Talk Story
Pass the booby prize
along to Gary, IndianaTHE FORBES article that gave Hawaii the "booby prize for economic development" after the magazine ranked Honolulu 177th out of 200 Best Places to Do Business generated a lot of conversation last week.
The same week's business pages paint a somewhat different picture. Despite Forbes' dismal denouncement, there was plenty of good news.
For example, Honolulu's Thanh Quoc Lam got his picture in the paper standing next to President Bush after the Small Business Administration named him National Small Business Person of the Year. Lam founded Ba-Le Sandwiches and Bakery back in 1984, and it now brings in $5 million in annual revenue.
Then there's Hawaii HomeLoans, a new mortgage-banking company, which three former Bank of Hawaii executives launched last April 1. It's already racked up $20 million in loan applications.
Starwood Hotel and Resorts Worldwide purchased 18.5 acres at Princeville to build new timeshare condominiums that will sell for $40,000 to $50,000 a week. Unlike a controversial Ko Olina development project, Starwood wasn't asking for tax credits. Zoning for the new project was in place years ago, so construction should begin soon.
THE STATE authorized $1.3 billion for fiscal 2003 construction projects, exceeding the 2002 outlay by 47.5 percent. Included are $207.8 million for airports, $160 million for school remodeling and construction, $188.9 million for highway work and $44 million to fix up the state's public hospitals.
As Pacific Business News put it, "Local businesses can look forward to a multitude of multimillion-dollar contracts."
There was also an item about plans for a double-decker Wal-Mart store and Sam's Club on the Keeaumoku "super block" site, mauka of Ala Moana. The new stores could open as soon as late 2003 on the central Honolulu site that has been a vacant eyesore for a decade.
FROM THE political front came news that several local business people are willing to launch campaigns to give the Legislature their perspectives.
Patty Nagasako-Peterson, owner of Maui's Interiors and Co., Inc., is running for a new House seat representing Lahaina with the objective of improving the state's small-business climate. Mark Jernigan, owner of the Big Island green-waste processing company, Soil Plus, will campaign for another new seat, representing Kailua-Kona.
Brad Sakamoto merged his Techno Solutions Group with ITS Solutions, freeing him up to run against Nathan Sukuki for the Salt Lake-Moanalua Gardens House seat. Sakamoto brings with him expertise in state regulations and taxes affecting small businesses.
In the district next door, Lynn Finnegan, senior loan officer at Primary Residential Mortgage, will run to replace Bob McDermott (who is running for Patsy Mink's U.S. House seat) as representative for the Aiea-Salt Lake-Aliamanu district.
OF COURSE, not all the news is good. West Coast contract talks raise the threat of a dock strike that could postpone or slow down shipments to Hawaii. Since 98 percent of Hawaii goods arrive by sea, businesses will have to think about increasing inventories to ride out the storm.
For consumers, bottlers and, especially, mom-and-pop stores, the new bottle law will mean more work, higher prices and storage hassles.
Gubernatorial candidate Linda Lingle predicts the newly passed gasoline price cap will bring shortages, lines at the pumps and, eventually, higher prices, while it could force small station owners out of business, particularly on the neighbor islands.
Then there's the squabble over marketing and running the Hawaii Convention Center and, predictably, a Big Island industrial-park project has been held up by the Land Use Commission for environmental reasons.
No, the news is not all good, but does Hawaii deserve the booby prize?
John Flanagan is the Star-Bulletin's contributing editor.
He can be reached at: jflanagan@starbulletin.com.