Aloha Petroleum has announced that they have acquired the Hawaii assets of MFM Inc. which includes two Shell gas stations, two Subway restaurants and four convenience stores. Aloha Petroleum owns and operates about 100 retail gas stations in Hawaii under the Shell, Aloha and Mahalo brands as well as 46 Aloha Island Mart convenience stores.

The sale will close later this year for a reported $240 million deal that closed in December 2014. The locations that they will acquire here on Kauai are the Shell gas stations in Kapaa & Kilauea, Subway stores in Kilauea and Eleele, a Shell Food Mart in Kapaa and Menehune Food Mart stores in Kilauea, Kekaha and Kapahi.

According to PBN, “The acquisition is a great opportunity to grow our retail store operations on the island of Kauai, and we look forward to continuing to service and cater to the needs of the local residents, “ Richard Parry, president and CEO of Aloha Petroleum, Ltd., said in a statement.

Airline travel to Hawaii has evolved from the glamorous days of the 1950s, when flying was a vacation in itself and reserved for the wealthy. Travelers looking to visit the Hawaiian islands, now have many flight options at various budgets with airlines such as Alaska Airlines, Hawaiian Airlines, United and American Airlines flying regularly to Hawaii.

Most recently, Virgin Airlines, AirAsia X and Jin Air have announced that they will join the list of airlines offering flights between Hawaii, the West Coast and Asia by the end of the year. 

The service by AirAsia X, the low-cost arm of AirAsia, will go from Kuala Lumpur, Malaysia, to Honolulu starting in November. This will mark the first direct service from Malaysia to Hawaii. Jin Air, a subsidiary of Korean Air, will begin flights between Honolulu and Seoul, South Korea starting in December 2015. These low-cost airlines are allowing visitors from Asia to travel to Hawaii who would not otherwise be able to. 

Virgin Airlines, an airline renowned for its great customer service and innovation offer a bit of style on their new flights to Hawaii. They will be offering flights from San Francisco (SFO) to Honolulu (HNL) in November and San Francisco to Kahuilui, Maui (OGG) in December. Just another good reason to fly out of the swanky Terminal 2 at SFO!

Here on Kauai, we are constantly working towards becoming a greener island as far as renewable energy is concerned. Solar is an exciting opportunity for cleaner energy on our beautiful Garden Isle. KIUC's "Time-of-Use Solar Pilot Program" will offer discounted rates to a group of residential customers to encourage them to shift their energy use to the daylight hours to take advantage of the utility's robust solar resources.

The issue with solar energy is that often the energy that is generated is wasted as it's not used during its most plentiful times. The goals of KIUC's new program are to broaden community participation in renewable energy programs and reduce the potential for solar energy to be curtailed, ie: not put to use when it's most plentiful.

With more than 50 megawatts of electricity generated during the day by utility-scale and rooftop photovoltaic systems on Kauai, a key measure of the program’s success is the ability of customers to move a significant amount of their energy use from night to day to take advantage of the lower rates, a practice known as “shifting load.” This will be a 1 year program with 300 residential customers who have smart meters.

With many buyers purchasing second homes on Kauai, a 1031 exchange is a great way to save taxes when purchasing a vacation rental property. Here are a few of the most frequently asked questions!

What is a 1031 Exchange?

A 1031 Exchange refers to a real estate transaction realized under the rules of Section 1031 of the Internal Revenue Code in order to defer relevant taxes until a future date. (Section 1031 provides that no gain or loss shall be recognized for tax purposes on the exchange of property held for productive use in a trade or business, or for investment.) A typical transaction involves a property owner trading a property for another "like kind" replacement property. The IRS sees the transaction as having reinvested the sale proceeds into another property thus no economic gain has been realized that would generates the funds to pay the taxes.

What are the benefits of a 1031 Exchange?
A 1031 exchange enables the property owner to defer or completely eliminate potential taxes associated with the sale of real property. By deferring the taxes the owner has more money available, on an interest free basis, to invest and thus can afford a more expensive property then otherwise would be affordable.

What does "like Kind" mean in a 1031 Exchange?

A tax deferred exchange that allows for the disposal of an asset and the acquisition of another similar asset without generating a tax liability from the sale of the first asset. You are replacing one real estate investment property for another property. 

How does this actually work?

Section 1031 allows for the sale of a property with the proceeds going to a "qualified intermediary" who then holds the funds until the replacement property if ready to be purchased. This is what makes a 1031 Exchange official. You must let your selling agent know that you intend on selling this as a 1031 exchange.

What are the deadlines/timelines involved?

 From closing on the sale of the relinquished (sale) property, an Exchanger must:

• Properly identify potential replacement properties within 45 calendar days (the"Identification Period")  

• Close on the replacement properties within 180 calendar days of the relinquished property sale - OR - the due date (including extensions) for the Exchanger's tax return for the taxable year in which the reliquished property was tranferred, whichever is earlier (the "Exchange Period")

In short, 45 days to identify and 6 months after to close. 

What is a "Qualified Intermediary"?
A Qualified Intermediary (also known as an Accomodator) is a person or entity that hold the funds received from the sale of the relinquished property in escow, until the replacement property is purchased; thereby ensuring that the rules around Section 1031 are abided by.

What types of taxes can I defer?
A 1031 exchange allows for the deferment of Federal, and in most cases state, capital gain and depreciation recapture taxes.

Do I have to spend all my earnings on the next property?
No. You tell the closing officer on the property you are selling to send the facilitator how much you want to 1031 and the rest you claim as capital gains.

What does not qualify for a 1031 Exchange?
Any of the following do not qualify: Stocks, bonds, loans, partnership interests, personal residences, and certificates of trust.

It's no secret that celebrities love to call Kauai home. The pristine surroundings, privacy, low key lifestyle is a major draw for those looking to invest in a property. The latest celebrity to purchase on Kauai is Lukasz Gottwald (known in the industry as 'Dr Luke'), an American songwriter and record producer with multiple Grammys who was once Saturday Night Live's house band's lead guitarist and has worked with artists such as Rihanna, Britney Spears, Miley Cyrus and Bon Jovi.

He formed 4160 Wailapa Road LLC for the purchase of three homes that sit on nearly 11 acres in Kilauea on Kauai’s North Shore. The homes consist of a 5,245 sq, ft 3 bedroom & 3 bath home, a 1008 sq ft, 2 bedroom & 1 bathroom home and a 507 sq ft, 1 bedroom & 1 bath home. 

After a week of inactivity due to heavy rainfall, state regulators have resumed work at the Hanalei River restoration project. Wet conditions on the site located on state land above the Hanalei Wildlife Refuge, halted restoration work from Friday, Sept. 11 to Thursday, Sept. 17.

The Hanalei River Project began in 1995, when the Hanalei River bank broke down. Since then than 30,000 tons of eroded soil and sediment have fallen into Hanalei Bay since it jumped its banks. A riverbank stabilization project has been underway by the Department of Land and Natural Resources with the goal of returning the river back to its original form by restoring the 100-foot section of eroded stream bank located on state land above the Hanalei Wildlife Refuge.

Over the years, the breach has caused numerous problems in the area, according to DLNR, including environmental pollution, loss of property, stream and reef degradation, and loss of water for nearby taro fields and the refuge. The riverbank stabilization project has a goal of returning the river back to its original form by restoring the 100-foot section of eroded stream bank located on state land above the refuge. The project will also ensure a consistent flow of water in the Hanalei River, which is the primary source used for taro cultivation and wetland habitat within the refuge, according to Carty Chang, administrator of DLNR’s Engineering Division.

There are approximately four weeks of work remaining, pending good weather, DLNR officials said. This does not include the maintenance period for the landscaping.

Discovery Land Co, which was in charge of managing the $500 million redevelopment of 1,103 acres of the Princeville at Hanalei resort on Kauai’s North Shore, as well as the Prince Golf Course earlier this year, will no longer be in charge of the project.

Last year, the land was acquired by a partnership between Honolulu-based The Resort Group and China-based Reignwood International for $343 million. 

The resort’s plan includes 350 residential units, a possible boutique hotel, a newly-upgraded Prince Golf Course, the focal point of the project, as well as a spa, wellness center, polo fields, equestrian course, an airport, beach club, hiking trails, mountain biking and ocean adventure activities.

Discovery Land Co stated to PBN, "We remain committed to the sustainable, environmentally-focused development of this uniquely beautiful location, and we expect to maintain nearly all of the local employment positions associated with the project.”

If you've been wondering when the new Safeway in Lihue will open, the time has come! The new Safeway store in Hokulei Village in Lihue is scheduled to open at 6 a.m. on Friday. It will be a fun day to get your grocery shopping done, if you don't mind the crowds! To kick off the new store opening, Safeway will be a offering a variety of discounts, giveaways & of course lots of ono grinds! The 56,000-square-foot Safeway, the second on Kauai, will be the anchor tenant of the 14.25-acre complex that also recently saw a Petco pet supply store and a Jack in the Box restaurant open.

The Hokulei Village Safeway will be open 24 hours a day and will include a Starbucks, a pharmacy, and a Bank of Hawaii branch. Bank of Hawaii will celebrate its grand opening celebration starting at 8 a.m. Friday with food, refreshments, and giveaways while supplies last.

Joining the Safeway opening celebration, Hokulei Village and Terramar (the developer on the project), also have a slate of events from 2 to 6 p.m. Friday, including music, food and prizes. Enjoy some good deals on your groceries for Aloha Friday this week!

As reported by The Pacific Business News, The Kauai Island Utility Cooperative has struck a deal with California-based SolarCity to develop what would become one of the first utility-scale systems in the United States to provide the utility with electricity whenever it needs it.

On Wednesday, KIUC said that it has signed a power purchase agreement with SolarCity for the solar and battery storage system, which is designed to supply power to the grid in the evening, when demand is highest. This system will provide dispatchable solar energy through a 52-megawatt hour battery system that allows the electricity to be available when it's needed, even after sundown. This will reduce the amount currently used with diesel generators. SolarCity was the contractor on KIUC’s first 12-megawatt solar array in Koloa on the island’s South Shore, which went into commercial operation in Sept. 2014 and supplies about 5 percent of Kauai’s electricity.

By using the solar energy stored in the battery instead of diesel generators, KIUC said it will reduce its use of imported oil and also cut its greenhouse gas emissions. Under the terms of the 20-year contract, KIUC will pay SolarCity 14.5 cents per kilowatt-hour, a lower rate than the current cost of conventional generation, and only slightly more than the cost of energy from KIUC’s two existing 12-megawatt solar farms, whose output is available only during the day.

“KIUC has been investigating energy storage options for more than two years and price has always been the biggest challenge,” said David Bissell, president and CEO of KIUC, in a statement to PBN. “This is a breakthrough project on technology and on price that enables us to move solar energy to the peak demand hours in the evening and reduce the amount of fossil fuel we’re using.”

Pending state and county approvals, the array and battery storage facility will be built on 50 acres of land owned by Grove Farm Co. Inc. adjacent to KIUC’s Kapaia power station off Maalo Road, just north of Lihue. To qualify for federal tax credits that will substantially reduce the cost of the project, construction work must begin by April 2016 so the project can be in commercial operation by Dec. 31, 2016.