Small Business News
July 2005 | Online Edition
Small Business Views
By Sam Slom, President and Executive Director of Small Business Hawaii
Celebrate our freedom this Independence Day, July 4. Many people have, and continue to, sacrifice for our right to freedom. Don’t take it for granted.
The 5 – 4 Supreme Court decision on June 23 allowing city government to condemn private residential and commercial property for private commercial purposes deemed (by government) a “higher and better economic use of the property,” is chilling and tragic. If property rights are human rights — and they are — then this is a body blow to your most fundamental of rights. Several years ago, Outrigger properties tried to get the City & County of Honolulu to condemn several small private Waikiki parcels to aid the firm in its mega bucks revitalization plan (now underway). This latest irrational reasoning gives big, special interest businesses additional clout over your property. It should be resisted with pitchforks and at the ballot box. Of course in Hawaii, we know about government taking of land for presumed better economic uses.
There is growing evidence that Hawaii’s economic recovery is very close to the surface. True, unemployment is down, retail and housing sales are up, but many businesses are still existing payroll to payroll and the prosperity is not going around equally. Many substantial businesses continue to shut down and bankruptcy once again has emerged as a driving factor here. Meanwhile, legislative interference, regulation and higher taxes and fees could put a further damper on meaningful business climate improvements.
The Governor’s signing of the increased Conveyance Tax (HB 1308) on June 23 is a major body blow to taxpayers. Hailed by activist environmentalists and big spending Democrats, the Governor officially broke her no new taxes pledge in order to “keep Hawaii green.” She argued it would help protect “legacy lands” (more government ownership) and affordable housing, but more than 1/3 of the additional $35 million goes directly into the General Fund. More disconcerting was the Governor’s discussion of taxing “the rich.” The surcharge kicks in July 1 on properties over $600,000; but the median home is now $610K on Oahu and more than $750K on Maui. This and other taxes will push prices.
Reportedly, if true, the Governor had recently purchased a residence in Hawaii Kai—presumably for more than $600,000—and is renting it out. She beat the tax hike.
Congratulations to member Frieda Takaki, president and CEO of Chart Rehabilitation of Hawaii, Inc., named “2005 Outstanding Board of Governors Member,” by the ESOP Association.
Good news for Hawaiian Air; they have emerged from bankruptcy. No free peanuts.
Hawaiian Telcom, successor to Verizon Hawaii, plans to hire 250 new employees.
More television scouts checking out Hawaii locations. ABC-TV’s “Lost” is still the Hawaii blockbuster and ESPN is in the process of selecting several University of Hawaii football games this Fall.
The final days of the 2005 Legislature were marked by rancor and a Senate power struggle. There may be a Special Session at the middle of this month to override Governor’s vetoes and to perhaps provide limited tax relief. The real reason is to position the majority party for next year’s elections.
State Rep. Galen Fox (R-Waikiki) paid a price for his vocal support and vote for tax and employer mandate increases; he was replaced as House Minority Leader on May 31 by Rep. Lynn Finnegan. Many people have told Governor Lingle that her support of the GET tax increase may cost her their support in the next (2006) election as well.
Small Business Hawaii continues the effort to rebuild a small business coalition that listens to businesses. “Business Standing for Business,” was kicked off at a special luncheon, Tuesday, June 28 at the Hale Koa Hotel. The Governor spoke at lunch and vetoed SB 1808, the bad work comp bill. The only improvement in workers’ compensation came from beneficial changes in administrative rules by Director Befitel, not legislation, but SB 1808 would have eliminated these improvements. Unions want it.
The Queen Street merchants continue to fight for their survival against the Administration, HCDA, and special interests.
Happy 30th birthday to Bob’s Big Boy!
A new self storage facility will break ground in Hawaii Kai on the shoreline this month. A protest group is opposing the project.
Kaiser Hawaii Kai Clinic had a blessing for their new facility in the Executive Centre.
HawaiiReporter’s Malia Zimmerman wowed 150 at the NYC Rotary June 21.
Join us at the July 28 SBH Sunrise at the Pineapple Room (Ala Moana Macy’s) to learn about exceptional customer service from Rainer Kumbroch of Roy’s.
Check www.smallbusinesshawaii.com.
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