as well as the attentive service that sets us apart.”

Construction will start in 2014. 

$750M Airport Renovation underway

An extensive improvement project at Honolulu International Airport has begun with groundbreaking for a new Aloha Air Cargo (AAC) facility.  

The AAC terminal marks the start of the $750m overhaul under a statewide Hawaii Airports Modernisation Program. Information about the Program is contained at this website:http://hawaiiairportsmodernization.com/3/what-were-doing-now, which describes its program as follows: 

"As part of the larger statewide Hawaii Airports Modernization Program, the new facilities and improvements at Honolulu International Airport consist of a multi-year effort to transform HNL into a distinctive, functional airport, worthy of a first class visitor destination and to meet the growing needs of residents and visitors alike."

Upgrades to the HIA are badly overdue and are very good news to both locals and visitors alike.